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         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002        


                                     76 910                                 

                                       2002                                  

                          107 th Congress  1st Session                      

                            HOUSE OF REPRESENTATIVES                        

                                      Report                                 

                                      107 333                                 

                                                                             

                                                                         




                      NATIONAL DEFENSE AUTHORIZATION                     

                         ACT FOR FISCAL YEAR 2002                        



                                                                           


                            CONFERENCE REPORT                            


                               to accompany                              


                                 S. 1438                                 


[Graphic Image Not Available]

                December  12, 2001.--Ordered to be printed               


                            C O N T E N T S                             
         JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE       387
            Summary Statement of Conference Action                        387
            Summary Table of Authorizations                               387
            Congressional Defense Committees                              394
            Committee Reports                                             394
         DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS                 394
          Title I--Procurement                                            394

                             Procurement overview                          

                                          394                                   

                        Management reform initiatives                      

                                          396                                   

                     Aircraft Procurement, Army--Overview                  

                                          396                                   

                     Missile Procurement, Army--Overview                   

                                          400                                   

      Procurement of Weapons and Tracked Combat Vehicles, Army--Overview   

                                          404                                   

                  Procurement of Ammunition, Army--Overview                

                                          409                                   

                      Other Procurement, Army--Overview                    

                                          415                                   

          Chemical Agents and Munitions Destruction, Army--Overview        

                                          432                                   

                     Aircraft Procurement, Navy--Overview                  

                                          434                                   

                     Weapons Procurement, Navy--Overview                   

                                          440                                   

          Procurement of Ammunition, Navy and Marine Corps--Overview       

                                          445                                   

                 Shipbuilding and Conversion, Navy--Overview               

                                          449                                   

                      Other Procurement, Navy--Overview                    

                                          452                                   

                     Procurement, Marine Corps--Overview                   

                                          466                                   

                  Aircraft Procurement, Air Force--Overview                

                                          473                                   

               High altitude endurance unmanned aerial vehicle             

                                          482                                   

                   Missile Procurement, Air Force--Overview                

                                          482                                   

                Procurement of Ammunition, Air Force--Overview             

                                          486                                   

                    Other Procurement, Air Force--Overview                 

                                          489                                   

                     Procurement, Defense-Wide--Overview                   

                                          498                                   

         Chemical Agents and Munitions Destruction, Defense--Overview      

                                          505                                   

                            Items of Special Interest                   

                                          507                                   

          Acquisition programs at the National Reconnaissance Office       

                                          507                                   

             Acquisition programs at the National Security Agency          

                                          508                                   

       Airborne signals intelligence recapitalization and modernization    

                                          509                                   

                  Arleigh Burke-class destroyer procurement                

                                          510                                   

                    Attack submarine force structure study                 

                                          510                                   

                          Legislative Provisions Adopted                

                                          511                                   

                 Subtitle A--Authorization of Appropriations               

                                          511                                   

               Authorization of appropriations (secs. 101 107)             

                                          511                                   

        Chemical agents and munitions destruction, Defense (sec. 106)      

                                          511                                   

                          Subtitle B--Army Programs                        

                                          511                                   

     Repeal of limitations on bunker defeat munitions program (sec. 111)   

                                          511                                   

      Extension of pilot program on sales of manufactured articles and     
   services of certain Army industrial facilities without regard to        
   availability from domestic sources (sec. 112)                           
        512                                                                     

      Limitations on acquisition of interim armored vehicles and deployment
   of interim brigade combat teams (sec. 113)                              
        512                                                                     

   Subtitle C--Navy Programs                                               

        513                                                                     

   Virginia class submarine program (sec. 121)                             

        513                                                                     

      Multiyear procurement authority for F/A 18E/F aircraft engines (sec. 
   122)                                                                    
        513                                                                     

   V 22 Osprey aircraft program (sec. 123)                                 

        514                                                                     

      Report on status of V 22 Osprey aircraft before resumption of flight 
   testing (sec. 124)                                                      
        514                                                                     

   Subtitle D--Air Force Programs                                          

        514                                                                     

   Multiyear procurement authority for C 17 aircraft (sec. 131)            

        514                                                                     

          Legislative Provisions Not Adopted                            

        515                                                                     

   Additional amount for Shipbuilding and Conversion, Navy                 

        515                                                                     

      Destruction of existing stockpile of lethal chemical agents and      
   munitions                                                               
        515                                                                     

   Extension of multiyear contract for Family of Medium Tactical Vehicles  

        515                                                                     

   Procurement of additional M291 skin decontamination kits                

        515                                                                     

    Title II--Research, Development, Test, and Evaluation                  

        516                                                                     

   Research, Development, Test, and Evaluation overview                    

        516                                                                     

   Management reform initiatives                                           

        518                                                                     

   Research, Development, Test and Evaluation Army--Overview               

        518                                                                     

   Army missile defense technology                                         

        535                                                                     

   Comanche                                                                

        535                                                                     

   Rapid acquisition program for transformation                            

        536                                                                     

   Tactical high energy laser                                              

        536                                                                     

   Thermionics technology                                                  

        536                                                                     

   Research, Development, Test and Evaluation, Navy--Overview              

        536                                                                     

   Follow-on support jamming aircraft                                      

        557                                                                     

   Future destroyer program                                                

        557                                                                     

   Littoral support craft-experimental                                     

        557                                                                     

   Research, Development, Test and Evaluation, Air Force--Overview         

        558                                                                     

   Joint Strike Fighter                                                    

        574                                                                     

   Low cost launch technologies                                            

        574                                                                     

   Special aerospace materials and materials manufacturing processes       

        575                                                                     

   Research, Development, Test and Evaluation, Defense-Wide--Overview      

        575                                                                     


   Arrow missile defense system                                            

        592                                                                     

   Ballistic missile defense advanced technology                           

        592                                                                     

   Common database asset for biological security                           

        592                                                                     

          Items of Special Interest                                     

        593                                                                     

   Navy research and development budget exhibits                           

        593                                                                     

          Legislative Provisions Adopted                                

        593                                                                     

   Subtitle A--Authorization of Appropriations                             

        593                                                                     

   Authorization of appropriations (secs. 201 202)                         

        593                                                                     

      Supplemental authorization of appropriations for fiscal year 2001 for
   Research, Development, Test, and Evaluation Defense-Wide (sec. 203)     
        593                                                                     

   Subtitle B--Program Requirements, Restrictions, and Limitations         

        594                                                                     

   Naval surface fire support assessment (sec. 211)                        

        594                                                                     

      Collaborative program for development of advanced radar systems (sec.
   212)                                                                    
        594                                                                     

      Repeal of limitations on total cost of engineering and manufacturing 
   development for F 22 aircraft program (sec. 213)                        
        595                                                                     

   Joint biological defense program (sec. 214)                             

        595                                                                     

      Cooperative Department of Defense-Department of Veterans Affairs     
   Medical Research Program (sec. 215)                                     
        595                                                                     

   C 5 aircraft reliability enhancement and reengining program (sec. 216)  

        595                                                                     

   Subtitle C--Ballistic Missile Defense                                   

        596                                                                     

      Transfer of responsibility for procurement for missile defense       
   programs from Ballistic Missile Defense Organization to military        
   departments (sec. 231)                                                  
        596                                                                     

   Program elements for Ballistic Missile Defense Organization (sec. 232)  

        596                                                                     

   Ballistic missile defense budget justification                          

        597                                                                     

      Support of ballistic missile defense activities of the Department of 
   Defense by the National Defense Laboratories of the Department of Energy
   (sec. 233)                                                              
        598                                                                     

   Missile defense testing initiative (sec. 234)                           

        599                                                                     

      Construction of test bed facilities for missile defense system (sec. 
   235)                                                                    
        599                                                                     

   Subtitle D--Air Force Science and Technology for the 21st Century       

        599                                                                     

   Air Force science and technology for the 21st Century Act (sec. 251 252)

        599                                                                     

      Study and report on effectiveness of Air Force science and technology
   program changes (sec. 253)                                              
        600                                                                     

   Subtitle E--Other Matters                                               

        600                                                                     

      Establishment of unmanned aerial vehicle joint operational test bed  
   system (sec. 261)                                                       
        600                                                                     

      Demonstration project to increase small business and university      
   participation in Office of Naval Research efforts to extend benefits of 
   science and technology research to fleet (sec. 262)                     
        600                                                                     

      Communication of safety concerns from operational test and evaluation
   officials to program managers (sec. 263)                                
        601                                                                     

          Legislative Provisions Not Adopted                            

        601                                                                     

   Big Crow                                                                

        601                                                                     

   C 5 aircraft modernization                                              

        601                                                                     

   Enhanced scramjet mixing                                                

        601                                                                     

   Management responsibility for Navy mine countermeasures programs        

        601                                                                     

   Review of alternatives to the V 22 Osprey aircraft                      

        602                                                                     

      Special operations forces command, control, communications,          
   computers, and intelligence systems threat warning and situational      
   awareness program                                                       
        602                                                                     

   Technology ``Challenge'' program                                        

        602                                                                     

   Technology transition initiative                                        

        602                                                                     

    Title III--Operation and Maintenance                                   

        602                                                                     

   Overview                                                                

        602                                                                     

   Management reform initiatives                                           

        633                                                                     

   Combating terrorism initiative                                          

        633                                                                     

   Commercial imagery to support military requirements                     

        634                                                                     

          Legislative Provisions Adopted                                

        634                                                                     

   Subtitle A--Authorization of Appropriations                             

        634                                                                     

   Authorization of appropriations (secs. 301 302)                         

        634                                                                     

   Armed Forces Retirement Home (sec. 303)                                 

        634                                                                     

   Transfer from National Defense Stockpile Transaction Fund (sec. 304)    

        635                                                                     

      Funds for renovation of Department of Veterans Affairs facilities    
   adjacent to Naval Training Center Great Lakes, Illinois (sec. 305)      
        635                                                                     

      Defense Language Institute Foreign Language Center expanded Arabic   
   language program (sec. 306)                                             
        635                                                                     

   Subtitle B--Environmental Provisions                                    

        635                                                                     

      Inventory of unexploded ordnance, discarded military munitions, and  
   munitions constituents at defense sites (other than operational ranges) 
   (sec. 311)                                                              
        635                                                                     

      Establishment of new program element for remediation of unexploded   
   ordnance, discarded military munitions, and munitions constituents (sec.
   312)                                                                    
        636                                                                     

      Assessment of environmental remediation of unexploded ordnance,      
   discarded military munitions, and munitions constituents (sec. 313)     
        636                                                                     


      Conformity of surety authority under environmental restoration       
   program with surety authority under CERCLA (sec. 314)                   
        636                                                                     

      Elimination of annual report on contractor reimbursement for costs of
   environmental response actions (sec. 315)                               
        636                                                                     

      Pilot program for sale of air pollution emission reduction incentives
   (sec. 316)                                                              
        636                                                                     

   Department of Defense energy efficiency program (sec. 317)              

        637                                                                     

      Procurement of alternative fueled and hybrid light duty trucks (sec. 
   318)                                                                    
        637                                                                     

      Reimbursement of Environmental Protection Agency for certain response
   costs in connection with Hooper Sands site, South Berwick, Maine (sec.  
   319)                                                                    
        637                                                                     

   River mitigation  studies (sec. 320)                                    

        637                                                                     

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities     

        638                                                                     

   Commissary benefits for new members of the Ready Reserve (sec. 331)     

        638                                                                     

      Reimbursement for use of commissary facilities by military           
   departments for purposes other than commissary sales (sec. 332)         
        638                                                                     

      Public releases of commercially valuable information commissary      
   stores (sec. 333)                                                       
        638                                                                     

      Rebate agreements with procedures of foods provided under special    
   supplemental food program (sec. 334)                                    
        638                                                                     

      Civil recovery for nonappropriated fund instrumentality costs related
   to shoplifting (sec. 335)                                               
        639                                                                     

   Subtitle D--Workforce and Depot Issues                                  

        639                                                                     

      Revision of authority to waive limitation on performance of          
   depot-level maintenance (sec. 341)                                      
        639                                                                     

      Exclusion of certain expenditures from limitation on private sector  
   performance of depot-level maintenance (sec. 342)                       
        639                                                                     

      Protections for purchasers of articles and services manufactured or  
   performed by working-capital funded industrial facilities of the        
   Department of Defense (sec. 343)                                        
        639                                                                     

      Revision of deadline for annual report on commercial and industrial  
   activities (sec. 344)                                                   
        640                                                                     

   Pilot manpower reporting system in Department of the Army (sec. 345)    

        640                                                                     

      Development of Army Workload and Performance System and Wholesale    
   Logistics Modernization Program (sec. 346)                              
        640                                                                     

   Subtitle E--Defense Dependents Education                                

        641                                                                     

      Assistance to local educational agencies that benefit dependents of  
   members of the armed forces and Department of Defense civilian employees
   (sec. 351)                                                              
        641                                                                     

   Impact aid for children with severe disabilities (sec. 352)             

        641                                                                     

      Availability of auxiliary services of defense dependents' education  
   system for dependents who are home school students (sec. 353)           
        641                                                                     

      Comptroller General study of adequacy of compensation provided for   
   teachers in the Department of Defense overseas dependents' schools (sec.
   354)                                                                    
        641                                                                     

   Subtitle F--Other Matters                                               

        642                                                                     

      Availability of excess defense personal property to support          
   Department of Veterans Affairs initiative to assist homeless veterans   
   (sec. 361)                                                              
        642                                                                     

      Incremental implementation of Navy-Marine Corps Intranet contract    
   (sec. 362)                                                              
        642                                                                     

      Comptroller General Study and Report of National Guard Distributive  
   Training Technology Project (sec. 363)                                  
        643                                                                     

   Reauthorization of warranty claims recovery pilot program (sec. 364)    

        644                                                                     

      Evaluation of current demonstration programs to improve quality of   
   personal property shipments of members (sec. 365)                       
        644                                                                     

      Sense of Congress regarding security to be provided at 2002 Winter   
   Olympic Games (sec. 366)                                                
        644                                                                     

   Legislative Provisions Not Adopted                                      

        645                                                                     

      Applicability of core logistics capability requirements to nuclear   
   aircraft carriers                                                       
        645                                                                     

   Authorization of additional funds                                       

        645                                                                     

   Consequence management training                                         

        645                                                                     

   Critical infrastructure protection initiative of the Navy               

        645                                                                     

   Environmental restoration, Formerly Used Defense Sites                  

        645                                                                     

      Expansion of entities eligible for loan, gift, and exchange of       
   documents, historical artifacts, and obsolete combat materiel           
        646                                                                     

   Funding for land forces information operations sustainment              

        646                                                                     

      Improvements in instrumentation and targets at Army live-fire        
   training ranges                                                         
        646                                                                     

   Limitation on workforce reviews                                         

        646                                                                     

    Title IV--Military Personnel Authorizations                            

        647                                                                     

          Legislative Provisions Adopted                                

        647                                                                     

   Subtitle A--Active Forces                                               

        647                                                                     

   End strengths for active forces (sec. 401)                              

        647                                                                     

   Revision in permanent end strength minimum levels  (sec. 402)           

        647                                                                     

      Increase in senior enlisted active duty grade limit for Navy, Marine 
   Corps, and Air Force (sec. 403)                                         
        647                                                                     

   Subtitle B--Reserve Forces                                              

        647                                                                     

   End strengths for Selected Reserve (sec. 411)                           

        647                                                                     

      End strengths for reserves on active duty in support of the reserves 
   (sec. 412)                                                              
        648                                                                     

   End strengths for military technicians (dual status sec. 413)           

        648                                                                     

   Fiscal year 2002 limitation on non-dual status technicians (sec. 414)   

        649                                                                     

      Limitations on numbers of reserve personnel serving on active duty or
   full-time National Guard duty in certain grades for administration of   
   reserve components (sec. 415)                                           
        649                                                                     

   Subtitle C--Other Matters Relating to Personnel Strengths               

        649                                                                     

   Administration of end strengths (sec. 421)                              

        649                                                                     

      Active duty end strength exemption for National Guard and reserve    
   personnel performing funeral honors functions (sec. 422)                
        649                                                                     

   Subtitle D--Authorization of Appropriations                             

        650                                                                     

   Authorization of appropriations for military personnel (sec. 431)       

        650                                                                     

          Legislative Provisions Not Adopted                            

        650                                                                     

      Increase in authorized strengths for Air Force officers on active    
   duty in the grade of major                                              
        650                                                                     

      Strength and grade limitation accounting for reserve component       
   members on active duty in support of a contingency operation            
        650                                                                     

    Title V--Military Personnel Policy                                     

        651                                                                     

          Legislative Provisions Adopted                                

        651                                                                     

   Subtitle A--Officer Personnel Policy                                    

        651                                                                     

      Enhanced flexibility for management of senior general and flag       
   officer positions (sec. 501)                                            
        651                                                                     

      Certifications of satisfactory performance for retirement of officers
   in grades above major general and rear admiral (sec. 502)               
        651                                                                     

   Review of actions of selection boards (sec. 503)                        

        652                                                                     

      Temporary reduction of time-in-grade requirement for eligibility for 
   promotion for certain active-duty list officers in grades of first      
   lieutenant and lieutenant (junior grade) (sec. 504)                     
        652                                                                     

      Authority for promotion without selection board consideration for all
   fully qualified officers in grade of first lieutenant or lieutenant     
   (junior grade) in the Navy (sec. 505)                                   
        652                                                                     

      Authority to adjust date of rank of certain promotions delayed by    
   reason of unusual circumstances (sec. 506)                              
        653                                                                     

      Authority for limited extension of medical deferment of mandatory    
   retirement or separation (sec. 507)                                     
        653                                                                     

      Authority for limited extension on active duty of members subject to 
   mandatory retirement or separation (sec. 508)                           
        653                                                                     

      Exemption from certain administrative limitations for retired        
   officers ordered to active duty as defense or service attache AE1s (sec.
   509)                                                                    
        653                                                                     

   Officer in charge of United States Navy Band (sec. 510)                 

        654                                                                     

   Subtitle B--Reserve Component Personnel Policy                          

        654                                                                     

      Placement on active-duty list of certain reserve officers on active  
   duty for a period of three years or less (sec. 511)                     
        654                                                                     

      Exception to baccalaureate degree requirement for appointment of     
   reserve officers to grades above first lieutenant (sec. 512)            
        654                                                                     

      Improved disability benefits for certain reserve component members   
   (sec. 513)                                                              
        654                                                                     

      Time-in-grade requirement for reserve component officers retired with
   a nonservice-connected disability (sec. 514)                            
        655                                                                     

      Equal treatment of reserves and full-time active duty members for    
   purposes of managing personnel deployments (sec. 515)                   
        655                                                                     

      Modification of physical examination requirements for members of the 
   Individual Ready Reserve (sec. 516)                                     
        655                                                                     

      Retirement of reserve members without requirement for formal         
   application or request (sec. 517)                                       
        655                                                                     

   Space-required travel by reserves on military aircraft (sec. 518)       

        655                                                                     

      Payment of Federal Employee Health Benefit Program premiums for      
   certain reservists called to active duty in support of contingency      
   operations (sec. 519)                                                   
        656                                                                     

      Subtitle C--Joint Specialty Officers and Joint Professional Military 
   Education                                                               
        656                                                                     

   Nominations and promotions for joint specialty officers (sec. 521)      

        656                                                                     

   Joint duty credit (sec. 522)                                            

        656                                                                     

      Retroactive joint service credit for duty in certain joint task      
   forces (sec. 523)                                                       
        656                                                                     

   Revision to annual report on joint officer management (sec. 524)        

        657                                                                     

      Requirement for selection for joint specialty before promotion to    
   general of flag officer grade (sec. 525)                                
        657                                                                     

      Independent study of joint officer management and joint professional 
   military education reforms (sec. 526)                                   
        658                                                                     


   Professional development education (sec. 527)                           

        658                                                                     

      Authority for National Defense University to enroll certain private  
   sector civilians (sec. 528)                                             
        658                                                                     

      Continuation of reserve component professional military education    
   test (sec. 529)                                                         
        658                                                                     

   Subtitle D--Military Education and Training                             

        658                                                                     

   Defense Language Institute Foreign Language Center (sec. 531)           

        658                                                                     

      Authority for the Marine Corps University to award degree of master  
   of strategic studies (sec. 532)                                         
        659                                                                     

   Foreign students attending the service academies (sec. 533)             

        659                                                                     

      Increase in maximum age for appointment as a cadet or midshipman in  
   Senior Reserve Officers' Training Corps scholar ship programs (sec. 534)
        659                                                                     

      Participation of regular enlisted members of the armed forces in     
   Senior Reserve Officers' Training Corps program (sec. 535)              
        659                                                                     

      Authority to modify the service obligation of certain ROTC cadets in 
   military junior colleges receiving financial assistance (sec. 536)      
        660                                                                     

      Repeal of limitation on number of Junior Reserve Officers' Training  
   Corps units (sec. 537)                                                  
        660                                                                     

      Modification of nurse officer candidate accession program restriction
   on students attending educational institutions with Senior Reserve      
   Officers' Training programs (sec. 538)                                  
        660                                                                     

   Reserve health professionals stipend program expansion (sec. 539)       

        660                                                                     

      Housing allowance for the chaplain for the Corps of Cadets at the    
   United States Military Academy (sec. 540)                               
        660                                                                     

   Subtitle E-- Recruiting and Accession Programs                          

        660                                                                     

   18-month enlistment pilot program (sec. 541)                            

        660                                                                     

   Improved benefits under the Army College First program (sec. 542)       

        661                                                                     

      Correction and extension of certain Army recruiting pilot program    
   authorities (sec. 543)                                                  
        661                                                                     

   Military recruiter access to secondary school students (sec. 544)       

        661                                                                     

      Permanent authority for use of military recruiting funds for certain 
   expenses at Department of Defense recruiting functions (sec. 545)       
        662                                                                     

      Report on health and disability benefits for pre-accession training  
   and education programs (sec. 546)                                       
        662                                                                     

   Subtitle F--Decorations, Awards, and Posthumous Commission              

        662                                                                     

      Authority for award of the Medal of Honor to Humbert R. Versace, Jon 
   E. Swanson, and Ben L. Salomon for valor (sec. 551)                     
        662                                                                     

      Review regarding award of Medal of Honor to certain Jewish American  
   and Hispanic American war veterans (sec. 552)                           
        662                                                                     

      Authority to issue duplicate Medals of Honor and to replace stolen   
   military decorations (sec. 553)                                         
        663                                                                     

   Retroactive Medal of Honor special pension (sec. 554)                   

        663                                                                     

      Waiver of time limitations for award of certain decorations to       
   certain persons (sec. 555)                                              
        663                                                                     

   Sense of Congress on issuance of certain medals (sec. 556)              

        663                                                                     

      Sense of Congress on development of a more comprehensive, uniform    
   policy for the award of decorations to military and civilian personnel  
   of the Department of Defense (sec. 557)                                 
        664                                                                     

      Posthumous Army commission in the grade of captain in the Chaplains  
   Corps to Ella E. Gibson for service as chaplain of the First Wisconsin  
   Heavy Artillery Regiment during the Civil War (sec. 558)                
        664                                                                     

   Subtitle G--Funeral Honors Duty                                         

        664                                                                     

   Participation of military retirees in funeral honors details (sec. 561) 

        664                                                                     

      Funeral honors duty performed by reserve and guard members to be     
   treated as inactive-duty training for certain purposes (sec. 562)       
        664                                                                     

      Use of military leave for funeral honors duty by reserve members and 
   National Guardsman (sec. 563)                                           
        664                                                                     

      Authority to provide appropriate articles of clothing as a civilian  
   uniform for civilians participating in funeral honor details (sec. 564) 
        665                                                                     

   Subtitle H--Military Spouses and Family Members                         

        665                                                                     

      Improved financial and other assistance to military spouses for job  
   training and education (sec. 571)                                       
        665                                                                     

      Persons authorized to be included in surveys of military families    
   regarding federal programs (sec. 572)                                   
        665                                                                     

      Clarification of treatment of classified information concerning      
   persons in a missing status (sec. 573)                                  
        665                                                                     

      Transportation to annual meeting of next-of-kin of persons           
   unaccounted for from conflicts after World War II (sec. 574)            
        666                                                                     

      Amendments to charter of Defense Task Force on Domestic Violence     
   (sec. 575)                                                              
        666                                                                     


   Subtitle I--Military Justice and Legal Assistance Matters               

        666                                                                     

      Blood alcohol content limit for the offense under the Uniform Code of
   Military Justice of drunken operation of a vehicle, aircraft, or vessel 
   (sec. 581)                                                              
        666                                                                     

      Requirement that courts-martial consist of not less than 12 members  
   in capital cases (sec. 582)                                             
        666                                                                     

      Acceptance of voluntary legal assistance for the civil affairs of    
   members and former members of the uniformed services and their          
   dependents (sec. 583)                                                   
        667                                                                     

   Subtitle J--Other Matters                                               

        667                                                                     

      Congressionl review period for change in ground combat exclusion     
   policy (sec. 591)                                                       
        667                                                                     

   Per diem allowance for lengthy or numerous deployments (sec. 592)       

        667                                                                     

   Clarification of disability severance pay computation (sec. 593)        

        668                                                                     

      Transportation or storage of privately owned vehicles on change or   
   permanent station (sec. 594)                                            
        668                                                                     

       Repeal of requirement for final Comptroller General report relating 
   to Army end strength allocations (sec. 595)                             
        668                                                                     

      Continued Department of Defense administration of National Guard     
   Challenge Program and Department of Defense STARBASE Program (sec. 596) 
        668                                                                     

      Report on Defense Science Board recommendation on original           
   appointments in regular grades for academy graduates and certain other  
   new officers (sec. 597)                                                 
        669                                                                     

      Sense of Congress regarding the selection of officers for            
   recommendation for appointment as Commander, United States              
   Transportation Command (Sec. 598)                                       
        669                                                                     

          Legislative Provisions Not Adopted                            

        670                                                                     

      Acceptance of fellowships, scholarships, or grants for legal         
   education of officer participating in the Funded Legal Education Program
        670                                                                     

      Codification of requirement for regulations for delivery of military 
   personnel to civil authorities when charged with certain offenses       
        670                                                                     

   Expanded application of reserve special selection board                 

        670                                                                     

      Members of the National Guard Performing funeral honors duty while in
   non-federal status                                                      
        670                                                                     

      One-year extension of expiration data for certain force management   
   authorities.                                                            
        671                                                                     

      Preparation for, participation in, and conduct of athletic           
   competitions by the National Guard and members of the National Guard    
        671                                                                     

   Right of convicted accused to request sentencing by military judge      

        671                                                                     

    Title VI--Compensation and Other Personnel Benefits                    

        671                                                                     

          Items of Special Interest                                     

        671                                                                     

   Personal and Family financial management programs                       

        671                                                                     

          Legislative Provisions Adopted                                

        672                                                                     

   Subtitle A--Pay and Allowances                                          

        672                                                                     

   Increase in basic pay for fiscal year 2002 (sec. 601)                   

        672                                                                     

      Basic pay rate for certain reserve commissioned officers with prior  
   service as an enlisted member or warrant officer (sec. 602)             
        672                                                                     

      Reserve component compensation for distributed learning activities   
   performed as inactive-duty training (sec. 603)                          
        672                                                                     

   Subsistence allowances (sec. 604)                                       

        672                                                                     

      Eligibility for temporary housing allowance while in travel or leave 
   status between permanent duty stations (sec. 605)                       
        673                                                                     

   Uniform allowance for officers (sec. 606)                               

        673                                                                     

      Family separation allowance for members electing unaccompanied tour  
   by reason of health limitations of dependents (sec. 607)                
        673                                                                     

   Subtitle B--Bonuses and Special Incentive Pays                          

        673                                                                     

      One-year extension of certain bonus and special pay authorities for  
   reserve forces (sec. 611)                                               
        673                                                                     

      One-year extension of certain bonus and special pay authorities for  
   nurse officer candidates, registered nurses, and nurse anesthetists     
   (sec. 612)                                                              
        673                                                                     

   One-year extension of special pay and bonus authorities (sec. 613 614)  

        674                                                                     

      Hazardous duty pay for members of maritime visit, board, search, and 
   seizure teams (sec. 615)                                                
        674                                                                     

      Eligibility for certain career continuation bonuses for early        
   commitment to remain on active duty (sec. 616)                          
        674                                                                     

      Secretarial discretion in prescribing submarine duty incentive pay   
   rates (sec. 617)                                                        
        674                                                                     

      Conforming accession bonus for dental offices authority with         
   authorities for other special pay and bonus (sec. 618)                  
        674                                                                     

      Modification of eligibility requirements for Individual Ready Reserve
   bonus for reenlistment, enlistment, or extension of enlistment (sec.    
   619)                                                                    
        675                                                                     

      Installation payment authority for 15 years career status bonus (sec.
   620)                                                                    
        675                                                                     


   Accession bonus for new officers in critical skills (sec. 621)          

        675                                                                     

      Education savings plan to encourage reenlistments and extensions of  
   service in critical specialities (sec. 622)                             
        675                                                                     

      Continuation of payment of special and incentive pay at unreduced    
   rates during stop loss periods (sec. 623)                               
        675                                                                     

      Retroactive authorization for imminent danger pay for service in     
   connection with Operation Enduring Freedom (sec. 624)                   
        675                                                                     

   Subtitle C--Travel and Transportation Allowances                        

        676                                                                     

      Minimum per diem rate for travel and transportation allowance for    
   travel performed upon a change of permanent station and certain other   
   travel (sec. 631)                                                       
        676                                                                     

      Eligibility for payment of subsistence expenses associated with      
   occupancy of temporary lodging incident to reporting to first permanent 
   duty station (sec. 632)                                                 
        676                                                                     

      Reimbursement of members for mandatory pet quarantine fees for       
   household pets (sec. 633)                                               
        676                                                                     

      Increased weight allowance for transportation of baggage and         
   household effects for junior enlisted members (sec. 634)                
        676                                                                     

   Eligibility of additional members for dislocation allowance (sec. 635)  

        676                                                                     

      Partial dislocation allowance authorized for housing moves ordered   
   for government convenience (sec. 636)                                   
        677                                                                     

      Allowances for travel performed in connection with members taking    
   authorized leave between consecutive overseas tours (sec. 637)          
        677                                                                     

      Travel and transportation allowances for family members to attend    
   burial of a deceased member of the uniformed services (sec. 638)        
        677                                                                     

      Funded student travel for foreign study under an education program   
   approved by a United States school (sec. 639)                           
        677                                                                     

   Subtitle D--Retirement and Survivor Benefit Matters                     

        678                                                                     

      Contingent authority for concurrent receipt of military retired pay  
   and veterans' disability compensation and enhancement of special        
   compensation authority (sec. 641)                                       
        678                                                                     

      Survivor Benefit Plan annuities for surviving spouses of members who 
   die while on active duty and not eligible for retirement (sec. 642)     
        678                                                                     

   Subtitle E--Other Matters                                               

        678                                                                     

      Payment for unused leave in excess of 60 days accrued by members of  
   reserve components on active duty for one year or less (sec. 651)       
        678                                                                     

      Additional authority to provide assistance for families of members of
   the armed forces (sec. 652)                                             
        679                                                                     

      Authorization of transitional compensation and commissary and        
   exchange benefits for dependents of commissioned officers of the Public 
   Health Service and the National Oceanic and Atmospheric Administration  
   who are separated for dependent abuse (sec. 653)                        
        679                                                                     

      Transfer of entitlement to educational assistance under Montgomery GI
   Bill by members of the Armed Forces with critical military skills (sec. 
   654)                                                                    
        680                                                                     

          Legislative Provisions Not Adopted                            

        680                                                                     

   Career sea pay                                                          

        680                                                                     

      Equal treatment of reservists performing inactive-duty training for  
   receipt of aviation career incentive pay                                
        680                                                                     

   Increase in basic allowance for housing in the United States            

        680                                                                     

    Title VII--Health Care Provisions                                      

        681                                                                     

          Legislative Provisions Adopted                                

        681                                                                     

   Subtitle A--Tricare Program Improvements                                

        681                                                                     

   Sub-acute and long-term care program reform (sec. 701)                  

        681                                                                     

   Prosthetics and hearing aids (sec. 702)                                 

        681                                                                     

   Durable medical equipment (sec. 703)                                    

        681                                                                     

   Rehabilitative therapy (sec. 704)                                       

        681                                                                     

   Report on mental health benefits (sec. 705)                             

        681                                                                     

      Clarification of eligibility for reimbursement of travel expenses of 
   adult accompanying patient in travel for specialty care (sec. 706)      
        681                                                                     

      TRICARE program limitations on payment rates for institutional health
   care providers and on balance billing by institutional and              
   noninstitutional health care providers (sec. 707)                       
        682                                                                     

   Improvements in administration of the TRICARE program (sec. 708)        

        682                                                                     

   Subtitle B--Senior Health Care                                          

        682                                                                     

      Clarifications and improvements regarding the Department of Defense  
   Medicare-Eligible Retiree Health Care Fund (sec. 711)                   
        682                                                                     

   Subtitle C--Studies and Reports                                         

        683                                                                     

      Comptroller General study of health care coverage of members of the  
   reserve components of the Armed Forces and the National Guard (sec. 721)
        683                                                                     

      Comptroller General study of adequacy and quality of health care     
   provided to women under the Defense Health Program (sec. 722)           
        683                                                                     


   Repeal of obsolete report requirement (sec. 723)                        

        683                                                                     

      Comptroller General report on requirement to provide screenings,     
   physical examinations, and other care for certain members (sec. 724)    
        683                                                                     

   Subtitle D--Other Matters                                               

        684                                                                     

      Prohibition against requiring military retirees to receive health    
   care solely through the Department of Defense (sec. 731)                
        684                                                                     

   Fees for trauma and other medical care provided to civilians (sec. 732) 

        684                                                                     

   Enhancement of medical product development (sec. 733)                   

        684                                                                     

      Pilot program providing for Department of Veterans Affairs support in
   the performance of separation physical examinations (sec. 734)          
        685                                                                     

      Modification of prohibition on requirement of nonavailability        
   statement or preauthorization (sec. 735)                                
        685                                                                     

      Transitional health care for members separated from active duty (sec.
   736)                                                                    
        685                                                                     

      Two-year extension of health care management demonstration program   
   (sec. 737)                                                              
        686                                                                     

      Joint DOD-VA pilot program for providing graduate medical education  
   and training for physicians (sec. 738)                                  
        686                                                                     

          Legislative Provisions Not Adopted                            

        686                                                                     

   Effective date                                                          

        686                                                                     

       Title VIII--Acquisition Policy, Acquisition Management, and Related 
   Matters                                                                 
        686                                                                     

          Items of Special Interest                                     

        686                                                                     

   Management reform initiatives                                           

        686                                                                     

          Legislative Provisions Adopted                                

        687                                                                     

   Subtitle A--Procurement Management and Administration                   

        687                                                                     

   Management of procurement of services  (sec. 801)                       

        687                                                                     

   Savings goals for procurement of services  (sec. 802)                   

        687                                                                     

      Competition requirement for purchase of services pursuant to multiple
   award contracts (sec. 803)                                              
        688                                                                     

      Reports on maturity of technology at initiation of Major Defense     
   Acquisition Programs (sec. 804)                                         
        688                                                                     

   Subtitle B--Use of Preferred Sources                                    

        689                                                                     

      Applicability of competition requirements to purchases from a        
   required source (sec. 811)                                              
        689                                                                     

   Extension of mentor-protege program  (sec. 812)                         

        689                                                                     

      Increase of assistance limitation regarding Procurement Technical    
   Assistance Program (sec. 813)                                           
        689                                                                     

      Subtitle C--Amendments to General Contracting Authorities,           
   Procedures, and Related Matters                                         
        689                                                                     

      Amendments to conform with administrative changes in acquisition     
   phase and milestone terminology and to make related adjustments in      
   certain requirements applicable at milestone transition points (sec.    
   821)                                                                    
        689                                                                     

      Follow-on production contracts for products developed pursuant to    
   prototype projects (sec. 822)                                           
        690                                                                     

      One-year extension of program applying simplified procedures to      
   certain commercial items (sec. 823)                                     
        690                                                                     

   Acquisition workforce qualifications  (sec. 824)                        

        690                                                                     

      Report on implementation of recommendations of the Acquisition 2005  
   Task Force (sec. 825)                                                   
        690                                                                     

   Subtitle D--Other Matters                                               

        691                                                                     

      Identification of errors made by executive agencies in payments to   
   contractors and recovery of amounts erroneously paid (sec. 831)         
        691                                                                     

      Codification and modification of provision of law known as the       
   ``Berry Amendment'' (sec. 832)                                          
        691                                                                     

      Personal services contracts to be performed by individuals or        
   organizations abroad (sec. 833)                                         
        691                                                                     

   Requirements regarding insensitive munitions  (sec. 834)                

        691                                                                     

      Inapplicability of limitation to small purchases of miniature or     
   instrument ball or roller bearings under certain circumstances (sec.    
   835)                                                                    
        692                                                                     

      Temporary emergency procurement authority to facilitate the defense  
   against terrorism or biological or chemical attack (sec. 836)           
        692                                                                     

          Legislative Provisions Not Adopted                            

        693                                                                     

   Consolidation of defense contracts                                      

        693                                                                     

   HUBzone small business concerns                                         

        693                                                                     

   Small business procurement competition                                  

        693                                                                     

    Title IX--Department of Defense Organization and Management            

        693                                                                     

          Items of Special Interest                                     

        693                                                                     

   Organizational changes to the Office of the Secretary of Defense        

        693                                                                     

          Legislative Provisions Adopted                                

        694                                                                     

   Subtitle A--Duties and Functions of Department of Defense Officers      

        694                                                                     

   Deputy Under Secretary of Defense for Personnel and Readiness (sec. 901)

        694                                                                     

      Sense of Congress on functions of new Office of Force Transformation 
   in the Office of the Secretary of Defense (sec. 902)                    
        694                                                                     

      Suspension of reorganization of engineering and technical authority  
   policy within the Naval Sea Systems Command pending report to           
   congressional committees (sec. 903)                                     
        695                                                                     


   Subtitle B--Space Activities                                            

        695                                                                     

   Space Activities (secs. 911 915)                                        

        695                                                                     

   Subtitle C--Reports                                                     

        698                                                                     

      Revised requirement for Chairman of the Joint Chiefs of Staff to     
   advise Secretary of Defense on the assignment of roles and missions to  
   the armed forces (sec. 921)                                             
        698                                                                     

      Revised requirements for content of annual report on joint           
   warfighting experimentation (sec. 922)                                  
        699                                                                     

      Repeal of requirement for one of three remaining required reports on 
   activities of Joint Requirements Oversight Council (sec. 923)           
        699                                                                     

      Revised joint report on establishment of national collaborative      
   information analysis capability (sec. 924)                              
        699                                                                     

   Subtitle D--Other Matters                                               

        700                                                                     

      Conforming amendments relating to change of name of Military Airlift 
   Command to Air Mobility Command (sec. 931)                              
        700                                                                     

      Organizational realignment for Navy Director for Expeditionary       
   Warfare (sec. 932)                                                      
        700                                                                     

          Legislative Provisions Not Adopted                            

        700                                                                     

   Reductions in acquisition and support workforce                         

        700                                                                     

      Responsibility of the Under Secretary of the Air Force for           
   Acquisition of space launch vehicles and space launch services          
        700                                                                     

    Title X--General Provisions                                            

        701                                                                     

   Counter-Drug Activities                                                 

        701                                                                     

   National Guard Counter-drug activities                                  

        701                                                                     

   Operation Caper Focus                                                   

        701                                                                     

   Tethered Aerostat Radar System                                          

        701                                                                     

          Items of Special Interest                                     

        701                                                                     

   Automobile Safety Program                                               

        701                                                                     

          Legislative Provisions Adopted                                

        702                                                                     

   Subtitle A--Financial Matters                                           

        702                                                                     

   Transfer authority (sec. 1001)                                          

        702                                                                     

   Incorporation of classified annex (sec. 1002)                           

        702                                                                     

      Authorization of supplemental appropriations for fiscal year 2001    
   (sec. 1003)                                                             
        702                                                                     

      United States contribution to NATO common-funded budgets in fiscal   
   year 2002 (sec. 1004)                                                   
        702                                                                     

      Limitation on funds for Bosnia and Kosovo Peacekeeping Operations for
   fiscal year 2002 (sec. 1005)                                            
        703                                                                     

   Maximum amount for National Foreign Intelligence Program (sec. 1006)    

        703                                                                     

      Clarification of applicability of interest penalties for late payment
   of interim payments due under contracts for services (sec. 1007)        
        703                                                                     

   Reliability of Department of Defense financial statements (sec. 1008)   

        703                                                                     

      Financial Management Modernization Executive Committee and financial 
   feeder systems compliance process (sec. 1009)                           
        704                                                                     

      Authorization of funds for ballistic missile defense programs or     
   combating terrorism programs of the Department of Defense (sec. 1010)   
        704                                                                     

   Subtitle B--Naval Vessels and Shipyards                                 

        704                                                                     

      Authority to transfer naval vessels to certain foreign countries     
   (sec. 1011)                                                             
        704                                                                     

   Sale of Glomar Explorer to the lessee (sec. 1012)                       

        705                                                                     

      Leasing of Navy ships for Universary National Oceanographic          
   Laboratory System (sec. 1013)                                           
        705                                                                     

      Increase in limitations on administrative authority of the Navy to   
   settle admiralty claims (sec. 1014)                                     
        705                                                                     

   Subtitle C--Counter-Drug Activities                                     

        705                                                                     

      Extension and restatement of authority to provide Department of      
   Defense support for counter-drug activities of other governmental       
   agencies (sec. 1021)                                                    
        705                                                                     

      Extension of reporting requirement regarding Department of Defense   
   expenditures to support foreign counter-drug activities (sec. 1022)     
        706                                                                     

      Authority to transfer Tracker aircraft currently used by Armed Forces
   for counter-drug purposes (sec. 1023)                                   
        706                                                                     

      Limitation on use of funds for operation of Tethered Aerostat Radar  
   System pending submission of required report (sec. 1024)                
        706                                                                     

   Subtitle D--Strategic Forces                                            

        707                                                                     

      Repeal of limitation on retirement or dismantlement of strategic     
   nuclear delivery systems (sec. 1031)                                    
        707                                                                     

   Air Force bomber force structure (sec. 1032)                            

        707                                                                     

   Additional element for revised nuclear posture review (sec. 1033)       

        707                                                                     

      Report on options for modernization and enhancement of missile wing  
   helicopter support (sec. 1034)                                          
        708                                                                     

   Subtitle E--Other Department of Defense Provisions                      

        708                                                                     

      Secretary of Defense recommendation on need for Department of Defense
   review of proposed federal agency actions to consider possible impact on
   national defense (sec. 1041)                                            
        708                                                                     

      Department of Defense reports to Congress to be accompanied by       
   electronic version upon request (sec. 1042)                             
        708                                                                     

   Department of Defense gift authorities (sec. 1043)                      

        709                                                                     

      Acceleration of research, development, and production of medical     
   countermeasures for defense against biological warfare agents (sec.     
   1044)                                                                   
        709                                                                     


      Chemical and biological protective equipment for military personnel  
   and civilian employees of the Department of Defense (sec. 1045)         
        710                                                                     

      Sale of goods and services by Naval Magazine, Indian Island, Alaska  
   (sec. 1046)                                                             
        710                                                                     

      Report on procedures and guidelines for embarkation of civilian      
   guests on naval vessels for public affairs purposes (sec. 1047)         
        710                                                                     

   Technical and clerical amendments (sec. 1048)                           

        711                                                                     

      Termination of referendum requirement regarding continuation of      
   military training on the island of Vieques, Puerto Rico, and imposition 
   of additional conditions on closure of training range (sec. 1049)       
        711                                                                     

   Subtitle F--Other Matters                                               

        712                                                                     

   Assistance for firefighters (sec. 1061)                                 

        712                                                                     

      Extension of times for Commission on the Future of the United States 
   Aerospace Industry to report and to terminate (sec. 1062)               
        712                                                                     

   Appropriations to Radiation Exposure Compensation Trust Fund (sec. 1063)

        712                                                                     

      Waiver of vehicle weight limits during periods of national emergency 
   (sec. 1064)                                                             
        712                                                                     

      Repair, restoration, and preservation of Lafayette Escadrille        
   Memorial, Marnes-la-Coquette, France (sec. 1065)                        
        713                                                                     

          Legislative Provisions Not Adopted                            

        713                                                                     

   Action to promote national defense features program                     

        713                                                                     

   Assignment of members to assist border patrol and control               

        714                                                                     

      Authority to pay gratuity to members of the armed forces and civilian
   employees of the United States for slave labor performed for Japan      
   during World War II                                                     
        714                                                                     

   Contingent authorization of appropriations                              

        714                                                                     

   Demilitarization of significant military equipment                      

        714                                                                     

      Information and recommendations and congressional reporting          
   requirements applicable to the Department of Defense                    
        714                                                                     

      Reductions in authorizations of appropriations for Department of     
   Defense for management efficiencies                                     
        715                                                                     

      Release of restriction on use of certain vessels previously          
   authorized to be sold                                                   
        715                                                                     

      Revision in types of excess naval vessels for which approval by law  
   is required for disposal to foreign nations                             
        715                                                                     

      Revision of annual report to Congress on National Guard and reserve  
   component equipment                                                     
        715                                                                     

      Sense of the Senate that the Secretary of the Treasury should        
   immediately issue savings bonds, to be designated as ``Unity Bonds''    
        715                                                                     

   Transfer of Vietnam-era F 4 to non-profit museum                        

        716                                                                     

    Title XI--Civilian Personnel                                           

        716                                                                     

          Legislative Provisions Adopted                                

        716                                                                     

   Subtitle A--Department of Defense Civilian Personnel                    

        716                                                                     

      Personnel pay and qualifications authority for Department of Defense 
   Pentagon Reservation civilian law enforcement and security force (sec.  
   1101)                                                                   
        716                                                                     

   Pilot program for payment of retraining expenses (sec. 1102)            

        716                                                                     

   Authority of civilian employees to act as notaries (sec. 1103)          

        716                                                                     

      Authority to appoint certain health care professionals in the        
   excepted service (sec. 1104)                                            
        716                                                                     

   Subtitle B--Civilian Personnel Management Generally                     

        717                                                                     

   Authority to provide hostile fire pay (sec. 1111)                       

        717                                                                     

   Payment of expenses to obtain professional credentials (sec. 1112)      

        717                                                                     

      Parity in establishment of wage schedules and rates for prevailing   
   rate employees (sec. 1113)                                              
        717                                                                     

   Modification of limitation on premium pay (sec. 1114)                   

        717                                                                     

      Participation of personnel in technical standards development        
   activities (sec. 1115)                                                  
        718                                                                     

   Retention of travel promotional items (sec. 1116)                       

        718                                                                     

      Applicability of certain laws to certain individuals assigned to work
   in the Federal Government (sec. 1117)                                   
        718                                                                     

   Subtitle C--Intelligence Civilian Personnel                             

        718                                                                     

      Authority to increase maximum number of positions in the Defense     
   Intelligence Senior Executive Service (sec. 1121)                       
        718                                                                     

   Subtitle D--Matters Relating to Retirement                              

        719                                                                     

      Improved portability of retirement coverage for employees moving     
   between civil service employment and employment by nonapproporiated fund
   instrumentalities (sec. 1131)                                           
        719                                                                     

      Federal employment retirement credit for nonappropriated fund        
   instrumentality service (sec. 1132)                                     
        719                                                                     

      Modification of limitations on exercise of voluntary separation      
   incentive pay authority and voluntary early retirement authority (sec.  
   1133)                                                                   
        719                                                                     

          Legislative Provisions Not Adopted                            

        719                                                                     

      Continued applicability of certain civil service protections for     
   employees integrated into the National Imagery and Mapping Agency from  
   the Defense Mapping Agency                                              
        719                                                                     


      Removal of requirement that granting civil service compensatory time 
   be based on amount of irregular or occasional overtime work             
        720                                                                     

      Undergraduate training program for employees of the National Imagery 
   and Mapping Agency                                                      
        720                                                                     

      Use of common occupational and health standards as a basis for       
   differential payments made as a consequence of exposure to asbestos     
        720                                                                     

    Title XII--Matters Relating to Other Nations                           

        720                                                                     

          Legislative Provisions Adopted                                

        720                                                                     

   Subtitle A--Matters Related to Arms control and Monitoring              

        720                                                                     

      Clarification of authority to furnish nuclear test monitoring        
   equipment to foreign governments (sec. 1201)                            
        720                                                                     

      Limitation on funding for Joint Data Exchange Center in Moscow (sec. 
   1202)                                                                   
        721                                                                     

      Support of United Nations-sponsored efforts to inspect and monitor   
   Iraqi weapons activities (sec. 1203)                                    
        721                                                                     

      Authority for employees of Federal Government contractors to         
   accompany chemical weapons inspection teams at government-owned         
   facilities (sec. 1204)                                                  
        721                                                                     

      Plan for securing nuclear weapons, material, and expertise of the    
   states of the former Soviet Union (sec. 1205)                           
        721                                                                     

   Subtitle B--Matters Relating to Allies and Friendly Foreign Nations     

        722                                                                     

   Acquisition of logistical support for security forces (sec. 1211)       

        722                                                                     

      Extension of authority for international cooperative research and    
   development projects (sec. 1212)                                        
        722                                                                     

      Cooperative agreements with foreign countries and international      
   organizations for reciprocal use of test facilities (sec. 1213)         
        723                                                                     

   Sense of Congress on allied defense burdensharing (sec. 1214)           

        723                                                                     

   Subtitle C--Reports                                                     

        723                                                                     

      Report on significant sales and transfers of military hardware,      
   expertise, and technology to the People's Republic of China (sec. 1221) 
        723                                                                     

      Repeal of requirement for reporting to Congress on military          
   deployments to Haiti (sec. 1222)                                        
        724                                                                     

      Report by comptroller General on provision of defense articles,      
   services, and military education and training to foreign countries and  
   international organizations (sec. 1223)                                 
        724                                                                     

          Legislative Provisions Not Adopted                            

        724                                                                     

   Limitation on number of military personnel in Columbia                  

        724                                                                     

       Title XIII--Cooperative Threat Reduction With States of the Former  
   Soviet Union                                                            
        724                                                                     

          Legislative Provisions Adopted                                

        724                                                                     

      Specification of Cooperative Threat Reduction programs and funds     
   (sec. 1301)                                                             
        724                                                                     

   Funding allocations (sec. 1302)                                         

        725                                                                     

   Limitation on use of funds until submission of reports (sec. 1303)      

        725                                                                     

      Requirement to consider use of revenue generated by activities       
   carried out under Cooperative Threat Reduction programs (sec. 1304)     
        725                                                                     

      Prohibition against use of funds for second wing of fissile material 
   storage facility (sec. 1305)                                            
        725                                                                     

      Prohibition against use of funds for certain construction activities 
   (sec. 1306)                                                             
        726                                                                     

      Reports on activities and assistance under Cooperative Threat        
   Reduction programs (sec. 1307)                                          
        726                                                                     

   Chemical weapons destruction (sec. 1308)                                

        726                                                                     

      Additional matter in annual report on activities and assistance under
   Cooperative Threat Reduction programs (sec. 1309)                       
        727                                                                     

          Legislative Provisions Not Adopted                            

        727                                                                     

      Report on responsibility for carrying out Cooperative Threat         
   Reduction programs                                                      
        727                                                                     

    Title XIV--Armed Forces Retirement Home                                

        728                                                                     

          Legislative Provisions Adopted                                

        728                                                                     

   Amendment of Armed Forces Retirement Home Act of 1991 (sec. 1401)       

        728                                                                     

   Definitions (sec. 1402)                                                 

        728                                                                     

      Revision of authority establishing the Armed Forces Retirement Home  
   (sec. 1403)                                                             
        728                                                                     

   Chief Operating Officer (sec. 1404)                                     

        729                                                                     

   Residents of Retirement Home (sec. 1405)                                

        729                                                                     

   Local boards of trustees (sec. 1406)                                    

        729                                                                     

      Directors, Deputy Directors, Associate Directors, and staff of       
   facilities (sec. 1407)                                                  
        729                                                                     

      Disposition of effects of deceased persons and unclaimed property    
   (sec. 1408)                                                             
        729                                                                     

   Transitional provisions (sec. 1409)                                     

        729                                                                     

      Conforming and clerical amendments and repeals of obsolete provisions
   (sec. 1410)                                                             
        730                                                                     

          Legislative Provisions Not Adopted                            

        730                                                                     


   Amendments of other laws                                                

        730                                                                     

    Title XV--Activities Relating to Combating Terrorism                   

        730                                                                     

          Legislative Provisions Adopted                                

        730                                                                     

   Subtitle A--Increased Funding for Combating Terrorism                   

        730                                                                     

      Authoriation of emergency appropriations under the 2001 Emergency    
   Supplemental Appropriations Act for Recovering From and Response to     
   Terrorist Attacks on the United States. (secs. 1501 1506)               
        730                                                                     

   Subtitle B--Policy Matters Relating to Combating Terrorism              

        731                                                                     

       Study and report on the role of the Department of Defense with      
   respect to homeland security (sec. 1511)                                
        731                                                                     

      Combating Terrorism Readiness Initiatives Fund for combatant commands
   (sec. 1512)                                                             
        732                                                                     

      Conveyances of equipment and related materials loaned to state and   
   local governments as assistance for emergency response to a use of      
   threatened use of a weapon of mass destruction (sec. 1513)              
        732                                                                     

      Two-year extension of the Advisory Panel to Assess Domestic Response 
   Capabilities for Terrorism Involving Weapons of Mass Destruction (sec.  
   1514)                                                                   
        732                                                                     

          Legislative Provisions Not Adopted                            

        733                                                                     

   Establishment of combating terrorism as a national security mission     

        733                                                                     

    Title XVI--Uniformed Services Voting                                   

        733                                                                     

          Legislative Provisions Adopted                                

        733                                                                     

   Sense of Congress regarding the important of voting (sec. 1601)         

        733                                                                     

   Voting assistance programs (sec. 1602)                                  

        733                                                                     

   Guarantee of residency for military personnel (sec. 1603)               

        734                                                                     

   Electronic voting demonstration project (sec. 1604)                     

        734                                                                     

      Governors' reports on implementation of recommendations for changes  
   in state law made under Federal Voting Assistance Program (sec. 1605)   
        734                                                                     

      Simplification of voter registration and absentee ballot application 
   procedures for absent uniformed services and overseas voters (sec. 1606)
        734                                                                     

      Use of certain Department of Defense facilities as polling places    
   (sec. 1607)                                                             
        735                                                                     

          Legislative Provisions Not Adopted                            

        735                                                                     

      Extension of registration and balloting rights for absent uniformed  
   services voters to state and local elections                            
        735                                                                     

      Maximization of access of recently separated uniformed service voters
   to the polls                                                            
        735                                                                     

      Standard for invalidation of ballots cast by absent uniformed        
   services voters in federal elections                                    
        735                                                                     

   DIVISION B--MILITARY CONSTRUCTION AUTHORIZATION                         

        735                                                                     

   Overview                                                                

        735                                                                     

   Short title; definition  (sec. 2001)                                    

        758                                                                     

    Title XXI--Army                                                        

        758                                                                     

   Overview                                                                

        758                                                                     

          Items of Special Interest                                     

        758                                                                     

   Renovation of Womack Army Medical Center, Fort Bragg North Carolina     

        758                                                                     

          Legislative Provisions Adopted                                

        759                                                                     

   Authorized Army Construction and land acquisition projects (sec. 2101)  

        759                                                                     

   Family housing  (sec. 2102)                                             

        759                                                                     

   Improvements to military family housing units (sec. 2103)               

        759                                                                     

   Authorization of appropriations, Army  (sec. 2104)                      

        759                                                                     

      Modification of authority to carry out certain fiscal year 2001      
   projects (sec. 2105)                                                    
        759                                                                     

      Modification of authority to carry out certain fiscal year 2002      
   projects (sec. 2106)                                                    
        760                                                                     

    Title XXIII--Navy                                                      

        760                                                                     

   Overview                                                                

        760                                                                     

          Legislative Provisions Adopted                                

        760                                                                     

   Authorized Navy construction and land acquisition projects (sec. 2201)  

        760                                                                     

   Family housing (sec. 2202)                                              

        761                                                                     

   Improvements to military family housing units (sec. 2203)               

        761                                                                     

   Authorization of appropriations, Navy  (sec. 2204)                      

        761                                                                     

      Modification of authority to carry out certain fiscal year 2001      
   projects (sec. 2205)                                                    
        761                                                                     

      Modification of authority to carry out certain fiscal year 2000      
   project (sec. 2206)                                                     
        762                                                                     

    Title XXIII--Air Force                                                 

        762                                                                     

   Overview                                                                

        762                                                                     

          Legislative Provisions Adopted                                

        762                                                                     

      Authorized Air Force construction and land acquisition projects (sec.
   2301)                                                                   
        762                                                                     

   Family housing (sec. 2302)                                              

        763                                                                     

   Improvements to military family housing units (sec. 2303)               

        763                                                                     


   Authorization of appropriations, Air Force (sec. 2304)                  

        763                                                                     

      Modification of authority to carry out certain fiscal year 2001      
   projects (sec. 2305)                                                    
        763                                                                     

    Title XXIV--Defense Agencies                                           

        763                                                                     

   Overview                                                                

        763                                                                     

          Legislative Provisions Adopted                                

        764                                                                     

      Authorized Defense Agencies construction and land acquisition        
   projects (sec. 2401)                                                    
        764                                                                     

   Energy conservation projects (sec. 2402)                                

        764                                                                     

   Authorization of appropriations, Defense Agencies (sec. 2403)           

        764                                                                     

      Cancellation of authority to carry out certain fiscal year 2001      
   projects (sec. 2404)                                                    
        765                                                                     

      Modification of authority to carry out certain fiscal year 2000      
   projects (sec. 2405)                                                    
        765                                                                     

      Modification of authority to carry out certain fiscal year 1999      
   project (sec. 2406)                                                     
        766                                                                     

      Modification of authority to carry out certain fiscal year 1995      
   project (sec. 2407)                                                     
        766                                                                     

      Prohibition on expenditures to develop forward operating location on 
   Aruba (sec. 2408)                                                       
        766                                                                     

          Legislative Provisions Not Adopted                            

        766                                                                     

      Cancellation of authority to carry out additional fiscal year 2001   
   project                                                                 
        766                                                                     

       Title XXV--North Atlantic Treaty Organization Security Investment   
   Program                                                                 
        766                                                                     

   Overview                                                                

        766                                                                     

          Legislative Provisions Adopted                                

        768                                                                     

   Authorized NATO construction and land acquisition projects (sec. 2501)  

        767                                                                     

   Authorization of appropriations, NATO (sec. 2502)                       

        767                                                                     

    Title XXVI--Guard and Reserve Facilities                               

        767                                                                     

   Overview                                                                

        767                                                                     

          Items of Special Interest                                     

        767                                                                     

   Improvement of National Guard infrastructure                            

        767                                                                     

   Planning and design, Army National Guard                                

        768                                                                     

          Legislative Provisions Adopted                                

        768                                                                     

      Authorized guard and reserve construction and land acquisition       
   projects (sec. 2601)                                                    
        768                                                                     

    Title XXVII--Expiration and Extension of Authorizations                

        768                                                                     

          Legislative Provisions Adopted                                

        768                                                                     

      Expiration of authorizations and amounts required to be specified by 
   law (sec. 2701)                                                         
        768                                                                     

      Extension of authorizations of certain fiscal year 1999 projects     
   (sec. 2702)                                                             
        769                                                                     

      Extension of authorizations of certain fiscal year 1998 projects     
   (sec. 2703)                                                             
        769                                                                     

   Effective date (sec. 2704)                                              

        769                                                                     

    Title XXVIII--General Provisions                                       

        769                                                                     

          Items of Special Interest                                     

        769                                                                     

   Remediation of former Fort Ord, California                              

        769                                                                     

          Legislative Provisions Adopted                                

        770                                                                     

      Subtitle A--Military Construction Program and Military Family Housing
   Changes                                                                 
        770                                                                     

      Increase in thresholds for certain unspecified minor military        
   construction projects (sec. 2801)                                       
        770                                                                     

      Exclusion of unforseen environmental hazard remediation from         
   limitation on authorized cost variations (sec. 2802)                    
        770                                                                     

      Repeal of annual reporting requirement on military construction and  
   military family housing activities (sec. 2803)                          
        770                                                                     

      Funds for housing allowances of members assigned to military family  
   housing under alternative authority for acquisition and improvement of  
   military housing (sec. 2804)                                            
        770                                                                     

      Extension of alternative authority for acquisition and improvement of
   military housing (sec. 2805)                                            
        771                                                                     

      Treatment of financing costs as allowable expenses under contracts   
   for utility services from utility systems conveyed under privatization  
   initiative (sec. 2806)                                                  
        771                                                                     

   Subtitle B--Real Property and Facilities Administration                 

        771                                                                     

      Use of military installations for certain recreational activities    
   (sec. 2811)                                                             
        771                                                                     

      Availability of proceeds of sales of Department of Defense property  
   from certain closed military installations (sec. 2812)                  
        772                                                                     

      Pilot program to provide additional tools for efficient operation of 
   military installations (sec. 2813)                                      
        772                                                                     

      Demonstration program on reduction in long-term facility maintenance 
   costs (sec. 2814)                                                       
        772                                                                     

   Base efficiency project at Brooks Air Force Base, Texas (sec. 2815)     

        773                                                                     

   Subtitle C--Implementation of Prior Base Closure and Realignment Rounds 

        773                                                                     

   Lease back of base closure property (sec. 2821)                         

        773                                                                     

   Subtitle D--Land Conveyances                                            

        774                                                                     

   Part I--Army Conveyances                                                

        774                                                                     

      Land conveyance, Whittier-Anchorage Pipeline Tank Farm, Anchorage,   
   Alaska (sec. 2831)                                                      
        774                                                                     

   Lease authority, Fort DeRussy, Hawaii (sec. 2832)                       

        774                                                                     

   Modification of land exchange, Rock Island Arsenal, Illinois (sec. 2833)

        775                                                                     

   Land conveyance, Fort Des Moines, Iowa (sec. 2834)                      

        775                                                                     


   Modification of land conveyances, Fort Dix, New Jersey (sec. 2835)      

        775                                                                     

      Land conveyance, Engineer Proving Ground Fort Belvoir, Virginia (sec.
   2836)                                                                   
        776                                                                     

   Land exchange and consolidation, Fort Lewis, Washington (sec. 2837)     

        776                                                                     

   Land conveyance, Army Reserve Center, Kewaunee, Wisconsin (sec. 2838)   

        776                                                                     

   Part II--Navy Conveyances                                               

        777                                                                     

      Transfer of jurisdiction, Centerville Beach Naval Station, Humbolt   
   County, California (sec. 2841)                                          
        777                                                                     

   Land conveyance, Port of Long Beach, California (sec. 2842)             

        777                                                                     

   Conveyance of Pier, Naval Base, San Diego, California (sec. 2843)       

        777                                                                     

      Modification of authority for conveyance of Naval Computer and       
   Telecommunications Station, Cutler, Maine (sec. 2844)                   
        778                                                                     

      Land transfer and conveyance, Naval Security Group Activity, Winter  
   Harbor, Maine (sec. 2845)                                               
        778                                                                     

   Land acquisition, Perquimans County, North Carolina (sec. 2846)         

        778                                                                     

      Land conveyance, Naval Weapons Industrial Reserve Plant, Toledo, Ohio
   (sec. 2847)                                                             
        779                                                                     

      Modification of land conveyance, former United States Marine Corps   
   Air Station, Eagle Mountain Lake, Texas (sec. 2848)                     
        779                                                                     

   Part III--Air Force Conveyances                                         

        779                                                                     

      Conveyance of avigation easements, former Norton Air Force Base,     
   California (sec. 2851)                                                  
        779                                                                     

      Reexamination of land conveyance, Lowry Air Force Base, Colorado     
   (sec. 2852)                                                             
        780                                                                     

   Water rights conveyance, Andersen Air Force Base, Guam (sec. 2853)      

        780                                                                     

      Conveyance of segment of Loring Petroleum Pipeline, Maine, and       
   related easements (sec. 2854)                                           
        780                                                                     

      Land conveyance, petroleum terminal serving former Loring Air Force  
   Base and Bangor Air National Guard Base, Maine (sec. 2855)              
        781                                                                     

      Land conveyances, certain former Minuteman III ICBM facilities in    
   North Dakota (sec. 2856)                                                
        781                                                                     

   Land conveyances, Charleston Air Force Base, South Carolina (sec. 2857) 

        782                                                                     

      Transfer of jurisdiction, Mukilteo Tank Farm, Everett, Washington    
   (sec. 2858)                                                             
        782                                                                     

   Subtitle E--Other Matters                                               

        782                                                                     

   Management of the Presidio of San Francisco (sec. 2861)                 

        782                                                                     

      Transfer of jurisdiction for development of Air Force morale,        
   welfare, and recreation facility, Park City, Utah (sec. 2862)           
        782                                                                     

      Alternative site for United States Air Force Memorial, preservation  
   of open space on Arlington Ridge Tract, and related land transfer at    
   Arlington National Cemetery, Virginia (sec. 2863)                       
        783                                                                     

      Establishment of memorial to victims of terrorist attack on Pentagon 
   Reservation and authority to accept monetary contributions for memorial 
   and repair of Pentagon (sec. 2864)                                      
        785                                                                     

      Repeal of limitation on cost of renovation of Pentagon Reservation   
   (sec. 2865)                                                             
        785                                                                     

      Development of United States Army Heritage and Education Center at   
   Carlisle Barracks, Pennsylvania (sec. 2866)                             
        785                                                                     

      Effect of limitation on construction of roads or highways, Marine    
   Corps Base, Camp Pendleton, California (sec. 2867)                      
        786                                                                     

      Establishment of World War II Memorial at additional location on Guam
   (sec. 2868)                                                             
        786                                                                     

      Demonstration project for purchase of fire, security, police, public 
   works, and utility services from local government agencies (sec. 2869)  
        786                                                                     

      Report on future land needs of United States Military Academy, New   
   York, and adjacent community (sec. 2870)                                
        787                                                                     

      Naming of Patricia C. Lamar Army National Guard Readiness Center,    
   Oxford, Mississippi (sec. 2871)                                         
        787                                                                     

          Legislative Provisions Not Adopted                            

        787                                                                     

      Authority available for lease of property and facilities under       
   alternative authority for acquisition and improvement of military       
   housing                                                                 
        787                                                                     

   Land conveyance, Defense Fuel Support Point, Lynn Haven, Florida        

        787                                                                     

      Payment for certain services provided by redevelopment authorities   
   for property leased back by the United States                           
        788                                                                     

   Treatment of amounts received                                           

        788                                                                     

    Title XXIX--Fort Irwin Military Land Withdrawal                        

        788                                                                     

   Short title (sec. 2901)                                                 

        788                                                                     

      Withdrawal and reservation of lands for National Training Center     
   (sec. 2902)                                                             
        789                                                                     

   Map and legal description (sec. 2903)                                   

        789                                                                     

   Management of withdrawn and reserved lands (sec. 2904)                  

        789                                                                     

   Water rights (sec. 2905)                                                

        789                                                                     


      Environmental compliance and environmental response requirements     
   (sec. 2906)                                                             
        789                                                                     

   West Mojave Coordinated Management Plan (sec. 2907)                     

        790                                                                     

   Release of wilderness study areas (sec. 2908)                           

        790                                                                     

   Training activity separation from utility corridors (sec. 2909)         

        790                                                                     

   Duration of withdrawal and reservation (sec. 2910)                      

        790                                                                     

   Extension of initial withdrawal and reservation (sec. 2911)             

        790                                                                     

   Termination and relinquishment (sec. 2912)                              

        790                                                                     

   Delegation of Authority (sec. 2913)                                     

        791                                                                     

       Title XXX--Realignment and Closure of Military Installations and    
   Preparation of Infrastructure Plan for the Nuclear Weapons Complex      
        791                                                                     

   Procedures for the Department of Defense (secs. 3001 3007)              

        792                                                                     

      Preparation of infrastructure plan for the nuclear weapons complex   
   (sec. 3008)                                                             
        793                                                                     

      DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
   OTHER AUTHORIZATIONS                                                    
        794                                                                     

           Title XXXI--Department of Energy National Security Programs  

        794                                                                     

   Overview                                                                

        794                                                                     

          Legislative Provisions Adopted                                

        812                                                                     

   Subtitle A--National Security Programs Authorizations                   

        812                                                                     

   National Nuclear Security Administration (sec. 3101)                    

        812                                                                     

   Defense environmental restoration and waste management (sec. 3102)      

        812                                                                     

   Other defense activities (sec. 3103)                                    

        813                                                                     

   Defense environmental management privatization (sec. 3104)              

        813                                                                     

   Defense nuclear waste disposal (sec. 3105)                              

        813                                                                     

   Subtitle B--Recurring General Provisions                                

        814                                                                     

   Reprogramming (sec. 3121)                                               

        814                                                                     

   Limits on minor construction projects (sec. 3122)                       

        814                                                                     

   Limits on construction projects (sec. 3123)                             

        814                                                                     

   Fund transfer authority (sec. 3124)                                     

        815                                                                     

   Authority for conceptual and construction design (sec. 3125)            

        815                                                                     

      Authority for emergency planning, design, and construction activities
   (sec. 3126)                                                             
        815                                                                     

      Funds available for all national security programs of the Department 
   of Energy (sec. 3127)                                                   
        815                                                                     

   Availability of funds (sec. 3128)                                       

        816                                                                     

   Transfer of defense environmental management funds (sec. 3129)          

        816                                                                     

   Transfer of weapons activities funds (sec. 3130)                        

        816                                                                     

   Subtitle C--Program Authorizations, Restrictions, and Limitations       

        816                                                                     

      Consolidation of Nuclear Cities Initiative program with Initiatives  
   for Proliferation Prevention program (sec. 3131)                        
        816                                                                     

   Nuclear Cities Initiative (sec. 3132)                                   

        817                                                                     

      Limitation on availability of funds for weapons activities for       
   facilities and infrastructure (sec. 3133)                               
        817                                                                     

      Limitation on availability of funds for other defense activities for 
   national security programs administrative support (sec. 3134)           
        818                                                                     

      Termination date of Office of River Protection, Richland, Washington 
   (sec. 3135)                                                             
        818                                                                     

      Support for public education in the vicinity of Los Alamos National  
   Laboratory, New Mexico (sec. 3136)                                      
        818                                                                     

      Reports on achievement of milestones for National Ignition Facility  
   (sec. 3137)                                                             
        819                                                                     

      Subtitle D--Matters Relating to Management of the National Nuclear   
   Security Administration                                                 
        819                                                                     

      Establishment of Principal Deputy Administrator of National Nuclear  
   Security Administration (sec. 3141)                                     
        819                                                                     

      Elimination of requirement that national security laboratories and   
   nuclear weapons production facilities report to Deputy Administrator for
   Defense Programs (sec. 3142)                                            
        820                                                                     

      Repeal of duplicative provision relating to dual office holding by   
   personnel of National Nuclear Security Administration (sec. 3143)       
        820                                                                     

      Report on adequacy of federal pay and hiring authorities to meet     
   personnel requirements of National Nuclear Security Administration (sec.
   3144)                                                                   
        820                                                                     

   Subtitle E--Other Matters                                               

        820                                                                     

      Improvements to energy employees occupational illness compensation   
   program (sec. 3151)                                                     
        820                                                                     

   Department of Energy counterintelligence polygraph program (sec. 3152)  

        823                                                                     

      One-year extension of authority of Department of Energy to pay       
   voluntary separation incentive payments (sec. 3153)                     
        823                                                                     

      Annual assessment and report on vulnerability of Department of Energy
   facilities to terrorist attack (sec. 3154)                              
        823                                                                     

      Disposition of surplus defense plutonium at Savannah River Site,     
   Aiken, South Carolina (sec. 3155)                                       
        823                                                                     


      Modification of date of report of Panel to Assess the Reliability,   
   Safety, and Security of the United States Nuclear Stockpile (sec. 3156) 
        824                                                                     

   Subtitle F--Rocky Flats National Wildlife Refuge                        

        824                                                                     

   Rocky Flats National Wildlife Refuge (sec. 3171 3182)                   

        824                                                                     

          Legislative Provisions Not Adopted                            

        826                                                                     

      Additional objective for Department of Energy defense nuclear        
   facility workforce restructuring plan                                   
        826                                                                     

      Clarification of status within the Department of Energy of           
   Administration and contractor personnel of the National Nuclear Security
   Administration                                                          
        826                                                                     

   Construction of Department of Energy operations office complex          

        826                                                                     

   Improvements to Corral Hollow Road, Livermore, California               

        827                                                                     

   Increased amount for nonproliferation and verification                  

        827                                                                     

    Title XXXII--Defense Nuclear Facilities Safety Board                   

        827                                                                     

          Legislative Provisions Adopted                                

        827                                                                     

   Authorization (sec. 3201)                                               

        827                                                                     

    Title XXXIII--National Defense Stockpile                               

        827                                                                     

          Legislative Provisions Adopted                                

        827                                                                     

   Definitions (sec. 3301)                                                 

        827                                                                     

   Authorized uses of stockpile funds (sec. 3302)                          

        827                                                                     

      Authority to dispose of certain materials in National Defense        
   Stockpile (sec. 3303)                                                   
        828                                                                     

      Revision of limitations on required disposals of certain materials in
   National Defense Stockpile (sec. 3304)                                  
        828                                                                     

      Acceleration of required disposal of cobalt in National Defense      
   Stockpile (sec. 3305)                                                   
        828                                                                     

   Restriction on disposal of mangenese ferro (sec. 3306)                  

        828                                                                     

    Title XXXIV--Naval Petroleum Reserves                                  

        828                                                                     

          Legislative Provisions Adopted                                

        828                                                                     

   Authorization of appropriations (sec. 3401)                             

        828                                                                     

    Title XXXV--Maritime Administration                                    

        829                                                                     

          Legislative Provisions Adopted                                

        829                                                                     

   Authorization of appropriations for fiscal year 2002 (sec. 3501)        

        829                                                                     

      Define ``war risks'' to vessels to include confiscation,             
   expropriation, nationalization, and deprivation of the vessels (sec.    
   3502)                                                                   
        829                                                                     

      Holding obligor's cash as collateral under title XI Merchant Marine  
   act, 1936 (sec. 3503)                                                   
        829                                                                     


107 th Congress                                                         

Report                                                                  

                                                                            

                                                                             

HOUSE OF REPRESENTATIVES                                                

1st Session                                                             

107 333                                                                 

                                                                        



       NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002                 



                                                                         

 December  12, 2001.--Ordered to be printed                              

                                                                         

 Mr.  Stump , from the committee of conference, submitted the following  

 CONFERENCE REPORT                                                       

 [To accompany S. 1438]                                                  


     The committee of conference on the disagreeing votes of the two      
  Houses on the amendment of the House to the bill (S. 1438), to authorize
  appropriations for fiscal year 2002 for military activities of the      
  Department of Defense, for military construction, and for defense       
  activities of the Department of Energy, to prescribe personnel strengths
  for such fiscal year for the Armed Forces, 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 Senate recede from its disagreement to the amendment of the 
  House and agree to the same with an amendment as follows:               
     In lieu of the matter proposed to be inserted by the House amendment,
  insert the following:                                                   

          SECTION 1. SHORT TITLE.                                                 

     This Act may be cited as the ``National Defense Authorization Act for
  Fiscal Year 2002''.                                                     
          SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.          

     (a) Divisions.--This Act is organized into three divisions as        
  follows:                                                                
     (1) Division A--Department of Defense Authorizations.                 

     (2) Division B--Military Construction Authorizations.                 

       (3) Division C--Department of Energy National Security              
   Authorizations and Other Authorizations.                                
     (b) Table of Contents.--The table of contents for this Act is as     
  follows:                                                                


      Sec. 1. Short title.                                                    

      Sec. 2. Organization of Act into divisions; table of contents.          

      Sec. 3. Congressional defense committees defined.                       


                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            


                                    TITLE I--PROCUREMENT                          

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 101. Army.                                                         

      Sec. 102. Navy and Marine Corps.                                        

      Sec. 103. Air Force.                                                    

      Sec. 104. Defense-wide activities.                                      

      Sec. 105. Defense Inspector General.                                    

      Sec. 106. Chemical Agents and Munitions Destruction, Defense.           

      Sec. 107. Defense Health Program.                                       

                                  SUBTITLE B--ARMY PROGRAMS                       

      Sec. 111. Repeal of limitations on bunker defeat munitions program.     

            Sec. 112. Extension of pilot program on sales of manufactured     
      articles and services of certain Army industrial facilities without     
      regard to availability from domestic sources.                           
            Sec. 113. Limitations on acquisition of interim armored vehicles  
      and deployment of interim brigade combat teams.                         
                                  SUBTITLE C--NAVY PROGRAMS                       

      Sec. 121. Virginia class submarine program.                             

            Sec. 122. Multiyear procurement authority for F/A 18E/F aircraft  
      engines.                                                                
      Sec. 123. V 22 Osprey aircraft program.                                 

            Sec. 124. Report on status of V 22 Osprey aircraft before         
      resumption of flight testing.                                           
                               SUBTITLE D--AIR FORCE PROGRAMS                     

      Sec. 131. Multiyear procurement authority for C 17 aircraft.            

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

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 201. Authorization of appropriations.                              

      Sec. 202. Amount for basic and applied research.                        

            Sec. 203. Supplemental authorization of appropriations for fiscal 
      year 2001 for research, development, test, and evaluation, Defense-wide.
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

      Sec. 211. Naval surface fire support assessment.                        

            Sec. 212. Collaborative program for development of advanced radar 
      systems.                                                                
            Sec. 213. Repeal of limitations on total cost of engineering and  
      manufacturing development for F 22 aircraft program.                    
      Sec. 214. Joint biological defense program.                             

            Sec. 215. Cooperative Department of Defense-Department of Veterans
      Affairs medical research program.                                       
      Sec. 216. C 5 aircraft reliability enhancement and reengining program.  

                            SUBTITLE C--BALLISTIC MISSILE DEFENSE                 

            Sec. 231. Transfer of responsibility for procurement for missile  
      defense programs from Ballistic Missile Defense Organization to military
      departments.                                                            
      Sec. 232. Program elements for Ballistic Missile Defense Organization.  

            Sec. 233. Support of ballistic missile defense activities of the  
      Department of Defense by the national defense laboratories of the       
      Department of Energy.                                                   
      Sec. 234. Missile defense testing initiative.                           

            Sec. 235. Construction of test bed facilities for missile defense 
      system.                                                                 
              SUBTITLE D--AIR FORCE SCIENCE AND TECHNOLOGY FOR THE 21ST CENTURY   

      Sec. 251. Short title.                                                  

      Sec. 252. Science and technology investment and development planning.   

            Sec. 253. Study and report on effectiveness of Air Force science  
      and technology program changes.                                         
                                  SUBTITLE E--OTHER MATTERS                       

            Sec. 261. Establishment of unmanned aerial vehicle joint          
      operational test bed system.                                            
            Sec. 262. Demonstration project to increase small business and    
      university participation in Office of Naval Research efforts to extend  
      benefits of science and technology research to fleet.                   
            Sec. 263. Communication of safety concerns from operational test  
      and evaluation officials to program managers.                           
                            TITLE III--OPERATION AND MAINTENANCE                  

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 301. Operation and maintenance funding.                            

      Sec. 302. Working capital funds.                                        

      Sec. 303. Armed Forces Retirement Home.                                 

      Sec. 304. Transfer from National Defense Stockpile Transaction Fund.    


            Sec. 305. Funds for renovation of Department of Veterans Affairs  
      facilities adjacent to Naval Training Center, Great Lakes, Illinois.    
            Sec. 306. Defense Language Institute Foreign Language Center      
      expanded Arabic language program.                                       
                            SUBTITLE B--ENVIRONMENTAL PROVISIONS                  

            Sec. 311. Inventory of unexploded ordnance, discarded military    
      munitions, and munitions constituents at defense sites (other than      
      operational ranges).                                                    
            Sec. 312. Establishment of new program element for remediation of 
      unexploded ordnance, discarded military munitions, and munitions        
      constituents.                                                           
            Sec. 313. Assessment of environmental remediation of unexploded   
      ordnance, discarded military munitions, and munitions constituents.     
            Sec. 314. Conformity of surety authority under environmental      
      restoration program with surety authority under CERCLA.                 
            Sec. 315. Elimination of annual report on contractor reimbursement
      for costs of environmental response actions.                            
            Sec. 316. Pilot program for sale of air pollution emission        
      reduction incentives.                                                   
      Sec. 317. Department of Defense energy efficiency program.              

            Sec. 318. Procurement of alternative fueled and hybrid light duty 
      trucks.                                                                 
            Sec. 319. Reimbursement of Environmental Protection Agency for    
      certain response costs in connection with Hooper Sands Site, South      
      Berwick, Maine.                                                         
      Sec. 320. River mitigation studies.                                     

             SUBTITLE C--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  

      Sec. 331. Commissary benefits for new members of the Ready Reserve.     

            Sec. 332. Reimbursement for use of commissary facilities by       
      military departments for purposes other than commissary sales.          
            Sec. 333. Public releases of commercially valuable information of 
      commissary stores.                                                      
            Sec. 334. Rebate agreements with producers of foods provided under
      special supplemental food program.                                      
            Sec. 335. Civil recovery for nonappropriated fund instrumentality 
      costs related to shoplifting.                                           
                           SUBTITLE D--WORKFORCE AND DEPOT ISSUES                 

            Sec. 341. Revision of authority to waive limitation on performance
      of depot-level maintenance.                                             
            Sec. 342. Exclusion of certain expenditures from limitation on    
      private sector performance of depot-level maintenance.                  
            Sec. 343. Protections for purchasers of articles and services     
      manufactured or performed by working-capital funded industrial          
      facilities of the Department of Defense.                                
            Sec. 344. Revision of deadline for annual report on commercial and
      industrial activities.                                                  
      Sec. 345. Pilot manpower reporting system in Department of the Army.    

            Sec. 346. Development of Army workload and performance system and 
      Wholesale Logistics Modernization Program.                              
                          SUBTITLE E--DEFENSE DEPENDENTS EDUCATION                

            Sec. 351. Assistance to local educational agencies that benefit   
      dependents of members of the Armed Forces and Department of Defense     
      civilian employees.                                                     
      Sec. 352. Impact aid for children with severe disabilities.             

            Sec. 353. Availability of auxiliary services of defense           
      dependents' education system for dependents who are home school         
      students.                                                               
            Sec. 354. Comptroller General study of adequacy of compensation   
      provided for teachers in the Department of Defense overseas dependents' 
      schools.                                                                
                                  SUBTITLE F--OTHER MATTERS                       

            Sec. 361. Availability of excess defense personal property to     
      support Department of Veterans Affairs initiative to assist homeless    
      veterans.                                                               
            Sec. 362. Incremental implementation of Navy-Marine Corps Intranet
      contract.                                                               
            Sec. 363. Comptroller General study and report of National Guard  
      Distributive Training Technology Project.                               
      Sec. 364. Reauthorization of warranty claims recovery pilot program.    

            Sec. 365. Evaluation of current demonstration programs to improve 
      quality of personal property shipments of members.                      
            Sec. 366. Sense of Congress regarding security to be provided at  
      2002 Winter Olympic Games.                                              
                         TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS              

                                  SUBTITLE A--ACTIVE FORCES                       

      Sec. 401. End strengths for active forces.                              

      Sec. 402. Revision in permanent end strength minimum levels.            

            Sec. 403. Increase in senior enlisted active duty grade limit for 
      Navy, Marine Corps, and Air Force.                                      
                                 SUBTITLE B--RESERVE FORCES                       

      Sec. 411. End strengths for Selected Reserve.                           

            Sec. 412. End strengths for Reserves on active duty in support of 
      the reserves.                                                           
      Sec. 413. End strengths for military technicians (dual status).         

      Sec. 414. Fiscal year 2002 limitation on non-dual status technicians.   

            Sec. 415. Limitations on numbers of reserve personnel serving on  
      active duty or full-time National Guard duty in certain grades for      
      administration of reserve components.                                   
                  SUBTITLE C--OTHER MATTERS RELATING TO PERSONNEL STRENGTHS       

      Sec. 421. Administration of end strengths.                              

            Sec. 422. Active duty end strength exemption for National Guard   
      and reserve personnel performing funeral honors functions.              
                         SUBTITLE D--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 431. Authorization of appropriations for military personnel.       

                             TITLE V--MILITARY PERSONNEL POLICY                   

                            SUBTITLE A--OFFICER PERSONNEL POLICY                  

            Sec. 501. Enhanced flexibility for management of senior general   
      and flag officer positions.                                             
            Sec. 502. Certifications of satisfactory performance for          
      retirement of officers in grades above major general and rear admiral.  
      Sec. 503. Review of actions of selection boards.                        

            Sec. 504. Temporary reduction of time-in-grade requirement for    
      eligibility for promotion for certain active-duty list officers in      
      grades of first lieutenant and lieutenant (junior grade).               
            Sec. 505. Authority for promotion without selection board         
      consideration for all fully qualified officers in grade of first        
      lieutenant or lieutenant (junior grade) in the Navy.                    
            Sec. 506. Authority to adjust date of rank of certain promotions  
      delayed by reason of unusual circumstances.                             
            Sec. 507. Authority for limited extension of medical deferment of 
      mandatory retirement or separation.                                     
            Sec. 508. Authority for limited extension on active duty of       
      members subject to mandatory retirement or separation.                  
            Sec. 509. Exemption from certain administrative limitations for   
      retired officers ordered to active duty as defense or service attache   
      AE1s.                                                                   
      Sec. 510. Officer in charge of United States Navy Band.                 

                       SUBTITLE B--RESERVE COMPONENT PERSONNEL POLICY             

            Sec. 511. Placement on active-duty list of certain Reserve        
      officers on active duty for a period of three years or less.            
            Sec. 512. Exception to baccalaureate degree requirement for       
      appointment of Reserve officers to grades above first lieutenant.       
            Sec. 513. Improved disability benefits for certain reserve        
      component members.                                                      
            Sec. 514. Time-in-grade requirement for reserve component officers
      retired with a nonservice-connected disability.                         
            Sec. 515. Equal treatment of Reserves and full-time active duty   
      members for purposes of managing personnel deployments.                 
            Sec. 516. Modification of physical examination requirements for   
      members of the Individual Ready Reserve.                                
            Sec. 517. Retirement of Reserve members without requirement for   
      formal application or request.                                          
      Sec. 518. Space-required travel by Reserves on military aircraft.       

            Sec. 519. Payment of Federal Employee Health Benefit Program      
      premiums for certain Reservists called to active duty in support of     
      contingency operations.                                                 
            SUBTITLE C--JOINT SPECIALTY OFFICERS AND JOINT PROFESSIONAL MILITARY  
                                    EDUCATION                                     
      Sec. 521. Nominations and promotions for joint specialty officers.      

      Sec. 522. Joint duty credit.                                            

            Sec. 523. Retroactive joint service credit for duty in certain    
      joint task forces.                                                      
      Sec. 524. Revision to annual report on joint officer management.        

            Sec. 525. Requirement for selection for joint specialty before    
      promotion to general or flag officer grade.                             
            Sec. 526. Independent study of joint officer management and joint 
      professional military education reforms.                                
      Sec. 527. Professional development education.                           

            Sec. 528. Authority for National Defense University to enroll     
      certain private sector civilians.                                       
            Sec. 529. Continuation of reserve component professional military 
      education test.                                                         
                         SUBTITLE D--MILITARY EDUCATION AND TRAINING              

      Sec. 531. Defense Language Institute Foreign Language Center.           

            Sec. 532. Authority for the Marine Corps University to award      
      degree of master of strategic studies.                                  
      Sec. 533. Foreign students attending the service academies.             


            Sec. 534. Increase in maximum age for appointment as a cadet or   
      midshipman in Senior Reserve Officers' Training Corps scholarship       
      programs.                                                               
            Sec. 535. Participation of regular enlisted members of the Armed  
      Forces in Senior Reserve Officers' Training Corps program.              
            Sec. 536. Authority to modify the service obligation of certain   
      ROTC cadets in military junior colleges receiving financial assistance. 
            Sec. 537. Repeal of limitation on number of Junior Reserve        
      Officers' Training Corps units.                                         
            Sec. 538. Modification of nurse officer candidate accession       
      program restriction on students attending educational institutions with 
      senior reserve officers' training programs.                             
      Sec. 539. Reserve health professionals stipend program expansion.       

            Sec. 540. Housing allowance for the chaplain for the Corps of     
      Cadets at the United States Military Academy.                           
                        SUBTITLE E--RECRUITING AND ACCESSION PROGRAMS             

      Sec. 541. 18-month enlistment pilot program.                            

      Sec. 542. Improved benefits under the Army College First program.       

            Sec. 543. Correction and extension of certain Army recruiting     
      pilot program authorities.                                              
      Sec. 544. Military recruiter access to secondary school students.       

            Sec. 545. Permanent authority for use of military recruiting funds
      for certain expenses at Department of Defense recruiting functions.     
            Sec. 546. Report on health and disability benefits for            
      pre-accession training and education programs.                          
                 SUBTITLE F--DECORATIONS, AWARDS, AND POSTHUMOUS COMMISSIONS      

            Sec. 551. Authority for award of the Medal of Honor to Humbert R. 
      Versace, Jon E. Swanson, and Ben L. Salomon for valor.                  
            Sec. 552. Review regarding award of Medal of Honor to certain     
      Jewish American and Hispanic American war veterans.                     
            Sec. 553. Authority to issue duplicate Medals of Honor and to     
      replace stolen military decorations.                                    
      Sec. 554. Retroactive Medal of Honor special pension.                   

            Sec. 555. Waiver of time limitations for award of certain         
      decorations to certain persons.                                         
      Sec. 556. Sense of Congress on issuance of certain medals.              

            Sec. 557. Sense of Congress on development of a more              
      comprehensive, uniform policy for the award of decorations to military  
      and civilian personnel of the Department of Defense.                    
            Sec. 558. Posthumous Army commission in the grade of captain in   
      the Chaplains Corps to Ella E. Gibson for service as chaplain of the    
      First Wisconsin Heavy Artillery Regiment during the Civil War.          
                               SUBTITLE G--FUNERAL HONORS DUTY                    

      Sec. 561. Participation of military retirees in funeral honors details. 

            Sec. 562. Funeral honors duty performed by Reserve and Guard      
      members to be treated as inactive-duty training for certain purposes.   
            Sec. 563. Use of military leave for funeral honors duty by Reserve
      members and National Guardsmen.                                         
            Sec. 564. Authority to provide appropriate articles of clothing as
      a civilian uniform for civilians participating in funeral honor details.
                       SUBTITLE H--MILITARY SPOUSES AND FAMILY MEMBERS            

            Sec. 571. Improved financial and other assistance to military     
      spouses for job training and education.                                 
            Sec. 572. Persons authorized to be included in surveys of military
      families regarding Federal programs.                                    
            Sec. 573. Clarification of treatment of classified information    
      concerning persons in a missing status.                                 
            Sec. 574. Transportation to annual meeting of next-of-kin of      
      persons unaccounted for from conflicts after World War II.              
            Sec. 575. Amendments to charter of Defense Task Force on Domestic 
      Violence.                                                               
                  SUBTITLE I--MILITARY JUSTICE AND LEGAL ASSISTANCE MATTERS       

            Sec. 581. Blood alcohol content limit for the offense under the   
      Uniform Code of Military Justice of drunken operation of a vehicle,     
      aircraft, or vessel.                                                    
            Sec. 582. Requirement that courts-martial consist of not less than
      12 members in capital cases.                                            
            Sec. 583. Acceptance of voluntary legal assistance for the civil  
      affairs of members and former members of the uniformed services and     
      their dependents.                                                       
                                  SUBTITLE J--OTHER MATTERS                       

            Sec. 591. Congressional review period for change in ground combat 
      exclusion policy.                                                       
      Sec. 592. Per diem allowance for lengthy or numerous deployments.       

      Sec. 593. Clarification of disability severance pay computation.        

            Sec. 594. Transportation or storage of privately owned vehicles on
      change of permanent station.                                            
            Sec. 595. Repeal of requirement for final Comptroller General     
      report relating to Army end strength allocations.                       
            Sec. 596. Continued Department of Defense administration of       
      National Guard Challenge program and Department of Defense Starbase     
      program.                                                                
            Sec. 597. Report on Defense Science Board recommendation on       
      original appointments in regular grades for Academy graduates and       
      certain other new officers.                                             
            Sec. 598. Sense of Congress regarding the selection of officers   
      for recommendation for appointment as Commander, United States          
      Transportation Command.                                                 
                     TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS          

                               SUBTITLE A--PAY AND ALLOWANCES                     

      Sec. 601. Increase in basic pay for fiscal year 2002.                   

            Sec. 602. Basic pay rate for certain reserve commissioned officers
      with prior service as an enlisted member or warrant officer.            
            Sec. 603. Reserve component compensation for distributed learning 
      activities performed as inactive-duty training.                         
      Sec. 604. Subsistence allowances.                                       

            Sec. 605. Eligibility for temporary housing allowance while in    
      travel or leave status between permanent duty stations.                 
      Sec. 606. Uniform allowance for officers.                               

            Sec. 607. Family separation allowance for members electing        
      unaccompanied tour by reason of health limitations of dependents.       
                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           

            Sec. 611. One-year extension of certain bonus and special pay     
      authorities for reserve forces.                                         
            Sec. 612. One-year extension of certain bonus and special pay     
      authorities for nurse officer candidates, registered nurses, and nurse  
      anesthetists.                                                           
            Sec. 613. One-year extension of special pay and bonus authorities 
      for nuclear officers.                                                   
      Sec. 614. One-year extension of other bonus and special pay authorities.

            Sec. 615. Hazardous duty pay for members of maritime visit, board,
      search, and seizure teams.                                              
            Sec. 616. Eligibility for certain career continuation bonuses for 
      early commitment to remain on active duty.                              
            Sec. 617. Secretarial discretion in prescribing submarine duty    
      incentive pay rates.                                                    
            Sec. 618. Conforming accession bonus for dental officers authority
      with authorities for other special pay and bonuses.                     
            Sec. 619. Modification of eligibility requirements for Individual 
      Ready Reserve bonus for reenlistment, enlistment, or extension of       
      enlistment.                                                             
      Sec. 620. Installment payment authority for 15-year career status bonus.

      Sec. 621. Accession bonus for new officers in critical skills.          

            Sec. 622. Education savings plan to encourage reenlistments and   
      extensions of service in critical specialties.                          
            Sec. 623. Continuation of payment of special and incentive pay at 
      unreduced rates during stop loss periods.                               
            Sec. 624. Retroactive authorization for imminent danger pay for   
      service in connection with Operation Enduring Freedom.                  
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            

            Sec. 631. Minimum per diem rate for travel and transportation     
      allowance for travel performed upon a change of permanent station and   
      certain other travel.                                                   
            Sec. 632. Eligibility for payment of subsistence expenses         
      associated with occupancy of temporary lodging incident to reporting to 
      first permanent duty station.                                           
            Sec. 633. Reimbursement of members for mandatory pet quarantine   
      fees for household pets.                                                
            Sec. 634. Increased weight allowance for transportation of baggage
      and household effects for junior enlisted members.                      
      Sec. 635. Eligibility of additional members for dislocation allowance.  

            Sec. 636. Partial dislocation allowance authorized for housing    
      moves ordered for Government convenience.                               
            Sec. 637. Allowances for travel performed in connection with      
      members taking authorized leave between consecutive overseas tours.     
            Sec. 638. Travel and transportation allowances for family members 
      to attend burial of a deceased member of the uniformed services.        
            Sec. 639. Funded student travel for foreign study under an        
      education program approved by a United States school.                   
                     SUBTITLE D--RETIREMENT AND SURVIVOR BENEFIT MATTERS          

            Sec. 641. Contingent authority for concurrent receipt of military 
      retired pay and veterans' disability compensation and enhancement of    
      special compensation authority.                                         
            Sec. 642. Survivor Benefit Plan annuities for surviving spouses of
      members who die while on active duty and not eligible for retirement.   

                                  SUBTITLE E--OTHER MATTERS                       

            Sec. 651. Payment for unused leave in excess of 60 days accrued by
      members of reserve components on active duty for one year or less.      
            Sec. 652. Additional authority to provide assistance for families 
      of members of the Armed Forces.                                         
            Sec. 653. Authorization of transitional compensation and          
      commissary and exchange benefits for dependents of commissioned officers
      of the Public Health Service and the National Oceanic and Atmospheric   
      Administration who are separated for dependent abuse.                   
            Sec. 654. Transfer of entitlement to educational assistance under 
      Montgomery GI Bill by members of the Armed Forces with critical military
      skills.                                                                 
                              TITLE VII--HEALTH CARE PROVISIONS                   

                          SUBTITLE A--TRICARE PROGRAM IMPROVEMENTS                

      Sec. 701. Sub-acute and long-term care program reform.                  

      Sec. 702. Prosthetics and hearing aids.                                 

      Sec. 703. Durable medical equipment.                                    

      Sec. 704. Rehabilitative therapy.                                       

      Sec. 705. Report on mental health benefits.                             

            Sec. 706. Clarification of eligibility for reimbursement of travel
      expenses of adult accompanying patient in travel for specialty care.    
            Sec. 707. TRICARE program limitations on payment rates for        
      institutional health care providers and on balance billing by           
      institutional and noninstitutional health care providers.               
      Sec. 708. Improvements in administration of the TRICARE program.        

                               SUBTITLE B--SENIOR HEALTH CARE                     

            Sec. 711. Clarifications and improvements regarding the Department
      of Defense Medicare-Eligible Retiree Health Care Fund.                  
                               SUBTITLE C--STUDIES AND REPORTS                    

            Sec. 721. Comptroller General study of health care coverage of    
      members of the reserve components of the Armed Forces and the National  
      Guard.                                                                  
            Sec. 722. Comptroller General study of adequacy and quality of    
      health care provided to women under the defense health program.         
      Sec. 723. Repeal of obsolete report requirement.                        

            Sec. 724. Comptroller General report on requirement to provide    
      screenings, physical examinations, and other care for certain members.  
                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 731. Prohibition against requiring military retirees to      
      receive health care solely through the Department of Defense.           
      Sec. 732. Fees for trauma and other medical care provided to civilians. 

      Sec. 733. Enhancement of medical product development.                   

            Sec. 734. Pilot program providing for Department of Veterans      
      Affairs support in the performance of separation physical examinations. 
            Sec. 735. Modification of prohibition on requirement of           
      nonavailability statement or preauthorization.                          
            Sec. 736. Transitional health care for members separated from     
      active duty.                                                            
            Sec. 737. Two-year extension of health care management            
      demonstration program.                                                  
            Sec. 738. Joint DoD-VA pilot program for providing graduate       
      medical education and training for physicians.                          
            TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED   
                                     MATTERS                                      
                    SUBTITLE A--PROCUREMENT MANAGEMENT AND ADMINISTRATION         

      Sec. 801. Management of procurement of services.                        

      Sec. 802. Savings goals for procurements of services.                   

            Sec. 803. Competition requirement for purchase of services        
      pursuant to multiple award contracts.                                   
            Sec. 804. Reports on maturity of technology at initiation of major
      defense acquisition programs.                                           
                            SUBTITLE B--USE OF PREFERRED SOURCES                  

            Sec. 811. Applicability of competition requirements to purchases  
      from a required source.                                                 
      Sec. 812. Extension of mentor-protege program.                          

            Sec. 813. Increase of assistance limitation regarding procurement 
      technical assistance program.                                           
           SUBTITLE C--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                               AND RELATED MATTERS                                
            Sec. 821. Amendments to conform with administrative changes in    
      acquisition phase and milestone terminology and to make related         
      adjustments in certain requirements applicable at milestone transition  
      points.                                                                 
            Sec. 822. Follow-on production contracts for products developed   
      pursuant to prototype projects.                                         
            Sec. 823. One-year extension of program applying simplified       
      procedures to certain commercial items.                                 
      Sec. 824. Acquisition workforce qualifications.                         

            Sec. 825. Report on implementation of recommendations of the      
      acquisition 2005 task force.                                            
                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 831. Identification of errors made by executive agencies in  
      payments to contractors and recovery of amounts erroneously paid.       
            Sec. 832. Codification and modification of provision of law known 
      as the ``Berry amendment''.                                             
            Sec. 833. Personal services contracts to be performed by          
      individuals or organizations abroad.                                    
      Sec. 834. Requirements regarding insensitive munitions.                 

            Sec. 835. Inapplicability of limitation to small purchases of     
      miniature or instrument ball or roller bearings under certain           
      circumstances.                                                          
            Sec. 836. Temporary emergency procurement authority to facilitate 
      the defense against terrorism or biological or chemical attack.         
                 TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT      

             SUBTITLE A--DUTIES AND FUNCTIONS OF DEPARTMENT OF DEFENSE OFFICERS   

      Sec. 901. Deputy Under Secretary of Defense for Personnel and Readiness.

            Sec. 902. Sense of Congress on functions of new Office of Force   
      Transformation in the Office of the Secretary of Defense.               
            Sec. 903. Suspension of reorganization of engineering and         
      technical authority policy within the Naval Sea Systems Command pending 
      report to congressional committees.                                     
                                SUBTITLE B--SPACE ACTIVITIES                      

      Sec. 911. Joint management of space programs.                           

            Sec. 912. Requirement to establish in the Air Force an officer    
      career field for space.                                                 
      Sec. 913. Secretary of Defense report on space activities.              

            Sec. 914. Comptroller General assessment of implementation of     
      recommendations of Space Commission.                                    
            Sec. 915. Sense of Congress regarding officers recommended to be  
      appointed to serve as Commander of United States Space Command.         
                                     SUBTITLE C--REPORTS                          

            Sec. 921. Revised requirement for Chairman of the Joint Chiefs of 
      Staff to advise Secretary of Defense on the assignment of roles and     
      missions to the Armed Forces.                                           
            Sec. 922. Revised requirements for content of annual report on    
      joint warfighting experimentation.                                      
            Sec. 923. Repeal of requirement for one of three remaining        
      required reports on activities of Joint Requirements Oversight Council. 
            Sec. 924. Revised joint report on establishment of national       
      collaborative information analysis capability.                          
                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 931. Conforming amendments relating to change of name of     
      Military Airlift Command to Air Mobility Command.                       
            Sec. 932. Organizational realignment for Navy Director for        
      Expeditionary Warfare.                                                  
                                 TITLE X--GENERAL PROVISIONS                      

                                SUBTITLE A--FINANCIAL MATTERS                     

      Sec. 1001. Transfer authority.                                          

      Sec. 1002. Incorporation of classified annex.                           

            Sec. 1003. Authorization of supplemental appropriations for fiscal
      year 2001.                                                              
            Sec. 1004. United States contribution to NATO common-funded       
      budgets in fiscal year 2002.                                            
            Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
      operations for fiscal year 2002.                                        
      Sec. 1006. Maximum amount for National Foreign Intelligence Program.    

            Sec. 1007. Clarification of applicability of interest penalties   
      for late payment of interim payments due under contracts for services.  
      Sec. 1008. Reliability of Department of Defense financial statements.   

            Sec. 1009. Financial Management Modernization Executive Committee 
      and financial feeder systems compliance process.                        
            Sec. 1010. Authorization of funds for ballistic missile defense   
      programs or combating terrorism programs of the Department of Defense.  
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                

            Sec. 1011. Authority to transfer naval vessels to certain foreign 
      countries.                                                              
      Sec. 1012. Sale of Glomar Explorer to the lessee.                       

            Sec. 1013. Leasing of Navy ships for university national          
      oceanographic laboratory system.                                        
            Sec. 1014. Increase in limitations on administrative authority of 
      the Navy to settle admiralty claims.                                    
                             SUBTITLE C--COUNTER-DRUG ACTIVITIES                  

            Sec. 1021. Extension and restatement of authority to provide      
      Department of Defense support for counter-drug activities of other      
      governmental agencies.                                                  

            Sec. 1022. Extension of reporting requirement regarding Department
      of Defense expenditures to support foreign counter-drug activities.     
            Sec. 1023. Authority to transfer Tracker aircraft currently used  
      by Armed Forces for counter-drug purposes.                              
            Sec. 1024. Limitation on use of funds for operation of Tethered   
      Aerostat Radar System pending submission of required report.            
                                SUBTITLE D--STRATEGIC FORCES                      

            Sec. 1031. Repeal of limitation on retirement or dismantlement of 
      strategic nuclear delivery systems.                                     
      Sec. 1032. Air Force bomber force structure.                            

      Sec. 1033. Additional element for revised nuclear posture review.       

            Sec. 1034. Report on options for modernization and enhancement of 
      missile wing helicopter support.                                        
                     SUBTITLE E--OTHER DEPARTMENT OF DEFENSE PROVISIONS           

            Sec. 1041. Secretary of Defense recommendation on need for        
      Department of Defense review of proposed Federal agency actions to      
      consider possible impact on national defense.                           
            Sec. 1042. Department of Defense reports to Congress to be        
      accompanied by electronic version upon request.                         
      Sec. 1043. Department of Defense gift authorities.                      

            Sec. 1044. Acceleration of research, development, and production  
      of medical countermeasures for defense against biological warfare       
      agents.                                                                 
            Sec. 1045. Chemical and biological protective equipment for       
      military personnel and civilian employees of the Department of Defense. 
            Sec. 1046. Sale of goods and services by Naval Magazine, Indian   
      Island, Alaska.                                                         
            Sec. 1047. Report on procedures and guidelines for embarkation of 
      civilian guests on naval vessels for public affairs purposes.           
      Sec. 1048. Technical and clerical amendments.                           

            Sec. 1049. Termination of referendum requirement regarding        
      continuation of military training on island of Vieques, Puerto Rico, and
      imposition of additional conditions on closure of live-fire training    
      range.                                                                  
                                  SUBTITLE F--OTHER MATTERS                       

      Sec. 1061. Assistance for firefighters.                                 

            Sec. 1062. Extension of times for Commission on the Future of the 
      United States Aerospace industry to report and to terminate.            
      Sec. 1063. Appropriations to Radiation Exposure Compensation Trust Fund.

            Sec. 1064. Waiver of vehicle weight limits during periods of      
      national emergency.                                                     
            Sec. 1065. Repair, restoration, and preservation of Lafayette     
      Escadrille Memorial, Marnes-la-Coquette, France.                        
                            TITLE XI--CIVILIAN PERSONNEL MATTERS                  

                    SUBTITLE A--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL          

            Sec. 1101. Personnel pay and qualifications authority for         
      Department of Defense Pentagon Reservation civilian law enforcement and 
      security force.                                                         
      Sec. 1102. Pilot program for payment of retraining expenses.            

      Sec. 1103. Authority of civilian employees to act as notaries.          

            Sec. 1104. Authority to appoint certain health care professionals 
      in the excepted service.                                                
                     SUBTITLE B--CIVILIAN PERSONNEL MANAGEMENT GENERALLY          

      Sec. 1111. Authority to provide hostile fire pay.                       

      Sec. 1112. Payment of expenses to obtain professional credentials.      

            Sec. 1113. Parity in establishment of wage schedules and rates for
      prevailing rate employees.                                              
      Sec. 1114. Modification of limitation on premium pay.                   

            Sec. 1115. Participation of personnel in technical standards      
      development activities.                                                 
      Sec. 1116. Retention of travel promotional items.                       

            Sec. 1117. Applicability of certain laws to certain individuals   
      assigned to work in the Federal Government.                             
                         SUBTITLE C--INTELLIGENCE CIVILIAN PERSONNEL              

            Sec. 1121. Authority to increase maximum number of positions in   
      the Defense Intelligence Senior Executive Service.                      
                         SUBTITLE D--MATTERS RELATING TO RETIREMENT               

            Sec. 1131. Improved portability of retirement coverage for        
      employees moving between civil service employment and employment by     
      nonappropriated fund instrumentalities.                                 
            Sec. 1132. Federal employment retirement credit for               
      nonappropriated fund instrumentality service.                           
            Sec. 1133. Modification of limitations on exercise of voluntary   
      separation incentive pay authority and voluntary early retirement       
      authority.                                                              
                        TITLE XII--MATTERS RELATING TO OTHER NATIONS              

                 SUBTITLE A--MATTERS RELATED TO ARMS CONTROL AND MONITORING       

            Sec. 1201. Clarification of authority to furnish nuclear test     
      monitoring equipment to foreign governments.                            
            Sec. 1202. Limitation on funding for joint Data Exchange Center in
      Moscow.                                                                 
            Sec. 1203. Support of United Nations-sponsored efforts to inspect 
      and monitor Iraqi weapons activities.                                   
            Sec. 1204. Authority for employees of Federal Government          
      contractors to accompany chemical weapons inspection teams at           
      Government-owned facilities.                                            
            Sec. 1205. Plan for securing nuclear weapons, material, and       
      expertise of the states of the former Soviet Union.                     
             SUBTITLE B--MATTERS RELATING TO ALLIES AND FRIENDLY FOREIGN NATIONS  

      Sec. 1211. Acquisition of logistical support for security forces.       

            Sec. 1212. Extension of authority for international cooperative   
      research and development projects.                                      
            Sec. 1213. Cooperative agreements with foreign countries and      
      international organizations for reciprocal use of test facilities.      
      Sec. 1214. Sense of Congress on allied defense burdensharing.           

                                     SUBTITLE C--REPORTS                          

            Sec. 1221. Report on significant sales and transfers of military  
      hardware, expertise, and technology to the People's Republic of China.  
            Sec. 1222. Repeal of requirement for reporting to Congress on     
      military deployments to Haiti.                                          
            Sec. 1223. Report by Comptroller General on provision of defense  
      articles, services, and military education and training to foreign      
      countries and international organizations.                              
             TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER   
                                  SOVIET UNION                                    
            Sec. 1301. Specification of Cooperative Threat Reduction programs 
      and funds.                                                              
      Sec. 1302. Funding allocations.                                         

      Sec. 1303. Limitation on use of funds until submission of reports.      

            Sec. 1304. Requirement to consider use of revenue generated by    
      activities carried out under Cooperative Threat Reduction programs.     
            Sec. 1305. Prohibition against use of funds for second wing of    
      fissile material storage facility.                                      
            Sec. 1306. Prohibition against use of funds for certain           
      construction activities.                                                
            Sec. 1307. Reports on activities and assistance under Cooperative 
      Threat Reduction programs.                                              
      Sec. 1308. Chemical weapons destruction.                                

            Sec. 1309. Additional matter in annual report on activities and   
      assistance under Cooperative Threat Reduction programs.                 
                           TITLE XIV--ARMED FORCES RETIREMENT HOME                

      Sec. 1401. Amendment of Armed Forces Retirement Home Act of 1991.       

      Sec. 1402. Definitions.                                                 

            Sec. 1403. Revision of authority establishing the Armed Forces    
      Retirement Home.                                                        
      Sec. 1404. Chief Operating Officer.                                     

      Sec. 1405. Residents of Retirement Home.                                

      Sec. 1406. Local Boards of Trustees.                                    

            Sec. 1407. Directors, Deputy Directors, Associate Directors, and  
      staff of facilities.                                                    
            Sec. 1408. Disposition of effects of deceased persons and         
      unclaimed property.                                                     
      Sec. 1409. Transitional provisions.                                     

            Sec. 1410. Conforming and clerical amendments and repeals of      
      obsolete provisions.                                                    
                    TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM          

                    SUBTITLE A--INCREASED FUNDING FOR COMBATING TERRORISM         

      Sec. 1501. Definitions.                                                 

            Sec. 1502. Authorization of emergency appropriations for fiscal   
      year 2001 made by Public Law 107 38 and allocated for national defense  
      functions.                                                              
            Sec. 1503. Authorization of emergency supplemental appropriations 
      for fiscal year 2002.                                                   
            Sec. 1504. Authorization of use of funds for military construction
      projects.                                                               
      Sec. 1505. Treatment of transferred amounts.                            

      Sec. 1506. Quarterly reports.                                           

                 SUBTITLE B--POLICY MATTERS RELATING TO COMBATING TERRORISM       

            Sec. 1511. Study and report on the role of the Department of      
      Defense with respect to homeland security.                              
            Sec. 1512. Combating Terrorism Readiness Initiatives Fund for     
      combatant commands.                                                     
            Sec. 1513. Conveyances of equipment and related materials loaned  
      to State and local governments as assistance for emergency response to a
      use or threatened use of a weapon of mass destruction.                  

            Sec. 1514. Two-year extension of advisory panel to assess domestic
      response capabilities for terrorism involving weapons of mass           
      destruction.                                                            
                            TITLE XVI--UNIFORMED SERVICES VOTING                  

      Sec. 1601. Sense of Congress regarding the importance of voting.        

      Sec. 1602. Voting assistance programs.                                  

      Sec. 1603. Guarantee of residency for military personnel.               

      Sec. 1604. Electronic voting demonstration project.                     

            Sec. 1605. Governors' reports on implementation of recommendations
      for changes in State law made under Federal Voting Assistance Program.  
            Sec. 1606. Simplification of voter registration and absentee      
      ballot application procedures for absent uniformed services and overseas
      voters.                                                                 
            Sec. 1607. Use of certain Department of Defense facilities as     
      polling places.                                                         
                      DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS            


      Sec. 2001. Short title; definition.                                     

                                       TITLE XXI--ARMY                            

      Sec. 2101. Authorized Army construction and land acquisition projects.  

      Sec. 2102. Family housing.                                              

      Sec. 2103. Improvements to military family housing units.               

      Sec. 2104. Authorization of appropriations, Army.                       

            Sec. 2105. Modification of authority to carry out certain fiscal  
      year 2001 projects.                                                     
            Sec. 2106. Modification of authority to carry out certain fiscal  
      year 2000 projects.                                                     
                                      TITLE XXII--NAVY                            

      Sec. 2201. Authorized Navy construction and land acquisition projects.  

      Sec. 2202. Family housing.                                              

      Sec. 2203. Improvements to military family housing units.               

      Sec. 2204. Authorization of appropriations, Navy.                       

            Sec. 2205. Modification of authority to carry out certain fiscal  
      year 2001 projects.                                                     
            Sec. 2206. Modification of authority to carry out certain fiscal  
      year 2000 project.                                                      
                                   TITLE XXIII--AIR FORCE                         

            Sec. 2301. Authorized Air Force construction and land acquisition 
      projects.                                                               
      Sec. 2302. Family housing.                                              

      Sec. 2303. Improvements to military family housing units.               

      Sec. 2304. Authorization of appropriations, Air Force.                  

            Sec. 2305. Modification of authority to carry out certain fiscal  
      year 2001 projects.                                                     
                                TITLE XXIV--DEFENSE AGENCIES                      

            Sec. 2401. Authorized Defense Agencies construction and land      
      acquisition projects.                                                   
      Sec. 2402. Energy conservation projects.                                

      Sec. 2403. Authorization of appropriations, Defense Agencies.           

            Sec. 2404. Cancellation of authority to carry out certain fiscal  
      year 2001 projects.                                                     
            Sec. 2405. Modification of authority to carry out certain fiscal  
      year 2000 projects.                                                     
            Sec. 2406. Modification of authority to carry out certain fiscal  
      year 1999 project.                                                      
            Sec. 2407. Modification of authority to carry out certain fiscal  
      year 1995 project.                                                      
            Sec. 2408. Prohibition on expenditures to develop forward         
      operating location on Aruba.                                            
             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    
                                     PROGRAM                                      
      Sec. 2501. Authorized NATO construction and land acquisition projects.  

      Sec. 2502. Authorization of appropriations, NATO.                       

                          TITLE XXVI--GUARD AND RESERVE FACILITIES                

            Sec. 2601. Authorized guard and reserve construction and land     
      acquisition projects.                                                   
                   TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS        

            Sec. 2701. Expiration of authorizations and amounts required to be
      specified by law.                                                       
            Sec. 2702. Extension of authorizations of certain fiscal year 1999
      projects.                                                               
            Sec. 2703. Extension of authorizations of certain fiscal year 1998
      projects.                                                               
      Sec. 2704. Effective date.                                              

                              TITLE XXVIII--GENERAL PROVISIONS                    

           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
            Sec. 2801. Increase in thresholds for certain unspecified minor   
      military construction projects.                                         
            Sec. 2802. Exclusion of unforeseen environmental hazard           
      remediation from limitation on authorized cost variations.              
            Sec. 2803. Repeal of annual reporting requirement on military     
      construction and military family housing activities.                    
            Sec. 2804. Funds for housing allowances of members assigned to    
      military family housing under alternative authority for acquisition and 
      improvement of military housing.                                        
            Sec. 2805. Extension of alternative authority for acquisition and 
      improvement of military housing.                                        
            Sec. 2806. Treatment of financing costs as allowable expenses     
      under contracts for utility services from utility systems conveyed under
      privatization initiative.                                               
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        

            Sec. 2811. Use of military installations for certain recreational 
      activities.                                                             
            Sec. 2812. Availability of proceeds of sales of Department of     
      Defense property from certain closed military installations.            
            Sec. 2813. Pilot program to provide additional tools for efficient
      operation of military installations.                                    
            Sec. 2814. Demonstration program on reduction in long-term        
      facility maintenance costs.                                             
      Sec. 2815. Base efficiency project at Brooks Air Force Base, Texas.     

           SUBTITLE C--IMPLEMENTATION OF PRIOR BASE CLOSURE AND REALIGNMENT ROUNDS

      Sec. 2821. Lease back of base closure property.                         

                                SUBTITLE D--LAND CONVEYANCES                      

                                  PART I--ARMY CONVEYANCES                        

            Sec. 2831. Land conveyance, Whittier-Anchorage Pipeline Tank Farm,
      Anchorage, Alaska.                                                      
      Sec. 2832. Lease authority, Fort Derussy, Hawaii.                       

      Sec. 2833. Modification of land exchange, Rock Island Arsenal, Illinois.

      Sec. 2834. Land conveyance, Fort Des Moines, Iowa.                      

      Sec. 2835. Modification of land conveyances, Fort Dix, New Jersey.      

            Sec. 2836. Land conveyance, Engineer Proving Ground, Fort Belvoir,
      Virginia.                                                               
      Sec. 2837. Land exchange and consolidation, Fort Lewis, Washington.     

      Sec. 2838. Land conveyance, Army Reserve Center, Kewaunee, Wisconsin.   

                                 PART II--NAVY CONVEYANCES                        

            Sec. 2841. Transfer of jurisdiction, Centerville Beach Naval      
      Station, Humboldt County, California.                                   
      Sec. 2842. Land conveyance, Port of Long Beach, California.             

      Sec. 2843. Conveyance of pier, Naval Base, San Diego, California.       

            Sec. 2844. Modification of authority for conveyance of Naval      
      Computer and Telecommunications Station, Cutler, Maine.                 
            Sec. 2845. Land transfer and conveyance, Naval Security Group     
      Activity, Winter Harbor, Maine.                                         
      Sec. 2846. Land acquisition, Perquimans County, North Carolina.         

            Sec. 2847. Land conveyance, Naval Weapons Industrial Reserve      
      Plant, Toledo, Ohio.                                                    
            Sec. 2848. Modification of land conveyance, former United States  
      Marine Corps Air Station, Eagle Mountain Lake, Texas.                   
                              PART III--AIR FORCE CONVEYANCES                     

            Sec. 2851. Conveyance of avigation easements, former Norton Air   
      Force Base, California.                                                 
            Sec. 2852. Reexamination of land conveyance, Lowry Air Force Base,
      Colorado.                                                               
      Sec. 2853. Water rights conveyance, Andersen Air Force Base, Guam.      

            Sec. 2854. Conveyance of segment of Loring petroleum pipeline,    
      Maine, and related easements.                                           
            Sec. 2855. Land conveyance, petroleum terminal serving former     
      Loring Air Force Base and Bangor Air National Guard Base, Maine.        
            Sec. 2856. Land conveyances, certain former Minuteman III ICBM    
      facilities in North Dakota.                                             
      Sec. 2857. Land conveyances, Charleston Air Force Base, South Carolina. 

            Sec. 2858. Transfer of jurisdiction, Mukilteo Tank Farm, Everett, 
      Washington.                                                             
                                  SUBTITLE E--OTHER MATTERS                       

      Sec. 2861. Management of the Presidio of San Francisco.                 

            Sec. 2862. Transfer of jurisdiction for development of Air Force  
      morale, welfare, and recreation facility, Park City, Utah.              
            Sec. 2863. Alternate site for United States Air Force Memorial,   
      preservation of open space on Arlington Ridge tract, and related land   
      transfer at Arlington National Cemetery, Virginia.                      

            Sec. 2864. Establishment of memorial to victims of terrorist      
      attack on Pentagon Reservation and authority to accept monetary         
      contributions for memorial and repair of Pentagon.                      
            Sec. 2865. Repeal of limitation on cost of renovation of Pentagon 
      Reservation.                                                            
            Sec. 2866. Development of United States Army Heritage and         
      Education Center at Carlisle Barracks, Pennsylvania.                    
            Sec. 2867. Effect of limitation on construction of roads or       
      highways, Marine Corps Base, Camp Pendleton, California.                
            Sec. 2868. Establishment of World War II memorial at additional   
      location on Guam.                                                       
            Sec. 2869. Demonstration project for purchase of fire, security,  
      police, public works, and utility services from local government        
      agencies.                                                               
            Sec. 2870. Report on future land needs of United States Military  
      Academy, New York, and adjacent community.                              
            Sec. 2871. Naming of Patricia C. Lamar Army National Guard        
      Readiness Center, Oxford, Mississippi.                                  
                       TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL            

      Sec. 2901. Short title.                                                 

            Sec. 2902. Withdrawal and reservation of lands for National       
      Training Center.                                                        
      Sec. 2903. Map and legal description.                                   

      Sec. 2904. Management of withdrawn and reserved lands.                  

      Sec. 2905. Water rights.                                                

            Sec. 2906. Environmental compliance and environmental response    
      requirements.                                                           
      Sec. 2907. West Mojave Coordinated Management Plan.                     

      Sec. 2908. Release of wilderness study areas.                           

      Sec. 2909. Training activity separation from utility corridors.         

      Sec. 2910. Duration of withdrawal and reservation.                      

      Sec. 2911. Extension of initial withdrawal and reservation.             

      Sec. 2912. Termination and relinquishment.                              

      Sec. 2913. Delegation of authority.                                     

              TITLE XXX--REALIGNMENT AND CLOSURE OF MILITARY INSTALLATIONS AND    
       PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS COMPLEX         
            Sec. 3001. Authorization of round of realignments and closures of 
      military installations in 2005.                                         
      Sec. 3002. Selection criteria.                                          

            Sec. 3003. Revised procedures for making recommendations for      
      realignments and closures and commission consideration of               
      recommendations.                                                        
      Sec. 3004. Limitations on privatization in place.                       

      Sec. 3005. Department of Defense Base Closure Account 2005.             

      Sec. 3006. Implementation of closure and realignment decisions.         

      Sec. 3007. Technical and clarifying amendments.                         

            Sec. 3008. Preparation of infrastructure plan for the nuclear     
      weapons complex.                                                        

           DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND  
                              OTHER AUTHORIZATIONS                                

                 TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS      

                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         

      Sec. 3101. National Nuclear Security Administration.                    

      Sec. 3102. Defense environmental restoration and waste management.      

      Sec. 3103. Other defense activities.                                    

      Sec. 3104. Defense environmental management privatization.              

      Sec. 3105. Defense nuclear waste disposal.                              

                          SUBTITLE B--RECURRING GENERAL PROVISIONS                

      Sec. 3121. Reprogramming.                                               

      Sec. 3122. Limits on minor construction projects.                       

      Sec. 3123. Limits on construction projects.                             

      Sec. 3124. Fund transfer authority.                                     

      Sec. 3125. Authority for conceptual and construction design.            

            Sec. 3126. Authority for emergency planning, design, and          
      construction activities.                                                
            Sec. 3127. Funds available for all national security programs of  
      the Department of Energy.                                               
      Sec. 3128. Availability of funds.                                       

      Sec. 3129. Transfer of defense environmental management funds.          

      Sec. 3130. Transfer of weapons activities funds.                        

              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   

            Sec. 3131. Consolidation of Nuclear Cities Initiative program with
      Initiatives for Proliferation Prevention program.                       
      Sec. 3132. Nuclear Cities Initiative.                                   

            Sec. 3133. Limitation on availability of funds for weapons        
      activities for facilities and infrastructure.                           
            Sec. 3134. Limitation on availability of funds for other defense  
      activities for national security programs administrative support.       
            Sec. 3135. Termination date of Office of River Protection,        
      Richland, Washington.                                                   
            Sec. 3136. Support for public education in the vicinity of Los    
      Alamos National Laboratory, New Mexico.                                 
            Sec. 3137. Reports on achievement of milestones for National      
      Ignition Facility.                                                      
             SUBTITLE D--MATTERS RELATING TO MANAGEMENT OF THE NATIONAL NUCLEAR   
                             SECURITY ADMINISTRATION                              
            Sec. 3141. Establishment of Principal Deputy Administrator of     
      National Nuclear Security Administration.                               
            Sec. 3142. Elimination of requirement that national security      
      laboratories and nuclear weapons production facilities report to Deputy 
      Administrator for Defense Programs.                                     
            Sec. 3143. Repeal of duplicative provision relating to dual office
      holding by personnel of National Nuclear Security Administration.       
            Sec. 3144. Report on adequacy of Federal pay and hiring           
      authorities to meet personnel requirements of National Nuclear Security 
      Administration.                                                         
                                  SUBTITLE E--OTHER MATTERS                       

            Sec. 3151. Improvements to Energy Employees Occupational Illness  
      Compensation Program.                                                   
      Sec. 3152. Department of Energy counterintelligence polygraph program.  

            Sec. 3153. One-year extension of authority of Department of Energy
      to pay voluntary separation incentive payments.                         
            Sec. 3154. Annual assessment and report on vulnerability of       
      Department of Energy facilities to terrorist attack.                    
            Sec. 3155. Disposition of surplus defense plutonium at Savannah   
      River Site, Aiken, South Carolina.                                      
            Sec. 3156. Modification of date of report of panel to assess the  
      reliability, safety, and security of the United States nuclear          
      stockpile.                                                              
                      SUBTITLE F--ROCKY FLATS NATIONAL WILDLIFE REFUGE            

      Sec. 3171. Short title.                                                 

      Sec. 3172. Findings and purposes.                                       

      Sec. 3173. Definitions.                                                 

      Sec. 3174. Future ownership and management.                             

            Sec. 3175. Transfer of management responsibilities and            
      jurisdiction over Rocky Flats.                                          
            Sec. 3176. Administration of retained property; continuation of   
      cleanup and closure.                                                    
      Sec. 3177. Rocky Flats National Wildlife Refuge.                        

      Sec. 3178. Comprehensive planning process.                              

      Sec. 3179. Property rights.                                             

      Sec. 3180. Liabilities and other obligations.                           

      Sec. 3181. Rocky Flats Museum.                                          

      Sec. 3182. Annual report on funding.                                    

                    TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD          

      Sec. 3201. Authorization.                                               

                          TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                

      Sec. 3301. Definitions.                                                 

      Sec. 3302. Authorized uses of stockpile funds.                          

            Sec. 3303. Authority to dispose of certain materials in National  
      Defense Stockpile.                                                      
            Sec. 3304. Revision of limitations on required disposals of       
      certain materials in National Defense Stockpile.                        
            Sec. 3305. Acceleration of required disposal of cobalt in National
      Defense Stockpile.                                                      
      Sec. 3306. Restriction on disposal of manganese ferro.                  

                            TITLE XXXIV--NAVAL PETROLEUM RESERVES                 

      Sec. 3401. Authorization of appropriations.                             

                             TITLE XXXV--MARITIME ADMINISTRATION                  

      Sec. 3501. Authorization of appropriations for fiscal year 2002.        

            Sec. 3502. Define ``war risks'' to vessels to include             
      confiscation, expropriation, nationalization, and deprivation of the    
      vessels.                                                                
            Sec. 3503. Holding obligor's cash as collateral under title XI of 
      Merchant Marine Act, 1936.                                              

          SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.                       

     For purposes of this Act, the term ``congressional defense           
  committees'' means--                                                    
       (1) the Committee on Armed Services and the Committee on            
   Appropriations of the Senate; and                                       
       (2) the Committee on Armed Services and the Committee on            
   Appropriations of the House of Representatives.                         

           DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS                        

           TITLE I--PROCUREMENT                                                    


                                                                              

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 101. Army.                                                         

      Sec. 102. Navy and Marine Corps.                                        

      Sec. 103. Air Force.                                                    

      Sec. 104. Defense-wide activities.                                      

      Sec. 105. Defense Inspector General.                                    

      Sec. 106. Chemical Agents and Munitions Destruction, Defense.           

      Sec. 107. Defense Health Program.                                       

                                  SUBTITLE B--ARMY PROGRAMS                       

      Sec. 111. Repeal of limitations on bunker defeat munitions program.     

            Sec. 112. Extension of pilot program on sales of manufactured     
      articles and services of certain Army industrial facilities without     
      regard to availability from domestic sources.                           
            Sec. 113. Limitations on acquisition of interim armored vehicles  
      and deployment of interim brigade combat teams.                         
                                  SUBTITLE C--NAVY PROGRAMS                       

      Sec. 121. Virginia class submarine program.                             

            Sec. 122. Multiyear procurement authority for F/A 18E/F aircraft  
      engines.                                                                
      Sec. 123. V 22 Osprey aircraft program.                                 

            Sec. 124. Report on status of V 22 Osprey aircraft before         
      resumption of flight testing.                                           
                               SUBTITLE D--AIR FORCE PROGRAMS                     

      Sec. 131. Multiyear procurement authority for C 17 aircraft.            


           Subtitle A--Authorization of Appropriations                             

          SEC. 101. ARMY.                                                         

     Funds are hereby authorized to be appropriated for fiscal year 2002  
  for procurement for the Army as follows:                                
     (1) For aircraft, $2,075,372,000.                                     

     (2) For missiles, $1,086,954,000.                                     

     (3) For weapons and tracked combat vehicles, $2,348,145,000.          

     (4) For ammunition, $1,187,233,000.                                   

     (5) For other procurement, $4,044,080,000.                            

          SEC. 102. NAVY AND MARINE CORPS.                                        

     (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
  year 2002 for procurement for the Navy as follows:                      
     (1) For aircraft, $8,323,147,000.                                     

     (2) For weapons, including missiles and torpedoes, $1,484,321,000.    

     (3) For shipbuilding and conversion, $9,370,972,000.                  

     (4) For other procurement, $4,282,471,000.                            

     (b) Marine Corps.--Funds are hereby authorized to be appropriated for
  fiscal year 2002 for procurement for the Marine Corps in the amount of  
  $1,014,637,000.                                                         
     (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized to
  be appropriated for fiscal year 2002 for procurement of ammunition for  
  the Navy and the Marine Corps in the amount of $466,907,000.            
          SEC. 103. AIR FORCE.                                                    

     Funds are hereby authorized to be appropriated for fiscal year 2002  
  for procurement for the Air Force as follows:                           
     (1) For aircraft, $10,789,167,000.                                    

     (2) For missiles, $3,222,636,000.                                     

     (3) For ammunition, $881,844,000.                                     

     (4) For other procurement, $8,196,021,000.                            

          SEC. 104. DEFENSE-WIDE ACTIVITIES.                                      

     Funds are hereby authorized to be appropriated for fiscal year 2002  
  for Defense-wide procurement in the amount of $2,279,482,000.           
          SEC. 105. DEFENSE INSPECTOR GENERAL.                                    

     Funds are hereby authorized to be appropriated for fiscal year 2002  
  for procurement for the Inspector General of the Department of Defense  
  in the amount of $2,800,000.                                            
          SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.           

     There is hereby authorized to be appropriated for fiscal year 2002   
  for the Department of Defense for Chemical Agents and Munitions         
  Destruction, Defense, the amount of $1,153,557,000 for--                
       (1) the destruction of lethal chemical agents and munitions in      
   accordance with section 1412 of the Department of Defense Authorization 
   Act, 1986 (50 U.S.C. 1521); and                                         
       (2) the destruction of chemical warfare materiel of the United      
   States that is not covered by section 1412 of such Act.                 

          SEC. 107. DEFENSE HEALTH PROGRAM.                                       

     Funds are hereby authorized to be appropriated for fiscal year 2002  
  for the Department of Defense for procurement for carrying out health   
  care programs, projects, and activities of the Department of Defense in 
  the total amount of $267,915,000.                                       
           Subtitle B--Army Programs                                               

          SEC. 111. REPEAL OF LIMITATIONS ON BUNKER DEFEAT MUNITIONS PROGRAM.     

     Section 116 of the National Defense Authorization Act for Fiscal Year
  1995 (Public Law 103 337; 108 Stat. 2682) is repealed.                  

                    SEC. 112. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED 
          ARTICLES AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT     
          REGARD TO AVAILABILITY FROM DOMESTIC SOURCES.                           
     Section 141(a) of the National Defense Authorization Act for Fiscal  
  Year 1998 (Public Law 105 85; 10 U.S.C. 4543 note) is amended--         
     (1) by striking ``through 2001'' and inserting ``through 2002''; and  

       (2) by inserting before the period at the end the following: ``,    
   except that during fiscal year 2002 the Secretary may only use articles 
   manufactured at, and services provided by, not more than one Army       
   industrial facility''.                                                  

                    SEC. 113. LIMITATIONS ON ACQUISITION OF INTERIM ARMORED       
          VEHICLES AND DEPLOYMENT OF INTERIM BRIGADE COMBAT TEAMS.                
     Section 113 of the Floyd D. Spence National Defense Authorization Act
  for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114    
  Stat. 1654A 23) is amended--                                            
     (1) by redesignating subsection (f) as subsection (j); and            

     (2) by inserting after subsection (e) the following new subsections:  

     ``(f) Waiver of Comparison Requirement.--The Secretary of Defense may
  waive subsections (c) and (e)(1) and submit to the congressional defense
  committees a certification under subsection (e)(2) without regard to the
  requirement in that subsection for the completion of a comparison of    
  costs and operational effectiveness if the Secretary includes in the    
  submittal a certification of each of the following:                     
       ``(1) That the results of executed tests and existing analyses are  
   sufficient for making a meaningful comparison of the costs and          
   operational effectiveness of the interim armored vehicles referred to in
   subparagraph (A) of subsection (c)(1) and the medium armored vehicles   
   referred to in subparagraph (B) of such subsection.                     
       ``(2) That the conduct of a comparative evaluation of those vehicles
   in a realistic field environment would provide no significant additional
   data relevant to that comparison.                                       
       ``(3) That the Secretary has evaluated the existing data on cost and
   operational effectiveness of those vehicles and, taking that data into  
   consideration, approves the obligation of funds for the acquisition of  
   additional interim armored vehicles.                                    
       ``(4) That sufficient resources will be requested in the            
   future-years defense program to fully fund the Army's requirements for  
   interim brigade combat teams.                                           
       ``(5) That the force structure resulting from the establishment of  
   the interim brigade combat teams and the subsequent achievement of      
   operational capability by those teams will not diminish the combat power
   of the Army.                                                            
     ``(g) Experimentation Program.--The Secretary of the Army shall      
  develop and provide resources for an experimentation program that will--
     ``(1) provide information as to the design of the objective force; and

       ``(2) include a formal linkage of the interim brigade combat teams  
   to that experimentation.                                                

     ``(h) Operational Evaluation.--(1) The Secretary of the Army shall   
  conduct an operational evaluation of the initial interim brigade combat 
  team. The evaluation shall include deployment of the team to the        
  evaluation site and team execution of combat missions across the full   
  spectrum of potential threats and operational scenarios.                
     ``(2) The operational evaluation under paragraph (1) may not be      
  conducted until the plan for such evaluation is approved by the Director
  of Operational Test and Evaluation of the Department of Defense.        
     ``(i) Limitation on Procurement of Interim Armored Vehicles and      
  Deployment of IBCTs.--(1) The actions described in paragraph (2) may not
  be taken until the date that is 30 days after the date on which the     
  Secretary of Defense--                                                  
       ``(A) submits to Congress a report on the operational evaluation    
   carried out under subsection (h); and                                   
       ``(B) certifies to Congress that the results of that operational    
   evaluation indicate that the design for the interim brigade combat team 
   is operationally effective and operationally suitable.                  
     ``(2) The limitation in paragraph (1) applies to the following       
  actions:                                                                
       ``(A) Procurement of interim armored vehicles in addition to those  
   necessary for equipping the first three interim brigade combat teams.   
       ``(B) Deployment of any interim brigade combat team outside the     
   United States.                                                          
     ``(3) The Secretary of Defense may waive the applicability of        
  paragraph (1) to a deployment described in paragraph (2)(B) if the      
  Secretary--                                                             
       ``(A) determines that the deployment is in the national security    
   interests of the United States; and                                     
       ``(B) submits to Congress, in writing, a notification of the waiver 
   together with a discussion of the reasons for the waiver.''.            
           Subtitle C--Navy Programs                                               


          SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.                             

     Section 123(b)(1) of the Floyd D. Spence National Defense            
  Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
  Law 106 398; 114 Stat. 1654A 25) is amended--                           
       (1) by striking ``five Virginia class submarines'' and inserting    
   ``seven Virginia class submarines''; and                                
     (2) by striking ``2006'' and inserting ``2007''.                      


                    SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR F/A 18E/F       
          AIRCRAFT ENGINES.                                                       
     (a) Multiyear Authority.--Beginning with the 2002 program year, the  
  Secretary of the Navy may, in accordance with section 2306b of title 10,
  United States Code, enter into a multiyear contract for the procurement 
  of engines for F/A 18E/F aircraft.                                      
     (b) Required Certifications.--In the case of a contract authorized by
  subsection (a) of this section, a certification under subsection        
  (i)(1)(A) of section 2306b of title 10, United States Code, with respect
  to that contract may only be submitted if the certification includes an 
  additional certification that each of the conditions specified in       
  subsection (a) of that section has been satisfied with respect to that  
  contract.                                                               
     (c) Congressional Notice-and-Wait Period.--Upon transmission to      
  Congress of a certification referred to in subsection (b) with respect  
  to a contract authorized by subsection (a), the contract may then be    
  entered into only after a period of 30 days has elapsed after the date  
  of the transmission of such certification.                              

          SEC. 123. V 22 OSPREY AIRCRAFT PROGRAM.                                 

     The production rate for V 22 Osprey aircraft may not be increased    
  above the minimum sustaining production rate for which funds are        
  authorized to be appropriated by this Act until the Secretary of Defense
  certifies to Congress that successful operational testing of the        
  aircraft demonstrates that--                                            
       (1) the solutions to the problems regarding the reliability of      
   hydraulic system components and flight control software that were       
   identified by the panel appointed by the Secretary of Defense on January
   5, 2001, to review the V 22 aircraft program are adequate to achieve low
   risk for crews and passengers aboard V 22 aircraft that are operating   
   under operational conditions;                                           
       (2) the V 22 aircraft can achieve reliability and maintainability   
   levels that are sufficient for the aircraft to achieve operational      
   availability at the level required for fleet aircraft;                  
     (3) the V 22 aircraft will be operationally effective--               

     (A) when employed in operations with other V 22 aircraft; and         

     (B) when employed in operations with other types of aircraft; and     

       (4) the V 22 aircraft can be operated effectively, taking into      
   consideration the downwash effects inherent in the operation of the     
   aircraft, when the aircraft--                                           
       (A) is operated in remote areas with unimproved terrain and         
   facilities;                                                             
     (B) is deploying and recovering personnel--                           

     (i) while hovering within the zone of ground effect; and              

     (ii) while hovering outside the zone of ground effect; and            

     (C) is operated with external loads.                                  


                    SEC. 124. REPORT ON STATUS OF V 22 OSPREY AIRCRAFT BEFORE     
          RESUMPTION OF FLIGHT TESTING.                                           
     Not later than 30 days before the resumption of flight testing of the
  V 22 Osprey aircraft, the Secretary of Defense shall submit to Congress 
  a report containing the following:                                      
       (1) A comprehensive description of the status of the hydraulics     
   system and flight control software of the V 22 Osprey aircraft,         
   including--                                                             
       (A) a description and analysis of any deficiencies in the hydraulics
   system and flight control software of the V 22 Osprey aircraft; and     
       (B) a description and assessment of the actions taken to redress    
   each such deficiency.                                                   
       (2) A description of the current actions, and any proposed actions, 
   of the Department of Defense to implement the recommendations of the    
   panel appointed by the Secretary of Defense on January 5, 2001, to      
   review the V 22 aircraft program.                                       
       (3) An assessment of the recommendations of the National Aeronautics
   and Space Administration on tiltrotor aeromechanics provided in a       
   briefing to the Undersecretary of Defense for Acquisition, Logistics,   
   and Technology on August 14, 2001.                                      
       (4) Notice of the waiver, if any, of any item capability or any     
   other requirement specified in the Joint Operational Requirements       
   Document for the V 22 Osprey aircraft, including a justification of each
   such waiver.                                                            

           Subtitle D--Air Force Programs                                          

          SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C 17 AIRCRAFT.            

     (a) Multiyear Authority.--Beginning with the 2002 program year, the  
  Secretary of the Air Force may enter into a multiyear contract for the  
  procurement of up to 60 C 17 aircraft. Such a contract shall be entered 
  into in accordance with section 2306b of title 10, United States Code,  
  except that, notwithstanding subsection (k) of such section, such a     
  contract may be for a period of six program years.                      
     (b) Required Certifications.--In the case of a contract authorized by
  subsection (a) of this section, a certification under subsection        
  (i)(1)(A) of section 2306b of title 10, United States Code, with respect
  to that contract may only be submitted if the certification includes an 
  additional certification that each of the conditions specified in       
  subsection (a) of that section has been satisfied with respect to that  
  contract.                                                               
     (c) Congressional Notice-and-Wait Period.--Upon transmission to      
  Congress of a certification referred to in subsection (b) with respect  
  to a contract authorized by subsection (a), the contract may then be    
  entered into only after a period of 30 days has elapsed after the date  
  of the transmission of such certification.                              

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


                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 201. Authorization of appropriations.                              

      Sec. 202. Amount for basic and applied research.                        

            Sec. 203. Supplemental authorization of appropriations for fiscal 
      year 2001 for research, development, test, and evaluation, Defense-wide.
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

      Sec. 211. Naval surface fire support assessment.                        

            Sec. 212. Collaborative program for development of advanced radar 
      systems.                                                                
            Sec. 213. Repeal of limitations on total cost of engineering and  
      manufacturing development for F 22 aircraft program.                    
      Sec. 214. Joint biological defense program.                             

            Sec. 215. Cooperative Department of Defense-Department of Veterans
      Affairs medical research program.                                       
      Sec. 216. C 5 aircraft reliability enhancement and reengining program.  

                            SUBTITLE C--BALLISTIC MISSILE DEFENSE                 

            Sec. 231. Transfer of responsibility for procurement for missile  
      defense programs from Ballistic Missile Defense Organization to military
      departments.                                                            
      Sec. 232. Program elements for Ballistic Missile Defense Organization.  

            Sec. 233. Support of ballistic missile defense activities of the  
      Department of Defense by the national defense laboratories of the       
      Department of Energy.                                                   
      Sec. 234. Missile defense testing initiative.                           

            Sec. 235. Construction of test bed facilities for missile defense 
      system.                                                                 
              SUBTITLE D--AIR FORCE SCIENCE AND TECHNOLOGY FOR THE 21ST CENTURY   

      Sec. 251. Short title.                                                  

      Sec. 252. Science and technology investment and development planning.   

            Sec. 253. Study and report on effectiveness of Air Force science  
      and technology program changes.                                         
                                  SUBTITLE E--OTHER MATTERS                       

            Sec. 261. Establishment of unmanned aerial vehicle joint          
      operational test bed system.                                            
            Sec. 262. Demonstration project to increase small business and    
      university participation in Office of Naval Research efforts to extend  
      benefits of science and technology research to fleet.                   
            Sec. 263. Communication of safety concerns from operational test  
      and evaluation officials to program managers.                           

           Subtitle A--Authorization of Appropriations                             

          SEC. 201. AUTHORIZATION OF APPROPRIATIONS.                              

     Funds are hereby authorized to be appropriated for fiscal year 2002  
  for the use of the Department of Defense for research, development,     
  test, and evaluation as follows:                                        
     (1) For the Army, $6,675,325,000.                                     

     (2) For the Navy, $10,784,264,000.                                    

     (3) For the Air Force, $14,407,187,000.                               

       (4) For Defense-wide activities, $14,593,995,000, of which          
   $221,355,000 is authorized for the Director of Operational Test and     
   Evaluation.                                                             
          SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.                        

     (a) Fiscal Year 2002.--Of the amounts authorized to be appropriated  
  by section 201, $5,070,605,000 shall be available for basic research and
  applied research projects.                                              
     (b) Basic Research and Applied Research Defined.--For purposes of    
  this section, the term ``basic research and applied research'' means    
  work funded in program elements for defense research and development    
  under Department of Defense category 6.1 or 6.2.                        
                    SEC. 203. SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS FOR    
          FISCAL YEAR 2001 FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION,       
          DEFENSE-WIDE.                                                           
     In addition to the funds authorized to be appropriated under section 
  201(4) of Floyd D. Spence National Defense Authorization Act for Fiscal 
  Year 2001 (as enacted into law by Public Law 106 398; 114 Stat. 1654A   
  32), there is hereby authorized to be appropriated $1,000,000 for fiscal
  year 2001 for the use of the Department of Defense for research,        
  development, test, and evaluation, for Defense-wide activities.         
           Subtitle B--Program Requirements, Restrictions, and Limitations         

          SEC. 211. NAVAL SURFACE FIRE SUPPORT ASSESSMENT.                        

     (a) Assessment Required.--The Secretary of Defense shall carry out an
  assessment of the requirements for naval surface fire support of ground 
  forces operating in the littoral environment, including the role of an  
  advanced fire support missile system for Navy combatant vessels. The    
  matters assessed shall include the Secretary of the Navy's program plan,
  schedule, and funding for meeting such requirements.                    
     (b) Report.--Not later than March 31, 2002, the Secretary of Defense 
  shall submit to the congressional defense committees a report containing
  the results of the assessment required by subsection (a).               
                    SEC. 212. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF ADVANCED   
          RADAR SYSTEMS.                                                          
     (a) Program Required.--The Secretary of Defense shall carry out a    
  program to develop and demonstrate advanced technologies and concepts   
  leading to advanced radar systems for naval and other applications.     
     (b) Description of Program.--The program under subsection (a) shall  
  be carried out collaboratively by the Director of Defense Research and  
  Engineering, the Secretary of the Navy, the Director of the Defense     
  Advanced Research Projects Agency, and other appropriate elements of the
  Department of Defense. The program shall include the following          
  activities:                                                             
       (1) Activities needed for development and maturation of the         
   technologies for advanced electronics materials to extend the range and 
   sensitivity of radars.                                                  
       (2) Identification of acquisition systems for use of the new        
   technology.                                                             
     (c) Report.--Not later than March 31, 2002, the Director of Defense  
  Research and Engineering shall submit to the congressional defense      
  committees a report on the implementation of the program under          
  subsection (a). The report shall include the following:                 
       (1) A description of the management plan for the program and any    
   agreements relating to that plan.                                       
     (2) A schedule for the program.                                       

       (3) Identification of the funding required for fiscal year 2003 and 
   for the future-years defense program to carry out the program.          
     (4) A list of program capability goals and objectives.                

                    SEC. 213. REPEAL OF LIMITATIONS ON TOTAL COST OF ENGINEERING  
          AND MANUFACTURING DEVELOPMENT FOR F 22 AIRCRAFT PROGRAM.                
    (a)  Repeal.--The following provisions of law are repealed:           

       (1) Section 217(a) of the National Defense Authorization Act for    
   Fiscal Year 1998 (Public Law 105 85; 111 Stat. 1660).                   
       (2) Section 8125 of the Department of Defense Appropriations Act,   
   2001 (Public Law 106 259; 114 Stat. 702).                               
       (3) Section 219(b) of the Floyd D. Spence National Defense          
   Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
   Law 106 398; 114 Stat. 1654A 38).                                       
     (b) Conforming Amendments.--(1) Section 217 of the National Defense  
  Authorization Act for Fiscal Year 1998 (Public Law 105 85; 111 Stat.    
  1660), as amended by subsection (a)(1), is further amended--            
     (A) in subsection (c)--                                               

       (i) by striking ``limitations set forth in subsections (a) and (b)''
   and inserting ``limitation set forth in subsection (b)''; and           
     (ii) by striking paragraph (3); and                                   

     (B) in subsection (d)(2), by striking subparagraphs (D) and (E).      

     (2) Section 131 of the National Defense Authorization Act for Fiscal 
  Year 2000 (Public Law 106 65; 113 Stat. 536) is amended--               
       (A) in subsection (a)(2), by striking ``That the'' and all that     
   follows through ``respectively,'' and inserting ``That the production   
   phase for that program can be executed within the limitation on total   
   cost applicable to that program under subsection (b)''; and             
       (B) in subsection (b)(3), by striking ``for the remainder of the    
   engineering and manufacturing development phase and''.                  
          SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.                             

     Section 217(a) of the Floyd D. Spence National Defense Authorization 
  Act for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114
  Stat. 1654A 36) is amended by striking ``funds authorized to be         
  appropriated by this Act may not'' and inserting ``no funds authorized  
  to be appropriated to the Department of Defense for fiscal year 2002    
  may''.                                                                  
                    SEC. 215. COOPERATIVE DEPARTMENT OF DEFENSE-DEPARTMENT OF     
          VETERANS AFFAIRS MEDICAL RESEARCH PROGRAM.                              
     Of the funds authorized to be appropriated by section 201(4),        
  $2,500,000 shall be available for the cooperative Department of         
  Defense/Department of Veterans Affairs medical research program. The    
  Secretary of Defense shall transfer such amount to the Secretary of     
  Veterans Affairs for such purpose not later than 30 days after the date 
  of the enactment of this Act.                                           
          SEC. 216. C 5 AIRCRAFT RELIABILITY ENHANCEMENT AND REENGINING PROGRAM.  

     (a) Kit Development.--The Secretary of the Air Force shall ensure    
  that engineering manufacturing and development under the C 5 aircraft   
  reliability enhancement and reengining program includes kit development 
  for at least one C 5A aircraft.                                         
     (b) Aircraft To Be Used for Kit Development.--The C 5A aircraft to be
  used for purposes of the kit development under subsection (a) shall be  
  an aircraft from among the 74 C 5A aircraft of the Air Force.           

           Subtitle C--Ballistic Missile Defense                                   


                    SEC. 231. TRANSFER OF RESPONSIBILITY FOR PROCUREMENT FOR      
          MISSILE DEFENSE PROGRAMS FROM BALLISTIC MISSILE DEFENSE ORGANIZATION TO 
          MILITARY DEPARTMENTS.                                                   
     (a) Budgeting of Missile Defense Procurement Authority.--Section 224 
  of title 10, United States Code is amended--                            

       (1) in subsection (a), by striking ``procurement'' both places it   
   appears and inserting ``research, development, test, and evaluation'';  
   and                                                                     
     (2) by striking subsections (b) and (c) and inserting the following:  

     ``(b) Transfer Criteria.--(1) The Secretary of Defense shall         
  establish criteria for the transfer of responsibility for a ballistic   
  missile defense program from the Director of the Ballistic Missile      
  Defense Organization to the Secretary of a military department. The     
  criteria established for such a transfer shall, at a minimum, address   
  the following:                                                          
     ``(A) The technical maturity of the program.                          

     ``(B) The availability of facilities for production.                  

       ``(C) The commitment of the Secretary of the military department    
   concerned to procurement funding for that program, as shown by funding  
   through the future-years defense program and other defense planning     
   documents.                                                              
     ``(2) The Secretary shall submit the criteria established, and any   
  modifications to those criteria, to the congressional defense           
  committees.                                                             
     ``(c) Notification of Transfer.--Before responsibility for a         
  ballistic missile defense program is transferred from the Director of   
  the Ballistic Missile Defense Organization to the Secretary of a        
  military department, the Secretary of Defense shall submit to the       
  congressional defense committees notice in writing of the Secretary's   
  intent to make that transfer. The Secretary shall include with such     
  notice a certification that the program has met the criteria established
  under subsection (b) for such a transfer. The transfer may then be      
  carried out after the end of the 60-day period beginning on the date of 
  such notice.                                                            
     ``(d) Conforming Budget and Planning Transfers.--When a ballistic    
  missile defense program is transferred from the Ballistic Missile       
  Defense Organization to the Secretary of a military department in       
  accordance with this section, the Secretary of Defense shall ensure that
  all appropriate conforming changes are made to proposed or projected    
  funding allocations in the future-years defense program under section   
  221 of this title and other Department of Defense program, budget, and  
  planning documents.                                                     
     ``(e) Follow-on Research, Development, Test, and Evaluation.--The    
  Secretary of Defense shall ensure that, before a ballistic missile      
  defense program is transferred from the Director of the Ballistic       
  Missile Defense Organization to the Secretary of a military department, 
  roles and responsibilities for research, development, test, and         
  evaluation related to system improvements for that program are clearly  
  defined.                                                                
     ``(f) Congressional Defense Committees.--In this section, the term   
  `congressional defense committees' means the following:                 
       ``(1) The Committee on Armed Services and the Committee on          
   Appropriations of the Senate.                                           
       ``(2) The Committee on Armed Services and the Committee on          
   Appropriations of the House of Representatives.''.                      
     (b) Clerical Amendments.--(1) The heading of that section is amended 
  to read as follows:                                                     
                    ``224. Ballistic missile defense programs: display of amounts 
          for research, development, test, and evaluation''.                      
     (2) The item relating to that section in the table of sections at the
  beginning of chapter 9 of such title is amended to read as follows:     


            ``224. Ballistic missile defense programs: display of amounts for 
      research, development, test, and evaluation.''.                         

          SEC. 232. PROGRAM ELEMENTS FOR BALLISTIC MISSILE DEFENSE ORGANIZATION.  

     (a) Revision in Program Elements.--Subsection (a) of section 223 of  
  title 10, United States Code, is amended--                              
       (1) by striking ``in accordance with the following program          
   elements:'' and inserting ``in accordance with program elements         
   governing functional areas as follows:''; and                           
       (2) by striking paragraphs (1) through (12) and inserting the       
   following:                                                              
     ``(1) Technology.                                                     

     ``(2) Ballistic Missile Defense System.                               

     ``(3) Terminal Defense Segment.                                       

     ``(4) Midcourse Defense Segment.                                      

     ``(5) Boost Defense Segment.                                          

     ``(6) Sensors Segment.''.                                             

     (b) Additional Requirements.--Subsection (b) of such section is      
  amended to read as follows:                                             
     ``(b) Separate Program Elements for Programs Entering Engineering and
  Manufacturing Development.--(1) The Secretary of Defense shall ensure   
  that each ballistic missile defense program that enters engineering and 
  manufacturing development is assigned a separate, dedicated program     
  element.                                                                
     ``(2) In this subsection, the term `engineering and manufacturing    
  development' means the development phase whose primary objectives are   
  to--                                                                    
       ``(A) translate the most promising design approach into a stable,   
   interoperable, producible, supportable, and cost-effective design;      
     ``(B) validate the manufacturing or production process; and           

     ``(C) demonstrate system capabilities through testing.''.             

     (c) Requirement for Annual Program Goals.--(1) The Secretary of      
  Defense shall each year establish cost, schedule, testing, and          
  performance goals for the ballistic missile defense programs of the     
  Department of Defense for the period covered by the future-years defense
  program that is submitted to Congress that year under section 221 of    
  title 10, United States Code. Not later than February 1 each year, the  
  Secretary shall submit to the congressional defense committees a        
  statement of the goals so established.                                  
     (2) The statement of goals submitted under paragraph (1) for any year
  after 2002 shall be an update of the statement submitted under that     
  paragraph for the preceding year.                                       
     (3) Each statement of goals submitted under paragraph (1) shall set  
  forth cost, schedule, testing, and performance goals that pertain to    
  each functional area program element identified in subsection (a), and  
  each program element identified in subsection (b), of section 223 of    
  title 10, United States Code.                                           
     (d) Annual Program Plan.--(1) With the submission of the statement of
  goals under subsection (c) for any year, the Secretary of Defense shall 
  submit to the congressional defense committees a program of activities  
  planned to be carried out for each missile defense program that enters  
  engineering and manufacturing development (as defined in section        
  223(b)(2) of title 10, United States Code, as added by subsection (b)). 
    (2) Each program plan under paragraph (1) shall include the following:

     (A) A funding profile that includes an estimate of--                  

       (i) the total expenditures to be made in the fiscal year in which   
   the plan is submitted and the following fiscal year, together with the  
   estimated total life-cycle costs of the program; and                    
       (ii) a display of such expenditures (shown for significant          
   procurement, construction, and research and development) for the fiscal 
   year in which the plan is submitted and the following fiscal year.      
       (B) A program schedule for the fiscal year in which the plan is     
   submitted and the following fiscal year for each of the following:      
     (i) Significant procurement.                                          

     (ii) Construction.                                                    

     (iii) Research and development.                                       

     (iv) Flight tests.                                                    

     (v) Other significant testing activities.                             

     (3) Information specified in paragraph (2) need not be included in   
  the plan for any year under paragraph (1) to the extent such information
  has already been provided, or will be provided in the current fiscal    
  year, in annual budget justification documents of the Department of     
  Defense submitted to Congress or in other required reports to Congress. 
     (e) Internal DOD Reviews.--(1) The officials and elements of the     
  Department of Defense specified in paragraph (2) shall on an ongoing    
  basis--                                                                 
       (A) review the development of goals under subsection (c) and the    
   annual program plan under subsection (d); and                           
       (B) provide to the Secretary of Defense and the Director of the     
   Ballistic Missile Defense Organization any comments on such matters as  
   considered appropriate.                                                 
    (2) Paragraph (1) applies with respect to the following:              

       (A) The Under Secretary of Defense for Acquisition, Technology, and 
   Logistics.                                                              
     (B) The Director of Operational Test and Evaluation.                  

     (C) The Director of Program Analysis and Evaluation.                  

     (D) The Joint Requirements Oversight Council.                         

     (E) The Cost Analysis and Improvement Group.                          

     (f) Demonstration of Critical Technologies.--(1) The Director of the 
  Ballistic Missile Defense Organization shall develop a plan for ensuring
  that each critical technology for a missile defense program is          
  successfully demonstrated in an appropriate environment before that     
  technology enters into operational service as part of a missile defense 
  program.                                                                
     (2) The Director of Operational Test and Evaluation of the Department
  of Defense shall monitor the development of the plan under paragraph (1)
  and shall submit to the Director of the Ballistic Missile Defense       
  Organization any comments regarding that plan that the Director of      
  Operational Test and Evaluation considers appropriate.                  
     (g) Comptroller General Assessment.--(1) At the conclusion of each of
  fiscal years 2002 and 2003, the Comptroller General of the United States
  shall assess the extent to which the Ballistic Missile Defense          
  Organization achieved the goals established under subsection (c) for    
  such fiscal year.                                                       
     (2) Not later than February 15, 2003, and February 15, 2004, the     
  Comptroller General shall submit to the congressional defense committees
  a report on the Comptroller General's assessment under paragraph (1)    
  with respect to the preceding fiscal year.                              
     (h) Annual OT&E Assessment of Test Program.--(1) The Director of     
  Operational Test and Evaluation shall each year assess the adequacy and 
  sufficiency of the Ballistic Missile Defense Organization test program  
  during the preceding fiscal year.                                       
     (2) Not later than February 15 each year the Director shall submit to
  the congressional defense committees a report on the assessment under   
  paragraph (1) with respect to the preceding fiscal year.                

                    SEC. 233. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF  
          THE DEPARTMENT OF DEFENSE BY THE NATIONAL DEFENSE LABORATORIES OF THE   
          DEPARTMENT OF ENERGY.                                                   
     (a) Funds To Carry Out Certain Ballistic Missile Defense             
  Activities.--Of the amounts authorized to be appropriated to the        
  Department of Defense pursuant to section 201(4), $25,000,000 shall be  
  available, subject to subsection (b) and at the discretion of the       
  Director of the Ballistic Missile Defense Organization, for research,   
  development, and demonstration activities at the national laboratories  
  of the Department of Energy in support of the missions of the Ballistic 
  Missile Defense Organization, including the following activities:       
       (1) Technology development, concept demonstration, and integrated   
   testing to enhance performance, reduce risk, and improve reliability in 
   hit-to-kill interceptors for ballistic missile defense.                 
       (2) Support for science and engineering teams to assess critical    
   technical problems and prudent alternative approaches as agreed upon by 
   the Director of the Ballistic Missile Defense Organization and the      
   Administrator for Nuclear Security.                                     
     (b) Requirement for Matching Funds From NNSA.--Funds shall be        
  available as provided in subsection (a) only if the Administrator for   
  Nuclear Security makes available matching funds for the activities      
  referred to in subsection (a).                                          
     (c) Memorandum of Understanding.--The activities referred to in      
  subsection (a) shall be carried out under the memorandum of             
  understanding entered into by the Secretary of Energy and the Secretary 
  of Defense for the use of national laboratories for ballistic missile   
  defense programs, as required by section 3131 of the National Defense   
  Authorization Act for Fiscal Year 1998 (Public Law 105 85; 111 Stat.    
  2034) and modified pursuant to section 3132 of the Floyd D. Spence      
  National Defense Authorization Act for Fiscal Year 2001 (as enacted into
  law by Public Law 106 398; 114 Stat. 1654A 455) to provide for jointly  
  funded projects.                                                        
          SEC. 234. MISSILE DEFENSE TESTING INITIATIVE.                           

     (a) Testing Infrastructure.--(1) The Secretary of Defense shall      
  ensure that each annual budget request of the Department of Defense--   
       (A) is designed to provide for comprehensive testing of ballistic   
   missile defense programs during early stages of development; and        
       (B) includes necessary funding to support and improve test          
   infrastructure and provide adequate test assets for the testing of such 
   programs.                                                               
     (2) The Secretary shall ensure that ballistic missile defense        
  programs incorporate, to the greatest possible extent, operationally    
  realistic test configurations (referred to as ``test bed''              
  configurations) to demonstrate system performance across a broad range  
  of capability and, during final stages of operational testing, to       
  demonstrate reliable performance.                                       
     (3) The Secretary shall ensure that the test infrastructure for      
  ballistic missile defense programs is capable of supporting continued   
  testing of ballistic missile defense systems after deployment.          
     (b) Requirements for Early Stages of System Development.--In order to
  demonstrate acceptable risk and developmental stability, the Secretary  
  of Defense shall ensure that any ballistic missile defense program      
  incorporates, to the maximum extent practicable, the following elements 
  during the early stages of system development:                          
       (1) Pursuit of parallel conceptual approaches and technological     
   paths for all critical problematic components until effective and       
   reliable solutions can be demonstrated.                                 
       (2) Comprehensive ground testing in conjunction with flight-testing 
   for key elements of the proposed system that are considered to present  
   high risk, with such ground testing to make use of existing facilities  
   and combinations of facilities that support testing at the highest      
   possible levels of integration.                                         
       (3) Where appropriate, expenditures to enhance the capabilities of  
   existing test facilities, or to construct new test facilities, to       
   support alternative complementary test methodologies.                   
       (4) Sufficient funding of test instrumentation to ensure accurate   
   measurement of all critical test events.                                
       (5) Incorporation into the program of sufficient schedule           
   flexibility and expendable test assets, including missile interceptors  
   and targets, to ensure that failed or aborted tests can be repeated in a
   prudent, but expeditious manner.                                        
       (6) Incorporation into flight-test planning for the program, where  
   possible, of--                                                          
       (A) methods that make the most cost-effective use of test           
   opportunities;                                                          
       (B) events to demonstrate engagement of multiple targets,           
   ``shoot-look-shoot'', and other planned operational concepts; and       
       (C) exploitation of opportunities to facilitate early development   
   and demonstration of ``family of systems'' concepts.                    
     (c) Specific Requirements for Ground-Based Mid-Course Interceptor    
  Systems.--For ground-based mid-course interceptor systems, the Secretary
  of Defense shall initiate steps during fiscal year 2002 to establish a  
  flight-test capability of launching not less than three missile defense 
  interceptors and not less than two ballistic missile targets to provide 
  a realistic test infrastructure.                                        

                    SEC. 235. CONSTRUCTION OF TEST BED FACILITIES FOR MISSILE     
          DEFENSE SYSTEM.                                                         
     (a) Authority To Acquire or Construct Facilities.--(1) The Secretary 
  of Defense, using funds appropriated to the Department of Defense for   
  research, development, test, and evaluation for fiscal years after      
  fiscal year 2001 that are available for programs of the Ballistic       
  Missile Defense Organization, may carry out all construction projects,  
  or portions of construction projects, including projects for the        
  acquisition, improvement, or construction of facilities, necessary to   
  establish and operate the Missile Defense System Test Bed.              
     (2) The authority provided in subsection (a) may be used to acquire, 
  improve, or construct facilities at a total cost not to exceed          
  $500,000,000.                                                           
     (b) Authority To Provide Assistance to Local Communities.--(1)       
  Subject to paragraph (2), the Secretary of Defense, using funds         
  appropriated to the Department of Defense for research, development,    
  test, and evaluation for fiscal year 2002 that are available for        
  programs of the Ballistic Missile Defense Organization, may provide     
  assistance to local communities to meet the need for increased municipal
  or community services or facilities resulting from the construction,    
  installation, or operation of the Missile Defense System Test Bed       
  Facilities. Such assistance may be provided by grant or otherwise.      
     (2) Assistance may be provided to a community under paragraph (1)    
  only if the Secretary of Defense determines that there is an immediate  
  and substantial increase in the need for municipal or community services
  or facilities as a direct result of the construction, installation, or  
  operation of the Missile Defense System Test Bed Facilities.            
           Subtitle D--Air Force Science and Technology for the 21st Century       

          SEC. 251. SHORT TITLE.                                                  

     This subtitle may be cited as the ``Air Force Science and Technology 
  for the 21st Century Act''.                                             

          SEC. 252. SCIENCE AND TECHNOLOGY INVESTMENT AND DEVELOPMENT PLANNING.   

     (a) Sense of Congress.--It is the sense of Congress that the         
  Secretary of the Air Force should carry out each of the following:      
     (1) Continue and improve efforts to ensure that--                     

       (A) the Air Force science and technology community is represented,  
   and the recommendations of that community are considered, at all levels 
   of program planning and budgetary decisionmaking within the Air Force;  
       (B) advocacy for science and technology development is              
   institutionalized across all levels of Air Force management in a manner 
   that is not dependent on individuals; and                               
       (C) the value of Air Force science and technology development is    
   made increasingly apparent to the warfighters, by linking the needs of  
   those warfighters with decisions on science and technology development. 
       (2) Complete and adopt a policy directive that provides for changes 
   in how the Air Force makes budgetary and nonbudgetary decisions with    
   respect to its science and technology development programs and how it   
   carries out those programs.                                             
       (3) At least once every five years, conduct a review of the         
   long-term challenges and short-term objectives of the Air Force science 
   and technology programs that is consistent with the review specified in 
   section 252 of the Floyd D. Spence National Defense Authorization Act   
   for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114    
   Stat. 1654A 46).                                                        
       (4) Ensure that development and science and technology planning and 
   investment activities are carried out for future space warfighting      
   systems and for future nonspace warfighting systems in an integrated    
   manner.                                                                 
       (5) Elevate the position within the Office of the Secretary of the  
   Air Force that has primary responsibility for budget and policy         
   decisions for science and technology programs.                          
     (b) Reinstatement of Development Planning.--(1) The Secretary of the 
  Air Force shall reinstate and implement a revised development planning  
  process that provides for each of the following:                        
       (A) Coordinating the needs of Air Force warfighters with decisions  
   on science and technology development.                                  
       (B) Giving input into the establishment of priorities among science 
   and technology programs.                                                
       (C) Analyzing Air Force capability options for the allocation of Air
   Force resources.                                                        
       (D) Developing concepts for technology, warfighting systems, and    
   operations with which the Air Force can achieve its critical future     
   goals.                                                                  
       (E) Evaluating concepts for systems and operations that leverage    
   technology across Air Force organizational boundaries.                  
       (F) Ensuring that a ``system-of-systems'' approach is used in       
   carrying out the various Air Force capability planning exercises.       
       (G) Utilizing existing analysis capabilities within the Air Force   
   product centers in a collaborative and integrated manner.               
     (2) Not later than one year after the date of the enactment of this  
  Act, the Secretary of the Air Force shall submit to Congress a report on
  the implementation of the planning process required by paragraph (1).   
  The report shall include the annual amount that the Secretary considers 
  necessary to carry out paragraph (1).                                   
                    SEC. 253. STUDY AND REPORT ON EFFECTIVENESS OF AIR FORCE      
          SCIENCE AND TECHNOLOGY PROGRAM CHANGES.                                 
     (a) Requirement.--The Secretary of the Air Force, in cooperation with
  the National Research Council of the National Academy of Sciences, shall
  carry out a study to determine how the changes to the Air Force science 
  and technology program implemented during the past two years affect the 
  future capabilities of the Air Force.                                   
     (b) Matters Studied.--(1) The study shall review and assess whether  
  such changes as a whole are sufficient to ensure the following:         
       (A) That the concerns about the management of the science and       
   technology program that have been raised by Congress, the Defense       
   Science Board, the Air Force Science Advisory Board, and the Air Force  
   Association have been adequately addressed.                             
       (B) That appropriate and sufficient technology is available to      
   ensure the military superiority of the United States and counter future 
   high-risk threats.                                                      
       (C) That the science and technology investments are balanced to meet
   the near-, mid-, and long-term needs of the Air Force.                  
       (D) That technologies are made available that can be used to respond
   flexibly and quickly to a wide range of future threats.                 
       (E) That the Air Force organizational structure provides for a      
   sufficiently senior level advocate of science and technology to ensure  
   an ongoing, effective presence of the science and technology community  
   during the budget and planning process.                                 
     (2) In addition, the study shall assess the specific changes to the  
  Air Force science and technology program as follows:                    
       (A) Whether the biannual science and technology summits provide     
   sufficient visibility into, and understanding and appreciation of, the  
   value of the science and technology program to the senior level of Air  
   Force budget and policy decisionmakers.                                 
       (B) Whether the applied technology councils are effective in        
   contributing the input of all levels beneath the senior leadership into 
   the coordination, focus, and content of the science and technology      
   program.                                                                
       (C) Whether the designation of the commander of the Air Force       
   Materiel Command as the science and technology budget advocate is       
   effective to ensure that an adequate Air Force science and technology   
   budget is requested.                                                    
       (D) Whether the revised development planning process is effective to
   aid in the coordination of the needs of the Air Force warfighters with  
   decisions on science and technology investments and the establishment of
   priorities among different science and technology programs.             
       (E) Whether the implementation of section 252 of the Floyd D. Spence
   National Defense Authorization Act for Fiscal Year 2001 (as enacted into
   law by Public Law 106 398; 114 Stat. 1654A 46) is effective to identify 
   the basis for the appropriate science and technology program funding    
   level and investment portfolio.                                         
     (c) Report.--Not later than May 1, 2003, the Secretary of the Air    
  Force shall submit to Congress the results of the study.                
           Subtitle E--Other Matters                                               

                    SEC. 261. ESTABLISHMENT OF UNMANNED AERIAL VEHICLE JOINT      
          OPERATIONAL TEST BED SYSTEM.                                            
     (a) Establishment of Test Bed System.--The commander of the United   
  States Joint Forces Command shall establish a government flight activity
  capability (referred to as a ``test bed'') within the facilities and    
  resources of that command to evaluate and ensure joint interoperability 
  of unmanned aerial vehicle systems. That capability shall be independent
  of the military departments and shall be managed directly by the Joint  
  Forces Command.                                                         
     (b) Priority for Use of Predator Assets.--The Secretary of the Navy  
  shall ensure that the commander of the United States Joint Forces       
  Command controls the priority for use of the two Predator unmanned      
  aerial vehicles currently undergoing operational testing by the Navy,   
  together with associated payloads and antennas and the associated       
  tactical control system (TCS) ground station.                           
     (c) Use by Joint Forces Command.--The items specified to in          
  subsection (b) may be used by the commander of the United States Joint  
  Forces Command only through the independent joint operational test bed  
  system established pursuant to subsection (a) for testing of those      
  items, including further development of the associated tactical control 
  system (TCS) ground station, other aspects of unmanned aerial vehicle   
  interoperability, and participation in such experiments and exercises as
  the commander considers appropriate to the mission of that command.     
                    SEC. 262. DEMONSTRATION PROJECT TO INCREASE SMALL BUSINESS AND
          UNIVERSITY PARTICIPATION IN OFFICE OF NAVAL RESEARCH EFFORTS TO EXTEND  
          BENEFITS OF SCIENCE AND TECHNOLOGY RESEARCH TO FLEET.                   
     (a) Project Required.--The Secretary of the Navy, acting through the 
  Chief of Naval Research, shall carry out a demonstration project to     
  increase access to Navy facilities of small businesses and universities 
  that are engaged in science and technology research beneficial to the   
  fleet.                                                                  
     (b) Project Elements.--In carrying out the demonstration project, the
  Secretary shall--                                                       
       (1) establish and operate a Navy Technology Extension Center at a   
   location to be selected by the Secretary;                               
       (2) permit participants in the Small Business Innovation Research   
   Program (SBIR) and Small Business Technology Transfer Program (STTR)    
   that are awarded contracts by the Office of Naval Research to access and
   use Navy Major Range Test Facilities Base (MRTFB) facilities selected by
   the Secretary for purposes of carrying out such contracts, and charge   
   such participants for such access and use at the same established rates 
   that Department of Defense customers are charged; and                   
       (3) permit universities, institutions of higher learning, and       
   federally funded research and development centers collaborating with    
   participants referred to in paragraph (2) to access and use such        
   facilities for such purposes, and charge such entities for such access  
   and use at such rates.                                                  

     (c) Period of Project.--The demonstration project shall be carried   
  out during the three-year period beginning on the date of the enactment 
  of this Act.                                                            
     (d) Report.--Not later than February 1, 2004, the Secretary shall    
  submit to Congress a report on the demonstration project. The report    
  shall include a description of the activities carried out under the     
  demonstration project and any recommendations for the improvement or    
  expansion of the demonstration project that the Secretary considers     
  appropriate.                                                            
                    SEC. 263. COMMUNICATION OF SAFETY CONCERNS FROM OPERATIONAL   
          TEST AND EVALUATION OFFICIALS TO PROGRAM MANAGERS.                      
    Section 139 of title 10, United States Code, is amended--             

       (1) by redesignating subsections (f) through (i) as subsections (g) 
   through (j), respectively; and                                          
     (2) by inserting after subsection (e) the following new subsection:   

     ``(f) The Director shall ensure that safety concerns developed during
  the operational test and evaluation of a weapon system under a major    
  defense acquisition program are communicated in a timely manner to the  
  program manager for that program for consideration in the acquisition   
  decisionmaking process.''.                                              

           TITLE III--OPERATION AND MAINTENANCE                                    


                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 301. Operation and maintenance funding.                            

      Sec. 302. Working capital funds.                                        

      Sec. 303. Armed Forces Retirement Home.                                 

      Sec. 304. Transfer from National Defense Stockpile Transaction Fund.    

            Sec. 305. Funds for renovation of Department of Veterans Affairs  
      facilities adjacent to Naval Training Center, Great Lakes, Illinois.    
            Sec. 306. Defense Language Institute Foreign Language Center      
      expanded Arabic language program.                                       
                            SUBTITLE B--ENVIRONMENTAL PROVISIONS                  

            Sec. 311. Inventory of unexploded ordnance, discarded military    
      munitions, and munitions constituents at defense sites (other than      
      operational ranges).                                                    
            Sec. 312. Establishment of new program element for remediation of 
      unexploded ordnance, discarded military munitions, and munitions        
      constituents.                                                           
            Sec. 313. Assessment of environmental remediation of unexploded   
      ordnance, discarded military munitions, and munitions constituents.     
            Sec. 314. Conformity of surety authority under environmental      
      restoration program with surety authority under CERCLA.                 
            Sec. 315. Elimination of annual report on contractor reimbursement
      for costs of environmental response actions.                            
            Sec. 316. Pilot program for sale of air pollution emission        
      reduction incentives.                                                   
      Sec. 317. Department of Defense energy efficiency program.              

            Sec. 318. Procurement of alternative fueled and hybrid light duty 
      trucks.                                                                 
            Sec. 319. Reimbursement of Environmental Protection Agency for    
      certain response costs in connection with Hooper Sands Site, South      
      Berwick, Maine.                                                         
      Sec. 320. River mitigation studies.                                     

             SUBTITLE C--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  

      Sec. 331. Commissary benefits for new members of the Ready Reserve.     

            Sec. 332. Reimbursement for use of commissary facilities by       
      military departments for purposes other than commissary sales.          
            Sec. 333. Public releases of commercially valuable information of 
      commissary stores.                                                      
            Sec. 334. Rebate agreements with producers of foods provided under
      special supplemental food program.                                      
            Sec. 335. Civil recovery for nonappropriated fund instrumentality 
      costs related to shoplifting.                                           
                           SUBTITLE D--WORKFORCE AND DEPOT ISSUES                 

            Sec. 341. Revision of authority to waive limitation on performance
      of depot-level maintenance.                                             
            Sec. 342. Exclusion of certain expenditures from limitation on    
      private sector performance of depot-level maintenance.                  
            Sec. 343. Protections for purchasers of articles and services     
      manufactured or performed by working-capital funded industrial          
      facilities of the Department of Defense.                                
            Sec. 344. Revision of deadline for annual report on commercial and
      industrial activities.                                                  
      Sec. 345. Pilot manpower reporting system in Department of the Army.    

            Sec. 346. Development of Army workload and performance system and 
      Wholesale Logistics Modernization Program.                              
                          SUBTITLE E--DEFENSE DEPENDENTS EDUCATION                

            Sec. 351. Assistance to local educational agencies that benefit   
      dependents of members of the Armed Forces and Department of Defense     
      civilian employees.                                                     
      Sec. 352. Impact aid for children with severe disabilities.             

            Sec. 353. Availability of auxiliary services of defense           
      dependents' education system for dependents who are home school         
      students.                                                               
            Sec. 354. Comptroller General study of adequacy of compensation   
      provided for teachers in the Department of Defense overseas dependents' 
      schools.                                                                
                                  SUBTITLE F--OTHER MATTERS                       

            Sec. 361. Availability of excess defense personal property to     
      support Department of Veterans Affairs initiative to assist homeless    
      veterans.                                                               
            Sec. 362. Incremental implementation of Navy-Marine Corps Intranet
      contract.                                                               
            Sec. 363. Comptroller General study and report of National Guard  
      Distributive Training Technology Project.                               
      Sec. 364. Reauthorization of warranty claims recovery pilot program.    

            Sec. 365. Evaluation of current demonstration programs to improve 
      quality of personal property shipments of members.                      
            Sec. 366. Sense of Congress regarding security to be provided at  
      2002 Winter Olympic Games.                                              

           Subtitle A--Authorization of Appropriations                             


          SEC. 301. OPERATION AND MAINTENANCE FUNDING.                            

     (a) Authorization of Appropriations.--Funds are hereby authorized to 
  be appropriated for fiscal year 2002 for the use of the Armed Forces and
  other activities and agencies of the Department of Defense for expenses,
  not otherwise provided for, for operation and maintenance, in amounts as
  follows:                                                                
     (1) For the Army, $20,653,241,000.                                    

     (2) For the Navy, $26,461,299,000.                                    

     (3) For the Marine Corps, $2,872,524,000.                             

     (4) For the Air Force, $25,598,767,000.                               

     (5) For Defense-wide activities, $11,949,586,000.                     

     (6) For the Army Reserve, $1,824,146,000.                             

     (7) For the Naval Reserve, $1,000,050,000.                            

     (8) For the Marine Corps Reserve, $142,853,000.                       

     (9) For the Air Force Reserve, $2,029,866,000.                        

     (10) For the Army National Guard, $3,696,559,000.                     

     (11) For the Air National Guard, $3,967,361,000.                      

     (12) For the Defense Inspector General, $149,221,000.                 

       (13) For the United States Court of Appeals for the Armed Forces,   
   $9,096,000.                                                             
     (14) For Environmental Restoration, Army, $389,800,000.               

     (15) For Environmental Restoration, Navy, $257,517,000.               

     (16) For Environmental Restoration, Air Force, $385,437,000.          

     (17) For Environmental Restoration, Defense-wide, $23,492,000.        

       (18) For Environmental Restoration, Formerly Used Defense Sites,    
   $230,255,000.                                                           
       (19) For Overseas Humanitarian, Disaster, and Civic Aid programs,   
   $49,700,000.                                                            
       (20) For Drug Interdiction and Counter-drug Activities,             
   Defense-wide, $820,381,000.                                             
       (21) For the Kaho'olawe Island Conveyance, Remediation, and         
   Environmental Restoration Trust Fund, $40,000,000.                      
     (22) For Defense Health Program, $17,570,750,000.                     

     (23) For Cooperative Threat Reduction programs, $403,000,000.         

       (24) For Overseas Contingency Operations Transfer Fund,             
   $2,844,226,000.                                                         
       (25) For Support for International Sporting Competitions, Defense,  
   $15,800,000.                                                            
     (b) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1) through (5) of subsection (a) is the sum of  
  the amounts authorized to be appropriated in such paragraphs, reduced by
  $125,000,000, which represents savings resulting from reduced energy    
  costs.                                                                  

          SEC. 302. WORKING CAPITAL FUNDS.                                        

     Funds are hereby authorized to be appropriated for fiscal year 2002  
  for the use of the Armed Forces and other activities and agencies of the
  Department of Defense for providing capital for working capital and     
  revolving funds in amounts as follows:                                  
     (1) For the Defense Working Capital Funds, $1,656,396,000.            

     (2) For the National Defense Sealift Fund, $407,708,000.              


          SEC. 303. ARMED FORCES RETIREMENT HOME.                                 

     (a) Amount for Fiscal Year 2002.--There is hereby authorized to be   
  appropriated for fiscal year 2002 from the Armed Forces Retirement Home 
  Trust Fund the sum of $71,440,000 for the operation of the Armed Forces 
  Retirement Home.                                                        
     (b) Availability of Amounts Previously Appropriated.--Of amounts     
  appropriated from the Armed Forces Retirement Home Trust Fund for fiscal
  year 2002 (and previous fiscal years to the extent such amounts remain  
  unobligated), $22,400,000 shall be available, subject to the review and 
  approval of the Secretary of Defense, for the development and           
  construction of a blended use, multicare facility at the Naval Home and 
  for the acquisition of a parcel of real property adjacent to the Naval  
  Home consisting of approximately 15 acres.                              

          SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.    

     (a) Transfer Authority.--To the extent provided in appropriations    
  Acts, not more than $150,000,000 is authorized to be transferred from   
  the National Defense Stockpile Transaction Fund to operation and        
  maintenance accounts for fiscal year 2002 in amounts as follows:        
     (1) For the Army, $50,000,000.                                        

     (2) For the Navy, $50,000,000.                                        

     (3) For the Air Force, $50,000,000.                                   

    (b)  Treatment of Transfers.--Amounts transferred under this section--

       (1) shall be merged with, and be available for the same purposes and
   the same period as, the amounts in the accounts to which transferred;   
   and                                                                     
       (2) may not be expended for an item that has been denied            
   authorization of appropriations by Congress.                            
     (c) Relationship to Other Transfer Authority.--The transfer authority
  provided in this section is in addition to the transfer authority       
  provided in section 1001.                                               

                    SEC. 305. FUNDS FOR RENOVATION OF DEPARTMENT OF VETERANS      
          AFFAIRS FACILITIES ADJACENT TO NAVAL TRAINING CENTER, GREAT LAKES,      
          ILLINOIS.                                                               
     (a) Availability of Funds for Renovation.--Subject to subsection (b),
  of the amount authorized to be appropriated by section 301(a)(2) for    
  operation and maintenance for the Navy, the Secretary of the Navy may   
  make available to the Secretary of Veterans Affairs up to $2,000,000 for
  relocation of Department of Veterans Affairs activities and associated  
  renovation of existing facilities at the North Chicago Department of    
  Veterans Affairs Medical Center, Illinois.                              
     (b) Limitation.--The Secretary of the Navy may make funds available  
  under subsection (a) only after the Secretary of the Navy and the       
  Secretary of Veterans Affairs enter into an appropriate agreement for   
  the use by the Secretary of the Navy of approximately 48 acres of real  
  property at the North Chicago Department of Veterans Affairs property   
  referred to in subsection (a) for expansion of the Naval Training       
  Center, Great Lakes, Illinois.                                          

                    SEC. 306. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER  
          EXPANDED ARABIC LANGUAGE PROGRAM.                                       
     Of the amount authorized to be appropriated by section 301(a)(1) for 
  operation and maintenance for the Army, $650,000 may be available for   
  the Defense Language Institute Foreign Language Center for an expanded  
  Arabic language program.                                                

           Subtitle B--Environmental Provisions                                    


                    SEC. 311. INVENTORY OF UNEXPLODED ORDNANCE, DISCARDED MILITARY
          MUNITIONS, AND MUNITIONS CONSTITUENTS AT DEFENSE SITES (OTHER THAN      
          OPERATIONAL RANGES).                                                    
     (a) Inventory Required.--(1) Chapter 160 of title 10, United States  
  Code, is amended by adding at the end the following new section:        
                    ``2710. Inventory of unexploded ordnance, discarded military  
          munitions, and munitions constituents at defense sites (other than      
          operational ranges)                                                     
     ``(a) Inventory Required.--(1) The Secretary of Defense shall develop
  and maintain an inventory of defense sites that are known or suspected  
  to contain unexploded ordnance, discarded military munitions, or        
  munitions constituents.                                                 
     ``(2) The information in the inventory for each defense site shall   
  include, at a minimum, the following:                                   
     ``(A) A unique identifier for the defense site.                       

       ``(B) An appropriate record showing the location, boundaries, and   
   extent of the defense site, including identification of the State and   
   political subdivisions of the State in which the defense site is located
   and any Tribal lands encompassed by the defense site.                   
       ``(C) Known persons and entities, other than a military department, 
   with any current ownership interest or control of lands encompassed by  
   the defense site.                                                       
       ``(D) Any restrictions or other land use controls currently in place
   at the defense site that might affect the potential for public and      
   environmental exposure to the unexploded ordnance, discarded military   
   munitions, or munitions constituents.                                   
     ``(b) Site Prioritization.--(1) The Secretary shall develop, in      
  consultation with representatives of the States and Indian Tribes, a    
  proposed protocol for assigning to each defense site a relative priority
  for response activities related to unexploded ordnance, discarded       
  military munitions, and munitions constituents based on the overall     
  conditions at the defense site. After public notice and comment on the  
  proposed protocol, the Secretary shall issue a final protocol and shall 
  apply the protocol to defense sites listed on the inventory. The level  
  of response priority assigned the site shall be included with the       
  information required by subsection (a)(2).                              
     ``(2) In assigning the response priority for a defense site on the   
  inventory, the Secretary shall primarily consider factors relating to   
  safety and environmental hazard potential, such as the following:       
       ``(A) Whether there are known, versus suspected, unexploded         
   ordnance, discarded military munitions, or munitions constituents on all
   or any portion of the defense site and the types of unexploded ordnance,
   discarded military munitions, or munitions constituents present or      
   suspected to be present.                                                
       ``(B) Whether public access to the defense site is controlled, and  
   the effectiveness of these controls.                                    
       ``(C) The potential for direct human contact with unexploded        
   ordnance, discarded military munitions, or munitions constituents at the
   defense site and evidence of people entering the site.                  
       ``(D) Whether a response action has been or is being undertaken at  
   the defense site under the Formerly Used Defense Sites program or other 
   program.                                                                
       ``(E) The planned or mandated dates for transfer of the defense site
   from military control.                                                  
       ``(F) The extent of any documented incidents involving unexploded   
   ordnance, discarded military munitions, or munitions constituents at or 
   from the defense site, including incidents involving explosions,        
   discoveries, injuries, reports, and investigations.                     
       ``(G) The potential for drinking water contamination or the release 
   of munitions constituents into the air.                                 
       ``(H) The potential for destruction of sensitive ecosystems and     
   damage to natural resources.                                            

     ``(3) The priority assigned to a defense site included on the        
  inventory shall not impair, alter, or diminish any applicable Federal or
  State authority to establish requirements for the investigation of, and 
  response to, environmental problems at the defense site.                
     ``(c) Updates and Availability.--(1) The Secretary shall annually    
  update the inventory and site prioritization list to reflect new        
  information that becomes available. The inventory shall be available in 
  published and electronic form.                                          
     ``(2) The Secretary shall work with communities adjacent to a defense
  site to provide information concerning conditions at the site and       
  response activities. At a minimum, the Secretary shall provide the site 
  inventory information and site prioritization list to appropriate       
  Federal, State, tribal, and local officials, and, to the extent the     
  Secretary considers appropriate, to civil defense or emergency          
  management agencies and the public.                                     
    ``(d)  Exceptions.--This section does not apply to the following:     

     ``(1) Any locations outside the United States.                        

       ``(2) The presence of military munitions resulting from combat      
   operations.                                                             
     ``(3) Operating storage and manufacturing facilities.                 

     ``(4) Operational ranges.                                             

    ``(e)  Definitions.--In this section:                                 

       ``(1) The term `defense site' applies to locations that are or were 
   owned by, leased to, or otherwise possessed or used by the Department of
   Defense. The term does not include any operational range, operating     
   storage or manufacturing facility, or facility that is used for or was  
   permitted for the treatment or disposal of military munitions.          
       ``(2) The term `discarded military munitions' means military        
   munitions that have been abandoned without proper disposal or removed   
   from storage in a military magazine or other storage area for the       
   purpose of disposal. The term does not include unexploded ordnance,     
   military munitions that are being held for future use or planned        
   disposal, or military munitions that have been properly disposed of,    
   consistent with applicable environmental laws and regulations.          
       ``(3)(A) The term `military munitions' means all ammunition products
   and components produced for or used by the armed forces for national    
   defense and security, including ammunition products or components under 
   the control of the Department of Defense, the Coast Guard, the          
   Department of Energy, and the National Guard. The term includes confined
   gaseous, liquid, and solid propellants, explosives, pyrotechnics,       
   chemical and riot control agents, smokes, and incendiaries, including   
   bulk explosives and chemical warfare agents, chemical munitions,        
   rockets, guided and ballistic missiles, bombs, warheads, mortar rounds, 
   artillery ammunition, small arms ammunition, grenades, mines, torpedoes,
   depth charges, cluster munitions and dispensers, demolition charges, and
   devices and components thereof.                                         
       ``(B) The term does not include wholly inert items, improvised      
   explosive devices, and nuclear weapons, nuclear devices, and nuclear    
   components, except that the term does include nonnuclear components of  
   nuclear devices that are managed under the nuclear weapons program of   
   the Department of Energy after all required sanitization operations     
   under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) have been  
   completed.                                                              
       ``(4) The term `munitions constituents' means any materials         
   originating from unexploded ordnance, discarded military munitions, or  
   other military munitions, including explosive and nonexplosive          
   materials, and emission, degradation, or breakdown elements of such     
   ordnance or munitions.                                                  
       ``(5) The term `operational range' means a military range that is   
   used for range activities, or a military range that is not currently    
   being used, but that is still considered by the Secretary to be a range 
   area, is under the jurisdiction, custody, or control of the Department  
   of Defense, and has not been put to a new use that is incompatible with 
   range activities.                                                       
       ``(6) The term `possessions' includes Johnston Atoll, Kingman Reef, 
   Midway Island, Nassau Island, Palmyra Island, and Wake Island.          
     ``(7) The term `Secretary' means the Secretary of Defense.            

       ``(8) The term `State' means the several States, the District of    
   Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the      
   Northern Mariana Islands, and the territories and possessions.          
     ``(9) The term `unexploded ordnance' means military munitions that--  

       ``(A) have been primed, fused, armed, or otherwise prepared for     
   action;                                                                 
       ``(B) have been fired, dropped, launched, projected, or placed in   
   such a manner as to constitute a hazard to operations, installations,   
   personnel, or material; and                                             
       ``(C) remain unexploded either by malfunction, design, or any other 
   cause.                                                                  
       ``(10) The term `United States', in a geographic sense, means the   
   States, territories, and possessions and associated navigable waters,   
   contiguous zones, and ocean waters of which the natural resources are   
   under the exclusive management authority of the United States.''.       
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``2710. Inventory of unexploded ordnance, discarded military      
      munitions, and munitions constituents at defense sites (other than      
      operational ranges).''.                                                 


     (b) Initial Inventory.--The requirements of section 2710 of title 10,
  United States Code, as added by subsection (a), shall be implemented as 
  follows:                                                                
       (1) The initial inventory required by subsection (a) of such section
   shall be completed not later than May 31, 2003.                         
       (2) The proposed prioritization protocol required by subsection (b) 
   of such section shall be available for public comment not later than    
   November 30, 2002.                                                      

                    SEC. 312. ESTABLISHMENT OF NEW PROGRAM ELEMENT FOR REMEDIATION
          OF UNEXPLODED ORDNANCE, DISCARDED MILITARY MUNITIONS, AND MUNITIONS     
          CONSTITUENTS.                                                           
    Section 2703 of title 10, United States Code, is amended--            

       (1) by redesignating subsections (b) through (f) as subsections (c) 
   through (g), respectively; and                                          
       (2) by inserting after subsection (a) the following new subsection  
   (b):                                                                    
     ``(b) Program Elements for Ordnance Remediation.--The Secretary of   
  Defense shall establish a program element for remediation of unexploded 
  ordnance, discarded military munitions, and munitions constituents      
  within each environmental restoration account established under         
  subsection (a). The terms `unexploded ordnance', `discarded military    
  munitions', and `munitions constituents' have the meanings given such   
  terms in section 2710 of this title.''.                                 

                    SEC. 313. ASSESSMENT OF ENVIRONMENTAL REMEDIATION OF          
          UNEXPLODED ORDNANCE, DISCARDED MILITARY MUNITIONS, AND MUNITIONS        
          CONSTITUENTS.                                                           
     (a) Inclusion in 2003 Report on Environmental Restoration            
  Activities.--The Secretary of Defense shall include in the report       
  submitted to Congress under section 2706(a) of title 10, United States  
  Code, in 2003 a comprehensive assessment of unexploded ordnance,        
  discarded military munitions, and munitions constituents located at     
  current and former facilities of the Department of Defense. The         
  assessment shall include, at a minimum, the following:                  
       (1) Separate estimates of the aggregate projected costs of the      
   remediation of unexploded ordnance, discarded military munitions, and   
   munitions constituents at--                                             
     (A) all operational ranges; and                                       

     (B) all other defense sites.                                          


       (2) A comprehensive plan for addressing the remediation of          
   unexploded ordinance, discarded military munitions, and munitions       
   constituents at defense sites, including an assessment of the funding   
   required and the period of time over which such funding will be         
   required.                                                               
       (3) An assessment of the technology currently available for the     
   remediation of unexploded ordnance, discarded military munitions, and   
   munitions constituents.                                                 
       (4) An assessment of the impact of improved technology on the cost  
   of such remediation and a plan for the development and use of such      
   improved technology.                                                    
     (b) Requirements for Cost Estimates.--(1) The estimates of aggregate 
  projected costs required by subsection (a)(1) shall--                   
       (A) be stated as a range of aggregate projected costs, including a  
   low estimate and a high estimate;                                       
       (B) set forth the differing assumptions underlying each such low    
   estimate and high estimate, including--                                 
       (i) any public uses for the operational ranges and other defense    
   sites concerned that will be available after the remediation is         
   completed;                                                              
       (ii) the extent of the remediation required to make the operational 
   ranges and other defense sites concerned available for such uses; and   
       (iii) the technologies to be applied to achieve such level of       
   remediation; and                                                        
       (C) include, and identify separately, an estimate of the aggregate  
   projected costs of the remediation of any ground water contamination    
   that may be caused by unexploded ordnance, discarded military munitions,
   or munitions constituents at the operational ranges and other defense   
   sites concerned.                                                        
     (2) The high estimate of the aggregate projected costs shall be based
  on the assumption that all unexploded ordnance, discarded military      
  munitions, and munitions constituents at each operational range and     
  other defense site will be addressed, regardless of whether there are   
  any current plans to close the range or site or discontinue training at 
  the range or site.                                                      
     (3) The estimate of the aggregate projected costs of remediation of  
  ground water contamination under paragraph (1)(C) shall be based on a   
  comprehensive assessment of the risk of such contamination and of the   
  actions required to protect the ground water supplies concerned.        
     (4) The standards for the report of liabilities of the Department of 
  Defense shall not apply to the cost estimates required by subsection    
  (a)(1).                                                                 
     (c) Interim Assessment.--The report submitted to Congress under      
  section 2706(a) of title 10, United States Code, in 2002 shall include  
  the assessment required by subsection (a) to the extent that the        
  information required to be provided as part of the assessment is        
  available. The Secretary shall include an explanation of any limitations
  on the information available or qualifications on the information       
  provided.                                                               
     (d) Definitions.--In this section, the terms ``unexploded ordnance'',
  ``discarded military munitions'', ``munitions constituents'',           
  ``operational range'', and ``defense site'' have the meanings given such
  terms in section 2710 of title 10, United States Code, as added by      
  section 311.                                                            

                    SEC. 314. CONFORMITY OF SURETY AUTHORITY UNDER ENVIRONMENTAL  
          RESTORATION PROGRAM WITH SURETY AUTHORITY UNDER CERCLA.                 
     Section 2701(j)(1) of title 10, United States Code, is amended by    
  striking ``, or after December 31, 1999''.                              

                    SEC. 315. ELIMINATION OF ANNUAL REPORT ON CONTRACTOR          
          REIMBURSEMENT FOR COSTS OF ENVIRONMENTAL RESPONSE ACTIONS.              
     (a) Report Elimination.--Section 2706 of title 10, United States     
  Code, is amended--                                                      
     (1) by striking subsection (c); and                                   

       (2) by redesignating subsections (d) and (e) as subsections (c) and 
   (d), respectively.                                                      
     (b) Conforming Amendments.--Subsection (d) of such section, as       
  redesignated by subsection (a) of this section, is amended--            

     (1) by striking paragraphs (1) and (3); and                           

       (2) by redesignating paragraphs (2), (4), and (5) as paragraphs (1),
   (2), and (3), respectively.                                             

                    SEC. 316. PILOT PROGRAM FOR SALE OF AIR POLLUTION EMISSION    
          REDUCTION INCENTIVES.                                                   
     (a) Extension.--Section 351(a)(2) of the National Defense            
  Authorization Act for Fiscal Year 1998 (Public Law 105 85; 10 U.S.C.    
  2701 note) is amended by striking ``September 30, 2001'' and inserting  
  ``September 30, 2003''.                                                 
     (b) Report Required.--(1) The Secretary of Defense shall prepare a   
  report concerning the operation of the pilot program for the sale of    
  economic incentives for the reduction of emission of air pollutants     
  attributable to military facilities, as authorized by section 351 of the
  National Defense Authorization Act for Fiscal Year 1998 (Public Law 105 
  85; 10 U.S.C. 2701 note). The report shall--                            
       (A) detail all transactions that have been completed under the pilot
   program, the dollar amount of each transaction, and the number and type 
   of air pollutants involved in each transaction;                         
       (B) evaluate the extent to which retention of the proceeds of sales 
   under the pilot program, as required by subsection (c) of such section, 
   has provided incentives for such sales;                                 
       (C) evaluate the extent of any loss to the United States Treasury   
   associated with the pilot program; and                                  
     (D) evaluate the environmental impact of the pilot program.           

     (2) Not later than March 1, 2003, the Secretary shall submit the     
  report required by paragraph (1) to the Committee on Energy and Commerce
  and the Committee on Armed Services of the House of Representatives and 
  the Committee on Environment and Public Works and the Committee on Armed
  Services of the Senate.                                                 

          SEC. 317. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY PROGRAM.              

     (a) Sense of Congress.--It is the sense of Congress that the         
  Secretary of Defense should work to implement fuel efficiency reforms   
  that allow for investment decisions based on the true cost of delivered 
  fuel, strengthen the linkage between warfighting capability and fuel    
  logistics requirements, provide high-level leadership encouraging fuel  
  efficiency, target fuel efficiency improvements through science and     
  technology investment, and include fuel efficiency in requirements and  
  acquisition processes.                                                  
     (b) Energy Efficiency Program.--The Secretary shall carry out a      
  program to significantly improve the energy efficiency of facilities of 
  the Department of Defense through 2010. The Secretary shall designate a 
  senior official of the Department of Defense to be responsible for      
  managing the program for the Department and a senior official of each   
  military department to be responsible for managing the program for such 
  department.                                                             
     (c) Energy Efficiency Goals.--The goal of the energy efficiency      
  program shall be to achieve reductions in energy consumption by         
  facilities of the Department of Defense as follows:                     
       (1) In the case of industrial and laboratory facilities, reductions 
   in the average energy consumption per square foot of such facilities,   
   per unit of production or other applicable unit, relative to energy     
   consumption in 1990--                                                   
     (A) by 20 percent by 2005; and                                        

     (B) by 25 percent by 2010.                                            

       (2) In the case of other facilities, reductions in average energy   
   consumption per gross square foot of such facilities, relative to energy
   consumption per gross square foot in 1985--                             
     (A) by 30 percent by 2005; and                                        

     (B) by 35 percent by 2010.                                            

     (d) Strategies for Improving Energy Efficiency.--In order to achieve 
  the goals set forth in subsection (c), the Secretary shall, to the      
  maximum extent practicable--                                            

       (1) purchase energy-efficient products, as so designated by the     
   Environmental Protection Agency and the Department of Energy, and other 
   products that are energy-efficient;                                     
       (2) utilize energy savings performance contracts, utility           
   energy-efficiency service contracts, and other contracts designed to    
   achieve energy conservation;                                            
       (3) use life-cycle cost analysis, including assessment of life-cycle
   energy costs, in making decisions about investments in products,        
   services, construction, and other projects;                             
       (4) conduct energy efficiency audits for approximately 10 percent of
   all Department of Defense facilities each year;                         
       (5) explore opportunities for energy efficiency in industrial       
   facilities for steam systems, boiler operation, air compressor systems, 
   industrial processes, and fuel switching; and                           
       (6) retire inefficient equipment on an accelerated basis where      
   replacement results in lower life-cycle costs.                          
     (e) Reporting Requirements.--Not later than January 1, 2002, and each
  January 1 thereafter through 2010, the Secretary shall submit to the    
  congressional defense committees the report required to be prepared by  
  the Secretary pursuant to section 303 of Executive Order 13123 (64 Fed. 
  Reg. 30851; 42 U.S.C. 8251 note) regarding the progress made toward     
  achieving the energy efficiency goals of the Department of Defense.     

                    SEC. 318. PROCUREMENT OF ALTERNATIVE FUELED AND HYBRID LIGHT  
          DUTY TRUCKS.                                                            
     (a) Defense Fleets Not Covered by Requirement in Energy Policy Act of
  1992.--(1) The Secretary of Defense shall coordinate with the           
  Administrator of General Services to ensure that only hybrid vehicles   
  are procured by the Administrator for the Department of Defense fleet of
  light duty trucks that is not in a fleet of vehicles to which section   
  303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) applies.         
     (2) The Secretary, in consultation with the Administrator, may waive 
  the policy regarding the procurement of hybrid vehicles in paragraph (1)
  to the extent that the Secretary determines necessary--                 
       (A) in the case of trucks that are exempt from the requirements of  
   section 303 of the Energy Policy Act of 1992 for national security      
   reasons under subsection (b)(3)(E) of such section, to meet specific    
   requirements of the Department of Defense for capabilities of light duty
   trucks;                                                                 
       (B) to procure vehicles consistent with the standards applicable to 
   the procurement of fleet vehicles for the Federal Government; or        
       (C) to adjust to limitations on the commercial availability of light
   duty trucks that are hybrid vehicles.                                   
     (3) This subsection applies with respect to procurements of light    
  duty trucks in fiscal year 2005 and subsequent fiscal years.            
     (b) Requirement To Exceed Requirement in Energy Policy Act of        
  1992.--(1) The Secretary of Defense shall coordinate with the           
  Administrator of General Services to ensure that, of the light duty     
  trucks procured in fiscal years after fiscal year 2004 for the fleets of
  light duty vehicles of the Department of Defense to which section 303 of
  the Energy Policy Act of 1992 applies--                                 
       (A) five percent of the total number of such trucks that are        
   procured in each of fiscal years 2005 and 2006 are alternative fueled   
   vehicles or hybrid vehicles; and                                        
       (B) ten percent of the total number of such trucks that are procured
   in each fiscal year after fiscal year 2006 are alternative fueled       
   vehicles or hybrid vehicles.                                            
     (2) Light duty trucks acquired for the Department of Defense that are
  counted to comply with section 303 of the Energy Policy Act of 1992 for 
  a fiscal year shall be counted to determine the total number of light   
  duty trucks procured for the Department of Defense for that fiscal year 
  for the purposes of paragraph (1), but shall not be counted to satisfy  
  the requirement in that paragraph.                                      

     (c) Report on Plans for Implementation.--At the same time that the   
  President submits the budget for fiscal year 2003 to Congress under     
  section 1105(a) of title 31, United States Code, the Secretary shall    
  submit to Congress a report summarizing the plans for carrying out      
  subsections (a) and (b).                                                
    (d)  Definitions.--In this section:                                   

       (1) The term ``hybrid vehicle'' means a motor vehicle that draws    
   propulsion energy from onboard sources of stored energy that are both-- 
     (A) an internal combustion or heat engine using combustible fuel; and 

     (B) a rechargeable energy storage system.                             

       (2) The term ``alternative fueled vehicle'' has the meaning given   
   that term in section 301 of the Energy Policy Act of 1992 (42 U.S.C.    
   13211).                                                                 

                    SEC. 319. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR
          CERTAIN RESPONSE COSTS IN CONNECTION WITH HOOPER SANDS SITE, SOUTH      
          BERWICK, MAINE.                                                         
     (a) Authority To Reimburse.--Using amounts specified in subsection   
  (c), the Secretary of the Navy may pay $1,005,478 to the Hooper Sands   
  Special Account within the Hazardous Substance Superfund established by 
  section 9507 of the Internal Revenue Code of 1986 to reimburse the      
  Environmental Protection Agency for the response costs incurred by the  
  Environmental Protection Agency for actions taken between May 12, 1992, 
  and July 31, 2000, pursuant to the Comprehensive Environmental Response,
  Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) at the 
  Hooper Sands site in South Berwick, Maine, in accordance with the       
  interagency agreement entered into by the Department of the Navy and the
  Environmental Protection Agency in January 2001.                        
     (b) Treatment of Reimbursement.--Payment of the amount authorized by 
  subsection (a) shall be in full satisfaction of amounts due from the    
  Department of the Navy to the Environmental Protection Agency for the   
  response costs described in that subsection.                            
     (c) Source of Funds.--Payment under subsection (a) shall be made     
  using amounts authorized to be appropriated by section 301(a)(15) to the
  Environmental Restoration Account, Navy, established by section         
  2703(a)(3) of title 10, United States Code.                             

          SEC. 320. RIVER MITIGATION STUDIES.                                     

     (a) Port of Orange, Sabine River.--The Secretary of Defense may      
  conduct a study regarding protruding structures and submerged objects   
  remaining from the World War II Navy ship building industry located at  
  the former Navy installation in Orange, Texas, which create navigational
  hazards along the Sabine River and surrounding the Port of Orange.      
     (b) Philadelphia Naval Shipyard, Delaware River.--The Secretary of   
  Defense may conduct a study regarding floating and partially submerged  
  debris possibly relating to the Philadelphia Naval Shipyard in that     
  portion of the Delaware River from Philadelphia, Pennsylvania, to the   
  mouth of the river which create navigational hazards along the river.   
     (c) Use of Existing Information.--In conducting a study authorized by
  this section, the Secretary of Defense shall take into account any      
  information available from other studies conducted in connection with   
  the same navigation channels.                                           
     (d) Consultation.--The Secretary of Defense shall conduct the studies
  authorized by this section in consultation with appropriate State and   
  local government entities and Federal agencies.                         
     (e) Report on Study Results.--Not later than April 30, 2002, the     
  Secretary of Defense shall submit to the Committee on Armed Services of 
  the House of Representatives and the Committee on Armed Services of the 
  Senate a report that--                                                  
       (1) summarizes the results of each study conducted under this       
   section; and                                                            
       (2) contains an evaluation by the Secretary of the extent to which  
   the navigational hazards identified in each study are the result of     
   Department of Defense activities.                                       

     (f) Cost Sharing.--Nothing in this section is intended to require    
  non-Federal cost sharing of the costs incurred by the Secretary of      
  Defense to conduct a study authorized by this section.                  
     (g) Relation to Other Laws and Agreements.--This section is not      
  intended to modify any authorities provided to the Secretary of the Army
  by the Water Resources Development Act of 1986 (33 U.S.C. 2201 et seq.),
  nor is it intended to modify any non-Federal cost-sharing               
  responsibilities outlined in any local cooperation agreements.          
           Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities     

          SEC. 331. COMMISSARY BENEFITS FOR NEW MEMBERS OF THE READY RESERVE.     

     (a) Eligibility.--Section 1063 of title 10, United States Code, is   
  amended--                                                               
       (1) by redesignating subsections (b) and (c) as subsections (c) and 
   (d), respectively; and                                                  
       (2) by inserting after subsection (a) the following new subsection  
   (b):                                                                    
     ``(b) Eligibility of New Members.--(1) The Secretary concerned shall 
  authorize a new member of the Ready Reserve to use commissary stores of 
  the Department of Defense for a number of days accruing at the rate of  
  two days for each month in which the member participates satisfactorily 
  in training required under section 10147(a)(1) of this title or section 
  502(a) of title 32, as the case may be.                                 
     ``(2) For the purposes of paragraph (1), a person shall be considered
  a new member of the Ready Reserve upon becoming a member and continuing 
  without a break in the membership until the earlier of--                
       ``(A) the date on which the member becomes eligible to use          
   commissary stores under subsection (a); or                              
       ``(B) December 31 of the first calendar year in which the membership
   has been continuous for the entire year.                                
     ``(3) A new member may not be authorized under this subsection to use
  commissary stores for more than 24 days for any calendar year.''.       
     (b) Required Documentation.--Subsection (d) of such section, as      
  redesignated by subsection (a)(1), is amended by adding at the end the  
  following new sentence: ``The regulations shall specify the required    
  documentation of satisfactory participation in training for the purposes
  of subsection (b).''.                                                   
     (c) Conforming Amendment.--Subsection (c) of such section, as        
  redesignated by subsection (a)(1), is amended by striking ``Subsection  
  (a)'' and inserting ``Subsections (a) and (b)''.                        
     (d) Clerical Amendments.--(1) The heading for such section is amended
  to read as follows:                                                     
          ``1063. Use of commissary stores: members of Ready Reserve'' .          

     (2) Subsection (a) of such section is amended by striking `` of Ready
  Reserve'' and inserting `` With 50 or More Creditable Points''.         
     (3) The item relating to such section in the table of sections at the
  beginning of chapter 54 of title 10, United States Code, is amended to  
  read as follows:                                                        


      ``1063. Use of commissary stores: members of Ready Reserve.''.          


                    SEC. 332. REIMBURSEMENT FOR USE OF COMMISSARY FACILITIES BY   
          MILITARY DEPARTMENTS FOR PURPOSES OTHER THAN COMMISSARY SALES.          
     (a) Requirement.--Chapter 147 of title 10, United States Code, is    
  amended by inserting after section 2482a the following new section:     
                    ``2483. Commissary stores: reimbursement for use of commissary
          facilities by military departments                                      
     ``(a) Payment Required.--The Secretary of a military department shall
  pay the Defense Commissary Agency the amount determined under subsection
  (b) for any use of a commissary facility by the military department for 
  a purpose other than commissary sales or operations in support of       
  commissary sales.                                                       
     ``(b) Amount.--The amount payable under subsection (a) for use of a  
  commissary facility by a military department shall be equal to the share
  of depreciation of the facility that is attributable to that use, as    
  determined under regulations prescribed by the Secretary of Defense.    
     ``(c) Covered Facilities.--This section applies with respect to a    
  commissary facility that is acquired, constructed, converted, expanded, 
  installed, or otherwise improved (in whole or in part) with the proceeds
  of an adjustment or surcharge applied under section 2486(c) of this     
  title.                                                                  
     ``(d) Crediting of Payments.--The Director of the Defense Commissary 
  Agency shall credit amounts paid under this section for use of a        
  facility to an appropriate account to which proceeds of an adjustment or
  surcharge referred to in subsection (c) are credited.''.                
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  2482a the following new item:                                           


            ``2483. Commissary stores: reimbursement for use of commissary    
      facilities by military departments.''.                                  

                    SEC. 333. PUBLIC RELEASES OF COMMERCIALLY VALUABLE INFORMATION
          OF COMMISSARY STORES.                                                   
     (a) Limitations and Authority.--Section 2487 of title 10, United     
  States Code, is amended to read as follows:                             
                    ``2487. Commissary stores: release of certain commercially    
          valuable information to the public                                      
     ``(a) Authority To Limit Release.--(1) The Secretary of Defense may  
  limit the release to the public of any information described in         
  paragraph (2) if the Secretary determines that it is in the best        
  interest of the Department of Defense to limit the release of such      
  information. If the Secretary determines to limit the release of any    
  such information, the Secretary may provide for limited release of such 
  information in accordance with subsection (b).                          
    ``(2) Paragraph (1) applies to the following:                         

       ``(A) Information contained in the computerized business systems of 
   commissary stores or the Defense Commissary Agency that is collected    
   through or in connection with the use of electronic scanners in         
   commissary stores, including the following information:                 
     ``(i) Data relating to sales of goods or services.                    

     ``(ii) Demographic information on customers.                          

       ``(iii) Any other information pertaining to commissary transactions 
   and operations.                                                         
       ``(B) Business programs, systems, and applications (including       
   software) relating to commissary operations that were developed with    
   funding derived from commissary surcharges.                             
     ``(b) Release Authority.--(1) The Secretary of Defense may, using    
  competitive procedures, enter into a contract to sell information       
  described in subsection (a)(2).                                         
     ``(2) The Secretary of Defense may release, without charge,          
  information on an item sold in commissary stores to the manufacturer or 
  producer of that item or an agent of the manufacturer or producer.      
     ``(3) The Secretary of Defense may, by contract entered into with a  
  business, grant to the business a license to use business programs      
  referred to in subsection (a)(2)(B), including software used in or      
  comprising any such program. The fee charged for the license shall be   
  based on the costs of similar programs developed and marketed by        
  businesses in the private sector, determined by means of surveys.       
     ``(4) Each contract entered into under this subsection shall specify 
  the amount to be paid for information released or a license granted     
  under the contract, as the case may be.                                 
     ``(c) Form of Release.--Information described in subsection (a)(2)   
  may not be released, under subsection (b) or otherwise, in a form that  
  identifies any customer or that provides information making it possible 
  to identify any customer.                                               
     ``(d) Receipts.--Amounts received by the Secretary under this section
  shall be credited to funds derived from commissary surcharges, shall be 
  merged with those funds, and shall be available for the same purposes as
  the funds with which merged.                                            
     ``(e) Definition.--In this section, the term `commissary surcharge'  
  means any adjustment or surcharge applied under section 2486(c) of this 
  title.''.                                                               
     (b) Clerical Amendment.--The table of sections at the beginning of   
  chapter 147 of title 10, United States Code, is amended by striking the 
  item relating to section 2487 and inserting the following new item:     


            ``2487. Commissary stores: release of certain commercially        
      valuable information to the public.''.                                  

                    SEC. 334. REBATE AGREEMENTS WITH PRODUCERS OF FOODS PROVIDED  
          UNDER SPECIAL SUPPLEMENTAL FOOD PROGRAM.                                
    Section 1060a of title 10, United States Code, is amended--           

       (1) by redesignating subsections (e) and (f) as subsections (f) and 
   (g), respectively; and                                                  
     (2) by inserting after subsection (d) the following new subsection:   

     ``(e) Rebate Agreements With Food Producers.--(1) In the             
  administration of the program under this section, the Secretary of      
  Defense may enter into a contract with a producer of a particular brand 
  of food that provides for--                                             
       ``(A) the Secretary of Defense to procure that particular brand of  
   food, exclusive of other brands of the same or similar food, for the    
   purpose of providing the food in commissary stores of the Department of 
   Defense as a supplemental food under the program; and                   
       ``(B) the producer to rebate to the Secretary amounts equal to      
   agreed portions of the amounts paid by the Secretary for the procurement
   of that particular brand of food for the program.                       
     ``(2) The Secretary of Defense shall use competitive procedures under
  chapter 137 of this title to enter into contracts under this subsection.
     ``(3) The period covered by a contract entered into under this       
  subsection may not exceed one year. No such contract may be extended by 
  a modification of the contract, by exercise of an option, or by any     
  other means. Nothing in this paragraph prohibits a contractor under a   
  contract entered into under this subsection for any year from submitting
  an offer for, and being awarded, a contract that is to be entered into  
  under this subsection for a successive year.                            
     ``(4) Amounts rebated under a contract entered into under paragraph  
  (1) shall be credited to the appropriation available for carrying out   
  the program under this section in the fiscal year in which rebated,     
  shall be merged with the other sums in that appropriation, and shall be 
  available for the program for the same period as the other sums in the  
  appropriation.''.                                                       

                    SEC. 335. CIVIL RECOVERY FOR NONAPPROPRIATED FUND             
          INSTRUMENTALITY COSTS RELATED TO SHOPLIFTING.                           
     Section 3701(b)(1)(B) of title 31, United States Code, is amended by 
  inserting before the comma at the end the following: ``, including      
  actual and administrative costs related to shoplifting, theft detection,
  and theft prevention''.                                                 
           Subtitle D--Workforce and Depot Issues                                  


                    SEC. 341. REVISION OF AUTHORITY TO WAIVE LIMITATION ON        
          PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.                                 
    Section 2466 of title 10, United States Code, is amended--            

     (1) by striking subsection (c); and                                   

     (2) by inserting after subsection (a) the following new subsections:  

     ``(b) Waiver of Limitation.--The Secretary of Defense may waive the  
  limitation in subsection (a) for a fiscal year if--                     
       ``(1) the Secretary determines that the waiver is necessary for     
   reasons of national security; and                                       
       ``(2) the Secretary submits to Congress a notification of the waiver
   together with the reasons for the waiver.                               
     ``(c) Prohibition on Delegation of Waiver Authority.--The authority  
  to grant a waiver under subsection (b) may not be delegated.''.         

                    SEC. 342. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION ON
          PRIVATE SECTOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.                  
    Section 2474 of title 10, United States Code, is amended--            

     (1) by redesignating subsection (f) as subsection (g); and            

       (2) by inserting after subsection (e) the following new subsection  
   (f):                                                                    
     ``(f) Exclusion of Certain Expenditures From Percentage              
  Limitation.--(1) Amounts expended out of funds described in paragraph   
  (2) for the performance of a depot-level maintenance and repair workload
  by non-Federal Government personnel at a Center of Industrial and       
  Technical Excellence shall not be counted for purposes of applying the  
  percentage limitation in section 2466(a) of this title if the personnel 
  are provided by private industry or other entities outside the          
  Department of Defense pursuant to a public-private partnership.         
     ``(2) The funds referred to in paragraph (1) are funds available to  
  the military departments and Defense Agencies for depot-level           
  maintenance and repair workloads for fiscal years 2002 through 2005.    
     ``(3) All funds covered by paragraph (1) shall be included as a      
  separate item in the reports required under paragraphs (1), (2), and (3)
  of section 2466(e) of this title.''.                                    

                    SEC. 343. PROTECTIONS FOR PURCHASERS OF ARTICLES AND SERVICES 
          MANUFACTURED OR PERFORMED BY WORKING-CAPITAL FUNDED INDUSTRIAL          
          FACILITIES OF THE DEPARTMENT OF DEFENSE.                                
     (a) General Rule.--Section 2563(c) of title 10, United States Code,  
  is amended--                                                            
       (1) in paragraph (1)(B), by striking ``in any case of willful       
   misconduct or gross negligence'' and inserting ``as provided in         
   paragraph (3)''; and                                                    
     (2) by adding at the end the following new paragraph:                 

     ``(3) Paragraph (1)(B) does not apply in any case of willful         
  misconduct or gross negligence or in the case of a claim by a purchaser 
  of articles or services under this section that damages or injury arose 
  from the failure of the Government to comply with quality, schedule, or 
  cost performance requirements in the contract to provide the articles or
  services.''.                                                            
     (b) Conforming Amendment.--Section 2474(e)(2)(B)(i) of such title is 
  amended by striking ``in a case of willful conduct or gross negligence''
  and inserting ``under the circumstances described in section 2563(c)(3) 
  of this title''.                                                        

                    SEC. 344. REVISION OF DEADLINE FOR ANNUAL REPORT ON COMMERCIAL
          AND INDUSTRIAL ACTIVITIES.                                              
     Section 2461(g) of title 10, United States Code, is amended by       
  striking ``February 1'' and inserting ``June 30''.                      

          SEC. 345. PILOT MANPOWER REPORTING SYSTEM IN DEPARTMENT OF THE ARMY.    

     (a) Annual Reporting Requirement.--Not later than March 1 of each of 
  the fiscal years 2002 through 2004, the Secretary of the Army shall     
  submit to Congress a report describing the use during the previous      
  fiscal year of non-Federal entities to provide services to the          
  Department of the Army.                                                 
     (b) Content of Report.--Using information available from existing    
  data collection and reporting systems available to the Department of the
  Army and the non-Federal entities referred to in subsection (a), the    
  report shall--                                                          
       (1) specify the number of work year equivalents performed by        
   individuals employed by non-Federal entities in providing services to   
   the Department;                                                         
       (2) categorize the information by Federal supply class or service   
   code; and                                                               
       (3) indicate the appropriation from which the services were funded  
   and the major organizational element of the Department procuring the    
   services.                                                               
     (c) Limitation on Requirement for Non-Federal Entities to Provide    
  Information.--For the purposes of meeting the requirements set forth in 
  subsection (b), the Secretary of the Army may not require the provision 
  of information beyond the information that is currently provided to the 
  Department of the Army by the non-Federal entities referred to in       
  subsection (a), except for the number of work year equivalents          
  associated with Department of the Army contracts, identified by contract
  number, to the extent this information is available to the contractor   
  from existing data collection systems.                                  
     (d) Repeal of Obsolete Reporting Requirement.--Section 343 of the    
  National Defense Authorization Act for Fiscal Year 2000 (Public Law 106 
  65; 113 Stat. 569) is repealed.                                         

                    SEC. 346. DEVELOPMENT OF ARMY WORKLOAD AND PERFORMANCE SYSTEM 
          AND WHOLESALE LOGISTICS MODERNIZATION PROGRAM.                          
     (a) Relationship Between Systems.--(1) The Army Workload and         
  Performance System, including all applications in the master plan       
  submitted to Congress on June 8, 2001, and any revisions to the master  
  plan, shall be developed in such a manner that its functionality and    
  identity are in compliance with all statutory requirements. The Army    
  Workload and Performance System shall continue as a standard Army-wide  
  manpower system under the supervision and management of the Secretary of
  the Army.                                                               
     (2) The requirement in paragraph (1) is intended to encourage the    
  sharing of data between the Army Workload and Performance System and the
  Wholesale Logistics Modernization Program and the development of the    
  processes necessary to permit or enhance such data sharing.             
     (b) Annual Progress Reports.--(1) Not later than February 1 of each  
  year, the Secretary of the Army shall submit to Congress a progress     
  report on the implementation of the master plan for the Army Workload   
  and Performance System during the preceding year. The report shall      
  specifically address any changes made to the master plan since the      
  previous report.                                                        
     (2) The reporting requirement shall terminate when the Secretary     
  certifies to Congress that the Army Workload and Performance System is  
  fully implemented.                                                      
     (c) GAO Evaluation.--Not later than 60 days after the Secretary of   
  the Army submits to Congress a progress report under subsection (b), the
  Comptroller General shall submit to Congress an evaluation of the       
  report.                                                                 
     (d) Army Workload and Performance System Defined.--The term ``Army   
  Workload and Performance System'' includes all applications in the      
  master plan for the System submitted to Congress on June 8, 2001, and   
  any revision of such master plan.                                       
           Subtitle E--Defense Dependents Education                                


                    SEC. 351. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT       
          BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF     
          DEFENSE CIVILIAN EMPLOYEES.                                             
     (a) Continuation of Department of Defense Program for Fiscal Year    
  2002.--Of the amount authorized to be appropriated pursuant to section  
  301(a)(5) for operation and maintenance for Defense-wide activities--   
       (1) $30,000,000 shall be available only for the purpose of providing
   educational agencies assistance to local educational agencies; and      
       (2) $1,000,000 shall be available only for the purpose of making    
   payments to local educational agencies to assist such agencies in       
   adjusting to reductions in the number of military dependent students as 
   a result of the closure or realignment of military installations, as    
   provided in section 386(d) of the National Defense Authorization Act for
   Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note).             
     (b) Notification.--Not later than June 30, 2002, the Secretary of    
  Defense shall notify each local educational agency that is eligible for 
  assistance or a payment under subsection (a) for fiscal year 2002 of--  
     (1) that agency's eligibility for the assistance or payment; and      

       (2) the amount of the assistance or payment for which that agency is
   eligible.                                                               
     (c) Disbursement of Funds.--The Secretary of Defense shall disburse  
  funds made available under subsection (a) not later than 30 days after  
  the date on which notification to the eligible local educational        
  agencies is provided pursuant to subsection (b).                        
    (d)  Definitions.--In this section:                                   

       (1) The term ``educational agencies assistance'' means assistance   
   authorized under section 386(b) of the National Defense Authorization   
   Act for Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note).     
       (2) The term ``local educational agency'' has the meaning given that
   term in section 8013(9) of the Elementary and Secondary Education Act of
   1965 (20 U.S.C. 7713(9)).                                               

          SEC. 352. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.             

     Of the amount authorized to be appropriated pursuant to section      
  301(a)(5) for operation and maintenance for Defense-wide activities,    
  $5,000,000 shall be available for payments under section 363 of the     
  Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
  (as enacted into law by Public Law 106 398; 114 Stat. 1654A 77; 20      
  U.S.C. 7703a).                                                          

                    SEC. 353. AVAILABILITY OF AUXILIARY SERVICES OF DEFENSE       
          DEPENDENTS' EDUCATION SYSTEM FOR DEPENDENTS WHO ARE HOME SCHOOL         
          STUDENTS.                                                               
     Section 1407 of the Defense Dependents' Education Act of 1978 (20    
  U.S.C. 926) is amended--                                                
     (1) by redesignating subsection (d) as subsection (e); and            

     (2) by inserting after subsection (c) the following new subsection:   

     ``(d) Auxiliary Services Available to Home School Students.--(1) A   
  dependent who is educated in a home school setting, but who is eligible 
  to enroll in a school of the defense dependents' education system, shall
  be permitted to use or receive auxiliary services of that school without
  being required to either enroll in that school or register for a minimum
  number of courses offered by that school. The dependent may be required 
  to satisfy other eligibility requirements and comply with standards of  
  conduct applicable to students actually enrolled in that school who use 
  or receive the same auxiliary services.                                 
     ``(2) For purposes of paragraph (1), the term `auxiliary services'   
  includes use of academic resources, access to the library of the school,
  after hours use of school facilities, and participation in music,       
  sports, and other extracurricular and interscholastic activities.''.    

                    SEC. 354. COMPTROLLER GENERAL STUDY OF ADEQUACY OF            
          COMPENSATION PROVIDED FOR TEACHERS IN THE DEPARTMENT OF DEFENSE OVERSEAS
          DEPENDENTS' SCHOOLS.                                                    
     (a) GAO Study Required.--The Comptroller General shall carry out a   
  study of the adequacy of the pay and other elements of the compensation 
  provided for teachers in the defense dependents' education system       
  established under the Defense Dependents' Education Act of 1978 (20     
  U.S.C. 921 et seq.).                                                    

     (b) Specific Considerations.--In carrying out the study, the         
  Comptroller General shall consider the following issues:                
       (1) Whether the compensation is adequate for recruiting and         
   retaining high quality teachers.                                        
       (2) Whether any revision of the Defense Department Overseas Teachers
   Pay and Personnel Practices Act (20 U.S.C. 901 et seq.) or the          
   regulations under that Act is advisable to address any problems         
   identified with respect to the recruitment and retention of high quality
   teachers or for other purposes.                                         
     (c) Report.--Not later than May 1, 2002, the Comptroller General     
  shall submit to Congress a report containing the results of the study,  
  including--                                                             
       (1) the Comptroller General's conclusions on the issues considered; 
   and                                                                     
       (2) any recommendations for actions that the Comptroller General    
   considers appropriate.                                                  
           Subtitle F--Other Matters                                               


                    SEC. 361. AVAILABILITY OF EXCESS DEFENSE PERSONAL PROPERTY TO 
          SUPPORT DEPARTMENT OF VETERANS AFFAIRS INITIATIVE TO ASSIST HOMELESS    
          VETERANS.                                                               
     (a) Transfer Authority.--Subsection (a) of section 2557 of title 10, 
  United States Code, is amended--                                        
       (1) by striking ``The Secretary'' and inserting ``(1) The           
   Secretary''; and                                                        
     (2) by adding at the end the following new paragraph:                 

     ``(2) The Secretary of Defense may make excess clothing, shoes,      
  sleeping bags, and related nonlethal excess supplies available to the   
  Secretary of Veterans Affairs for distribution to homeless veterans and 
  programs assisting homeless veterans. The transfer of nonlethal excess  
  supplies to the Secretary of Veterans Affairs under this paragraph shall
  be without reimbursement.''.                                            
     (b) Clerical Amendments.--(1) The heading of such section is amended 
  to read as follows:                                                     
                    ``2557. Excess nonlethal supplies: availability for homeless  
          veteran initiatives and humanitarian relief''.                          
     (2) The table of sections at the beginning of chapter 152 of such    
  title is amended by striking the item relating to section 2557 and      
  inserting the following new item:                                       


            ``2557. Excess nonlethal supplies: availability for homeless      
      veteran initiatives and humanitarian relief.''.                         

                    SEC. 362. INCREMENTAL IMPLEMENTATION OF NAVY-MARINE CORPS     
          INTRANET CONTRACT.                                                      
     (a) Additional Phase-In Authority.--Section 814 of the Floyd D.      
  Spence National Defense Authorization Act for Fiscal Year 2001 (as      
  enacted into law by Public Law 106 398; 114 Stat. 1654A 215) is         
  amended--                                                               
       (1) by redesignating subsections (c), (d), (e), and (f) as          
   subsections (f), (g), (h), and (i), respectively; and                   
     (2) by inserting after subsection (b) the following new subsections:  

     ``(c) Additional Phase-In Authority Pending Second Joint             
  Certification.--(1)(A) Notwithstanding subsection (b)(3), the Secretary 
  of the Navy may order additional work stations under the Navy-Marine    
  Corps Intranet contract in excess of the number provided in the first   
  increment of the contract under subsection (b)(2), but not to exceed an 
  additional 100,000 work stations. The authority of Secretary of the Navy
  to order additional work stations under this paragraph is subject to    
  approval by both the Under Secretary of Defense for Acquisition,        
  Technology, and Logistics and the Chief Information Officer of the      
  Department of Defense.                                                  
     ``(B) The Under Secretary of Defense for Acquisition, Technology, and
  Logistics and the Chief Information Officer of the Department of Defense
  may not grant approval to the Secretary of the Navy to order additional 
  work stations under subparagraph (A) until a three-phase customer test  
  and evaluation, observed by the Department of Defense, is completed for 
  a statistically significant representative sample of the work stations  
  operating on the Navy-Marine Corps Intranet. The test and evaluation    
  shall include end user testing of day-to-day operations (including      
  e-mail capability and performance), scenario-driven events, and         
  scenario-based interoperability testing.                                
     ``(2)(A) Notwithstanding subsection (b)(3), the Secretary of the Navy
  may order additional work stations under the Navy-Marine Corps Intranet 
  contract in excess of the number provided in the first increment of the 
  contract under subsection (b)(2) and the number ordered under the       
  authority of paragraph (1), but not to exceed an additional 150,000 work
  stations. The authority of Secretary of the Navy to order additional    
  work stations under this paragraph is also subject to approval by both  
  the Under Secretary of Defense for Acquisition, Technology, and         
  Logistics and the Chief Information Officer of the Department of        
  Defense.                                                                
     ``(B) The Under Secretary of Defense for Acquisition, Technology, and
  Logistics and the Chief Information Officer of the Department of Defense
  may not grant approval to the Secretary of the Navy to order additional 
  work stations under subparagraph (A) until each of the following occurs:
       ``(i) There has been a full transition of not less than 20,000 work 
   stations to the Navy-Marine Corps Intranet.                             
       ``(ii) The work stations referred to in clause (i) have met         
   applicable service-level agreements specified in the Navy-Marine Corps  
   Intranet contract, as determined by contractor performance measurement  
   under oversight by the Department of the Navy.                          
       ``(iii) The Chief Information Officer of the Navy certifies to the  
   Secretary of the Navy and the Chief Information Officer of the          
   Department of Defense that the results of the performance evaluation    
   referred to in clause (ii) are acceptable.                              
     ``(3) Of the work stations ordered under the authority provided by   
  paragraph (2), not more than 50 percent may reach the major milestone   
  known as `assumption of responsibility' until each of the following     
  occurs:                                                                 
       ``(A) All work stations for the headquarters of the Naval Air       
   Command have met applicable service-level agreements specified in the   
   Navy-Marine Corps Intranet contract, as determined by contractor        
   performance measurement under oversight by the Department of the Navy.  
       ``(B) The Chief Information Officer of the Navy certifies to the    
   Secretary of the Navy and the Chief Information Officer of the          
   Department of Defense that the results of the performance evaluation    
   referred to in subparagraph (B) are acceptable.                         
     ``(4) For the purposes of this section, when the information         
  infrastructure and systems of a user of a work station are transferred  
  into Navy-Marine Corps Intranet infrastructure and systems under the    
  Navy-Marine Corps Intranet contract consistent with the applicable      
  service-level agreements specified in the Navy-Marine Corps Intranet    
  contract, the work station shall be considered as having been provided  
  for the Navy-Marine Corps Intranet.                                     
     ``(d) Reporting and Review Requirements.--(1) If work stations are   
  ordered using the authority provided by paragraph (1) or (2) of         
  subsection (c), the Secretary of the Navy shall submit to Congress a    
  report, current as of the date the determination is made to order the   
  work stations, on the following:                                        
       ``(A) The number of work stations operating on the Navy-Marine Corps
   Intranet, including the number of work stations regarding which         
   assumption of responsibility has occurred.                              
       ``(B) The status of testing and implementation of the Navy-Marine   
   Corps Intranet program.                                                 
       ``(C) The number of work stations to be ordered under paragraph (1) 
   or (2) of subsection (c), whichever applies.                            
     ``(2) A report containing the information required by paragraph (1)  
  shall also be submitted to Congress when the requirements of paragraph  
  (3) of subsection (c) are satisfied and additional work stations under  
  the Navy-Marine Corps Intranet contract are authorized to reach         
  assumption of responsibility.                                           
     ``(3) The Comptroller General shall conduct a review of the impact   
  that participation in the Navy-Marine Corps Intranet program has on     
  information technology costs of working capital funded industrial       
  facilities of the Department of the Navy and submit the results of the  
  review to Congress.''.                                                  
     (b) Navy-Marine Corps Intranet Manager.--Such section is further     
  amended by inserting after subsection (d), as added by subsection (a)(2)
  of this section, the following new subsection:                          
     ``(e) Assignment of Navy-Marine Corps Intranet Manager.--The         
  Secretary of the Navy shall assign an employee of the Department of the 
  Navy to the Navy-Marine Corps Intranet program whose sole responsibility
  will be to oversee and direct the program. The employee so assigned may 
  not also be the program executive officer.''.                           
     (c) Definitions.--Subsection (i) of such section, as redesignated by 
  subsection (a)(1) of this section, is amended--                         
       (1) by striking `` Navy-Marine Corps Intranet Contract Defined.--'' 
   and inserting `` Definitions.--(1)''; and                               
     (2) by adding at the end the following new paragraph:                 

       ``(2) In this section, the term `assumption of responsibility', with
   respect to a work station, means the point at which the contractor team 
   under the Navy-Marine Corps Intranet contract assumes operational       
   control of, and responsibility for, the existing information            
   infrastructure and systems of a work station, in order to prepare for   
   ultimate transition of the work station to the Navy-Marine Corps        
   Intranet.''.                                                            

                    SEC. 363. COMPTROLLER GENERAL STUDY AND REPORT OF NATIONAL    
          GUARD DISTRIBUTIVE TRAINING TECHNOLOGY PROJECT.                         
     (a) Study Required.--The Comptroller General of the United States    
  shall conduct a study of the Distributive Training Technology Project of
  the National Guard. The study shall examine--                           

       (1) current requirements of the National Guard for interconnection  
   of networks of the Distributive Training Technology Project with other  
   networks, including networks of the Federal Emergency Management Agency 
   and other Federal, State, and local emergency preparedness and response 
   agencies; and                                                           
       (2) future requirements of the National Guard for interconnection of
   networks of the Project with other networks, including those Federal and
   State agencies having disaster response functions.                      
     (b) Elements of Study.--For both the current requirements identified 
  under subsection (a)(1) and future requirements identified under        
  subsection (a)(2), the study shall examine the following:               
     (1) Appropriate connections between the Project and other networks.   

     (2) Means of protecting the Project from outside intrusion.           

       (3) Impediments to interconnectivity, including the extent to which 
   national security concerns affect interconnectivity and the             
   technological capability of the Department of Defense to impede         
   interconnectivity, as well as other concerns or limitations that affect 
   interconnectivity.                                                      
     (4) Means of improving interconnectivity.                             

     (c) Report.--Not later than 270 days after the date of the enactment 
  of this Act, the Comptroller General shall submit to the Committee on   
  Armed Services of the Senate and the Committee on Armed Services of the 
  House of Representatives a report on the study conducted under          
  subsection (a). The report shall describe the results of the study and  
  shall include any recommendations that the Comptroller General considers
  appropriate in light of the study.                                      

          SEC. 364. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT PROGRAM.    

     (a) Extension of Authority.--Subsection (f) of section 391 of the    
  National Defense Authorization Act for Fiscal Year 1998 (Public Law 105 
  85; 10 U.S.C. 2304 note) is amended by striking ``September 30, 2000''  
  and inserting ``September 30, 2003''.                                   
     (b) Reporting Requirements.--Subsection (g) of such section is       
  amended--                                                               
       (1) in paragraph (1), by striking ``January 1, 2001'' and inserting 
   ``January 1, 2003''; and                                                
       (2) in paragraph (2), by striking ``March 1, 2001'' and inserting   
   ``March 1, 2003''.                                                      

                    SEC. 365. EVALUATION OF CURRENT DEMONSTRATION PROGRAMS TO     
          IMPROVE QUALITY OF PERSONAL PROPERTY SHIPMENTS OF MEMBERS.              
     (a) Completion of Evaluation; Report.--Not later than March 31, 2002,
  the Secretary of Defense shall complete the ongoing evaluation of all   
  test programs regarding the transportation of household goods for       
  members of the Armed Forces and submit to Congress a report containing  
  the results of such evaluation.                                         
    (b)  Contents of Report.--The report shall include--                  

       (1) the results of each test program evaluated, including whether   
   the test program satisfied the goals for the movement of such household 
   goods (as contained in the General Accounting Report NSIAD 97 49) and   
   whether current business processes and information technology           
   capabilities require upgrading or other changes to improve the          
   transportation of such household goods; and                             
       (2) recommendations for policy improvements for military household  
   moves worldwide, including an estimate of the cost to implement each    
   recommendation.                                                         

                    SEC. 366. SENSE OF CONGRESS REGARDING SECURITY TO BE PROVIDED 
          AT 2002 WINTER OLYMPIC GAMES.                                           
     It is the sense of Congress that the Secretary of Defense, upon      
  receipt of the certification of the Attorney General required by section
  2564(a) of title 10, United States Code, should authorize the provision 
  of assistance in support of essential security and safety at the 2002   
  Winter Olympic Games to be held in Salt Lake City, Utah, and other      
  locations in the State of Utah.                                         

           TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS                             


                                                                              

                                  SUBTITLE A--ACTIVE FORCES                       

      Sec. 401. End strengths for active forces.                              

      Sec. 402. Revision in permanent end strength minimum levels.            

            Sec. 403. Increase in senior enlisted active duty grade limit for 
      Navy, Marine Corps, and Air Force.                                      
                                 SUBTITLE B--RESERVE FORCES                       

      Sec. 411. End strengths for Selected Reserve.                           

            Sec. 412. End strengths for Reserves on active duty in support of 
      the reserves.                                                           
      Sec. 413. End strengths for military technicians (dual status).         

      Sec. 414. Fiscal year 2002 limitation on non-dual status technicians.   

            Sec. 415. Limitations on numbers of reserve personnel serving on  
      active duty or full-time National Guard duty in certain grades for      
      administration of reserve components.                                   
                  SUBTITLE C--OTHER MATTERS RELATING TO PERSONNEL STRENGTHS       

      Sec. 421. Administration of end strengths.                              

            Sec. 422. Active duty end strength exemption for National Guard   
      and reserve personnel performing funeral honors functions.              
                         SUBTITLE D--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 431. Authorization of appropriations for military personnel.       


           Subtitle A--Active Forces                                               

          SEC. 401. END STRENGTHS FOR ACTIVE FORCES.                              

     The Armed Forces are authorized strengths for active duty personnel  
  as of September 30, 2002, as follows:                                   
     (1) The Army, 480,000.                                                

     (2) The Navy, 376,000.                                                

     (3) The Marine Corps, 172,600.                                        

     (4) The Air Force, 358,800.                                           

          SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.            

    Section 691(b) of title 10, United States Code, is amended--          

       (1) in paragraph (2), by striking ``372,000'' and inserting         
   ``376,000''; and                                                        
       (2) in paragraph (4), by striking ``357,000'' and inserting         
   ``358,800''.                                                            

                    SEC. 403. INCREASE IN SENIOR ENLISTED ACTIVE DUTY GRADE LIMIT 
          FOR NAVY, MARINE CORPS, AND AIR FORCE.                                  
     Section 517(a) of title 10, United States Code, is amended by        
  striking ``2 percent (or, in the case of the Army, 2.5 percent)'' and   
  inserting ``2.5 percent''.                                              
           Subtitle B--Reserve Forces                                              

          SEC. 411. END STRENGTHS FOR SELECTED RESERVE.                           

     (a) In General.--The Armed Forces are authorized strengths for       
  Selected Reserve personnel of the reserve components as of September 30,
  2002, as follows:                                                       
     (1) The Army National Guard of the United States, 350,000.            

     (2) The Army Reserve, 205,000.                                        

     (3) The Naval Reserve, 87,000.                                        

     (4) The Marine Corps Reserve, 39,558.                                 

     (5) The Air National Guard of the United States, 108,400.             

     (6) The Air Force Reserve, 74,700.                                    

     (7) The Coast Guard Reserve, 8,000.                                   

     (b) Adjustments.--The end strengths prescribed by subsection (a) for 
  the Selected Reserve of any reserve component shall be proportionately  
  reduced by--                                                            
       (1) the total authorized strength of units organized to serve as    
   units of the Selected Reserve of such component which are on active duty
   (other than for training) at the end of the fiscal year; and            
       (2) the total number of individual members not in units organized to
   serve as units of the Selected Reserve of such component who are on     
   active duty (other than for training or for unsatisfactory participation
   in training) without their consent at the end of the fiscal year.       
    Whenever such units or such individual members are released from      
  active duty during any fiscal year, the end strength prescribed for such
  fiscal year for the Selected Reserve of such reserve component shall be 
  proportionately increased by the total authorized strengths of such     
  units and by the total number of such individual members.               
                    SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT
          OF THE RESERVES.                                                        
     Within the end strengths prescribed in section 411(a), the reserve   
  components of the Armed Forces are authorized, as of September 30, 2002,
  the following number of Reserves to be serving on full-time active duty 
  or full-time duty, in the case of members of the National Guard, for the
  purpose of organizing, administering, recruiting, instructing, or       
  training the reserve components:                                        
     (1) The Army National Guard of the United States, 23,698.             

     (2) The Army Reserve, 13,406.                                         

     (3) The Naval Reserve, 14,811.                                        

     (4) The Marine Corps Reserve, 2,261.                                  

     (5) The Air National Guard of the United States, 11,591.              

     (6) The Air Force Reserve, 1,437.                                     

          SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).         

     The minimum number of military technicians (dual status) as of the   
  last day of fiscal year 2002 for the reserve components of the Army and 
  the Air Force (notwithstanding section 129 of title 10, United States   
  Code) shall be the following:                                           
     (1) For the Army Reserve, 6,249.                                      

     (2) For the Army National Guard of the United States, 23,615.         

     (3) For the Air Force Reserve, 9,818.                                 

     (4) For the Air National Guard of the United States, 22,422.          

          SEC. 414. FISCAL YEAR 2002 LIMITATION ON NON-DUAL STATUS TECHNICIANS.   

     (a) Limitation.--The number of non-dual status technicians employed  
  by the reserve components of the Army and the Air Force as of September 
  30, 2002, may not exceed the following:                                 

     (1) For the Army Reserve, 1,095.                                      

     (2) For the Army National Guard of the United States, 1,600.          

     (3) For the Air Force Reserve, 90.                                    

     (4) For the Air National Guard of the United States, 350.             

     (b) Non-Dual Status Technicians Defined.--In this section, the term  
  ``non-dual status technician'' has the meaning given that term in       
  section 10217(a) of title 10, United States Code.                       

                    SEC. 415. LIMITATIONS ON NUMBERS OF RESERVE PERSONNEL SERVING 
          ON ACTIVE DUTY OR FULL-TIME NATIONAL GUARD DUTY IN CERTAIN GRADES FOR   
          ADMINISTRATION OF RESERVE COMPONENTS.                                   
     (a) Officers.--The text of section 12011 of title 10, United States  
  Code, is amended to read as follows:                                    
     ``(a) Limitations.--(1) Of the total number of members of a reserve  
  component who are serving on full-time reserve component duty at the end
  of any fiscal year, the number of those members who may be serving in   
  each of the grades of major, lieutenant colonel, and colonel may not, as
  of the end of that fiscal year, exceed the number determined in         
  accordance with the following table:                                    


                                                                               

``Total number of members of a reserve component serving on full-time reserve component duty:    Number of officers of that reserve component who may be serving in the grade of:    

                                                                                                  Major    Lieutenant Colonel  Colonel    

Army Reserve:                                                                                                                             
10,000                                                                                            1,390                   740  230        
11,000                                                                                            1,529                   803  242        
12,000                                                                                            1,668                   864  252        
13,000                                                                                            1,804                   924  262        
14,000                                                                                            1,940                   984  272        
15,000                                                                                            2,075                 1,044  282        
16,000                                                                                            2,210                 1,104  291        
17,000                                                                                            2,345                 1,164  300        
18,000                                                                                            2,479                 1,223  309        
19,000                                                                                            2,613                 1,282  318        
20,000                                                                                            2,747                 1,341  327        
21,000                                                                                            2,877                 1,400  336        
                                                                                                                                          
Army National Guard:                                                                                                                      
20,000                                                                                            1,500                   850  325        
22,000                                                                                            1,650                   930  350        
24,000                                                                                            1,790                 1,010  370        
26,000                                                                                            1,930                 1,085  385        
28,000                                                                                            2,070                 1,160  400        
30,000                                                                                            2,200                 1,235  405        
32,000                                                                                            2,330                 1,305  408        
34,000                                                                                            2,450                 1,375  411        
36,000                                                                                            2,570                 1,445  411        
38,000                                                                                            2,670                 1,515  411        
40,000                                                                                            2,770                 1,580  411        
42,000                                                                                            2,837                 1,644  411        
                                                                                                                                          
Marine Corps Reserve:                                                                                                                     
1,100                                                                                               106                    56  20         
1,200                                                                                               110                    60  21         
1,300                                                                                               114                    63  22         
1,400                                                                                               118                    66  23         
1,500                                                                                               121                    69  24         
1,600                                                                                               124                    72  25         
1,700                                                                                               127                    75  26         
1,800                                                                                               130                    78  27         
1,900                                                                                               133                    81  28         
2,000                                                                                               136                    84  29         
2,100                                                                                               139                    87  30         
2,200                                                                                               141                    90  31         
2,300                                                                                               143                    92  32         
2,400                                                                                               145                    94  33         
2,500                                                                                               147                    96  34         
2,600                                                                                               149                    98  35         
                                                                                                                                          
Air Force Reserve:                                                                                                                        
500                                                                                                  83                    85  50         
1,000                                                                                               155                   165  95         
1,500                                                                                               220                   240  135        
2,000                                                                                               285                   310  170        
2,500                                                                                               350                   369  203        
3,000                                                                                               413                   420  220        
3,500                                                                                               473                   464  230        
4,000                                                                                               530                   500  240        
4,500                                                                                               585                   529  247        
5,000                                                                                               638                   550  254        
5,500                                                                                               688                   565  261        
6,000                                                                                               735                   575  268        
7,000                                                                                               770                   595  280        
8,000                                                                                               805                   615  290        
10,000                                                                                              835                   635  300        
                                                                                                                                          
Air National Guard:                                                                                                                       
5,000                                                                                               333                   335  251        
6,000                                                                                               403                   394  260        
7,000                                                                                               472                   453  269        
8,000                                                                                               539                   512  278        
9,000                                                                                               606                   571  287        
10,000                                                                                              673                   630  296        
11,000                                                                                              740                   688  305        
12,000                                                                                              807                   742  314        
13,000                                                                                              873                   795  323        
14,000                                                                                              939                   848  332        
15,000                                                                                            1,005                   898  341        
16,000                                                                                            1,067                   948  350        
17,000                                                                                            1,126                   998  359        
18,000                                                                                            1,185                 1,048  368        
19,000                                                                                            1,235                 1,098  377        
20,000                                                                                            1,283                 1,148  380.       


     ``(2) Of the total number of members of the Naval Reserve who are    
  serving on full-time reserve component duty at the end of any fiscal    
  year, the number of those members who may be serving in each of the     
  grades of lieutenant commander, commander, and captain may not, as of   
  the end of that fiscal year, exceed the number determined in accordance 
  with the following table:                                               


                                                                               

``Total number of members of Naval Reserve serving on full-time reserve component duty     Number of officers who may be serving in the grade of:    

                                                                                           Lieutenant commander    Commander  Captain    

10,000                                                                                                      807          447  141        
11,000                                                                                                      867          467  153        
12,000                                                                                                      924          485  163        
13,000                                                                                                      980          503  173        
14,000                                                                                                    1,035          521  183        
15,000                                                                                                    1,088          538  193        
16,000                                                                                                    1,142          555  203        
17,000                                                                                                    1,195          565  213        
18,000                                                                                                    1,246          575  223        
19,000                                                                                                    1,291          585  233        
20,000                                                                                                    1,334          595  242        
21,000                                                                                                    1,364          603  250        
22,000                                                                                                    1,384          610  258        
23,000                                                                                                    1,400          615  265        
24,000                                                                                                    1,410          620  270.       


     ``(b) Determinations by Interpolation.--If the total number of       
  members of a reserve component serving on full-time reserve component   
  duty is between any two consecutive numbers in the first column of the  
  appropriate table in paragraph (1) or (2) of subsection (a), the        
  corresponding authorized strengths for each of the grades shown in that 
  table for that component are determined by mathematical interpolation   
  between the respective numbers of the two strengths. If the total number
  of members of a reserve component serving on full-time reserve component
  duty is more or less than the highest or lowest number, respectively,   
  set forth in the first column of the appropriate table in paragraph (1) 
  or (2) of subsection (a), the Secretary concerned shall fix the         
  corresponding strengths for the grades shown in that table at the same  
  proportion as is reflected in the nearest limit shown in the table.     
     ``(c) Reallocations to Lower Grades.--Whenever the number of officers
  serving in any grade for duty described in subsection (a) is less than  
  the number authorized for that grade under this section, the difference 
  between the two numbers may be applied to increase the number authorized
  under this section for any lower grade.                                 
     ``(d) Secretarial Waiver.--(1) Upon determining that it is in the    
  national interest to do so, the Secretary of Defense may increase for a 
  particular fiscal year the number of reserve officers that may be on    
  full-time reserve component duty for a reserve component in a grade     
  referred to in a table in subsection (a) by a number that does not      
  exceed the number equal to 5 percent of the maximum number specified for
  the grade in that table.                                                
     ``(2) Whenever the Secretary exercises the authority provided in     
  paragraph (1), the Secretary shall submit to the Committee on Armed     
  Services of the Senate and the Committee on Armed Services of the House 
  of Representatives notice in writing of the adjustment made.            
     ``(e) Full-Time Reserve Component Duty Defined.--In this section, the
  term `full-time reserve component duty' means the following duty:       
       ``(1) Active duty described in sections 10211, 10302, 10303, 10304, 
   10305, 12310, or 12402 of this title.                                   
       ``(2) Full-time National Guard duty (other than for training) under 
   section 502(f) of title 32.                                             
     ``(3) Active duty described in section 708 of title 32.''.            

     (b) Senior Enlisted Members.--The text of section 12012 of title 10, 
  United States Code, is amended to read as follows:                      
     ``(a) Limitations.--Of the total number of members of a reserve      
  component who are serving on full-time reserve component duty at the end
  of any fiscal year, the number of those members in each of pay grades of
  E 8 and E 9 who may be serving on active duty under section 10211 or    
  12310, or on full-time National Guard duty under the authority of       
  section 502(f) of title 32 (other than for training) in connection with 
  organizing, administering, recruiting, instructing, or training the     
  reserve components or the National Guard may not, as of the end of that 
  fiscal year, exceed the number determined in accordance with the        
  following table:                                                        


                                                                               

``Total number of members of a reserve component serving on full-time reserve component duty:    Number of members of that reserve component who may be serving in the grade of:    

                                                                                                    E 8  E 9       

Army Reserve:                                                                                                      
10,000                                                                                            1,052  154       
11,000                                                                                            1,126  168       
12,000                                                                                            1,195  180       
13,000                                                                                            1,261  191       
14,000                                                                                            1,327  202       
15,000                                                                                            1,391  213       
16,000                                                                                            1,455  224       
17,000                                                                                            1,519  235       
18,000                                                                                            1,583  246       
19,000                                                                                            1,647  257       
20,000                                                                                            1,711  268       
21,000                                                                                            1,775  278       
                                                                                                                   
Army National Guard:                                                                                               
20,000                                                                                            1,650  550       
22,000                                                                                            1,775  615       
24,000                                                                                            1,900  645       
26,000                                                                                            1,945  675       
28,000                                                                                            1,945  705       
30,000                                                                                            1,945  725       
32,000                                                                                            1,945  730       
34,000                                                                                            1,945  735       
36,000                                                                                            1,945  738       
38,000                                                                                            1,945  741       
40,000                                                                                            1,945  743       
42,000                                                                                            1,945  743       
                                                                                                                   
Naval Reserve:                                                                                                     
10,000                                                                                              340  143       
11,000                                                                                              364  156       
12,000                                                                                              386  169       
13,000                                                                                              407  182       
14,000                                                                                              423  195       
15,000                                                                                              435  208       
16,000                                                                                              447  221       
17,000                                                                                              459  234       
18,000                                                                                              471  247       
19,000                                                                                              483  260       
20,000                                                                                              495  273       
21,000                                                                                              507  286       
22,000                                                                                              519  299       
23,000                                                                                              531  312       
24,000                                                                                              540  325       
                                                                                                                   
Marine Corps Reserve:                                                                                              
1,100                                                                                                50  11        
1,200                                                                                                55  12        
1,300                                                                                                60  13        
1,400                                                                                                65  14        
1,500                                                                                                70  15        
1,600                                                                                                75  16        
1,700                                                                                                80  17        
1,800                                                                                                85  18        
1,900                                                                                                89  19        
2,000                                                                                                93  20        
2,100                                                                                                96  21        
2,200                                                                                                99  22        
2,300                                                                                               101  23        
2,400                                                                                               103  24        
2,500                                                                                               105  25        
2,600                                                                                               107  26        
                                                                                                                   
Air Force Reserve:                                                                                                 
500                                                                                                  75  40        
1,000                                                                                               145  75        
1,500                                                                                               208  105       
2,000                                                                                               270  130       
2,500                                                                                               325  150       
3,000                                                                                               375  170       
3,500                                                                                               420  190       
4,000                                                                                               460  210       
4,500                                                                                               495  230       
5,000                                                                                               530  250       
5,500                                                                                               565  270       
6,000                                                                                               600  290       
7,000                                                                                               670  330       
8,000                                                                                               740  370       
10,000                                                                                              800  400       
                                                                                                                   
Air National Guard                                                                                                 
5,000                                                                                             1,020  405       
6,000                                                                                             1,070  435       
7,000                                                                                             1,120  465       
8,000                                                                                             1,170  490       
9,000                                                                                             1,220  510       
10,000                                                                                            1,270  530       
11,000                                                                                            1,320  550       
12,000                                                                                            1,370  570       
13,000                                                                                            1,420  589       
14,000                                                                                            1,470  608       
15,000                                                                                            1,520  626       
16,000                                                                                            1,570  644       
17,000                                                                                            1,620  661       
18,000                                                                                            1,670  678       
19,000                                                                                            1,720  695       
20,000                                                                                            1,770  712.      


     ``(b) Determinations by Interpolation.--If the total number of       
  members of a reserve component serving on full-time reserve component   
  duty is between any two consecutive numbers in the first column of the  
  table in subsection (a), the corresponding authorized strengths for each
  of the grades shown in that table for that component are determined by  
  mathematical interpolation between the respective numbers of the two    
  strengths. If the total number of members of a reserve component serving
  on full-time reserve component duty is more or less than the highest or 
  lowest number, respectively, set forth in the first column of the table 
  in subsection (a), the Secretary concerned shall fix the corresponding  
  strengths for the grades shown in the table at the same proportion as is
  reflected in the nearest limit shown in the table.                      
     ``(c) Reallocations to Lower Grade.--Whenever the number of members  
  serving in pay grade E 9 for duty described in subsection (a) is less   
  than the number authorized for that grade under this section, the       
  difference between the two numbers may be applied to increase the number
  authorized under this section for pay grade E 8.                        
     ``(d) Secretarial Waiver.--(1) Upon determining that it is in the    
  national interest to do so, the Secretary of Defense may increase for a 
  particular fiscal year the number of reserve enlisted members that may  
  be on active duty or full-time National Guard duty as described in      
  subsection (a) for a reserve component in a pay grade referred to in a  
  table in subsection (a) by a number that does not exceed the number     
  equal to 5 percent of the maximum number specified for that grade and   
  reserve component in the table.                                         
     ``(2) Whenever the Secretary exercises the authority provided in     
  paragraph (1), the Secretary shall submit to the Committee on Armed     
  Services of the Senate and the Committee on Armed Services of the House 
  of Representatives notice in writing of the adjustment made.            
     ``(e) Full-Time Reserve Component Duty Defined.--In this section, the
  term `full-time reserve component duty' has the meaning given the term  
  in section 12011(e) of this title.''.                                   
           Subtitle C--Other Matters Relating to Personnel Strengths               

          SEC. 421. ADMINISTRATION OF END STRENGTHS.                              

     (a) Increase in Percentage by Which Active Component End Strengths   
  May Be Increased.--Section 115(c)(1) of title 10, United States Code, is
  amended by striking ``1 percent'' and inserting ``2 percent''.          

     (b) Waiver of End Strengths During National Emergency.--The text of  
  section 123a of such title is amended to read as follows:               
     ``(a) During War or National Emergency.--If at the end of any fiscal 
  year there is in effect a war or national emergency, the President may  
  waive any statutory end strength with respect to that fiscal year. Any  
  such waiver may be issued only for a statutory end strength that is     
  prescribed by law before the waiver is issued.                          
     ``(b) Upon Termination of War or National Emergency.--Upon the       
  termination of a war or national emergency with respect to which the    
  President has exercised the authority provided by subsection (a), the   
  President may defer the effectiveness of any statutory end strength with
  respect to the fiscal year during which the termination occurs. Any such
  deferral may not extend beyond the last day of the sixth month beginning
  after the date of such termination.                                     
     ``(c) Statutory End Strength.--In this section, the term `statutory  
  end strength' means any end-strength limitation with respect to a fiscal
  year that is prescribed by law for any military or civilian component of
  the armed forces or of the Department of Defense.''.                    

                    SEC. 422. ACTIVE DUTY END STRENGTH EXEMPTION FOR NATIONAL     
          GUARD AND RESERVE PERSONNEL PERFORMING FUNERAL HONORS FUNCTIONS.        
     Section 115(d) of title 10, United States Code, is amended by adding 
  at the end the following new paragraphs:                                
       ``(10) Members of reserve components on active duty to prepare for  
   and to perform funeral honors functions for funerals of veterans in     
   accordance with section 1491 of this title.                             
       ``(11) Members on full-time National Guard duty to prepare for and  
   perform funeral honors functions for funerals of veterans in accordance 
   with section 1491 of this title.''.                                     

           Subtitle D--Authorization of Appropriations                             

          SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.       

     There is hereby authorized to be appropriated to the Department of   
  Defense for military personnel for fiscal year 2002 a total of          
  $82,307,281,000. The authorization in the preceding sentence supersedes 
  any other authorization of appropriations (definite or indefinite) for  
  such purpose for fiscal year 2002.                                      

           TITLE V--MILITARY PERSONNEL POLICY                                      


                            SUBTITLE A--OFFICER PERSONNEL POLICY                  

            Sec. 501. Enhanced flexibility for management of senior general   
      and flag officer positions.                                             
            Sec. 502. Certifications of satisfactory performance for          
      retirement of officers in grades above major general and rear admiral.  
      Sec. 503. Review of actions of selection boards.                        

            Sec. 504. Temporary reduction of time-in-grade requirement for    
      eligibility for promotion for certain active-duty list officers in      
      grades of first lieutenant and lieutenant (junior grade).               
            Sec. 505. Authority for promotion without selection board         
      consideration for all fully qualified officers in grade of first        
      lieutenant or lieutenant (junior grade) in the Navy.                    
            Sec. 506. Authority to adjust date of rank of certain promotions  
      delayed by reason of unusual circumstances.                             
            Sec. 507. Authority for limited extension of medical deferment of 
      mandatory retirement or separation.                                     
            Sec. 508. Authority for limited extension on active duty of       
      members subject to mandatory retirement or separation.                  
            Sec. 509. Exemption from certain administrative limitations for   
      retired officers ordered to active duty as defense or service attache   
      AE1s.                                                                   
      Sec. 510. Officer in charge of United States Navy Band.                 

                       SUBTITLE B--RESERVE COMPONENT PERSONNEL POLICY             

            Sec. 511. Placement on active-duty list of certain Reserve        
      officers on active duty for a period of three years or less.            
            Sec. 512. Exception to baccalaureate degree requirement for       
      appointment of Reserve officers to grades above first lieutenant.       
            Sec. 513. Improved disability benefits for certain reserve        
      component members.                                                      
            Sec. 514. Time-in-grade requirement for reserve component officers
      retired with a nonservice-connected disability.                         
            Sec. 515. Equal treatment of Reserves and full-time active duty   
      members for purposes of managing personnel deployments.                 
            Sec. 516. Modification of physical examination requirements for   
      members of the Individual Ready Reserve.                                
            Sec. 517. Retirement of Reserve members without requirement for   
      formal application or request.                                          
      Sec. 518. Space-required travel by Reserves on military aircraft.       

            Sec. 519. Payment of Federal Employee Health Benefit Program      
      premiums for certain Reservists called to active duty in support of     
      contingency operations.                                                 
            SUBTITLE C--JOINT SPECIALTY OFFICERS AND JOINT PROFESSIONAL MILITARY  
                                    EDUCATION                                     
      Sec. 521. Nominations and promotions for joint specialty officers.      

      Sec. 522. Joint duty credit.                                            

            Sec. 523. Retroactive joint service credit for duty in certain    
      joint task forces.                                                      
      Sec. 524. Revision to annual report on joint officer management.        

            Sec. 525. Requirement for selection for joint specialty before    
      promotion to general or flag officer grade.                             
            Sec. 526. Independent study of joint officer management and joint 
      professional military education reforms.                                
      Sec. 527. Professional development education.                           

            Sec. 528. Authority for National Defense University to enroll     
      certain private sector civilians.                                       
            Sec. 529. Continuation of reserve component professional military 
      education test.                                                         
                         SUBTITLE D--MILITARY EDUCATION AND TRAINING              

      Sec. 531. Defense Language Institute Foreign Language Center.           

            Sec. 532. Authority for the Marine Corps University to award      
      degree of master of strategic studies.                                  
      Sec. 533. Foreign students attending the service academies.             

            Sec. 534. Increase in maximum age for appointment as a cadet or   
      midshipman in Senior Reserve Officers' Training Corps scholarship       
      programs.                                                               
            Sec. 535. Participation of regular enlisted members of the Armed  
      Forces in Senior Reserve Officers' Training Corps program.              
            Sec. 536. Authority to modify the service obligation of certain   
      ROTC cadets in military junior colleges receiving financial assistance. 
            Sec. 537. Repeal of limitation on number of Junior Reserve        
      Officers' Training Corps units.                                         
            Sec. 538. Modification of nurse officer candidate accession       
      program restriction on students attending educational institutions with 
      senior reserve officers' training programs.                             
      Sec. 539. Reserve health professionals stipend program expansion.       

            Sec. 540. Housing allowance for the chaplain for the Corps of     
      Cadets at the United States Military Academy.                           
                        SUBTITLE E--RECRUITING AND ACCESSION PROGRAMS             

      Sec. 541. 18-month enlistment pilot program.                            

      Sec. 542. Improved benefits under the Army College First program.       

            Sec. 543. Correction and extension of certain Army recruiting     
      pilot program authorities.                                              
      Sec. 544. Military recruiter access to secondary school students.       

            Sec. 545. Permanent authority for use of military recruiting funds
      for certain expenses at Department of Defense recruiting functions.     
            Sec. 546. Report on health and disability benefits for            
      pre-accession training and education programs.                          
                 SUBTITLE F--DECORATIONS, AWARDS, AND POSTHUMOUS COMMISSIONS      

            Sec. 551. Authority for award of the Medal of Honor to Humbert R. 
      Versace, Jon E. Swanson, and Ben L. Salomon for valor.                  
            Sec. 552. Review regarding award of Medal of Honor to certain     
      Jewish American and Hispanic American war veterans.                     
            Sec. 553. Authority to issue duplicate Medals of Honor and to     
      replace stolen military decorations.                                    
      Sec. 554. Retroactive Medal of Honor special pension.                   

            Sec. 555. Waiver of time limitations for award of certain         
      decorations to certain persons.                                         
      Sec. 556. Sense of Congress on issuance of certain medals.              

            Sec. 557. Sense of Congress on development of a more              
      comprehensive, uniform policy for the award of decorations to military  
      and civilian personnel of the Department of Defense.                    
            Sec. 558. Posthumous Army commission in the grade of captain in   
      the Chaplains Corps to Ella E. Gibson for service as chaplain of the    
      First Wisconsin Heavy Artillery Regiment during the Civil War.          
                               SUBTITLE G--FUNERAL HONORS DUTY                    

      Sec. 561. Participation of military retirees in funeral honors details. 

            Sec. 562. Funeral honors duty performed by Reserve and Guard      
      members to be treated as inactive-duty training for certain purposes.   
            Sec. 563. Use of military leave for funeral honors duty by Reserve
      members and National Guardsmen.                                         
            Sec. 564. Authority to provide appropriate articles of clothing as
      a civilian uniform for civilians participating in funeral honor details.
                       SUBTITLE H--MILITARY SPOUSES AND FAMILY MEMBERS            

            Sec. 571. Improved financial and other assistance to military     
      spouses for job training and education.                                 
            Sec. 572. Persons authorized to be included in surveys of military
      families regarding Federal programs.                                    
            Sec. 573. Clarification of treatment of classified information    
      concerning persons in a missing status.                                 
            Sec. 574. Transportation to annual meeting of next-of-kin of      
      persons unaccounted for from conflicts after World War II.              
            Sec. 575. Amendments to charter of Defense Task Force on Domestic 
      Violence.                                                               
                  SUBTITLE I--MILITARY JUSTICE AND LEGAL ASSISTANCE MATTERS       

            Sec. 581. Blood alcohol content limit for the offense under the   
      Uniform Code of Military Justice of drunken operation of a vehicle,     
      aircraft, or vessel.                                                    
            Sec. 582. Requirement that courts-martial consist of not less than
      12 members in capital cases.                                            
            Sec. 583. Acceptance of voluntary legal assistance for the civil  
      affairs of members and former members of the uniformed services and     
      their dependents.                                                       
                                  SUBTITLE J--OTHER MATTERS                       

            Sec. 591. Congressional review period for change in ground combat 
      exclusion policy.                                                       
      Sec. 592. Per diem allowance for lengthy or numerous deployments.       

      Sec. 593. Clarification of disability severance pay computation.        

            Sec. 594. Transportation or storage of privately owned vehicles on
      change of permanent station.                                            
            Sec. 595. Repeal of requirement for final Comptroller General     
      report relating to Army end strength allocations.                       
            Sec. 596. Continued Department of Defense administration of       
      National Guard Challenge program and Department of Defense Starbase     
      program.                                                                
            Sec. 597. Report on Defense Science Board recommendation on       
      original appointments in regular grades for Academy graduates and       
      certain other new officers.                                             
            Sec. 598. Sense of Congress regarding the selection of officers   
      for recommendation for appointment as Commander, United States          
      Transportation Command.                                                 

           Subtitle A--Officer Personnel Policy                                    


                    SEC. 501. ENHANCED FLEXIBILITY FOR MANAGEMENT OF SENIOR       
          GENERAL AND FLAG OFFICER POSITIONS.                                     
     (a) Repeal of Limit on Number of Officers on Active Duty in Grades of
  General and Admiral.--Section 528 of title 10, United States Code, is   
  repealed.                                                               
     (b) Clerical Amendment.--The table of sections at the beginning of   
  chapter 32 of such title is amended by striking the item relating to    
  section 528.                                                            

                    SEC. 502. CERTIFICATIONS OF SATISFACTORY PERFORMANCE FOR      
          RETIREMENT OF OFFICERS IN GRADES ABOVE MAJOR GENERAL AND REAR ADMIRAL.  
     Section 1370(c) of title 10, United States Code, is amended by adding
  at the end the following new paragraph:                                 
     ``(3)(A) The Secretary of Defense may delegate authority to make a   
  certification with respect to an officer under paragraph (1) only to the
  Under Secretary of Defense for Personnel and Readiness or the Deputy    
  Under Secretary of Defense for Personnel and Readiness.                 
     ``(B) If authority is delegated under subparagraph (A) and, in the   
  course of consideration of an officer for a certification under         
  paragraph (1), the Under Secretary or (if such authority is delegated to
  both the Under and Deputy Under Secretary) the Deputy Under Secretary   
  makes a determination described in subparagraph (C) with respect to that
  officer, the Under Secretary or Deputy Under Secretary, as the case may 
  be, may not exercise the delegated authority in that case, but shall    
  refer the matter to the Secretary of Defense, who shall personally      
  determine whether to issue a certification under paragraph (1) with     
  respect to that officer.                                                
     ``(C) A determination referred to in subparagraph (B) is a           
  determination that there is potentially adverse information concerning  
  an officer and that such information has not previously been submitted  
  to the Senate in connection with the consideration by the Senate of a   
  nomination of that officer for an appointment for which the advice and  
  consent of the Senate is required.''.                                   

          SEC. 503. REVIEW OF ACTIONS OF SELECTION BOARDS.                        

     (a) In General.--(1) Chapter 79 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
                    ``1558. Review of actions of selection boards: correction of  
          military records by special boards; judicial review                     
     ``(a) Correction of Military Records.--The Secretary of a military   
  department may correct a person's military records in accordance with a 
  recommendation made by a special board. Any such correction may be made 
  effective as of the effective date of the action taken on a report of a 
  previous selection board that resulted in the action corrected in the   
  person's military records.                                              
    ``(b)  Definitions.--In this section:                                 

       ``(1) Special board.--(A) The term `special board' means a board    
   that the Secretary of a military department convenes under any authority
   to consider whether to recommend a person for appointment, enlistment,  
   reenlistment, assignment, promotion, retention, separation, retirement, 
   or transfer to inactive status in a reserve component instead of        
   referring the records of that person for consideration by a previously  
   convened selection board which considered or should have considered that
   person.                                                                 
       ``(B) Such term includes a board for the correction of military     
   records convened under section 1552 of this title, if designated as a   
   special board by the Secretary concerned.                               
       ``(C) Such term does not include a promotion special selection board
   convened under section 628 or 14502 of this title.                      
       ``(2) Selection board.--(A) The term `selection board' means a      
   selection board convened under section 573(c), 580, 580a, 581, 611(b),  
   637, 638, 638a, 14101(b), 14701, 14704, or 14705 of this title, and any 
   other board convened by the Secretary of a military department under any
   authority to recommend persons for appointment, enlistment,             
   reenlistment, assignment, promotion, or retention in the armed forces or
   for separation, retirement, or transfer to inactive status in a reserve 
   component for the purpose of reducing the number of persons serving in  
   the armed forces.                                                       
     ``(B) Such term does not include any of the following:                

       ``(i) A promotion board convened under section 573(a), 611(a), or   
   14101(a) of this title.                                                 
     ``(ii) A special board.                                               

       ``(iii) A special selection board convened under section 628 of this
   title.                                                                  
       ``(iv) A board for the correction of military records convened under
   section 1552 of this title.                                             
       ``(3) Involuntarily board-separated.--The term `involuntarily       
   board-separated' means separated or retired from an armed force, or     
   transferred to the Retired Reserve or to inactive status in a reserve   
   component, as a result of a recommendation of a selection board.        
     ``(c) Relief Associated With Correction of Certain Actions.--(1) The 
  Secretary of the military department concerned shall ensure that an     
  involuntarily board-separated person receives relief under paragraph (2)
  or under paragraph (3) if the person, as a result of a correction of the
  person's military records under subsection (a), becomes entitled to     
  retention on or restoration to active duty or to active status in a     
  reserve component.                                                      
     ``(2)(A) A person referred to in paragraph (1) shall, with that      
  person's consent, be restored to the same status, rights, and           
  entitlements (less appropriate offsets against back pay and allowances) 
  in that person's armed force as the person would have had if the person 
  had not been selected to be involuntarily board-separated as a result of
  an action the record of which is corrected under subsection (a). An     
  action under this subparagraph is subject to subparagraph (B).          
     ``(B) Nothing in subparagraph (A) may be construed to permit a person
  to be on active duty or in an active status in a reserve component after
  the date on which the person would have been separated, retired, or     
  transferred to the Retired Reserve or to inactive status in a reserve   
  component if the person had not been selected to be involuntarily       
  board-separated in an action of a selection board the record of which is
  corrected under subsection (a).                                         
     ``(3) If an involuntarily board-separated person referred to in      
  paragraph (1) does not consent to a restoration of status, rights, and  
  entitlements under paragraph (2), the Secretary concerned shall pay that
  person back pay and allowances (less appropriate offsets), and shall    
  provide that person service credit, for the period--                    
       ``(A) beginning on the date of the person's separation, retirement, 
   or transfer to the Retired Reserve or to inactive status in a reserve   
   component, as the case may be; and                                      
     ``(B) ending on the earlier of--                                      

       ``(i) the date on which the person would have been so restored under
   paragraph (2), as determined by the Secretary concerned; or             
       ``(ii) the date on which the person would otherwise have been       
   separated, retired, or transferred to the Retired Reserve or to inactive
   status in a reserve component, as the case may be.                      
     ``(d) Finality of Unfavorable Action.--If a special board makes a    
  recommendation not to correct the military records of a person regarding
  action taken in the case of that person on the basis of a previous      
  report of a selection board, the action previously taken on that report 
  shall be considered as final as of the date of the action taken on that 
  report.                                                                 
     ``(e) Regulations.--(1) The Secretary of each military department    
  shall prescribe regulations to carry out this section. Regulations under
  this subsection may not apply to subsection (f), other than to paragraph
  (4)(C) of that subsection.                                              
     ``(2) The Secretary may prescribe in the regulations under paragraph 
  (1) the circumstances under which consideration by a special board may  
  be provided for under this section, including the following:            
       ``(A) The circumstances under which consideration of a person's case
   by a special board is contingent upon application by or for that person.
       ``(B) Any time limits applicable to the filing of an application for
   such consideration.                                                     
     ``(3) Regulations prescribed by the Secretary of a military          
  department under this subsection may not take effect until approved by  
  the Secretary of Defense.                                               
     ``(f) Judicial Review.--(1) A person seeking to challenge an action  
  or recommendation of a selection board, or an action taken by the       
  Secretary of the military department concerned on the report of a       
  selection board, is not entitled to relief in any judicial proceeding   
  unless the action or recommendation has first been considered by a      
  special board under this section or the Secretary concerned has denied  
  the convening of such a board for such consideration.                   
     ``(2)(A) A court of the United States may review a determination by  
  the Secretary of a military department not to convene a special board in
  the case of any person. In any such case, the court may set aside the   
  Secretary's determination only if the court finds the determination to  
  be--                                                                    
     ``(i) arbitrary or capricious;                                        

     ``(ii) not based on substantial evidence;                             

       ``(iii) a result of material error of fact or material              
   administrative error; or                                                
     ``(iv) otherwise contrary to law.                                     

     ``(B) If a court sets aside a determination by the Secretary of a    
  military department not to convene a special board, it shall remand the 
  case to the Secretary concerned, who shall provide for consideration by 
  a special board.                                                        
     ``(3) A court of the United States may review a recommendation of a  
  special board or an action of the Secretary of the military department  
  concerned on the report of a special board. In any such case, a court   
  may set aside the action only if the court finds that the recommendation
  or action was--                                                         
     ``(A) arbitrary or capricious;                                        

     ``(B) not based on substantial evidence;                              


       ``(C) a result of material error of fact or material administrative 
   error; or                                                               
     ``(D) otherwise contrary to law.                                      

     ``(4)(A) If, six months after receiving a complete application for   
  consideration by a special board in any case, the Secretary concerned   
  has not convened a special board and has not denied consideration by a  
  special board in that case, the Secretary shall be deemed for the       
  purposes of this subsection to have denied consideration of the case by 
  a special board.                                                        
     ``(B) If, six months after the convening of a special board in any   
  case, the Secretary concerned has not taken final action on the report  
  of the special board, the Secretary shall be deemed for the purposes of 
  this subsection to have denied relief in such case.                     
     ``(C) Under regulations prescribed under subsection (e), the         
  Secretary of a military department may waive the applicability of       
  subparagraph (A) or (B) in a case if the Secretary determines that a    
  longer period for consideration of the case is warranted. Such a waiver 
  may be for an additional period of not more than six months. The        
  Secretary concerned may not delegate authority to make a determination  
  under this subparagraph.                                                
    ``(g)  Existing Jurisdiction.--Nothing in this section limits--       

       ``(1) the jurisdiction of any court of the United States under any  
   provision of law to determine the validity of any law, regulation, or   
   policy relating to selection boards; or                                 
       ``(2) the authority of the Secretary of a military department to    
   correct a military record under section 1552 of this title.''.          
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``1558. Review of actions of selection boards: correction of      
      military records by special boards; judicial review.''.                 


    (b)  Special Selection Boards.--Section 628 of such title is amended--

     (1) by redesignating subsection (g) as subsection (k); and            

     (2) by inserting after subsection (f) the following new subsections:  


     ``(g) Judicial Review.--(1)(A) A court of the United States may      
  review a determination by the Secretary of a military department under  
  subsection (a)(1) or (b)(1) not to convene a special selection board in 
  the case of any person. In any such case, the court may set aside the   
  Secretary's determination only if the court finds the determination to  
  be--                                                                    
     ``(i) arbitrary or capricious;                                        

     ``(ii) not based on substantial evidence;                             

       ``(iii) a result of material error of fact or material              
   administrative error; or                                                
     ``(iv) otherwise contrary to law.                                     

     ``(B) If a court sets aside a determination by the Secretary of a    
  military department not to convene a special selection board under this 
  section, it shall remand the case to the Secretary concerned, who shall 
  provide for consideration by such a board.                              
     ``(2) A court of the United States may review the action of a special
  selection board convened under this section or an action of the         
  Secretary of the military department concerned on the report of such a  
  board. In any such case, a court may set aside the action only if the   
  court finds that the action was--                                       
     ``(A) arbitrary or capricious;                                        

     ``(B) not based on substantial evidence;                              

       ``(C) a result of material error of fact or material administrative 
   error; or                                                               
     ``(D) otherwise contrary to law.                                      

     ``(3)(A) If, six months after receiving a complete application for   
  consideration by a special selection board under this section in any    
  case, the Secretary concerned has not convened such a board and has not 
  denied consideration by such a board in that case, the Secretary shall  
  be deemed for the purposes of this subsection to have denied the        
  consideration of the case by such a board.                              
     ``(B) If, six months after the convening of a special selection board
  under this section in any case, the Secretary concerned has not taken   
  final action on the report of the board, the Secretary shall be deemed  
  for the purposes of this subsection to have denied relief in such case. 
     ``(C) Under regulations prescribed under subsection (j), the         
  Secretary of a military department may waive the applicability of       
  subparagraph (A) or (B) in a case if the Secretary determines that a    
  longer period for consideration of the case is warranted. Such a waiver 
  may be for an additional period of not more than six months. The        
  Secretary concerned may not delegate authority to make a determination  
  under this subparagraph.                                                
     ``(h) Limitations of Other Jurisdiction.--No official or court of the
  United States may, with respect to a claim based to any extent on the   
  failure of a person to be selected for promotion by a promotion board-- 
       ``(1) consider the claim unless the person has first been referred  
   by the Secretary concerned to a special selection board convened under  
   this section and acted upon by that board and the report of the board   
   has been approved by the President; or                                  
       ``(2) except as provided in subsection (g), grant any relief on the 
   claim unless the person has been selected for promotion by a special    
   selection board convened under this section to consider the person for  
   recommendation for promotion and the report of the board has been       
   approved by the President.                                              
    ``(i)  Existing Jurisdiction.--Nothing in this section limits--       

       ``(1) the jurisdiction of any court of the United States under any  
   provision of law to determine the validity of any law, regulation, or   
   policy relating to selection boards; or                                 
       ``(2) the authority of the Secretary of a military department to    
   correct a military record under section 1552 of this title.             
     ``(j) Regulations.--(1) The Secretary of each military department    
  shall prescribe regulations to carry out this section. Regulations under
  this subsection may not apply to subsection (g), other than to paragraph
  (3)(C) of that subsection.                                              
     ``(2) The Secretary may prescribe in the regulations under paragraph 
  (1) the circumstances under which consideration by a special selection  
  board may be provided for under this section, including the following:  
       ``(A) The circumstances under which consideration of a person's case
   by a special selection board is contingent upon application by or for   
   that person.                                                            
       ``(B) Any time limits applicable to the filing of an application for
   such consideration.                                                     
     ``(3) Regulations prescribed by the Secretary of a military          
  department under this subsection may not take effect until approved by  
  the Secretary of Defense.''.                                            
     (c) Effective Date.--(1) Except as provided in paragraph (2), the    
  amendments made by this section shall apply with respect to any         
  proceeding pending on or after the date of the enactment of this Act    
  without regard to whether a challenge to an action of a selection board 
  of any of the Armed Forces being considered in the proceeding was       
  initiated before, on, or after that date.                               
     (2) The amendments made by this section shall not apply with respect 
  to any action commenced in a court of the United States before the date 
  of the enactment of this Act.                                           

                    SEC. 504. TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT FOR
          ELIGIBILITY FOR PROMOTION FOR CERTAIN ACTIVE-DUTY LIST OFFICERS IN      
          GRADES OF FIRST LIEUTENANT AND LIEUTENANT (JUNIOR GRADE).               
     (a) Authority.--Subsection (a)(1)(B) of section 619 of title 10,     
  United States Code, is amended by inserting before the period at the end
  the following: ``, except that the minimum period of service in effect  
  under this subparagraph before October 1, 2005, shall be eighteen       
  months''.                                                               
     (b) Stylistic Amendments.--Such section is further amended as        
  follows:                                                                
       (1) Subsection (a) is amended by striking ``(a)(1)'' and inserting  
   ``(a) Time-in-Grade Requirements.--(1)''.                               
       (2) Subsection (b) is amended by striking ``(b)(1)'' and inserting  
   ``(b) Continued Eligibility for Consideration for Promotion of Officers 
   Who Have Previously Failed of Selection.--(1)''.                        
       (3) Subsection (c) is amended by striking ``(c)(1)'' and inserting  
   ``(c) Officers To Be Considered by Promotion Boards.--(1)''.            
       (4) Subsection (d) is amended by inserting `` Certain Officers Not  
   To Be Considered.--'' after ``(d)''.                                    
     (c) Technical Amendment.--Subsection (a)(4) of such section is       
  amended by striking ``clause (A)'' and inserting ``subparagraph (A)''.  

                    SEC. 505. AUTHORITY FOR PROMOTION WITHOUT SELECTION BOARD     
          CONSIDERATION FOR ALL FULLY QUALIFIED OFFICERS IN GRADE OF FIRST        
          LIEUTENANT OR LIEUTENANT (JUNIOR GRADE) IN THE NAVY.                    
     (a) Active-Duty List Promotions.--(1) Section 624(a) of title 10,    
  United States Code, is amended by adding at the end the following new   
  paragraph:                                                              
     ``(3)(A) Except as provided in subsection (d), officers on the       
  active-duty list in the grade of first lieutenant or, in the case of the
  Navy, lieutenant (junior grade) who are on an approved                  
  all-fully-qualified-officers list shall be promoted to the next higher  
  grade in accordance with regulations prescribed by the Secretary        
  concerned.                                                              
     ``(B) An all-fully-qualified-officers list shall be considered to be 
  approved for purposes of subparagraph (A) when the list is approved by  
  the President. When so approved, such a list shall be treated in the    
  same manner as a promotion list under this chapter.                     
     ``(C) The Secretary of a military department may make a              
  recommendation to the President for approval of an                      
  all-fully-qualified-officers list only when the Secretary determines    
  that all officers on the list are needed in the next higher grade to    
  accomplish mission objectives.                                          

     ``(D) For purposes of this paragraph, an all-fully-qualified-officers
  list is a list of all officers on the active-duty list in a grade who   
  the Secretary of the military department concerned determines--         
     ``(i) are fully qualified for promotion to the next higher grade; and 

       ``(ii) would be eligible for consideration for promotion to the next
   higher grade by a selection board convened under section 611(a) of this 
   title upon the convening of such a board.''.                            
     (2) Section 631 of such title is amended by adding at the end the    
  following new subsection:                                               
     ``(d) For the purposes of this chapter, an officer of the Army, Air  
  Force, or Marine Corps who holds the grade of first lieutenant, and an  
  officer of the Navy who holds the grade of lieutenant (junior grade),   
  shall be treated as having failed of selection for promotion if the     
  Secretary of the military department concerned determines that the      
  officer would be eligible for consideration for promotion to the next   
  higher grade by a selection board convened under section 611(a) of this 
  title if such a board were convened but is not fully qualified for      
  promotion when recommending for promotion under section 624(a)(3) of    
  this title all fully qualified officers of the officer's armed force in 
  such grade who would be eligible for such consideration.''.             
    (3) Section 611 of such title is amended--                            

     (A) in subsection (a)--                                               

       (i) by striking ``Under'' and all that follows through ``require,'' 
   and inserting ``Whenever the needs of the service require, the Secretary
   of the military department concerned''; and                             
       (ii) by adding at the end the following new sentence: ``The         
   preceding sentence does not require the convening of a selection board  
   in the case of officers in the permanent grade of first lieutenant or,  
   in the case of the Navy, lieutenant (junior grade) when the Secretary   
   concerned recommends for promotion to the next higher grade under       
   section 624(a)(3) of this title all such officers whom the Secretary    
   finds to be fully qualified for promotion.'';                           
       (B) in subsection (b), by striking ``Under'' and all that follows   
   through ``require,'' and inserting ``Whenever the needs of the service  
   require, the Secretary of the military department concerned''; and      
     (C) by adding at the end the following new subsection:                

     ``(c) The convening of selection boards under subsections (a) and (b)
  shall be under regulations prescribed by the Secretary of Defense.''.   

     (b) Reserve Active-Status List Promotions.--(1) Section 14308(b) of  
  title 10, United States Code, is amended by adding at the end the       
  following new paragraph:                                                

     ``(4)(A) Officers in the permanent grade of first lieutenant or, in  
  the case of the Navy, lieutenant (junior grade) who are on an approved  
  all-fully-qualified-officers list shall be promoted to the next higher  
  grade in accordance with regulations prescribed by the Secretary        
  concerned. Such promotions shall be in the manner specified in section  
  12203 of this title.                                                    
     ``(B) An all-fully-qualified-officers list shall be considered to be 
  approved for purposes of subparagraph (A) when the list is approved by  
  the President. When so approved, such a list shall be treated in the    
  same manner as a promotion list under this chapter and chapter 1403 of  
  this title.                                                             
     ``(C) The Secretary of a military department may make a              
  recommendation to the President for approval of an                      
  all-fully-qualified-officers list only when the Secretary determines    
  that all officers on the list are needed in the next higher grade to    
  accomplish mission objectives.                                          
     ``(D) For purposes of this paragraph, an all-fully-qualified-officers
  list is a list of all officers on the reserve active-status list in a   
  grade who the Secretary of the military department concerned            
  determines--                                                            
     ``(i) are fully qualified for promotion to the next higher grade; and 

       ``(ii) would be eligible for consideration for promotion to the next
   higher grade by a selection board convened under section 14101(a) of    
   this title upon the convening of such a board.''.                       
     (2) Section 14504 of such title is amended by adding at the end the  
  following new subsection:                                               
     ``(c) Officers in Grade of First Lieutenant or Lieutenant (Junior    
  Grade) Found Not Fully Qualified for Promotion.--For the purposes of    
  this chapter, an officer of the Army, Air Force, or Marine Corps on a   
  reserve active-status list who holds the grade of first lieutenant, and 
  an officer of the Navy on a reserve active-status list who holds the    
  grade of lieutenant (junior grade), shall be treated as having failed of
  selection for promotion if the Secretary of the military department     
  concerned determines that the officer would be eligible for             
  consideration for promotion to the next higher grade by a selection     
  board convened under section 14101(a) of this title if such a board were
  convened but is not fully qualified for promotion when recommending for 
  promotion under section 14308(b)(4) of this title all fully qualified   
  officers of the officer's armed force in such grade who would be        
  eligible for such consideration.''.                                     
     (3) Section 14101(a) of such title is amended by adding at the end   
  the following new paragraph:                                            
     ``(3) Paragraph (1) does not require the convening of a selection    
  board in the case of officers in the permanent grade of first lieutenant
  or, in the case of the Navy, lieutenant (junior grade) when the         
  Secretary concerned recommends for promotion to the next higher grade   
  under section 14308(b)(4) of this title all such officers whom the      
  Secretary finds to be fully qualified for promotion.''.                 
     (c) Conforming Amendments.--Title 10, United States Code, is amended 
  as follows:                                                             
       (1)(A) Section 619(d) is amended by adding at the end the following 
   new paragraph:                                                          
       ``(4) An officer in the grade of first lieutenant or, in the case of
   the Navy, lieutenant (junior grade) who is on an approved               
   all-fully-qualified-officers list under section 624(a)(3) of this       
   title.''.                                                               
       (B) Section 14301(c) is amended by adding at the end the following  
   new paragraph:                                                          
       ``(5) An officer in the grade of first lieutenant or, in the case of
   the Navy, lieutenant (junior grade) who is on an approved               
   all-fully-qualified-officers list under section 14308(b)(4) of this     
   title.''.                                                               
     (2)(A) Section 624(d) is amended--                                    

       (i) in the second sentence of paragraph (1), by inserting after ``on
   the promotion list'' the following: ``(including an approved            
   all-fully-qualified-officers list, if applicable)''; and                
       (ii) in the second sentence of paragraph (2), by inserting after    
   ``to such grade, the officer'' the following: ``shall be retained on the
   promotion list (including an approved all-fully-qualified-officers list,
   if applicable) and''.                                                   
     (B) Section 14311 is amended--                                        

       (i) in subsection (a)(2), by inserting after ``on the promotion     
   list'' the following: ``(including an approved                          
   all-fully-qualified-officers list, if applicable)''; and                
       (ii) in subsection (b), by inserting in the second sentence after   
   ``on the promotion list'' the following: ``(including an approved       
   all-fully-qualified-officers list, if applicable)''.                    
       (3)(A) Section 628(a)(1) is amended by inserting after ``not so     
   considered,'' the following: ``or the name of a person that should have 
   been placed on an all-fully-qualified-officers list under section       
   624(a)(3) of this title was not so placed,''.                           
       (B) Section 14502(a)(1) is amended by inserting after ``because of  
   administrative error,'' the following: ``or whose name was not placed on
   an all-fully-qualified-officers list under section 14308(b)(4) of this  
   title because of administrative error,''.                               
       (4) Section 1211(e) is amended by inserting after ``a promotion     
   list,'' the following: ``an approved all-fully-qualified-officers       
   list,''.                                                                

     (d) Technical Amendments To Strike Certain DOPMA References to       
  Regular Officers.--Chapter 36 of such title is amended as follows:      
     (1) Section 624(c) is amended--                                       

       (A) by inserting ``, in the case of officers of the Army, Air Force,
   or Marine Corps,'' after ``captain''; and                               
       (B) by inserting ``, in the case of officers of the Navy,'' after   
   ``or lieutenant'' the second place it appears.                          
       (2) Section 630 is amended by striking ``regular'' both places it   
   appears.                                                                
     (3) Sections 631(a) and 632(a) are each amended--                     

       (A) by striking ``Regular Army, Regular Air Force, or Regular Marine
   Corps'' and inserting ``Army, Air Force, or Marine Corps on the         
   active-duty list'';                                                     
       (B) by striking ``Regular Navy'' and inserting ``Navy on the        
   active-duty list''; and                                                 
     (C) by striking ``regular'' each place it appears.                    

       (4)(A) The heading of section 630 and the item relating to that     
   section in the table of sections at the beginning of subchapter III are 
   each amended by striking the third word.                                
       (B) The heading of section 631 and the item relating to that section
   in the table of sections at the beginning of subchapter III are each    
   amended by striking the eighth word.                                    
       (C) The heading of section 632 and the item relating to that section
   in the table of sections at the beginning of subchapter III are each    
   amended by striking the eighth and twenty-first words.                  

                    SEC. 506. AUTHORITY TO ADJUST DATE OF RANK OF CERTAIN         
          PROMOTIONS DELAYED BY REASON OF UNUSUAL CIRCUMSTANCES.                  
     (a) Active Duty Officers.--Subsection 741(d) of title 10, United     
  States Code, is amended by adding at the end the following new          
  paragraph:                                                              

     ``(4)(A) The Secretary concerned may adjust the date of rank of an   
  officer appointed under section 624(a) of this title to a higher grade  
  that is not a general officer or flag officer grade if the appointment  
  of that officer to that grade is delayed from the date on which (as     
  determined by the Secretary) it would otherwise have been made by reason
  of unusual circumstances (as determined by the Secretary) that cause an 
  unintended delay in--                                                   
       ``(i) the processing or approval of the report of the selection     
   board recommending the appointment of that officer to that grade; or    
       ``(ii) the processing or approval of the promotion list established 
   on the basis of that report.                                            
     ``(B) The adjusted date of rank applicable to the grade of an officer
  under subparagraph (A) shall be consistent--                            
       ``(i) with the officer's position on the promotion list for that    
   grade and competitive category when additional officers in that grade   
   and competitive category were needed; and                               
       ``(ii) with compliance with the applicable authorized strengths for 
   officers in that grade and competitive category.                        
     ``(C) The adjusted date of rank applicable to the grade of an officer
  under subparagraph (A) shall be the effective date for--                
     ``(i) the officer's pay and allowances for that grade; and            

     ``(ii) the officer's position on the active-duty list.                

     ``(D) When under subparagraph (A) the Secretary concerned adjusts the
  date of rank of an officer in a grade to which the officer was appointed
  by and with the advice and consent of the Senate and the adjustment is  
  to a date before the date of the advice and consent of the Senate to    
  that appointment, the Secretary shall promptly transmit to the Committee
  on Armed Services of the Senate a notification of that adjustment. Any  
  such notification shall include the name of the officer and a discussion
  of the reasons for the adjustment of date of rank.                      
     ``(E) Any adjustment in date of rank under this paragraph shall be   
  made under regulations prescribed by the Secretary of Defense, which    
  shall apply uniformly among the Army, Navy, Air Force, and Marine       
  Corps.''.                                                               
     (b) Reserve Officers.--(1) Section 14308(c) of such title is         
  amended--                                                               
     (A) by redesignating paragraph (2) as paragraph (3); and              

     (B) by inserting after paragraph (1) the following new paragraph (2): 

     ``(2) The date of rank of an officer appointed to a higher grade     
  under this section may be adjusted in the same manner as an adjustment  
  may be made under section 741(d)(4) of this title in the date of rank of
  an officer appointed to a higher grade under section 624(a) of this     
  title. In any use of the authority under the preceding sentence,        
  subparagraph (C)(ii) of such section shall be applied by substituting   
  `reserve active-status list' for `active-duty list'.''.                 
     (2) Paragraph (3) of such section, as redesignated by paragraph      
  (1)(A), is amended by inserting ``provided in paragraph (2) or as       
  otherwise'' after ``Except as''.                                        
     (c) Effective Date.--(1) Paragraph (4) of section 741(d) of title 10,
  United States Code, as added by subsection (a), and paragraph (2) of    
  section 14308(c) of such title, as added by subsection (b), shall apply 
  with respect to any report of a selection board recommending officers   
  for promotion to the next higher grade that is submitted to the         
  Secretary of the military department concerned on or after the date of  
  the enactment of this Act.                                              
     (2) The Secretary of the military department concerned may apply the 
  applicable paragraph referred to in paragraph (1) in the case of an     
  appointment of an officer to a higher grade resulting from a report of a
  selection board submitted to the Secretary before the date of the       
  enactment of this Act if the Secretary determines that such appointment 
  would have been made on an earlier date that is on or after October 1,  
  2001, and was delayed under the circumstances specified in paragraph (4)
  of section 741(d) of title 10, United States Code, as added by          
  subsection (a).                                                         

                    SEC. 507. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT
          OF MANDATORY RETIREMENT OR SEPARATION.                                  
     The text of section 640 of title 10, United States Code, is amended  
  to read as follows:                                                     
     ``(a) If the Secretary of the military department concerned          
  determines that the evaluation of the physical condition of an officer  
  and determination of the officer's entitlement to retirement or         
  separation for physical disability require hospitalization or medical   
  observation and that such hospitalization or medical observation cannot 
  be completed with confidence in a manner consistent with the member's   
  well being before the date on which the officer would otherwise be      
  required to retire or be separated under this title, the Secretary may  
  defer the retirement or separation of the officer under this title.     
     ``(b) A deferral of retirement or separation under subsection (a) may
  not extend for more than 30 days after completion of the evaluation     
  requiring hospitalization or medical observation.''.                    

                    SEC. 508. AUTHORITY FOR LIMITED EXTENSION ON ACTIVE DUTY OF   
          MEMBERS SUBJECT TO MANDATORY RETIREMENT OR SEPARATION.                  
     (a) Section 12305 Stop-Loss Authority.--Section 12305 of title 10,   
  United States Code, is amended by adding at the end the following new   
  subsection:                                                             
     ``(c) Upon the termination of a suspension made under the authority  
  of subsection (a) of a provision of law otherwise requiring the         
  separation or retirement of officers on active duty because of age,     
  length of service or length of service in grade, or failure of selection
  for promotion, the Secretary concerned shall extend by up to 90 days the
  otherwise required separation or retirement date of any officer covered 
  by the suspended provision whose separation or retirement date, but for 
  the suspension, would have been before the date of the termination of   
  the suspension or within 90 days after the date of such termination.''. 
     (b) Section 123 Stop-Loss Authority.--Section 123 of such title is   
  amended by adding at the end the following new subsection:              
     ``(d) Upon the termination of a suspension made under the authority  
  of subsection (a) of a provision of law otherwise requiring the         
  separation or retirement of officers on active duty because of age,     
  length of service or length of service in grade, or failure of selection
  for promotion, the Secretary concerned shall extend by up to 90 days the
  otherwise required separation or retirement date of any officer covered 
  by the suspended provision whose separation or retirement date, but for 
  the suspension, would have been before the date of the termination of   
  the suspension or within 90 days after the date of such termination.''. 

                    SEC. 509. EXEMPTION FROM CERTAIN ADMINISTRATIVE LIMITATIONS   
          FOR RETIRED OFFICERS ORDERED TO ACTIVE DUTY AS DEFENSE OR SERVICE       
          ATTACHE AE1S.                                                           
     (a) Limitation of Period of Recalled Service.--Section 688(e)(2) of  
  title 10, United States Code, is amended by adding at the end the       
  following new subparagraph:                                             
       ``(D) An officer who is assigned to duty as a defense attache AE1 or
   service attache AE1 for the period of active duty to which ordered.''.  
     (b) Limitation on Number of Recalled Officers on Active              
  Duty.--Section 690(b)(2) of such title is amended by adding at the end  
  the following new subparagraph:                                         
       ``(E) An officer who is assigned to duty as a defense attache AE1 or
   service attache AE1 for the period of active duty to which ordered.''.  
     (c) Applicability.--The amendments made by subsections (a) and (b)   
  shall apply with respect to officers serving on active duty as a defense
  attache AE1 or service attache AE1 on or after the date of the enactment
  of this Act.                                                            

          SEC. 510. OFFICER IN CHARGE OF UNITED STATES NAVY BAND.                 

     (a) Detail and Grade.--Section 6221 of title 10, United States Code, 
  is amended to read as follows:                                          
          6221. United States Navy Band; officer in charge                        

    ``(a) There is a Navy band known as the United States Navy Band.      

     ``(b)(1) An officer of the Navy designated for limited duty under    
  section 5589 or 5596 of this title who is serving in a grade above      
  lieutenant may be detailed by the Secretary of the Navy as Officer in   
  Charge of the United States Navy Band.                                  
     ``(2) While serving as Officer in Charge of the United States Navy   
  Band, an officer shall hold the grade of captain if appointed to that   
  grade by the President, by and with the advice and consent of the       
  Senate. Such an appointment may be made notwithstanding section 5596(d) 
  of this title.''.                                                       
     (b) Clerical Amendment.--The item relating to such section in the    
  table of sections at the beginning of chapter 565 of such title is      
  amended to read as follows:                                             


      ``6221. United States Navy Band; officer in charge.''.                  


           Subtitle B--Reserve Component Personnel Policy                          

                    SEC. 511. PLACEMENT ON ACTIVE-DUTY LIST OF CERTAIN RESERVE    
          OFFICERS ON ACTIVE DUTY FOR A PERIOD OF THREE YEARS OR LESS.            
     (a) Clarification of Exemption.--Section 641(1)(D) of title 10,      
  United States Code, is amended to read as follows:                      
       ``(D) on active duty under section 12301(d) of this title, other    
   than as provided under subparagraph (C), if the call or order to active 
   duty, under regulations prescribed by the Secretary concerned, specifies
   a period of three years or less and continued placement on the reserve  
   active-status list;''.                                                  
     (b) Retroactive Application.--(1) The Secretary of the military      
  department concerned may provide that an officer who was excluded from  
  the active-duty list under section 641(1)(D) of title 10, United States 
  Code, as amended by section 521 of the Floyd D. Spence National Defense 
  Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
  Law 106 398; 114 Stat. 1654A 108), shall be considered to have been on  
  the active-duty list during the period beginning on the date on which   
  the officer was so excluded and ending on the date of the enactment of  
  this Act.                                                               
     (2) The Secretary of the military department concerned may provide   
  that a Reserve officer who was placed on the active-duty list on or     
  after October 30, 1997, shall be placed on the reserve active-status    
  list if the officer otherwise meets the conditions specified in section 
  641(1)(D) of title 10, United States Code, as amended by subsection (a).

                    SEC. 512. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR   
          APPOINTMENT OF RESERVE OFFICERS TO GRADES ABOVE FIRST LIEUTENANT.       
     (a) Reauthorization of Waiver Authority for Army OCS Graduates and   
  Inclusion of Certain Marine Officers.--Section 12205 of title 10, United
  States Code, is amended by adding at the end the following new          
  subsection:                                                             
     ``(d) Waiver Authority for Army OCS Graduates and Certain Marine     
  Corps Officers.--(1) The Secretary of the Army may waive the            
  applicability of subsection (a) to any officer whose original           
  appointment in the Army as a Reserve officer is through the Army Officer
  Candidate School program.                                               
     ``(2) The Secretary of the Navy may waive the applicability of       
  subsection (a) to any officer whose original appointment in the Marine  
  Corps as a Reserve officer is through the Marine Corps meritorious      
  commissioning program.                                                  
     ``(3) Any such waiver shall be made on a case-by-case basis,         
  considering the individual circumstances of the officer involved, and   
  may continue in effect for no more than two years after the waiver is   
  granted. The Secretary concerned may provide for such a waiver to be    
  effective before the date of the waiver, as appropriate in an individual
  case.''.                                                                
     (b) Effective Date.--Subsection (d) of section 12205 of title 10,    
  United States Code, as added by subsection (a), shall apply with respect
  to officers appointed before, on, or after the date of the enactment of 
  this Act.                                                               

                    SEC. 513. IMPROVED DISABILITY BENEFITS FOR CERTAIN RESERVE    
          COMPONENT MEMBERS.                                                      
     (a) Medical and Dental Care.--Sections 1074a(a)(3) and 1076(a)(2)(C) 
  of title 10, United States Code, are each amended by striking ``, if    
  the'' and all that follows through ``member's residence''.              
     (b) Eligibility for Disability Retirement or Separation.--Sections   
  1204(2)(B)(iii) and 1206(2)(B)(iii) of title 10, United States Code, are
  each amended by striking ``, if the'' and all that follows through      
  ``member's residence''.                                                 
     (c) Recovery, Care, and Disposition of Remains.--Section             
  1481(a)(2)(D) of title 10, United States Code, is amended by striking   
  ``, if the site is outside reasonable commuting distance from the       
  member's residence''.                                                   
     (d) Entitlement to Basic Pay.--Subsections (g)(1)(D) and (h)(1)(D) of
  section 204 of title 37, United States Code, are amended by striking ``,
  if the site is outside reasonable commuting distance from the member's  
  residence''.                                                            
     (e) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C) of
  title 37, United States Code, is amended by striking ``, if the site is 
  outside reasonable commuting distance from the member's residence''.    

                    SEC. 514. TIME-IN-GRADE REQUIREMENT FOR RESERVE COMPONENT     
          OFFICERS RETIRED WITH A NONSERVICE CONNECTED DISABILITY.                
     Section 1370(d)(3)(B) of title 10, United States Code, is amended to 
  read as follows:                                                        
     ``(B) A person covered by subparagraph (A) who has completed at least
  six months of satisfactory service in grade may be credited with        
  satisfactory service in the grade in which serving at the time of       
  transfer or discharge, notwithstanding failure of the person to complete
  three years of service in that grade, if that person is transferred from
  an active status or discharged as a reserve commissioned officer--      
       ``(i) solely due to the requirements of a nondiscretionary provision
   of law requiring that transfer or discharge due to the person's age or  
   years of service; or                                                    
       ``(ii) because the person no longer meets the qualifications for    
   membership in the Ready Reserve solely because of a physical disability,
   as determined, at a minimum, by a medical evaluation board and at the   
   time of such transfer or discharge such person (pursuant to section     
   12731b of this title or otherwise) meets the service requirements       
   established by section 12731(a) of this title for eligibility for       
   retired pay under chapter 1223 of this title, unless the disability is  
   described in section 12731b of this title.''.                           

                    SEC. 515. EQUAL TREATMENT OF RESERVES AND FULL-TIME ACTIVE    
          DUTY MEMBERS FOR PURPOSES OF MANAGING PERSONNEL DEPLOYMENTS.            
     (a) Residence of Reserves at Home Station.--Paragraph (2) of section 
  991(b) of title 10, United States Code, is amended to read as follows:  
     ``(2) In the case of a member of a reserve component who is          
  performing active service pursuant to orders that do not establish a    
  permanent change of station, the housing referred to in paragraph (1) is
  any housing (which may include the member's residence) that the member  
  usually occupies for use during off-duty time when on garrison duty at  
  the member's permanent duty station or homeport, as the case may be.''. 
     (b) Effective Date.--The amendment made by this section shall apply  
  with respect to duty performed on or after October 1, 2001.             

                    SEC. 516. MODIFICATION OF PHYSICAL EXAMINATION REQUIREMENTS   
          FOR MEMBERS OF THE INDIVIDUAL READY RESERVE.                            
     (a) IRR Requirement.--Section 10206 of title 10, United States Code, 
  is amended--                                                            
       (1) in the matter in subsection (a) preceding paragraph (1), by     
   striking ``Ready Reserve'' and inserting ``Selected Reserve'';          
       (2) by designating the second sentence of subsection (a) as         
   subsection (c);                                                         
     (3) by redesignating subsection (b) as subsection (d); and            

       (4) by inserting after subsection (a) the following new subsection  
   (b):                                                                    
     ``(b) A member of the Individual Ready Reserve or inactive National  
  Guard shall be examined for physical fitness as necessary to determine  
  the member's physical fitness for--                                     
     ``(1) military duty or promotion;                                     

     ``(2) attendance at a school of the armed forces; or                  

     ``(3) other action related to career progression.''.                  

     (b) Technical Amendment.--Subsection (a)(1) of such section is       
  amended by striking ``his'' and inserting ``the member's''.             

                    SEC. 517. RETIREMENT OF RESERVE MEMBERS WITHOUT REQUIREMENT   
          FOR FORMAL APPLICATION OR REQUEST.                                      
     (a) Retired Reserve.--Section 10154(2) of title 10, United States    
  Code, is amended by striking ``upon their request''.                    
     (b) Retirement for Failure of Selection of Promotion.--(1) Paragraph 
  (2) of section 14513 of such title is amended by striking ``, if the    
  officer is qualified and applies for such transfer'' and inserting ``if 
  the officer is qualified for such transfer and does not request (in     
  accordance with regulations prescribed by the Secretary concerned) not  
  to be transferred to the Retired Reserve''.                             
    (2)(A) The heading for such section is amended to read as follows:    

                    ``14513. Failure of selection for promotion: transfer,        
          retirement, or discharge''.                                             
     (B) The item relating to such section in the table of sections at the
  beginning of chapter 1407 of such title is amended to read as follows:  


            ``14513. Failure of selection for promotion: transfer, retirement,
      or discharge.''.                                                        


     (c) Retirement for Years of Service or After Selection for Early     
  Removal.--Section 14514 of such title is amended--                      
       (1) in paragraph (1), by striking ``, if the officer is qualified   
   and applies for such transfer'' and inserting ``if the officer is       
   qualified for such transfer and does not request (in accordance with    
   regulations prescribed by the Secretary concerned) not to be transferred
   to the Retired Reserve''; and                                           
     (2) by striking paragraph (2) and inserting the following:            

       ``(2) be discharged from the officer's reserve appointment if the   
   officer is not qualified for transfer to the Retired Reserve or has     
   requested (in accordance with regulations prescribed by the Secretary   
   concerned) not to be so transferred.''.                                 
    (d)  Retirement for Age.--Section 14515 of such title is amended--    

       (1) in paragraph (1), by striking ``, if the officer is qualified   
   and applies for such transfer'' and inserting ``if the officer is       
   qualified for such transfer and does not request (in accordance with    
   regulations prescribed by the Secretary concerned) not to be transferred
   to the Retired Reserve''; and                                           
     (2) by striking paragraph (2) and inserting the following:            

       ``(2) be discharged from the officer's reserve appointment if the   
   officer is not qualified for transfer to the Retired Reserve or has     
   requested (in accordance with regulations prescribed by the Secretary   
   concerned) not to be so transferred.''.                                 
     (e) Discharge or Retirement of Warrant Officers for Years of Service 
  or Age.--(1) Chapter 1207 of such title is amended by adding at the end 
  the following new section:                                              
                    ``12244. Warrant officers: discharge or retirement for years  
          of service or for age                                                   
     ``Each reserve warrant officer of the Army, Navy, Air Force, or      
  Marine Corps who is in an active status and has reached the maximum     
  years of service or age prescribed by the Secretary concerned shall--   
       ``(1) be transferred to the Retired Reserve if the warrant officer  
   is qualified for such transfer and does not request (in accordance with 
   regulations prescribed by the Secretary concerned) not to be transferred
   to the Retired Reserve; or                                              
       ``(2) be discharged if the warrant officer is not qualified for     
   transfer to the Retired Reserve or has requested (in accordance with    
   regulations prescribed by the Secretary concerned) not to be so         
   transferred.''.                                                         
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``12244. Warrant officers: discharge or retirement for years of   
      service or for age.''.                                                  


     (f) Discharge or Retirement of Enlisted Members for Years of Service 
  or Age.--(1) Chapter 1203 of such title is amended by adding at the end 
  the following new section:                                              
                    ``12108. Enlisted members: discharge or retirement for years  
          of service or for age                                                   
     ``Each reserve enlisted member of the Army, Navy, Air Force, or      
  Marine Corps who is in an active status and has reached the maximum     
  years of service or age prescribed by the Secretary concerned shall--   
       ``(1) be transferred to the Retired Reserve if the member is        
   qualified for such transfer and does not request (in accordance with    
   regulations prescribed by the Secretary concerned) not to be transferred
   to the Retired Reserve; or                                              
       ``(2) be discharged if the member is not qualified for transfer to  
   the Retired Reserve or has requested (in accordance with regulations    
   prescribed by the Secretary concerned) not to be so transferred.''.     
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``12108. Enlisted members: discharge or retirement for years of   
      service or for age.''.                                                  


     (g) Effective Date.--The amendments made by this section shall take  
  effect on the first day of the first month that begins more than 180    
  days after the date of the enactment of this Act.                       

          SEC. 518. SPACE-REQUIRED TRAVEL BY RESERVES ON MILITARY AIRCRAFT.       

     (a) Correction of Impairment to Authorized Travel With               
  Allowances.--Subsection (a) of section 18505 of title 10, United States 
  Code, is amended by striking ``annual training duty or'' each place it  
  appears.                                                                
     (b) Conforming Amendments.--The heading for such section, and the    
  item relating to such section in the table of sections at the beginning 
  of chapter 1805 of such title, are each amended by striking the fourth, 
  fifth, sixth, and seventh words.                                        

                    SEC. 519. PAYMENT OF FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM  
          PREMIUMS FOR CERTAIN RESERVISTS CALLED TO ACTIVE DUTY IN SUPPORT OF     
          CONTINGENCY OPERATIONS.                                                 
     (a) In General.--Subsection (e) of section 8906 of title 5, United   
  States Code, is amended by adding at the end the following new          
  paragraph:                                                              
     ``(3)(A) An employing agency may pay both the employee and Government
  contributions, and any additional administrative expenses otherwise     
  chargeable to the employee, with respect to health care coverage for an 
  employee described in subparagraph (B) and the family of such employee. 
    ``(B) An employee referred to in subparagraph (A) is an employee who--

     ``(i) is enrolled in a health benefits plan under this chapter;       

     ``(ii) is a member of a reserve component of the armed forces;        

       ``(iii) is called or ordered to active duty in support of a         
   contingency operation (as defined in section 101(a)(13) of title 10);   
       ``(iv) is placed on leave without pay or separated from service to  
   perform active duty; and                                                
       ``(v) serves on active duty for a period of more than 30 consecutive
   days.                                                                   
     ``(C) Notwithstanding the one-year limitation on coverage described  
  in paragraph (1)(A), payment may be made under this paragraph for a     
  period not to exceed 18 months.''.                                      
     (b) Conforming Amendment.--The matter preceding paragraph (1) in     
  subsection (f) of such section is amended to read as follows:           
     ``(f) The Government contribution, and any additional payments under 
  subsection (e)(3)(A), for health benefits for an employee shall be      
  paid--''.                                                               
     (c) Applicability.--The amendments made by this section apply with   
  respect to employees called to active duty on or after December 8, 1995,
  and an agency may make retroactive payments to such employees for       
  premiums paid on or after such date.                                    

                      Subtitle C--Joint Specialty Officers and Joint Professional  
           Military Education                                                      

          SEC. 521. NOMINATIONS AND PROMOTIONS FOR JOINT SPECIALTY OFFICERS.      

     (a) Selection of Officers for the Joint Speciality.--Paragraph (2) of
  section 661(b) of title 10, United States Code, is amended by striking  
  ``The Secretaries'' and all that follows through ``officers--'' and     
  inserting ``Each officer on the active-duty list on the date of the     
  enactment of the National Defense Authorization Act for Fiscal Year 2002
  who has not before that date been nominated for the joint specialty by  
  the Secretary of a military department, and each officer who is placed  
  on the active-duty list after such date, who meets the requirements of  
  subsection (c) shall automatically be considered to have been nominated 
  for the joint specialty. From among those officers considered to be     
  nominated for the joint specialty, the Secretary may select for the     
  joint specialty only officers--''.                                      
     (b) Promotion Rate for Officers With the Joint Specialty.--Paragraph 
  (2) of section 662(a) of such title is amended by striking ``promoted at
  a rate'' and inserting ``promoted--                                     
       ``(A) during the three-year period beginning on the date of the     
   enactment of the National Defense Authorization Act for Fiscal Year     
   2002, at a rate not less than the rate for officers of the same armed   
   force in the same grade and competitive category; and                   
       ``(B) after the end of the period specified in subparagraph (A), at 
   a rate''.                                                               

          SEC. 522. JOINT DUTY CREDIT.                                            

     Paragraph (4) of section 664(i) of title 10, United States Code, is  
  amended--                                                               
       (1) in subparagraph (E), by striking ``The'' and inserting ``Except 
   as provided in subparagraph (F), the''; and                             
     (2) by adding at the end the following new subparagraph:              

       ``(F) Service in a temporary joint task force assignment not        
   involved in combat or combat-related operations may not be credited for 
   the purposes of joint duty, unless, and only if--                       
       ``(i) the service of the officer and the nature of the joint task   
   force not only meet all criteria of this section, except subparagraph   
   (E), but also any additional criteria the Secretary may establish;      
       ``(ii) the Secretary has specifically approved the operation        
   conducted by the joint task force as one that qualifies for joint       
   service credit, and notifies Congress upon each approval, providing the 
   criteria that led to that approval; and                                 
       ``(iii) the operation is conducted by the joint task force in an    
   environment where an extremely fragile state of peace and high potential
   for hostilities coexist.''.                                             

                    SEC. 523. RETROACTIVE JOINT SERVICE CREDIT FOR DUTY IN CERTAIN
          JOINT TASK FORCES.                                                      
     (a) Authority.--In accordance with section 664(i) of title 10, United
  States Code, as amended by section 522, the Secretary of Defense may    
  award joint service credit to any officer who served on the staff of a  
  United States joint task force headquarters in an operation and during  
  the period set forth in subsection (b) and who meets the criteria       
  specified in such section. To determine which officers qualify for such 
  retroactive credit, the Secretary shall undertake a case-by-case review 
  of the records of officers.                                             
     (b) Eligible Operations.--Service in the following operations, during
  the specified periods, may be counted for credit under subsection (a):  
       (1) Operation Northern Watch, during the period beginning on August 
   1, 1992, and ending on a date to be determined.                         
       (2) Operation Southern Watch, during the period beginning on August 
   27, 1992, and ending on a date to be determined.                        
       (3) Operation Able Sentry, during the period beginning on June 26,  
   1993, and ending on February 28, 1999.                                  
       (4) Operation Joint Endeavor, during the period beginning on        
   December 25, 1995, and ending on December 19, 1996.                     
       (5) Operation Joint Guard, during the period beginning on December  
   20, 1996, and ending on June 20, 1998.                                  
       (6) Operation Desert Thunder, beginning on January 24, 1998, and    
   ending on December 15, 1998.                                            

       (7) Operation Joint Forge, beginning on June 20, 1998, and ending on
   June 10, 1999.                                                          
       (8) Operation Noble Anvil, beginning on March 24, 1999, and ending  
   on July 20, 1999.                                                       
       (9) Operation Joint Guardian, beginning on June 11, 1999, and ending
   on a date to be determined.                                             
     (c) Report.--Not later than one year after the date of the enactment 
  of this Act, the Secretary of Defense shall submit to Congress a report 
  of the numbers, by service, grade, and operation, of the officers given 
  joint service credit in accordance with this section.                   

          SEC. 524. REVISION TO ANNUAL REPORT ON JOINT OFFICER MANAGEMENT.        

    Section 667 of title 10, United States Code, is amended--             

     (1) in paragraph (1)--                                                

     (A) by inserting ``(A)'' after ``(1)''; and                           

     (B) by adding at the end the following new subparagraph:              

       ``(B) The number of officers who meet the criteria for selection for
   the joint specialty but were not selected, together with the reasons    
   why.'';                                                                 
     (2) by amending paragraph (2) to read as follows:                     

       ``(2) The number of officers with the joint specialty, shown by     
   grade and branch or specialty and by education.'';                      
     (3) in paragraph (3)--                                                

       (A) in subparagraph (A) and (B), by striking ``nominated'' and      
   inserting ``selected'';                                                 
     (B) by inserting ``and'' at the end of subparagraph (D);              

     (C) by striking subparagraph (E); and                                 

     (D) by redesignating subparagraph (F) as subparagraph (E);            

       (4) in paragraph (4)(A), by striking ``nominated'' and inserting    
   ``selected'';                                                           
     (5) in paragraph (14)--                                               

     (A) by inserting ``(A)'' after ``(14)''; and                          

     (B) by adding at the end the following new subparagraph:              

       ``(B) An assessment of the extent to which the Secretary of each    
   military department is assigning personnel to joint duty assignments in 
   accordance with this chapter and the policies, procedures, and practices
   established by the Secretary of Defense under section 661(a) of this    
   title.''; and                                                           
       (6) in paragraph (16), by striking ``section 664(i)'' in the matter 
   preceding subparagraph (A) and in subparagraph (B) and inserting        
   ``subparagraphs (E) and (F) of section 664(i)(4)''.                     

                    SEC. 525. REQUIREMENT FOR SELECTION FOR JOINT SPECIALTY BEFORE
          PROMOTION TO GENERAL OR FLAG OFFICER GRADE.                             
     (a) Requirement.--Subsection (a) of section 619a of title 10, United 
  States Code, is amended by striking ``unless'' and all that follows and 
  inserting ``unless--                                                    
       ``(1) the officer has completed a full tour of duty in a joint duty 
   assignment (as described in section 664(f) of this title); and          
       ``(2) for appointments after September 30, 2007, the officer has    
   been selected for the joint specialty in accordance with section 661 of 
   this title.''.                                                          
     (b) Waiver Authority.--Subsection (b) of that section is amended by  
  striking ``may waive subsection (a) in the following circumstances:''   
  and inserting ``may waive paragraph (1) or paragraph (2) of subsection  
  (a), or both paragraphs (1) and (2) of subsection (a), in the following 
  circumstances:''.                                                       
     (c) Proposed Legislative Changes.--Not later than December 1, 2002,  
  the Secretary of Defense shall submit to Congress a draft proposal for  
  such legislative changes as the Secretary considers needed to implement 
  the amendment made by subsections (a) and (b).                          

                    SEC. 526. INDEPENDENT STUDY OF JOINT OFFICER MANAGEMENT AND   
          JOINT PROFESSIONAL MILITARY EDUCATION REFORMS.                          
     (a) Study.--The Secretary of Defense shall provide for an independent
  study of the joint officer management system and the joint professional 
  military education system. The Secretary shall ensure that the entity   
  conducting the study is provided such information and support as        
  required. The Secretary shall include in the contract for the study a   
  requirement that the entity conducting the study submit a report to     
  Congress on the study not later than one year after the date of the     
  enactment of this Act.                                                  
     (b) Matters To Be Included With Respect to Joint Officer             
  Management.--With respect to the joint officer management system, the   
  entity conducting the independent study shall provide for the following:
       (1) Assessment of implications for joint officer education,         
   development, and management that would result from proposed joint       
   organizational operational concepts (such as standing joint task forces)
   and from emerging officer management and personnel reforms (such as     
   longer careers and more stabilization), that are under consideration by 
   the Secretary of Defense.                                               
       (2) Assessment of the effectiveness of the current joint officer    
   management system to develop and use joint specialty qualified officers 
   in meeting both current and future requirements for joint specialty     
   officers.                                                               
       (3) Recommendations, based on empirical and other data, to improve  
   the effectiveness of the joint officer management system, especially    
   with regard to the following:                                           
       (A) The proper mix and sequencing of education assignments and      
   experience assignments (to include, with respect to both types of       
   assignments, consideration of the type and quality, and the length, of  
   such assignments) to qualify an officer as a joint specialty officer, as
   well as the implications of adopting a variable joint duty tour length  
   and the advisability and implications of a system of qualifying officers
   as joint specialty officers that uses multiple shorter qualification    
   tracks to selection as a joint specialty officer than are now codified. 
       (B) The system of using joint specialty officers, including the     
   continued utility of such measures as--                                 
       (i) the required fill of positions on the joint duty assignment     
   list, as specified in paragraphs (1) and (4) of section 661(d) of title 
   10, United States Code;                                                 
       (ii) the fill by such officers of a required number of critical     
   billets, as prescribed by section 661(d)(2) of such title;              
       (iii) the mandated fill by general and flag officers of a minimum   
   number of critical billets, as prescribed by section 661(d)(3) of such  
   title; and                                                              
       (iv) current promotion policy objectives for officers with the joint
   specialty, officers serving on the Joint Staff, and officers serving in 
   joint duty assignment list positions, as prescribed by section 662 of   
   such title.                                                             
       (C) Changes in policy and law required to provide officers the      
   required joint specialty qualification before promotion to general or   
   flag officer grade.                                                     
       (D) A determination of the number of reserve component officers who 
   would be qualified for designation as a joint specialty officer by      
   reason of experience or education if the standards of existing law,     
   including waiver authorities, were applied to them, and recommendations 
   for a process for qualifying and employing future reserve component     
   officers as joint specialty officers.                                   
     (c) Matters To Be Included With Respect to Joint Professional        
  Military Education.--With respect to the joint professional military    
  education system, the entity conducting the independent study shall     
  provide for the following:                                              
       (1) The number of officers who under the current system (A)         
   qualified as joint specialty officers by attending joint professional   
   military education programs before their first joint duty assignment,   
   (B) qualified as joint specialty officers after arriving at their first 
   joint duty assignment but before completing that assignment, and (C)    
   qualified as joint specialty officers without any joint professional    
   military education.                                                     
       (2) Recommended initiatives (include changes in officer personnel   
   management law, if necessary) to provide incentives and otherwise       
   facilitate attendance at joint professional military education programs 
   before an officer's first joint duty assignment.                        
       (3) Recommended goals for attendance at the Joint Forces Staff      
   College en route to a first joint duty assignment.                      
       (4) An assessment of the continuing utility of statutory            
   requirements for use of officers following joint professional military  
   education, as prescribed by section 662(d) of title 10, United States   
   Code.                                                                   
       (5) Determination of whether joint professional military education  
   programs should remain principally an in-resident, multi-service        
   experience and what role non-resident or distributive learning can or   
   should play in future joint professional military education programs.   
       (6) Examination of options for the length of and increased capacity 
   at Joint Forces Staff College, and whether other in-resident joint      
   professional military education sources should be opened, and if opened,
   how they might be properly accredited and overseen to provide           
   instruction at the level of the program designated as ``joint           
   professional military education''.                                      
     (d) Chairman of Joint Chiefs of Staff.--With respect to the roles of 
  the Secretary of Defense and the Chairman of the Joint Chiefs of Staff, 
  the entity conducting the independent study shall--                     

       (1) provide for an evaluation of the current roles of the Secretary 
   of Defense, the Chairman of the Joint Chiefs of Staff, and joint staff  
   in law, policy, and implementation with regard to establishing and      
   maintaining oversight of joint officer management, career guidelines,   
   and joint professional military education; and                          
     (2) make recommendations to improve and strengthen those roles.       

     (e) Requirements for Study Entity.--In providing for the independent 
  study required by subsection (a), the Secretary of Defense shall ensure 
  that the entity conducting the study--                                  
     (1) is not a Department of Defense organization; and                  

       (2) shall, at a minimum, involve in the study, in an integral way,  
   the following persons:                                                  
       (A) The Chairman of the Joint Chiefs of Staff and available former  
   Chairmen of the Joint Chiefs of Staff.                                  
       (B) Members and former members of the Joint Staff, the Armed Forces,
   the Congress, and congressional staff who are or who have been          
   significantly involved in the development, implementation, or           
   modification of joint officer management and joint professional military
   education.                                                              
       (C) Experts in joint officer management and education from civilian 
   academic and research centers.                                          

          SEC. 527. PROFESSIONAL DEVELOPMENT EDUCATION.                           

     (a) Executive Agent for Funding.--(1) Effective beginning with fiscal
  year 2003, the Secretary of Defense shall be the executive agent for    
  funding professional development education operations of all components 
  of the National Defense University, including the Joint Forces Staff    
  College. The Secretary may not delegate the Secretary's functions and   
  responsibilities under the preceding sentence to the Secretary of a     
  military department.                                                    
     (2) Nothing in this subsection affects policies in effect on the date
  of the enactment of this Act with respect to--                          
       (A) the reporting of the President of the National Defense          
   University to the Chairman of the Joint Chiefs of Staff; or             
       (B) provision of logistical and base operations support for         
   components of the National Defense University by the military           
   departments.                                                            
     (b) Preparation of Budget Requests.--Section 2162(b) of title 10,    
  United States Code, is amended--                                        
     (1) by redesignating paragraph (2) as paragraph (3); and              

     (2) by inserting after paragraph (1) the following new paragraph:     

     ``(2) As executive agent for funding professional development        
  education at the National Defense University, including the Joint Forces
  Staff College, the Secretary of Defense, with the advice of the Chairman
  of the Joint Chiefs of Staff, shall prepare the annual budget for       
  professional development education operations at the National Defense   
  University and set forth that request as a separate budget request in   
  the materials submitted to Congress in support of the budget request for
  the Department of Defense. Nothing in the preceding sentence affects    
  policies in effect on the date of the enactment of this paragraph with  
  respect to budgeting for the funding of logistical and base operations  
  support for components of the National Defense University through the   
  military departments.''.                                                
     (c) Funding Source.--(1) Section 2165 of title 10, United States     
  Code, is amended by adding at the end the following new subsection:     
     ``(d) Source of Funds for Professional Development Education         
  Operations.--Funding for the professional development education         
  operations of the National Defense University shall be provided from    
  funds made available to the Secretary of Defense from the annual        
  appropriation `Operation and Maintenance, Defense-wide'.''.             
     (2) Subsection (d) of section 2165 of title 10, United States Code,  
  as added by paragraph (1), shall become effective beginning with fiscal 
  year 2003.                                                              

                    SEC. 528. AUTHORITY FOR NATIONAL DEFENSE UNIVERSITY TO ENROLL 
          CERTAIN PRIVATE SECTOR CIVILIANS.                                       
     (a) In General.--(1) Chapter 108 of title 10, United States Code, is 
  amended by adding at the end the following new section:                 
                    ``2167. National Defense University: admission of private     
          sector civilians to professional military education program             
     ``(a) Authority for Admission.--The Secretary of Defense may permit  
  eligible private sector employees who work in organizations relevant to 
  national security to receive instruction at the National Defense        
  University in accordance with this section. No more than the equivalent 
  of 10 full-time student positions may be filled at any one time by      
  private sector employees enrolled under this section. Upon successful   
  completion of the course of instruction in which enrolled, any such     
  private sector employee may be awarded an appropriate diploma or degree 
  under section 2165 of this title.                                       
     ``(b) Eligible Private Sector Employees.--For purposes of this       
  section, an eligible private sector employee is an individual employed  
  by a private firm that is engaged in providing to the Department of     
  Defense or other Government departments or agencies significant and     
  substantial defense-related systems, products, or services or whose work
  product is relevant to national security policy or strategy. A private  
  sector employee admitted for instruction at the National Defense        
  University remains eligible for such instruction only so long as that   
  person remains employed by the same firm.                               
     ``(c) Annual Certification by Secretary of Defense.--Private sector  
  employees may receive instruction at the National Defense University    
  during any academic year only if, before the start of that academic     
  year, the Secretary of Defense determines, and certifies to the         
  Committee on Armed Services of the Senate and the Committee on Armed    
  Services of the House of Representatives, that providing instruction to 
  private sector employees under this section during that year will       
  further national security interests of the United States.               
     ``(d) Program Requirements.--The Secretary of Defense shall ensure   
  that--                                                                  
       ``(1) the curriculum for the professional military education program
   in which private sector employees may be enrolled under this section is 
   not readily available through other schools and concentrates on national
   security relevant issues; and                                           
       ``(2) the course offerings at the National Defense University       
   continue to be determined solely by the needs of the Department of      
   Defense.                                                                
     ``(e) Tuition.--The President of the National Defense University     
  shall charge students enrolled under this section a rate--              
       ``(1) that is at least the rate charged for employees of the United 
   States outside the Department of Defense, less infrastructure costs, and
       ``(2) that considers the value to the school and course of the      
   private sector student.                                                 
     ``(f) Standards of Conduct.--While receiving instruction at the      
  National Defense University, students enrolled under this section, to   
  the extent practicable, are subject to the same regulations governing   
  academic performance, attendance, norms of behavior, and enrollment as  
  apply to Government civilian employees receiving instruction at the     
  university.                                                             
     ``(g) Use of Funds.--Amounts received by the National Defense        
  University for instruction of students enrolled under this section shall
  be retained by the university to defray the costs of such instruction.  
  The source, and the disposition, of such funds shall be specifically    
  identified in records of the university.''.                             
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``2167. National Defense University: admission of private sector  
      civilians to professional military education program.''.                


     (b) Effective Date.--Section 2167 of title 10, United States Code, as
  added by subsection (a), shall take effect on January 1, 2002.          

                    SEC. 529. CONTINUATION OF RESERVE COMPONENT PROFESSIONAL      
          MILITARY EDUCATION TEST.                                                
     (a) Continuation of Concept Validation Test.--During fiscal year     
  2002, the Secretary of Defense shall continue the concept validation    
  test of Reserve component joint professional military education that was
  begun in fiscal year 2001 at the National Defense University.           
     (b) Pilot Program.--If the Secretary of Defense determines that the  
  results of the concept validation test referred to in subsection (a)    
  warrant conducting a pilot program of the concept that was the subject  
  of the test, the Secretary shall conduct such a pilot program during    
  fiscal year 2003.                                                       
     (c) Funding.--The Secretary shall provide funds for the concept      
  validation test under subsection (a) and for any pilot program under    
  subsection (b) from funds appropriated to the Secretary of Defense in   
  addition those appropriated for operations of the National Defense      
  University.                                                             

           Subtitle D--Military Education and Training                             

          SEC. 531. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER.           

     (a) Authority To Confer Associate of Arts Degree.--Chapter 108 of    
  title 10, United States Code, is amended by adding after section 2167,  
  as added by section 528(a)(1), the following new section:               
                    ``2168. Defense Language Institute Foreign Language Center:   
          degree of Associate of Arts in foreign language                         
     ``(a) Subject to subsection (b), the Commandant of the Defense       
  Language Institute may confer an Associate of Arts degree in a foreign  
  language upon any graduate of the Foreign Language Center of the        
  Institute who fulfills the requirements for that degree.                
     ``(b) A degree may be conferred upon a student under this section    
  only if the Provost of the Center certifies to the Commandant that the  
  student has satisfied all the requirements prescribed for the degree.   
     ``(c) The authority provided by subsection (a) shall be exercised    
  under regulations prescribed by the Secretary of Defense.''.            
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding after the item relating to section    
  2167, as added by section 528(a)(2), the following new item:            


            ``2168. Defense Language Institute Foreign Language Center: degree
      of Associate of Arts in foreign language.''.                            

                    SEC. 532. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD  
          DEGREE OF MASTER OF STRATEGIC STUDIES.                                  
     (a) Marine Corps War College Degree.--Section 7102 of title 10,      
  United States Code, is amended--                                        
     (1) by redesignating subsection (b) as subsection (c); and            

       (2) by inserting after subsection (a) the following new subsection  
   (b):                                                                    
     ``(b) Marine Corps War College.--Upon the recommendation of the      
  Director and faculty of the Marine Corps War College of the Marine Corps
  University, the President of the Marine Corps University may confer the 
  degree of master of strategic studies upon graduates of the Marine Corps
  War College who fulfill the requirements for that degree.''.            
     (b) Conforming Amendments.--(1) Subsection (a) of such section is    
  amended by striking ``upon graduates'' and all that follows and         
  inserting ``upon graduates of the Command and Staff College who fulfill 
  the requirements for that degree.''.                                    
     (2) Subsection (c) of such section, as redesignated by subsection    
  (a)(1), is amended by striking ``subsection (a)'' and inserting         
  ``subsections (a) and (b)''.                                            
    (3)(A) The heading of such section is amended to read as follows:     

          ``7102. Marine Corps University: masters degrees; board of advisors''.  

     (B) The item relating to such section in the table of sections at the
  beginning of chapter 609 of such title is amended to read as follows:   


      ``7102. Marine Corps University: masters degrees; board of advisors.''. 



     (c) Codification of Requirement for Board of Advisors.--(1) Section  
  7102 of title 10, United States Code, as amended by subsections (a) and 
  (b), is further amended by adding at the end the following new          
  subsection:                                                             
     ``(d) Board of Advisors.--The Secretary of the Navy shall establish a
  board of advisors for the Marine Corps University. The Secretary shall  
  ensure that the board is established so as to meet all requirements of  
  the appropriate regional accrediting association.''.                    
     (2) Section 912 of the National Defense Authorization Act for Fiscal 
  Year 1995 (Public Law 103 337; 10 U.S.C. 7102 note) is repealed.        
     (d) Effective Date.--The authority to confer the degree of master of 
  strategic studies under section 7102(b) of title 10, United States Code 
  (as added by subsection (a)) may not be exercised until the Secretary of
  Education determines, and certifies to the President of the Marine Corps
  University, that the requirements established by the Marine Corps War   
  College of the Marine Corps University for that degree are in accordance
  with generally applicable requirements for a degree of master of arts.  
  Upon receipt of such a certification, the President of the University   
  shall promptly transmit a copy of the certification to the Committee on 
  Armed Services of the Senate and Committee on Armed Services of the     
  House of Representatives.                                               

          SEC. 533. FOREIGN STUDENTS ATTENDING THE SERVICE ACADEMIES.             

     (a) United States Military Academy.--(1) Subsection (a)(1) of section
  4344 of title 10, United States Code, is amended by striking ``not more 
  than 40 persons'' and inserting ``not more than 60 persons''.           
    (2) Subsection (b) of such section is amended--                       

       (A) in paragraph (2), by striking ``unless a written waiver of      
   reimbursement is granted by the Secretary of Defense'' in the first     
   sentence; and                                                           
     (B) by striking paragraph (3) and inserting the following:            

     ``(3) The Secretary of Defense may waive, in whole or in part, the   
  requirement for reimbursement of the cost of instruction for a cadet    
  under paragraph (2). In the case of a partial waiver, the Secretary     
  shall establish the amount waived.''.                                   
     (3) The amendments made by paragraph (2) shall not apply with respect
  to any person who entered the United States Military Academy to receive 
  instruction under section 4344 of title 10, United States Code, before  
  the date of the enactment of this Act.                                  
     (b) United States Naval Academy.--(1) Subsection (a)(1) of section   
  6957 of such title is amended by striking ``not more than 40 persons''  
  and inserting ``not more than 60 persons''.                             
    (2) Subsection (b) of such section is amended--                       

       (A) in paragraph (2), by striking ``unless a written waiver of      
   reimbursement is granted by the Secretary of Defense'' in the first     
   sentence; and                                                           
     (B) by striking paragraph (3) and inserting the following:            

     ``(3) The Secretary of Defense may waive, in whole or in part, the   
  requirement for reimbursement of the cost of instruction for a          
  midshipman under paragraph (2). In the case of a partial waiver, the    
  Secretary shall establish the amount waived.''.                         
     (3) The amendments made by paragraph (2) shall not apply with respect
  to any person who entered the United States Naval Academy to receive    
  instruction under section 6957 of title 10, United States Code, before  
  the date of the enactment of this Act.                                  
     (c) United States Air Force Academy.--(1) Subsection (a)(1) of       
  section 9344 of such title is amended by striking ``not more than 40    
  persons'' and inserting ``not more than 60 persons''.                   
    (2) Subsection (b) of such section is amended--                       

       (A) in paragraph (2), by striking ``unless a written waiver of      
   reimbursement is granted by the Secretary of Defense'' in the first     
   sentence; and                                                           
     (B) by striking paragraph (3) and inserting the following:            

     ``(3) The Secretary of Defense may waive, in whole or in part, the   
  requirement for reimbursement of the cost of instruction for a cadet    
  under paragraph (2). In the case of a partial waiver, the Secretary     
  shall establish the amount waived.''.                                   
     (3) The amendments made by paragraph (2) shall not apply with respect
  to any person who entered the United States Air Force Academy to receive
  instruction under section 9344 of title 10, United States Code, before  
  the date of the enactment of this Act.                                  
     (d) Effective Date.--The amendments made by this section shall not   
  apply with respect to any academic year that began before the date of   
  the enactment of this Act.                                              

                    SEC. 534. INCREASE IN MAXIMUM AGE FOR APPOINTMENT AS A CADET  
          OR MIDSHIPMAN IN SENIOR RESERVE OFFICERS' TRAINING CORPS SCHOLARSHIP    
          PROGRAMS.                                                               
     (a) General ROTC Scholarship Program.--Section 2107(a) of title 10,  
  United States Code, is amended--                                        
       (1) by striking ``27 years of age on June 30'' and inserting ``31   
   years of age on December 31''; and                                      
       (2) by striking ``, except that'' and all that follows through ``on 
   such date'' the second place it appears.                                
     (b) Army Reserve and Army National Guard ROTC Scholarship            
  Program.--Section 2107a(a)(1) of such title is amended--                
       (1) by striking ``27 years of age on June 30'' and inserting ``31   
   years of age on December 31''; and                                      
       (2) by striking ``, except that'' and all that follows through ``on 
   such date'' the second place it appears.                                

                    SEC. 535. PARTICIPATION OF REGULAR ENLISTED MEMBERS OF THE    
          ARMED FORCES IN SENIOR RESERVE OFFICERS' TRAINING CORPS PROGRAM.        
     (a) Eligibility.--Section 2104(b)(3) of title 10, United States Code,
  is amended by striking ``a reserve component of''.                      
     (b) Pay Rate While on Field Training or Practice Cruise.--Section    
  209(c) of title 37, United States Code, is amended by inserting before  
  the period at the end the following: ``, except that the rate for a     
  cadet or midshipmen who is a member of the regular component of an armed
  force shall be the rate of basic pay applicable to the member under     
  section 203 of this title''.                                            

                    SEC. 536. AUTHORITY TO MODIFY THE SERVICE OBLIGATION OF       
          CERTAIN ROTC CADETS IN MILITARY JUNIOR COLLEGES RECEIVING FINANCIAL     
          ASSISTANCE.                                                             
     (a) Authority To Modify Agreements.--Subsection (b) of section 2107a 
  of title 10, United States Code, is amended--                           
     (1) by inserting ``(1)'' after ``(b)'';                               

       (2) by redesignating paragraphs (1), (2), (3), (4), (5), and (6) as 
   subparagraphs (A), (B), (C), (D), (E), and (F), respectively;           
       (3) by designating the sentence following subparagraph (F), as so   
   redesignated, as paragraph (2); and                                     
     (4) by adding at the end the following new paragraph:                 

     ``(3) In the case of a cadet under this section at a military junior 
  college, the Secretary may, at any time and with the consent of the     
  cadet concerned, modify an agreement described in paragraph (1)(F)      
  submitted by the cadet to reduce or eliminate the troop program unit    
  service obligation specified in the agreement and to establish, in lieu 
  of that obligation, an active duty service obligation. Such a           
  modification may be made only if the Secretary determines that it is in 
  the best interests of the United States to do so.''.                    

     (b) Retroactive Application.--The authority of the Secretary of      
  Defense under paragraph (3) of section 2107a(b) of title 10, United     
  States Code, as added by subsection (a), may be exercised with regard to
  any agreement described in paragraph (1)(F) of such section (including  
  agreements related to participation in the Advanced Course of the Army  
  Reserve Officers' Training Corps at a military college or civilian      
  institution) that was entered into during the period beginning on       
  January 1, 1991, and ending on July 12, 2000 (in addition to any        
  agreement described in that paragraph that is entered into on or after  
  the date of the enactment of this Act).                                 
     (c) Technical Amendment.--Subsection (h) of such section is amended  
  by striking ``military college'' in the second sentence and inserting   
  ``military junior college''.                                            

                    SEC. 537. REPEAL OF LIMITATION ON NUMBER OF JUNIOR RESERVE    
          OFFICERS' TRAINING CORPS UNITS.                                         
     Section 2031(a)(1) of title 10, United States Code, is amended by    
  striking the second sentence.                                           

                    SEC. 538. MODIFICATION OF NURSE OFFICER CANDIDATE ACCESSION   
          PROGRAM RESTRICTION ON STUDENTS ATTENDING EDUCATIONAL INSTITUTIONS WITH 
          SENIOR RESERVE OFFICERS' TRAINING PROGRAMS.                             
    Section 2130a of title 10, United States Code, is amended--           

       (1) in subsection (a)(2), by striking ``that does not have a Senior 
   Reserve Officers' Training Program established under section 2102 of    
   this title''; and                                                       
       (2) in subsection (b)(1), by inserting before the semicolon at the  
   end ``or that has a Senior Reserve Officers' Training Program for which 
   the student is ineligible''.                                            

          SEC. 539. RESERVE HEALTH PROFESSIONALS STIPEND PROGRAM EXPANSION.       

     (a) Purpose of Program.--Subsection (a) of section 16201 of title 10,
  United States Code, is amended--                                        
     (1) by striking ``specialties critically needed in wartime'';         

       (2) by striking ``training in such specialties'' and inserting      
   ``training that leads to a degree in medicine or dentistry or training  
   in a health professions specialty that is critically needed in          
   wartime''; and                                                          
       (3) by striking ``training in certain health care specialties'' and 
   inserting ``health care education and training''.                       
     (b) Medical and Dental Student Stipend.--Such section is further     
  amended--                                                               
       (1) by redesignating subsections (b), (c), (d), and (e) as          
   subsections (c), (d), (e), and (f), respectively; and                   
       (2) by inserting after subsection (a) the following new subsection  
   (b):                                                                    
     ``(b) Medical and Dental School Students.--(1) Under the stipend     
  program under this chapter, the Secretary of the military department    
  concerned may enter into an agreement with a person who--               
       ``(A) is eligible to be appointed as an officer in a reserve        
   component;                                                              
       ``(B) is enrolled or has been accepted for enrollment in an         
   institution in a course of study that results in a degree in medicine or
   dentistry;                                                              
       ``(C) signs an agreement that, unless sooner separated, the person  
   will--                                                                  
     ``(i) complete the educational phase of the program;                  

       ``(ii) accept a reappointment or redesignation within the person's  
   reserve component, if tendered, based upon the person's health          
   profession, following satisfactory completion of the educational and    
   intern programs; and                                                    
     ``(iii) participate in a residency program; and                       

       ``(D) if required by regulations prescribed by the Secretary of     
   Defense, agrees to apply for, if eligible, and accept, if offered,      
   residency training in a health profession skill which has been          
   designated by the Secretary of Defense as a critically needed wartime   
   skill.                                                                  
    ``(2) Under the agreement--                                           

       ``(A) the Secretary of the military department concerned shall agree
   to pay the participant a stipend, in the amount determined under        
   subsection (f), for the period or the remainder of the period that the  
   student is satisfactorily progressing toward a degree in medicine or    
   dentistry while enrolled in an accredited medical or dental school;     
       ``(B) the participant shall not be eligible to receive such stipend 
   before appointment, designation, or assignment as an officer for service
   in the Ready Reserve;                                                   
       ``(C) the participant shall be subject to such active duty          
   requirements as may be specified in the agreement and to active duty in 
   time of war or national emergency as provided by law for members of the 
   Ready Reserve; and                                                      
       ``(D) the participant shall agree to serve in the Selected Reserve, 
   upon successful completion of the program, for the period of service    
   applicable under paragraph (3).                                         
     ``(3)(A) Subject to subparagraph (B), the period for which a         
  participant is required to serve in the Selected Reserve under the      
  agreement pursuant to paragraph (2)(D) shall be one year for each period
  of six months, or part thereof, for which the participant is provided a 
  stipend pursuant to the agreement.                                      
     ``(B) In the case of a participant who enters into a subsequent      
  agreement under subsection (c) and successfully completes residency     
  training in a specialty designated by the Secretary of Defense as a     
  specialty critically needed by the military department in wartime, the  
  requirement to serve in the Selected Reserve may be reduced to one year 
  for each year, or part thereof, for which the stipend was provided while
  enrolled in medical or dental school.''.                                
     (c) Wartime Critical Skills .--Subsection (c) of such section (as    
  redesignated by subsection (b)(1)) is amended--                         
     (1) by inserting `` Wartime'' after `` Critical'' in the heading; and 

       (2) by inserting ``or has been appointed as a medical or dental     
   officer in the Reserve of the armed force concerned'' in paragraph      
   (1)(B) before the semicolon at the end.                                 
     (d) Service Obligation Requirement.--Paragraph (2)(D) of subsection  
  (c) of such section (as redesignated by subsection (b)(1)) and paragraph
  (2)(D) of subsection (d) of such section (as so redesignated) are       
  amended by striking ``two years in the Ready Reserve for each year,''   
  and inserting ``one year in the Ready Reserve for each six months,''.   
     (e) Cross-Reference.--Paragraph (2)(A) of subsection (c) of such     
  section (as redesignated by subsection (b)(1)) and paragraph (2)(A) of  
  subsection (d) of such section (as so redesignated) are amended by      
  striking ``subsection (e)'' and inserting ``subsection (f)''.           

                    SEC. 540. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR THE CORPS OF 
          CADETS AT THE UNITED STATES MILITARY ACADEMY.                           
     (a) Authority.--The second sentence of section 4337 of title 10,     
  United States Code, is amended by striking ``the same allowances'' and  
  all that follows through ``captain'' and inserting ``a monthly housing  
  allowance in the same amount as the basic allowance for housing allowed 
  to a lieutenant colonel''.                                              
     (b) Effective Date.--The amendment made by subsection (a) shall take 
  effect on the first day of the first month beginning on or after the    
  date of the enactment of this Act.                                      

           Subtitle E--Recruiting and Accession Programs                           


          SEC. 541. 18-MONTH ENLISTMENT PILOT PROGRAM.                            

     (a) In General.--(1) Chapter 333 of title 10, United States Code, is 
  amended by adding at the end the following new section:                 
          ``3264. 18-month enlistment pilot program                               

     ``(a) During the pilot program period, the Secretary of the Army     
  shall carry out a pilot program with the objective of increasing        
  participation of prior service persons in the Selected Reserve and      
  providing assistance in building the pool of participants in the        
  Individual Ready Reserve.                                               
     ``(b) Under the program, the Secretary may, notwithstanding section  
  505(c) of this title, accept persons for original enlistment in the Army
  for a term of enlistment consisting of 18 months service on active duty,
  to be followed by three years of service in the Selected Reserve and    
  then service in the Individual Ready Reserve to complete the military   
  service obligation.                                                     
     ``(c) Under regulations and conditions established by the Secretary  
  of the Army, a member enlisting under this section may, at the end of   
  the 18-month period of service on active duty under that enlistment, be 
  permitted to reenlist for continued service on active duty in lieu of   
  the service in the Selected Reserve and the Individual Ready Reserve    
  otherwise required under the terms of the member's enlistment.          
     ``(d) No more than 10,000 persons may be accepted for enlistment in  
  the Army through the program under this section.                        
     ``(e) A person enlisting in the Army through the program under this  
  section is eligible for an enlistment bonus under section 309 of title  
  37, notwithstanding the enlistment time period specified in subsection  
  (a) of that section.                                                    
     ``(f) For purposes of this section, the pilot program period is the  
  period beginning on the date selected by the Secretary of the Army for  
  the commencement of the pilot program, which date shall be not later    
  than October 1, 2003, and ending on December 31, 2007.                  
     ``(g) Not later than December 31, 2007, and December 31, 2012, the   
  Secretary of the Army shall submit to the Committee on Armed Services of
  the Senate and the Committee on Armed Services of the House of          
  Representatives a report on the program under this section. In each such
  report, the Secretary shall set forth the views of the Secretary on the 
  success of the program in meeting the objectives stated in subsection   
  (a) and whether the program should be continued and, if so, whether it  
  should be modified or expanded.''.                                      
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


      ``3264. 18-month enlistment pilot program.''.                           



     (b) Implementation Report.--The Secretary of the Army shall submit to
  the Committee on Armed Services of the Senate and the Committee on Armed
  Services of the House of Representatives a report on the Secretary's    
  plan for implementation of section 3264 of title 10, United States Code,
  as added by subsection (a). Such report shall be submitted not later    
  than March 1, 2002.                                                     

          SEC. 542. IMPROVED BENEFITS UNDER THE ARMY COLLEGE FIRST PROGRAM.       

     (a) Increased Maximum Period of Delayed Entry.--Section 573 of the   
  National Defense Authorization Act for Fiscal Year 2000 (Public Law 106 
  65; 113 Stat. 623; 10 U.S.C. 513 note) is amended--                     
     (1) in subsection (b)--                                               

       (A) by striking the matter preceding paragraph (1) and inserting the
   following:                                                              
     ``(b) Delayed Entry With Allowance for Higher Education.--Under the  
  pilot program, the Secretary may--                                      
       ``(1) exercise the authority under section 513 of title 10, United  
   States Code--'';                                                        
       (B) by redesignating paragraphs (1) and (2) as subparagraphs (A) and
   (B), respectively, and realigning those subparagraphs four ems from the 
   left margin;                                                            
       (C) at the end of subparagraph (A), as so redesignated, by inserting
   ``and'' after the semicolon; and                                        
       (D) in subparagraph (B), as so redesignated, by striking ``two years
   after the date of such enlistment as a Reserve under paragraph (1)'' and
   inserting ``the maximum period of delay determined for that person under
   subsection (c)''; and                                                   
     (2) in subsection (c)--                                               

     (A) by striking ``paragraph (2)'' and inserting ``paragraph (1)(B)''; 

       (B) by striking ``two-year period'' and inserting ``30-month        
   period''; and                                                           
     (C) by striking ``paragraph (1)'' and inserting ``paragraph (1)(A)''. 

     (b) Allowance Eligibility and Amount.--(1) Such section is further   
  amended--                                                               
       (A) in subsection (b), by striking paragraph (3) and inserting the  
   following:                                                              
       ``(2) subject to paragraph (2) of subsection (d) and except as      
   provided in paragraph (3) of that subsection, pay an allowance to a     
   person accepted for enlistment under paragraph (1)(A) for each month of 
   the period during which that person is enrolled in and pursuing a       
   program described in paragraph (1)(B)''; and                            
     (B) in subsection (d)--                                               

     (i) by redesignating paragraph (2) as paragraph (4);                  

       (ii) by striking paragraph (1) and inserting the following new      
   paragraphs:                                                             
     ``(1) The monthly allowance paid under subsection (b)(2) shall be    
  equal to the amount of the subsistence allowance provided for certain   
  members of the Senior Reserve Officers' Training Corps with the         
  corresponding number of years of participation under section 209(a) of  
  title 37, United States Code.                                           
     ``(2) An allowance may not be paid to a person under this section for
  more than 24 months.                                                    
     ``(3) A member of the Selected Reserve of a reserve component may be 
  paid an allowance under this section only for months during which the   
  member performs satisfactorily as a member of a unit of the reserve     
  component that trains as prescribed in section 10147(a)(1) of title 10, 
  United States Code, or section 502(a) of title 32, United States Code.  
  Satisfactory performance shall be determined under regulations          
  prescribed by the Secretary.''.                                         
     (2) The heading for such subsection is amended by striking `` Amount 
  of''.                                                                   
     (c) Ineligibility for Loan Repayments; Recoupment.--Such section is  
  further amended--                                                       
       (1) by redesignating subsections (e), (f), and (g) as subsections   
   (g), (h), and (i), respectively; and                                    
     (2) by inserting after subsection (d) the following new subsections:  

     ``(e) Ineligibility for Loan Repayments.--A person who has received  
  an allowance under this section is not eligible for any benefits under  
  chapter 109 of title 10, United States Code.                            
     ``(f) Recoupment of Allowance.--(1) A person who, after receiving an 
  allowance under this section, fails to complete the total period of     
  service required of that person in connection with delayed entry        
  authorized for the person under section 513 of title 10, United States  
  Code, shall repay the United States the amount which bears the same     
  ratio to the total amount of that allowance paid to the person as the   
  unserved part of the total required period of service bears to the total
  period.                                                                 
       ``(2) An obligation to repay the United States imposed under        
   paragraph (1) is for all purposes a debt owed to the United States.     
       ``(3) A discharge of a person in bankruptcy under title 11, United  
   States Code, that is entered less than five years after the date on     
   which the person was, or was to be, enlisted in the regular Army        
   pursuant to the delayed entry authority under section 513 of title 10,  
   United States Code, does not discharge that person from a debt arising  
   under paragraph (1).                                                    
     ``(4) The Secretary of the Army may waive, in whole or in part, a    
  debt arising under paragraph (1) in any case for which the Secretary    
  determines that recovery would be against equity and good conscience or 
  would be contrary to the best interests of the United States.''.        
     (d) Effective Date.--The amendments made by this section shall apply 
  with respect to persons who, on or after the date of the enactment of   
  this Act, are enlisted as described in subsection (a) of section 513 of 
  title 10, United States Code, with delayed entry authorized under that  
  section.                                                                

                    SEC. 543. CORRECTION AND EXTENSION OF CERTAIN ARMY RECRUITING 
          PILOT PROGRAM AUTHORITIES.                                              
     (a) Contract Recruiting Initiatives.--Subsection (d)(2) of section   
  561 of the Floyd D. Spence National Defense Authorization Act for Fiscal
  Year 2001 (as enacted into law by Public Law 106 398; 114 Stat. 1654A   
  130) is amended--                                                       
       (1) in subparagraphs (A) and (D), by inserting ``and Army Reserve'' 
   after ``Regular Army''; and                                             
     (2) in subparagraph (B), by striking ``and chain of command''.        

     (b) Extension of Authority.--Subsection (e) of such section is       
  amended by striking ``December 31, 2005'' and inserting ``September 30, 
  2007''.                                                                 
     (c) Extension of Time for Reports.--Subsection (g) of such section is
  amended by striking ``February 1, 2006'' and inserting ``February 1,    
  2008''.                                                                 

          SEC. 544. MILITARY RECRUITER ACCESS TO SECONDARY SCHOOL STUDENTS.       

     (a) Access to Secondary Schools.--Paragraph (1) of section 503(c) of 
  title 10, United States Code, is amended to read as follows:            
     ``(c) Access to Secondary Schools.--(1)(A) Each local educational    
  agency receiving assistance under the Elementary and Secondary Education
  Act of 1965--                                                           
       ``(i) shall provide to military recruiters the same access to       
   secondary school students as is provided generally to postsecondary     
   educational institutions or to prospective employers of those students; 
   and                                                                     
       ``(ii) shall, upon a request made by military recruiters for        
   military recruiting purposes, provide access to secondary school student
   names, addresses, and telephone listings, notwithstanding section       
   444(a)(5)(B) of the General Education Provisions Act (20 U.S.C.         
   1232g(a)(5)(B)).                                                        
     ``(B) A local educational agency may not release a student's name,   
  address, and telephone listing under subparagraph (A)(ii) without the   
  prior written consent of a parent of the student if the student, or a   
  parent of the student, has submitted a request to the local educational 
  agency that the student's information not be released for a purpose     
  covered by that subparagraph without prior written parental consent.    
  Each local education agency shall notify parents of the rights provided 
  under the preceding sentence.''.                                        
     (b) Effective Date.--The amendment made by subsections (a) shall take
  effect on July 1, 2002, immediately after the amendment to section      
  503(c) of title 10, United States Code, made, effective that date, by   
  section 563(a) of the Floyd D. Spence National Defense Authorization Act
  for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114    
  Stat. 1654A 131).                                                       
     (c) Notification.--The Secretary of Education shall provide to local 
  educational agencies notice of the provisions of subsection (c) of      
  section 503 of title 10, United States Code, as in effect upon the      
  amendments made by subsection (a). Such notice shall be provided not    
  later than 120 days after the date of the enactment of this Act and     
  shall be provided in consultation with the Secretary of Defense.        

                    SEC. 545. PERMANENT AUTHORITY FOR USE OF MILITARY RECRUITING  
          FUNDS FOR CERTAIN EXPENSES AT DEPARTMENT OF DEFENSE RECRUITING          
          FUNCTIONS.                                                              
     (a) Repeal of Termination Provision.--Section 520c of title 10,      
  United States Code, is amended by striking subsection (c).              
     (b) Technical Amendments.--Subsection (a) of such section is         
  amended--                                                               
       (1) in paragraph (4), by striking ``recruiting events'' and         
   inserting ``recruiting functions''; and                                 
       (2) in paragraph (5), by striking ``recruiting efforts'' the first  
   place it appears and inserting ``recruiting functions''.                

                    SEC. 546. REPORT ON HEALTH AND DISABILITY BENEFITS FOR        
          PRE-ACCESSION TRAINING AND EDUCATION PROGRAMS.                          
     (a) Study.--The Secretary of Defense shall conduct a review of the   
  health and disability benefit programs available to recruits and officer
  candidates engaged in training, education, or other types of programs   
  while not yet on active duty and to cadets and midshipmen attending the 
  service academies. The review shall be conducted with the participation 
  of the Secretaries of the military departments.                         
     (b) Report.--Not later than March 1, 2002, the Secretary shall submit
  to the Committee on Armed Services of the Senate and the Committee on   
  Armed Services of the House of Representatives a report on the findings 
  of the review. The report shall include the following with respect to   
  persons described in subsection (a):                                    
       (1) A statement of the process and detailed procedures followed by  
   each of the Armed Forces under the jurisdiction of the Secretary of a   
   military department to provide health care and disability benefits to   
   all such persons injured in training, education, or other types of      
   programs conducted by the Secretary of a military department.           
       (2) Information on the total number of cases of such persons        
   requiring health care and disability benefits and the total number of   
   cases and average value of health care and disability benefits provided 
   under the authority for each source of benefits available to those      
   persons.                                                                
       (3) A discussion of the issues regarding health and disability      
   benefits for such persons that are encountered by the Secretary during  
   the review, to include discussions with individuals who have received   
   those benefits.                                                         
       (4) A statement of the processes and detailed procedures followed by
   each of the Armed Forces under the jurisdiction of the Secretary of a   
   military department to provide recruits and officer candidates with     
   succinct information on the eligibility requirements (including         
   information on when they become eligible) for health care benefits under
   the Defense health care program, and the nature and availability of the 
   benefits under the program.                                             
       (5) A discussion of the necessity for legislative changes and       
   specific legislative proposals needed to improve the benefits provided  
   those persons.                                                          
       (6) An analysis of health and disability benefits under laws        
   administered by the Department of Veterans Affairs and the Department of
   Labor for which those persons become eligible upon being injured in     
   training or education and a discussion of how those benefits compare to 
   the benefits those persons would received if retired for physical       
   disability by the Department of Defense.                                
           Subtitle F--Decorations, Awards, and Posthumous Commissions             

                    SEC. 551. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO HUMBERT
          R. VERSACE, JON E. SWANSON, AND BEN L. SALOMON FOR VALOR.               
     (a) Waiver of Time Limitations.--Notwithstanding the time limitations
  specified in section 3744 of title 10, United States Code, or any other 
  time limitation with respect to the awarding of certain medals to       
  persons who served in the military service, the President may award the 
  Medal of Honor under section 3741 of that title to any of the persons   
  named in subsections (b), (c), and (d) for the acts of valor referred to
  in those respective subsections.                                        
     (b) Humbert R. Versace.--Subsection (a) applies with respect to      
  Humbert R. Versace, for conspicuous acts of gallantry and intrepidity at
  the risk of his life and beyond the call of duty between October 29,    
  1963, and September 26, 1965, while interned as a prisoner of war by the
  Vietnamese Communist National Liberation Front (Viet Cong) in the       
  Republic of Vietnam.                                                    
     (c) Jon E. Swanson.--Subsection (a) applies with respect to Jon E.   
  Swanson, for conspicuous acts of gallantry and intrepidity at the risk  
  of his life and beyond the call of duty on February 26, 1971, while     
  piloting a Scout helicopter on a close-support reconnaissance mission in
  support of the Army of the Republic of Vietnam Task Force 333 in the    
  Kingdom of Cambodia.                                                    
     (d) Ben L. Salomon.--Subsection (a) applies with respect to Ben L.   
  Salomon, for conspicuous acts of gallantry and intrepidity at the risk  
  of his life and beyond the call of duty on July 7, 1944, while defending
  the soldiers under his care as the Surgeon, 2d Battalion, 105th Infantry
  Regiment, 27th Infantry Division against an overwhelming enemy force at 
  Saipan, Marianas Islands.                                               

                    SEC. 552. REVIEW REGARDING AWARD OF MEDAL OF HONOR TO CERTAIN 
          JEWISH AMERICAN AND HISPANIC AMERICAN WAR VETERANS.                     
     (a) Review Required.--The Secretary of each military department shall
  review the service records of each Jewish American war veteran or       
  Hispanic American war veteran described in subsection (b) to determine  
  whether that veteran should be awarded the Medal of Honor.              
     (b) Covered Jewish American War Veterans and Hispanic American War   
  Veterans.--The Jewish American war veterans and Hispanic American war   
  veterans whose service records are to be reviewed under subsection (a)  
  are the following:                                                      
       (1) Any Jewish American war veteran or Hispanic American war veteran
   who was awarded the Distinguished Service Cross, the Navy Cross, or the 
   Air Force Cross before the date of the enactment of this Act.           
       (2) Any other Jewish American war veteran or Hispanic American war  
   veteran whose name is submitted to the Secretary concerned for such     
   purpose before the end of the one-year period beginning on the date of  
   the enactment of this Act.                                              
     (c) Consultations.--In carrying out the review under subsection (a), 
  the Secretary of each military department shall consult with the Jewish 
  War Veterans of the United States of America and with such other        
  veterans service organizations as the Secretary considers appropriate.  
     (d) Recommendation Based on Review.--If the Secretary concerned      
  determines, based upon the review under subsection (a) of the service   
  records of any Jewish American war veteran or Hispanic American war     
  veteran, that the award of the Medal of Honor to that veteran is        
  warranted, the Secretary shall submit to the President a recommendation 
  that the President award the Medal of Honor to that veteran.            
     (e) Authority To Award Medal of Honor.--A Medal of Honor may be      
  awarded to a Jewish American war veteran or Hispanic American war       
  veteran in accordance with a recommendation of the Secretary concerned  
  under subsection (d).                                                   
     (f) Waiver of Time Limitations.--An award of the Medal of Honor may  
  be made under subsection (e) without regard to--                        
       (1) section 3744, 6248, or 8744 of title 10, United States Code, as 
   applicable; and                                                         
     (2) any regulation or other administrative restriction on--           

     (A) the time for awarding the Medal of Honor; or                      

       (B) the awarding of the Medal of Honor for service for which a      
   Distinguished Service Cross, Navy Cross, or Air Force Cross has been    
   awarded.                                                                
     (g) Definition.--For purposes of this section, the term ``Jewish     
  American war veteran'' means any person who served in the Armed Forces  
  during World War II or a later period of war and who identified himself 
  or herself as Jewish on his or her military personnel records.          

                    SEC. 553. AUTHORITY TO ISSUE DUPLICATE MEDALS OF HONOR AND TO 
          REPLACE STOLEN MILITARY DECORATIONS.                                    
     (a) Army.--(1)(A) Chapter 357 of title 10, United States Code, is    
  amended by adding at the end the following new section:                 
          ``3754. Medal of honor: duplicate medal                                 

     ``A person awarded a medal of honor shall, upon written application  
  of that person, be issued, without charge, one duplicate medal of honor 
  with ribbons and appurtenances. Such duplicate medal of honor shall be  
  marked, in such manner as the Secretary of the Army may determine, as a 
  duplicate or for display purposes only.''.                              
     (B) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


      ``3754. Medal of honor: duplicate medal.''.                             



     (2) Section 3747 of such title is amended by striking ``lost'' and   
  inserting ``stolen, lost,''.                                            
     (b) Navy and Marine Corps.--(1)(A) Chapter 567 of title 10, United   
  States Code, is amended by adding at the end the following new section: 
          ``6256. Medal of honor: duplicate medal                                 

     ``A person awarded a medal of honor shall, upon written application  
  of that person, be issued, without charge, one duplicate medal of honor 
  with ribbons and appurtenances. Such duplicate medal of honor shall be  
  marked, in such manner as the Secretary of the Navy may determine, as a 
  duplicate or for display purposes only.''.                              
     (B) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


      ``6256. Medal of honor: duplicate medal.''.                             



     (2) Section 6253 of such title is amended by striking ``lost'' and   
  inserting ``stolen, lost,''.                                            
     (c) Air Force.--(1)(A) Chapter 857 of title 10, United States Code,  
  is amended by adding at the end the following new section:              
          ``8754. Medal of honor: duplicate medal                                 

     ``A person awarded a medal of honor shall, upon written application  
  of that person, be issued, without charge, one duplicate medal of honor 
  with ribbons and appurtenances. Such duplicate medal of honor shall be  
  marked, in such manner as the Secretary of the Air Force may determine, 
  as a duplicate or for display purposes only.''.                         
     (B) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


      ``8754. Medal of honor: duplicate medal.''.                             



     (2) Section 8747 of such title is amended by striking ``lost'' and   
  inserting ``stolen, lost,''.                                            
     (d) Coast Guard.--(1)(A) Chapter 13 of title 14, United States Code, 
  is amended by inserting after section 503 the following new section:    
          ``504. Medal of honor: duplicate medal                                  

     ``A person awarded a medal of honor shall, upon written application  
  of that person, be issued, without charge, one duplicate medal of honor 
  with ribbons and appurtenances. Such duplicate medal of honor shall be  
  marked, in such manner as the Secretary may determine, as a duplicate or
  for display purposes only.''.                                           
     (B) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 503 the following new   
  item:                                                                   


      ``504. Medal of honor: duplicate medal.''.                              



     (2) Section 501 of such title is amended by inserting ``stolen,''    
  before ``lost,''.                                                       
     (e) Definition of Medal of Honor for Purposes of Federal             
  Unauthorized-Use Crime.--Section 704(b)(2)(B) of title 18, United States
  Code, is amended to read as follows:                                    
       ``(B) As used in this subsection, `Congressional Medal of Honor'    
   means--                                                                 
       ``(i) a medal of honor awarded under section 3741, 6241, or 8741 of 
   title 10 or section 491 of title 14;                                    
       ``(ii) a duplicate medal of honor issued under section 3754, 6256,  
   or 8754 of title 10 or section 504 of title 14; or                      
       ``(iii) a replacement of a medal of honor provided under section    
   3747, 6253, or 8747 of title 10 or section 501 of title 14.''.          

          SEC. 554. RETROACTIVE MEDAL OF HONOR SPECIAL PENSION.                   

     (a) Entitlement.--Notwithstanding any other provision of law, Robert 
  R. Ingram of Jacksonville, Florida, who was awarded the Medal of Honor  
  pursuant to Public Law 105 103 (111 Stat. 2218), shall be entitled to   
  the special pension provided for under section 1562 of title 38, United 
  States Code (and antecedent provisions of law), for months that begin   
  after March 1966.                                                       
     (b) Amount.--The amount of special pension payable under subsection  
  (a) for a month beginning before the date of the enactment of this Act  
  shall be the amount of special pension provided for by law for that     
  month for persons entered and recorded in the Army, Navy, Air Force, and
  Coast Guard Medal of Honor Roll (or antecedent Medal of Honor Roll      
  required by law).                                                       

                    SEC. 555. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN     
          DECORATIONS TO CERTAIN PERSONS.                                         
     (a) Waiver.--Any limitation established by law or policy for the time
  within which a recommendation for the award of a military decoration or 
  award must be submitted shall not apply to awards of decorations        
  described in this section, the award of each such decoration having been
  determined by the Secretary concerned to be warranted in accordance with
  section 1130 of title 10, United States Code.                           
     (b) Silver Star.--Subsection (a) applies to the award of the Silver  
  Star to Wayne T. Alderson, of Glassport, Pennsylvania, for gallantry in 
  action from March 15 to March 18, 1945, while serving as a member of the
  Army.                                                                   
     (c) Distinguished Flying Cross.--Subsection (a) applies to the award 
  of the Distinguished Flying Cross for service during World War II       
  (including multiple awards to the same individual) in the case of each  
  individual concerning whom the Secretary of the Navy (or an officer of  
  the Navy acting on behalf of the Secretary) submitted to the Committee  
  on Armed Services of the House of Representatives and the Committee on  
  Armed Services of the Senate, during the period beginning on October 30,
  2000, and ending on the day before the date of the enactment of this    
  Act, a notice as provided in section 1130(b) of title 10, United States 
  Code, that the award of the Distinguished Flying Cross to that          
  individual is warranted and that a waiver of time restrictions          
  prescribed by law for recommendation for such award is recommended.     

          SEC. 556. SENSE OF CONGRESS ON ISSUANCE OF CERTAIN MEDALS.              

     It is the sense of Congress that the Secretary of Defense should     
  consider authorizing--                                                  
       (1) the issuance of a campaign medal, to be known as the Korea      
   Defense Service Medal, to each person who while a member of the Armed   
   Forces served in the Republic of Korea, or the waters adjacent thereto, 
   during the period beginning on July 28, 1954, and ending on such date   
   thereafter as the Secretary considers appropriate;                      
       (2) the issuance of a campaign medal, to be known as the Cold War   
   Service Medal, to each person who while a member of the Armed Forces    
   served satisfactorily on active duty during the Cold War; and           
       (3) the award of the Vietnam Service Medal to any member or former  
   member of the Armed Forces who was awarded the Armed Forces             
   Expeditionary Medal for participation in military operations designated 
   as Operation Frequent Wind arising from the evacuation of Vietnam on    
   April 29 and 30, 1975.                                                  

                    SEC. 557. SENSE OF CONGRESS ON DEVELOPMENT OF A MORE          
          COMPREHENSIVE, UNIFORM POLICY FOR THE AWARD OF DECORATIONS TO MILITARY  
          AND CIVILIAN PERSONNEL OF THE DEPARTMENT OF DEFENSE.                    
    (a)  Findings.--Congress makes the following findings:                

       (1) The role and importance of civilian nationals of the United     
   States as Federal employees and contractors in support of operations of 
   the Armed Forces worldwide has continued to expand.                     
       (2) The expanded role performed by those civilians, both in the     
   United States and overseas, has greatly increased the risk to those     
   civilians of injury and death from hostile actions taken against United 
   States Armed Forces, as demonstrated by the terrorist attack on the     
   Pentagon on September 11, 2001, in which scores of Department of Defense
   civilian and contractor personnel were killed or wounded.               
       (3) On September 20, 2001, the Deputy Secretary of Defense approved 
   the creation of a new award, a medal for the defense of freedom, to be  
   awarded to civilians employed by the Department of Defense who are      
   killed or wounded as a result of hostile action and at the same time    
   directed that a comprehensive review be conducted to develop a more     
   uniform approach to the award of decorations to military and civilian   
   personnel of the Department of Defense.                                 
     (b) Commendation of Creation of New Award.--Congress commends the    
  decision announced by the Deputy Secretary of Defense on September 20,  
  2001, to approve the creation of a new award, a medal for the defense of
  freedom, to be awarded to civilians employed by the Department of       
  Defense who are killed or wounded as a result of hostile action.        
     (c) Sense of Congress.--It is the sense of Congress that the         
  Secretary of Defense should act expeditiously to develop a more         
  comprehensive, uniform policy for the award of decorations to military  
  and civilian personnel of the Department of Defense.                    

                    SEC. 558. POSTHUMOUS ARMY COMMISSION IN THE GRADE OF CAPTAIN  
          IN THE CHAPLAINS CORPS TO ELLA E. GIBSON FOR SERVICE AS CHAPLAIN OF THE 
          FIRST WISCONSIN HEAVY ARTILLERY REGIMENT DURING THE CIVIL WAR.          
     The President is authorized and requested to posthumously appoint    
  Ella E. Gibson to the grade of captain in the Chaplains Corps of the    
  Army, the commission to issue as of the date of her appointment as      
  chaplain to the First Wisconsin Heavy Artillery regiment during the     
  Civil War and to be considered to have been in effect during the time   
  during which she faithfully performed the services of a chaplain to that
  regiment and for which Congress by law (Private Resolution 31 of the    
  40th Congress, approved March 3, 1869) previously provided for her to be
  paid the full pay and emoluments of a chaplain in the United States Army
  as if she had been regularly commissioned and mustered into service.    

           Subtitle G--Funeral Honors Duty                                         


          SEC. 561. PARTICIPATION OF MILITARY RETIREES IN FUNERAL HONORS DETAILS. 

     (a) Authority.--Subsection (b)(2) of section 1491 of title 10, United
  States Code, is amended--                                               
       (1) in the first sentence, by inserting ``(other than members in a  
   retired status)'' after ``members of the armed forces''; and            
       (2) in the second sentence, by inserting ``(including members in a  
   retired status),'' after ``members of the armed forces''.               
     (b) Funeral Honors Duty Allowance.--Section 435(a) of title 37,      
  United States Code, is amended--                                        
     (1)byinserting``(1)''after``(a) Allowance Authorized.--''; and        

     (2) by adding at the end the following new paragraph:                 

     ``(2) The Secretary concerned may also authorize payment of that     
  allowance to a member of the armed forces in a retired status for any   
  day on which the member serves in a funeral honors detail under section 
  1491 of title 10, if the time required for service in such detail       
  (including time for preparation) is not less than two hours. The amount 
  of an allowance paid to a member under this paragraph shall be in       
  addition to any other compensation to which the member may be entitled  
  under this title or title 10 or 38.''.                                  

                    SEC. 562. FUNERAL HONORS DUTY PERFORMED BY RESERVE AND GUARD  
          MEMBERS TO BE TREATED AS INACTIVE-DUTY TRAINING FOR CERTAIN PURPOSES.   
     (a) Reserve Members.--Section 12503(a) of title 10, United States    
  Code, is amended by adding at the end the following new sentence:       
  ``Performance of funeral honors duty by a Reserve not on active duty    
  shall be treated as inactive-duty training (including with respect to   
  travel to and from such duty) for purposes of any provision of law other
  than sections 206 and 435 of title 37.''.                               
     (b) National Guard Members.--Section 115(a) of title 32, United      
  States Code, is amended by adding at the end the following new sentence:
  ``Performance of funeral honors duty by such a member not on active duty
  or full-time National Guard duty shall be treated as inactive-duty      
  training (including with respect to travel to and from such duty) for   
  purposes of any provision of law other than sections 206 and 435 of     
  title 37.''.                                                            
     (c) Effective Date.--The amendments made by this section shall apply 
  to funeral honors duty performed on or after October 30, 2000.          

                    SEC. 563. USE OF MILITARY LEAVE FOR FUNERAL HONORS DUTY BY    
          RESERVE MEMBERS AND NATIONAL GUARDSMEN.                                 
     Section 6323(a)(1) of title 5, United States Code, is amended by     
  inserting ``funeral honors duty (as described in section 12503 of title 
  10 and section 115 of title 32),'' after ``(as defined in section 101 of
  title 37),''.                                                           

                    SEC. 564. AUTHORITY TO PROVIDE APPROPRIATE ARTICLES OF        
          CLOTHING AS A CIVILIAN UNIFORM FOR CIVILIANS PARTICIPATING IN FUNERAL   
          HONOR DETAILS.                                                          
     Section 1491(d) of title 10, United States Code, is amended by adding
  at the end the following new paragraph:                                 
       ``(3) Articles of clothing for members of a veterans organization or
   other organization referred to in subsection (b)(2) that, as determined 
   by the Secretary concerned, are appropriate as a civilian uniform for   
   persons participating in a funeral honors detail.''.                    

           Subtitle H--Military Spouses and Family Members                         


                    SEC. 571. IMPROVED FINANCIAL AND OTHER ASSISTANCE TO MILITARY 
          SPOUSES FOR JOB TRAINING AND EDUCATION.                                 
     (a) Examination of Existing Employment Assistance Programs.--(1) The 
  Secretary of Defense shall examine existing Department of Defense and   
  other Federal, State, and nongovernmental programs with the objective of
  improving retention of military personnel by increasing the             
  employability of military spouses and assisting those spouses in gaining
  access to financial and other assistance for job training and education.
     (2) In conducting the examination, the Secretary shall give priority 
  to facilitating and increasing access of military spouses to existing   
  Department of Defense, Federal, State, and nongovernmental sources for  
  the types of financial assistance set forth in paragraph (3), but shall 
  also specifically assess whether the Department of Defense should begin 
  a program for direct financial assistance to military spouses for some  
  or all of those types of assistance and whether such a program of direct
  financial assistance would enhance retention.                           
     (3) In conducting the examination pursuant to paragraph (1), the     
  Secretary should focus on financial assistance for military spouses for 
  one or more of the following purposes:                                  
     (A) Career-related education.                                         

     (B) Certification and license fees for employment-related purposes.   

     (C) Apprenticeships and internships.                                  

     (D) Technical training.                                               

     (E) Training to improve job skills.                                   

     (F) Career counseling.                                                

     (G) Skills assessment.                                                

     (H) Job-search skills.                                                

     (I) Job-related transportation.                                       

     (J) Child care.                                                       

       (K) Any additional employment-related purpose specified by the      
   Secretary for the purposes of the examination under paragraph (1).      
     (4) Not later than March 30, 2002, the Secretary of Defense shall    
  submit to the Committee on Armed Services of the Senate and the         
  Committee on Armed Services of the House of Representatives a report on 
  the results of the examination under paragraph (1).                     
     (b) Review of Department of Defense Policies.--(1) The Secretary of  
  Defense shall review Department of Defense policies that affect         
  employment and education opportunities for military spouses in the      
  Department of Defense in order to further expand those opportunities.   
  The review shall include the consideration of providing, to the extent  
  authorized by law, separate spouse preferences for employment by        
  appropriated and nonappropriated fund operations.                       
     (2) Not later than March 30, 2002, the Secretary of Defense shall    
  submit to the Committee on Armed Services of the Senate and the         
  Committee on Armed Services of the House of Representatives a report on 
  the results of the review under paragraph (1).                          
     (c) Spouse Employment Assistance.--Section 1784 of title 10, United  
  States Code, is amended by adding at the end the following new          
  subsections:                                                            
     ``(d) Space-Available Use of Facilities for Spouse Training          
  Purposes.--Under regulations prescribed by the Secretary of Defense, the
  Secretary of a military department may make available to a              
  non-Department of Defense entity space in non-excess facilities         
  controlled by that Secretary for the purpose of the non-Department of   
  Defense entity providing employment-related training for military       
  spouses.                                                                
     ``(e) Employment by Other Federal Agencies.--The Secretary of Defense
  shall work with the Director of the Office of Personnel Management and  
  the heads of other Federal departments and agencies to expand and       
  facilitate the use of existing Federal programs and resources in support
  of military spouse employment.                                          
    ``(f)  Private-Sector Employment.--The Secretary of Defense--         

       ``(1) shall seek to develop partnerships with firms in the private  
   sector to enhance employment opportunities for spouses of members of the
   armed forces and to provide for improved job portability for such       
   spouses, especially in the case of the spouse of a member of the armed  
   forces accompanying the member to a new geographical area because of a  
   change of permanent duty station of the member; and                     
       ``(2) shall work with the United States Chamber of Commerce and     
   other appropriate private-sector entities to facilitate the formation of
   such partnerships.                                                      
     ``(g) Employment With DOD Contractors.--The Secretary of Defense     
  shall examine and seek ways for incorporating hiring preferences for    
  qualified spouses of members of the armed forces into contracts between 
  the Department of Defense and private-sector entities.''.               

                    SEC. 572. PERSONS AUTHORIZED TO BE INCLUDED IN SURVEYS OF     
          MILITARY FAMILIES REGARDING FEDERAL PROGRAMS.                           
     (a) Extension of Survey Authority.--Subsection (a) of section 1782 of
  title 10, United States Code, is amended to read as follows:            
     ``(a) Authority.--The Secretary of Defense, in order to determine the
  effectiveness of Federal programs relating to military families and the 
  need for new programs, may conduct surveys of--                         
       ``(1) members of the armed forces who are on active duty, in an     
   active status, or retired;                                              
     ``(2) family members of such members; and                             

       ``(3) survivors of deceased retired members and of members who died 
   while on active duty.''.                                                
     (b) Federal Recordkeeping Requirements.--Subsection (c) of such      
  section is amended to read as follows:                                  
     ``(c) Federal Recordkeeping Requirements.--With respect to a survey  
  authorized under subsection (a) that includes a person referred to in   
  that subsection who is not an employee of the United States or is not   
  otherwise considered an employee of the United States for the purposes  
  of section 3502(3)(A)(i) of title 44, the person shall be considered as 
  being an employee of the United States for the purposes of that         
  section.''.                                                             

                    SEC. 573. CLARIFICATION OF TREATMENT OF CLASSIFIED INFORMATION
          CONCERNING PERSONS IN A MISSING STATUS.                                 
    Section 1506(b)(2) of title 10, United States Code, is amended--      

     (1) by inserting ``(A)'' after ``(2)'';                               

       (2) by striking the period at the end and inserting ``of all missing
   persons from the conflict or period of war to which the classified      
   information pertains.''; and                                            
     (3) by adding at the end the following new subparagraph:              

     ``(B) For purposes of subparagraph (A), information shall be         
  considered to be made reasonably accessible if placed in a separate and 
  distinct file that is available for review by persons specified in      
  subparagraph (A) upon the request of any such person either to review   
  the separate file or to review the personnel file of the missing person 
  concerned.''.                                                           

                    SEC. 574. TRANSPORTATION TO ANNUAL MEETING OF NEXT-OF-KIN OF  
          PERSONS UNACCOUNTED FOR FROM CONFLICTS AFTER WORLD WAR II.              
     (a) Authority for Department of Defense To Provide                   
  Transportation.--Chapter 157 of title 10, United States Code, is amended
  by adding at the end the following new section:                         
                    ``2647. Next-of-kin of persons unaccounted for from conflicts 
          after World War II: transportation to annual meetings                   
     ``The Secretary of Defense may provide transportation for the        
  next-of-kin of persons who are unaccounted for from the Korean conflict,
  the Cold War, Vietnam War era, or the Persian Gulf War to and from an   
  annual meeting in the United States. Such transportation shall be       
  provided under such regulations as the Secretary of Defense may         
  prescribe.''.                                                           
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    


            ``2647. Next-of-kin of persons unaccounted for from conflicts     
      after World War II: transportation to annual meetings.''.               

                    SEC. 575. AMENDMENTS TO CHARTER OF DEFENSE TASK FORCE ON      
          DOMESTIC VIOLENCE.                                                      
     (a) Members Appointed From Private Sector.--Subsection (h)(1) of     
  section 591 of the National Defense Authorization Act for Fiscal Year   
  2000 (Public Law 106 65; 113 Stat. 639; 10 U.S.C. 1562 note) is         
  amended--                                                               
       (1) by inserting ``who is a member of the Armed Forces or civilian  
   officer or employee of the United States'' after ``Each member of the   
   task force'';                                                           
       (2) by striking ``, but shall'' and all that follows and inserting a
   period; and                                                             
       (3) by adding at the end the following new sentence: ``Other members
   of the task force shall be appointed in accordance with, and subject to,
   section 3161 of title 5, United States Code.''.                         
     (b) Extension of Termination Date.--Subsection (j) of such section is
  amended by striking ``three years after the date of the enactment of    
  this Act'' and inserting ``on April 24, 2003''.                         

           Subtitle I--Military Justice and Legal Assistance Matters               


                    SEC. 581. BLOOD ALCOHOL CONTENT LIMIT FOR THE OFFENSE UNDER   
          THE UNIFORM CODE OF MILITARY JUSTICE OF DRUNKEN OPERATION OF A VEHICLE, 
          AIRCRAFT, OR VESSEL.                                                    
     Section 911 of title 10, United States Code (article 111 of the      
  Uniform Code of Military Justice), is amended--                         
     (1) by inserting ``(a)'' before `` Any person'';                      

       (2) by striking ``0.10 grams'' the first place it appears and all   
   that follows through ``chemical analysis'' and inserting ``in excess of 
   the applicable limit under subsection (b)''; and                        
     (3) by adding at the end the following:                               

     ``(b)(1) For purposes of subsection (a), the applicable limit on the 
  alcohol concentration in a person's blood or breath is as follows:      
       ``(A) In the case of the operation or control of a vehicle,         
   aircraft, or vessel in the United States, such limit is the blood       
   alcohol content limit under the law of the State in which the conduct   
   occurred, except as may be provided under paragraph (2) for conduct on a
   military installation that is in more than one State and subject to the 
   maximum blood alcohol content limit specified in paragraph (3).         
       ``(B) In the case of the operation or control of a vehicle,         
   aircraft, or vessel outside the United States, the applicable blood     
   alcohol content limit is the maximum blood alcohol content limit        
   specified in paragraph (3) or such lower limit as the Secretary of      
   Defense may by regulation prescribe.                                    
     ``(2) In the case of a military installation that is in more than one
  State, if those States have different blood alcohol content limits under
  their respective State laws, the Secretary may select one such blood    
  alcohol content limit to apply uniformly on that installation.          
     ``(3) For purposes of paragraph (1), the maximum blood alcohol       
  content limit with respect to alcohol concentration in a person's blood 
  is 0.10 grams of alcohol per 100 milliliters of blood and with respect  
  to alcohol concentration in a person's breath is 0.10 grams of alcohol  
  per 210 liters of breath, as shown by chemical analysis.                
    ``(4) In this subsection:                                             

       ``(A) The term `blood alcohol content limit' means the maximum      
   permissible alcohol concentration in a person's blood or breath for     
   purposes of operation or control of a vehicle, aircraft, or vessel.     
       ``(B) The term `United States' includes the District of Columbia,   
   the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American 
   Samoa and the term `State' includes each of those jurisdictions.''.     

                    SEC. 582. REQUIREMENT THAT COURTS-MARTIAL CONSIST OF NOT LESS 
          THAN 12 MEMBERS IN CAPITAL CASES.                                       
     (a) Classification of General Court-Martial in Capital               
  Cases.--Section 816(1)(A) of title 10, United States Code (article      
  16(1)(A) of the Uniform Code of Military Justice) is amended by         
  inserting after ``five members'' the following: ``or, in a case in which
  the accused may be sentenced to a penalty of death, the number of       
  members determined under section 825a of this title (article 25a)''.    
     (b) Number of Members Required.--(1) Chapter 47 of title 10, United  
  States Code (the Uniform Code of Military Justice), is amended by       
  inserting after section 825 (article 25) the following new section:     
          ``825a. Art. 25a. Number of members in capital cases                    

     ``In a case in which the accused may be sentenced to a penalty of    
  death, the number of members shall be not less than 12, unless 12       
  members are not reasonably available because of physical conditions or  
  military exigencies, in which case the convening authority shall specify
  a lesser number of members not less than five, and the court may be     
  assembled and the trial held with not less than the number of members so
  specified. In such a case, the convening authority shall make a detailed
  written statement, to be appended to the record, stating why a greater  
  number of members were not reasonably available.''.                     
     (2) The table of sections at the beginning of subchapter V of such   
  chapter is amended by inserting after the item relating to section 825  
  (article 25) the following new item:                                    


      ``825a. 25a. Number of members in capital cases.''.                     



     (c) Absent and Additional Members.--Section 829(b) of such title     
  (article 29 of the Uniform Code of Military Justice) is amended--       
     (1) by inserting ``(1)'' after ``(b)'';                               

       (2) by striking ``five members'' both places it appears and         
   inserting ``the applicable minimum number of members''; and             
     (3) by adding at the end the following new paragraph:                 

     ``(2) In this section, the term `applicable minimum number of        
  members' means five members or, in a case in which the death penalty may
  be adjudged, the number of members determined under section 825a of this
  title (article 25a).''.                                                 
     (d) Effective Date.--The amendments made by this section shall apply 
  with respect to offenses committed after December 31, 2002.             

                    SEC. 583. ACCEPTANCE OF VOLUNTARY LEGAL ASSISTANCE FOR THE    
          CIVIL AFFAIRS OF MEMBERS AND FORMER MEMBERS OF THE UNIFORMED SERVICES   
          AND THEIR DEPENDENTS.                                                   
     (a) Authority.--Subsection (a) of section 1588 of title 10, United   
  States Code, is amended by adding at the end the following new          
  paragraph:                                                              
       ``(5) Legal services voluntarily provided as legal assistance under 
   section 1044 of this title.''.                                          
     (b) Defense of Legal Malpractice.--Subsection (d)(1) of that section 
  is amended by adding at the end the following new subparagraph:         
       ``(E) Section 1054 of this title (relating to legal malpractice),   
   for a person voluntarily providing legal services accepted under        
   subsection (a)(5), as if the person were providing the services as an   
   attorney of a legal staff within the Department of Defense.''.          

           Subtitle J--Other Matters                                               


                    SEC. 591. CONGRESSIONAL REVIEW PERIOD FOR CHANGE IN GROUND    
          COMBAT EXCLUSION POLICY.                                                
     Section 542(b) of the National Defense Authorization Act for Fiscal  
  Year 1994 (Public Law 103 160; 10 U.S.C. 113 note) is amended--         
     (1) in paragraph (1)--                                                

     (A) by striking ``not less than 90 days''; and                        

       (B) by adding at the end the following new sentence: ``Such a change
   may then be implemented only after the end of a period of 30 days of    
   continuous session of Congress (excluding any day on which either House 
   of Congress is not in session) following the date on which the report is
   received.''; and                                                        
     (2) by adding at the end the following new paragraph:                 

     ``(5) For purposes of this subsection, the continuity of a session of
  Congress is broken only by an adjournment of the Congress sine die.''.  

          SEC. 592. PER DIEM ALLOWANCE FOR LENGTHY OR NUMEROUS DEPLOYMENTS.       

     (a) Funding Source for Allowance.--Section 436(a) of title 37, United
  States Code, is amended by adding at the end the following new sentence:
  ``The Secretary shall pay the allowance from appropriations available   
  for operation and maintenance for the armed force in which the member   
  serves.''.                                                              
     (b) Expanded Report Regarding Management of Individual Member        
  Deployments.--Section 574(d) of the Floyd D. Spence National Defense    
  Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
  Law 106 398; 114 Stat. 1654A 138) is amended in the second sentence by  
  striking paragraphs (1) and (2) and inserting the following new         
  paragraphs:                                                             
       ``(1) a discussion of the experience in tracking and recording the  
   deployments of members of the Armed Forces and the payment of the per   
   diem allowance for lengthy or numerous deployments in accordance with   
   section 436 of title 37, United States Code;                            
       ``(2) specific comments regarding the effect of section 991 of title
   10, United States Code, and section 436 of title 37, United States Code,
   on the readiness of the Navy and Marine Corps given the deployment      
   intensive mission of these services; and                                
       ``(3) any recommendations for revision of section 991 of title 10,  
   United States Code, or section 436 of title 37, United States Code, that
   the Secretary considers appropriate.''.                                 

          SEC. 593. CLARIFICATION OF DISABILITY SEVERANCE PAY COMPUTATION.        

     (a) Clarification.--Section 1212(a)(2) of title 10, United States    
  Code, is amended by striking ``for promotion'' in subparagraph (C) and  
  the first place it appears in subparagraph (D).                         
     (b) Effective Date.--The amendments made by subsection (a) shall     
  apply with respect to members separated under section 1203 or 1206 of   
  title 10, United States Code, on or after date of the enactment of this 
  Act.                                                                    

                    SEC. 594. TRANSPORTATION OR STORAGE OF PRIVATELY OWNED        
          VEHICLES ON CHANGE OF PERMANENT STATION.                                
     (a) Advance Payment of Storage Costs.--Subsection (b) of section 2634
  of title 10, United States Code, is amended by adding at the end the    
  following new paragraph:                                                
     ``(4) Storage costs payable under this subsection may be paid in     
  advance.''.                                                             
     (b) Shipment on Permanent Change of Station Within CONUS.--Subsection
  (h)(1) of such section is amended by striking ``includes'' in the second
  sentence and all that follows and inserting ``includes the following:   
     ``(A) An authorized change in home port of a vessel.                  

       ``(B) A transfer or assignment between two permanent stations in the
   continental United States when--                                        
       ``(i) the member cannot, because of injury or the conditions of the 
   order, drive the motor vehicle between the permanent duty stations; or  
       ``(ii) the Secretary concerned determines that it is advantageous   
   and cost-effective to the United States for one motor vehicle of the    
   member to be transported between the permanent duty stations.''.        
     (c) Effective Date.--The amendments made by this section apply to    
  orders to make a change of permanent station that are issued on or after
  the date of the enactment of this Act.                                  

                    SEC. 595. REPEAL OF REQUIREMENT FOR FINAL COMPTROLLER GENERAL 
          REPORT RELATING TO ARMY END STRENGTH ALLOCATIONS.                       
     Section 552 of the National Defense Authorization Act for Fiscal Year
  1996 (Public Law 104 106; 110 Stat. 319; 10 U.S.C. 115 note) is         
  repealed.                                                               

                    SEC. 596. CONTINUED DEPARTMENT OF DEFENSE ADMINISTRATION OF   
          NATIONAL GUARD CHALLENGE PROGRAM AND DEPARTMENT OF DEFENSE STARBASE     
          PROGRAM.                                                                
     (a) National Guard Challenge Program.--Section 509(b) of title 32,   
  United States Code, is amended--                                        
       (1) in paragraph (2)(A), by striking ``in a fiscal year'' and       
   inserting ``in fiscal year 2001 or 2002''; and                          
     (2) by adding at the end the following new paragraph:                 

     ``(4) The Secretary of Defense shall remain the executive agent to   
  carry out the National Guard Challenge Program regardless of the source 
  of funds for the program or any transfer of jurisdiction over the       
  program within the executive branch. As provided in subsection (a), the 
  Secretary may use the National Guard to conduct the program.''.         
     (b) STARBASE Program.--Section 2193b(f) of title 10, United States   
  Code, is amended--                                                      
     (1) by inserting ``(1)'' before ``The Secretary''; and                

     (2) by adding at the end the following new paragraph:                 

     ``(2) The Secretary of Defense shall remain the executive agent to   
  carry out the program regardless of the source of funds for the program 
  or any transfer of jurisdiction over the program within the executive   
  branch.''.                                                              
     (c) Repeal of Contingent Funding for JROTC.--(1) Section 2033 of     
  title 10, United States Code, is repealed.                              
     (2) The table of sections at the beginning of chapter 102 of such    
  title is amended by striking the item relating to section 2033.         
     (3) The amendments made by this subsection shall take effect on      
  October 1, 2002.                                                        

                    SEC. 597. REPORT ON DEFENSE SCIENCE BOARD RECOMMENDATION ON   
          ORIGINAL APPOINTMENTS IN REGULAR GRADES FOR ACADEMY GRADUATES AND       
          CERTAIN OTHER NEW OFFICERS.                                             
     The Secretary of Defense shall submit to the Committee on Armed      
  Services of the Senate and the Committee on Armed Services of the House 
  of Representatives a report on the legislative and policy changes       
  required to implement the recommendation of the Defense Science Board   
  (made in its report entitled ``Final Report on Human Resources          
  Strategy'' and dated February 28, 2000) that all officers be given      
  initial regular commissions. The Secretary shall include in that report 
  a description of the measures necessary to transition the current       
  active-duty officer corps to an all-regular status, if the Board's      
  recommendation were adopted, and shall provide the Secretary's position 
  with regard to implementing that recommendation. The report shall be    
  submitted not later than six months after the date of the enactment of  
  this Act.                                                               

                    SEC. 598. SENSE OF CONGRESS REGARDING THE SELECTION OF        
          OFFICERS FOR RECOMMENDATION FOR APPOINTMENT AS COMMANDER, UNITED STATES 
          TRANSPORTATION COMMAND.                                                 
    (a)  Findings.--Congress makes the following findings:                

       (1) The Goldwater-Nichols Department of Defense Reorganization Act  
   of 1986 (Public Law 99 433) envisioned that officers would be selected  
   for recommendation to the President for appointment as the commander of 
   a combatant command under chapter 6 of title 10, United States Code (as 
   added by that Act), on the basis of being the best qualified officer for
   that position, rather than the best qualified officer of the armed force
   that had historically supplied officers to serve in that position.      
       (2) In order to provide for greater competition among the Armed     
   Forces for selection of officers for assignment as the commanders of the
   combatant commands and assignment to certain other joint positions in   
   the grade of general or admiral, Congress provided temporary relief from
   the limitation on the number of officers serving on active duty in the  
   grade of general or admiral in section 405 of the National Defense      
   Authorization Act for Fiscal Year 1995 and thereafter extended that     
   relief until September 30, 2003, but has also required that the         
   Secretary of Defense be furnished the name of at least one officer from 
   each of the Armed Forces for consideration for appointment to each such 
   position.                                                               
       (3) Most of the positions of commanders of the combatant commands   
   have been filled successively by officers of more than one of the Armed 
   Forces since the enactment of the Goldwater-Nichols Department of       
   Defense Reorganization Act of 1986.                                     
       (4) However, general officers of the Air Force with only limited    
   experience in the transportation services have usually filled the       
   position of commander of the United States Transportation Command.      
       (5) The United States Transportation Command could benefit from the 
   appointment of future commanders selected from the Army, Navy and Marine
   Corps, in addition to the Air Force.                                    
     (b) Sense of Congress.--It is the sense of Congress that the         
  Secretary of Defense, when considering officers for recommendation to   
  the President for appointment as commander of the United States         
  Transportation Command, should not rely upon officers of one service    
  which has traditionally provided officers to fill that position but     
  should select for such recommendation the best qualified officer of the 
  Army, Navy, Air Force, or Marine Corps.                                 

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS                     


                               SUBTITLE A--PAY AND ALLOWANCES                     

      Sec. 601. Increase in basic pay for fiscal year 2002.                   

            Sec. 602. Basic pay rate for certain reserve commissioned officers
      with prior service as an enlisted member or warrant officer.            
            Sec. 603. Reserve component compensation for distributed learning 
      activities performed as inactive-duty training.                         
      Sec. 604. Subsistence allowances.                                       

            Sec. 605. Eligibility for temporary housing allowance while in    
      travel or leave status between permanent duty stations.                 
      Sec. 606. Uniform allowance for officers.                               

            Sec. 607. Family separation allowance for members electing        
      unaccompanied tour by reason of health limitations of dependents.       
                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           

            Sec. 611. One-year extension of certain bonus and special pay     
      authorities for reserve forces.                                         
            Sec. 612. One-year extension of certain bonus and special pay     
      authorities for nurse officer candidates, registered nurses, and nurse  
      anesthetists.                                                           
            Sec. 613. One-year extension of special pay and bonus authorities 
      for nuclear officers.                                                   
      Sec. 614. One-year extension of other bonus and special pay authorities.

            Sec. 615. Hazardous duty pay for members of maritime visit, board,
      search, and seizure teams.                                              
            Sec. 616. Eligibility for certain career continuation bonuses for 
      early commitment to remain on active duty.                              
            Sec. 617. Secretarial discretion in prescribing submarine duty    
      incentive pay rates.                                                    
            Sec. 618. Conforming accession bonus for dental officers authority
      with authorities for other special pay and bonuses.                     
            Sec. 619. Modification of eligibility requirements for Individual 
      Ready Reserve bonus for reenlistment, enlistment, or extension of       
      enlistment.                                                             
      Sec. 620. Installment payment authority for 15-year career status bonus.

      Sec. 621. Accession bonus for new officers in critical skills.          

            Sec. 622. Education savings plan to encourage reenlistments and   
      extensions of service in critical specialties.                          
            Sec. 623. Continuation of payment of special and incentive pay at 
      unreduced rates during stop loss periods.                               
            Sec. 624. Retroactive authorization for imminent danger pay for   
      service in connection with Operation Enduring Freedom.                  
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            

            Sec. 631. Minimum per diem rate for travel and transportation     
      allowance for travel performed upon a change of permanent station and   
      certain other travel.                                                   
            Sec. 632. Eligibility for payment of subsistence expenses         
      associated with occupancy of temporary lodging incident to reporting to 
      first permanent duty station.                                           
            Sec. 633. Reimbursement of members for mandatory pet quarantine   
      fees for household pets.                                                
            Sec. 634. Increased weight allowance for transportation of baggage
      and household effects for junior enlisted members.                      
      Sec. 635. Eligibility of additional members for dislocation allowance.  

            Sec. 636. Partial dislocation allowance authorized for housing    
      moves ordered for Government convenience.                               
            Sec. 637. Allowances for travel performed in connection with      
      members taking authorized leave between consecutive overseas tours.     
            Sec. 638. Travel and transportation allowances for family members 
      to attend burial of a deceased member of the uniformed services.        
            Sec. 639. Funded student travel for foreign study under an        
      education program approved by a United States school.                   
                     SUBTITLE D--RETIREMENT AND SURVIVOR BENEFIT MATTERS          

            Sec. 641. Contingent authority for concurrent receipt of military 
      retired pay and veterans' disability compensation and enhancement of    
      special compensation authority.                                         
            Sec. 642. Survivor Benefit Plan annuities for surviving spouses of
      members who die while on active duty and not eligible for retirement.   
                                  SUBTITLE E--OTHER MATTERS                       

            Sec. 651. Payment for unused leave in excess of 60 days accrued by
      members of reserve components on active duty for one year or less.      
            Sec. 652. Additional authority to provide assistance for families 
      of members of the Armed Forces.                                         
            Sec. 653. Authorization of transitional compensation and          
      commissary and exchange benefits for dependents of commissioned officers
      of the Public Health Service and the National Oceanic and Atmospheric   
      Administration who are separated for dependent abuse.                   
            Sec. 654. Transfer of entitlement to educational assistance under 
      Montgomery GI Bill by members of the Armed Forces with critical military
      skills.                                                                 

           Subtitle A--Pay and Allowances                                          

          SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2002.                   

     (a) Waiver of Section 1009 Adjustment.--The adjustment to become     
  effective during fiscal year 2002 required by section 1009 of title 37, 
  United States Code, in the rates of monthly basic pay authorized members
  of the uniformed services shall not be made.                            
     (b) Increase in Basic Pay.--Effective on January 1, 2002, the rates  
  of monthly basic pay for members of the uniformed services within each  
  pay grade are as follows:                                               
                                                                                 


                            COMMISSIONED OFFICERS\1\                           
  Years of service computed under section 205 of title 37, United States Code  

                                                                              

   Pay  Grade        or less       Over 2       Over 3       Over 4      Over 6  
------------  -----------  -----------  -----------  -----------  ----------  
O 10\2\             $0.00        $0.00        $0.00        $0.00       $0.00  
O 9                  0.00         0.00         0.00         0.00        0.00  
O 8              7,180.20     7,415.40     7,571.10     7,614.90    7,809.30  
O 7              5,966.40     6,371.70     6,371.70     6,418.20    6,657.90  
O 6              4,422.00     4,857.90     5,176.80     5,176.80    5,196.60  
O 5              3,537.00     4,152.60     4,440.30     4,494.30    4,673.10  
O 4              3,023.70     3,681.90     3,927.60     3,982.50    4,210.50  
O 3\3\           2,796.60     3,170.40     3,421.80     3,698.70    3,875.70  
O 2\3\           2,416.20     2,751.90     3,169.50     3,276.30    3,344.10  
O 1\3\           2,097.60     2,183.10     2,638.50     2,638.50    2,638.50  



                       COMMISSIONED OFFICERS\1\--Continued                     
  Years of service computed under section 205 of title 37, United States Code  

                                                                                   

   Pay  Grade          Over 8       Over 10       Over 12       Over 14      Over 16  
-------------  -----------  ------------  ------------  ------------  -----------  
O 10\2\              $0.00         $0.00         $0.00         $0.00        $0.00  
O 9                   0.00          0.00          0.00          0.00         0.00  
O 8               8,135.10      8,210.70      8,519.70      8,608.50     8,874.30  
O 7               6,840.30      7,051.20      7,261.80      7,472.70     8,135.10  
O 6               5,418.90      5,448.60      5,448.60      5,628.60     6,305.70  
O 5               4,673.10      4,813.50      5,073.30      5,413.50     5,755.80  
O 4               4,395.90      4,696.20      4,930.20      5,092.50     5,255.70  
O 3\3\            4,070.10      4,232.40      4,441.20      4,549.50     4,549.50  
O 2\3\            3,344.10      3,344.10      3,344.10      3,344.10     3,344.10  
O 1\3\            2,638.50      2,638.50      2,638.50      2,638.50     2,638.50  
               -----------  ------------  ------------  ------------  -----------  
                      Over 18       Over 20       Over 22       Over 24      Over 26  
               -----------  ------------  ------------  ------------  -----------  
O 10\2\              $0.00     11,601.90     11,659.20     11,901.30    12,324.00  
O 9                   0.00     10,147.50     10,293.60     10,504.80    10,873.80  
O 8               9,259.50      9,614.70      9,852.00      9,852.00     9,852.00  
O 7               8,694.90      8,694.90      8,694.90      8,694.90     8,738.70  
O 6               6,627.00      6,948.30      7,131.00      7,316.10     7,675.20  
O 5               5,919.00      6,079.80      6,262.80      6,262.80     6,262.80  
O 4               5,310.60      5,310.60      5,310.60      5,310.60     5,310.60  
O 3\3\            4,549.50      4,549.50      4,549.50      4,549.50     4,549.50  
O 2\3\            3,344.10      3,344.10      3,344.10      3,344.10     3,344.10  
O 1\3\            2,638.50      2,638.50      2,638.50      2,638.50     2,638.50  

\1\Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned officers in pay grades 0 7 through O 10 may not exceed the rate of pay for level III of the Executive Schedule and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the Executive Schedule.                                                                          
\2\Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of the Coast Guard, the rate of basic pay for this grade is $13,598.10, regardless of cumulative years of service computed under section 205 of title 37, United States Code.  
\3\This table does not apply to commissioned officers in pay grade O 1, O 2, or O 3 who have been credited with over 4 years of active duty service as an enlisted member or warrant officer.                                                                                                                                                                                                                                       



   COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER 
                Years of service computed under section 205 of title 37, United States Code                

                                                                              

   Pay  Grade        or less       Over 2       Over 3       Over 4      Over 6  
------------  -----------  -----------  -----------  -----------  ----------  
O 3E                $0.00        $0.00        $0.00     3,698.70    3,875.70  
O 2E                 0.00         0.00         0.00     3,276.30    3,344.10  
O 1E                 0.00         0.00         0.00     2,638.50    2,818.20  
              -----------  -----------  -----------  -----------  ----------  
                      Over 8      Over 10      Over 12      Over 14     Over 16  
              -----------  -----------  -----------  -----------  ----------  
O 3E             4,070.10     4,232.40     4,441.20     4,617.00    4,717.50  
O 2E             3,450.30     3,630.00     3,768.90     3,872.40    3,872.40  
O 1E             2,922.30     3,028.50     3,133.20     3,276.30    3,276.30  
              -----------  -----------  -----------  -----------  ----------  
                     Over 18      Over 20      Over 22      Over 24     Over 26  
              -----------  -----------  -----------  -----------  ----------  
O 3E             4,855.20     4,855.20     4,855.20     4,855.20    4,855.20  
O 2E             3,872.40     3,872.40     3,872.40     3,872.40    3,872.40  
O 1E             3,276.30     3,276.30     3,276.30     3,276.30    3,276.30  


                               WARRANT OFFICERS\1\                             
  Years of service computed under section 205 of title 37, United States Code  

                                                                               

   Pay  Grade        or less       Over 2       Over 3       Over 4       Over 6  
------------  -----------  -----------  -----------  -----------  -----------  
W 5                 $0.00        $0.00        $0.00        $0.00        $0.00  
W 4              2,889.60     3,108.60     3,198.00     3,285.90     3,437.10  
W 3              2,638.80     2,862.00     2,862.00     2,898.90     3,017.40  
W 2              2,321.40     2,454.00     2,569.80     2,654.10     2,726.40  
W 1              2,049.90     2,217.60     2,330.10     2,402.70     2,511.90  
              -----------  -----------  -----------  -----------  -----------  
                      Over 8      Over 10      Over 12      Over 14      Over 16  
              -----------  -----------  -----------  -----------  -----------  
W 5                 $0.00        $0.00        $0.00        $0.00        $0.00  
W 4              3,586.50     3,737.70     3,885.30     4,038.00     4,184.40  
W 3              3,152.40     3,330.90     3,439.50     3,558.30     3,693.90  
W 2              2,875.20     2,984.40     3,093.90     3,200.40     3,318.00  
W 1              2,624.70     2,737.80     2,850.00     2,963.70     3,077.10  
              -----------  -----------  -----------  -----------  -----------  
                     Over 18      Over 20      Over 22      Over 24      Over 26  
              -----------  -----------  -----------  -----------  -----------  
W 5                 $0.00     4,965.60     5,136.00     5,307.00     5,478.60  
W 4              4,334.40     4,480.80     4,632.60     4,782.00     4,935.30  
W 3              3,828.60     3,963.60     4,098.30     4,233.30     4,368.90  
W 2              3,438.90     3,559.80     3,680.10     3,801.30     3,801.30  
W 1              3,189.90     3,275.10     3,275.10     3,275.10     3,275.10  

\1\Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers may not exceed the rate of pay for level V of the Executive Schedule.  



                               ENLISTED MEMBERS\1\                             
  Years of service computed under section 205 of title 37, United States Code  

                                                                                    

   Pay  Grade            or less        Over 2       Over 3       Over 4       Over 6  
------------  ---------------  ------------  -----------  -----------  -----------  
 9\2\                   $0.00         $0.00        $0.00        $0.00        $0.00  
 8                       0.00          0.00         0.00         0.00         0.00  
 7                   1,986.90      2,169.00     2,251.50     2,332.50     2,417.40  
 6                   1,701.00      1,870.80     1,953.60     2,033.70     2,117.40  
 5                   1,561.50      1,665.30     1,745.70     1,828.50     1,912.80  
 4                   1,443.60      1,517.70     1,599.60     1,680.30     1,752.30  
 3                   1,303.50      1,385.40     1,468.50     1,468.50     1,468.50  
 2                   1,239.30      1,239.30     1,239.30     1,239.30     1,239.30  
 1               \3\ 1,105.50      1,105.50     1,105.50     1,105.50     1,105.50  
              ---------------  ------------  -----------  -----------  -----------  
                          Over 8       Over 10      Over 12      Over 14      Over 16  
              ---------------  ------------  -----------  -----------  -----------  
 9\2\                   $0.00     $3,423.90     3,501.30     3,599.40     3,714.60  
 8                   2,858.10      2,940.60     3,017.70     3,110.10     3,210.30  
 7                   2,562.90      2,645.10     2,726.40     2,808.00     2,892.60  
 6                   2,254.50      2,337.30     2,417.40     2,499.30     2,558.10  
 5                   2,030.10      2,110.20     2,193.30     2,193.30     2,193.30  
 4                   1,752.30      1,752.30     1,752.30     1,752.30     1,752.30  
 3                   1,468.50      1,468.50     1,468.50     1,468.50     1,468.50  
 2                   1,239.30      1,239.30     1,239.30     1,239.30     1,239.30  
 1                   1,105.50      1,105.50     1,105.50     1,105.50     1,105.50  
              ---------------  ------------  -----------  -----------  -----------  
                         Over 18       Over 20      Over 22      Over 24      Over 26  
              ---------------  ------------  -----------  -----------  -----------  
 9\2\               $3,830.40      3,944.10     4,098.30     4,251.30     4,467.00  
 8                   3,314.70      3,420.30     3,573.00     3,724.80     3,937.80  
 7                   2,975.10      3,057.30     3,200.40     3,292.80     3,526.80  
 6                   2,602.80      2,602.80     2,602.80     2,602.80     2,602.80  
 5                   2,193.30      2,193.30     2,193.30     2,193.30     2,193.30  
 4                   1,752.30      1,752.30     1,752.30     1,752.30     1,752.30  
 3                   1,468.50      1,468.50     1,468.50     1,468.50     1,468.50  
 2                   1,239.30      1,239.30     1,239.30     1,239.30     1,239.30  
 1                   1,105.50      1,105.50     1,105.50     1,105.50     1,105.50  

\1\Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for enlisted members may not exceed the rate of pay for level V of the Executive Schedule.                                                                                                                                                                                                                
\2\Subject to the preceding footnote, while serving as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty Officer of the Coast Guard, basic pay for this grade is $5,382.90, regardless of cumulative years of service computed under section 205 of title 37, United States Code.  
\3\In the case of members in pay grade E 1 who have served less than 4 months on active duty, the rate of basic pay is $1,022.70.                                                                                                                                                                                                                                                                      


                    SEC. 602. BASIC PAY RATE FOR CERTAIN RESERVE COMMISSIONED     
          OFFICERS WITH PRIOR SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER.   
     (a) Service Credit.--Section 203(d) of title 37, United States Code, 
  is amended--                                                            
     (1) by inserting ``(1)'' after ``(d)'';                               

       (2) by striking ``active service as a warrant officer or as a       
   warrant officer and an enlisted member'' and inserting ``service        
   described in paragraph (2)''; and                                       
     (3) by adding at the end the following new paragraph:                 

     ``(2) Service to be taken into account for purposes of computing     
  basic pay under paragraph (1) is as follows:                            
       ``(A) Active service as a warrant officer or as a warrant officer   
   and an enlisted member, in the case of--                                
       ``(i) a commissioned officer on active duty who is paid from funds  
   appropriated for active-duty personnel; or                              
     ``(ii) a commissioned officer on active Guard and Reserve duty.       


       ``(B) In the case of a commissioned officer (not referred to in     
   subparagraph (A)(ii)) who is paid from funds appropriated for reserve   
   personnel, service as a warrant officer, or as a warrant officer and    
   enlisted member, for which at least 1,460 points have been credited to  
   the officer for the purposes of section 12732(a)(2) of title 10.''.     
     (b) Application of Amendments.--The amendments made by subsection (a)
  shall apply with respect to months beginning on or after the date of the
  enactment of this Act.                                                  

                    SEC. 603. RESERVE COMPONENT COMPENSATION FOR DISTRIBUTED      
          LEARNING ACTIVITIES PERFORMED AS INACTIVE-DUTY TRAINING.                
     (a) Compensation Authorized.--Section 206(d) of title 37, United     
  States Code, is amended--                                               
       (1) by striking ``This section'' and inserting ``(1) Except as      
   provided in paragraph (2), this section'';                              
       (2) by striking ``an armed force'' and inserting ``a uniformed      
   service''; and                                                          
     (3) by adding at the end the following new paragraph:                 

     ``(2) A member of the Selected Reserve of the Ready Reserve may be   
  paid compensation under this section at a rate and under terms          
  determined by the Secretary of Defense, but not to exceed the rate      
  otherwise applicable to the member under subsection (a), upon the       
  member's successful completion of a course of instruction undertaken by 
  the member using electronic-based distributed learning methodologies to 
  accomplish training requirements related to unit readiness or           
  mobilization, as directed for the member by the Secretary concerned. The
  compensation may be paid regardless of whether the course of instruction
  was under the direct control of the Secretary concerned or included the 
  presence of an instructor.''.                                           
     (b) Definition of Inactive-Duty Training.--Section 101(22) of such   
  title is amended by inserting after ``but'' the following: ``(except as 
  provided in section 206(d)(2) of this title)''.                         

          SEC. 604. SUBSISTENCE ALLOWANCES.                                       

     (a) Baseline Amount for Calculating Allowance for Enlisted           
  Members.--Section 402(b) of title 37, United States Code, is amended by 
  adding at the end the following new paragraph:                          
     ``(4) For purposes of implementing paragraph (2), the monthly rate of
  basic allowance for subsistence that was in effect for an enlisted      
  member for calendar year 2001 is deemed to be $233.''.                  
     (b) Rate for Enlisted Members When Messing Facilities Not            
  Available.--(1) Notwithstanding section 402 of title 37, United States  
  Code, the Secretary of Defense, and the Secretary of Transportation with
  respect to the Coast Guard when it is not operating as a service in the 
  Navy, may prescribe a rate of basic allowance for subsistence to apply  
  to enlisted members of the uniformed services when messing facilities of
  the United States are not available. The rate may be higher than the    
  rate of basic allowance for subsistence that would otherwise be         
  applicable to the members under that section, but may not be higher than
  the highest rate that was in effect for enlisted members of the         
  uniformed services under those circumstances before the date of the     
  enactment of this Act.                                                  
     (2) Paragraph (1) shall cease to be effective on the first day of the
  first month for which the basic allowance for subsistence calculated for
  enlisted members of the uniformed services under section 402 of title   
  37, United States Code, exceeds the rate of the basic allowance for     
  subsistence prescribed under paragraph (1).                             
     (c) Continuation of BAS Transitional Authority.--Notwithstanding the 
  repeal of subsections (c) through (f) of section 602 of the National    
  Defense Authorization Act for Fiscal Year 1998 (Public Law 105 85; 37   
  U.S.C. 402 note) by section 603(c) of the Floyd D. Spence National      
  Defense Authorization Act for Fiscal Year 2001 (as enacted into law by  
  Public Law 106 398; 114 Stat. 1654A 145), the basic allowance for       
  subsistence shall be paid in accordance with such subsections for       
  October, November, and December of 2001.                                
     (d) Eligibility for Supplemental Subsistence Allowance.--Section     
  402a(b)(1) of title 37, United States Code, is amended by inserting     
  ``with dependents'' after ``a member of the armed forces''.             

                    SEC. 605. ELIGIBILITY FOR TEMPORARY HOUSING ALLOWANCE WHILE IN
          TRAVEL OR LEAVE STATUS BETWEEN PERMANENT DUTY STATIONS.                 
     (a) Repeal of Pay Grade Limitation.--Section 403(i) of title 37,     
  United States Code, is amended by striking ``who is in a pay grade E 4  
  (4 or more years of service) or above''.                                
     (b) Effective Date; Application.--The amendment made by this section 
  shall take effect on January 1, 2003, and apply to members of the       
  uniformed services in a travel or leave status between permanent duty   
  stations on or after that date.                                         

          SEC. 606. UNIFORM ALLOWANCE FOR OFFICERS.                               

     (a) Relation to Initial Uniform Allowance.--Section 416(b)(1) of     
  title 37, United States Code, is amended by striking ``$200'' and       
  inserting ``$400''.                                                     
     (b) Effective Date.--The amendment made by this section shall take   
  effect as of October 1, 2000.                                           

                    SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS ELECTING    
          UNACCOMPANIED TOUR BY REASON OF HEALTH LIMITATIONS OF DEPENDENTS.       
     (a) Entitlement to Allowance.--Section 427(c) of title 37, United    
  States Code, is amended--                                               
       (1) by striking ``A member'' in the first sentence and inserting    
   ``(1) Except as provided in paragraph (2) or (3), a member'';           
       (2) in the second sentence, by striking ``The Secretary concerned   
   may waive the preceding sentence'' and inserting the following:         
    ``(3) The Secretary concerned may waive paragraph (1)''; and          

     (3) by inserting after the first sentence the following new paragraph:

     ``(2) The prohibition in the first sentence of paragraph (1) does not
  apply to a member who elects to serve an unaccompanied tour of duty     
  because a dependent cannot accompany the member to or at that permanent 
  station for certified medical reasons.''.                               
     (b) Application of Amendment.--Paragraph (2) of section 427(c) of    
  title 37, United States Code, as added by subsection (a)(3), shall apply
  with respect to pay periods beginning on or after January 1, 2002, for a
  member of the uniformed services covered by such paragraph regardless of
  the date on which the member first made the election to serve an        
  unaccompanied tour of duty.                                             

           Subtitle B--Bonuses and Special and Incentive Pays                      


                    SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
          AUTHORITIES FOR RESERVE FORCES.                                         
     (a) Special Pay for Health Professionals in Critically Short Wartime 
  Specialties.--Section 302g(f) of title 37, United States Code, is       
  amended by striking ``December 31, 2001'' and inserting ``December 31,  
  2002''.                                                                 
     (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of such    
  title is amended by striking ``December 31, 2001'' and inserting        
  ``December 31, 2002''.                                                  
     (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of such title
  is amended by striking ``December 31, 2001'' and inserting ``December   
  31, 2002''.                                                             
     (d) Special Pay for Enlisted Members Assigned to Certain High        
  Priority Units.--Section 308d(c) of such title is amended by striking   
  ``December 31, 2001'' and inserting ``December 31, 2002''.              
     (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of such     
  title is amended by striking ``December 31, 2001'' and inserting        
  ``December 31, 2002''.                                                  
     (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 308h(g)
  of such title is amended by striking ``December 31, 2001'' and inserting
  ``December 31, 2002''.                                                  
     (g) Prior Service Enlistment Bonus.--Section 308i(f) of such title is
  amended by striking ``December 31, 2001'' and inserting ``December 31,  
  2002''.                                                                 
     (h) Repayment of Education Loans for Certain Health Professionals Who
  Serve in the Selected Reserve.--Section 16302(d) of title 10, United    
  States Code, is amended by striking ``January 1, 2002'' and inserting   
  ``January 1, 2003''.                                                    
                    SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
          AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND NURSE  
          ANESTHETISTS.                                                           
     (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)  
  of title 10, United States Code, is amended by striking ``December 31,  
  2001'' and inserting ``December 31, 2002''.                             
     (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of    
  title 37, United States Code, is amended by striking ``December 31,     
  2001'' and inserting ``December 31, 2002''.                             
     (c) Incentive Special Pay for Nurse Anesthetists.--Section 302e(a)(1)
  of title 37, United States Code, is amended by striking ``December 31,  
  2001'' and inserting ``December 31, 2002''.                             
                    SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS         
          AUTHORITIES FOR NUCLEAR OFFICERS.                                       
     (a) Special Pay for Nuclear-Qualified Officers Extending Period of   
  Active Service.--Section 312(e) of such title is amended by striking    
  ``December 31, 2001'' and inserting ``December 31, 2002''.              
     (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title is
  amended by striking ``December 31, 2001'' and inserting ``December 31,  
  2002''.                                                                 
     (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such  
  title is amended by striking ``December 31, 2001'' and inserting        
  ``December 31, 2002''.                                                  

          SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY AUTHORITIES.

     (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,  
  United States Code, is amended by striking ``December 31, 2001'' and    
  inserting ``December 31, 2002''.                                        
     (b) Reenlistment Bonus for Active Members.--Section 308(g) of such   
  title is amended by striking ``December 31, 2001'' and inserting        
  ``December 31, 2002''.                                                  
     (c) Enlistment Bonus for Active Members.--Section 309(e) of such     
  title is amended by striking ``December 31, 2001'' and inserting        
  ``December 31, 2002''.                                                  
     (d) Retention Bonus for Members With Critical Military               
  Skills.--Section 323(i) of such title is amended by striking ``December 
  31, 2001'' and inserting ``December 31, 2002''.                         

                    SEC. 615. HAZARDOUS DUTY PAY FOR MEMBERS OF MARITIME VISIT,   
          BOARD, SEARCH, AND SEIZURE TEAMS.                                       
     (a) Additional Type of Duty Eligible for Pay.--Section 301(a) of     
  title 37, United States Code, is amended--                              
     (1) in paragraph (10), by striking ``or'' at the end;                 

     (2) by redesignating paragraph (11) as paragraph (12); and            

     (3) by inserting after paragraph (10) the following new paragraph:    

       ``(11) involving regular participation as a member of a team        
   conducting visit, board, search, and seizure operations aboard vessels  
   in support of maritime interdiction operations; or''.                   
    (b)  Monthly Amount.--Subsection (c) of such section is amended--     

     (1) in paragraph (1), by striking ``(10)'' and inserting ``(11)''; and

     (2) in paragraph (2)(A), by striking ``(11)'' and inserting ``(12)''. 

     (c) Application of Amendment.--Paragraph (11) of section 301(a) of   
  title 37, United States Code, as added by subsection (a)(3), shall apply
  to duty described in such paragraph that is performed on or after       
  January 1, 2002.                                                        

                    SEC. 616. ELIGIBILITY FOR CERTAIN CAREER CONTINUATION BONUSES 
          FOR EARLY COMMITMENT TO REMAIN ON ACTIVE DUTY.                          
     (a) Aviation Officers.--Section 301b(b)(4) of title 37, United States
  Code, is amended by inserting before the period at the end the          
  following: ``or is within one year of completing such commitment''.     
     (b) Surface Warfare Officers.--Section 319(a)(3) of such title is    
  amended by inserting before the period at the end the following: ``or is
  within one year of completing such commitment''.                        

                    SEC. 617. SECRETARIAL DISCRETION IN PRESCRIBING SUBMARINE DUTY
          INCENTIVE PAY RATES.                                                    
     (a) Authority of Secretary of the Navy; Maximum Rate.--Subsection (b)
  of section 301c of title 37, United States Code, is amended to read as  
  follows:                                                                
     ``(b) Monthly Rates.--The Secretary of the Navy shall prescribe the  
  monthly rates of submarine duty incentive pay, except that the maximum  
  monthly rate may not exceed $1,000.''.                                  
     (b) Conforming and Clerical Amendments.--Such section is further     
  amended--                                                               
     (1) in subsection (a)--                                               

     (A) by inserting `` Eligibility Requirements.--'' after ``(a)''; and  

       (B) by striking ``set forth in'' each place it appears and inserting
   ``prescribed pursuant to'';                                             
       (2) in subsection (c), by inserting `` Exceptions.--'' after        
   ``(c)''; and                                                            
     (3) in subsection (d)--                                               

       (A) by inserting `` Applicability to Certain Naval Reserve Duty.--''
   after ``(d)''; and                                                      
       (B) by striking ``authorized by'' and inserting ``prescribed        
   pursuant to''.                                                          
     (c) Transition.--The tables set forth in subsection (b) of section   
  301c of title 37, United States Code, as in effect on the day before the
  date of the enactment of this Act, shall continue to apply until the    
  later of the following:                                                 
     (1) January 1, 2002.                                                  

       (2) The date on which the Secretary of the Navy prescribes new      
   submarine duty incentive pay rates as authorized by the amendment made  
   by subsection (a).                                                      

                    SEC. 618. CONFORMING ACCESSION BONUS FOR DENTAL OFFICERS      
          AUTHORITY WITH AUTHORITIES FOR OTHER SPECIAL PAY AND BONUSES.           
     Section 302h(a)(1) of title 37, United States Code, is amended by    
  striking ``the date of the enactment of this section, and ending on     
  September 30, 2002'' and inserting ``September 23, 1996, and ending on  
  December 31, 2002''.                                                    

                    SEC. 619. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR        
          INDIVIDUAL READY RESERVE BONUS FOR REENLISTMENT, ENLISTMENT, OR         
          EXTENSION OF ENLISTMENT.                                                
     (a) Eligibility Based on Qualifications in Critically Short Wartime  
  Skills or Specialties.--Subsection (a) of section 308h of title 37,     
  United States Code, is amended to read as follows:                      
     ``(a) Authority and Eligibility Requirements.--(1) The Secretary     
  concerned may pay a bonus as provided in subsection (b) to an eligible  
  person who reenlists, enlists, or voluntarily extends an enlistment in a
  reserve component of an armed force for assignment to an element (other 
  than the Selected Reserve) of the Ready Reserve of that armed force if  
  the reenlistment, enlistment, or extension is for a period of three     
  years, or for a period of six years, beyond any other period the person 
  is obligated to serve.                                                  
     ``(2) A person is eligible for a bonus under this section if the     
  person--                                                                
     ``(A) is or has been a member of an armed force;                      

       ``(B) is qualified in a skill or specialty designated by the        
   Secretary concerned as a critically short wartime skill or critically   
   short wartime specialty; and                                            
       ``(C) has not failed to complete satisfactorily any original term of
   enlistment in the armed forces.                                         
     ``(3) For the purposes of this section, the Secretary concerned may  
  designate a skill or specialty as a critically short wartime skill or   
  critically short wartime specialty for an armed force under the         
  jurisdiction of the Secretary if the Secretary determines that--        
       ``(A) the skill or specialty is critical to meet wartime            
   requirements of the armed force; and                                    
       ``(B) there is a critical shortage of personnel in that armed force 
   who are qualified in that skill or specialty.''.                        
    (b)  Clerical Amendments.--Such section is further amended--          

       (1) in subsection (b), by inserting `` Bonus Amounts; Payment.--''  
   after ``(b)'';                                                          
       (2) in subsection (c), by inserting `` Repayment of Bonus.--'' after
   ``(c)'';                                                                
       (3) in subsection (d), by inserting `` Treatment of Reimbursement   
   Obligation.--'' after ``(d)'';                                          
       (4) in subsection (e), by inserting `` Effect of Bankruptcy.--''    
   after ``(e)'';                                                          
       (5) in subsection (f), by inserting `` Regulations.--'' after       
   ``(f)''; and                                                            
       (6) in subsection (g), by inserting `` Termination of Authority.--''
   after ``(g)''.                                                          
     (c) Regulations.--Not later than 180 days after the date of the      
  enactment of this Act, the Secretaries of the military departments shall
  prescribe such regulations as may be necessary for administering        
  subsection (a) of section 308h of title 37, United States Code, as      
  amended by this section.                                                
     (d) Application of Amendment.--Subsection (a) of section 308h of     
  title 37, United States Code, as amended by this section, shall apply   
  with respect to reserve component reenlistments, enlistments, and       
  extensions of enlistments that are executed on or after the first day of
  the first month that begins more than 180 days after the date of the    
  enactment of this Act. Subsection (a) of such section 308h, as in effect
  on the day before the date of the enactment of this Act, shall continue 
  to apply with respect to reserve component reenlistments, enlistments,  
  and extensions of enlistments that are executed before the first day of 
  that first month.                                                       

          SEC. 620. INSTALLMENT PAYMENT AUTHORITY FOR 15-YEAR CAREER STATUS BONUS.

     (a) Member Election.--Section 322(d) of title 37, United States Code,
  is amended--                                                            
       (1) in paragraph (1), by striking ``paid in a single lump sum of''  
   and inserting ``equal to'';                                             
       (2) by redesignating paragraph (2) as paragraph (4), and in such    
   paragraph, by striking ``The bonus'' and inserting ``The lump sum       
   payment of the bonus, and the first installment payment in the case of  
   members who elect to receive the bonus in installments,''; and          
     (3) by inserting after paragraph (1) the following new paragraphs:    

     ``(2) A member electing to receive the bonus under this section shall
  elect one of the following payment options:                             
     ``(A) A single lump sum of $30,000.                                   

     ``(B) Two installments of $15,000 each.                               

     ``(C) Three installments of $10,000 each.                             

     ``(D) Four installments of $7,500 each.                               

     ``(E) Five installments of $6,000 each.                               

     ``(3) If a member elects installment payments under paragraph (2),   
  the second installment (and subsequent installments, as applicable)     
  shall be paid on the earlier of the following dates:                    
       ``(A) The annual anniversary date of the payment of the first       
   installment.                                                            
     ``(B) January 15 of each succeeding calendar year.''.                 

     (b) Application to Existing Agreements.--The Secretary concerned (as 
  defined in section 101(5) of title 37, United States Code) shall extend 
  to each member of the uniformed services who has executed the written   
  agreement required by subsection (a)(2) of section 322 of such title    
  before the date of the enactment of this Act, but who has not received  
  the lump sum payment by that date, an opportunity to make the election  
  authorized by subsection (d) of such section, as amended by this        
  section.                                                                

          SEC. 621. ACCESSION BONUS FOR NEW OFFICERS IN CRITICAL SKILLS.          

     (a) Bonus Authorized.--Chapter 5 of title 37, United States Code, is 
  amended by adding at the end the following new section:                 
          ``324. Special pay: accession bonus for new officers in critical skills 

     ``(a) Accession Bonus Authorized.--Under regulations prescribed by   
  the Secretary concerned, a person who executes a written agreement to   
  accept a commission as an officer of the armed forces and serve on      
  active duty in a designated critical officer skill for the period       
  specified in the agreement may, upon acceptance of the agreement by the 
  Secretary concerned, be paid an accession bonus in an amount determined 
  by the Secretary concerned.                                             
     ``(b) Designation of Critical Officer Skills.--(1) The Secretary     
  concerned shall designate the critical officer skills for the purposes  
  of this section. A skill may be designated as a critical officer skill  
  for an armed force under this subsection if--                           
       ``(1) in order to meet requirements of the armed force, it is       
   critical for the armed force to have a sufficient number of officers who
   are qualified in that skill; and                                        
       ``(2) in order to mitigate a current or projected significant       
   shortage of personnel in the armed force who are qualified in that      
   skill, it is critical to access into that armed force in sufficient     
   numbers persons who are qualified in that skill or are to be trained in 
   that skill.                                                             
     ``(c) Limitation on Amount of Bonus.--The amount of an accession     
  bonus under subsection (a) may not exceed $60,000.                      

     ``(d) Payment Method.--Upon acceptance of a written agreement under  
  subsection (a) by the Secretary concerned, the total amount of the      
  accession bonus payable under the agreement becomes fixed. The agreement
  shall specify whether the accession bonus will be paid by the Secretary 
  in a lump sum or installments.                                          
     ``(e) Relation to Other Accession Bonus Authority.--An individual may
  not receive an accession bonus under this section and section 302d,     
  302h, 302j, or 312b of this title for the same period of service.       
     ``(f) Repayment for Failure To Commence or Complete Obligated        
  Service.--(1) An individual who, after having received all or part of   
  the accession bonus under an agreement referred to in subsection (a),   
  fails to accept a commission as an officer or to commence or complete   
  the total period of active duty service specified in the agreement shall
  repay to the United States the amount that bears the same ratio to the  
  total amount of the bonus authorized for such person as the unserved    
  part of the period of agreed active duty service bears to the total     
  period of the agreed active duty service. However, the amount required  
  to be repaid by the individual may not exceed the amount of the         
  accession bonus that was paid to the individual.                        
     ``(2) Subject to paragraph (3), an obligation to repay the United    
  States imposed under paragraph (1) is for all purposes a debt owed to   
  the United States. A discharge in bankruptcy under title 11 that is     
  entered less than five years after the termination of an agreement      
  entered into under subsection (a) does not discharge the individual     
  signing the agreement from a debt arising under such agreement or under 
  paragraph (1).                                                          
     ``(3) The Secretary concerned may waive, in whole or in part, the    
  repayment requirement under paragraph (1) on a case-by-case basis if the
  Secretary concerned determines that repayment would be against equity   
  and good conscience or would be contrary to the best interests of the   
  United States.                                                          
     ``(g) Termination of Authority.--No agreement under this section may 
  be entered into after December 31, 2002.''.                             
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    


            ``324. Special pay: accession bonus for new officers in critical  
      skills.''.                                                              

                    SEC. 622. EDUCATION SAVINGS PLAN TO ENCOURAGE REENLISTMENTS   
          AND EXTENSIONS OF SERVICE IN CRITICAL SPECIALTIES.                      
     (a) Establishment of Savings Plan.--(1) Chapter 5 of title 37, United
  States Code, is amended by inserting after section 324, as added by     
  section 621, the following new section:                                 
                    ``325. Incentive bonus: savings plan for education expenses   
          and other contingencies                                                 
     ``(a) Benefit and Eligibility.--The Secretary concerned may purchase 
  United States savings bonds under this section for a member of the armed
  forces who is eligible as follows:                                      
       ``(1) A member who, before completing three years of service on     
   active duty, enters into a commitment to perform qualifying service.    
       ``(2) A member who, after completing three years of service on      
   active duty, but not more than nine years of service on active duty,    
   enters into a commitment to perform qualifying service.                 
       ``(3) A member who, after completing nine years of service on active
   duty, enters into a commitment to perform qualifying service.           
     ``(b) Qualifying Service.--For the purposes of this section,         
  qualifying service is service on active duty in a specialty designated  
  by the Secretary concerned as critical to meet requirements (whether or 
  not such specialty is designated as critical to meet wartime or         
  peacetime requirements) for a period that--                             
     ``(1) is not less than six years; and                                 

       ``(2) does not include any part of a period for which the member is 
   obligated to serve on active duty under an enlistment or other agreement
   for which a benefit has previously been paid under this section.        
     ``(c) Forms of Commitment to Additional Service.--For the purposes of
  this section, a commitment means--                                      
     ``(1) in the case of an enlisted member, a reenlistment; and          

       ``(2) in the case of a commissioned officer, an agreement entered   
   into with the Secretary concerned.                                      
     ``(d) Amounts of Bonds.--The total of the face amounts of the United 
  States savings bonds authorized to be purchased for a member under this 
  section for a commitment shall be as follows:                           
       ``(1) In the case of a purchase for a member under paragraph (1) of 
   subsection (a), $5,000.                                                 
       ``(2) In the case of a purchase for a member under paragraph (2) of 
   subsection (a), the amount equal to the excess of $15,000 over the total
   of the face amounts of any United States savings bonds previously       
   purchased for the member under this section.                            
       ``(3) In the case of a purchase for a member under paragraph (3) of 
   subsection (a), the amount equal to the excess of $30,000 over the total
   of the face amounts of any United States savings bonds previously       
   purchased for the member under this section.                            
     ``(e) Total Amount of Benefit.--The total amount of the benefit      
  authorized for a member when United States savings bonds are purchased  
  for the member under this section by reason of a commitment by that     
  member shall be the sum of--                                            
     ``(1) the purchase price of the United States savings bonds; and      

       ``(2) the amounts that would be deducted and withheld for the       
   payment of individual income taxes if the total amount computed under   
   this subsection for that commitment were paid to the member as a bonus. 
     ``(f) Amount Withheld for Taxes.--The total amount payable for a     
  member under subsection (e)(2) for a commitment by that member shall be 
  withheld, credited, and otherwise treated in the same manner as amounts 
  deducted and withheld from the basic pay of the member.                 
     ``(g) Repayment for Failure To Complete Obligated Service.--(1) If a 
  person fails to complete the qualifying service for which the person is 
  obligated under a commitment for which a benefit has been paid under    
  this section, the person shall refund to the United States the amount   
  that bears the same ratio to the total amount paid for the person (as   
  computed under subsection (e)) for that particular commitment as the    
  uncompleted part of the period of qualifying service bears to the total 
  period of the qualifying service for which obligated.                   
     ``(2) Subject to paragraph (3), an obligation to reimburse the United
  States imposed under paragraph (1) is for all purposes a debt owed to   
  the United States.                                                      
     ``(3) The Secretary concerned may waive, in whole or in part, a      
  refund required under paragraph (1) if the Secretary concerned          
  determines that recovery would be against equity and good conscience or 
  would be contrary to the best interests of the United States.           
     ``(4) A discharge in bankruptcy under title 11 that is entered less  
  than five years after the termination of an enlistment or other         
  agreement under this section does not discharge the person signing such 
  enlistment or other agreement from a debt arising under the enlistment  
  or agreement, respectively, or this subsection.                         
     ``(h) Relationship to Other Special Pays.--The benefit authorized    
  under this section is in addition to any other bonus or incentive or    
  special pay that is paid or payable to a member under any other         
  provision of this chapter for any portion of the same qualifying        
  service.                                                                
     ``(i) Regulations.--This section shall be administered under         
  regulations prescribed by the Secretary of Defense for the armed forces 
  under his jurisdiction and by the Secretary of Transportation for the   
  Coast Guard when the Coast Guard is not operating as a service in the   
  Navy.''.                                                                
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 324, as added by section
  621(b), the following new item:                                         


            ``325. Incentive bonus: savings plan for education expenses and   
      other contingencies.''.                                                 


     (b) Application of Amendment.--Section 325 of title 37, United States
  Code, as added by subsection (a), shall apply with respect to           
  reenlistments and other agreements for qualifying service, as described 
  in that section, that are entered into on or after October 1, 2001.     
     (c) Funding For Fiscal Year 2002.--Of the amount authorized to be    
  appropriated to the Department of Defense for military personnel for    
  fiscal year 2002 by section 421, $20,000,000 may be available in that   
  fiscal year for the purchase of United States savings bonds under       
  section 325 of title 37, United States Code, as added by subsection (a).

                    SEC. 623. CONTINUATION OF PAYMENT OF SPECIAL AND INCENTIVE PAY
          AT UNREDUCED RATES DURING STOP LOSS PERIODS.                            
     (a) Authority To Continue.--(1) Chapter 17 of title 37, United States
  Code, is amended by adding at the end the following new section:        

                    ``909. Special and incentive pay: payment at unreduced rates  
          during suspension of personnel laws                                     
     ``(a) Authority To Continue Payment at Unreduced Rates.--To ensure   
  fairness and recognize the contributions of members of the armed forces 
  to military essential missions, the Secretary of the military department
  concerned may authorize members who are involuntarily retained on active
  duty under section 123 or 12305 of title 10 or any other provision of   
  law and who, immediately before retention on active duty, were entitled 
  or eligible for special pay or incentive pay under chapter 5 of this    
  title, to receive that special pay or incentive pay for qualifying      
  service performed during the retention period, without a reduction in   
  the payment rate below the rate the members received immediately before 
  retention on active duty, notwithstanding any requirement otherwise     
  applicable to that special pay or incentive pay that would reduce the   
  payment rate by reason of the years of service of the members.          

     ``(b) Suspension During Time of War.--Subsection (a) does not apply  
  with respect to a special pay or incentive pay under chapter 5 of this  
  title, whenever the authority to provide that special pay or incentive  
  pay is suspended by the President or the Secretary of Defense during a  
  time of war.                                                            
     ``(c) Qualifying Service Defined.--In this section, the term         
  `qualifying service' means service for which a particular special pay or
  incentive pay is payable under the authority of a provision of chapter 5
  of this title.''.                                                       

     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``909. Special and incentive pay: payment at unreduced rates      
      during suspension of personnel laws.''.                                 


     (b) Application of Amendments.--Section 909 of title 37, United      
  States Code, as added by subsection (a)(1), shall apply with respect to 
  pay periods beginning after September 11, 2001.                         

                    SEC. 624. RETROACTIVE AUTHORIZATION FOR IMMINENT DANGER PAY   
          FOR SERVICE IN CONNECTION WITH OPERATION ENDURING FREEDOM.              
     (a) Retroactive Authorization.--The Secretary of Defense may provide 
  for the payment of imminent danger pay under section 310 of title 37,   
  United States Code, to members of the Armed Forces assigned to duty in  
  the areas specified in subsection (b) in connection with the contingency
  operation known as Operation Enduring Freedom with respect to periods of
  duty served in those areas during the period beginning on September 19, 
  2001, and ending October 31, 2001.                                      
     (b) Specified Areas.--The areas referred to in subsection (a) are the
  following:                                                              
       (1) The land areas of Kyrgyzstan, Oman, the United Arab Emirates,   
   and Uzbekistan.                                                         
       (2) The Red Sea, the Gulf of Aden, the Gulf of Oman, and the Arabian
   Sea (that portion north of 10 north latitude and west of 68 east        
   longitude).                                                             

           Subtitle C--Travel and Transportation Allowances                        


                    SEC. 631. MINIMUM PER DIEM RATE FOR TRAVEL AND TRANSPORTATION 
          ALLOWANCE FOR TRAVEL PERFORMED UPON A CHANGE OF PERMANENT STATION AND   
          CERTAIN OTHER TRAVEL.                                                   
     Section 404(d) of title 37, United States Code, is amended by adding 
  at the end the following new paragraph:                                 
     ``(5) Effective January 1, 2003, the per diem rates established under
  paragraph (2)(A) for travel performed in connection with a change of    
  permanent station or for travel described in paragraph (2) or (3) of    
  subsection (a) shall be equal to the standard per diem rates established
  in the Federal travel regulation for travel within the continental      
  United States of civilian employees and their dependents, unless the    
  Secretaries concerned determine that a higher rate for members is more  
  appropriate.''.                                                         

                    SEC. 632. ELIGIBILITY FOR PAYMENT OF SUBSISTENCE EXPENSES     
          ASSOCIATED WITH OCCUPANCY OF TEMPORARY LODGING INCIDENT TO REPORTING TO 
          FIRST PERMANENT DUTY STATION.                                           
     (a) Inclusion of Officers.--Subsection (a)(2)(C) of section 404a of  
  title 37, United States Code, is amended by striking ``an enlisted      
  member'' and inserting ``a member''.                                    
     (b) Increase in Maximum Daily Authorized Rate.--Subsection (e) of    
  such section is amended by striking ``$110'' and inserting ``$180''.    
     (c) Effective Date; Application.--The amendments made by this section
  shall take effect on January 1, 2002, and apply with respect to an order
  issued on or after that date to a member of the uniformed services to   
  report to the member's first permanent duty station.                    

                    SEC. 633. REIMBURSEMENT OF MEMBERS FOR MANDATORY PET          
          QUARANTINE FEES FOR HOUSEHOLD PETS.                                     
     (a) Increase in Maximum Reimbursement Amount.--Section 406(a)(1) of  
  title 37, United States Code, is amended in the last sentence by        
  striking ``$275'' and inserting ``$550''.                               
     (b) Application of Amendment.--The amendment made by subsection (a)  
  shall apply with respect to the reimbursement of members of the         
  uniformed services for mandatory pet quarantine fees incurred in        
  connection with the mandatory quarantine of a household pet underway on 
  the date of the enactment of this Act or beginning on or after that     
  date.                                                                   

                    SEC. 634. INCREASED WEIGHT ALLOWANCE FOR TRANSPORTATION OF    
          BAGGAGE AND HOUSEHOLD EFFECTS FOR JUNIOR ENLISTED MEMBERS.              
     (a) Increased Weight Allowances.--The table in section 406(b)(1)(C)  
  of title 37, United States Code, is amended--                           
     (1) by striking the two footnotes; and                                

       (2) by striking the items relating to pay grade E 1 through E 4 and 
   inserting the following new items:                                      

                                                                               

                              

``E 4      7,000     8,00014  
``E 3      5,000     8,00014  
``E 2      5,000     8,00014  
``E 1      5,000    8,000''.  

     (b) Effective Date; Application.--The amendments made by this section
  shall take effect on January 1, 2003, and apply with respect to an order
  in connection with a change of temporary or permanent station issued on 
  or after that date.                                                     

          SEC. 635. ELIGIBILITY OF ADDITIONAL MEMBERS FOR DISLOCATION ALLOWANCE.  

     (a) Eligibility for Primary Dislocation Allowance.--Subsection (a) of
  section 407 of title 37, United States Code, is amended--               
       (1) in paragraph (2), by adding at the end the following new        
   subparagraphs:                                                          
       ``(F) A member whose dependents actually move from the member's     
   place of residence in connection with the performance of orders for the 
   member to report to the member's first permanent duty station if the    
   move--                                                                  
     ``(i) is to the permanent duty station or a designated location; and  

     ``(ii) is an authorized move.                                         

     ``(G) Each of two members married to each other who--                 

     ``(i) is without dependents;                                          

       ``(ii) actually moves with the member's spouse to a new permanent   
   duty station; and                                                       
       ``(iii) is assigned to family quarters of the United States at or in
   the vicinity of the new duty station.''; and                            
     (2) by adding at the end the following new paragraph:                 

     ``(4) If a primary dislocation allowance is payable to two members   
  described in paragraph (2)(G) who are married to each other, the amount 
  of the allowance payable to such members shall be the amount otherwise  
  payable under this subsection to the member in the higher pay grade, or 
  to either member if both members are in the same pay grade. The         
  allowance shall be paid jointly to both members.''.                     
     (b) Conforming Amendment.--Subsection (e) of such section is amended 
  by inserting ``(except as provided in subsection (a)(2)(F))'' after     
  ``first duty station''.                                                 
     (c) Application of Amendments.--The amendments made by this section  
  shall apply with respect to an order issued on or after January 1, 2002,
  in connection with a change of permanent station or for a member of the 
  uniformed services to report to the member's first permanent duty       
  station.                                                                

                    SEC. 636. PARTIAL DISLOCATION ALLOWANCE AUTHORIZED FOR HOUSING
          MOVES ORDERED FOR GOVERNMENT CONVENIENCE.                               
     (a) Authorization of Partial Dislocation Allowance.--Section 407 of  
  title 37, United States Code is amended--                               
       (1) by redesignating subsections (f) and (g) as subsections (g) and 
   (h), respectively; and                                                  
     (2) by inserting after subsection (e) the following new subsection:   

     ``(f) Partial Dislocation Allowance.--(1) Under regulations          
  prescribed by the Secretary concerned, a member ordered to occupy or    
  vacate family housing provided by the United States to permit the       
  privatization or renovation of housing or for any other reason (other   
  than pursuant to a permanent change of station) may be paid a partial   
  dislocation allowance of $500.                                          
     ``(2) Effective on the same date that the monthly rates of basic pay 
  for all members are increased under section 1009 of this title or       
  another provision of law, the Secretary of Defense shall adjust the rate
  of the partial dislocation allowance authorized by this subsection by   
  the percentage equal to the average percentage increase in the rates of 
  basic pay.                                                              
     ``(3) Subsections (c) and (d) do not apply to the partial dislocation
  allowance authorized by this subsection.''.                             
     (b) Application of Amendment.--Subsection (f) of title 37, United    
  States Code, as added by subsection (a)(2), shall apply with respect to 
  an order to move for a member of a uniformed service that is issued on  
  or after the date of the enactment of this Act.                         

                    SEC. 637. ALLOWANCES FOR TRAVEL PERFORMED IN CONNECTION WITH  
          MEMBERS TAKING AUTHORIZED LEAVE BETWEEN CONSECUTIVE OVERSEAS TOURS.     
     Section 411b(a)(1) of title 37, United States Code, is amended by    
  striking ``, or his designee, or to a place no farther distant than his 
  home of record''.                                                       

                    SEC. 638. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY     
          MEMBERS TO ATTEND BURIAL OF A DECEASED MEMBER OF THE UNIFORMED SERVICES.
     (a) Consolidation of Authorities.--Section 411f of title 37, United  
  States Code, is amended to read as follows:                             

                    ``411f. Travel and transportation allowances: transportation  
          for survivors of deceased member to attend the member's burial          
          ceremonies                                                              
     ``(a) Allowances Authorized.--(1) The Secretary concerned may provide
  round trip travel and transportation allowances to eligible relatives of
  a member of the uniformed services who dies while on active duty or     
  inactive duty in order that the eligible relatives may attend the burial
  ceremony of the deceased member.                                        
     ``(2) The Secretary concerned may also provide round trip travel and 
  transportation allowances to an attendant who accompanies an eligible   
  relative provided travel and transportation allowances under paragraph  
  (1) for travel to the burial ceremony if the Secretary concerned        
  determines that--                                                       
       ``(A) the accompanied eligible relative is unable to travel         
   unattended because of age, physical condition, or other justifiable     
   reason; and                                                             
       ``(B) there is no other eligible relative of the deceased member    
   traveling to the burial ceremony who is eligible for travel and         
   transportation allowances under paragraph (1) and is qualified to serve 
   as the attendant.                                                       
     ``(b) Limitations.--(1) Except as provided in paragraphs (2) and (3),
  allowances under subsection (a) are limited to travel and transportation
  to a location in the United States, Puerto Rico, and the possessions of 
  the United States and may not exceed the rates for two days and the time
  necessary for such travel.                                              
     ``(2) If a deceased member was ordered or called to active duty from 
  a place outside the United States, Puerto Rico, or the possessions of   
  the United States, the allowances authorized under subsection (a) may be
  provided to and from such place and may not exceed the rates for two    
  days and the time necessary for such travel.                            
     ``(3) If a deceased member is interred in a cemetery maintained by   
  the American Battle Monuments Commission, the travel and transportation 
  allowances authorized under subsection (a) may be provided to and from  
  such cemetery and may not exceed the rates for two days and the time    
  necessary for such travel.                                              
     ``(c) Eligible Relatives.--(1) The following members of the family of
  a deceased member of the uniformed services are eligible for the travel 
  and transportation allowances under subsection (a)(1):                  
       ``(A) The surviving spouse (including a remarried surviving spouse) 
   of the deceased member.                                                 
       ``(B) The unmarried child or children of the deceased member        
   referred to in section 401(a)(2) of this title.                         
       ``(C) If no person described in subparagraph (A) or (B) is provided 
   travel and transportation allowances under subsection (a)(1), the parent
   or parents of the deceased member (as defined in section 401(b)(2) of   
   this title).                                                            
     ``(2) If no person described in paragraph (1) is provided travel and 
  transportation allowances under subsection (a)(1), the travel and       
  transportation allowances may be provided to--                          
       ``(A) the person who directs the disposition of the remains of the  
   deceased member under section 1482(c) of title 10, or, in the case of a 
   deceased member whose remains are commingled and buried in a common     
   grave in a national cemetery, the person who would have been designated 
   under such section to direct the disposition of the remains if          
   individual identification had been made; and                            
       ``(B) up to two additional persons closely related to the deceased  
   member who are selected by the person referred to in subparagraph (A).  
     ``(d) Expanded Allowances Related to Recovery of Remains From Vietnam
  Conflict.--(1) The Secretary of Defense may provide round trip travel   
  and transportation allowances for the family of a deceased member of the
  armed forces who died while classified as a prisoner of war or as       
  missing in action during the Vietnam conflict and whose remains are     
  returned to the United States in order that the family members may      
  attend the burial ceremony of the deceased member.                      
     ``(2) The allowances under paragraph (1) shall include round trip    
  transportation from the places of residence of such family members to   
  the burial ceremony and such living expenses and other allowances as the
  Secretary of Defense considers appropriate.                             
     ``(3) For purposes of paragraph (1), eligible family members of the  
  deceased member of the armed forces include the following:              
       ``(A) The surviving spouse (including a remarried surviving spouse) 
   of the deceased member.                                                 
       ``(B) The child or children, including children described in section
   401(b)(1) of this title, of the deceased member.                        
       ``(C) The parent or parents of the deceased member (as defined in   
   section 401(b)(2) of this title).                                       
       ``(D) If no person described in subparagraph (A), (B), or (C) is    
   provided travel and transportation allowances under paragraph (1), any  
   brothers, sisters, halfbrothers, halfsisters, stepbrothers, and         
   stepsisters of the deceased member.                                     
     ``(e) Burial Ceremony Defined.--In this section, the term `burial    
  ceremony' includes the following:                                       
     ``(1) An interment of casketed or cremated remains.                   

     ``(2) A placement of cremated remains in a columbarium.               

       ``(3) A memorial service for which reimbursement is authorized under
   section 1482(d)(2) of title 10.                                         
       ``(4) A burial of commingled remains that cannot be individually    
   identified in a common grave in a national cemetery.                    
     ``(f) Regulations.--The Secretaries concerned shall prescribe uniform
  regulations to carry out this section.''.                               
     (b) Repeal of Superseded Laws; Conforming Amendment.--(1) Section    
  1482 of title 10, United States Code, is amended by striking subsection 
  (d) and redesignating subsections (e), (f), and (g) as subsections (d), 
  (e), and (f), respectively.                                             
     (2) Section 1481(a)(9) of such title is amended by striking ``section
  1482(g)'' and inserting ``section 1482(f)''.                            
     (3) The Funeral Transportation and Living Expense Benefits Act of    
  1974 (Public Law 93 257; 37 U.S.C. 406 note) is repealed.               
     (c) Application of Amendment.--Section 411f of title 37, United      
  States Code, as amended by subsection (a), shall apply with respect to  
  burial ceremonies of deceased members of the uniformed services that    
  occur on or after the date of the enactment of this Act.                

                    SEC. 639. FUNDED STUDENT TRAVEL FOR FOREIGN STUDY UNDER AN    
          EDUCATION PROGRAM APPROVED BY A UNITED STATES SCHOOL.                   
     (a) Availability of Allowance.--Subsection (a) of section 430 of     
  title 37, United States Code, is amended to read as follows:            
     ``(a) Availability of Allowance.--(1) Under regulations prescribed by
  the Secretary of Defense, a member of a uniformed service may be paid   
  the allowance set forth in subsection (b) if the member--               
       ``(A) is assigned to a permanent duty station outside the           
   continental United States;                                              
       ``(B) is accompanied by the member's dependents at or near that duty
   station (unless the member's only dependents are in the category of     
   dependent described in paragraph (2)); and                              
     ``(C) has an eligible dependent child described in paragraph (2).     

     ``(2) An eligible dependent child of a member referred to in         
  paragraph (1)(C) is a child who--                                       
     ``(A) is under 23 years of age and unmarried;                         

       ``(B) is enrolled in a school in the continental United States for  
   the purpose of obtaining a formal education; and                        
       ``(C) is attending that school or is participating in a foreign     
   study program approved by that school and, pursuant to that foreign     
   study program, is attending a school outside the United States for a    
   period of not more than one year.''.                                    
     (b) Type of Allowance Authorized.--Subsection (b) of such section is 
  amended--                                                               
     (1) by inserting `` Allowance Authorized.--'' after ``(b)'';          

       (2) in the first sentence of paragraph (1), by striking ``each      
   unmarried dependent child,'' and all that follows through ``the school  
   being attended'' and inserting ``each eligible dependent child of the   
   member of one annual trip between the school being attended by that     
   child''; and                                                            
     (3) by adding at the end the following new paragraph:                 

     ``(3) The transportation allowance paid under paragraph (1) for an   
  annual trip of an eligible dependent child who is attending a school    
  outside the United States may not exceed the transportation allowance   
  that would be paid under this section for the annual trip of that child 
  between the child's school in the continental United States and the     
  member's duty station outside the continental United States and         
  return.''.                                                              
     (c) Clerical and Conforming Amendments.--Such section is further     
  amended--                                                               
       (1) in subsection (c), by inserting `` Use of Airlift and Sealift   
   Command.--'' after ``(c)'';                                             
     (2) in subsection (d)--                                               

       (A) by inserting `` Attendance at School in Alaska or Hawaii.--''   
   after ``(d)''; and                                                      
       (B) by striking ``subsection (a)(3)'' and inserting ``subsection    
   (a)(2)'';                                                               
       (3) in subsection (e), by inserting `` Exception.--'' after ``(e)'';
   and                                                                     
     (4) in subsection (f), by inserting `` Definitions.--'' after ``(f)''.

     (d) Application of Amendments.--The amendments made by this section  
  shall apply with respect to travel described in subsection (b) of       
  section 430 of title 37, United States Code, as amended by this section,
  that commences on or after the date of the enactment of this Act.       

           Subtitle D--Retirement and Survivor Benefit Matters                     


                    SEC. 641. CONTINGENT AUTHORITY FOR CONCURRENT RECEIPT OF      
          MILITARY RETIRED PAY AND VETERANS' DISABILITY COMPENSATION AND          
          ENHANCEMENT OF SPECIAL COMPENSATION AUTHORITY.                          
     (a) Restoration of Retired Pay Benefits.--Chapter 71 of title 10,    
  United States Code, is amended by adding at the end the following new   
  section:                                                                
                    ``1414. Members eligible for retired pay who have             
          service-connected disabilities: payment of retired pay and veterans'    
          disability compensation; contingent authority                           
     ``(a) Payment of Both Retired Pay and Compensation.--Subject to      
  subsection (b), a member or former member of the uniformed services who 
  is entitled to retired pay (other than as specified in subsection (c))  
  and who is also entitled to veterans' disability compensation is        
  entitled to be paid both without regard to sections 5304 and 5305 of    
  title 38, subject to the enactment of qualifying offsetting legislation 
  as specified in subsection (f).                                         
     ``(b) Special Rule for Chapter 61 Career Retirees.--The retired pay  
  of a member retired under chapter 61 of this title with 20 years or more
  of service otherwise creditable under section 1405 of this title at the 
  time of the member's retirement is subject to reduction under sections  
  5304 and 5305 of title 38, but only to the extent that the amount of the
  member's retired pay under chapter 61 of this title exceeds the amount  
  of retired pay to which the member would have been entitled under any   
  other provision of law based upon the member's service in the uniformed 
  services if the member had not been retired under chapter 61 of this    
  title.                                                                  
     ``(c) Exception.--Subsection (a) does not apply to a member retired  
  under chapter 61 of this title with less than 20 years of service       
  otherwise creditable under section 1405 of this title at the time of the
  member's retirement.                                                    
    ``(d)  Definitions.--In this section:                                 

       ``(1) The term `retired pay' includes retainer pay, emergency       
   officers' retirement pay, and naval pension.                            
       ``(2) The term `veterans' disability compensation' has the meaning  
   given the term `compensation' in section 101(12) of title 38.           
     ``(e) Effective Date.--If qualifying offsetting legislation (as      
  defined in subsection (f)) is enacted, the provisions of subsection (a) 
  shall take effect on--                                                  
       ``(1) the first day of the first month beginning after the date of  
   the enactment of such qualifying offsetting legislation; or             
       ``(2) the first day of the fiscal year that begins in the calendar  
   year in which such legislation is enacted, if that date is later than   
   the date specified in paragraph (1).                                    
     ``(f) Effectiveness Contingent on Enactment of Offsetting            
  Legislation.--(1) The provisions of subsection (a) shall be effective   
  only if--                                                               
       ``(A) the President, in the budget for any fiscal year, proposes the
   enactment of legislation that, if enacted, would be qualifying          
   offsetting legislation; and                                             
       ``(B) after that budget is submitted to Congress, there is enacted  
   qualifying offsetting legislation.                                      
    ``(2) In this subsection:                                             

       ``(A) The term `qualifying offsetting legislation' means legislation
   (other than an appropriations Act) that includes provisions that--      
       ``(i) offset fully the increased outlays to be made by reason of the
   provisions of subsection (a) for each of the first 10 fiscal years      
   beginning after the date of the enactment of such legislation;          
       ``(ii) expressly state that they are enacted for the purpose of the 
   offset described in clause (i); and                                     
     ``(iii) are included in full on the PayGo scorecard.                  

       ``(B) The term `PayGo scorecard' means the estimates that are made  
   by the Director of the Congressional Budget Office and the Director of  
   the Office of Management and Budget under section 252(d) of the Balanced
   Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)) with 
   respect to the ten fiscal years following the date of the enactment of  
   the legislation that is qualifying offsetting legislation for purposes  
   of this section.''.                                                     
     (b) Conforming Termination of Special Compensation Program.--Section 
  1413(a) of such title is amended by adding at the end the following new 
  sentence: ``If the provisions of subsection (a) of section 1414 of this 
  title become effective in accordance with subsection (f) of that        
  section, payments under this section shall be terminated effective as of
  the month beginning on the effective date specified in subsection (e) of
  that section.''.                                                        
     (c) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    


            ``1414. Members eligible for retired pay who have                 
      service-connected disabilities: payment of retired pay and veterans'    
      disability compensation; contingent authority.''.                       


     (d) Prohibition of Retroactive Benefits.--If the provisions of       
  subsection (a) of section 1414 of title 10, United States Code, becomes 
  effective in accordance with subsection (f) of that section, no benefit 
  may be paid to any person by reason of those provisions for any period  
  before the effective date specified in subsection (e) of that section.  
     (e) Enhancement of Special Compensation Authority.--(1) Subsection   
  (b) of section 1413 of title 10, United States Code, is amended by      
  striking paragraphs (1), (2), and (3) and inserting the following:      
       ``(1) For payments for months beginning with February 2002 and      
   ending with December 2002, the following:                               
       ``(A) For any month for which the retiree has a qualifying          
   service-connected disability rated as total, $300.                      
       ``(B) For any month for which the retiree has a qualifying          
   service-connected disability rated as 90 percent, $200.                 
       ``(C) For any month for which the retiree has a qualifying          
   service-connected disability rated as 80 percent or 70 percent, $100.   
       ``(D) For any month for which the retiree has a qualifying          
   service-connected disability rated as 60 percent, $50.                  
       ``(2) For payments for months beginning with January 2003 and ending
   with September 2004, the following:                                     
       ``(A) For any month for which the retiree has a qualifying          
   service-connected disability rated as total, $325.                      
       ``(B) For any month for which the retiree has a qualifying          
   service-connected disability rated as 90 percent, $225.                 
       ``(C) For any month for which the retiree has a qualifying          
   service-connected disability rated as 80 percent, $125.                 
       ``(D) For any month for which the retiree has a qualifying          
   service-connected disability rated as 70 percent, $100.                 
       ``(E) For any month for which the retiree has a qualifying          
   service-connected disability rated as 60 percent, $50.                  
     ``(3) For payments for months after September 2004, the following:    

       ``(A) For any month for which the retiree has a qualifying          
   service-connected disability rated as total, $350.                      
       ``(B) For any month for which the retiree has a qualifying          
   service-connected disability rated as 90 percent, $250.                 
       ``(C) For any month for which the retiree has a qualifying          
   service-connected disability rated as 80 percent, $150.                 
       ``(D) For any month for which the retiree has a qualifying          
   service-connected disability rated as 70 percent, $125.                 
       ``(E) For any month for which the retiree has a qualifying          
   service-connected disability rated as 60 percent, $50.''.               
     (2) Subsection (d)(2) of such section is amended by striking ``70    
  percent'' and inserting ``60 percent''.                                 
     (3) The amendments made by this subsection shall take effect on      
  February 1, 2002.                                                       

                    SEC. 642. SURVIVOR BENEFIT PLAN ANNUITIES FOR SURVIVING       
          SPOUSES OF MEMBERS WHO DIE WHILE ON ACTIVE DUTY AND NOT ELIGIBLE FOR    
          RETIREMENT.                                                             
     (a) Surviving Spouse Annuity.--Paragraph (1) of section 1448(d) of   
  title 10, United States Code, is amended to read as follows:            
       ``(1) Surviving spouse annuity.--The Secretary concerned shall pay  
   an annuity under this subchapter to the surviving spouse of--           
     ``(A) a member who dies while on active duty after--                  

     ``(i) becoming eligible to receive retired pay;                       

       ``(ii) qualifying for retired pay except that the member has not    
   applied for or been granted that pay; or                                
       ``(iii) completing 20 years of active service but before the member 
   is eligible to retire as a commissioned officer because the member has  
   not completed 10 years of active commissioned service; or               
       ``(B) a member not described in subparagraph (A) who dies in line of
   duty while on active duty.''.                                           
     (b) Computation of Annuity.--Section 1451(c)(1) of such title is     
  amended--                                                               
     (1) in subparagraph (A)--                                             

       (A) by striking ``based upon his years of active service when he    
   died.'' and inserting ``when he died determined as follows:             
       ``(i) In the case of an annuity provided under section 1448(d) of   
   this title (other than in a case covered by clause (ii)), such retired  
   pay shall be computed as if the member had been retired under section   
   1201 of this title on the date of the member's death with a disability  
   rated as total.                                                         
       ``(ii) In the case of an annuity provided under section             
   1448(d)(1)(A) of this title by reason of the death of a member not in   
   line of duty, such retired pay shall be computed based upon the member's
   years of active service when he died.                                   
       ``(iii) In the case of an annuity provided under section 1448(f) of 
   this title, such retired pay shall be computed based upon the member or 
   former member's years of active service when he died computed under     
   section 12733 of this title.''; and                                     
       (2) in subparagraph (B)(i), by striking ``if the member or former   
   member'' and all that follows and inserting ``as determined under       
   subparagraph (A).''.                                                    
     (c) Conforming Amendments.--(1) The heading for subsection (d) of    
  section 1448 of such title is amended by striking ``                    
  Retirement-Eligible''.                                                  
     (2) Subsection (c)(3) of section 1451 of such title is amended by    
  striking ``1448(d)(1)(B) or 1448(d)(1)(C)'' and inserting ``clause (ii) 
  or (iii) of section 1448(d)(1)(A)''.                                    
     (d) Effective Date.--The amendments made by this section shall take  
  effect as of September 10, 2001, and shall apply with respect to deaths 
  of members of the Armed Forces occurring on or after that date.         
           Subtitle E--Other Matters                                               


                    SEC. 651. PAYMENT FOR UNUSED LEAVE IN EXCESS OF 60 DAYS       
          ACCRUED BY MEMBERS OF RESERVE COMPONENTS ON ACTIVE DUTY FOR ONE YEAR OR 
          LESS.                                                                   
     (a) Eligibility.--Section 501(b)(5) of title 37, United States Code, 
  is amended by--                                                         
     (1) striking ``or'' at the end of subparagraph (B);                   

       (2) striking the period at the end of subparagraph (C) and inserting
   ``; or''; and                                                           

     (3) adding at the end the following new subparagraph:                 

       ``(D) by a member of a reserve component while serving on active    
   duty, full-time National Guard duty, or active duty for training for a  
   period of more than 30 days but not in excess of 365 days.''.           
     (b) Application of Amendment.--Subparagraph (D) of section 501(b)(5) 
  of title 37, United States Code, as added by subsection (a)(3), shall   
  apply with respect to periods of active duty beginning on or after      
  October 1, 2001.                                                        

                    SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR      
          FAMILIES OF MEMBERS OF THE ARMED FORCES.                                
     (a) Authority.--During fiscal year 2002, the Secretary of Defense may
  provide assistance for families of members of the Armed Forces serving  
  on active duty in order to ensure that the children of such members     
  obtain needed child care, education, and other youth services.          
     (b) Primary Purpose of Assistance.--The assistance authorized by this
  section should be directed primarily toward providing needed family     
  support, including child care, education, and other youth services, for 
  children of members of the Armed Forces who are deployed, assigned to   
  duty, or ordered to active duty in connection with the contingency      
  operation known as Operation Enduring Freedom.                          

                    SEC. 653. AUTHORIZATION OF TRANSITIONAL COMPENSATION AND      
          COMMISSARY AND EXCHANGE BENEFITS FOR DEPENDENTS OF COMMISSIONED OFFICERS
          OF THE PUBLIC HEALTH SERVICE AND THE NATIONAL OCEANIC AND ATMOSPHERIC   
          ADMINISTRATION WHO ARE SEPARATED FOR DEPENDENT ABUSE.                   
     (a) Commissioned Officers of the Public Health Service.--Section     
  221(a) of the Public Health Service Act (42 U.S.C. 213a(a)) is amended  
  by adding at the end the following new paragraph:                       
       ``(17) Section 1059, Transitional compensation and commissary and   
   exchange benefits for dependents of members separated for dependent     
   abuse.''.                                                               
     (b) Commissioned Officers of the National Oceanic and Atmospheric    
  Administration.--Section 3(a) of the Act entitled ``An Act to revise,   
  codify, and enact into law, title 10 of the United States Code, entitled
  `Armed Forces', and title 32 of the United States Code, entitled        
  `National Guard''', approved August 10, 1956 (33 U.S.C. 857a(a)), is    
  amended by adding at the end the following new paragraph:               
       ``(17) Section 1059, Transitional compensation and commissary and   
   exchange benefits for dependents of members separated for dependent     
   abuse.''.                                                               

                    SEC. 654. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE   
          UNDER MONTGOMERY GI BILL BY MEMBERS OF THE ARMED FORCES WITH CRITICAL   
          MILITARY SKILLS.                                                        
     (a) Authority To Transfer to Family Members.--(1) Subchapter II of   
  chapter 30 of title 38, United States Code, is amended by adding at the 
  end the following new section:                                          
                    ``3020. Transfer of entitlement to basic educational          
          assistance: members of the Armed Forces with critical military skills   
     ``(a) In General.--Subject to the provisions of this section, each   
  Secretary concerned may, for the purpose of enhancing recruitment and   
  retention of members of the Armed Forces with critical military skills  
  and at such Secretary's sole discretion, permit an individual described 
  in subsection (b) who is entitled to basic educational assistance under 
  this subchapter to elect to transfer to one or more of the dependents   
  specified in subsection (c) a portion of such individual's entitlement  
  to such assistance, subject to the limitation under subsection (d).     
     ``(b) Eligible Individuals.--An individual referred to in subsection 
  (a) is any member of the Armed Forces who, at the time of the approval  
  by the Secretary concerned of the member's request to transfer          
  entitlement to basic educational assistance under this section--        
     ``(1) has completed six years of service in the Armed Forces;         

     ``(2) either--                                                        

       ``(A) has a critical military skill designated by the Secretary     
   concerned for purposes of this section; or                              
       ``(B) is in a military specialty designated by the Secretary        
   concerned for purposes of this section as requiring critical military   
   skills; and                                                             
       ``(3) enters into an agreement to serve at least four more years as 
   a member of the Armed Forces.                                           
     ``(c) Eligible Dependents.--An individual approved to transfer an    
  entitlement to basic educational assistance under this section may      
  transfer the individual's entitlement as follows:                       
     ``(1) To the individual's spouse.                                     

     ``(2) To one or more of the individual's children.                    

       ``(3) To a combination of the individuals referred to in paragraphs 
   (1) and (2).                                                            
     ``(d) Limitation on Months of Transfer.--The total number of months  
  of entitlement transferred by an individual under this section may not  
  exceed 18 months.                                                       
     ``(e) Designation of Transferee.--An individual transferring an      
  entitlement to basic educational assistance under this section shall--  
       ``(1) designate the dependent or dependents to whom such entitlement
   is being transferred;                                                   
       ``(2) designate the number of months of such entitlement to be      
   transferred to each such dependent; and                                 
       ``(3) specify the period for which the transfer shall be effective  
   for each dependent designated under paragraph (1).                      
     ``(f) Time for Transfer; Revocation and Modification.--(1) Subject to
  the time limitation for use of entitlement under section 3031 of this   
  title, an individual approved to transfer entitlement to basic          
  educational assistance under this section may transfer such entitlement 
  at any time after the approval of the individual's request to transfer  
  such entitlement without regard to whether the individual is a member of
  the Armed Forces when the transfer is executed.                         
     ``(2)(A) An individual transferring entitlement under this section   
  may modify or revoke at any time the transfer of any unused portion of  
  the entitlement so transferred.                                         
     ``(B) The modification or revocation of the transfer of entitlement  
  under this paragraph shall be made by the submittal of written notice of
  the action to both the Secretary concerned and the Secretary of Veterans
  Affairs.                                                                
     ``(g) Commencement of Use.--A dependent to whom entitlement to basic 
  educational assistance is transferred under this section may not        
  commence the use of the transferred entitlement until--                 
       ``(1) in the case of entitlement transferred to a spouse, the       
   completion by the individual making the transfer of six years of service
   in the Armed Forces; or                                                 
     ``(2) in the case of entitlement transferred to a child, both--       

       ``(A) the completion by the individual making the transfer of 10    
   years of service in the Armed Forces; and                               
     ``(B) either--                                                        

       ``(i) the completion by the child of the requirements of a secondary
   school diploma (or equivalency certificate); or                         
     ``(ii) the attainment by the child of 18 years of age.                

     ``(h) Additional Administrative Matters.--(1) The use of any         
  entitlement to basic educational assistance transferred under this      
  section shall be charged against the entitlement of the individual      
  making the transfer at the rate of one month for each month of          
  transferred entitlement that is used.                                   
     ``(2) Except as provided under subsection (e)(2) and subject to      
  paragraphs (4) and (5), a dependent to whom entitlement is transferred  
  under this section is entitled to basic educational assistance under    
  this subchapter in the same manner and at the same rate as the          
  individual from whom the entitlement was transferred.                   
     ``(3) The death of an individual transferring an entitlement under   
  this section shall not affect the use of the entitlement by the         
  dependent to whom the entitlement is transferred.                       
     ``(4) Notwithstanding section 3031 of this title, a child to whom    
  entitlement is transferred under this section may not use any           
  entitlement so transferred after attaining the age of 26 years.         
     ``(5) The administrative provisions of this chapter (including the   
  provisions set forth in section 3034(a)(1) of this title) shall apply to
  the use of entitlement transferred under this section, except that the  
  dependent to whom the entitlement is transferred shall be treated as the
  eligible veteran for purposes of such provisions.                       
     ``(6) The purposes for which a dependent to whom entitlement is      
  transferred under this section may use such entitlement shall include   
  the pursuit and completion of the requirements of a secondary school    
  diploma (or equivalency certificate).                                   
     ``(i) Overpayment.--(1) In the event of an overpayment of basic      
  educational assistance with respect to a dependent to whom entitlement  
  is transferred under this section, the dependent and the individual     
  making the transfer shall be jointly and severally liable to the United 
  States for the amount of the overpayment for purposes of section 3685 of
  this title.                                                             
     ``(2) Except as provided in paragraph (3), if an individual          
  transferring entitlement under this section fails to complete the       
  service agreed to by the individual under subsection (b)(3) in          
  accordance with the terms of the agreement of the individual under that 
  subsection, the amount of any transferred entitlement under this section
  that is used by a dependent of the individual as of the date of such    
  failure shall be treated as an overpayment of basic educational         
  assistance under paragraph (1).                                         
     ``(3) Paragraph (2) shall not apply in the case of an individual who 
  fails to complete service agreed to by the individual--                 
     ``(A) by reason of the death of the individual; or                    


       ``(B) for a reason referred to in section 3011(a)(1)(A)(ii)(I) of   
   this title.                                                             
     ``(j) Approvals of Transfer Subject to Availability of               
  Appropriations.--The Secretary concerned may approve transfers of       
  entitlement to basic educational assistance under this section in a     
  fiscal year only to the extent that appropriations for military         
  personnel are available in that fiscal year for purposes of making      
  deposits in the Department of Defense Education Benefits Fund under     
  section 2006 of title 10 in that fiscal year to cover the present value 
  of future benefits payable from the Fund for the Department of Defense  
  portion of payments of basic educational assistance attributable to     
  increased usage of benefits as a result of such transfers of entitlement
  in that fiscal year.                                                    
     ``(k) Regulations.--The Secretary of Defense shall prescribe         
  regulations for purposes of this section. Such regulations shall specify
  the manner and effect of an election to modify or revoke a transfer of  
  entitlement under subsection (f)(2) and shall specify the manner of the 
  applicability of the administrative provisions referred to in subsection
  (h)(5) to a dependent to whom entitlement is transferred under this     
  section.                                                                
     ``(l) Annual Report.--(1) Not later than January 31 each year        
  (beginning in 2003), the Secretary of Defense shall submit to the       
  Committees on Armed Services and the Committees on Veterans' Affairs of 
  the Senate and House of Representatives a report on the transfers of    
  entitlement to basic educational assistance under this section that were
  approved by each Secretary concerned during the preceding fiscal year.  
    ``(2) Each report shall set forth--                                   

       ``(A) the number of transfers of entitlement under this section that
   were approved by such Secretary during the preceding fiscal year; or    
       ``(B) if no transfers of entitlement under this section were        
   approved by such Secretary during that fiscal year, a justification for 
   such Secretary's decision not to approve any such transfers of          
   entitlement during that fiscal year.                                    
     ``(m) Secretary Concerned Defined.--Notwithstanding section 101(25)  
  of this title, in this section, the term `Secretary concerned' means--  
       ``(1) the Secretary of the Army with respect to matters concerning  
   the Army;                                                               
       ``(2) the Secretary of the Navy with respect to matters concerning  
   the Navy or the Marine Corps;                                           
       ``(3) the Secretary of the Air Force with respect to matters        
   concerning the Air Force; and                                           
       ``(4) the Secretary of the Defense with respect to matters          
   concerning the Coast Guard, or the Secretary of Transportation when it  
   is not operating as a service in the Navy.''.                           
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 3019 the following new  
  item:                                                                   


            ``3020. Transfer of entitlement to basic educational assistance:  
      members of the Armed Forces with critical military skills.''.           


     (b) Treatment Under Department of Defense Education Benefits         
  Fund.--Section 2006(b)(2) of title 10, United States Code, is amended by
  adding at the end the following new subparagraph:                       
       ``(D) The present value of future benefits payable from the Fund for
   the Department of Defense portion of payments of educational assistance 
   under subchapter II of chapter 30 of title 38 attributable to increased 
   usage of benefits as a result of transfers of entitlement to basic      
   educational assistance under section 3020 of that title during such     
   period.''.                                                              
     (c) Plan for Implementation.--Not later than June 30, 2002, the      
  Secretary of Defense shall submit to Congress a report describing the   
  manner in which the Secretaries of the military departments and the     
  Secretary of Transportation propose to exercise the authority granted by
  section 3020 of title 38, United States Code, as added by subsection    
  (a). The report shall include the regulations prescribed under          
  subsection (k) of that section for purposes of the exercise of the      
  authority.                                                              
     (d) Funding for Fiscal Year 2002.--Of the amount authorized to be    
  appropriated to the Department of Defense for military personnel for    
  fiscal year 2002 by section 421, $30,000,000 may be available in fiscal 
  year 2002 for deposit into the Department of Defense Education Benefits 
  Fund under section 2006 of title 10, United States Code, for purposes of
  covering payments of amounts under subparagraph (D) of section          
  2006(b)(2) of such title (as added by subsection (b)), as a result of   
  transfers of entitlement to basic educational assistance under section  
  3020 of title 38, United States Code (as added by subsection (a)).      

           TITLE VII--HEALTH CARE PROVISIONS                                       


                          SUBTITLE A--TRICARE PROGRAM IMPROVEMENTS                

      Sec. 701. Sub-acute and long-term care program reform.                  

      Sec. 702. Prosthetics and hearing aids.                                 

      Sec. 703. Durable medical equipment.                                    

      Sec. 704. Rehabilitative therapy.                                       

      Sec. 705. Report on mental health benefits.                             

            Sec. 706. Clarification of eligibility for reimbursement of travel
      expenses of adult accompanying patient in travel for specialty care.    
            Sec. 707. TRICARE program limitations on payment rates for        
      institutional health care providers and on balance billing by           
      institutional and noninstitutional health care providers.               
      Sec. 708. Improvements in administration of the TRICARE program.        

                               SUBTITLE B--SENIOR HEALTH CARE                     

            Sec. 711. Clarifications and improvements regarding the Department
      of Defense Medicare-Eligible Retiree Health Care Fund.                  
                               SUBTITLE C--STUDIES AND REPORTS                    

            Sec. 721. Comptroller General study of health care coverage of    
      members of the reserve components of the Armed Forces and the National  
      Guard.                                                                  
            Sec. 722. Comptroller General study of adequacy and quality of    
      health care provided to women under the defense health program.         
      Sec. 723. Repeal of obsolete report requirement.                        

            Sec. 724. Comptroller General report on requirement to provide    
      screenings, physical examinations, and other care for certain members.  
                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 731. Prohibition against requiring military retirees to      
      receive health care solely through the Department of Defense.           
      Sec. 732. Fees for trauma and other medical care provided to civilians. 

      Sec. 733. Enhancement of medical product development.                   

            Sec. 734. Pilot program providing for Department of Veterans      
      Affairs support in the performance of separation physical examinations. 
            Sec. 735. Modification of prohibition on requirement of           
      nonavailability statement or preauthorization.                          
            Sec. 736. Transitional health care for members separated from     
      active duty.                                                            
            Sec. 737. Two-year extension of health care management            
      demonstration program.                                                  
            Sec. 738. Joint DoD-VA pilot program for providing graduate       
      medical education and training for physicians.                          

           Subtitle A--TRICARE Program Improvements                                

          SEC. 701. SUB-ACUTE AND LONG-TERM CARE PROGRAM REFORM.                  

     (a) In General.--(1) Chapter 55 of title 10, United States Code, is  
  amended by inserting after section 1074i the following new section:     
          ``1074j. Sub-acute care program                                         

     ``(a) Establishment.--The Secretary of Defense shall establish an    
  effective, efficient, and integrated sub-acute care benefits program    
  under this chapter (hereinafter referred to in this section as the      
  `program'). Except as otherwise provided in this section, the types of  
  health care authorized under the program shall be the same as those     
  provided under section 1079 of this title. The Secretary, after         
  consultation with the other administering Secretaries, shall promulgate 
  regulations to carry out this section.                                  
     ``(b) Benefits.--(1) The program shall include a uniform skilled     
  nursing facility benefit that shall be provided in the manner and under 
  the conditions described in section 1861(h) and (i) of the Social       
  Security Act (42 U.S.C. 1395x(h) and (i)), except that the limitation on
  the number of days of coverage under section 1812(a) and (b) of such Act
  (42 U.S.C. 1395d(a) and (b)) shall not be applicable under the program. 
  Skilled nursing facility care for each spell of illness shall continue  
  to be provided for as long as medically necessary and appropriate.      
    ``(2) In this subsection:                                             

       ``(A) The term `skilled nursing facility' has the meaning given such
   term in section 1819(a) of the Social Security Act (42 U.S.C. 1395i     
   3(a)).                                                                  
       ``(B) The term `spell of illness' has the meaning given such term in
   section 1861(a) of such Act (42 U.S.C. 1395x(a)).                       
     ``(3) The program shall include a comprehensive, part-time or        
  intermittent home health care benefit that shall be provided in the     
  manner and under the conditions described in section 1861(m) of the     
  Social Security Act (42 U.S.C. 1395x(m)).''.                            
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 1074i the following new 
  item:                                                                   


      ``1074j. Sub-acute care program.''.                                     



     (b) Extended Benefits for Disabled Beneficiaries.--Section 1079 of   
  title 10, United States Code, is amended by striking subsections (d),   
  (e), and (f) and inserting the following new subsections:               
     ``(d)(1) The Secretary of Defense shall establish a program to       
  provide extended benefits for eligible dependents, which may include the
  provision of comprehensive health care services, including case         
  management services, to assist in the reduction of the disabling effects
  of a qualifying condition of an eligible dependent. Registration shall  
  be required to receive the extended benefits.                           
     ``(2) The Secretary of Defense, after consultation with the other    
  administering Secretaries, shall promulgate regulations to carry out    
  this subsection.                                                        
    ``(3) In this subsection:                                             

       ``(A) The term `eligible dependent' means a dependent of a member of
   the uniformed services on active duty for a period of more than 30 days,
   as described in subparagraph (A), (D), or (I) of section 1072(2) of this
   title, who has a qualifying condition.                                  
       ``(B) The term `qualifying condition' means the condition of a      
   dependent who is moderately or severely mentally retarded, has a serious
   physical disability, or has an extraordinary physical or psychological  
   condition.                                                              
     ``(e) Extended benefits for eligible dependents under subsection (d) 
  may include comprehensive health care services (including services      
  necessary to maintain, or minimize or prevent deterioration of, function
  of the patient) and case management services with respect to the        
  qualifying condition of such a dependent, and include, to the extent    
  such benefits are not provided under provisions of this chapter other   
  than under this section, the following:                                 
     ``(1) Diagnosis.                                                      

       ``(2) Inpatient, outpatient, and comprehensive home health care     
   supplies and services which may include cost effective and medically    
   appropriate services other than part-time or intermittent services      
   (within the meaning of such terms as used in the second sentence of     
   section 1861(m) of the Social Security Act).                            

       ``(3) Training, rehabilitation, special education, and assistive    
   technology devices.                                                     
       ``(4) Institutional care in private nonprofit, public, and State    
   institutions and facilities and, if appropriate, transportation to and  
   from such institutions and facilities.                                  
       ``(5) Custodial care, notwithstanding the prohibition in section    
   1077(b)(1) of this title.                                               
       ``(6) Respite care for the primary caregiver of the eligible        
   dependent.                                                              
       ``(7) Such other services and supplies as determined appropriate by 
   the Secretary, notwithstanding the limitations in subsection (a)(13).   
     ``(f)(1) Members shall be required to share in the cost of any       
  benefits provided to their dependents under subsection (d) as follows:  
       ``(A) Members in the lowest enlisted pay grade shall be required to 
   pay the first $25 incurred each month, and members in the highest       
   commissioned pay grade shall be required to pay the first $250 incurred 
   each month. The amounts to be paid by members in all other pay grades   
   shall be determined under regulations to be prescribed by the Secretary 
   of Defense in consultation with the administering Secretaries.          
       ``(B) A member who has more than one dependent incurring expenses in
   a given month under a plan covered by subsection (d) shall not be       
   required to pay an amount greater than would be required if the member  
   had only one such dependent.                                            
     ``(2) In the case of extended benefits provided under paragraph (3)  
  or (4) of subsection (e) to a dependent of a member of the uniformed    
  services--                                                              
       ``(A) the Government's share of the total cost of providing such    
   benefits in any month shall not exceed $2,500, except for costs that a  
   member is exempt from paying under paragraph (3); and                   
       ``(B) the member shall pay (in addition to any amount payable under 
   paragraph (1)) the amount, if any, by which the amount of such total    
   cost for the month exceeds the Government's maximum share under         
   subparagraph (A).                                                       
     ``(3) A member of the uniformed services who incurs expenses under   
  paragraph (2) for a month for more than one dependent shall not be      
  required to pay for the month under subparagraph (B) of that paragraph  
  an amount greater than the amount the member would otherwise be required
  to pay under that subparagraph for the month if the member were         
  incurring expenses under that subparagraph for only one dependent.      
     ``(4) To qualify for extended benefits under paragraph (3) or (4) of 
  subsection (e), a dependent of a member of the uniformed services shall 
  be required to use public facilities to the extent such facilities are  
  available and adequate, as determined under joint regulations of the    
  administering Secretaries.                                              
     ``(5) The Secretary of Defense, in consultation with the other       
  administering Secretaries, shall prescribe regulations to carry out this
  subsection.''.                                                          
     (c) Definitions of Custodial Care and Domiciliary Care.--Section 1072
  of title 10, United States Code, is amended by adding at the end the    
  following new paragraphs:                                               
       ``(8) The term `custodial care' means treatment or services,        
   regardless of who recommends such treatment or services or where such   
   treatment or services are provided, that--                              
       ``(A) can be rendered safely and reasonably by a person who is not  
   medically skilled; or                                                   
       ``(B) is or are designed mainly to help the patient with the        
   activities of daily living.                                             
       ``(9) The term `domiciliary care' means care provided to a patient  
   in an institution or homelike environment because--                     
       ``(A) providing support for the activities of daily living in the   
   home is not available or is unsuitable; or                              
       ``(B) members of the patient's family are unwilling to provide the  
   care.''.                                                                
     (d) Continuation of Individual Case Management Services for Certain  
  Eligible Beneficiaries.--(1) Notwithstanding the termination of the     
  Individual Case Management Program by subsection (g), the Secretary of  
  Defense shall, in any case in which the Secretary makes the             
  determination described in paragraph (2), continue to provide payment as
  if such program were in effect for home health care or custodial care   
  services provided to an eligible beneficiary that would otherwise be    
  excluded from coverage under regulations implementing chapter 55 of     
  title 10, United States Code.                                           
     (2) The determination referred to in paragraph (1) is a determination
  that discontinuation of payment for services not otherwise provided     
  under such chapter would result in the provision of services inadequate 
  to meet the needs of the eligible beneficiary and would be unjust to    
  such beneficiary.                                                       
     (3) For purposes of this subsection, ``eligible beneficiary'' means a
  covered beneficiary (as that term is defined in section 1072 of title   
  10, United States Code) who, before the effective date of this section, 
  was provided custodial care services under the Individual Case          
  Management Program for which the Secretary provided payment.            
     (e) Report on Initiatives Regarding Long-Term Care.--The Secretary of
  Defense shall, not later than April 1, 2002, submit to Congress a report
  on the feasibility and desirability of establishing new initiatives,    
  taking into account chapter 90 of title 5, United States Code, to       
  improve the availability of long-term care for members and retired      
  members of the uniformed services and their families.                   
     (f) Reference in Title 10 to Long-Term Care Program in Title 5.--(1) 
  Chapter 55 of title 10, United States Code, is amended by inserting     
  after section 1074j (as added by subsection (a)) the following new      
  section:                                                                
          ``1074k.  Long-term care insurance                                      

     ``Provisions regarding long-term care insurance for members and      
  certain former members of the uniformed services and their families are 
  set forth in chapter 90 of title 5.''.                                  
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 1074j (as added by      
  subsection (a)) the following new item:                                 


      ``1074k.  Long-term care insurance.''.                                  



     (g) Conforming Amendments.--(1) The following provisions of law are  
  repealed:                                                               
       (A) Section 703 of the National Defense Authorization Act for Fiscal
   Year 2000 (Public Law 106 65; 113 Stat. 682; 10 U.S.C. 1077 note).      
       (B) Section 8118 of the Department of Defense Appropriations Act,   
   2000 (Public Law 106 79; 113 Stat. 1260).                               
       (C) Section 8100 of the Department of Defense Appropriations Act,   
   2001 (Public Law 106 259; 114 Stat. 696).                               
     (2) Section 1079 of title 10, United States Code, is amended in      
  subsection (a) by striking paragraph (17).                              
          SEC. 702. PROSTHETICS AND HEARING AIDS.                                 

    Section 1077 of title 10 United States Code, is amended--             

     (1) in subsection (a), by adding at the end the following:            

       ``(16) A hearing aid, but only for a dependent of a member of the   
   uniformed services on active duty and only if the dependent has a       
   profound hearing loss, as determined under standards prescribed in      
   regulations by the Secretary of Defense in consultation with the        
   administering Secretaries.'';                                           
       (2) in subsection (b)(2), by striking ``Hearing aids, orthopedic    
   footwear,'' and inserting ``Orthopedic footwear''; and                  
     (3) by adding at the end the following new subsection:                

     ``(e)(1) Authority to provide a prosthetic device under subsection   
  (a)(15) includes authority to provide the following:                    
       ``(A) Any accessory or item of supply that is used in conjunction   
   with the device for the purpose of achieving therapeutic benefit and    
   proper functioning.                                                     
       ``(B) Services necessary to train the recipient of the device in the
   use of the device.                                                      
     ``(C) Repair of the device for normal wear and tear or damage.        

       ``(D) Replacement of the device if the device is lost or irreparably
   damaged or the cost of repair would exceed 60 percent of the cost of    
   replacement.                                                            
     ``(2) An augmentative communication device may be provided as a voice
  prosthesis under subsection (a)(15).                                    
     ``(3) A prosthetic device customized for a patient may be provided   
  under this section only by a prosthetic practitioner who is qualified to
  customize the device, as determined under regulations prescribed by the 
  Secretary of Defense in consultation with the administering             
  Secretaries.''.                                                         
          SEC. 703. DURABLE MEDICAL EQUIPMENT.                                    

     (a) Items Authorized.--Section 1077 of title 10, United States Code, 
  as amended by section 702, is further amended--                         
       (1) in subsection (a)(12), by striking ``such as wheelchairs, iron  
   lungs, and hospital beds'' and inserting ``which''; and                 
     (2) by adding at the end the following new subsection:                

     ``(f)(1) Items that may be provided to a patient under subsection    
  (a)(12) include the following:                                          
       ``(A) Any durable medical equipment that can improve, restore, or   
   maintain the function of a malformed, diseased, or injured body part, or
   can otherwise minimize or prevent the deterioration of the patient's    
   function or condition.                                                  
       ``(B) Any durable medical equipment that can maximize the patient's 
   function consistent with the patient's physiological or medical needs.  
     ``(C) Wheelchairs.                                                    

     ``(D) Iron lungs.                                                     

     ``(E) Hospital beds.                                                  

     ``(2) In addition to the authority to provide durable medical        
  equipment under subsection (a)(12), any customization of equipment owned
  by the patient that is durable medical equipment authorized to be       
  provided to the patient under this section or section 1079(a)(5) of this
  title, and any accessory or item of supply for any such equipment, may  
  be provided to the patient if the customization, accessory, or item of  
  supply is essential for--                                               
     ``(A) achieving therapeutic benefit for the patient;                  

     ``(B) making the equipment serviceable; or                            

     ``(C) otherwise assuring the proper functioning of the equipment.''.  

     (b) Provision of Items on Rental Basis.--Paragraph (5) of section    
  1079(a) of such title is amended to read as follows:                    
       ``(5) Durable equipment provided under this section may be provided 
   on a rental basis.''.                                                   
          SEC. 704. REHABILITATIVE THERAPY.                                       

     Section 1077(a) of title 10, United States Code, as amended by       
  sections 702 and 703, is further amended by inserting after paragraph   
  (16) the following new paragraph:                                       
       ``(17) Any rehabilitative therapy to improve, restore, or maintain  
   function, or to minimize or prevent deterioration of function, of a     
   patient when prescribed by a physician.''.                              

          SEC. 705. REPORT ON MENTAL HEALTH BENEFITS.                             

     (a) Requirement for Study.--The Secretary of Defense shall carry out 
  a study to determine the adequacy of the scope and availability of      
  outpatient mental health benefits provided for members of the Armed     
  Forces and covered beneficiaries under the TRICARE program.             
     (b) Report.--Not later than March 31, 2002, the Secretary shall      
  submit to the Committees on Armed Services of the Senate and the House  
  of Representatives a report on the study, including the conclusions and 
  any recommendations for legislation that the Secretary considers        
  appropriate.                                                            

                    SEC. 706. CLARIFICATION OF ELIGIBILITY FOR REIMBURSEMENT OF   
          TRAVEL EXPENSES OF ADULT ACCOMPANYING PATIENT IN TRAVEL FOR SPECIALTY   
          CARE.                                                                   
     Section 1074i of title 10, United States Code, is amended by         
  inserting before the period at the end the following: ``and, when       
  accompaniment by an adult is necessary, for a parent or guardian of the 
  covered beneficiary or another member of the covered beneficiary's      
  family who is at least 21 years of age''.                               
                    SEC. 707. TRICARE PROGRAM LIMITATIONS ON PAYMENT RATES FOR    
          INSTITUTIONAL HEALTH CARE PROVIDERS AND ON BALANCE BILLING BY           
          INSTITUTIONAL AND NONINSTITUTIONAL HEALTH CARE PROVIDERS.               
     (a) Institutional Providers.--Section 1079(j) of title 10, United    
  States Code, is amended--                                               
     (1) in paragraph (2)(A)--                                             

     (A) by striking ``(A)''; and                                          

       (B) by striking ``may be determined under joint regulations'' and   
   inserting ``shall be determined under joint regulations'';              
       (2) by redesignating subparagraph (B) of paragraph (2) as paragraph 
   (4), and, in such paragraph, as so redesignated, by striking            
   ``subparagraph (A),'' and inserting ``this subsection,''; and           
       (3) by inserting before paragraph (4), as redesignated by paragraph 
   (2), the following new paragraph (3):                                   
     ``(3) A contract for a plan covered by this section shall include a  
  clause that prohibits each provider of services under the plan from     
  billing any person covered by the plan for any balance of charges for   
  services in excess of the amount paid for those services under the joint
  regulations referred to in paragraph (2), except for any unpaid amounts 
  of deductibles or copayments that are payable directly to the provider  
  by the person.''.                                                       
     (b) Noninstitutional Providers.--Section 1079(h)(4) of such title is 
  amended--                                                               
     (1) by inserting ``(A)'' after ``(4)''; and                           

     (2) by adding at the end the following new subparagraph:              

     ``(B) The regulations shall include a restriction that prohibits an  
  individual health care professional (or other noninstitutional health   
  care provider) from billing a beneficiary for services for more than the
  amount that is equal to--                                               
       ``(i) the excess of the limiting charge (as defined in section      
   1848(g)(2) of the Social Security Act (42 U.S.C. 1395w 4(g)(2))) that   
   would be applicable if the services had been provided by the            
   professional (or other provider) as an individual health care           
   professional (or other noninstitutional health care provider) on a      
   nonassignment-related basis under part B of title XVIII of such Act over
   the amount that is payable by the United States for those services under
   this subsection, plus                                                   
       ``(ii) any unpaid amounts of deductibles or copayments that are     
   payable directly to the professional (or other provider) by the         
   beneficiary.''.                                                         
     (c) Effective Date.--The amendments made by this section shall take  
  effect on the date that is 90 days after the date of the enactment of   
  this Act.                                                               
          SEC. 708. IMPROVEMENTS IN ADMINISTRATION OF THE TRICARE PROGRAM.        

     (a) Flexibility in Contracting.--(1) During the one-year period      
  following the date of the enactment of this Act, section 1072(7) of     
  title 10, United States Code, shall be deemed to be amended by striking 
  ``the competitive selection of contractors to financially underwrite''. 
     (2) The terms and conditions of any contract to provide health care  
  services under the TRICARE program entered into during the period       
  described in paragraph (1) shall not be considered to be modified or    
  terminated as a result of the termination of such period.               
     (b) Reduction of Contract Start-Up Time.--Section 1095c(b) of such   
  title is amended--                                                      
     (1) in paragraph (1)--                                                

       (A) by striking ``The'' and inserting ``Except as provided in       
   paragraph (3), the''; and                                               
       (B) by striking ``contract.'' and all that follows through ``as soon
   as practicable after the award of the''; and                            
     (2) by adding at the end the following new paragraph:                 

     ``(3) The Secretary may reduce the nine-month start-up period        
  required under paragraph (1) if--                                       
     ``(A) the Secretary--                                                 

       ``(i) determines that a shorter period is sufficient to ensure      
   effective implementation of all contract requirements; and              
       ``(ii) submits notification to the Committees on Armed Services of  
   the House of Representatives and the Senate of the Secretary's intent to
   reduce the nine-month start-up period; and                              
     ``(B) 60 days have elapsed since the date of such notification.''.    

           Subtitle B--Senior Health Care                                          

                    SEC. 711. CLARIFICATIONS AND IMPROVEMENTS REGARDING THE       
          DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND.       
     (a) Clarification Regarding Coverage.--Subsection (b) of section 1111
  of title 10, United States Code, is amended to read as follows:         
    ``(b) In this chapter:                                                

       ``(1) The term `uniformed services retiree health care programs'    
   means the provisions of this title or any other provision of law        
   creating an entitlement to or eligibility for health care for a member  
   or former member of a participating uniformed service who is entitled to
   retired or retainer pay, and an eligible dependent under such program.  
       ``(2) The term `eligible dependent' means a dependent described in  
   section 1076(a)(2) (other than a dependent of a member on active duty), 
   1076(b), 1086(c)(2), or 1086(c)(3) of this title.                       
       ``(3) The term `medicare-eligible', with respect to any person,     
   means entitled to benefits under part A of title XVIII of the Social    
   Security Act (42 U.S.C. 1395c et seq.).                                 
       ``(4) The term `participating uniformed service' means the Army,    
   Navy, Air Force, and Marine Corps, and any other uniformed service that 
   is covered by an agreement entered into under subsection (c).''.        
     (b) Participation of Other Uniformed Services.--(1) Section 1111 of  
  such title is further amended by adding at the end the following new    
  subsection:                                                             
     ``(c) The Secretary of Defense may enter into an agreement with any  
  other administering Secretary (as defined in section 1072(3) of this    
  title) for participation in the Fund by a uniformed service under the   
  jurisdiction of that Secretary. Any such agreement shall require that   
  Secretary to determine contributions to the Fund on behalf of the       
  members of the uniformed service under the jurisdiction of that         
  Secretary in a manner comparable to the determination with respect to   
  contributions to the Fund made by the Secretary of Defense under section
  1116 of this title, and such administering Secretary may make such      
  contributions.''.                                                       
     (2) Section 1112 of such title is amended by adding at the end the   
  following new paragraph:                                                
       ``(4) Amounts paid into the Fund pursuant to section 1111(c) of this
   title.''.                                                               
    (3) Section 1115 of such title is amended--                           

       (A) in subsection (a), by inserting ``participating'' before        
   ``uniformed services'';                                                 
       (B) in subparagraphs (A)(ii) and (B)(ii) of subsection (b)(1), by   
   inserting ``under the jurisdiction of the Secretary of Defense'' after  
   ``uniformed services'';                                                 
       (C) in subsection (b)(2), by inserting ``(or to the other executive 
   department having jurisdiction over the participating uniformed         
   service)'' after ``Department of Defense''; and                         

       (D) in subparagraphs (A) and (B) of subsection (c)(1), by inserting 
   ``participating'' before ``uniformed services''.                        
     (4) Section 1116(a) of such title is amended in paragraphs (1)(B) and
  (2)(B) by inserting ``under the jurisdiction of the Secretary of        
  Defense'' after ``uniformed services''.                                 
     (c) Clarification of Payments From the Fund.--(1) Subsection (a) of  
  section 1113 of such title is amended to read as follows:               
     ``(a) There shall be paid from the Fund amounts payable for the costs
  of all uniformed service retiree health care programs for the benefit of
  members or former members of a participating uniformed service who are  
  entitled to retired or retainer pay and are medicare eligible, and      
  eligible dependents who are medicare eligible.''.                       
     (2) Such section is further amended by adding at the end the         
  following new subsections:                                              
     ``(c)(1) In carrying out subsection (a), the Secretary of Defense may
  transfer periodically from the Fund to applicable appropriations of the 
  Department of Defense, or to applicable appropriations of other         
  departments or agencies, such amounts as the Secretary determines       
  necessary to cover the costs chargeable to those appropriations for     
  uniformed service retiree health care programs for beneficiaries under  
  those programs who are medicare-eligible. Such transfers may include    
  amounts necessary for the administration of such programs. Amounts so   
  transferred shall be merged with and be available for the same purposes 
  and for the same time period as the appropriation to which transferred. 
  Upon a determination that all or part of the funds transferred from the 
  Fund are not necessary for the purposes for which transferred, such     
  amounts may be transferred back to the Fund. This transfer authority is 
  in addition to any other transfer authority that may be available to the
  Secretary.                                                              
     ``(2) A transfer from the Fund under paragraph (1) may not be made to
  an appropriation after the end of the second fiscal year after the      
  fiscal year that the appropriation is available for obligation. A       
  transfer back to the Fund under paragraph (1) may not be made after the 
  end of the second fiscal year after the fiscal year for which the       
  appropriation to which the funds were originally transferred is         
  available for obligation.                                               
     ``(d) The Secretary of Defense shall by regulation establish the     
  method or methods for calculating amounts to be transferred under       
  subsection (c). Such method or methods may be based (in whole or in     
  part) on a proportionate share of the volume (measured as the Secretary 
  determines appropriate) of health care services provided or paid for    
  under uniformed service retiree health care programs for beneficiaries  
  under those programs who are medicare-eligible in relation to the total 
  volume of health care services provided or paid for under Department of 
  Defense health care programs.                                           
     ``(e) The regulations prescribed by the Secretary under subsection   
  (d) shall be provided to the Comptroller General not less than 60 days  
  before such regulations become effective. The Comptroller General shall,
  not later than 30 days after receiving such regulations, report to the  
  Secretary of Defense and Congress on the adequacy and appropriateness of
  the regulations.                                                        
     ``(f) If the Secretary of Defense enters into an agreement with      
  another administering Secretary pursuant to section 1111(c), the        
  Secretary of Defense may take the actions described in subsections (c), 
  (d), and (e) on behalf of the beneficiaries and programs of the other   
  participating uniformed service.''.                                     
     (d) Source of Funds for Monthly Accrual Payments Into the            
  Fund.--Section 1116 of such title is further amended--                  
       (1) in subsection (a)(2)(B) (as amended by subsection (b)(4)), by   
   striking the sentence beginning ``Amounts paid into''; and              
     (2) by adding at the end the following new subsection:                

     ``(c) Amounts paid into the Fund under subsection (a) shall be paid  
  from funds available for the health care programs of the participating  
  uniformed services under the jurisdiction of the respective             
  administering Secretaries.''.                                           
     (e) Technical Amendments.--(1) Sections 1111(a), 1115(c)(2),         
  1116(a)(1)(A), and 1116(a)(2)(A) of such title are amended by striking  
  ``Department of Defense retiree health care programs'' and inserting    
  ``uniformed services retiree health care programs''.                    
     (2) The heading for section 1111 of such title is amended to read as 
  follows:                                                                
                    ``1111. Establishment and purpose of Fund; definitions;       
          authority to enter into agreements''.                                   
     (3) The item relating to section 1111 in the table of sections at the
  beginning of chapter 56 of such title is amended to read as follows:    


            ``1111. Establishment and purpose of Fund; definitions; authority 
      to enter into agreements.''.                                            


     (f) Effective Date.--The amendments made by this section shall take  
  effect as if included in the enactment of chapter 56 of title 10, United
  States Code, by section 713(a)(1) of the Floyd D. Spence National       
  Defense Authorization Act for Fiscal Year 2001 (as enacted into law by  
  Public Law 106 398; 114 Stat. 1654A 179).                               
     (g) First Year Contributions.--With respect to contributions under   
  section 1116(a) of title 10, United States Code, for the first year that
  the Department of Defense Medicare-Eligible Retiree Health Care Fund is 
  established under chapter 56 of such title, if the Board of Actuaries is
  unable to execute its responsibilities with respect to such section, the
  Secretary of Defense may make contributions under such section using    
  methods and assumptions developed by the Secretary.                     

           Subtitle C--Studies and Reports                                         

                    SEC. 721. COMPTROLLER GENERAL STUDY OF HEALTH CARE COVERAGE OF
          MEMBERS OF THE RESERVE COMPONENTS OF THE ARMED FORCES AND THE NATIONAL  
          GUARD.                                                                  
     (a) Requirement for Study.--The Comptroller General shall carry out a
  study of the needs of members of the reserve components of the Armed    
  Forces and the National Guard and their families for health care        
  benefits. The study shall include the following:                        
       (1) An analysis of how members of the reserve components of the     
   Armed Forces and the National Guard currently obtain coverage for health
   care benefits when not on active duty, together with statistics on      
   enrollments in health care benefits plans, including--                  
       (A) the percentage of such members who are not covered by an        
   employer health benefits plan;                                          
       (B) the percentage of such members who are not covered by an        
   individual health benefits plan; and                                    
       (C) the percentage of such members who are not covered by any health
   insurance or other health benefits plan.                                
       (2) An assessment of the disruptions in health benefits coverage    
   that a mobilization of members of the reserve components of the Armed   
   Forces and the National Guard causes for the members and their families.
       (3) An assessment of the cost and effectiveness of various options  
   for preventing or reducing disruptions described in paragraph (2),      
   including--                                                             
       (A) providing health care benefits to all members of the reserve    
   components of the Armed Forces and the National Guard and their families
   through the TRICARE program, the Federal Employees Health Benefits      
   Program, or otherwise;                                                  
       (B) revising and extending the program of transitional medical and  
   dental care that is provided under section 1074b of title 10, United    
   States Code, for members of the Armed Forces upon release from active   
   duty served in support of a contingency operation;                      
       (C) requiring the health benefits plans of such members, including  
   individual health benefits plans and group health benefits plans, to    
   permit such members to elect to resume coverage under such health       
   benefits plans upon release from active duty in support of a contingency
   operation;                                                              
       (D) allowing members of the reserve components of the Armed Forces  
   and the National Guard to participate in TRICARE Standard using various 
   cost-sharing arrangements;                                              
       (E) providing employers of members of the reserve components of the 
   Armed Forces and the National Guard with the option of paying the costs 
   of participation in the TRICARE program for such members and their      
   families using various cost-sharing arrangements;                       
       (F) providing financial assistance for paying premiums or other     
   subscription charges for continuation of coverage by private sector     
   health insurance or other health benefits plans; and                    
       (G) any other options that the Comptroller General determines       
   advisable to consider.                                                  
     (b) Report.--Not later than May 1, 2002, the Comptroller General     
  shall submit to Congress a report describing the findings of the study  
  conducted under subsection (a).                                         
                    SEC. 722. COMPTROLLER GENERAL STUDY OF ADEQUACY AND QUALITY OF
          HEALTH CARE PROVIDED TO WOMEN UNDER THE DEFENSE HEALTH PROGRAM.         
     (a) Requirement for Study.--The Comptroller General shall carry out a
  study of the adequacy and quality of the health care provided to women  
  under chapter 55 of title 10, United States Code.                       
     (b) Specific Consideration.--The study shall include an intensive    
  review of the availability and quality of reproductive health care      
  services.                                                               
     (c) Report.--The Comptroller General shall submit a report on the    
  results of the study to Congress not later than May 1, 2002.            
          SEC. 723. REPEAL OF OBSOLETE REPORT REQUIREMENT.                        

     Section 701 of the National Defense Authorization Act for Fiscal Year
  2000 (Public Law 106 65; 10 U.S.C. 1074g note) is amended by striking   
  subsection (d).                                                         

                    SEC. 724. COMPTROLLER GENERAL REPORT ON REQUIREMENT TO PROVIDE
          SCREENINGS, PHYSICAL EXAMINATIONS, AND OTHER CARE FOR CERTAIN MEMBERS.  
     (a) Report Required.--The Comptroller General shall prepare a report 
  on the advisability, need, and cost effectiveness of the requirements   
  under section 1074a(d) of title 10, United States Code, that the        
  Secretary of the Army provide medical and dental screenings, physical   
  examinations, and certain dental care for early deploying members of the
  Selected Reserve. The report shall include any recommendations for      
  changes to such requirements based on the most current information      
  available on the value of periodic physical examinations and any role   
  such examinations play in monitoring force and individual member        
  pre-deployment and post-deployment health status.                       
     (b) Deadline for Submission.--The report required by subsection (a)  
  shall be provided to the Committees on Armed Services of the Senate and 
  the House of Representatives not later than June 1, 2002.               
           Subtitle D--Other Matters                                               

                    SEC. 731. PROHIBITION AGAINST REQUIRING MILITARY RETIREES TO  
          RECEIVE HEALTH CARE SOLELY THROUGH THE DEPARTMENT OF DEFENSE.           
     (a) Prohibition.--Chapter 55 of title 10, United States Code, is     
  amended by inserting after section 1086a the following new section:     

                    ``1086b. Prohibition against requiring retired members to     
          receive health care solely through the Department of Defense            
     ``The Secretary of Defense may not take any action that would        
  require, or have the effect of requiring, a member or former member of  
  the armed forces who is entitled to retired or retainer pay to enroll to
  receive health care from the Federal Government only through the        
  Department of Defense.''.                                               

     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  1086a the following new item:                                           


            ``1086b. Prohibition against requiring retired members to receive 
      health care solely through the Department of Defense.''.                

          SEC. 732. FEES FOR TRAUMA AND OTHER MEDICAL CARE PROVIDED TO CIVILIANS. 

     (a) Requirement To Implement Procedures.--(1) Chapter 55 of title 10,
  United States Code, is amended by inserting after section 1079a the     
  following new section:                                                  

                    ``1079b. Procedures for charging fees for care provided to    
          civilians; retention and use of fees collected                          
     ``(a) Requirement To Implement Procedures.--The Secretary of Defense 
  shall implement procedures under which a military medical treatment     
  facility may charge civilians who are not covered beneficiaries (or     
  their insurers) fees representing the costs, as determined by the       
  Secretary, of trauma and other medical care provided to such civilians. 
     ``(b) Use of Fees Collected.--A military medical treatment facility  
  may retain and use the amounts collected under subsection (a) for--     
     ``(1) trauma consortium activities;                                   

     ``(2) administrative, operating, and equipment costs; and             

     ``(3) readiness training.''.                                          


     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 1079a the following new 
  item:                                                                   


            ``1079b. Procedures for charging fees for care provided to        
      civilians; retention and use of fees collected.''.                      


     (b) Deadline for Implementation.--The Secretary of Defense shall     
  begin to implement the procedures required by section 1079b(a) of title 
  10, United States Code (as added by subsection (a)), not later than one 
  year after the date of the enactment of this Act.                       

          SEC. 733.  ENHANCEMENT OF MEDICAL PRODUCT DEVELOPMENT.                  

    Section 980 of title 10, United States Code, is amended--             

     (1) by inserting ``(a)'' before ``Funds''; and                        

     (2) by adding at the end the following new subsection:                

     ``(b) The Secretary of Defense may waive the prohibition in this     
  section with respect to a specific research project to advance the      
  development of a medical product necessary to the armed forces if the   
  research project may directly benefit the subject and is carried out in 
  accordance with all other applicable laws.''.                           
                    SEC. 734. PILOT PROGRAM PROVIDING FOR DEPARTMENT OF VETERANS  
          AFFAIRS SUPPORT IN THE PERFORMANCE OF SEPARATION PHYSICAL EXAMINATIONS. 
     (a) Authority.--The Secretary of Defense and the Secretary of        
  Veterans Affairs may jointly carry out a pilot program under which the  
  Secretary of Veterans Affairs may perform the physical examinations     
  required for members of the uniformed services separating from the      
  uniformed services who are in one or more geographic areas designated   
  for the pilot program by the Secretaries.                               
     (b) Reimbursement.--The Secretary of Defense shall reimburse the     
  Secretary of Veterans Affairs for the cost incurred by the Secretary of 
  Veterans Affairs in performing, under the pilot program, the elements of
  physical examination that are required by the Secretary concerned in    
  connection with the separation of a member of a uniformed service.      
  Reimbursements shall be paid out of funds available for the performance 
  of separation physical examinations of members of that uniformed service
  in facilities of the uniformed services.                                
     (c) Agreement.--(1) If the Secretary of Defense and the Secretary of 
  Veterans Affairs carry out the pilot program authorized by this section,
  the Secretaries shall enter into an agreement specifying the geographic 
  areas in which the pilot program is carried out and the means for making
  reimbursement payments under subsection (b).                            
     (2) The other administering Secretaries shall also enter into the    
  agreement to the extent that the Secretary of Defense determines        
  necessary to apply the pilot program, including the requirement for     
  reimbursement, to the uniformed services not under the jurisdiction of  
  the Secretary of a military department.                                 
     (d) Consultation Requirement.--In developing and carrying out the    
  pilot program, the Secretary of Defense shall consult with the other    
  administering Secretaries.                                              
     (e) Period of Program.--The Secretary of Defense and the Secretary of
  Veterans Affairs may carry out the pilot program under this section     
  beginning not later than July 1, 2002, and terminating on December 31,  
  2005.                                                                   
     (f) Reports.--(1) If the Secretary of Defense and the Secretary of   
  Veterans Affairs carry out the pilot program authorized by this         
  section--                                                               
       (A) not later than January 31, 2004, the Secretaries shall jointly  
   submit to Congress an interim report on the conduct of the pilot        
   program; and                                                            
       (B) not later than March 1, 2005, the Secretaries shall jointly     
   submit to Congress a final report on the conduct of the pilot program.  
     (2) Reports under this subsection shall include the Secretaries'     
  assessment, as of the date of the report, of the efficacy of the        
  performance of separation physical examinations as provided for under   
  the pilot program.                                                      
    (g)  Definitions.--In this section:                                   

       (1) The term ``administering Secretaries'' has the meaning given    
   that term in section 1072(3) of title 10, United States Code.           
       (2) The term ``Secretary concerned'' has the meaning given that term
   in section 101(5) of title 37, United States Code.                      
                    SEC. 735. MODIFICATION OF PROHIBITION ON REQUIREMENT OF       
          NONAVAILABILITY STATEMENT OR PREAUTHORIZATION.                          
     (a) Clarification of Covered Beneficiaries.--Subsection (a) of       
  section 721 of the Floyd D. Spence National Defense Authorization Act   
  for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114    
  Stat. 1654A 184) is amended by striking ``covered beneficiary under     
  chapter 55 of title 10, United States Code, who is enrolled in TRICARE  
  Standard,`` and inserting ``covered beneficiary under TRICARE Standard  
  pursuant to chapter 55 of title 10, United States Code,''.              
     (b) Repeal of Requirement for Notification Regarding Health Care     
  Received From Another Source.--Subsection (b) of such section is        
  repealed.                                                               
     (c) Waiver Authority.--Such section, as so amended, is further       
  amended by striking subsection (c) and inserting the following new      
  subsections:                                                            
     ``(b) Waiver Authority.--The Secretary may waive the prohibition in  
  subsection (a) if--                                                     
     ``(1) the Secretary--                                                 

       ``(A) demonstrates that significant costs would be avoided by       
   performing specific procedures at the affected military medical         
   treatment facility or facilities;                                       
       ``(B) determines that a specific procedure must be provided at the  
   affected military medical treatment facility or facilities to ensure the
   proficiency levels of the practitioners at the facility or facilities;  
   or                                                                      
       ``(C) determines that the lack of nonavailability statement data    
   would significantly interfere with TRICARE contract administration;     
       ``(2) the Secretary provides notification of the Secretary's intent 
   to grant a waiver under this subsection to covered beneficiaries who    
   receive care at the military medical treatment facility or facilities   
   that will be affected by the decision to grant a waiver under this      
   subsection;                                                             

       ``(3) the Secretary notifies the Committees on Armed Services of the
   House of Representatives and the Senate of the Secretary's intent to    
   grant a waiver under this subsection, the reason for the waiver, and the
   date that a nonavailability statement will be required; and             
       ``(4) 60 days have elapsed since the date of the notification       
   described in paragraph (3).                                             
     ``(c) Waiver Exception For Maternity Care.--Subsection (b) shall not 
  apply with respect to maternity care.''.                                
     (d) Effective Date.--(1) Subsection (a) of such section is amended by
  striking ``under any new contract for the provision of health care      
  services''.                                                             
     (2) Subsection (d) of such section is amended by striking ``take     
  effect on October 1, 2001.'' and inserting ``take effect on the earlier 
  of the following:                                                       
       ``(1) The date that a new contract entered into by the Secretary to 
   provide health care services under TRICARE Standard takes effect.       
       ``(2) The date that is two years after the date of the enactment of 
   the National Defense Authorization Act for Fiscal Year 2002.''.         
     (e) Report.--Not later than March 1, 2002, the Secretary of Defense  
  shall submit to the Committees on Armed Services of the House of        
  Representatives and the Senate a report on the Secretary's plans for    
  implementing section 721 of the Floyd D. Spence National Defense        
  Authorization Act for Fiscal Year 2001, as amended by this section.     
                    SEC. 736. TRANSITIONAL HEALTH CARE FOR MEMBERS SEPARATED FROM 
          ACTIVE DUTY.                                                            
     (a) Permanent Authority for Involuntarily Separated Members and      
  Mobilized Reserves.--Subsection (a) of section 1145 of title 10, United 
  States Code, is amended--                                               
       (1) in paragraph (1), by striking ``paragraph (2), a member'' and   
   all that follows through ``of the member),'' and inserting ``paragraph  
   (3), a member of the armed forces who is separated from active duty as  
   described in paragraph (2)'';                                           
     (2) by redesignating paragraph (2) as paragraph (3);                  

     (3) by inserting after paragraph (1) the following new paragraph (2): 

     ``(2) This subsection applies to the following members of the armed  
  forces:                                                                 
     ``(A) A member who is involuntarily separated from active duty.       

       ``(B) A member of a reserve component who is separated from active  
   duty to which called or ordered in support of a contingency operation if
   the active duty is active duty for a period of more than 30 days.       
       ``(C) A member who is separated from active duty for which the      
   member is involuntarily retained under section 12305 of this title in   
   support of a contingency operation.                                     
       ``(D) A member who is separated from active duty served pursuant to 
   a voluntary agreement of the member to remain on active duty for a      
   period of less than one year in support of a contingency operation.'';  
   and                                                                     
       (4) in paragraph (3), as redesignated by paragraph (2), by striking 
   ``involuntarily'' each place it appears.                                
    (b)  Conforming Amendments.--Such section 1145 is further amended--   

       (1) in subsection (c)(1), by striking ``during the period beginning 
   on October 1, 1990, and ending on December 31, 2001''; and              
     (2) in subsection (e), by striking the first sentence.                

     (c) Repeal of Superseded Authority.--(1) Section 1074b of title 10,  
  United States Code, is repealed.                                        
     (2) The table of sections at the beginning of chapter 55 of such     
  title is amended by striking the item relating to section 1074b.        
     (d) Transition Provision.--Notwithstanding the repeal of section     
  1074b of title 10, United States Code, by subsection (c), the provisions
  of that section, as in effect before the date of the enactment of this  
  Act, shall continue to apply to a member of the Armed Forces who is     
  released from active duty in support of a contingency operation before  
  that date.                                                              
                    SEC. 737. TWO-YEAR EXTENSION OF HEALTH CARE MANAGEMENT        
          DEMONSTRATION PROGRAM.                                                  
     (a) Extension.--Subsection (d) of section 733 of the Floyd D. Spence 
  National Defense Authorization Act for Fiscal Year 2001 (as enacted by  
  Public Law 106 398; 114 Stat. 1654A 191) is amended by striking         
  ``December 31, 2001'' and inserting ``December 31, 2003''.              
    (b)  Report.--Subsection (e) of that section is amended--             

     (1) by striking `` Reports.--'' and inserting `` Report.--''; and     

     (2) by striking ``March 15, 2002'' and inserting ``March 15, 2004''.  

                    SEC. 738. JOINT DOD-VA PILOT PROGRAM FOR PROVIDING GRADUATE   
          MEDICAL EDUCATION AND TRAINING FOR PHYSICIANS.                          
     (a) In General.--The Secretary of Defense and the Secretary of       
  Veterans Affairs may jointly carry out a pilot program under which      
  graduate medical education and training is provided to military         
  physicians and physician employees of the Department of Defense and the 
  Department of Veterans Affairs through one or more programs carried out 
  in military medical treatment facilities of the Department of Defense   
  and medical centers of the Department of Veterans Affairs.              
     (b) Cost-Sharing Agreement.--If the Secretary of Defense and the     
  Secretary of Veterans Affairs carry out a pilot program under subsection
  (a), the Secretaries shall enter into an agreement for carrying out the 
  pilot program under which means are established for each respective     
  Secretary to assist in paying the costs, with respect to individuals    
  under the jurisdiction of such Secretary, incurred by the other         
  Secretary in providing medical education and training under the pilot   
  program.                                                                
     (c) Use of Existing Authorities.--To carry out the pilot program, the
  Secretary of Defense and the Secretary of Veterans Affairs shall        
  exercise authorities provided to the Secretaries, respectively, under   
  other laws relating to the furnishing or support of medical education   
  and the cooperative use of facilities.                                  
     (d) Period of Program.--If the Secretary of Defense and the Secretary
  of Veterans Affairs carry out a pilot program under subsection (a), such
  pilot program shall begin not later than August 1, 2002, and shall      
  terminate on July 31, 2007.                                             
     (e) Reports.--If the Secretary of Defense and the Secretary of       
  Veterans Affairs carry out a pilot program under subsection (a), not    
  later than January 31, 2003, and January 31 of each year thereafter     
  through 2008, the Secretaries shall jointly submit to Congress a report 
  on the pilot program. The report shall cover the preceding year and     
  shall include each Secretary's assessment of the efficacy of providing  
  education and training under the program.                               

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

                    SUBTITLE A--PROCUREMENT MANAGEMENT AND ADMINISTRATION         

      Sec. 801. Management of procurement of services.                        

      Sec. 802. Savings goals for procurements of services.                   

            Sec. 803. Competition requirement for purchase of services        
      pursuant to multiple award contracts.                                   
            Sec. 804. Reports on maturity of technology at initiation of major
      defense acquisition programs.                                           
                            SUBTITLE B--USE OF PREFERRED SOURCES                  

            Sec. 811. Applicability of competition requirements to purchases  
      from a required source.                                                 
      Sec. 812. Extension of mentor-protege program.                          

            Sec. 813. Increase of assistance limitation regarding procurement 
      technical assistance program.                                           
           SUBTITLE C--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                               AND RELATED MATTERS                                
            Sec. 821. Amendments to conform with administrative changes in    
      acquisition phase and milestone terminology and to make related         
      adjustments in certain requirements applicable at milestone transition  
      points.                                                                 
            Sec. 822. Follow-on production contracts for products developed   
      pursuant to prototype projects.                                         
            Sec. 823. One-year extension of program applying simplified       
      procedures to certain commercial items.                                 
      Sec. 824. Acquisition workforce qualifications.                         

            Sec. 825. Report on implementation of recommendations of the      
      acquisition 2005 task force.                                            
                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 831. Identification of errors made by executive agencies in  
      payments to contractors and recovery of amounts erroneously paid.       
            Sec. 832. Codification and modification of provision of law known 
      as the ``Berry amendment''.                                             
            Sec. 833. Personal services contracts to be performed by          
      individuals or organizations abroad.                                    
      Sec. 834. Requirements regarding insensitive munitions.                 

            Sec. 835. Inapplicability of limitation to small purchases of     
      miniature or instrument ball or roller bearings under certain           
      circumstances.                                                          
            Sec. 836. Temporary emergency procurement authority to facilitate 
      the defense against terrorism or biological or chemical attack.         

           Subtitle A--Procurement Management and Administration                   

          SEC. 801. MANAGEMENT OF PROCUREMENT OF SERVICES.                        

     (a) Responsibility of Under Secretary of Defense for Acquisition,    
  Technology, and Logistics.--Section 133(b)(2) of title 10, United States
  Code, is amended by inserting ``of goods and services'' after           
  ``procurement''.                                                        
     (b) Requirement for Management Structure.--(1) Chapter 137 of such   
  title is amended by inserting after section 2328 the following new      
  section:                                                                
          ``2330. Procurement of services: management structure                   

     ``(a) Requirement for Management Structure.--(1) The Secretary of    
  Defense shall establish and implement a management structure for the    
  procurement of services for the Department of Defense. The management   
  structure shall be comparable to the management structure that applies  
  to the procurement of products by the Department.                       
    ``(2) The management structure required by paragraph (1) shall--      

       ``(A) provide for a designated official in each military department 
   to exercise responsibility for the management of the procurement of     
   services for such department;                                           
       ``(B) provide for a designated official for Defense Agencies and    
   other defense components outside the military departments to exercise   
   responsibility for the management of the procurement of services for    
   such Defense Agencies and components;                                   
       ``(C) include a means by which employees of the departments, Defense
   Agencies, and components are accountable to such designated officials   
   for carrying out the requirements of subsection (b); and                
       ``(D) establish specific dollar thresholds and other criteria for   
   advance approvals of purchases under subsection (b)(1)(C) and           
   delegations of activity under subsection (b)(2).                        
     ``(b) Contracting Responsibilities of Designated Officials.--(1) The 
  responsibilities of an official designated under subsection (a) shall   
  include, with respect to the procurement of services for the military   
  department or Defense Agencies and components by that official, the     
  following:                                                              
       ``(A) Ensuring that the services are procured by means of contracts 
   or task orders that are in the best interests of the Department of      
   Defense and are entered into or issued and managed in compliance with   
   applicable statutes, regulations, directives, and other requirements,   
   regardless of whether the services are procured through a contract or   
   task order of the Department of Defense or through a contract entered   
   into or task order issued by an official of the United States outside   
   the Department of Defense.                                              
       ``(B) Analyzing data collected under section 2330a of this title on 
   contracts that are entered into for the procurement of services.        
       ``(C) Approving, in advance, any procurement of services above the  
   thresholds established pursuant to subsection (a)(2)(D) that is to be   
   made through the use of--                                               
       ``(i) a contract or task order that is not a performance-based      
   contract or task order; or                                              
       ``(ii) a contract entered into, or a task order issued, by an       
   official of the United States outside the Department of Defense.        
     ``(2) The responsibilities of a designated official may be delegated 
  to other employees of the Department of Defense in accordance with the  
  criteria established by the Secretary of Defense.                       
     ``(c) Definition.--In this section, the term `performance-based',    
  with respect to a contract or a task order means that the contract or   
  task order, respectively, includes the use of performance work          
  statements that set forth requirements in clear, specific, and objective
  terms with measurable outcomes.''.                                      
     (2) Not later than 180 days after the date of the enactment of this  
  Act--                                                                   
       (A) the Secretary of Defense shall establish and implement the      
   management structure required under section 2330 of title 10, United    
   States Code (as added by paragraph (1)); and                            
       (B) the Under Secretary of Defense for Acquisition, Technology, and 
   Logistics shall issue guidance for officials in the management structure
   established under such section 2330 regarding how to carry out their    
   responsibilities under that section.                                    
     (c) Tracking of Procurement of Services.--Chapter 137 of title 10,   
  United States Code, as amended by subsection (b), is further amended by 
  inserting after section 2330 the following new section:                 
          ``2330a. Procurement of services: tracking of purchases                 

     ``(a) Data Collection Required.--The Secretary of Defense shall      
  establish a data collection system to provide management information    
  with regard to each purchase of services by a military department or    
  Defense Agency in excess of the simplified acquisition threshold,       
  regardless of whether such a purchase is made in the form of a contract,
  task order, delivery order, military interdepartmental purchase request,
  or any other form of interagency agreement.                             
     ``(b) Data To Be Collected.--The data required to be collected under 
  subsection (a) includes the following:                                  
     ``(1) The services purchased.                                         

     ``(2) The total dollar amount of the purchase.                        

     ``(3) The form of contracting action used to make the purchase.       

     ``(4) Whether the purchase was made through--                         

       ``(A) a performance-based contract, performance-based task order, or
   other performance-based arrangement that contains firm fixed prices for 
   the specific tasks to be performed;                                     
       ``(B) any other performance-based contract, performance-based task  
   order, or performance-based arrangement; or                             
       ``(C) any contract, task order, or other arrangement that is not    
   performance based.                                                      
       ``(5) In the case of a purchase made through an agency other than   
   the Department of Defense, the agency through which the purchase is     
   made.                                                                   
       ``(6) The extent of competition provided in making the purchase and 
   whether there was more than one offer.                                  
     ``(7) Whether the purchase was made from--                            

     ``(A) a small business concern;                                       

       ``(B) a small business concern owned and controlled by socially and 
   economically disadvantaged individuals; or                              
     ``(C) a small business concern owned and controlled by women.         

     ``(c) Compatibility With Data Collection System for Information      
  Technology Purchases.--To the maximum extent practicable, a single data 
  collection system shall be used to collect data under this section and  
  information under section 2225 of this title.                           
    ``(d)  Definitions.--In this section:                                 

       ``(1) The term `performance-based', with respect to a contract, task
   order, or arrangement, means that the contract, task order, or          
   arrangement, respectively, includes the use of performance work         
   statements that set forth contract requirements in clear, specific, and 
   objective terms with measurable outcomes.                               
       ``(2) The definitions set forth in section 2225(f) of this title for
   the terms `simplified acquisition threshold', `small business concern', 
   `small business concern owned and controlled by socially and            
   economically disadvantaged individuals', and `small business concern    
   owned and controlled by women' shall apply.''.                          
     (d) Requirement for Program Review Structure.--(1) Not later than 180
  days after the date of the enactment of this Act, the Secretary of      
  Defense shall issue and implement a policy that applies to the          
  procurement of services by the Department of Defense a program review   
  structure that is similar to the one developed for and applied to the   
  procurement of weapon systems by the Department of Defense.             

     (2) The program review structure for the procurement of services     
  shall, at a minimum, include the following:                             
       (A) Standards for determining which procurements should be subject  
   to review by either the senior procurement executive of a military      
   department or the senior procurement executive of the Department of     
   Defense under such section, including criteria based on dollar          
   thresholds, program criticality, or other appropriate measures.         
       (B) Appropriate key decision points at which those reviews should   
   take place.                                                             
     (C) A description of the specific matters that should be reviewed.    

     (e) Comptroller General Review.--Not later than 90 days after the    
  date on which the Secretary issues the policy required by subsection (d)
  and the Under Secretary of Defense for Acquisition, Technology, and     
  Logistics issues the guidance required by subsection (b)(2), the        
  Comptroller General shall submit to the Committees on Armed Services of 
  the Senate and the House of Representatives an assessment of the        
  compliance with the requirements of this section and the amendments made
  by this section.                                                        
    (f)  Definitions.--In this section:                                   

       (1) The term ``senior procurement executive'' means the official    
   designated as the senior procurement executive under section 16(3) of   
   the Office of Federal Procurement Policy Act (41 U.S.C. 414(3)).        
       (2) The term ``performance-based'', with respect to a contract or a 
   task order means that the contract or task order, respectively, includes
   the use of performance work statements that set forth contract          
   requirements in clear, specific, and objective terms with measurable    
   outcomes.                                                               
     (g) Clerical Amendments.--(1) The heading for section 2331 of title  
  10, United States Code, is amended to read as follows:                  
                    ``2331. Procurement of services: contracts for professional   
          and technical services'' .                                              
     (2) The table of sections at the beginning of chapter 137 of such    
  title is amended by striking the item relating to section 2331 and      
  inserting the following new items:                                      


      ``2330. Procurement of services: management structure.                  

      ``2330a. Procurement of services: tracking of purchases.                

            ``2331. Procurement of services: contracts for professional and   
      technical services.''.                                                  

          SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERVICES.                   

     (a) Goals.--(1) It shall be an objective of the Department of Defense
  to achieve savings in expenditures for procurements of services through 
  the use of--                                                            
     (A) performance-based services contracting;                           

       (B) appropriate competition for task orders under services          
   contracts; and                                                          
       (C) program review, spending analyses, and improved management of   
   services contracts.                                                     
     (2) In furtherance of such objective, the Department of Defense shall
  have goals to use improved management practices to achieve, over 10     
  fiscal years, reductions in the total amount that would otherwise be    
  expended by the Department for the procurement of services (other than  
  military construction) in a fiscal year by the amount equal to 10       
  percent of the total amount of the expenditures of the Department for   
  fiscal year 2000 for procurement of services (other than military       
  construction), as follows:                                              
     (A) By fiscal year 2002, a three percent reduction.                   

     (B) By fiscal year 2003, a four percent reduction.                    

     (C) By fiscal year 2004, a five percent reduction.                    

     (D) By fiscal year 2011, a ten percent reduction.                     

     (b) Annual Report.--Not later than March 1, 2002, and annually       
  thereafter through March 1, 2006, the Secretary of Defense shall submit 
  to the congressional defense committees a report on the progress made   
  toward meeting the objective and goals established in subsection (a).   
  Each report shall include, at a minimum, the following information:     
       (1) A summary of the steps taken or planned to be taken in the      
   fiscal year of the report to improve the management of procurements of  
   services.                                                               
       (2) A summary of the steps planned to be taken in the following     
   fiscal year to improve the management of procurements of services.      
       (3) An estimate of the amount that will be expended by the          
   Department of Defense for procurements of services in the fiscal year of
   the report.                                                             
       (4) An estimate of the amount that will be expended by the          
   Department of Defense for procurements of services in the following     
   fiscal year.                                                            
       (5) An estimate of the amount of savings that, as a result of       
   improvement of the management practices used by the Department of       
   Defense, will be achieved for the procurement of services by the        
   Department in the fiscal year of the report and in the following fiscal 
   year.                                                                   

                    SEC. 803. COMPETITION REQUIREMENT FOR PURCHASE OF SERVICES    
          PURSUANT TO MULTIPLE AWARD CONTRACTS.                                   
     (a) Regulations Required.--Not later than 180 days after the date of 
  the enactment of this Act, the Secretary of Defense shall promulgate in 
  the Department of Defense Supplement to the Federal Acquisition         
  Regulation regulations requiring competition in the purchase of services
  by the Department of Defense pursuant to multiple award contracts.      
     (b) Content of Regulations.--(1) The regulations required by         
  subsection (a) shall provide, at a minimum, that each individual        
  purchase of services in excess of $100,000 that is made under a multiple
  award contract shall be made on a competitive basis unless a contracting
  officer of the Department of Defense--                                  
     (A) waives the requirement on the basis of a determination that--     

       (i) one of the circumstances described in paragraphs (1) through (4)
   of section 2304c(b) of title 10, United States Code, applies to such    
   individual purchase; or                                                 
       (ii) a statute expressly authorizes or requires that the purchase be
   made from a specified source; and                                       
     (B) justifies the determination in writing.                           

     (2) For purposes of this subsection, an individual purchase of       
  services is made on a competitive basis only if it is made pursuant to  
  procedures that--                                                       
       (A) require fair notice of the intent to make that purchase         
   (including a description of the work to be performed and the basis on   
   which the selection will be made) to be provided to all contractors     
   offering such services under the multiple award contract; and           
       (B) afford all contractors responding to the notice a fair          
   opportunity to make an offer and have that offer fairly considered by   
   the official making the purchase.                                       
     (3) Notwithstanding paragraph (2), notice may be provided to fewer   
  than all contractors offering such services under a multiple award      
  contract described in subsection (c)(2)(A) if notice is provided to as  
  many contractors as practicable.                                        
     (4) A purchase may not be made pursuant to a notice that is provided 
  to fewer than all contractors under paragraph (3) unless--              
     (A) offers were received from at least three qualified contractors; or

       (B) a contracting officer of the Department of Defense determines in
   writing that no additional qualified contractors were able to be        
   identified despite reasonable efforts to do so.                         
    (c)  Definitions.--In this section:                                   

       (1) The term ``individual purchase'' means a task order, delivery   
   order, or other purchase.                                               
     (2) The term ``multiple award contract'' means--                      

       (A) a contract that is entered into by the Administrator of General 
   Services under the multiple award schedule program referred to in       
   section 2302(2)(C) of title 10, United States Code;                     

       (B) a multiple award task order contract that is entered into under 
   the authority of sections 2304a through 2304d of title 10, United States
   Code, or sections 303H through 303K of the Federal Property and         
   Administrative Services Act of 1949 (41 U.S.C. 253h through 253k); and  
       (C) any other indefinite delivery, indefinite quantity contract that
   is entered into by the head of a Federal agency with two or more sources
   pursuant to the same solicitation.                                      
       (3) The term ``Defense Agency'' has the meaning given that term in  
   section 101(a)(11) of title 10, United States Code.                     
     (d) Applicability.--The regulations promulgated by the Secretary     
  pursuant to subsection (a) shall take effect not later than 180 days    
  after the date of the enactment of this Act and shall apply to all      
  individual purchases of services that are made under multiple award     
  contracts on or after the effective date, without regard to whether the 
  multiple award contracts were entered into before, on, or after such    
  effective date.                                                         

                    SEC. 804. REPORTS ON MATURITY OF TECHNOLOGY AT INITIATION OF  
          MAJOR DEFENSE ACQUISITION PROGRAMS.                                     
     (a) Reports Required.--Not later than March 1 of each of years 2003  
  through 2006, the Secretary of Defense shall submit to the Committees on
  Armed Services of the Senate and the House of Representatives a report  
  on the implementation of the requirement in paragraph 4.7.3.2.2.2 of    
  Department of Defense Instruction 5000.2, as in effect on the date of   
  enactment of this Act, that technology must have been demonstrated in a 
  relevant environment (or, preferably, in an operational environment) to 
  be considered mature enough to use for product development in systems   
  integration.                                                            
     (b) Contents of Reports.--Each report required by subsection (a)     
  shall--                                                                 
       (1) identify each case in which a major defense acquisition program 
   entered system development and demonstration during the preceding       
   calendar year and into which key technology has been incorporated that  
   does not meet the technological maturity requirement described in       
   subsection (a), and provide a justification for why such key technology 
   was incorporated; and                                                   
       (2) identify any determination of technological maturity with which 
   the Deputy Under Secretary of Defense for Science and Technology did not
   concur and explain how the issue has been or will be resolved.          
     (c) Major Defense Acquisition Program Defined.--In this section, the 
  term ``major defense acquisition program'' has the meaning given that   
  term in section 139(a)(2) of title 10, United States Code.              
           Subtitle B--Use of Preferred Sources                                    

                    SEC. 811. APPLICABILITY OF COMPETITION REQUIREMENTS TO        
          PURCHASES FROM A REQUIRED SOURCE.                                       
     (a) Conditions for Competition.--(1) Chapter 141 of title 10, United 
  States Code, is amended by adding at the end the following:             
          ``2410n. Products of Federal Prison Industries: procedural requirements 

     ``(a) Market Research Before Purchase.--Before purchasing a product  
  listed in the latest edition of the Federal Prison Industries catalog   
  under section 4124(d) of title 18, the Secretary of Defense shall       
  conduct market research to determine whether the Federal Prison         
  Industries product is comparable in price, quality, and time of delivery
  to products available from the private sector.                          
     ``(b) Limited Competition Requirement.--If the Secretary determines  
  that a Federal Prison Industries product is not comparable in price,    
  quality, and time of delivery to products available from the private    
  sector, the Secretary shall use competitive procedures for the          
  procurement of the product. In conducting such a competition, the       
  Secretary shall consider a timely offer from Federal Prison Industries  
  for award in accordance with the specifications and evaluation factors  
  specified in the solicitation.''.                                       
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following:                                     


            ``2410n. Products of Federal Prison Industries: procedural        
      requirements.''.                                                        


     (b) Applicability.--Section 2410n of title 10, United States Code (as
  added by subsection (a)), shall apply to purchases initiated on or after
  October 1, 2001.                                                        
          SEC. 812. EXTENSION OF MENTOR-PROTEGE PROGRAM.                          

     Section 831 of the National Defense Authorization Act for Fiscal Year
  1991 (Public Law 101 510; 10 U.S.C. 2302 note) is amended--             
     (1) in subsection (j)--                                               

       (A) in paragraph (1), by striking ``September 30, 2002'' and        
   inserting ``September 30, 2005''; and                                   
       (B) in paragraph (2), by striking ``September 30, 2005'' and        
   inserting ``September 30, 2008''; and                                   
     (2) in subsection (l)(3), by striking ``2004'' and inserting ``2007''.

                    SEC. 813. INCREASE OF ASSISTANCE LIMITATION REGARDING         
          PROCUREMENT TECHNICAL ASSISTANCE PROGRAM.                               
     Section 2414(a)(1) of title 10, United States Code, is amended by    
  striking ``$300,000'' and inserting ``$600,000''.                       
                      Subtitle C--Amendments to General Contracting Authorities,   
           Procedures, and Related Matters                                         

                    SEC. 821. AMENDMENTS TO CONFORM WITH ADMINISTRATIVE CHANGES IN
          ACQUISITION PHASE AND MILESTONE TERMINOLOGY AND TO MAKE RELATED         
          ADJUSTMENTS IN CERTAIN REQUIREMENTS APPLICABLE AT MILESTONE TRANSITION  
          POINTS.                                                                 
     (a) Acquisition Phase Terminology.--The following provisions of title
  10, United States Code, are amended by striking ``engineering and       
  manufacturing development'' each place it appears and inserting ``system
  development and demonstration'': sections 2366(c) and 2434(a), and      
  subsections (b)(3)(A)(i), (c)(3)(A), and (h)(1) of section 2432.        
     (b) Milestone Transition Points.--(1) Section 811(c) of the Floyd D. 
  Spence National Defense Authorization Act for Fiscal Year 2001 (as      
  enacted into law by Public Law 106 398; 114 Stat. 1654A 211), is amended
  by striking ``Milestone I approval, Milestone II approval, or Milestone 
  III approval (or the equivalent) of a major automated information       
  system'' and inserting ``approval of a major automated information      
  system at Milestone B or C or for full rate production, or an equivalent
  approval,''.                                                            
     (2) Department of Defense Directive 5000.1, as revised in accordance 
  with subsection (b) of section 811 of such Act, shall be further revised
  as necessary to comply with subsection (c) of such section, as amended  
  by paragraph (1), within 60 days after the date of the enactment of this
  Act.                                                                    
     (c) Adjustments to Requirement for Determination of Quantity for     
  Low-Rate Initial Production.--Section 2400(a) of title 10, United States
  Code, is amended--                                                      
       (1) by striking ``milestone II'' each place it appears in paragraphs
   (1)(A), (2), (4) and (5) and inserting ``milestone B''; and             
       (2) in paragraph (2), by striking ``engineering and manufacturing   
   development'' and inserting ``system development and demonstration''.   
     (d) Adjustments to Requirements for Baseline Description and the     
  Related Limitation.--Section 2435 of title 10, United States Code, is   
  amended--                                                               
       (1) in subsection (b), by striking ``engineering and manufacturing  
   development'' and inserting ``system development and demonstration'';   
   and                                                                     
     (2) in subsection (c)--                                               

       (A) in paragraph (1), by striking ``demonstration and validation''  
   and inserting ``system development and demonstration'';                 
       (B) in paragraph (2), by striking ``engineering and manufacturing   
   development'' and inserting ``production and deployment''; and          
       (C) in paragraph (3), by striking ``production and deployment'' and 
   inserting ``full rate production''.                                     

                    SEC. 822. FOLLOW-ON PRODUCTION CONTRACTS FOR PRODUCTS         
          DEVELOPED PURSUANT TO PROTOTYPE PROJECTS.                               
     Section 845 of the National Defense Authorization Act for Fiscal Year
  1994 (10 U.S.C. 2371 note) is amended--                                 
     (1) by redesignating subsection (f) as subsection (g); and            

       (2) by inserting after subsection (e) the following new subsection  
   (f):                                                                    
     ``(f) Follow-On Production Contracts.--(1) A transaction entered into
  under this section for a prototype project that satisfies the conditions
  set forth in subsection (d)(1)(B)(i) may provide for the award of a     
  follow-on production contract to the participants in the transaction for
  a specific number of units at specific target prices. The number of     
  units specified in the transaction shall be determined on the basis of a
  balancing of the level of the investment made in the project by the     
  participants other than the Federal Government with the interest of the 
  Federal Government in having competition among sources in the           
  acquisition of the product or products prototyped under the project.    
     ``(2) A follow-on production contract provided for in a transaction  
  under paragraph (1) may be awarded to the participants in the           
  transaction without the use of competitive procedures, notwithstanding  
  the requirements of section 2304 of title 10, United States Code, if--  
       ``(A) competitive procedures were used for the selection of parties 
   for participation in the transaction;                                   
       ``(B) the participants in the transaction successfully completed the
   prototype project provided for in the transaction;                      

       ``(C) the number of units provided for in the follow-on production  
   contract does not exceed the number of units specified in the           
   transaction for such a follow-on production contract; and               
       ``(D) the prices established in the follow-on production contract do
   not exceed the target prices specified in the transaction for such a    
   follow-on production contract.''.                                       

                    SEC. 823. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED   
          PROCEDURES TO CERTAIN COMMERCIAL ITEMS.                                 
     Section 4202 of the Clinger-Cohen Act of 1996 (divisions D and E of  
  Public Law 104 106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended in   
  subsection (e) by striking ``January 1, 2002'' and inserting ``January  
  1, 2003''.                                                              
          SEC. 824. ACQUISITION WORKFORCE QUALIFICATIONS.                         

     (a) Qualifications.--Section 1724 of title 10, United States Code, is
  amended--                                                               
     (1) in subsection (a)--                                               

       (A) by striking the matter preceding paragraph (1) and inserting the
   following:                                                              
     ``(a) Contracting Officers.--The Secretary of Defense shall require  
  that, in order to qualify to serve in an acquisition position as a      
  contracting officer with authority to award or administer contracts for 
  amounts above the simplified acquisition threshold referred to in       
  section 2304(g) of this title, an employee of the De-partment of Defense
  or member of the armed forces (other than the Coast Guard) must, except 
  as provided in subsections (c) and (d)--'';                             
     (B) in paragraph (1)--                                                

     (i) by striking ``mandatory''; and                                    

       (ii) by striking ``at the grade level'' and all that follows and    
   inserting ``(A) in the case of an employee, serving in the position     
   within the grade of the General Schedule in which the employee is       
   serving, and (B) in the case of a member of the armed forces, in the    
   member's grade;''; and                                                  

     (C) in paragraph (3)(A), by inserting a comma after ``business'';     

       (2) by striking subsection (b) and inserting the following new      
   subsection:                                                             
     ``(b) GS 1102 Series Positions and Similar Military Positions.--(1)  
  The Secretary of Defense shall require that in order to qualify to serve
  in a position in the Department of Defense that is in the GS 1102       
  occupational series an employee or potential employee of the Department 
  of Defense meet the requirements set forth in paragraph (3) of          
  subsection (a). The Secretary may not require that in order to serve in 
  such a position an employee or potential employee meet any of the       
  requirements of paragraphs (1) and (2) of that subsection.              

     ``(2) The Secretary of Defense shall require that in order for a     
  member of the armed forces to be selected for an occupational specialty 
  within the armed forces that (as determined by the Secretary) is similar
  to the GS 1102 occupational series a member of the armed forces meet the
  requirements set forth in paragraph (3) of subsection (a). The Secretary
  may not require that in order to be selected for such an occupational   
  specialty a member meet any of the requirements of paragraphs (1) and   
  (2) of that subsection.''; and                                          
       (3) by striking subsections (c) and (d) inserting the following new 
   subsections:                                                            
     ``(c) Exceptions.--The qualification requirements imposed by the     
  Secretary of Defense pursuant to subsections (a) and (b) shall not apply
  to an employee of the Department of Defense or member of the armed      
  forces who--                                                            
       ``(1) served as a contracting officer with authority to award or    
   administer contracts in excess of the simplified acquisition threshold  
   on or before September 30, 2000;                                        
       ``(2) served, on or before September 30, 2000, in a position either 
   as an employee in the GS 1102 series or as a member of the armed forces 
   in a similar occupational specialty;                                    
     ``(3) is in the contingency contracting force; or                     

     ``(4) is described in subsection (e)(1)(B).                           

     ``(d) Waiver.--The acquisition career program board concerned may    
  waive any or all of the requirements of subsections (a) and (b) with    
  respect to an employee of the Department of Defense or member of the    
  armed forces if the board certifies that the individual possesses       
  significant potential for advancement to levels of greater              
  responsibility and authority, based on demonstrated job performance and 
  qualifying experience. With respect to each waiver granted under this   
  subsection, the board shall set forth in a written document the         
  rationale for its decision to waive such requirements. Such document    
  shall be submitted to and retained by the Director of Acquisition       
  Education, Training, and Career Development.                            
     ``(e) Developmental Opportunities.--(1) The Secretary of Defense     
  may--                                                                   
       ``(A) establish or continue one or more programs for the purpose of 
   recruiting, selecting, appointing, educating, qualifying, and developing
   the careers of individuals to meet the requirements in subparagraphs (A)
   and (B) of subsection (a)(3);                                           
       ``(B) appoint individuals to developmental positions in those       
   programs; and                                                           
       ``(C) separate from the civil service after a three-year            
   probationary period any individual appointed under this subsection who  
   fails to meet the requirements described in subsection (a)(3).          
     ``(2) To qualify for any developmental program described in paragraph
  (1)(B), an individual shall have--                                      
       ``(A) been awarded a baccalaureate degree, with a grade point       
   average of at least 3.0 (or the equivalent), from an accredited         
   institution of higher education authorized to grant baccalaureate       
   degrees; or                                                             
       ``(B) completed at least 24 semester credit hours or the equivalent 
   of study from an accredited institution of higher education in any of   
   the disciplines of accounting, business, finance, law, contracts,       
   purchasing, economics, industrial management, marketing, quantitative   
   methods, or organization and management.                                
     ``(f) Contingency Contracting Force.--The Secretary shall establish  
  qualification requirements for the contingency contracting force        
  consisting of members of the armed forces whose mission is to deploy in 
  support of contingency operations and other operations of the Department
  of Defense, including--                                                 
       ``(1) completion of at least 24 semester credit hours or the        
   equivalent of study from an accredited institution of higher education  
   or similar educational institution in any of the disciplines of         
   accounting, business, finance, law, contracts, purchasing, economics,   
   industrial management, marketing, quantitative methods, or organization 
   and management; or                                                      
       ``(2) passing an examination that demonstrates skills, knowledge, or
   abilities comparable to that of an individual who has completed at least
   24 semester credit hours or the equivalent of study in any of the       
   disciplines described in paragraph (1).''.                              
     (b) Clerical Amendment.--Section 1732(c)(2) of such title is amended 
  by inserting a comma after ``business''.                                
                    SEC. 825. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE  
          ACQUISITION 2005 TASK FORCE.                                            
     (a) Requirement for Report.--Not later than March 1, 2002, the       
  Secretary of Defense shall submit to the Committees on Armed Services of
  the Senate and the House of Representatives a report on the extent of   
  the implementation of the recommendations set forth in the final report 
  of the Department of Defense Acquisition 2005 Task Force, entitled      
  ``Shaping the Civilian Acquisition Workforce of the Future''.           
    (b)  Content of Report.--The report shall include the following:      

       (1) For each recommendation in the final report that is being       
   implemented or that the Secretary plans to implement--                  
       (A) a summary of all actions that have been taken to implement the  
   recommendation; and                                                     
       (B) a schedule, with specific milestones, for completing the        
   implementation of the recommendation.                                   
       (2) For each recommendation in the final report that the Secretary  
   does not plan to implement--                                            
       (A) the reasons for the decision not to implement the               
   recommendation; and                                                     
       (B) a summary of any alternative actions the Secretary plans to take
   to address the purposes underlying the recommendation.                  
       (3) A summary of any additional actions the Secretary plans to take 
   to address concerns raised in the final report about the size and       
   structure of the acquisition workforce of the Department of Defense.    
     (c) Comptroller General Review.--Not later than 60 days after the    
  date on which the Secretary submits the report required by subsection   
  (a), the Comptroller General shall--                                    
     (1) review the report; and                                            

       (2) submit to the committees referred to in subsection (a) the      
   Comptroller General's assessment of the extent to which the report--    
     (A) complies with the requirements of this section; and               

       (B) addresses the concerns raised in the final report about the size
   and structure of the acquisition workforce of the Department of Defense.
           Subtitle D--Other Matters                                               

                    SEC. 831. IDENTIFICATION OF ERRORS MADE BY EXECUTIVE AGENCIES 
          IN PAYMENTS TO CONTRACTORS AND RECOVERY OF AMOUNTS ERRONEOUSLY PAID.    
     (a) Program Required.--(1) Chapter 35 of title 31, United States     
  Code, is amended by adding at the end the following new subchapter:     

                              ``SUBCHAPTER VI--RECOVERY AUDITS                    

                    ``3561. Identification of errors made by executive agencies in
          payments to contractors and recovery of amounts erroneously paid        
     ``(a) Program Required.--The head of each executive agency that      
  enters into contracts with a total value in excess of $500,000,000 in a 
  fiscal year shall carry out a cost-effective program for identifying any
  errors made in paying the contractors and for recovering any amounts    
  erroneously paid to the contractors.                                    
     ``(b) Recovery Audits and Activities.--A program of an executive     
  agency under subsection (a) shall include recovery audits and recovery  
  activities. The head of the executive agency shall determine, in        
  accordance with guidance provided under subsection (c), the classes of  
  contracts to which recovery audits and recovery activities are          
  appropriately applied.                                                  
     ``(c) OMB Guidance.--The Director of the Office of Management and    
  Budget shall issue guidance for the conduct of programs under subsection
  (a). The guidance shall include the following:                          
       ``(1) Definitions of the terms `recovery audit' and `recovery       
   activity' for the purposes of the programs.                             
       ``(2) The classes of contracts to which recovery audits and recovery
   activities are appropriately applied under the programs.                
     ``(3) Protections for the confidentiality of--                        

       ``(A) sensitive financial information that has not been released for
   use by the general public; and                                          
     ``(B) information that could be used to identify a person.            

       ``(4) Policies and procedures for ensuring that the implementation  
   of the programs does not result in duplicative audits of contractor     
   records.                                                                
       ``(5) Policies regarding the types of contracts executive agencies  
   may use for the procurement of recovery services, including guidance for
   use, in appropriate circumstances, of a contingency contract pursuant to
   which the head of an executive agency may pay a contractor an amount    
   equal to a percentage of the total amount collected for the United      
   States pursuant to that contract.                                       
       ``(6) Protections for a contractor's records and facilities through 
   restrictions on the authority of a contractor under a contract for the  
   procurement of recovery services for an executive agency--              
       ``(A) to require the production of any record or information by any 
   person other than an officer, employee, or agent of the executive       
   agency;                                                                 
       ``(B) to establish, or otherwise have, a physical presence on the   
   property or premises of any private sector entity for the purposes of   
   performing the contract; or                                             
       ``(C) to act as agents for the Government in the recovery of funds  
   erroneously paid to contractors.                                        
       ``(7) Policies for the appropriate types of management improvement  
   programs authorized by section 3564 of this title that executive        
   agencies may carry out to address overpayment problems and the recovery 
   of overpayments.                                                        
          ``3562. Disposition of recovered funds                                  

     ``(a) Availability of Funds for Recovery Audits and Activities       
  Program.--Funds collected under a program carried out by an executive   
  agency under section 3561 of this title shall be available to the       
  executive agency for the following purposes:                            
       ``(1) To reimburse the actual expenses incurred by the executive    
   agency in the administration of the program.                            
       ``(2) To pay contractors for services under the program in          
   accordance with the guidance issued under section 3561(c)(5) of this    
   title.                                                                  
     ``(b) Funds Not Used for Program.--Any amounts erroneously paid by an
  executive agency that are recovered under such a program of an executive
  agency and are not used to reimburse expenses or pay contractors under  
  subsection (a)--                                                        
       ``(1) shall be credited to the appropriations from which the        
   erroneous payments were made, shall be merged with other amounts in     
   those appropriations, and shall be available for the purposes and period
   for which such appropriations are available; or                         
       ``(2) if no such appropriation remains available, shall be deposited
   in the Treasury as miscellaneous receipts.                              
     ``(c) Priority of Other Authorized Dispositions.--Notwithstanding    
  subsection (b), the authority under such subsection may not be exercised
  to use, credit, or deposit funds collected under such a program as      
  provided in that subsection to the extent that any other provision of   
  law requires or authorizes the crediting of such funds to a             
  nonappropriated fund instrumentality, revolving fund, working-capital   
  fund, trust fund, or other fund or account.                             
          ``3563. Sources of recovery services                                    

     ``(a) Consideration of Available Recovery Resources.--(1) In carrying
  out a program under section 3561 of this title, the head of an executive
  agency shall consider all resources available to that official to carry 
  out the program.                                                        
     ``(2) The resources considered by the head of an executive agency for
  carrying out the program shall include the resources available to the   
  executive agency for such purpose from the following sources:           
     ``(A) The executive agency.                                           

     ``(B) Other departments and agencies of the United States.            

     ``(C) Private sector sources.                                         

     ``(b) Compliance With Applicable Law and Regulations.--Before        
  entering into a contract with a private sector source for the           
  performance of services under a program of the executive agency carried 
  out under section 3561 of this title, the head of an executive agency   
  shall comply with--                                                     
       ``(1) any otherwise applicable provisions of Office of Management   
   and Budget Circular A 76; and                                           
       ``(2) any other applicable provision of law or regulation with      
   respect to the selection between employees of the United States and     
   private sector sources for the performance of services.                 
          ``3564. Management improvement programs                                 

     ``In accordance with guidance provided by the Director of the Office 
  of Management and Budget under section 3561 of this title, the head of  
  an executive agency required to carry out a program under such section  
  3561 may carry out a program for improving management processes within  
  the executive agency--                                                  
       ``(1) to address problems that contribute directly to the occurrence
   of errors in the paying of contractors of the executive agency; or      
     ``(2) to improve the recovery of overpayments due to the agency.      

          ``3565. Relationship to authority of inspectors general                 

     ``Nothing in this subchapter shall be construed as impairing the     
  authority of an Inspector General under the Inspector General Act of    
  1978 or any other provision of law.                                     
          ``3566. Privacy protections                                             

     ``Any nongovernmental entity that, in the course of recovery auditing
  or recovery activity under this subchapter, obtains information that    
  identifies an individual or with respect to which there is a reasonable 
  basis to believe that the information can be used to identify an        
  individual, may not disclose the information for any purpose other than 
  such recovery auditing or recovery activity and governmental oversight  
  of such activity, unless disclosure for that other purpose is authorized
  by the individual to the executive agency that contracted for the       
  performance of the recovery auditing or recovery activity.              
          ``3567. Definition of executive agency                                  

     ``Notwithstanding section 102 of this title, in this subchapter, the 
  term `executive agency' has the meaning given that term in section 4(1) 
  of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).''.  

     (2) The table of sections at the beginning of chapter 35 of such     
  title is amended by adding at the end the following:                    

                              ``SUBCHAPTER VI--RECOVERY AUDITS                    

            ``3561. Identification of errors made by executive agencies in    
      payments to contractors and recovery of amounts erroneously paid.       
      ``3562. Disposition of recovered funds.                                 

      ``3563. Sources of recovery services.                                   

      ``3564. Management improvement programs.                                

      ``3565. Relationship to authority of inspectors general.                

      ``3566. Privacy protections.                                            

      ``3567. Definition of executive agency.''.                              



     (b) Reports.--(1) Not later than 30 months after the date of the     
  enactment of this Act, and annually for each of the first two years     
  following the year of the first report, the Director of the Office of   
  Management and Budget shall submit to the Committee on Government Reform
  of the House of Representatives and the Committee on Governmental       
  Affairs of the Senate, a report on the implementation of subchapter VI  
  of chapter 35 of title 31, United States Code (as added by subsection   
  (a)).                                                                   
    (2) Each report shall include--                                       

       (A) a general description and evaluation of the steps taken by the  
   heads of executive agencies to carry out the programs under such        
   subchapter, including any management improvement programs carried out   
   under section 3564 of such title 31;                                    
       (B) the costs incurred by executive agencies to carry out the       
   programs under such subchapter; and                                     
     (C) the amounts recovered under the programs under such subchapter.   

     (c) Conforming Amendment.--Section 3501 of such title is amended by  
  inserting ``and subchapter VI'' after ``section 3513''.                 

                    SEC. 832. CODIFICATION AND MODIFICATION OF PROVISION OF LAW   
          KNOWN AS THE ``BERRY AMENDMENT''.                                       

     (a) Buy American Requirements.--(1) Chapter 148 of title 10, United  
  States Code, is amended by inserting after section 2533 the following   
  new section:                                                            

                    ``2533a. Requirement to buy certain articles from American    
          sources; exceptions                                                     

     ``(a) Requirement.--Except as provided in subsections (c) through    
  (h), funds appropriated or otherwise available to the Department of     
  Defense may not be used for the procurement of an item described in     
  subsection (b) if the item is not grown, reprocessed, reused, or        
  produced in the United States.                                          
     ``(b) Covered Items.--An item referred to in subsection (a) is any of
  the following:                                                          
     ``(1) An article or item of--                                         

     ``(A) food;                                                           

     ``(B) clothing;                                                       

     ``(C) tents, tarpaulins, or covers;                                   

       ``(D) cotton and other natural fiber products, woven silk or woven  
   silk blends, spun silk yarn for cartridge cloth, synthetic fabric or    
   coated synthetic fabric (including all textile fibers and yarns that are
   for use in such fabrics), canvas products, or wool (whether in the form 
   of fiber or yarn or contained in fabrics, materials, or manufactured    
   articles); or                                                           
       ``(E) any item of individual equipment manufactured from or         
   containing such fibers, yarns, fabrics, or materials.                   
     ``(2) Specialty metals, including stainless steel flatware.           

     ``(3) Hand or measuring tools.                                        

     ``(c) Availability Exception.--Subsection (a) does not apply to the  
  extent that the Secretary of Defense or the Secretary of the military   
  department concerned determines that satisfactory quality and sufficient
  quantity of any such article or item described in subsection (b)(1) or  
  specialty metals (including stainless steel flatware) grown,            
  reprocessed, reused, or produced in the United States cannot be procured
  as and when needed at United States market prices.                      
     ``(d) Exception for Certain Procurements Outside the United          
  States.--Subsection (a) does not apply to the following:                
       ``(1) Procurements outside the United States in support of combat   
   operations.                                                             
     ``(2) Procurements by vessels in foreign waters.                      

       ``(3) Emergency procurements or procurements of perishable foods by 
   an establishment located outside the United States for the personnel    
   attached to such establishment.                                         
     ``(e) Exception for Specialty Metals and Chemical Warfare Protective 
  Clothing.--Subsection (a) does not preclude the procurement of specialty
  metals or chemical warfare protective clothing produced outside the     
  United States if--                                                      
     ``(1) such procurement is necessary--                                 

       ``(A) to comply with agreements with foreign governments requiring  
   the United States to purchase supplies from foreign sources for the     
   purposes of offsetting sales made by the United States Government or    
   United States firms under approved programs serving defense             
   requirements; or                                                        
       ``(B) in furtherance of agreements with foreign governments in which
   both such governments agree to remove barriers to purchases of supplies 
   produced in the other country or services performed by sources of the   
   other country; and                                                      
       ``(2) any such agreement with a foreign government complies, where  
   applicable, with the requirements of section 36 of the Arms Export      
   Control Act (22 U.S.C. 2776) and with section 2457 of this title.       
     ``(f) Exception for Certain Foods.--Subsection (a) does not preclude 
  the procurement of foods manufactured or processed in the United States.
     ``(g) Exception for Commissaries, Exchanges, and Other               
  Nonappropriated Fund Instrumentalities.--Subsection (a) does not apply  
  to items purchased for resale purposes in commissaries, exchanges, or   
  nonappropriated fund instrumentalities operated by the Department of    
  Defense.                                                                
     ``(h) Exception for Small Purchases.--Subsection (a) does not apply  
  to purchases for amounts not greater than the simplified acquisition    
  threshold referred to in section 2304(g) of this title.                 
     ``(i) Applicability to Contracts and Subcontracts for Procurement of 
  Commercial Items.--This section is applicable to contracts and          
  subcontracts for the procurement of commercial items notwithstanding    
  section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.   
  430).                                                                   
     ``(j) Geographic Coverage.--In this section, the term `United States'
  includes the possessions of the United States.''.                       
     (2) The table of sections at the beginning of subchapter V of such   
  chapter is amended by inserting after the item relating to section 2533 
  the following new item:                                                 


            ``2533a. Requirement to buy certain articles from American        
      sources; exceptions.''.                                                 


     (b) Repeal of Source Provisions.--The following provisions of law are
  repealed:                                                               
       (1) Section 9005 of the Department of Defense Appropriations Act,   
   1993 (Public Law 102 396; 10 U.S.C. 2241 note).                         
       (2) Section 8109 of the Department of Defense Appropriations Act,   
   1997 (as contained in section 101(b) of Public Law 104 208; 110 Stat.   
   3009 111; 10 U.S.C. 2241 note).                                         
                    SEC. 833. PERSONAL SERVICES CONTRACTS TO BE PERFORMED BY      
          INDIVIDUALS OR ORGANIZATIONS ABROAD.                                    
     Section 2 of the State Department Basic Authorities Act of 1956 (22  
  U.S.C. 2669) is amended by adding at the end the following:             
       ``(n) exercise the authority provided in subsection (c), upon the   
   request of the Secretary of Defense or the head of any other department 
   or agency of the United States, to enter into personal service contracts
   with individuals to perform services in support of the Department of    
   Defense or such other department or agency, as the case may be.''.      
          SEC. 834. REQUIREMENTS REGARDING INSENSITIVE MUNITIONS.                 

     (a) Requirement To Ensure Safety.--(1) Chapter 141 of title 10,      
  United States Code, is amended by inserting after section 2388 the      
  following new section:                                                  

          ``2389. Ensuring safety regarding insensitive munitions                 

     ``The Secretary of Defense shall ensure, to the extent practicable,  
  that insensitive munitions under development or procurement are safe    
  throughout development and fielding when subject to unplanned           
  stimuli.''.                                                             

     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 2388 the following new  
  item:                                                                   


      ``2389. Ensuring safety regarding insensitive munitions.''.             



     (b) Report Requirement.--At the same time that the budgets for fiscal
  years 2003 through 2005 are submitted to Congress under section 1105(a) 
  of title 31, United States Code, the Secretary of Defense shall submit  
  to the Committees on Armed Services of the Senate and the House of      
  Representatives a report on insensitive munitions. The reports shall    
  include the following:                                                  
       (1) The number of waivers granted pursuant to Department of Defense 
   Regulation 5000.2 R (June 2001) during the preceding fiscal year,       
   together with a discussion of the justifications for the waivers.       
       (2) Identification of the funding proposed for insensitive munitions
   in the budget with which the report is submitted, together with an      
   explanation of the proposed funding.                                    
                    SEC. 835. INAPPLICABILITY OF LIMITATION TO SMALL PURCHASES OF 
          MINIATURE OR INSTRUMENT BALL OR ROLLER BEARINGS UNDER CERTAIN           
          CIRCUMSTANCES.                                                          
     (a) In General.--Section 2534 of title 10, United States Code, is    
  amended by adding at the end the following new subsection:              
     ``(j) Inapplicability to Certain Contracts To Purchase Ball Bearings 
  or Roller Bearings.--(1) This section does not apply with respect to a  
  contract or subcontract to purchase items described in subsection (a)(5)
  (relating to ball bearings and roller bearings) for which--             
     ``(A) the amount of the purchase does not exceed $2,500;              

       ``(B) the precision level of the ball or roller bearings to be      
   procured under the contract or subcontract is rated lower than the      
   rating known as Annual Bearing Engineering Committee (ABEC) 5 or Roller 
   Bearing Engineering Committee (RBEC) 5, or an equivalent of such rating;
       ``(C) at least two manufacturers in the national technology and     
   industrial base that are capable of producing the ball or roller        
   bearings have not responded to a request for quotation issued by the    
   contracting activity for that contract or subcontract; and              
       ``(D) no bearing to be procured under the contract or subcontract   
   has a basic outside diameter (exclusive of flange diameters) in excess  
   of 30 millimeters.                                                      
     ``(2) Paragraph (1) does not apply to a purchase if such purchase    
  would result in the total amount of purchases of ball bearings and      
  roller bearings to satisfy requirements under Department of Defense     
  contracts, using the authority provided in such paragraph, to exceed    
  $200,000 during the fiscal year of such purchase.''.                    
     (b) Applicability.--Subsection (j) of such section 2534 (as added by 
  subsection (a)) shall apply with respect to a contract or subcontract to
  purchase ball bearings or roller bearings entered into after the date of
  the enactment of this Act.                                              

                    SEC. 836. TEMPORARY EMERGENCY PROCUREMENT AUTHORITY TO        
          FACILITATE THE DEFENSE AGAINST TERRORISM OR BIOLOGICAL OR CHEMICAL      
          ATTACK.                                                                 
     (a) Increased Flexibility for Use of Streamlined Procedures.--The    
  following special authorities apply to procurements of property and     
  services by or for the Department of Defense for which funds are        
  obligated during fiscal year 2002 and 2003:                             
       (1) Micropurchase and simplified acquisition thresholds.--For any   
   procurement of property or services for use (as determined by the       
   Secretary of Defense) to facilitate the defense against terrorism or    
   biological or chemical attack against the United States--               
       (A) the amount specified in subsections (c), (d), and (f) of section
   32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428) shall
   be deemed to be $15,000 in the administration of that section with      
   respect to such procurement; and                                        
       (B) the term ``simplified acquisition threshold'' means, in the case
   of any contract to be awarded and performed, or purchase to be made--   
       (i) inside the United States in support of a contingency operation, 
   $250,000; or                                                            
       (ii) outside the United States in support of a contingency          
   operation, $500,000.                                                    
       (2) Commercial item treatment for procurements of                   
   biotechnology.--For any procurement of biotechnology property or        
   biotechnology services for use (as determined by the Secretary of       
   Defense) to facilitate the defense against terrorism or biological      
   attack against the United States, the procurement shall be treated as   
   being a procurement of commercial items.                                
     (b) Recommendations for Additional Emergency Procurement Authority To
  Support Anti-Terrorism Operations.--Not later than March 1, 2002, the   
  Secretary of Defense shall submit to the Committees on Armed Services of
  the Senate and the House of Representatives a report containing the     
  Secretary's recommendations for additional emergency procurement        
  authority that the Secretary (subject to the direction of the President)
  determines necessary to support operations carried out to combat        
  terrorism.                                                              
     (c) Termination of Authority.--No contract may be entered into       
  pursuant to the authority provided in subsection (a) after September 30,
  2003.                                                                   

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT             


             SUBTITLE A--DUTIES AND FUNCTIONS OF DEPARTMENT OF DEFENSE OFFICERS   

      Sec. 901. Deputy Under Secretary of Defense for Personnel and Readiness.

            Sec. 902. Sense of Congress on functions of new Office of Force   
      Transformation in the Office of the Secretary of Defense.               
            Sec. 903. Suspension of reorganization of engineering and         
      technical authority policy within the Naval Sea Systems Command pending 
      report to congressional committees.                                     
                                SUBTITLE B--SPACE ACTIVITIES                      

      Sec. 911. Joint management of space programs.                           

            Sec. 912. Requirement to establish in the Air Force an officer    
      career field for space.                                                 
      Sec. 913. Secretary of Defense report on space activities.              

            Sec. 914. Comptroller General assessment of implementation of     
      recommendations of Space Commission.                                    
            Sec. 915. Sense of Congress regarding officers recommended to be  
      appointed to serve as Commander of United States Space Command.         
                                     SUBTITLE C--REPORTS                          

            Sec. 921. Revised requirement for Chairman of the Joint Chiefs of 
      Staff to advise Secretary of Defense on the assignment of roles and     
      missions to the Armed Forces.                                           
            Sec. 922. Revised requirements for content of annual report on    
      joint warfighting experimentation.                                      
            Sec. 923. Repeal of requirement for one of three remaining        
      required reports on activities of Joint Requirements Oversight Council. 
            Sec. 924. Revised joint report on establishment of national       
      collaborative information analysis capability.                          
                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 931. Conforming amendments relating to change of name of     
      Military Airlift Command to Air Mobility Command.                       
            Sec. 932. Organizational realignment for Navy Director for        
      Expeditionary Warfare.                                                  

             SUBTITLE A--DUTIES AND FUNCTIONS OF DEPARTMENT OF DEFENSE OFFICERS   


          SEC. 901. DEPUTY UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND READINESS.

     (a) Establishment of Position.--(1) Chapter 4 of title 10, United    
  States Code, is amended by inserting after section 136 the following new
  section:                                                                
          ``136a. Deputy Under Secretary of Defense for Personnel and Readiness   

     ``(a) There is a Deputy Under Secretary of Defense for Personnel and 
  Readiness, appointed from civilian life by the President, by and with   
  the advice and consent of the Senate.                                   
     ``(b) The Deputy Under Secretary of Defense for Personnel and        
  Readiness shall assist the Under Secretary of Defense for Personnel and 
  Readiness in the performance of the duties of that position. The Deputy 
  Under Secretary of Defense for Personnel and Readiness shall act for,   
  and exercise the powers of, the Under Secretary when the Under Secretary
  is absent or disabled.''.                                               
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 136 the following new   
  item:                                                                   


            ``136a. Deputy Under Secretary of Defense for Personnel and       
      Readiness.''.                                                           


     (b) Executive Level IV.--Section 5315 of title 5, United States Code,
  is amended by inserting after ``Deputy Under Secretary of Defense for   
  Policy.'' the following:                                                
     ``Deputy Under Secretary of Defense for Personnel and Readiness.''.   

     (c) Reduction in Number of Assistant Secretaries of Defense.--(1)    
  Section 138(a) of title 10, United States Code, is amended by striking  
  ``nine'' and inserting ``eight''.                                       
     (2) Section 5315 of title 5, United States Code, is amended by       
  striking ``(9)'' after ``Assistant Secretaries of Defense'' and         
  inserting ``(8)''.                                                      
     (d) Effective Date.--The amendments made by subsection (c) shall take
  effect on the date on which a person is first appointed as Deputy Under 
  Secretary of Defense for Personnel and Readiness.                       

                    SEC. 902. SENSE OF CONGRESS ON FUNCTIONS OF NEW OFFICE OF     
          FORCE TRANSFORMATION IN THE OFFICE OF THE SECRETARY OF DEFENSE.         
    (a)  Findings.--Congress finds the following:                         

       (1) The Armed Forces should give careful consideration to           
   implementing transformation to meet operational challenges and exploit  
   opportunities resulting from changes in the threat environment and the  
   emergence of new technologies.                                          
       (2) The Department of Defense 2001 Quadrennial Defense Review       
   Report, issued by the Secretary of Defense on September 30, 2001, states
   that `The purpose of transformation is to maintain or improve U.S.      
   military preeminence in the face of potential disproportionate          
   discontinuous changes in the strategic environment. Transformation must 
   therefore be focused on emerging strategic and operational challenges   
   and the opportunities created by these challenges.''.                   
       (3) That report further states that ``To support the transformation 
   effort, and to foster innovation and experimentation, the Department    
   will establish a new office reporting directly to the Secretary and     
   Deputy Secretary of Defense.''.                                         
     (b) Sense of Congress on Functions of Office of Force                
  Transformation.--It is the sense of Congress that the Director of the   
  Office of Force Transformation within the Office of the Secretary of    
  Defense should advise the Secretary on--                                
       (1) development of force transformation strategies to ensure that   
   the military of the future is prepared to dissuade potential military   
   competitors and, if that fails, to fight and win decisively across the  
   spectrum of future conflict;                                            
     (2) ensuring a continuous and broadly focused transformation process; 

       (3) service and joint acquisition and experimentation efforts,      
   funding for experimentation efforts, promising operational concepts and 
   technologies, and other transformation activities, as appropriate; and  
       (4) development of service and joint operational concepts,          
   transformation implementation strategies, and risk management           
   strategies.                                                             
     (c) Sense of Congress on Funding.--It is the sense of Congress that  
  the Secretary of Defense should consider providing funding adequate for 
  sponsoring selective prototyping efforts, war games, and studies and    
  analyses and for appropriate staffing, as recommended by the Director of
  the Office of Force Transformation referred to in subsection (b).       

                    SEC. 903. SUSPENSION OF REORGANIZATION OF ENGINEERING AND     
          TECHNICAL AUTHORITY POLICY WITHIN THE NAVAL SEA SYSTEMS COMMAND PENDING 
          REPORT TO CONGRESSIONAL COMMITTEES.                                     
     (a) Suspension of Reorganization.--During the period specified in    
  subsection (b), the Secretary of the Navy may not grant final approval  
  for any reorganization in engineering or technical authority policy for 
  the Naval Sea Systems Command or any of the subsidiary activities of    
  that command.                                                           
     (b) Report.--Subsection (a) applies during the period beginning on   
  the date of the enactment of this Act and ending 45 days after the date 
  on which the Secretary submits to the congressional defense committees a
  report that sets forth in detail the Navy's plans and justification for 
  the reorganization of engineering and technical authority policy within 
  the Naval Sea Systems Command.                                          

           Subtitle B--Space Activities                                            


          SEC. 911. JOINT MANAGEMENT OF SPACE PROGRAMS.                           

     (a) In General.--Part IV of subtitle A of title 10, United States    
  Code, is amended by inserting after chapter 134 the following new       
  chapter:                                                                
                                ``CHAPTER 135--SPACE PROGRAMS                     


 ``Sec.                                                                  

            ``2271. Management of space programs: joint program offices and   
      officer management programs.                                            

                    ``2271. Management of space programs: joint program offices   
          and officer management programs                                         

     ``(a) Joint Program Offices.--The Secretary of Defense shall take    
  appropriate actions to ensure, to the maximum extent practicable, that  
  space development and acquisition programs of the Department of Defense 
  are carried out through joint program offices.                          

     ``(b) Officer Management Programs.--(1) The Secretary of Defense     
  shall take appropriate actions to ensure, to the maximum extent         
  practicable, that--                                                     
       ``(A) Army, Navy, and Marine Corps officers, as well as Air Force   
   officers, are assigned to the space development and acquisition programs
   of the Department of Defense; and                                       
       ``(B) Army, Navy, and Marine Corps officers, as well as Air Force   
   officers, are eligible, on the basis of qualification, to hold          
   leadership positions within the joint program offices referred to in    
   subsection (a).                                                         
     ``(2) The Secretary of Defense shall designate those positions in the
  Office of the National Security Space Architect of the Department of    
  Defense (or any successor office) that qualify as joint duty assignment 
  positions for purposes of chapter 38 of this title.''.                  
     (b) Clerical Amendment.--The tables of chapters at the beginning of  
  such subtitle and the beginning of part IV of such subtitle are amended 
  by inserting after the item relating to chapter 134 the following new   
  item:                                                                   


         ``135. Space Programs                                                  

        2271''.                                                                


                    SEC. 912. REQUIREMENT TO ESTABLISH IN THE AIR FORCE AN OFFICER
          CAREER FIELD FOR SPACE.                                                 
     (a) In General.--Chapter 807 of title 10, United States Code, is     
  amended by adding at the end the following new section:                 

          ``8084. Officer career field for space                                  

     ``The Secretary of the Air Force shall establish and implement       
  policies and procedures to develop a career field for officers in the   
  Air Force with technical competence in space-related matters to have the
  capabilty to--                                                          
     ``(1) develop space doctrine and concepts of space operations;        

     ``(2) develop space systems; and                                      

     ``(3) operate space systems.''.                                       


     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    


      ``8084. Officer career field for space.''.                              


          SEC. 913. SECRETARY OF DEFENSE REPORT ON SPACE ACTIVITIES.              

     (a) Report.--(1) Not later than March 15, 2002, the Secretary of     
  Defense shall submit to the Committee on Armed Services of the Senate   
  and the Committee on Armed Services of the House of Representatives a   
  report on problems in the management and organization of the Department 
  of Defense for space activities that were identified in the report of   
  the Space Commission, including a description of the actions taken by   
  the Secretary to address those problems.                                
     (2) For purposes of paragraph (1), the term ``report of the Space    
  Commission'' means the report of the Commission To Assess United States 
  National Security Space Management and Organization, dated January 11,  
  2001, and submitted to Congress under section 1623 of the National      
  Defense Authorization Act for Fiscal Year 2000 (Public Law 106 65; 113  
  Stat. 815).                                                             
     (b) Matters To Be Included.--The report of the Secretary of Defense  
  under subsection (a) shall include a description of, and rationale for, 
  each of the following:                                                  
       (1) Actions taken by the Secretary of Defense to realign management 
   authorities and responsibilities for space programs of the Department of
   Defense.                                                                
     (2) Steps taken to--                                                  

       (A) establish a career field for officers in the Air Force with     
   technical competence in space-related matters, in accordance with       
   section 8084 of title 10, United States Code, as added by section 912;  
       (B) ensure that officers in that career field are treated fairly and
   objectively within the overall Air Force officer personnel system; and  
       (C) ensure that the primary responsibility for management of that   
   career field is assigned appropriately.                                 
       (3) Other steps taken within the Air Force to ensure proper priority
   for development of space systems.                                       
       (4) Steps taken to ensure that the interests of the Army, the Navy, 
   and the Marine Corps in development and acquisition of space systems,   
   and in the operations of space systems, are protected.                  
       (5) Steps taken by the Office of the Secretary of Defense and the   
   military departments to ensure that the Army, Navy, and Marine Corps    
   continue to develop military and civilian personnel with the required   
   expertise in space system development, acquisition, management, and     
   operation.                                                              
       (6) Steps taken to ensure adequate oversight by the Office of the   
   Secretary of Defense of the actions of the Under Secretary of the Air   
   Force as the acquisition executive for Department of Defense space      
   programs.                                                               
       (7) Steps taken to improve oversight of the level of funding        
   provided for space programs and the level of personnel resources        
   provided for space programs.                                            

                    SEC. 914. COMPTROLLER GENERAL ASSESSMENT OF IMPLEMENTATION OF 
          RECOMMENDATIONS OF SPACE COMMISSION.                                    
     (a) Assessment.--(1) The Comptroller General shall carry out an      
  assessment through February 15, 2003, of the actions taken by the       
  Secretary of Defense in implementing the recommendations in the report  
  of the Space Commission that are applicable to the Department of        
  Defense.                                                                
     (2) For purposes of paragraph (1), the term ``report of the Space    
  Commission'' means the report of the Commission To Assess United States 
  National Security Space Management and Organization, dated January 11,  
  2001, and submitted to Congress under section 1623 of the National      
  Defense Authorization Act for Fiscal Year 2000 (Public Law 106 65; 113  
  Stat. 815).                                                             
     (b) Reports.--Not later than February 15 of each of 2002 and 2003,   
  the Comptroller General shall submit to the Committee on Armed Services 
  of the Senate and the Committee on Armed Services of the House of       
  Representatives a report on the assessment carried out under subsection 
  (a). Each report shall set forth the results of the assessment as of the
  date of such report.                                                    

                    SEC. 915. SENSE OF CONGRESS REGARDING OFFICERS RECOMMENDED TO 
          BE APPOINTED TO SERVE AS COMMANDER OF UNITED STATES SPACE COMMAND.      
     It is the sense of Congress that the position of commander of the    
  United States Space Command, a position of importance and responsibility
  designated by the President under section 601 of title 10, United States
  Code, to carry the grade of general or admiral and covered by section   
  604 of that title, relating to recommendations by the Secretary of      
  Defense for appointment of officers to certain four-star joint officer  
  positions, should by filled by the best qualified officer of the Army,  
  Navy, Air Force, or Marine Corps, rather than by officers from the same 
  armed force that has traditionally provided officers for that position. 
                                     SUBTITLE C--REPORTS                          


                    SEC. 921. REVISED REQUIREMENT FOR CHAIRMAN OF THE JOINT CHIEFS
          OF STAFF TO ADVISE SECRETARY OF DEFENSE ON THE ASSIGNMENT OF ROLES AND  
          MISSIONS TO THE ARMED FORCES.                                           
     (a) Assessment During Quadrennial Defense Review.--Section 118(e) of 
  title 10, United States Code, is amended--                              
     (1) by inserting ``(1)'' after ``(e)  CJCS Review.--'';               

       (2) by designating the second and third sentences as paragraph (3); 
   and                                                                     
       (3) by inserting after paragraph (1), as designated by paragraph (1)
   of this subsection, the following new paragraph:                        
     ``(2) The Chairman shall include as part of that assessment the      
  Chairman's assessment of the assignment of functions (or roles and      
  missions) to the armed forces, together with any recommendations for    
  changes in assignment that the Chairman considers necessary to achieve  
  maximum efficiency of the armed forces. In preparing the assessment     
  under this paragraph, the Chairman shall consider (among other matters) 
  the following:                                                          
     ``(A) Unnecessary duplication of effort among the armed forces.       

       ``(B) Changes in technology that can be applied effectively to      
   warfare.''.                                                             
     (b) Repeal of Requirement for Triennial Report on Assignment of Roles
  and Missions.--Section 153 of such title is amended--                   
     (1) by striking ``(a)  Planning; Advice; Policy Formulation.--''; and 

     (2) by striking subsection (b).                                       

     (c) Assessment With Respect to 2001 QDR.--With respect to the 2001   
  Quadrennial Defense Review, the Chairman of the Joint Chiefs of Staff   
  shall submit to Congress a separate assessment of functions (or roles   
  and missions) of the Armed Forces in accordance with paragraph (2) of   
  section 118(e) of title 10, United States Code, as added by subsection  
  (a)(3). Such assessment shall be based on the findings in the 2001      
  Quadrennial Defense Review, issued by the Secretary of Defense on       
  September 30, 2001, and shall be submitted to Congress not later than   
  one year after the date of the enactment of this Act.                   

                    SEC. 922. REVISED REQUIREMENTS FOR CONTENT OF ANNUAL REPORT ON
          JOINT WARFIGHTING EXPERIMENTATION.                                      
    Section 485(b) of title 10, United States Code, is amended--          

     (1) in paragraph (4)(E)--                                             

     (A) by inserting ``(by lease or by purchase)'' after ``acquire''; and 

       (B) by inserting ``(including any prototype)'' after ``or           
   equipment''; and                                                        
     (2) by adding at the end the following new paragraph:                 

       ``(6) A specific assessment of whether there is a need for a major  
   force program for funding--                                             
     ``(A) joint warfighting experimentation; and                          

       ``(B) the development and acquisition of any technology the value of
   which has been empirically demonstrated through such experimentation.''.

                    SEC. 923. REPEAL OF REQUIREMENT FOR ONE OF THREE REMAINING    
          REQUIRED REPORTS ON ACTIVITIES OF JOINT REQUIREMENTS OVERSIGHT COUNCIL. 
     Section 916 of the Floyd D. Spence National Defense Authorization Act
  for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114    
  Stat. 1654A 231) is amended--                                           
       (1) in the section heading, by striking `` Semiannual Report'' and  
   inserting `` Reports'';                                                 
     (2) in subsection (a)--                                               

       (A) by striking `` Semiannual Report'' in the subsection heading and
   inserting `` Reports Required''; and                                    
     (B) by striking ``five semiannual''; and                              

     (3) in subsection (b)--                                               

     (A) by striking ``September 1, 2002,''; and                           

       (B) by striking the period at the end of the last sentence and      
   inserting ``, except that the last report shall cover all of the        
   preceding fiscal year.''.                                               

                    SEC. 924. REVISED JOINT REPORT ON ESTABLISHMENT OF NATIONAL   
          COLLABORATIVE INFORMATION ANALYSIS CAPABILITY.                          
     (a) Revised Report.--At the same time as the submission of the budget
  for fiscal year 2003 under section 1105 of title 31, United States Code,
  the Secretary of Defense and the Director of Central Intelligence shall 
  submit to the congressional defense committees and the congressional    
  intelligence committees a revised report assessing alternatives for the 
  establishment of a national collaborative information analysis          
  capability.                                                             
     (b) Matters Included.--The revised report shall cover the same       
  matters required to be included in the DOD/CIA report, except that the  
  alternative architectures assessed in the revised report shall be       
  limited to architectures that include the participation of all Federal  
  agencies involved in the collection of intelligence. The revised report 
  shall also identify any issues that would require legislative or        
  regulatory changes in order to implement the preferred architecture     
  identified in the revised report.                                       
     (c) Officials To Be Consulted.--The revised report shall be prepared 
  after consultation with all appropriate Federal officials, including the
  following:                                                              
     (1) The Secretary of the Treasury.                                    

     (2) The Secretary of Commerce.                                        

     (3) The Secretary of State.                                           

     (4) The Attorney General.                                             

     (5) The Director of the Federal Bureau of Investigation.              

     (6) The Administrator of the Drug Enforcement Administration.         

    (d)  Definitions.--In this section:                                   

       (1) Dod/cia report.--The term ``DOD/CIA report'' means the joint    
   report required by section 933 of the Floyd D. Spence National Defense  
   Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
   Law 106 398; 114 Stat. 1654A 237).                                      
       (2) Congressional intelligence committees.--The term ``congressional
   intelligence committees'' means the Select Committee on Intelligence of 
   the Senate and the Permanent Select Committee on Intelligence of the    
   House of Representatives.                                               

           Subtitle D--Other Matters                                               


                    SEC. 931. CONFORMING AMENDMENTS RELATING TO CHANGE OF NAME OF 
          MILITARY AIRLIFT COMMAND TO AIR MOBILITY COMMAND.                       

     (a) Current References in Title 10 , United States Code.--Section    
  2554(d) of title 10, United States Code, and section 2555(a) of such    
  title (relating to transportation services for international Girl Scout 
  events) are amended by striking ``Military Airlift Command'' and        
  inserting ``Air Mobility Command''.                                     
     (b) Repeal of Obsolete Provision.--Section 8074 of such title is     
  amended by striking subsection (c).                                     
     (c) References in Title 37 , United States Code.--Sections 430(c) and
  432(b) of title 37, United States Code, are amended by striking         
  ``Military Airlift Command'' and inserting ``Air Mobility Command''.    

                    SEC. 932. ORGANIZATIONAL REALIGNMENT FOR NAVY DIRECTOR FOR    
          EXPEDITIONARY WARFARE.                                                  
     Section 5038(a) of title 10, United States Code, is amended by       
  striking ``Office of the Deputy Chief of Naval Operations for Resources,
  Warfare Requirements, and Assessments'' and inserting ``office of the   
  Deputy Chief of Naval Operations with responsibility for warfare        
  requirements and programs''.                                            

           TITLE X--GENERAL PROVISIONS                                             


                    SUBTITLE A--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL          

      Sec. 1001. Transfer authority.                                          

      Sec. 1002. Incorporation of classified annex.                           

            Sec. 1003. Authorization of supplemental appropriations for fiscal
      year 2001.                                                              
            Sec. 1004. United States contribution to NATO common-funded       
      budgets in fiscal year 2002.                                            
            Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
      operations for fiscal year 2002.                                        
      Sec. 1006. Maximum amount for National Foreign Intelligence Program.    

            Sec. 1007. Clarification of applicability of interest penalties   
      for late payment of interim payments due under contracts for services.  
      Sec. 1008. Reliability of Department of Defense financial statements.   

            Sec. 1009. Financial Management Modernization Executive Committee 
      and financial feeder systems compliance process.                        
            Sec. 1010. Authorization of funds for ballistic missile defense   
      programs or combating terrorism programs of the Department of Defense.  
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                

            Sec. 1011. Authority to transfer naval vessels to certain foreign 
      countries.                                                              
      Sec. 1012 Sale of Glomar Explorer to the lessee.                        

            Sec. 1013. Leasing of Navy ships for university national          
      oceanographic laboratory system.                                        
            Sec. 1014. Increase in limitations on administrative authority of 
      the Navy to settle admiralty claims.                                    
                             SUBTITLE C--COUNTER-DRUG ACTIVITIES                  

            Sec. 1021. Extension and restatement of authority to provide      
      Department of Defense support for counter-drug activities of other      
      governmental agencies.                                                  
            Sec. 1022. Extension of reporting requirement regarding Department
      of Defense expenditures to support foreign counter-drug activities.     
            Sec. 1023. Authority to transfer Tracker aircraft currently used  
      by Armed Forces for counter-drug purposes.                              
            Sec. 1024. Limitation on use of funds for operation of Tethered   
      Aerostat Radar System pending submission of required report.            
                                SUBTITLE D--STRATEGIC FORCES                      

            Sec. 1031. Repeal of limitation on retirement or dismantlement of 
      strategic nuclear delivery systems.                                     
      Sec. 1032. Air Force bomber force structure.                            

      Sec. 1033. Additional element for revised nuclear posture review.       

            Sec. 1034. Report on options for modernization and enhancement of 
      missile wing helicopter support.                                        
                     SUBTITLE E--OTHER DEPARTMENT OF DEFENSE PROVISIONS           

            Sec. 1041. Secretary of Defense recommendation on need for        
      Department of Defense review of proposed Federal agency actions to      
      consider possible impact on national defense.                           
            Sec. 1042. Department of Defense reports to Congress to be        
      accompanied by electronic version upon request.                         
      Sec. 1043. Department of Defense gift authorities.                      

            Sec. 1044. Acceleration of research, development, and production  
      of medical countermeasures for defense against biological warfare       
      agents.                                                                 
            Sec. 1045. Chemical and biological protective equipment for       
      military personnel and civilian employees of the Department of Defense. 
            Sec. 1046. Sale of goods and services by Naval Magazine, Indian   
      Island, Alaska.                                                         
            Sec. 1047. Report on procedures and guidelines for embarkation of 
      civilian guests on naval vessels for public affairs purposes.           
      Sec. 1048. Technical and clerical amendments.                           

            Sec. 1049. Termination of referendum requirement regarding        
      continuation of military training on island of Vieques, Puerto Rico, and
      imposition of additional conditions on closure of live-fire training    
      range.                                                                  
                                  SUBTITLE F--OTHER MATTERS                       

      Sec. 1061. Assistance for firefighters.                                 

            Sec. 1062. Extension of times for Commission on the Future of the 
      United States Aerospace industry to report and to terminate.            
      Sec. 1063. Appropriations to Radiation Exposure Compensation Trust Fund.

            Sec. 1064. Waiver of vehicle weight limits during periods of      
      national emergency.                                                     
            Sec. 1065. Repair, restoration, and preservation of Lafayette     
      Escadrille Memorial, Marnes-la-Coquette, France.                        

           Subtitle A--Financial Matters                                           

          SEC. 1001. TRANSFER AUTHORITY.                                          

     (a) Authority To Transfer Authorizations.--(1) Upon determination by 
  the Secretary of Defense that such action is necessary in the national  
  interest, the Secretary may transfer amounts of authorizations made     
  available to the Department of Defense in this division for fiscal year 
  2002 between any such authorizations for that fiscal year (or any       
  subdivisions thereof). Amounts of authorizations so transferred shall be
  merged with and be available for the same purposes as the authorization 
  to which transferred.                                                   
     (2) The total amount of authorizations that the Secretary may        
  transfer under the authority of this section may not exceed             
  $2,000,000,000.                                                         
     (b) Limitations.--The authority provided by this section to transfer 
  authorizations--                                                        
       (1) may only be used to provide authority for items that have a     
   higher priority than the items from which authority is transferred; and 
       (2) may not be used to provide authority for an item that has been  
   denied authorization by Congress.                                       
     (c) Effect on Authorization Amounts.--A transfer made from one       
  account to another under the authority of this section shall be deemed  
  to increase the amount authorized for the account to which the amount is
  transferred by an amount equal to the amount transferred.               
     (d) Notice to Congress.--The Secretary shall promptly notify Congress
  of each transfer made under subsection (a).                             

          SEC. 1002. [H1002]. INCORPORATION OF CLASSIFIED ANNEX.                  

     (a) Status of Classified Annex.--The Classified Annex prepared by the
  committee of conference to accompany the conference report on the bill  
  S. 1438 of the One Hundred Seventh Congress and transmitted to the      
  President is hereby incorporated into this Act.                         
     (b) Construction With Other Provisions of Act.--The amounts specified
  in the Classified Annex are not in addition to amounts authorized to be 
  appropriated by other provisions of this Act.                           
     (c) Limitation on Use of Funds.--Funds appropriated pursuant to an   
  authorization contained in this Act that are made available for a       
  program, project, or activity referred to in the Classified Annex may   
  only be expended for such program, project, or activity in accordance   
  with such terms, conditions, limitations, restrictions, and requirements
  as are set out for that program, project, or activity in the Classified 
  Annex.                                                                  
     (d) Distribution of Classified Annex.--The President shall provide   
  for appropriate distribution of the Classified Annex, or of appropriate 
  portions of the annex, within the executive branch of the Government.   

                    SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR   
          FISCAL YEAR 2001.                                                       
     Amounts authorized to be appropriated to the Department of Defense   
  for fiscal year 2001 in the Floyd D. Spence National Defense            
  Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
  Law 106 398) are hereby adjusted, with respect to any such authorized   
  amount, by the amount by which appropriations pursuant to such          
  authorization were increased (by a supplemental appropriation) or       
  decreased (by a rescission), or both, in title I of the Supplemental    
  Appropriations Act, 2001 (Public Law 107 20).                           

                    SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED   
          BUDGETS IN FISCAL YEAR 2002.                                            
     (a) Fiscal Year 2002 Limitation.--The total amount contributed by the
  Secretary of Defense in fiscal year 2002 for the common-funded budgets  
  of NATO may be any amount up to, but not in excess of, the amount       
  specified in subsection (b) (rather than the maximum amount that would  
  otherwise be applicable to those contributions under the fiscal year    
  1998 baseline limitation).                                              
     (b) Total Amount.--The amount of the limitation applicable under     
  subsection (a) is the sum of the following:                             
       (1) The amounts of unexpended balances, as of the end of fiscal year
   2001, of funds appropriated for fiscal years before fiscal year 2002 for
   payments for those budgets.                                             
     (2) The amount specified in subsection (c)(1).                        

     (3) The amount specified in subsection (c)(2).                        

       (4) The total amount of the contributions authorized to be made     
   under section 2501.                                                     
     (c) Authorized Amounts.--Amounts authorized to be appropriated by    
  titles II and III of this Act are available for contributions for the   
  common-funded budgets of NATO as follows:                               
       (1) Of the amount provided in section 201(1), $708,000 for the Civil
   Budget.                                                                 
       (2) Of the amount provided in section 301(a)(1), $175,849,000 for   
   the Military Budget.                                                    
    (d)  Definitions.--For purposes of this section:                      

       (1) Common-funded budgets of nato.--The term ``common-funded budgets
   of NATO'' means the Military Budget, the Security Investment Program,   
   and the Civil Budget of the North Atlantic Treaty Organization (and any 
   successor or additional account or program of NATO).                    

       (2) Fiscal year 1998 baseline limitation.--The term ``fiscal year   
   1998 baseline limitation'' means the maximum annual amount of Department
   of Defense contributions for common-funded budgets of NATO that is set  
   forth as the annual limitation in section 3(2)(C)(ii) of the resolution 
   of the Senate giving the advice and consent of the Senate to the        
   ratification of the Protocols to the North Atlantic Treaty of 1949 on   
   the Accession of Poland, Hungary, and the Czech Republic (as defined in 
   section 4(7) of that resolution), approved by the Senate on April 30,   
   1998.                                                                   
                    SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND KOSOVO          
          PEACEKEEPING OPERATIONS FOR FISCAL YEAR 2002.                           
     (a) Limitation.--Of the amounts authorized to be appropriated by     
  section 301(a)(24) for the Overseas Contingency Operations Transfer     
  Fund--                                                                  
       (1) no more than $1,315,600,000 may be obligated for incremental    
   costs of the Armed Forces for Bosnia peacekeeping operations; and       
       (2) no more than $1,528,600,000 may be obligated for incremental    
   costs of the Armed Forces for Kosovo peacekeeping operations.           
     (b) Presidential Waiver.--The President may waive the limitation in  
  subsection (a)(1), or the limitation in subsection (a)(2), after        
  submitting to Congress the following:                                   
       (1) The President's written certification that the waiver is        
   necessary in the national security interests of the United States.      
       (2) The President's written certification that exercising the waiver
   will not adversely affect the readiness of United States military       
   forces.                                                                 
     (3) A report setting forth the following:                             

       (A) The reasons that the waiver is necessary in the national        
   security interests of the United States.                                
       (B) The specific reasons that additional funding is required for the
   continued presence of United States military forces participating in, or
   supporting, Bosnia peacekeeping operations, or Kosovo peacekeeping      
   operations, as the case may be, for fiscal year 2002.                   
       (C) A discussion of the impact on the military readiness of United  
   States Armed Forces of the continuing deployment of United States       
   military forces participating in, or supporting, Bosnia peacekeeping    
   operations, or Kosovo peacekeeping operations, as the case may be.      
       (4) A supplemental appropriations request for the Department of     
   Defense for such amounts as are necessary for the additional fiscal year
   2002 costs associated with United States military forces participating  
   in, or supporting, Bosnia or Kosovo peacekeeping operations.            
     (c) Peacekeeping Operations Defined.--For the purposes of this       
  section:                                                                
       (1) The term ``Bosnia peacekeeping operations'' has the meaning     
   given such term in section 1004(e) of the Strom Thurmond National       
   Defense Authorization Act for Fiscal Year 1999 (Public Law 105 261; 112 
   Stat. 2112).                                                            
     (2) The term ``Kosovo peacekeeping operations''--                     

       (A) means the operation designated as Operation Joint Guardian and  
   any other operation involving the participation of any of the Armed     
   Forces in peacekeeping or peace enforcement activities in and around    
   Kosovo; and                                                             
       (B) includes, with respect to Operation Joint Guardian or any such  
   other operation, each activity that is directly related to the support  
   of the operation.                                                       

          SEC. 1006. MAXIMUM AMOUNT FOR NATIONAL FOREIGN INTELLIGENCE PROGRAM.    

     The total amount authorized to be appropriated for the National      
  Foreign Intelligence Program for fiscal year 2002 is the sum of the     
  following:                                                              
       (1) The total amount set forth for the National Foreign Intelligence
   Program for fiscal year 2002 in the message of the President to Congress
   transmitted by the President on June 27, 2001, and printed as House     
   Document 107 92, captioned ``Communication of the President of the      
   United States Transmitting Requests for Fiscal Year 2002 Budget         
   Amendments for the Department of Defense''.                             
       (2) The total amount, if any, appropriated for the National Foreign 
   Intelligence Program for fiscal year 2002 pursuant to the 2001 Emergency
   Supplemental Appropriations Act for Recovery from and Response to       
   Terrorist Attacks on the United States (Public Law 107 38; 115 Stat. 220
   221).                                                                   
       (3) The total amount, if any, appropriated for the National Foreign 
   Intelligence Program for fiscal year 2002 in any law making supplemental
   appropriations for fiscal year 2002 that is enacted during the second   
   session of the 107th Congress.                                          
                    SEC. 1007. CLARIFICATION OF APPLICABILITY OF INTEREST         
          PENALTIES FOR LATE PAYMENT OF INTERIM PAYMENTS DUE UNDER CONTRACTS FOR  
          SERVICES.                                                               
     Section 1010(d) of the Floyd D. Spence National Defense Authorization
  Act for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114
  Stat. 1654A 251) is amended by inserting before the period at the end of
  the first sentence the following: ``, and shall apply with respect to   
  interim payments that are due on or after such date under contracts     
  entered into before, on, or after that date''.                          

          SEC. 1008. RELIABILITY OF DEPARTMENT OF DEFENSE FINANCIAL STATEMENTS.   

     (a) Annual Report on Reliability.--(1) Not later than September 30 of
  each year but subject to subsection (f), the Secretary of Defense shall 
  submit to the recipients specified in paragraph (3) a report on the     
  reliability of the Department of Defense financial statements, including
  the financial statements of each component of the Department that is    
  required to prepare a financial statement under section 3515(c) of title
  31, United States Code.                                                 
    (2) The annual report shall contain the following:                    

       (A) A conclusion regarding whether the policies and procedures of   
   the Department of Defense, and the systems used within the Department of
   Defense, for the preparation of financial statements allow the          
   achievement of reliability in those financial statements.               
       (B) For each of the financial statements prepared for the Department
   of Defense for the fiscal year in which the report is submitted, a      
   conclusion regarding the expected reliability of the financial statement
   (evaluated on the basis of Office of Management and Budget guidance on  
   financial statements), together with a discussion of the major          
   deficiencies to be expected in the statement.                           
       (C) A summary of the specific sections of the annual Financial      
   Management Improvement Plan of the Department of Defense, current as of 
   the date of the report, that--                                          
       (i) detail the priorities, milestones, and measures of success that 
   apply to the preparation of the financial statements;                   
       (ii) detail the planned improvements in the process for the         
   preparation of financial statements that are to be implemented within 12
   months after the date on which the plan is issued; and                  
       (iii) provide an estimate of when each financial statement will     
   convey reliable information.                                            
    (3) The annual report shall be submitted to the following:            

       (A) The Committee on Armed Services and the Committee on            
   Governmental Affairs of the Senate.                                     
       (B) The Committee on Armed Services and the Committee on Government 
   Reform of the House of Representatives.                                 
     (C) The Director of the Office of Management and Budget.              

     (D) The Secretary of the Treasury.                                    

     (E) The Comptroller General of the United States.                     


     (4) The Secretary of Defense shall make a copy of the annual report  
  available to the Inspector General of the Department of Defense.        
     (b) Minimization of Use of Resources for Unreliable Financial        
  Statements.--(1) With respect to each financial statement for a fiscal  
  year that the Secretary of Defense assesses as being expected to be     
  unreliable in the annual report under subsection (a), the Under         
  Secretary of Defense (Comptroller) shall take appropriate actions to    
  minimize, consistent with the benefits to be derived, the resources     
  (including contractor support) that are used to develop, compile, and   
  report the financial statement.                                         
     (2) With the annual budget justifications for the Department of      
  Defense submitted to Congress each year, the Under Secretary of Defense 
  (Comptroller) shall submit, with respect to the fiscal year in which    
  submitted, the preceding fiscal year, and the following fiscal year, the
  following information:                                                  
       (A) An estimate of the resources that the Department of Defense is  
   saving or expects to save as a result of actions taken and to be taken  
   under paragraph (1) with respect to the preparation of financial        
   statements.                                                             
       (B) A discussion of how the resources saved as estimated under      
   subparagraph (A) have been redirected or are to be redirected from the  
   preparation of financial statements to the improvement of systems       
   underlying financial management within the Department of Defense and to 
   the improvement of financial management policies, procedures, and       
   internal controls within the Department of Defense.                     
     (c) Information to Auditors.--Not later than October 31 of each year,
  the Under Secretary of Defense (Comptroller) and the Assistant Secretary
  of each military department with responsibility for financial management
  and comptroller functions shall each provide to the auditors of the     
  financial statement of that official's department for the fiscal year   
  ending during the preceding month that official's preliminary management
  representation, in writing, regarding the expected reliability of the   
  financial statement. The representation shall be consistent with        
  guidance issued by the Director of the Office of Management and Budget  
  and shall include the basis for the reliability assessment stated in the
  representation.                                                         
     (d) Limitation on Inspector General Audits.--(1) On each financial   
  statement that an official asserts is unreliable under subsection (b) or
  (c), the Inspector General of the Department of Defense shall only      
  perform the audit procedures required by generally accepted government  
  auditing standards consistent with any representation made by           
  management.                                                             
     (2) With the annual budget justifications for the Department of      
  Defense submitted to Congress each year, the Under Secretary of Defense 
  (Comptroller) shall submit, with respect to the fiscal year in which    
  submitted, the preceding fiscal year, and the following fiscal year,    
  information which the Inspector General shall report to the Under       
  Secretary, as follows:                                                  
       (A) An estimate of the resources that the Inspector General is      
   saving or expects to save as a result of actions taken and to be taken  
   under paragraph (1) with respect to the auditing of financial           
   statements.                                                             
       (B) A discussion of how the resources saved as estimated under      
   subparagraph (A) have been redirected or are to be redirected from the  
   auditing of financial statements to the oversight and improvement of    
   systems underlying financial management within the Department of Defense
   and to the oversight and improvement of financial management policies,  
   procedures, and internal controls within the Department of Defense.     
     (e) Effective Date.--The requirements of this section shall apply    
  with respect to financial statements for fiscal years after fiscal year 
  2001 and to the auditing of those financial statements.                 
     (f) Termination of Applicability.--If the Secretary of Defense       
  certifies to the Inspector General of the Department of Defense that the
  financial statement for the Department of Defense, or a financial       
  statement for a component of the Department of Defense, for a fiscal    
  year is reliable, this section shall not apply with respect to that     
  financial statement or to any successive financial statement for the    
  Department of Defense, or for that component, as the case may be, for   
  any later fiscal year.                                                  

                    SEC. 1009. FINANCIAL MANAGEMENT MODERNIZATION EXECUTIVE       
          COMMITTEE AND FINANCIAL FEEDER SYSTEMS COMPLIANCE PROCESS.              
     (a) Executive Committee.--(1) Chapter 7 of title 10, United States   
  Code, is amended by adding at the end the following new section:        

          ``185. Financial Management Modernization Executive Committee           

     ``(a) Establishment of Financial Management Modernization Executive  
  Committee.--(1) The Secretary of Defense shall establish a Financial    
  Management Modernization Executive Committee.                           
    ``(2) The Committee shall be composed of the following:               

       ``(A) The Under Secretary of Defense (Comptroller), who shall be the
   chairman of the committee.                                              
       ``(B) The Under Secretary of Defense for Acquisition, Technology,   
   and Logistics.                                                          
     ``(C) The Under Secretary of Defense for Personnel and Readiness.     

     ``(D) The Chief Information Officer of the Department of Defense.     

       ``(E) Such additional personnel of the Department of Defense        
   (including appropriate personnel of the military departments and Defense
   Agencies) as are designated by the Secretary.                           
     ``(3) The Committee shall be accountable to the Senior Executive     
  Council (composed of the Secretary of Defense, the Deputy Secretary of  
  Defense, the Under Secretary of Defense for Acquisition, Technology, and
  Logistics, the Secretary of the Army, the Secretary of the Navy, and the
  Secretary of the Air Force).                                            
     ``(b) Duties.--In addition to other matters assigned to it by the    
  Secretary of Defense, the Committee shall have the following duties:    
       ``(1) To establish a process that ensures that each critical        
   accounting system, financial management system, and data feeder system  
   of the Department of Defense is compliant with applicable Federal       
   financial management and reporting requirements.                        
       ``(2) To develop a management plan for the implementation of the    
   financial and data feeder systems compliance process established        
   pursuant to paragraph (1).                                              
       ``(3) To supervise and monitor the actions that are necessary to    
   implement the management plan developed pursuant to paragraph (2), as   
   approved by the Secretary of Defense.                                   
       ``(4) To ensure that a Department of Defense financial management   
   enterprise architecture is developed and maintained in accordance with--
       ``(A) the overall business process transformation strategy of the   
   Department; and                                                         
       ``(B) the architecture framework of the Department for command,     
   control, communications, computers, intelligence, surveillance, and     
   reconnaissance functions.                                               
       ``(5) To ensure that investments in existing or proposed financial  
   management systems for the Department comply with the overall business  
   practice transformation strategy of the Department and the financial    
   management enterprise architecture developed under paragraph (4).       
       ``(6) To provide an annual accounting of each financial and data    
   feeder system investment technology project to ensure that each such    
   project is being implemented at acceptable cost and within a reasonable 
   schedule and is contributing to tangible, observable improvements in    
   mission performance.                                                    
     ``(c) Management Plan for Implementation of Financial Data Feeder    
  Systems Compliance Process.--The management plan developed under        
  subsection (b)(2) shall include among its principal elements at least   
  the following elements:                                                 
       ``(1) A requirement for the establishment and maintenance of a      
   complete inventory of all budgetary, accounting, finance, and data      
   feeder systems that support the transformed business processes of the   
   Department and produce financial statements.                            
       ``(2) A phased process (consisting of the successive phases of      
   Awareness, Evaluation, Renovation, Validation, and Compliance) for      
   improving systems referred to in paragraph (1) that provides for mapping
   financial data flow from the cognizant Department business function     
   source (as part of the overall business process transformation strategy 
   of the Department) to Department financial statements.                  
       ``(3) Periodic submittal to the Secretary of Defense, the Deputy    
   Secretary of Defense, and the Senior Executive Council (or any          
   combination thereof) of reports on the progress being made in achieving 
   financial management transformation goals and milestones included in the
   annual financial management improvement plan in 2002.                   
       ``(4) Documentation of the completion of each phase specified in    
   paragraph (2) of improvements made to each accounting, finance, and data
   feeder system of the Department.                                        
       ``(5) Independent audit by the Inspector General of the Department, 
   the audit agencies of the military departments, and private sector firms
   contracted to conduct validation audits (or any combination thereof) at 
   the validation phase for each accounting, finance, and data feeder      
   system.                                                                 
     ``(d) Data Feeder Systems.--In this section, the term `data feeder   
  system' has the meaning given that term in section 2222(c)(2) of this   
  title.''.                                                               

     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


      ``185. Financial Management Modernization Executive Committee.''.       



     (b) Annual Financial Management Improvement Plan.--(1) Subsection (a)
  of section 2222 of title 10, United States Code, is amended--           
       (A) by striking `` Biennial'' in the subsection heading and         
   inserting `` Annual'';                                                  
       (B) by striking ``a biennial'' in the first sentence and inserting  
   ``an annual''; and                                                      
     (C) by striking ``even-numbered'' in the second sentence.             

    (2) Subsection (c) of such section is amended--                       

     (A) by redesignating paragraph (2) as paragraph (3); and              

     (B) by inserting after paragraph (1) the following new paragraph (2): 

    ``(2) In each such plan, the Secretary shall include the following:   

       ``(A) A description of the actions to be taken in the fiscal year   
   beginning in the year in which the plan is submitted to implement the   
   annual performance goals, and the performance milestones, included in   
   the financial management improvement plan submitted in 2002 pursuant to 
   paragraphs (1) and (2), respectively, of section 1009(c) of the National
   Defense Authorization Act for Fiscal Year 2002.                         
       ``(B) An estimate of the amount expended in the fiscal year ending  
   in the year in which the plan is submitted to implement the financial   
   management improvement plan in such preceding calendar year, set forth  
   by system.                                                              
       ``(C) If an element of the financial management improvement plan    
   submitted in the fiscal year ending in the year in which the plan is    
   submitted was not implemented, a justification for the lack of          
   implementation of such element.''.                                      
    (3)(A) The heading of such section is amended to read as follows:     

          ``2222. Annual financial management improvement plan'' .                

     (B) The item relating to section 2222 in the table of sections at the
  beginning of chapter 131 of such title is amended to read as follows:   


      ``2222. Annual financial management improvement plan.''.                



     (c) Additional Elements for Financial Management Improvement Plan in 
  2002.--In the annual financial management improvement plan submitted    
  under section 2222 of title 10, United States Code, in 2002, the        
  Secretary of Defense shall include the following:                       
       (1) Measurable annual performance goals for improvement of the      
   financial management of the Department of Defense.                      
       (2) Performance milestones for initiatives under that plan for      
   transforming the financial management operations of the Department of   
   Defense and for implementing a financial management architecture for the
   Department.                                                             
       (3) An assessment of the anticipated annual cost of any plans for   
   transforming the financial management operations of the Department of   
   Defense and for implementing a financial management architecture for the
   Department.                                                             
     (4) A discussion of the following:                                    

       (A) The roles and responsibilities of appropriate Department        
   officials to ensure the supervision and monitoring of the compliance of 
   each accounting, finance, and data feeder system of the Department      
   with--                                                                  
     (i) the business practice transformation strategy of the Department;  

     (ii) the financial management architecture of the Department; and     

       (iii) applicable Federal financial management systems and reporting 
   requirements.                                                           
       (B) A summary of the actions taken by the Financial Management      
   Modernization Executive Committee to ensure that such systems comply    
   with--                                                                  
     (i) the business practice transformation strategy of the Department;  

     (ii) the financial management architecture of the Department; and     

       (iii) applicable Federal financial management systems and reporting 
   requirements.                                                           
     (d) Effective Date.--Paragraph (2) of section 2222(c) of title 10,   
  United States Code, as added by subsection (b)(2), shall not apply with 
  respect to the annual financial management improvement plan submitted   
  under section 2222 of title 10, United States Code, in 2002.            

                    SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE       
          DEFENSE PROGRAMS OR COMBATING TERRORISM PROGRAMS OF THE DEPARTMENT OF   
          DEFENSE.                                                                
     (a) Authorization.--There is hereby authorized to be appropriated for
  fiscal year 2002 for the military functions of the Department of        
  Defense, in addition to amounts authorized to be appropriated in titles 
  I, II, and III, the amount of $1,300,000,000, to be available, in       
  accordance with subsection (b), for the following purposes:             
       (1) Research, development, test, and evaluation for ballistic       
   missile defense programs of the Ballistic Missile Defense Organization. 
     (2) Activities of the Department of Defense for combating terrorism.  

     (b) Allocation by President.--(1) The amount authorized to be        
  appropriated by subsection (a) shall be allocated between the purposes  
  stated in paragraphs (1) and (2) of that subsection in such manner as   
  may be determined by the President based upon the national security     
  interests of the United States. The amount authorized in subsection (a) 
  shall not be available for any other purpose.                           
     (2) Upon an allocation of such amount by the President, the amount so
  allocated shall be transferred to the appropriate regular authorization 
  account under this division in the same manner as provided in section   
  1001. Transfers under this paragraph shall not be counted for the       
  purposes of section 1001(a)(2).                                         
     (3) Not later than 15 days after an allocation is made under this    
  subsection, the Secretary of Defense shall submit to the congressional  
  defense committees a report describing the allocation and the           
  Secretary's plan for the use by the Department of Defense of the funds  
  made available pursuant to such allocation.                             

           Subtitle B--Naval Vessels and Shipyards                                 

                    SEC. 1011. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN     
          FOREIGN COUNTRIES.                                                      
     (a) Transfers by Grant.--The President is authorized to transfer     
  vessels to foreign countries on a grant basis under section 516 of the  
  Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:            
       (1) Poland.--To the Government of Poland, the OLIVER HAZARD PERRY   
   class guided missile frigate WADSWORTH (FFG 9).                         
       (2) Turkey.--To the Government of Turkey, the KNOX class frigates   
   CAPODANNO (FF 1093), THOMAS C. HART (FF 1092), DONALD B. BEARY (FF      
   1085), McCANDLESS (FF 1084), REASONER (FF 1063), and BOWEN (FF 1079).   
     (b) Transfers by Sale.--The President is authorized to transfer      
  vessels to foreign governments and foreign governmental entities on a   
  sale basis under section 21 of the Arms Export Control Act (22 U.S.C.   
  2761) as follows:                                                       
       (1) Taiwan.--To the Taipei Economic and Cultural Representative     
   Office in the United States (which is the Taiwan instrumentality        
   designated pursuant to section 10(a) of the Taiwan Relations Act), the  
   KIDD class guided missile destroyers KIDD (DDG 993), CALLAGHAN (DDG     
   994), SCOTT (DDG 995), and CHANDLER (DDG 996).                          
       (2) Turkey.--To the Government of Turkey, the OLIVER HAZARD PERRY   
   class guided missile frigates ESTOCIN (FFG 15) and SAMUEL ELIOT MORISON 
   (FFG 13).                                                               
     (c) Grants Not Counted in Annual Total of Transferred Excess Defense 
  Articles.--The value of a vessel transferred to another country on a    
  grant basis under section 516 of the Foreign Assistance Act of 1961 (22 
  U.S.C. 2321j) pursuant to authority provided by subsection (a) shall not
  be counted for the purposes of subsection (g) of that section in the    
  aggregate value of excess defense articles transferred to countries     
  under that section in any fiscal year.                                  
     (d) Costs of Transfers on Grant Basis.--Any expense incurred by the  
  United States in connection with a transfer authorized by this section  
  shall be charged to the recipient (notwithstanding section 516(e)(1) of 
  the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1))) in the case 
  of a transfer authorized to be made on a grant basis under subsection   
  (a).                                                                    
     (e) Waiver Authority.--For a vessel transferred on a grant basis     
  pursuant to authority provided by subsection (a)(2), the President may  
  waive reimbursement of charges for the lease of that vessel under       
  section 61(a) of the Arms Export Control Act (22 U.S.C. 2796(a)) for a  
  period of one year before the date of the transfer of that vessel.      
     (f) Repair and Refurbishment in United States Shipyards.--To the     
  maximum extent practicable, the President shall require, as a condition 
  of the transfer of a vessel under this section, that the country to     
  which the vessel is transferred have such repair or refurbishment of the
  vessel as is needed, before the vessel joins the naval forces of that   
  country, performed at a shipyard located in the United States, including
  a United States Navy shipyard.                                          
     (g) Expiration of Authority.--The authority to transfer a vessel     
  under this section shall expire at the end of the two-year period       
  beginning on the date of the enactment of this Act.                     

          SEC. 1012. SALE OF GLOMAR EXPLORER TO THE LESSEE.                       

     (a) Authority.--The Secretary of the Navy may convey by sale all     
  right, title, and interest of the United States in and to the vessel    
  GLOMAR EXPLORER (AG 193) to the person who, on the date of the enactment
  of this Act, is the lessee of the vessel.                               
     (b) Consideration.--The price for which the vessel is sold under     
  subsection (a) shall be a fair and reasonable amount determined by the  
  Secretary of the Navy.                                                  
     (c) Additional Terms.--The Secretary may require such additional     
  terms in connection with the conveyance authorized by this section as   
  the Secretary considers appropriate.                                    
     (d) Proceeds of Sale.--Amounts received by the Secretary from the    
  sale under this section may, to the extent provided in an appropriations
  Act, be credited to the appropriation available for providing salvage   
  facilities under section 7361 of title 10, United States Code, and are  
  authorized to remain available until expended for that purpose.         

                    SEC. 1013. LEASING OF NAVY SHIPS FOR UNIVERSITY NATIONAL      
          OCEANOGRAPHIC LABORATORY SYSTEM.                                        
     Subsection (g) of section 2667 of title 10, United States Code, is   
  amended by adding at the end the following new paragraph:               
     ``(3) Paragraph (1) does not apply to a renewal or extension of a    
  lease by the Secretary of the Navy with a selected institution for      
  operation of a ship within the University National Oceanographic        
  Laboratory System if, under the lease, each of the following applies:   
       ``(A) Use of the ship is restricted to federally supported research 
   programs and to non-Federal uses under specific conditions with approval
   by the Secretary of the Navy.                                           
       ``(B) Because of the anticipated value to the Navy of the           
   oceanographic research and training that will result from the ship's    
   operation, no monetary lease payments are required from the lessee under
   the initial lease or under any renewal or extension.                    
       ``(C) The lessee is required to maintain the ship in a good state of
   repair, readiness, and efficient operating condition, conform to all    
   applicable regulatory requirements, and assume full responsibility for  
   the safety of the ship, its crew, and scientific personnel aboard.''.   
                    SEC. 1014. INCREASE IN LIMITATIONS ON ADMINISTRATIVE AUTHORITY
          OF THE NAVY TO SETTLE ADMIRALTY CLAIMS.                                 
     (a) Admiralty Claims Against the United States.--Section 7622 of     
  title 10, United States Code, is amended--                              
       (1) in subsections (a) and (b), by striking ``$1,000,000'' and      
   inserting ``$15,000,000''; and                                          
       (2) in subsection (c), by striking ``$100,000'' and inserting       
   ``$1,000,000''.                                                         
     (b) Admiralty Claims by the United States.--Section 7623 of such     
  title is amended--                                                      
       (1) in subsection (a)(2), by striking ``$1,000,000'' and inserting  
   ``$15,000,000''; and                                                    
       (2) in subsection (c), by striking ``$100,000'' and inserting       
   ``$1,000,000''.                                                         
     (c) Effective Date.--The amendments made by this section shall apply 
  with respect to any claim accruing on or after February 1, 2001.        

           Subtitle C--Counter-Drug Activities                                     


                    SEC. 1021. EXTENSION AND RESTATEMENT OF AUTHORITY TO PROVIDE  
          DEPARTMENT OF DEFENSE SUPPORT FOR COUNTER-DRUG ACTIVITIES OF OTHER      
          GOVERNMENTAL AGENCIES.                                                  
     Section 1004 of the National Defense Authorization Act for Fiscal    
  Year 1991 (Public Law 101 510; 10 U.S.C. 374 note) is amended to read as
  follows:                                                                
          ``SEC. 1004. ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES             

     ``(a) Support to Other Agencies.--During fiscal years 2002 through   
  2006, the Secretary of Defense may provide support for the counter-drug 
  activities of any other department or agency of the Federal Government  
  or of any State, local, or foreign law enforcement agency for any of the
  purposes set forth in subsection (b) if such support is requested--     
       ``(1) by the official who has responsibility for the counter-drug   
   activities of the department or agency of the Federal Government, in the
   case of support for other departments or agencies of the Federal        
   Government;                                                             
       ``(2) by the appropriate official of a State or local government, in
   the case of support for State or local law enforcement agencies; or     
       ``(3) by an appropriate official of a department or agency of the   
   Federal Government that has counter-drug responsibilities, in the case  
   of support for foreign law enforcement agencies.                        
     ``(b) Types of Support.--The purposes for which the Secretary of     
  Defense may provide support under subsection (a) are the following:     
       ``(1) The maintenance and repair of equipment that has been made    
   available to any department or agency of the Federal Government or to   
   any State or local government by the Department of Defense for the      
   purposes of--                                                           
       ``(A) preserving the potential future utility of such equipment for 
   the Department of Defense; and                                          
       ``(B) upgrading such equipment to ensure compatibility of that      
   equipment with other equipment used by the Department of Defense.       
       ``(2) The maintenance, repair, or upgrading of equipment (including 
   computer software), other than equipment referred to in paragraph (1)   
   for the purpose of--                                                    
       ``(A) ensuring that the equipment being maintained or repaired is   
   compatible with equipment used by the Department of Defense; and        
       ``(B) upgrading such equipment to ensure the compatibility of that  
   equipment with equipment used by the Department of Defense.             
       ``(3) The transportation of personnel of the United States and      
   foreign countries (including per diem expenses associated with such     
   transportation), and the transportation of supplies and equipment, for  
   the purpose of facilitating counter-drug activities within or outside   
   the United States.                                                      
       ``(4) The establishment (including an unspecified minor military    
   construction project) and operation of bases of operations or training  
   facilities for the purpose of facilitating counter-drug activities of   
   the Department of Defense or any Federal, State, or local law           
   enforcement agency within or outside the United States or counter-drug  
   activities of a foreign law enforcement agency outside the United       
   States.                                                                 
       ``(5) Counter-drug related training of law enforcement personnel of 
   the Federal Government, of State and local governments, and of foreign  
   countries, including associated support expenses for trainees and the   
   provision of materials necessary to carry out such training.            
       ``(6) The detection, monitoring, and communication of the movement  
   of--                                                                    
       ``(A) air and sea traffic within 25 miles of and outside the        
   geographic boundaries of the United States; and                         
       ``(B) surface traffic outside the geographic boundary of the United 
   States and within the United States not to exceed 25 miles of the       
   boundary if the initial detection occurred outside of the boundary.     
       ``(7) Construction of roads and fences and installation of lighting 
   to block drug smuggling corridors across international boundaries of the
   United States.                                                          
       ``(8) Establishment of command, control, communications, and        
   computer networks for improved integration of law enforcement, active   
   military, and National Guard activities.                                

     ``(9) The provision of linguist and intelligence analysis services.   

     ``(10) Aerial and ground reconnaissance.                              

     ``(c) Limitation on Counter-Drug Requirements.--The Secretary of     
  Defense may not limit the requirements for which support may be provided
  under subsection (a) only to critical, emergent, or unanticipated       
  requirements.                                                           
     ``(d) Contract Authority.--In carrying out subsection (a), the       
  Secretary of Defense may acquire services or equipment by contract for  
  support provided under that subsection if the Department of Defense     
  would normally acquire such services or equipment by contract for the   
  purpose of conducting a similar activity for the Department of Defense. 
     ``(e) Limited Waiver of Prohibition.--Notwithstanding section 376 of 
  title 10, United States Code, the Secretary of Defense may provide      
  support pursuant to subsection (a) in any case in which the Secretary   
  determines that the provision of such support would adversely affect the
  military preparedness of the United States in the short term if the     
  Secretary determines that the importance of providing such support      
  outweighs such short-term adverse effect.                               
     ``(f) Conduct of Training or Operation To Aid Civilian Agencies.--In 
  providing support pursuant to subsection (a), the Secretary of Defense  
  may plan and execute otherwise valid military training or operations    
  (including training exercises undertaken pursuant to section 1206(a) of 
  the National Defense Authorization Act for Fiscal Years 1990 and 1991   
  (Public Law 101 189; 103 Stat. 1564)) for the purpose of aiding civilian
  law enforcement agencies.                                               
     ``(g) Relationship to Other Laws.--(1) The authority provided in this
  section for the support of counter-drug activities by the Department of 
  Defense is in addition to, and except as provided in paragraph (2), not 
  subject to the requirements of chapter 18 of title 10, United States    
  Code.                                                                   
     ``(2) Support under this section shall be subject to the provisions  
  of section 375 and, except as provided in subsection (e), section 376 of
  title 10, United States Code.                                           
     ``(h) Congressional Notification of Facilities Projects.--(1) When a 
  decision is made to carry out a military construction project described 
  in paragraph (2), the Secretary of Defense shall submit to the          
  congressional defense committees written notice of the decision,        
  including the justification for the project and the estimated cost of   
  the project. The project may be commenced only after the end of the     
  21-day period beginning on the date on which the written notice is      
  received by Congress.                                                   
     ``(2) Paragraph (1) applies to an unspecified minor military         
  construction project that--                                             
       ``(A) is intended for the modification or repair of a Department of 
   Defense facility for the purpose set forth in subsection (b)(4); and    
     ``(B) has an estimated cost of more than $500,000.''.                 

                    SEC. 1022. EXTENSION OF REPORTING REQUIREMENT REGARDING       
          DEPARTMENT OF DEFENSE EXPENDITURES TO SUPPORT FOREIGN COUNTER-DRUG      
          ACTIVITIES.                                                             
     Section 1022 of the Floyd D. Spence National Defense Authorization   
  Act for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114
  Stat. 1654A 255) is amended--                                           
       (1) by inserting ``and April 15, 2002,'' after ``January 1, 2001,'';
   and                                                                     
       (2) by striking ``fiscal year 2000'' and inserting ``the preceding  
   fiscal year''.                                                          

                    SEC. 1023. AUTHORITY TO TRANSFER TRACKER AIRCRAFT CURRENTLY   
          USED BY ARMED FORCES FOR COUNTER-DRUG PURPOSES.                         
     (a) Transfer Authority.--The Secretary of Defense may transfer to the
  administrative jurisdiction and operational control of another Federal  
  agency all Tracker aircraft in the inventory of the Department of       
  Defense.                                                                
     (b) Effect of Failure To Transfer.--If the transfer authority        
  provided by subsection (a) is not exercised by the Secretary of Defense 
  by September 30, 2002, any Tracker aircraft remaining in the inventory  
  of the Department of Defense may not be used by the Armed Forces for    
  counter-drug purposes after that date.                                  

                    SEC. 1024. LIMITATION ON USE OF FUNDS FOR OPERATION OF        
          TETHERED AEROSTAT RADAR SYSTEM PENDING SUBMISSION OF REQUIRED REPORT.   
     Not more than 50 percent of the funds appropriated or otherwise made 
  available for fiscal year 2002 for operation of the Tethered Aerostat   
  Radar System, which is used by the Armed Forces in maritime, air, and   
  land counter-drug detection and monitoring, may be obligated or expended
  until such time as the Secretary of Defense submits to Congress the     
  report on the status of the Tethered Aerostat Radar System required by  
  section 1025 of the Floyd D. Spence National Defense Authorization Act  
  for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114    
  Stat. 1654A 256).                                                       

           Subtitle D--Strategic Forces                                            


                    SEC. 1031. REPEAL OF LIMITATION ON RETIREMENT OR DISMANTLEMENT
          OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.                                  
     Section 1302 of the National Defense Authorization Act for Fiscal    
  Year 1998 (Public Law 105 85; 111 Stat. 1948) is repealed.              

          SEC. 1032. AIR FORCE BOMBER FORCE STRUCTURE.                            

     (a) Limitation.--None of the funds available to the Department of    
  Defense for fiscal year 2002 may be obligated or expended for retiring  
  or dismantling any of the 93 B 1B Lancer bombers in service as of June  
  1, 2001, or for transferring or reassigning any of those aircraft from  
  the unit or facility to which assigned as of that date, until 15 days   
  after the Secretary of the Air Force submits to the Committee on Armed  
  Services of the Senate and the Committee on Armed Services of the House 
  of Representatives a report on the Air Force bomber force structure.    
     (b) Matters To Be Included.--The report under subsection (a) shall   
  set forth the following:                                                
       (1) The Air Force plan for the modernization of the B1 B aircraft   
   fleet, including a transition plan for implementation of that           
   modernization plan and a description of the basing options for the      
   aircraft in that fleet.                                                 
       (2) The amount and type of bomber force structure in the Air Force  
   appropriate to meet the requirements of the national security strategy  
   of the United States.                                                   
       (3) Specifications of new missions to be assigned to the National   
   Guard units that currently fly B 1 aircraft and the transition of those 
   units and their facilities from the current B 1 mission to their future 
   missions.                                                               
       (4) A description of the potential effect of the proposed           
   consolidation and reduction of the B 1 fleet on other National Guard    
   units in the affected States.                                           
       (5) A justification of the cost and projected savings of            
   consolidating and reducing the B 1 fleet.                               
     (c) Amount and Type of Bomber Force Structure Defined.--In this      
  section, the term ``amount and type of bomber force structure'' means   
  the number of B 2 aircraft, B 52 aircraft, and B 1 aircraft that are    
  required to carry out the current national security strategy.           
          SEC. 1033. ADDITIONAL ELEMENT FOR REVISED NUCLEAR POSTURE REVIEW.       

     Section 1041(b) of the Floyd D. Spence National Defense Authorization
  Act for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114
  Stat. 1654A 262) is amended by adding at the end the following new      
  paragraph:                                                              
       ``(7) The possibility of deactivating or dealerting nuclear warheads
   or delivery systems immediately, or immediately after a decision to     
   retire any specific warhead, class of warheads, or delivery system.''.  

                    SEC. 1034. REPORT ON OPTIONS FOR MODERNIZATION AND ENHANCEMENT
          OF MISSILE WING HELICOPTER SUPPORT.                                     
     (a) Report Required.--The Secretary of Defense shall prepare a report
  regarding the options for providing the helicopter support missions for 
  the Air Force intercontinental ballistic missile wings at Minot Air     
  Force Base, North Dakota, Malmstrom Air Force Base, Montana, and F.E.   
  Warren Air Force Base, Wyoming, for as long as these missions are       
  required. The report shall include the Secretary's recommendations on a 
  preferred option.                                                       
     (b) Options.--Options to be reviewed under subsection (a) include the
  following:                                                              
       (1) The current plan of the Air Force for replacement or            
   modernization of UH 1N helicopters currently flown by the Air Force at  
   the missile wings.                                                      
       (2) Replacement of the UH 1N helicopters currently flown by the Air 
   Force with UH 60 Black Hawk helicopters, the UH 1Y helicopter, or       
   another platform.                                                       
       (3) Replacement of the UH 1N helicopters with UH 60 helicopters and 
   transition of the mission to the Army National Guard, as detailed in the
   Air Force Space Command/Army National Guard plan entitled ``ARNG        
   Helicopter Support to Air Force Space Command'' and dated November 2000.
       (4) Replacement of the UH 1N helicopters with UH 60 helicopters or  
   another platform, and establishment of composite units combining active 
   duty Air Force and Army National Guard personnel.                       
       (5) Such other options as the Secretary of Defense considers        
   appropriate.                                                            
     (c) Factors.--Factors to be considered in preparing the report under 
  subsection (a) include the following:                                   
       (1) Any implications of transferring the helicopter support missions
   on the command and control of, and responsibility for, missile field    
   force protection.                                                       
       (2) Current and future operational requirements, and the            
   capabilities of the UH 1N or UH 60 helicopter or other aircraft to meet 
   such requirements.                                                      
       (3) Cost, with particular attention to opportunities to realize     
   efficiencies over the long run.                                         
     (4) Implications for personnel training and retention.                

       (5) Evaluation of the assumptions used in the plan specified in     
   subsection (b)(3).                                                      
     (d) Consideration.--In preparing the report under subsection (a), the
  Secretary of Defense shall consider carefully the views of the Secretary
  of the Army, the Secretary of the Air Force, the commander of the United
  States Strategic Command, and the Chief of the National Guard Bureau.   
     (e) Submission of Report.--The report required by subsection (a)     
  shall be submitted to the congressional defense committees not later    
  than the date on which the President submits to Congress the budget     
  under section 1105 of title 31, United States Code, for fiscal year     
  2003.                                                                   

           Subtitle E--Other Department of Defense Provisions                      


                    SEC. 1041. SECRETARY OF DEFENSE RECOMMENDATION ON NEED FOR    
          DEPARTMENT OF DEFENSE REVIEW OF PROPOSED FEDERAL AGENCY ACTIONS TO      
          CONSIDER POSSIBLE IMPACT ON NATIONAL DEFENSE.                           
     (a) Recommendation on Need for Defense Impact Review Process.--The   
  Secretary of Defense shall submit to the President the Secretary's      
  recommendation as to whether there should be established within the     
  executive branch a defense impact review process. The Secretary shall   
  submit a copy of such recommendation to Congress.                       
     (b) Defense Impact Review Process.--(1) For purposes of this section,
  the term ``defense impact review process'' means a formal process within
  the executive branch--                                                  
       (A) to provide for review by the Department of Defense of certain   
   proposed actions of other Federal departments and agencies to identify  
   any reasonably foreseeable significant adverse impact of such a proposed
   action on national defense; and                                         
       (B) when such a review indicates that a proposed agency action may  
   have such an adverse impact--                                           
       (i) to afford the Secretary of Defense a timely opportunity to make 
   recommendations for means to eliminate or mitigate any such adverse     
   impact; and                                                             
       (ii) to afford an opportunity for those recommendations to be given 
   reasonable and timely consideration by the agency to which provided.    
     (2) For purposes of such a review process, the proposed agency       
  actions subject to review would be those for which a significant adverse
  impact on national defense is reasonably foreseeable and that meet such 
  additional criteria as may be specified by the Secretary of Defense.    
     (c) Time for Submission of Recommendation.--The Secretary shall      
  submit the Secretary's recommendation under subsection (a) not later    
  than 180 days after the date of the enactment of this Act.              
                    SEC. 1042. DEPARTMENT OF DEFENSE REPORTS TO CONGRESS TO BE    
          ACCOMPANIED BY ELECTRONIC VERSION UPON REQUEST.                         
     (a) In General.--Chapter 23 of title 10, United States Code, is      
  amended by inserting after the table of sections the following new      
  section:                                                                
          ``480. Reports to Congress: submission in electronic form               

     ``(a) Requirement.--Whenever the Secretary of Defense or any other   
  official of the Department of Defense submits to Congress (or any       
  committee of either House of Congress) a report that the Secretary (or  
  other official) is required by law to submit, the Secretary (or other   
  official) shall, upon request by any committee of Congress to which the 
  report is submitted or referred, provide to Congress (or each such      
  committee) a copy of the report in an electronic medium.                
     ``(b) Exception.--Subsection (a) does not apply to a report submitted
  in classified form.                                                     
     ``(c) Definition.--In this section, the term `report' includes any   
  certification, notification, or other communication in writing.''.      
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting before the item relating to section
  481 the following new item:                                             


      ``480. Reports to Congress: submission in electronic form.''.           


          SEC. 1043. DEPARTMENT OF DEFENSE GIFT AUTHORITIES.                      

     (a) Authority To Make Loans and Gifts.--(1) Subsection (a) of section
  7545 of title 10, United States Code, is amended by striking ``(a)      
  Subject to'' and all that follows through ``to--'' and inserting the    
  following:                                                              
     ``(a) Authority To Make Loans and Gifts.--The Secretary of the Navy  
  may lend or give, without expense to the United States, items described 
  in subsection (b) that are not needed by the Department of the Navy to  
  any of the following:''.                                                
    (2) Such subsection is further amended--                              

       (A) by capitalizing the first letter after the paragraph designation
   in each of paragraphs (1) through (12);                                 
       (B) by striking the semicolon at the end of paragraphs (1) through  
   (10) and inserting a period;                                            
       (C) by striking ``; or'' at the end of paragraph (11) and inserting 
   a period;                                                               
       (D) in paragraph (5), by striking ``World War I or World War II''   
   and inserting ``a foreign war'';                                        
       (E) in paragraph (6), by striking ``soldiers' monument'' and        
   inserting ``servicemen's monument''; and                                
     (F) in paragraph (8), by inserting ``or memorial'' after ``museum''.  

     (b) Additional Items Authorized To Be Donated by Secretary of the    
  Navy.--Such section is further amended--                                
       (1) by redesignating subsections (b) and (c) as subsections (d) and 
   (e), respectively;                                                      
     (2) by inserting after subsection (a) the following new subsections:  

     ``(b) Items Eligible for Disposal.--This section applies to the      
  following types of property held by the Department of the Navy:         
     ``(1) Captured, condemned, or obsolete ordnance material.             

     ``(2) Captured, condemned, or obsolete combat or shipboard material.  

     ``(c) Regulations.--A loan or gift made under this section shall be  
  subject to regulations prescribed by the Secretary and to regulations   
  under section 205 of the Federal Property and Administrative Services   
  Act of 1949 (40 U.S.C. 486).''; and                                     
     (3) by adding at the end the following new subsection:                

     ``(f) Authority To Transfer a Portion of a Vessel.--The Secretary may
  lend, give, or otherwise transfer any portion of the hull or            
  superstructure of a vessel stricken from the Naval Vessel Register and  
  designated for scrapping to a qualified organization specified in       
  subsection (a). The terms and conditions of an agreement for the        
  transfer of a portion of a vessel under this section shall include a    
  requirement that the transferee will maintain the material conveyed in a
  condition that will not diminish the historical value of the material or
  bring discredit upon the Navy.''.                                       
    (c)  Clerical Amendments.--Such section is further amended--          

       (1) in subsection (d) (as redesignated by subsection (b)(1)), by    
   inserting `` Maintenance of the Records of the Government.--'' after the
   subsection designation; and                                             
       (2) in subsection (e) (as redesignated by subsection (b)(1)), by    
   inserting `` Alternative Authorities To Make Gifts or Loans.--'' after  
   the subsection designation.                                             
     (d) Conforming Amendments.--Section 2572(a) of such title is         
  amended--                                                               
       (1) in paragraph (1), by inserting ``, county, or other political   
   subdivision of a State'' before the period at the end;                  
       (2) in paragraph (2), by striking ``soldiers' monument'' and        
   inserting ``servicemen's monument''; and                                
       (3) in paragraph (4), by inserting ``or memorial'' after ``An       
   incorporated museum''.                                                  

                    SEC. 1044. ACCELERATION OF RESEARCH, DEVELOPMENT, AND         
          PRODUCTION OF MEDICAL COUNTERMEASURES FOR DEFENSE AGAINST BIOLOGICAL    
          WARFARE AGENTS.                                                         
     (a) Aggressive Program Required.--(1) The Secretary of Defense shall 
  carry out a program to aggressively accelerate the research,            
  development, testing, and licensure of new medical countermeasures for  
  defense against the biological warfare agents that are the highest      
  threat.                                                                 
    (2) The program shall include the following activities:               

       (A) As the program's first priority, investment in multiple new     
   technologies for medical countermeasures for defense against the        
   biological warfare agents that are the highest threat, including for the
   prevention and treatment of anthrax.                                    
       (B) Leveraging of ideas and technologies from the biological        
   technology industry.                                                    
     (b) Study Required.--(1) The Secretary of Defense shall enter into a 
  contract with the Institute of Medicine and the National Research       
  Council under which the Institute and Council, in consultation with the 
  Secretary, shall carry out a study of the review and approval process   
  for new medical countermeasures for biological warfare agents. The      
  purpose of the study shall be to identify--                             
     (A) new approaches to accelerating such process; and                  

       (B) definitive and reasonable methods for assuring the agencies     
   responsible for regulating such countermeasures that such               
   countermeasures will be effective in preventing disease in humans or in 
   providing safe and effective therapy against such agents.               
     (2) Not later than June 1, 2002, the Institute and Council shall     
  jointly submit to Congress a report on the results of the study.        
     (c) Facility for Production of Vaccines.--(1) Subject to paragraph   
  (2) and to the availability of funds for such purposes appropriated     
  pursuant to an authorization of appropriations, the Secretary of Defense
  may--                                                                   

       (A) design and construct a facility on a Department of Defense      
   installation for the production of vaccines to meet the requirements of 
   the Department of Defense to prevent or mitigate the physiological      
   effects of exposure to biological warfare agents;                       
     (B) operate that facility;                                            

       (C) qualify and validate that facility for the production of        
   vaccines in accordance with the requirements of the Food and Drug       
   Administration; and                                                     
       (D) contract with a private-sector source for the production of     
   vaccines in that facility.                                              
     (2) The authority under paragraph (1)(A) to construct a facility may 
  be exercised only to the extent that a project for such construction is 
  authorized by law in accordance with section 2802 of title 10, United   
  States Code.                                                            
     (3) The Secretary shall use competitive procedures under chapter 137 
  of title 10, United States Code, to enter into contracts to carry out   
  subparagraphs (A), (B), and (D) of paragraph (1).                       
     (d) Plan Required.--(1) The Secretary shall develop a long-range plan
  to provide for the production and acquisition of vaccines to meet the   
  requirements of the Department of Defense to prevent or mitigate the    
  physiological effects of exposure to biological warfare agents.         
    (2) The plan shall include the following:                             

       (A) An evaluation of the need for one or more vaccine production    
   facilities that are specifically dedicated to meeting the requirements  
   of the Department of Defense and other national interests.              
       (B) An evaluation of the options for the means of production of such
   vaccines, including--                                                   
       (i) use of public facilities, private facilities, or a combination  
   of public and private facilities; and                                   
       (ii) management and operation of the facilities by the Federal      
   Government, one or more private persons, or a combination of the Federal
   Government and one or more private persons.                             
       (C) A specification of the means that the Secretary determines is   
   most appropriate for the production of such vaccines.                   
     (3) The Secretary shall ensure that the plan is consistent with the  
  requirement for safe and effective vaccines approved by the Food and    
  Drug Administration.                                                    
    (4) In preparing the plan, the Secretary shall--                      

       (A) consider and, as the Secretary determines appropriate, include  
   the information compiled and the analyses developed in preparing the    
   reports required by sections 217 and 218 of the Floyd D. Spence National
   Defense Authorization Act for Fiscal Year 2001 (as enacted into law by  
   Public Law 106 398; 114 Stat. 1654A 36, 1654A 37); and                  
       (B) consult with the heads of other appropriate departments and     
   agencies of the Federal Government.                                     
     (e) Report.--Not later than February 1, 2002, the Secretary shall    
  submit to the congressional defense committees a report on the plan     
  required by subsection (d). The report shall include, at a minimum, the 
  contents of the plan and the following matters:                         
       (1) A description of the policies and requirements of the Department
   of Defense regarding acquisition and use of such vaccines.              
       (2) The estimated schedule for the acquisition of such vaccines in  
   accordance with the plan.                                               
       (3) A discussion of the options considered under subsection         
   (d)(2)(B) for the means of production of such vaccines.                 
       (4) The Secretary's recommendations for the most appropriate course 
   of action to meet the requirements specified in subsection (d)(1),      
   together with the justification for such recommendations and the        
   long-term cost of implementing such recommendations.                    
     (f) Funding.--Of the amount authorized to be appropriated under      
  section 201(4) for research, development, test, and evaluation,         
  Defense-wide, $5,000,000 may be available in Program Element 62384BP,   
  and $5,000,000 may be available in Program Element 63384BP, for the     
  program required by subsection (a).                                     

                    SEC. 1045. CHEMICAL AND BIOLOGICAL PROTECTIVE EQUIPMENT FOR   
          MILITARY PERSONNEL AND CIVILIAN EMPLOYEES OF THE DEPARTMENT OF DEFENSE. 
     Not later than 120 days after the date of the enactment of this Act, 
  the Secretary of Defense shall submit to Congress a report on the       
  requirements of the Department of Defense, including the reserve        
  components, regarding chemical and biological protective equipment. The 
  report shall set forth the following:                                   
       (1) A description of any current shortfalls with respect to         
   requirements regarding chemical and biological protective equipment for 
   military personnel, whether for individuals or units.                   
       (2) An assessment of what should be the appropriate level of        
   protection for civilian employees of the Department of Defense against  
   chemical and biological attack.                                         
       (3) A plan for providing required chemical and biological protective
   equipment for military personnel and civilian employees of the          
   Department of Defense.                                                  
       (4) An assessment of the costs associated with carrying out the plan
   described in paragraph (3).                                             

                    SEC. 1046. SALE OF GOODS AND SERVICES BY NAVAL MAGAZINE,      
          INDIAN ISLAND, ALASKA.                                                  
     (a) Sale Authorized.--Subject to subsections (c) and (d) of section  
  2563 7Eof title 10, United States Code, the Secretary of the Navy may   
  sell to a person outside the Department of Defense any article or       
  service provided by the Naval Magazine, Indian Island, Alaska, that is  
  not available from a United States commercial source.                   
     (b) Crediting of Proceeds.--The proceeds from the sale of any article
  or service under this section shall be credited to the appropriation    
  supporting the maintenance and operation of the Naval Magazine, Indian  
  Island, for the fiscal year in which the proceeds are received.         

                    SEC. 1047. REPORT ON PROCEDURES AND GUIDELINES FOR EMBARKATION
          OF CIVILIAN GUESTS ON NAVAL VESSELS FOR PUBLIC AFFAIRS PURPOSES.        
     Not later than February 1, 2002, the Secretary of the Navy shall     
  submit to the Committee on Armed Services of the Senate and the         
  Committee on Armed Services of the House of Representatives a report    
  setting forth in detail the procedures and guidelines of the Navy for   
  the embarkation of civilian guests on naval vessels for public affairs  
  purposes. The report shall include the following:                       
       (1) Procedures for nominating and approving civilian guests for     
   embarkation on naval vessels.                                           
       (2) Procedures for ensuring that civilian guest embarkations are    
   conducted only as part of regularly scheduled operations.               
       (3) Guidelines regarding the operation of equipment by civilian     
   guests on naval vessels.                                                
       (4) Any other procedures or guidelines the Secretary considers      
   necessary or appropriate to ensure that operational readiness and safety
   are not hindered by activities related to the embarkation of civilian   
   guests on naval vessels.                                                

          SEC. 1048. TECHNICAL AND CLERICAL AMENDMENTS.                           

     (a) Title 10, United States Code.--Title 10, United States Code, is  
  amended as follows:                                                     
       (1) The tables of chapters at the beginning of subtitle A, and at   
   the beginning of part II of subtitle A, are each amended by striking the
   period after ``1111'' in the item relating to chapter 56.               
       (2) Section 119(g)(2) is amended by striking ``National Security    
   Subcommittee'' and inserting ``Subcommittee on Defense''.               
       (3) Section 130c(b)(3)(C) is amended by striking ``subsection (f)'' 
   and inserting ``subsection (g)''.                                       
       (4) Section 176(a)(3) is amended by striking ``Chief Medical        
   Director'' and inserting ``Under Secretary for Health''.                
       (5)(A) Section 503(c) is amended in paragraph (6)(A)(i) by striking 
   ``14101(18)'' and ``8801(18)'' and inserting ``14101'' and ``8801'',    
   respectively.                                                           
       (B) The amendment made by subparagraph (A) shall take effect on July
   1, 2002, immediately after the amendment to such section effective that 
   date by section 563(a) of the Floyd D. Spence National Defense          
   Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
   Law 106 398; 114 Stat. 1654A 131).                                      
     (6) Section 663(e) is amended--                                       

       (A) by striking ``Armed Forces Staff College'' in paragraph (1) and 
   inserting ``Joint Forces Staff College''; and                           
       (B) by striking `` Armed Forces Staff College'' and inserting ``    
   Joint Forces Staff College''.                                           
       (7) Section 667(17) is amended by striking ``Armed Forces Staff     
   College'' both places it appears and inserting ``Joint Forces Staff     
   College''.                                                              
       (8) Section 874(a) is amended by inserting after ``a sentence of    
   confinement for life without eligibility for parole'' the following:    
   ``that is adjudged for an offense committed after October 29, 2000''.   
       (9) Section 1056(c)(2) is amended by striking ``, not later than    
   September 30, 1991,''.                                                  
       (10) The table of sections at the beginning of chapter 55 is amended
   by transferring the item relating to section 1074i, as inserted by      
   section 758(b) of the Floyd D. Spence National Defense Authorization Act
   for Fiscal Year 2001 (as enacted by Public Law 106 398; 114 Stat. 1654A 
   200), so as to appear after the item relating to section 1074h.         
       (11) Section 1097a(e) is amended by striking ``section 1072'' and   
   inserting ``section 1072(2)''.                                          

       (12) Sections 1111(a) and 1114(a)(1) are each amended by striking   
   ``hereafter'' and inserting ``hereinafter''.                            
     (13) Section 1116 is amended--                                        

       (A) in subsection (a)(2)(B), by inserting an open parenthesis before
   ``other than for training''; and                                        
       (B) in subsection (b)(2)(D), by striking ``section 111(c)(4)'' and  
   inserting ``section 1115(c)(4)''.                                       
       (14) The heading for subchapter II of chapter 75 is transferred     
   within that chapter so as to appear before the table of sections at the 
   beginning of that subchapter (as if the amendment made by section       
   721(c)(1) of the National Defense Authorization Act for Fiscal Year 2000
   (Public Law 106 65; 113 Stat. 694) had inserted that heading following  
   section 1471 instead of before section 1475).                           
     (15) Section 1611(d) is amended by striking ``with''.                 

       (16) Section 2166(e)(9) is amended by striking ``App. 2'' and       
   inserting ``App.''.                                                     
     (17) Section 2323(a)(1)(C) is amended--                               

     (A) by striking ``section 1046(3)'' and inserting ``section 365(3)''; 

       (B) by striking ``20 U.S.C. 1135d 5(3)'' and inserting ``20 U.S.C.  
   1067k''; and                                                            
       (C) by striking ``, which, for the purposes of this section'' and   
   all that follows through the period at the end and inserting a period.  
       (18) Section 2375(b) is amended by inserting ``(41 U.S.C. 430)''    
   after ``section 34 of the Office of Federal Procurement Policy Act''.   
       (19) Section 2376(1) is amended by inserting ``(41 U.S.C. 403)''    
   after ``section 4 of the Office of Federal Procurement Policy Act''.    
       (20) Section 2410f(a) is amended by inserting after ``inscription'' 
   the following: ``, or another inscription with the same meaning,''.     
       (21) Section 2461a(a)(2) is amended by striking ``effeciency'' and  
   inserting ``efficiency''.                                               
     (22) Section 2467 is amended--                                        

     (A) in subsection (a)(2)--                                            

     (i) by striking ``, United States Code'' in subparagraph (A); and     

     (ii) by striking ``such'' in subparagraphs (B) and (C); and           

     (B) in subsection (b)(2)(A), by striking ``United States Code,''.     

     (23) Section 2535 is amended--                                        

     (A) in subsection (a)--                                               

       (i) by striking ``intent of Congress'' and inserting ``intent of    
   Congress--'';                                                           
       (ii) by realigning clauses (1), (2), (3), and (4) so that each such 
   clause appears as a separate paragraph indented two ems from the left   
   margin; and                                                             
       (iii) in paragraph (1), as so realigned, by striking ``Armed        
   Forces'' and inserting ``armed forces'';                                
     (B) in subsection (b)(1)--                                            

       (i) by striking ``in this section, the Secretary is authorized and  
   directed to--'' and inserting ``in subsection (a), the Secretary of     
   Defense shall--''; and                                                  
       (ii) by striking ``defense industrial reserve'' in subparagraph (A) 
   and inserting ``Defense Industrial Reserve''; and                       
     (C) in subsection (c)--                                               

     (i) by striking paragraph (1);                                        

       (ii) by redesignating paragraph (2) as paragraph (1) and in that    
   paragraph--                                                             
      (I)bystriking``means''andinserting``means--'';                        

         (II) by realigning clauses (A), (B), and (C) so that each such     
    clause appears as a separate subparagraph indented four ems from the    
    left margin; and                                                        
         (III) by inserting ``and'' at the end of subparagraph (B), as so   
    realigned; and                                                          
     (iii) by redesignating paragraph (3) as paragraph (2).                

       (24) Section 2541c is amended by striking ``subtitle'' both places  
   it appears in the matter preceding paragraph (1) and inserting          
   ``subchapter''.                                                         
       (25) The second section 2582, added by section 1(a) of Public Law   
   106 446 (114 Stat. 1932), is redesignated as section 2583, and the item 
   relating to that section in the table of sections at the beginning of   
   chapter 153 is revised to conform to such redesignation.                
     (26)(A) Section 2693(a) is amended--                                  

       (i) in the matter preceding paragraph (1), by inserting ``of        
   Defense'' after ``Secretary''; and                                      
     (ii) in paragraph (3)--                                               

     (I) by inserting ``to the Secretary of Defense'' after ``certifies''; 

     (II) by inserting ``(42 U.S.C. 3762a)'' after ``of 1968''; and        

       (III) by striking ``to the public agencies referred to in section   
   515(a)(1) or 515(a)(3) of title I of such Act'' and inserting ``to a    
   public agency referred to in paragraph (1) or (3) of subsection (a) of  
   such section''.                                                         
     (B)(i) The heading of such section is amended to read as follows:     

                    ``2693. Conveyance of certain property: Department of Justice 
          correctional options program''.                                         
       (ii) The item relating to such section in the table of sections at  
   the beginning of chapter 159 is amended to read as follows:             


            ``2693. Conveyance of certain property: Department of Justice     
      correctional options program.''.                                        


       (27) Section 3014(f)(3) is amended by striking ``the number equal   
   to'' and all that follows and inserting ``67.''.                        
       (28) Section 5014(f)(3) is amended by striking ``the number equal   
   to'' and all that follows and inserting ``74.''.                        
       (29) Section 8014(f)(3) is amended by striking ``the number equal   
   to'' and all that follows and inserting ``60.''.                        
       (30) Section 9783(e)(1) is amended by striking ``40101(a)(2)'' and  
   inserting ``40102(a)(2)''.                                              
       (31) Section 12741(a)(2) is amended by striking ``received'' and    
   inserting ``receive''.                                                  
     (b) Amendments Relating to Change in Title of Under Secretary of     
  Defense for Acquisition, Technology, and Logistics.--Title 10, United   
  States Code, is further amended as follows:                             
       (1) Section 133a(b) is amended by striking ``shall assist the Under 
   Secretary of Defense for Acquisition and Technology'' and inserting     
   ``shall assist the Under Secretary of Defense for Acquisition,          
   Technology, and Logistics''.                                            
       (2) The following provisions are each amended by striking ``Under   
   Secretary of Defense for Acquisition and Technology'' and inserting     
   ``Under Secretary of Defense for Acquisition, Technology, and           
   Logistics'': sections 139(c), 139(g) (as redesignated by section 263),  
   171(a)(3), 179(a)(1), 1702, 1703, 1707(a), 1722(a), 1722(b)(2)(B),      
   1735(c)(1), 1737(c)(1), 1737(c)(2)(B), 1741(b), 1746(a), 1761(b)(4),    
   1763, 2302c(a)(2), 2304(f)(1)(B)(iii), 2304(f)(6)(B), 2311(c)(1),       
   2311(c)(2)(B), 2350a(e)(1)(A), 2350a(e)(2)(B), 2350a(f)(1), 2399(b)(3), 
   2435(b), 2435(d)(2), 2521(a), and 2534(i)(3).                           
     (3)(A) The heading for section 1702 is amended to read as follows:    

                    ``1702. Under Secretary of Defense for Acquisition,           
          Technology, and Logistics: authorities and responsibilities''.          
       (B) The item relating to section 1702 in the table of sections at   
   the beginning of subchapter I of chapter 87 is amended to read as       
   follows:                                                                


            ``1702. Under Secretary of Defense for Acquisition, Technology,   
      and Logistics: authorities and responsibilities.''.                     


       (4) Section 2503(b) is amended by striking ``Under Secretary of     
   Defense for Acquisition'' and inserting ``Under Secretary of Defense for
   Acquisition, Technology, and Logistics''.                               
     (c) Amendments To Substitute Calendar Dates for Date-of-Enactment    
  References.--Title 10, United States Code, is further amended as        
  follows:                                                                
       (1) Section 130c(d)(1) is amended by striking ``the date of the     
   enactment of the Floyd D. Spence National Defense Authorization Act for 
   Fiscal Year 2001'' and inserting ``October 30, 2000,''.                 
       (2) Section 184(a) is amended by striking ``the date of the         
   enactment of this section,'' and inserting ``October 30, 2000,''.       
       (3) Section 986(a) is amended by striking ``the date of the         
   enactment of this section,'' and inserting ``October 30, 2000,''.       
       (4) Section 1074g(a)(8) is amended by striking ``the date of the    
   enactment of this section'' and inserting ``October 5, 1999,''.         
       (5) Section 1079(h)(2) is amended by striking ``the date of the     
   enactment of this paragraph'' and inserting ``February 10, 1996,''.     
       (6) Section 1206(5) is amended by striking ``the date of the        
   enactment of the National Defense Authorization Act for Fiscal Year     
   2000,'' and inserting ``October 5, 1999,''.                             
       (7) Section 1405(c)(1) is amended by striking ``the date of the     
   enactment of the National Defense Authorization Act for Fiscal Year     
   1995,'' and inserting ``October 5, 1994,''.                             
       (8) Section 1407(f)(2) is amended by striking ``the date of the     
   enactment of this subsection--'' and inserting ``October 30, 2000--''.  

       (9) Section 1408(d)(6) is amended by striking ``the date of the     
   enactment of this paragraph'' and inserting ``August 22, 1996,''.       
       (10) Section 1511(b) is amended by striking ``the date of the       
   enactment of this chapter.'' and inserting ``February 10, 1996.''.      
       (11) Section 2461a(b)(1) is amended by striking ``the date of the   
   enactment of this section,'' and inserting ``October 30, 2000,''.       
       (12) Section 4021(c)(1) is amended by striking ``the date of the    
   enactment of this section.'' and inserting ``November 29, 1989.''.      
       (13) Section 6328(a) is amended by striking ``the date of the       
   enactment of this section'' and inserting ``February 10, 1996,''.       
     (14) Section 7439 is amended--                                        

       (A) in subsection (a)(2), by striking ``one year after the date of  
   the enactment of this section,'' and inserting ``November 18, 1998,'';  
       (B) in subsection (b)(1), by striking ``the date of the enactment of
   this section,'' and inserting ``November 18, 1997,'';                   
       (C) in subsection (b)(2), by striking ``the end of the one-year     
   period beginning on the date of the enactment of this section.'' and    
   inserting ``November 18, 1998.''; and                                   
       (D) in subsection (f)(2), by striking ``the date of the enactment of
   this section'' and inserting ``November 18, 1997,''.                    
     (15) Section 12533 is amended--                                       

       (A) in each of subsections (b) and (c)(1), by striking ``the date of
   the enactment of this section.'' and inserting ``November 18, 1997.'';  
   and                                                                     
       (B) in each of subsections (c)(2) and (d), by striking ``the date of
   the enactment of this section'' and inserting ``November 18, 1997,''.   
     (16) Section 12733(3) is amended--                                    

       (A) in subparagraph (B), by striking ``the date of the enactment of 
   the Floyd D. Spence National Defense Authorization Act for Fiscal Year  
   2001;'' and inserting ``October 30, 2000;''; and                        
       (B) in subparagraph (C), by striking ``the date of the enactment of 
   the Floyd D. Spence National Defense Authorization Act for Fiscal Year  
   2001'' and inserting ``October 30, 2000,''.                             
     (d) Amendments Relating to Change in Title of McKinney-Vento Homeless
  Assistance Act.--The following provisions are each amended by striking  
  ``Stewart B. McKinney Homeless Assistance Act'' and inserting           
  ``McKinney-Vento Homeless Assistance Act'':                             
       (1) Sections 2814(j)(2), 2854a(d)(2), and 2878(d)(4) of title 10,   
   United States Code.                                                     
       (2) Sections 2905(b)(6)(A) and 2910(11) of the Defense Base Closure 
   and Realignment Act of 1990 (part A of title XXIX of Public Law 101 510;
   10 U.S.C. 2687 note).                                                   
       (3) Section 204(b)(6)(A) of the Defense Authorization Amendments and
   Base Closure and Realignment Act (Public Law 100 526; 10 U.S.C. 2687    
   note).                                                                  
       (4) Section 2915(c)(10) of the National Defense Authorization Act   
   for Fiscal Year 1994 (10 U.S.C. 2687 note).                             
       (5) Section 2(e)(4)(A) of the Base Closure Community Redevelopment  
   and Homeless Assistance Act of 1994 (Public Law 103 421; 10 U.S.C. 2687 
   note).                                                                  
       (6) Section 1053(a) of the National Defense Authorization Act for   
   Fiscal Year 1997 (110 Stat. 2650).                                      
     (e) Amendments To Repeal Obsolete Provisions.--Title 10, United      
  States Code, is further amended as follows:                             
     (1) Section 1144 is amended--                                         

     (A) in subsection (a)(3), by striking the second sentence; and        

     (B) by striking subsection (e).                                       

     (2) Section 1581(b) is amended--                                      

       (A) by striking ``(1)'' and all that follows through ``The Secretary
   of Defense shall deposit'' and inserting ``The Secretary of Defense     
   shall deposit''; and                                                    
     (B) by striking ``on or after December 5, 1991,''.                    

     (3) Subsection (e) of section 1722 is repealed.                       

     (4) Subsection 1732(a) is amended by striking the second sentence.    

     (5) Section 1734 is amended--                                         

       (A) in subsection (b)(1)(B), by striking ``on and after October 1,  
   1991,''; and                                                            
     (B) in subsection (e)(2), by striking the last sentence.              

     (6)(A) Section 1736 is repealed.                                      

       (B) The table of sections at the beginning of subchapter III of     
   chapter 87 is amended by striking the item relating to section 1736.    
     (7)(A) Sections 1762 and 1764 are repealed.                           

       (B) The table of sections at the beginning of subchapter V of       
   chapter 87 is amended by striking the items relating to sections 1762   
   and 1764.                                                               
       (8) Section 2112(a) is amended by striking ``, with the first class 
   graduating not later than September 21, 1982''.                         
       (9) Section 2218(d)(1) is amended by striking ``for fiscal years    
   after fiscal year 1993''.                                               
     (10)(A) Section 2468 is repealed.                                     

       (B) The table of sections at the beginning of chapter 146 is amended
   by striking the item relating to section 2468.                          
     (11) Section 2832 is amended--                                        

     (A) by striking ``(a)'' before ``The Secretary of Defense''; and      

     (B) by striking subsection (b).                                       

     (12) Section 7430(b)(2) is amended--                                  

       (A) by striking ``at a price less than'' and all that follows       
   through ``the current sales price'' and inserting ``at a price less than
   the current sales price'';                                              
     (B) by striking ``; or'' and inserting a period; and                  

     (C) by striking subparagraph (B).                                     

     (f) Public Law 106 398.--Effective as of October 30, 2000, and as if 
  included therein as enacted, the Floyd D. Spence National Defense       
  Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
  Law 106 398) is amended as follows:                                     
       (1) Section 525(b)(1) (114 Stat. 1654A 109) is amended by striking  
   ``subsection (c)'' and inserting ``subsections (a) and (b)''.           
       (2) Section 1152(c)(2) (114 Stat. 1654A 323) is amended by inserting
   ``inserting'' after ``and''.                                            
     (g) Public Law 106 65.--Effective as of October 5, 1999, and as if   
  included therein as enacted, the National Defense Authorization Act for 
  Fiscal Year 2000 (Public Law 106 65) is amended as follows:             
       (1) Section 531(b)(2)(A) (113 Stat. 602) is amended by inserting    
   ``in subsection (a),'' after ``(A)''.                                   
       (2) Section 549(a)(2) (113 Stat. 611) is amended by striking ``such 
   chapter'' and inserting ``chapter 49 of title 10, United States Code,''.
       (3) Section 576(a)(3) (10 U.S.C. 1501 note; 113 Stat. 625) is       
   amended by adding a period at the end.                                  
       (4) Section 577(a)(2) (113 Stat. 625) is amended by striking ``bad  
   conduct'' in the first quoted matter and inserting ``bad-conduct''.     
       (5) Section 811(d)(3)(B)(v) (10 U.S.C. 2302 note; 113 Stat. 709) is 
   amended by striking ``Mentor-Protegee'' and inserting                   
   ``Mentor-Protege''.                                                     
       (6) Section 1052(b)(1) (113 Stat. 764) is amended by striking ```The
   Department'' and inserting ``the `Department''.                         
       (7) Section 1053(a)(5) (10 U.S.C. 113 note; 113 Stat. 764) is       
   amended by inserting ``and'' before ``Marines''.                        
       (8) Section 1402(f)(2)(A) (22 U.S.C. 2778 note; 113 Stat. 799) is   
   amended by striking ``3201 note'' and inserting ``6305(4)''.            
       (9) Section 2902(d) (10 U.S.C. 111 note; 113 Stat. 882) is amended  
   by striking ``section 2871(b)'' and inserting ``section 2881(b)''.      
     (h) Public Law 102 484.--The National Defense Authorization Act for  
  Fiscal Year 1993 (Public Law 102 484) is amended as follows:            
       (1) Section 3161(c)(6)(C) (42 U.S.C. 7274h(c)(6)(C)) is amended by  
   striking ``title IX of the Public Works and Economic Development Act of 
   1965 (42 U.S.C. 3241 et seq.)'' and inserting ``title II of the Public  
   Works and Economic Development Act of 1965 (42 U.S.C. 3141 et seq.)''.  
       (2) Section 4416(b)(1) (10 U.S.C. 12681 note) is amended by striking
   ``force reduction period'' and inserting ``force reduction transition   
   period''.                                                               
       (3) Section 4461(5) (10 U.S.C. 1143 note) is amended by adding a    
   period at the end.                                                      
    (i)  Other Laws.--                                                    

       (1) Section 1083(c) of the National Defense Authorization Act for   
   Fiscal Year 1998 (Public Law 105 85; 10 U.S.C. 113 note) is amended by  
   striking `` Names'' and inserting `` Name''.                            
       (2) Section 845(d)(1)(B)(ii) of the National Defense Authorization  
   Act for Fiscal Year 1994 (Public Law 103 160; 10 U.S.C. 2371 note) is   
   amended by inserting a closed parenthesis after ``41 U.S.C. 414(3))''.  
       (3) Section 1123(b) of the National Defense Authorization Act for   
   Fiscal Years 1990 and 1991 (Public Law 101 189; 103 Stat. 1556) is      
   amended by striking ``Armed Forces Staff College'' each place it appears
   and inserting ``Joint Forces Staff College''.                           
       (4) Section 1412(g)(2)(C)(vii) of the Department of Defense         
   Authorization Act, 1986 (50 U.S.C. 1521(g)(2)(C)(vii)) is amended by    
   striking ``(c)(3)'' and inserting ``(c)(4)''.                           
     (5) Section 8336 of title 5, United States Code, is amended--         


       (A) in subsection (d)(2), by striking ``subsection (o)'' and        
   inserting ``subsection (p)''; and                                       
       (B) by redesignating the second subsection (o), added by section    
   1152(a)(2) of the Floyd D. Spence National Defense Authorization Act for
   Fiscal Year 2001 (as enacted by Public Law 106 398; 114 Stat. 1654A     
   320), as subsection (p).                                                
       (6) Section 9001(3) of title 5, United States Code, is amended by   
   striking ``and'' at the end of subparagraph (A) and inserting ``or''.   
       (7) Section 318(h)(3) of title 37, United States Code, is amended by
   striking ``subsection (a)'' and inserting ``subsection (b)''.           
       (8) Section 3695(a)(5) of title 38, United States Code, is amended  
   by striking ``1610'' and inserting ``1611''.                            
       (9) Section 13(b) of the Peace Corps Act (22 U.S.C. 2512(b)) is     
   amended by striking ``, subject to section 5532 of title 5, United      
   States Code''.                                                          
       (10) Section 127(g)(6) of the Trade Deficit Review Commission Act   
   (19 U.S.C. 2213 note), as amended by section 311(b) of the Legislative  
   Branch Appropriations Act, 2000 (Public Law 106 57; 113 Stat. 428), is  
   amended--                                                               
       (A) by striking `` authorities.--'' and all that follows through    
   ``An individual'' and inserting `` authorities.--An individual''; and   
     (B) by striking subparagraph (B).                                     

       (11) Section 28 of the Atomic Energy Act of 1954 (42 U.S.C. 2038) is
   amended in the last sentence by striking '', subject to'' and all that  
   follows through the period at the end and inserting a period.           
       (12) Section 3212 of the National Nuclear Security Administration   
   Act (50 U.S.C. 2402) is amended by redesignating the second subsection  
   (e), added by section 3159(a) of the Floyd D. Spence National Defense   
   Authorization Act for Fiscal Year 2001 (as enacted by Public Law 106    
   398; 114 Stat. 1654A 469), as subsection (f).                           
     (j) Coordination With Other Amendments.--For purposes of applying    
  amendments made by provisions of this Act other than provisions of this 
  section, this section shall be treated as having been enacted           
  immediately before the other provisions of this Act.                    

                    SEC. 1049. TERMINATION OF REFERENDUM REQUIREMENT REGARDING    
          CONTINUATION OF MILITARY TRAINING ON ISLAND OF VIEQUES, PUERTO RICO, AND
          IMPOSITION OF ADDITIONAL CONDITIONS ON CLOSURE OF TRAINING RANGE.       
     (a) In General.--Title XV of the Floyd D. Spence National Defense    
  Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
  Law 106 398; 114 Stat. 1654A 348) is amended by striking sections 1503, 
  1504, and 1505 and inserting the following new sections:                
          ``SEC. 1503. CONDITIONS ON CLOSURE OF VIEQUES NAVAL TRAINING RANGE.     

     ``(a) Conditional Authority to Close.--The Secretary of the Navy may 
  close the Vieques Naval Training Range on the island of Vieques, Puerto 
  Rico, and discontinue training at that range only if the Secretary      
  certifies to the President and Congress that both of the following      
  conditions are satisfied:                                               
       ``(1) One or more alternative training facilities exist that,       
   individually or collectively, provide an equivalent or superior level of
   training for units of the Navy and the Marine Corps stationed or        
   deployed in the eastern United States.                                  
       ``(2) The alternative facility or facilities are available and fully
   capable of supporting such Navy and Marine Corps training immediately   
   upon cessation of training on Vieques.                                  
     ``(b) Consultation Required.--In determining whether the conditions  
  specified in paragraphs (1) and (2) of subsection (a) are satisfied, the
  Secretary of the Navy shall take into account the written views and     
  recommendations of the Chief of Naval Operations and the Commandant of  
  the Marine Corps. The Secretary shall submit these written views and    
  recommendations to Congress with the certification submitted under      
  subsection (a).                                                         
                    ``SEC. 1504. CLOSURE OF VIEQUES NAVAL TRAINING RANGE AND      
          DISPOSAL OF CLOSED RANGE.                                               
     ``(a) Termination of Training and Related Closures.--If the          
  conditions specified in section 1503(a) are satisfied and the Secretary 
  of the Navy makes a determination to close the Vieques Naval Training   
  Range and discontinue live-fire training at that range the Secretary of 
  the Navy shall--                                                        
       ``(1) terminate all Navy and Marine Corps training operations on the
   island of Vieques;                                                      
       ``(2) terminate all Navy and Marine Corps operations at Naval       
   Station Roosevelt Roads, Puerto Rico, that are related exclusively to   
   the use of the training range on the island of Vieques by the Navy and  
   the Marine Corps; and                                                   
       ``(3) close the Navy installations and facilities on the island of  
   Vieques, other than properties exempt from conveyance and transfer under
   section 1506.                                                           
     ``(b) Transfer to Secretary of the Interior.--Upon termination of    
  Navy and Marine Corps training operations on the island of Vieques, the 
  Secretary of the Navy shall transfer, without reimbursement, to the     
  administrative jurisdiction of the Secretary of the Interior--          
     ``(1) the Live Impact Area on the island of Vieques;                  

       ``(2) all Department of Defense real properties on the eastern side 
   of the island that are identified as conservation zones; and            
       ``(3) all other Department of Defense real properties on the eastern
   side of the island.                                                     
    ``(c)  Administration by Secretary of the Interior.--                 

       ``(1) Retention and administration.--The Secretary of the Interior  
   shall retain, and may not dispose of any of, the properties transferred 
   under paragraphs (2) and (3) of subsection (b) and shall administer such
   properties as wildlife refuges under the National Wildlife Refuge System
   Administration Act of 1966 (16 U.S.C. 668dd et seq.) pending the        
   enactment of a law that addresses the disposition of such properties.   
       ``(2) Live impact area.--The Secretary of the Interior shall assume 
   responsibility for the administration of the Live Impact Area upon      
   transfer under paragraph (1) of subsection (b), administer that area as 
   a wilderness area under the Wilderness Act (16 U.S.C. 1131 et seq.), and
   deny public access to the area.                                         
     ``(d) Live Impact Area Defined.--In this section, the term `Live     
  Impact Area' means the parcel of real property, consisting of           
  approximately 900 acres (more or less), on the island of Vieques that is
  designated by the Secretary of the Navy for targeting by live ordnance  
  in the training of forces of the Navy and Marine Corps.''.              
     (b) Conforming Amendment.--Section 1507(c) of such Act (114 Stat.    
  1654A 355) is amended by striking ``the issuance of a proclamation      
  described in section 1504(a) or''.                                      

           Subtitle F--Other Matters                                               


          SEC. 1061. ASSISTANCE FOR FIREFIGHTERS.                                 

     (a) Authorization of Appropriations.--Subsection (e) of section 33 of
  the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229) is 
  amended to read as follows:                                             
    ``(e)  Authorization of Appropriations.--                             

       ``(1) In general.--There are authorized to be appropriated          
   $900,000,000 for each of the fiscal years 2002 through 2004 for the     
   purposes of this section.                                               
       ``(2) Administrative expenses.--Of the funds appropriated pursuant  
   to paragraph (1) for a fiscal year, the Director may use not more than  
   three percent of the funds to cover salaries and expenses and other     
   administrative costs incurred by the Director to operate the office     
   established under subsection (b)(2) and make grants and provide         
   assistance under this section.''.                                       
     (b) Response to Terrorism or Use of Weapons of Mass                  
  Destruction.--Subsection (b)(3) of such section is amended--            
       (1) in subparagraph (B), by inserting ``(including response to a    
   terrorism incident or use of a weapon of mass destruction)'' after      
   ``response'';                                                           
       (2) in subparagraph (H), by striking ``and monitoring'' and         
   inserting ``, monitoring, and response to a terrorism incident or use of
   a weapon of mass destruction''; and                                     
       (3) in subparagraph (I), by inserting ``, including protective      
   equipment to respond to a terrorism incident or the use of a weapon of  
   mass destruction'' after ``personnel'' the second place it appears.     
     (c) Technical Amendments.--Subsection (b)(3) of such section is      
  further amended--                                                       
       (1) by striking ``the grant funds--'' in the matter preceding       
   subparagraph (A) and inserting ``the grant funds for one or more of the 
   following purposes:'';                                                  
       (2) by capitalizing the initial letter of the first word of each of 
   subparagraphs (A) through (N);                                          
       (3) by striking the semicolon at the end of each of subparagraphs   
   (A) through (L) and inserting a period; and                             
       (4) by striking ``; or'' at the end of subparagraph (M) and         
   inserting a period.                                                     

                    SEC. 1062. EXTENSION OF TIMES FOR COMMISSION ON THE FUTURE OF 
          THE UNITED STATES AEROSPACE INDUSTRY TO REPORT AND TO TERMINATE.        
     (a) Deadline for Report.--Subsection (d)(1) of section 1092 of the   
  Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
  (as enacted into law by Public Law 106 398; 114 Stat. 1654A 302) is     
  amended by striking ``March 1, 2002'' and inserting ``one year after the
  date of the first official meeting of the Commission''.                 

     (b) Termination of Commission.--Subsection (g) of such section is    
  amended by striking ``30 days'' and inserting ``60 days''.              

          SEC. 1063. APPROPRIATIONS TO RADIATION EXPOSURE COMPENSATION TRUST FUND.

     Section 3(e) of the Radiation Exposure Compensation Act (42 U.S.C.   
  2210 note) is amended to read as follows:                               
    ``(e)  Appropriation.--                                               

       ``(1) In general.--There are appropriated to the Fund, out of any   
   money in the Treasury not otherwise appropriated, for fiscal year 2002  
   and each fiscal year thereafter through fiscal year 2011, such sums as  
   may be necessary, not to exceed the applicable maximum amount specified 
   in paragraph (2), to carry out the purposes of the Fund.                
       ``(2) Limitation.--Appropriation of amounts to the Fund pursuant to 
   paragraph (1) is subject to the following maximum amounts:              
     ``(A) For fiscal year 2002, $172,000,000.                             

     ``(B) For fiscal year 2003, $143,000,000.                             

     ``(C) For fiscal year 2004, $107,000,000.                             

     ``(D) For fiscal year 2005, $65,000,000.                              

     ``(E) For fiscal year 2006, $47,000,000.                              

     ``(F) For fiscal year 2007, $29,000,000.                              

     ``(G) For fiscal year 2008, $29,000,000.                              

     ``(H) For fiscal year 2009, $23,000,000.                              

     ``(I) For fiscal year 2010, $23,000,000.                              

     ``(J) For fiscal year 2011, $17,000,000.''.                           


                    SEC. 1064. WAIVER OF VEHICLE WEIGHT LIMITS DURING PERIODS OF  
          NATIONAL EMERGENCY.                                                     
     Section 127 of title 23, United States Code, is amended by adding at 
  the end the following new subsection:                                   
     ``(h) Waiver for a Route in State of Maine During Periods of National
  Emergency.--                                                            
       ``(1) In general.--Notwithstanding any other provision of this      
   section, the Secretary, in consultation with the Secretary of Defense,  
   may waive or limit the application of any vehicle weight limit          
   established under this section with respect to the portion of Interstate
   Route 95 in the State of Maine between Augusta and Bangor for the       
   purpose of making bulk shipments of jet fuel to the Air National Guard  
   Base at Bangor International Airport during a period of national        
   emergency in order to respond to the effects of the national emergency. 
       ``(2) Applicability.--Emergency limits established under paragraph  
   (1) shall preempt any inconsistent State vehicle weight limits.''.      

                    SEC. 1065. REPAIR, RESTORATION, AND PRESERVATION OF LAFAYETTE 
          ESCADRILLE MEMORIAL, MARNES-LA-COQUETTE, FRANCE.                        
     (a) Authority To Make Grant.--(1) Subject to subsections (b) and (c),
  the Secretary of the Air Force may make a grant to the Lafayette        
  Escadrille Memorial Foundation, Inc., to be used solely for the purpose 
  of repairing, restoring, and preserving the structure, plaza, and       
  surrounding grounds of the Lafayette Escadrille Memorial in Marnes      
  la-Coquette, France.                                                    
    (2) The amount of the grant may not exceed $2,000,000.                

     (b) Contribution of Funds by France.--The Secretary of the Air Force 
  may not make the grant authorized by subsection (a) until 30 days after 
  the Secretary submits to Congress a report indicating that the          
  government of France has also contributed funds toward the repair,      
  restoration, and preservation of the memorial. The report shall specify 
  the amount of the funds contributed by the government of France and     
  describe the purpose for which the funds are to be used.                
     (c) Conditions on Receipt of Grant.--(1) The grant under subsection  
  (a) shall be subject to the following conditions:                       
       (A) That the Lafayette Escadrille Memorial Foundation submit to the 
   Secretary of the Air Force an annual report, until the grant funds are  
   fully expended, containing an itemized accounting of expenditures of    
   grant funds and describing the progress made to repair, restore, and    
   preserve the memorial.                                                  
       (B) That the Secretary and the Comptroller General of the United    
   States, or any of their duly authorized representatives, be given access
   for the purpose of audit and examination to any books, documents,       
   papers, and records of the Lafayette Escadrille Memorial Foundation.    
       (C) That none of the grant funds be used for remuneration of any    
   entity or individual associated with fundraising for any project in     
   connection with the repair, restoration, and preservation of the        
   memorial.                                                               
     (2) The Secretary shall transmit to Congress a copy of each report   
  received under paragraph (1)(A).                                        
     (d) Report on Architectural and Engineering Costs.--Not later than   
  one year after the date of the enactment of this Act, the Secretary of  
  the Air Force shall submit to Congress a report containing an estimate  
  of the architectural and engineering costs to be incurred to fully      
  repair, restore, and preserve the memorial and ensure the long-term     
  structural integrity of the memorial. The estimate shall be prepared by 
  a private United States entity, under contract with the Secretary. Funds
  for the contract shall also be derived from the amount specified in     
  subsection (e).                                                         
     (e) Funds for Grant.--Funds for the grant under subsection (a) shall 
  be derived only from amounts authorized to be appropriated under section
  301(a)(4) for operation and maintenance for the Air Force.              

           TITLE XI--CIVILIAN PERSONNEL MATTERS                                    


                    SUBTITLE A--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL          

            Sec. 1101. Personnel pay and qualifications authority for         
      Department of Defense Pentagon Reservation civilian law enforcement and 
      security force.                                                         
      Sec. 1102. Pilot program for payment of retraining expenses.            

      Sec. 1103. Authority of civilian employees to act as notaries.          

            Sec. 1104. Authority to appoint certain health care professionals 
      in the excepted service.                                                
                     SUBTITLE B--CIVILIAN PERSONNEL MANAGEMENT GENERALLY          

      Sec. 1111. Authority to provide hostile fire pay.                       

      Sec. 1112. Payment of expenses to obtain professional credentials.      

            Sec. 1113. Parity in establishment of wage schedules and rates for
      prevailing rate employees.                                              
      Sec. 1114. Modification of limitation on premium pay.                   

            Sec. 1115. Participation of personnel in technical standards      
      development activities.                                                 
      Sec. 1116. Retention of travel promotional items.                       

            Sec. 1117. Applicability of certain laws to certain individuals   
      assigned to work in the Federal Government.                             
                         SUBTITLE C--INTELLIGENCE CIVILIAN PERSONNEL              

            Sec. 1121. Authority to increase maximum number of positions in   
      the Defense Intelligence Senior Executive Service.                      
                         SUBTITLE D--MATTERS RELATING TO RETIREMENT               

            Sec. 1131. Improved portability of retirement coverage for        
      employees moving between civil service employment and employment by     
      nonappropriated fund instrumentalities.                                 
            Sec. 1132. Federal employment retirement credit for               
      nonappropriated fund instrumentality service.                           
            Sec. 1133. Modification of limitations on exercise of voluntary   
      separation incentive pay authority and voluntary early retirement       
      authority.                                                              

           Subtitle A--Department of Defense Civilian Personnel                    

                    SEC. 1101. PERSONNEL PAY AND QUALIFICATIONS AUTHORITY FOR     
          DEPARTMENT OF DEFENSE PENTAGON RESERVATION CIVILIAN LAW ENFORCEMENT AND 
          SECURITY FORCE.                                                         
    Section 2674(b) of title 10, United States Code, is amended--         

       (1) by inserting ``(1)'' before the text in the first paragraph of  
   that subsection;                                                        
       (2) by redesignating paragraphs (1) and (2) as subparagraphs (A) and
   (B), respectively; and                                                  
     (3) by adding at the end the following new paragraph:                 

     ``(2) For positions for which the permanent duty station is the      
  Pentagon Reservation, the Secretary, in his sole and exclusive          
  discretion, may without regard to the pay provisions of title 5, fix the
  rates of basic pay for such positions occupied by civilian law          
  enforcement and security personnel appointed under the authority of this
  section so as to place such personnel on a comparable basis with        
  personnel of other similar Federal law enforcement and security         
  organizations within the vicinity of the Pentagon Reservation, not to   
  exceed the basic pay for personnel performing similar duties in the     
  United States Secret Service Uniformed Division or the United States    
  Park Police.''.                                                         
          SEC. 1102. PILOT PROGRAM FOR PAYMENT OF RETRAINING EXPENSES.            

     (a) Authority To Carry Out Pilot Program.--(1) The Secretary of      
  Defense may establish a pilot program to facilitate the reemployment of 
  eligible employees of the Department of Defense who are involuntarily   
  separated due to a reduction in force, relocation as a result of a      
  transfer of function, realignment, or change of duty station. Under the 
  pilot program, the Secretary may pay retraining incentives to encourage 
  non-Federal employers to hire and retain such eligible employees.       
     (2) Under the pilot program, the Secretary may enter into an         
  agreement with a non-Federal employer under which the employer agrees-- 
       (A) to employ an eligible employee for at least 12 months at a      
   salary that is mutually agreeable to the employer and the eligible      
   employee; and                                                           
       (B) to certify to the Secretary the amount of costs incurred by the 
   employer for any necessary training (as defined by the Secretary)       
   provided to such eligible employee in connection with the employment.   
     (3) The Secretary may pay a retraining incentive to the non-Federal  
  employer upon the employee's completion of 12 months of continuous      
  employment with that employer. The Secretary shall determine the amount 
  of the incentive, except that in no event may such amount exceed the    
  lesser of the amount certified with respect to such eligible employee   
  under paragraph (2)(B), or $10,000.                                     
     (4) In a case in which an eligible employee does not remain employed 
  by the non-Federal employer for at least 12 months, the Secretary may   
  pay to the employer a prorated amount of what would have been the full  
  retraining incentive if the eligible employee had remained employed for 
  such 12-month period.                                                   
     (b) Eligible Employees.--For purposes of this section, an eligible   
  employee is an employee of the Department of Defense, serving under an  
  appointment without time limitation, who has been employed by the       
  Department for a continuous period of at least 12 months and who has    
  been given notice of separation pursuant to a reduction in force,       
  relocation as a result of a transfer of function, realignment, or change
  of duty station, except that such term does not include--               
       (1) a reemployed annuitant under the retirement systems described in
   subchapter III of chapter 83 of title 5, United States Code, or chapter 
   84 of such title, or another retirement system for employees of the     
   Federal Government;                                                     
       (2) an employee who, upon separation from Federal service, is       
   eligible for an immediate annuity under subchapter III of chapter 83 of 
   such title, or subchapter II of chapter 84 of such title; or            
       (3) an employee who is eligible for disability retirement under any 
   of the retirement systems referred to in paragraph (1).                 
     (c) Duration.--No incentive may be paid under the pilot program for  
  training commenced after September 30, 2005.                            
    (d)  Definitions.--In this section:                                   

       (1) The term ``non-Federal employer'' means an employer that is not 
   an Executive agency, as defined in section 105 of title 5, United States
   Code, or an entity in the legislative or judicial branch of the Federal 
   Government.                                                             
       (2) The term ``reduction in force'' has the meaning of that term as 
   used in chapter 35 of such title 5.                                     
       (3) The term ``realignment'' has the meaning given that term in     
   section 2910 of the Defense Base Closure and Realignment Act of 1990    
   (title XXIX of Public Law 101 510; 10 U.S.C. 2687 note).                
          SEC. 1103. AUTHORITY OF CIVILIAN EMPLOYEES TO ACT AS NOTARIES.          

     (a) Clarification of Status of Civilian Attorneys Eligible To Act as 
  Notaries.--Subsection (b) of section 1044a of title 10, United States   
  Code, is amended by striking ``legal assistance officers'' in paragraph 
  (2) and inserting ``legal assistance attorneys''.                       
     (b) Other Civilian Employees Designated To Act as Notaries           
  Abroad.--Such subsection is further amended by adding at the end the    
  following new paragraph:                                                
       ``(5) For the performance of notarial acts at locations outside the 
   United States, all employees of a military department or the Coast Guard
   who are designated by regulations of the Secretary concerned or by      
   statute to have those powers for exercise outside the United States.''. 

                    SEC. 1104. AUTHORITY TO APPOINT CERTAIN HEALTH CARE           
          PROFESSIONALS IN THE EXCEPTED SERVICE.                                  
     (a) Authority.--Chapter 81 of title 10, United States Code, is       
  amended by adding at the end the following new section:                 
                    ``1599c. Appointment in excepted service of certain health    
          care professionals                                                      
     ``(a) Authority.--The Secretary of Defense may appoint in the        
  excepted service without regard to the provisions of subchapter I of    
  chapter 33 of title 5 (except as provided in section 3328 of such title 
  and in subsection (c) of this section) an individual who has--          
       ``(1) a recognized degree or certificate from an accredited         
   institution in a covered health care profession or occupation; and      
       ``(2) successfully completed a clinical education program affiliated
   with the Department of Defense or the Department of Veterans Affairs.   
     ``(b) Covered Health Care Profession or Occupation.--For purposes of 
  subsection (a), a covered health care profession or occupation is any of
  the following:                                                          
     ``(1) Physician.                                                      

     ``(2) Dentist.                                                        

     ``(3) Podiatrist.                                                     

     ``(4) Optometrist.                                                    

     ``(5) Nurse.                                                          

     ``(6) Physician assistant.                                            

     ``(7) Expanded-function dental auxiliary.                             

     ``(c) Preferences in Hiring.--In using the authority provided by this
  section, the Secretary shall apply the principles of preference for the 
  hiring of veterans and other individuals established in subchapter I of 
  chapter 33 of title 5.                                                  
     ``(d) Probationary Period.--There shall be an initial probationary   
  period of two years for appointments made under the authority of this   
  section.                                                                
     ``(e) Promotions and Advancement.--(1) Promotions of individuals     
  appointed under the authority of this section shall be made only after  
  an examination performed in accordance with regulations prescribed by   
  the Secretary.                                                          
     ``(2) Advancement of such individuals within a pay grade may be made 
  in increments of the minimum rate of basic pay of the grade in          
  accordance with regulations prescribed by the Secretary.                
     ``(f) Review of Records by Board.--The record of each individual     
  appointed under the authority of this section in the medical, dental,   
  and nursing services shall be reviewed periodically by a board, which   
  shall be appointed in accordance with regulations prescribed by the     
  Secretary. If such board finds that such individual is not fully        
  qualified and satisfactory, such individual shall be separated from     
  service.                                                                
     ``(g) Adjustment of Pay.--In accordance with regulations prescribed  
  by the Secretary, the grade and annual rate of basic pay of an          
  individual appointed under this section whose level of assignment is    
  changed from a level of assignment in which the grade level is based on 
  both the nature of the assignment and qualifications may be adjusted to 
  the grade and annual rate of basic pay otherwise appropriate.           
     ``(h) Appointment to Additional Positions.--(1) The Secretary may use
  the authority of this subsection (subject to paragraph (2)) to establish
  the qualifications for, and appoint and advance an individual in the    
  Department of Defense as--                                              
       ``(A) a clinical or counseling psychologist (if such psychologist   
   holds a diploma as a diplomate in psychology from an accrediting        
   authority approved by the Secretary);                                   
     ``(B) a certified or registered respiratory therapist;                

     ``(C) a licensed physical therapist;                                  

     ``(D) a licensed practical or vocational nurse;                       

     ``(E) a pharmacist; or                                                

     ``(F) an occupational therapist.                                      

     ``(2) Notwithstanding any other provision of this title or any other 
  law, all matters relating to adverse actions, disciplinary actions, and 
  grievance procedures involving an individual appointed to a position    
  described in paragraph (1) (including such actions and procedures       
  involving an employee in a probationary status) shall be resolved under 
  the provisions of title 5 as though such individual had been appointed  
  under such title.                                                       
     ``(i) Reinstatement.--In determining eligibility for reinstatement in
  the civil service of individuals appointed to positions in the          
  Department of Defense under this section who at the time of appointment 
  have a civil service status and whose employment in the Department of   
  Defense is terminated, the period of service performed in the Department
  shall be included in computing the period of service under applicable   
  civil service regulations.''.                                           
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    


            ``1599c. Appointment in excepted service of certain health care   
      professionals.''.                                                       

           Subtitle B--Civilian Personnel Management Generally                     

          SEC. 1111. AUTHORITY TO PROVIDE HOSTILE FIRE PAY.                       

     (a) In General.--Subchapter IV of chapter 59 of title 5, United      
  States Code, is amended by adding at the end the following new section: 
          ``5949. Hostile fire pay                                                

     ``(a) The head of an Executive agency may pay an employee hostile    
  fire pay at the rate of $150 for any month in which the employee was--  
     ``(1) subject to hostile fire or explosion of hostile mines;          

       ``(2) on duty in an area in which the employee was in imminent      
   danger of being exposed to hostile fire or explosion of hostile mines   
   and in which, during the period on duty in that area, other employees   
   were subject to hostile fire or explosion of hostile mines; or          
       ``(3) killed, injured, or wounded by hostile fire, explosion of a   
   hostile mine, or any other hostile action.                              
     ``(b) An employee covered by subsection (a)(3) who is hospitalized   
  for the treatment of his or her injury or wound may be paid hostile fire
  pay under this section for not more than three additional months during 
  which the employee is so hospitalized.                                  
     ``(c) An employee may be paid hostile fire pay under this section in 
  addition to other pay and allowances to which entitled, except that an  
  employee may not be paid hostile fire pay under this section for periods
  of time during which the employee receives payment under section 5925 of
  this title because of exposure to political violence or payment under   
  section 5928 of this title.''.                                          
     (b) Technical Amendment.--The table of sections at the beginning of  
  chapter 59 of such title is amended by inserting at the end the         
  following new item:                                                     


      ``5949. Hostile fire pay.''.                                            


     (c) Effective Date.--This provision is effective as if enacted into  
  law on September 11, 2001, and may be applied with respect to any       
  hostile action that took place on or after that date.                   
          SEC. 1112. PAYMENT OF EXPENSES TO OBTAIN PROFESSIONAL CREDENTIALS.      

     (a) In General.--Chapter 57 of title 5, United States Code, is       
  amended by adding at the end the following new section:                 
          ``5757. Payment of expenses to obtain professional credentials          

     ``(a) An agency may use appropriated funds or funds otherwise        
  available to the agency to pay for--                                    
       ``(1) expenses for employees to obtain professional credentials,    
   including expenses for professional accreditation, State-imposed and    
   professional licenses, and professional certification; and              
     ``(2) examinations to obtain such credentials.                        

     ``(b) The authority under subsection (a) may not be exercised on     
  behalf of any employee occupying or seeking to qualify for appointment  
  to any position that is excepted from the competitive service because of
  the confidential, policy-determining, policy-making, or                 
  policy-advocating character of the position.''.                         
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    


      ``5757. Payment of expenses to obtain professional credentials.''.      


                    SEC. 1113. PARITY IN ESTABLISHMENT OF WAGE SCHEDULES AND RATES
          FOR PREVAILING RATE EMPLOYEES.                                          
     (a) In General.--Paragraph (2) of section 5343(d) of title 5, United 
  States Code, is amended to read as follows:                             
     ``(2) When the lead agency determines that there is a number of      
  comparable positions in private industry insufficient to establish the  
  wage schedules and rates, such agency shall establish the wage schedules
  and rates on the basis of--                                             
     ``(A) local private industry rates; and                               

       ``(B) rates paid for comparable positions in private industry in the
   nearest wage area that such agency determines is most similar in the    
   nature of its population, employment, manpower, and industry to the     
   local wage area for which the wage survey is being made.''.             
     (b) Effective Date.--Wage adjustments made pursuant to the amendment 
  made by this section shall take effect in each applicable wage area on  
  the first normal effective date of the applicable wage survey adjustment
  that occurs after the date of the enactment of this Act.                
          SEC. 1114. MODIFICATION OF LIMITATION ON PREMIUM PAY.                   

     (a) In General.--Section 5547 of title 5, United States Code, is     
  amended to read as follows:                                             
          ``5547. Limitation on premium pay                                       

     ``(a) An employee may be paid premium pay under sections 5542,       
  5545(a), (b), and (c), 5545a, and 5546(a) and (b) only to the extent    
  that the payment does not cause the aggregate of basic pay and such     
  premium pay for any pay period for such employee to exceed the greater  
  of--                                                                    
       ``(1) the maximum rate of basic pay payable for GS 15 (including any
   applicable locality-based comparability payment under section 5304 or   
   similar provision of law and any applicable special rate of pay under   
   section 5305 or similar provision of law); or                           
     ``(2) the rate payable for level V of the Executive Schedule.         

     ``(b)(1) Subject to regulations prescribed by the Office of Personnel
  Management, subsection (a) shall not apply to an employee who is paid   
  premium pay by reason of work in connection with an emergency (including
  a wildfire emergency) that involves a direct threat to life or property,
  including work performed in the aftermath of such an emergency.         
     ``(2) Notwithstanding paragraph (1), no employee referred to in such 
  paragraph may be paid premium pay under the provisions of law cited in  
  subsection (a) if, or to the extent that, the aggregate of the basic pay
  and premium pay under those provisions for such employee would, in any  
  calendar year, exceed the greater of--                                  
       ``(A) the maximum rate of basic pay payable for GS 15 in effect at  
   the end of such calendar year (including any applicable locality-based  
   comparability payment under section 5304 or similar provision of law and
   any applicable special rate of pay under section 5305 or similar        
   provision of law); or                                                   
       ``(B) the rate payable for level V of the Executive Schedule in     
   effect at the end of such calendar year.                                
     ``(3) Subject to regulations prescribed by the Office of Personnel   
  Management, the head of an agency may determine that subsection (a)     
  shall not apply to an employee who is paid premium pay to perform work  
  that is critical to the mission of the agency. Such employees may be    
  paid premium pay under the provisions of law cited in subsection (a) if,
  or to the extent that, the aggregate of the basic pay and premium pay   
  under those provisions for such employee would not, in any calendar     
  year, exceed the greater of--                                           
       ``(A) the maximum rate of basic pay payable for GS 15 in effect at  
   the end of such calendar year (including any applicable locality-based  
   comparability payment under section 5304 or similar provision of law and
   any applicable special rate of pay under section 5305 or similar        
   provision of law); or                                                   
       ``(B) the rate payable for level V of the Executive Schedule in     
   effect at the end of such calendar year.                                
     ``(c) The Office of Personnel Management shall prescribe regulations 
  governing the methods of applying subsection (b)(2) and (b)(3) to       
  employees who receive premium pay under section 5545(c) or 5545a, or to 
  firefighters covered by section 5545b who receive overtime pay for hours
  in their regular tour of duty, and the method of payment to such        
  employees. Such regulations may limit the payment of such premium pay on
  a biweekly basis.                                                       

     ``(d) This section shall not apply to any employee of the Federal    
  Aviation Administration or the Department of Defense who is paid premium
  pay under section 5546a.''.                                             
     (b) Conforming Amendment.--Section 118 of the Treasury and General   
  Government Appropriations Act, 2001 (as enacted into law by section 1(3)
  of Public Law 106 554; 114 Stat. 2763A 134) is amended by striking      
  ``limitation on the rate of pay payable during a pay period contained in
  section 5547(c)(2)'' and inserting ``restrictions contained in section  
  5547''.                                                                 
     (c) Effective Date.--The amendments made by subsections (a) and (b)  
  shall take effect on the first day of the first pay period beginning on 
  or after the date that is 120 days following the date of enactment of   
  this Act.                                                               
                    SEC. 1115. PARTICIPATION OF PERSONNEL IN TECHNICAL STANDARDS  
          DEVELOPMENT ACTIVITIES.                                                 
     Subsection (d) of section 12 of the National Technology Transfer and 
  Advancement Act of 1995 (Pub. Law 104 113; 15 U.S.C. 272 note) is       
  amended--                                                               
     (1) by redesignating paragraph (4) as paragraph (5); and              

     (2) by inserting after paragraph (3) the following new paragraph (4): 

       ``(4) Expenses of government personnel.--Section 5946 of title 5,   
   United States Code, shall not apply with respect to any activity of an  
   employee of a Federal agency or department that is determined by the    
   head of that agency or department as being an activity undertaken in    
   carrying out this subsection.''.                                        
          SEC. 1116. RETENTION OF TRAVEL PROMOTIONAL ITEMS.                       

     (a) Definition.--In this section, the term ``agency'' has the meaning
  given that term under section 5701 of title 5, United States Code.      
     (b) Retention of Travel Promotional Items.--To the extent provided   
  under subsection (c), a Federal employee, member of the Foreign Service,
  member of a uniformed service, any family member or dependent of such an
  employee or member, or other individual who receives a promotional item 
  (including frequent flyer miles, upgrade, or access to carrier clubs or 
  facilities) as a result of using travel or transportation services      
  obtained at Federal Government expense or accepted under section 1353 of
  title 31, United States Code, may retain the promotional item for       
  personal use if the promotional item is obtained under the same terms as
  those offered to the general public and at no additional cost to the    
  Federal Government.                                                     
    (c)  Limitation.--Subsection (b)--                                    

     (1) applies only to travel that--                                     

     (A) is at the expense of an agency; or                                

       (B) is accepted by an agency under section 1353 of title 31, United 
   States Code; and                                                        
       (2) does not apply to travel by any officer, employee, or other     
   official of the Government who is not in or under any agency.           
     (d) Regulatory Authority.--Any agency with authority to prescribe    
  regulations governing the acquisition, acceptance, use, or disposal of  
  any travel or transportation services obtained at Government expense or 
  accepted under section 1353 of title 31, United States Code, may        
  prescribe regulations to carry out subsection (b) with respect to those 
  travel or transportation services.                                      
     (e) Repeal of Superseded Law.--Section 6008 of the Federal           
  Acquisition Streamlining Act of 1994 (5 U.S.C. 5702 note; Public Law 103
  355) is repealed.                                                       
     (f) Applicability.--This section shall apply with respect to         
  promotional items received before, on, or after the date of enactment of
  this Act.                                                               
                    SEC. 1117. APPLICABILITY OF CERTAIN LAWS TO CERTAIN           
          INDIVIDUALS ASSIGNED TO WORK IN THE FEDERAL GOVERNMENT.                 
     Section 3374(c)(2) of title 5, United States Code, is amended by     
  inserting ``the Ethics in Government Act of 1978, section 27 of the     
  Office of Federal Procurement Policy Act,'' after ``chapter 73 of this  
  title,''.                                                               
           Subtitle C--Intelligence Civilian Personnel                             

                    SEC. 1121. AUTHORITY TO INCREASE MAXIMUM NUMBER OF POSITIONS  
          IN THE DEFENSE INTELLIGENCE SENIOR EXECUTIVE SERVICE.                   
     Section 1606(a) of title 10, United States Code, is amended by       
  striking ``517'' and inserting ``544''.                                 
           Subtitle D--Matters Relating To Retirement                              

                    SEC. 1131. IMPROVED PORTABILITY OF RETIREMENT COVERAGE FOR    
          EMPLOYEES MOVING BETWEEN CIVIL SERVICE EMPLOYMENT AND EMPLOYMENT BY     
          NONAPPROPRIATED FUND INSTRUMENTALITIES.                                 
     (a) Civil Service Retirement System.--Section 8347(q) of title 5,    
  United States Code, is amended--                                        
     (1) in paragraph (1)--                                                

     (A) by inserting ``and'' at the end of subparagraph (A);              

     (B) by striking subparagraph (B); and                                 

     (C) by redesignating subparagraph (C) as subparagraph (B); and        

     (2) in paragraph (2)(B)--                                             

     (A) by striking ``vested''; and                                       

       (B) by striking ``, as the term'' and all that follows through      
   ``such system''.                                                        
     (b) Federal Employees' Retirement System.--Section 8461(n) of such   
  title is amended--                                                      
     (1) in paragraph (1)--                                                

     (A) by inserting ``and'' at the end of subparagraph (A);              

     (B) by striking subparagraph (B); and                                 

     (C) by redesignating subparagraph (C) as subparagraph (B); and        

     (2) in paragraph (2)(B)--                                             

     (A) by striking ``vested''; and                                       

       (B) by striking ``, as the term'' and all that follows through      
   ``such system''.                                                        
                    SEC. 1132. FEDERAL EMPLOYMENT RETIREMENT CREDIT FOR           
          NONAPPROPRIATED FUND INSTRUMENTALITY SERVICE.                           
     (a) Civil Service Retirement System.--(1) Section 8332(b) of title 5,
  United States Code, is amended--                                        
     (A) by striking ``and'' at the end of paragraph (15);                 

       (B) by striking the period at the end of paragraph (16) and         
   inserting ``; and'';                                                    
     (C) by inserting after paragraph (16) the following new paragraph:    

       ``(17) service performed by any individual as an employee paid from 
   nonappropriated funds of an instrumentality of the Department of Defense
   or the Coast Guard described in section 2105(c) that is not covered by  
   paragraph (16) and that is not otherwise creditable, if the individual  
   elects (in accordance with regulations prescribed by the Office) to have
   such service credited under this paragraph.'';                          
       (D) in the last sentence, by inserting ``or (17)'' after ``service  
   of the type described in paragraph (16)''; and                          
       (E) by inserting after the last sentence the following: ``Service   
   credited under paragraph (17) may not also be credited under any other  
   retirement system provided for employees paid from nonappropriated funds
   of a nonappropriated fund instrumentality.''.                           
     (2) Section 8334 of such title is amended by adding at the end the   
  following new subsection:                                               
     ``(n) Notwithstanding subsection (c), no deposit may be made with    
  respect to service credited under section 8332(b)(17).''.               
     (3) Section 8339 of such title is amended by adding at the end the   
  following new subsection:                                               
     ``(u) The annuity of an employee retiring under this subchapter with 
  service credited under section 8332(b)(17) shall be reduced by the      
  amount necessary to ensure that the present value of the annuity payable
  to the employee is actuarially equivalent to the present value of the   
  annuity that would be payable to the employee under this subchapter if  
  it were computed--                                                      
       ``(1) on the basis of service that does not include service credited
   under section 8332(b)(17); and                                          
       ``(2) assuming the employee separated from service on the actual    
   date of the separation of the employee.                                 
    ``The amount of the reduction shall be computed under regulations     
  prescribed by the Office of Personnel Management for the administration 
  of this subsection.''.                                                  
     (b) Federal Employees' Retirement System.--(1) Section 8411 of such  
  title is amended--                                                      
     (A) in subsection (b)--                                               

     (i) by striking ``and'' at the end of paragraph (4);                  

       (ii) by striking the period at the end of paragraph (5) and         
   inserting ``; and''; and                                                
     (iii) by inserting after paragraph (5) the following new paragraph:   

       ``(6) service performed by any individual as an employee paid from  
   nonappropriated funds of an instrumentality of the Department of Defense
   or the Coast Guard described in section 2105(c) that is not otherwise   
   creditable, if the individual elects (in accordance with regulations    
   prescribed by the Office) to have such service credited under this      
   paragraph.''; and                                                       
     (B) by adding at the end the following new subsection:                

     ``(k)(1) The Office of Personnel Management shall accept, for the    
  purposes of this chapter, the certification of the head of a            
  nonappropriated fund instrumentality of the United States concerning    
  service of the type described in subsection (b)(6) that was performed   
  for such nonappropriated fund instrumentality.                          
     ``(2) Service credited under subsection (b)(6) may not also be       
  credited under any other retirement system provided for employees paid  
  from nonappropriated funds of a nonappropriated fund instrumentality.''.

     (2)(A) Section 8422 of such title is amended by adding at the end the
  following new subsection:                                               
     ``(h) No deposit may be made with respect to service credited under  
  section 8411(b)(6).''.                                                  
    (B) The heading for such section is amended to read as follows:       

          ``8422. Deductions from pay; contributions for other service'' .        

     (C) The item relating to such section in the table of contents at the
  beginning of chapter 84 of title 5, United States Code, is amended to   
  read as follows:                                                        


      ``8422. Deductions from pay; contributions for other service.''.        



     (3) Section 8415 of such title is amended by adding at the end the   
  following new subsection:                                               
     ``(j) The annuity of an employee retiring under this chapter with    
  service credited under section 8411(b)(6) shall be reduced by the amount
  necessary to ensure that the present value of the annuity payable to the
  employee under this subchapter is actuarially equivalent to the present 
  value of the annuity that would be payable to the employee under this   
  subchapter if it were computed--                                        
       ``(1) on the basis of service that does not include service credited
   under section 8411(b)(6); and                                           
       ``(2) assuming the employee separated from service on the actual    
   date of the separation of the employee.                                 
    ``The amount of the reduction shall be computed under regulations     
  prescribed by the Office of Personnel Management for the administration 
  of this subsection.''.                                                  
     (c) Applicability.--The amendments made by this section shall apply  
  only to separations from service as an employee of the United States on 
  or after the date of the enactment of this Act.                         
                    SEC. 1133. MODIFICATION OF LIMITATIONS ON EXERCISE OF         
          VOLUNTARY SEPARATION INCENTIVE PAY AUTHORITY AND VOLUNTARY EARLY        
          RETIREMENT AUTHORITY.                                                   
     (a) In General.--Section 1153(b) of the Floyd D. Spence National     
  Defense Authorization Act for Fiscal Year 2001 (as enacted into law by  
  Public Law 106 398; 114 Stat. 1654A 323) is amended--                   
     (1) in paragraph (1)--                                                

       (A) by striking ``(1) Subject to paragraph (2), the'' and inserting 
   ``The'';                                                                
       (B) by striking ``in each of fiscal years 2002 and 2003, not more   
   than 4000 employees of the Department of Defense are'' and inserting    
   ``in fiscal year 2002 not more than 2000 employees of the Department of 
   Defense are, and in fiscal year 2003 not more than 6000 employees of the
   Department of Defense are''; and                                        
       (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and
   (2), respectively; and                                                  
     (2) by striking paragraph (2).                                        

     (b) Construction.--The amendments made by subsection (a) may be      
  superceded by another provision of law that takes effect after the date 
  of the enactment of this Act, and before October 1, 2003, establishing a
  uniform system of providing voluntary separation incentives (including a
  system for requiring approval of plans by the Office of Management and  
  Budget) for employees of the Federal Government.                        

           TITLE XII--MATTERS RELATING TO OTHER NATIONS                            


                 SUBTITLE A--MATTERS RELATED TO ARMS CONTROL AND MONITORING       

            Sec. 1201. Clarification of authority to furnish nuclear test     
      monitoring equipment to foreign governments.                            
            Sec. 1202. Limitation on funding for joint Data Exchange Center in
      Moscow.                                                                 
            Sec. 1203. Support of United Nations-sponsored efforts to inspect 
      and monitor Iraqi weapons activities.                                   
            Sec. 1204. Authority for employees of Federal Government          
      contractors to accompany chemical weapons inspection teams at           
      Government-owned facilities.                                            
            Sec. 1205. Plan for securing nuclear weapons, material, and       
      expertise of the states of the former Soviet Union.                     
             SUBTITLE B--MATTERS RELATING TO ALLIES AND FRIENDLY FOREIGN NATIONS  

      Sec. 1211. Acquisition of logistical support for security forces.       

            Sec. 1212. Extension of authority for international cooperative   
      research and development projects.                                      
            Sec. 1213. Cooperative agreements with foreign countries and      
      international organizations for reciprocal use of test facilities.      
      Sec. 1214. Sense of Congress on allied defense burdensharing.           

                                     SUBTITLE C--REPORTS                          

            Sec. 1221. Report on significant sales and transfers of military  
      hardware, expertise, and technology to the People's Republic of China.  
            Sec. 1222. Repeal of requirement for reporting to Congress on     
      military deployments to Haiti.                                          
            Sec. 1223. Report by Comptroller General on provision of defense  
      articles, services, and military education and training to foreign      
      countries and international organizations.                              

                 SUBTITLE A--MATTERS RELATED TO ARMS CONTROL AND MONITORING       


                    SEC. 1201. CLARIFICATION OF AUTHORITY TO FURNISH NUCLEAR TEST 
          MONITORING EQUIPMENT TO FOREIGN GOVERNMENTS.                            
     (a) Redesignation of Existing Section.--(1) The second section 2555  
  of title 10, United States Code, added by section 1203(a) of the Floyd  
  D. Spence National Defense Authorization Act for Fiscal Year 2001 (as   
  enacted into law by Public Law 106 398; 114 Stat. 1654A 324), is        
  redesignated as section 2565.                                           
     (2) The item relating to that section in the table of sections at the
  beginning of chapter 152 of that title is amended to read as follows:   


            ``2565. Nuclear test monitoring equipment: furnishing to foreign  
      governments.''.                                                         

     (b) Clarification of Authority.--Section 2565 of that title, as so   
  redesignated by subsection (a), is amended--                            
     (1) in subsection (a)--                                               

       (A) by striking `` Convey or'' in the subsection heading and        
   inserting `` Transfer Title to or Otherwise'';                          
     (B) in paragraph (1)--                                                

     (i) by striking ``convey'' and inserting ``transfer title''; and      

     (ii) by striking ``and'' at the end;                                  

       (C) by striking the period at the end of paragraph (2) and inserting
   ``; and''; and                                                          
     (D) by adding at the end the following new paragraph:                 

       ``(3) inspect, test, maintain, repair, or replace any such          
   equipment.''; and                                                       
     (2) in subsection (b)--                                               

       (A) by striking ``conveyed or otherwise provided'' and inserting    
   ``provided to a foreign government'';                                   
     (B) by inserting ``and'' at the end of paragraph (1);                 

       (C) by striking ``; and'' at the end of paragraph (2) and inserting 
   a period; and                                                           
     (D) by striking paragraph (3).                                        


                    SEC. 1202. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE      
          CENTER IN MOSCOW.                                                       
     (a) Limitation.--Not more than 50 percent of the funds made available
  to the Department of Defense for fiscal year 2002 for activities        
  associated with the Joint Data Exchange Center in Moscow, Russia, may be
  obligated for any such activity until--                                 
       (1) the United States and the Russian Federation enter into a       
   cost-sharing agreement as described in subsection (d) of section 1231 of
   the Floyd D. Spence National Defense Authorization Act for Fiscal Year  
   2001, as enacted into law by Public Law 106 398 (114 Stat. 1654A 329);  
       (2) the United States and the Russian Federation enter into an      
   agreement or agreements exempting the United States and any United      
   States person from Russian taxes, and from liability under Russian laws,
   with respect to activities associated with the Joint Data Exchange      
   Center;                                                                 
       (3) the Secretary of Defense submits to the Committee on Armed      
   Services of the Senate and the Committee on Armed Services of the House 
   of Representatives a copy of each agreement referred to in paragraphs   
   (1) and (2); and                                                        
       (4) a period of 30 days has expired after the date of the final     
   submission under paragraph (3).                                         
     (b) Joint Data Exchange Center.--For purposes of this section, the   
  term ``Joint Data Exchange Center'' means the United States-Russian     
  Federation joint center for the exchange of data to provide early       
  warning of launches of ballistic missiles and for notification of such  
  launches that is provided for in a joint United States-Russian          
  Federation memorandum of agreement signed in Moscow in June 2000.       

                    SEC. 1203. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO     
          INSPECT AND MONITOR IRAQI WEAPONS ACTIVITIES.                           
     (a) Limitation on Amount of Assistance in Fiscal Year 2002--The total
  amount of the assistance for fiscal year 2002 that is provided by the   
  Secretary of Defense under section 1505 of the Weapons of Mass          
  Destruction Control Act of 1992 (22 U.S.C. 5859a) as activities of the  
  Department of Defense in support of activities under that Act may not   
  exceed $15,000,000.                                                     
     (b) Extension of Authority To Provide Assistance.--Subsection (f) of 
  section 1505 of the Weapons of Mass Destruction Control Act of 1992 (22 
  U.S.C. 5859a) is amended by striking ``2001'' and inserting ``2002''.   

                    SEC. 1204. AUTHORITY FOR EMPLOYEES OF FEDERAL GOVERNMENT      
          CONTRACTORS TO ACCOMPANY CHEMICAL WEAPONS INSPECTION TEAMS AT           
          GOVERNMENT-OWNED FACILITIES.                                            
     (a) Authority.--Section 303(b)(2) of the Chemical Weapons Convention 
  Implementation Act of 1998 (22 U.S.C. 6723(b)(2)) is amended by         
  inserting after ``designation of employees of the Federal Government''  
  the following: ``(and, in the case of an inspection of a United States  
  Government facility, the designation of contractor personnel who shall  
  be led by an employee of the Federal Government)''.                     
     (b) Credentials.--Section 304(c) of such Act (22 U.S.C. 6724(c)) is  
  amended by striking ``Federal government'' and inserting ``Federal      
  Government (and, in the case of an inspection of a United States        
  Government facility, any accompanying contractor personnel)''.          

                    SEC. 1205. PLAN FOR SECURING NUCLEAR WEAPONS, MATERIAL, AND   
          EXPERTISE OF THE STATES OF THE FORMER SOVIET UNION.                     
     (a) Plan Required.--Not later than June 15, 2002, the President shall
  submit to Congress a plan, that has been developed in coordination with 
  all relevant Federal agencies--                                         
       (1) for cooperating with Russia on disposing, as soon as            
   practicable, of nuclear weapons and weapons-usable nuclear material in  
   Russia that Russia does not retain in its nuclear arsenals;             
       (2) for assisting Russia in downsizing its nuclear weapons research 
   and production complex;                                                 
       (3) for cooperating with the other states of the former Soviet Union
   on disposing, as soon as practicable, of all nuclear weapons and        
   weapons-usable nuclear material in such states; and                     
       (4) for preventing the outflow from the states of the former Soviet 
   Union of scientific expertise that could be used for developing nuclear 
   weapons, other weapons of mass destruction, and delivery systems for    
   such weapons.                                                           
     (b) Content of Plan.--The plan required by subsection (a) shall      
  include the following:                                                  
       (1) Specific goals and measurable objectives for programs that are  
   designed to carry out the objectives described in subsection (a).       
       (2) Criteria for success for such programs, and a strategy for      
   eventual termination of United States contributions to such programs and
   assumption of the ongoing support of those programs by others.          
       (3) A description of any administrative and organizational changes  
   necessary to improve the coordination and effectiveness of such         
   programs. In particular, the plan shall include consideration of the    
   creation of an interagency committee that would have primary            
   responsibilities within the executive branch for--                      
       (A) monitoring United States nonproliferation efforts in the states 
   of the former Soviet Union;                                             
       (B) coordinating the implementation of United States policy with    
   respect to such efforts; and                                            
       (C) recommending to the President integrated policies, budget       
   options, and private sector and international contributions for such    
   programs.                                                               
     (4) An estimate of the cost of carrying out such programs.            

     (c) Consultation.--In developing the plan required by subsection (a),
  the President--                                                         
       (1) is encouraged to consult with the relevant states of the former 
   Soviet Union regarding the practicality of various options; and         
       (2) shall consult with the majority and minority leadership of the  
   appropriate committees of Congress.                                     
             SUBTITLE B--MATTERS RELATING TO ALLIES AND FRIENDLY FOREIGN NATIONS  


          SEC. 1211. ACQUISITION OF LOGISTICAL SUPPORT FOR SECURITY FORCES.       

     Section 5 of the Multinational Force and Observers Participation     
  Resolution (22 U.S.C. 3424) is amended by adding at the end the         
  following new subsection:                                               
     ``(d)(1) The United States may use contractors to provide logistical 
  support to the Multinational Force and Observers under this section in  
  lieu of providing such support through a logistical support unit        
  comprised of members of the United States Armed Forces.                 
     ``(2) Notwithstanding subsections (a) and (b) and section 7(b),      
  support by a contractor under this subsection may be provided without   
  reimbursement whenever the President determines that such action        
  enhances or supports the national security interests of the United      
  States.''.                                                              
                    SEC. 1212. EXTENSION OF AUTHORITY FOR INTERNATIONAL           
          COOPERATIVE RESEARCH AND DEVELOPMENT PROJECTS.                          
     (a) Eligibility of Friendly Foreign Countries.--Section 2350a of     
  title 10, United States Code, is amended--                              
     (1) in subsection (a)--                                               

       (A) by inserting ``(1)'' after ``(a) Authority To Engage in         
   Cooperative R & D Projects.--';                                         
       (B) by striking ``major allies of the United States or NATO         
   organizations'' and inserting ``countries or organizations referred to  
   in paragraph (2)''; and                                                 
     (C) by adding at the end the following new paragraph:                 

     ``(2) The countries and organizations with which the Secretary may   
  enter into a memorandum of agreement (or other formal agreement) under  
  paragraph (1) are as follows:                                           
     ``(A) The North Atlantic Treaty Organization.                         

     ``(B) A NATO organization.                                            

     ``(C) A member nation of the North Atlantic Treaty Organization.      

     ``(D) A major non-NATO ally.                                          

     ``(E) Any other friendly foreign country.'';                          

     (2) in subsection (b)(1)--                                            

       (A) by striking ``its major non-NATO allies'' and inserting ``a     
   country or organization referred to in subsection (a)(2)''; and         
     (B) by striking ``(NATO)'';                                           

     (3) in subsection (d)--                                               

       (A) in paragraph (1), by striking ``the major allies of the United  
   States'' and inserting ``countries and organizations referred to in     
   subsection (a)(2)''; and                                                
     (B) in paragraph (2)--                                                

       (i) by striking ``major ally of the United States'' and inserting   
   ``country or organization referred to in subsection (a)(2)''; and       
       (ii) by striking ``that ally's contribution'' and inserting ``the   
   contribution of that country or organization'';                         
     (4) in subsection (e)(2)--                                            

       (A) in subparagraph (A), by striking ``one or more of the major     
   allies of the United States'' and inserting ``any country or            
   organization referred to in subsection (a)(2)'';                        
       (B) in subparagraph (B), by striking ``major allies of the United   
   States or NATO organizations'' and inserting ``countries and            
   organizations referred to in subsection (a)(2)'';                       
       (C) in subparagraph (C), by striking ``major allies of the United   
   States'' and inserting ``countries and organizations referred to in     
   subsection (a)(2)''; and                                                
       (D) in subparagraph (D), by striking ``major allies of the United   
   States'' and inserting ``countries and organizations referred to in     
   subsection (a)(2)'';                                                    
       (5) paragraphs (1)(A) and (4)(A) of subsection (g), by striking     
   ``major allies of the United States and other friendly foreign          
   countries'' and inserting ``countries referred to in subsection         
   (a)(2)'';                                                               
       (6) in subsection (h), by striking ``major allies of the United     
   States'' and inserting ``member nations of the North Atlantic Treaty    
   Organization, major non-NATO allies, and other friendly foreign         
   countries''; and                                                        
     (7) in subsection (i)--                                               

       (A) in paragraph (1), by striking ``major allies of the United      
   States or NATO organizations'' and inserting ``countries and            
   organizations referred to in subsection (a)(2)'';                       
     (B) by striking paragraph (2); and                                    

       (C) by redesignating paragraphs (3) and (4) as paragraphs (2) and   
   (3), respectively.                                                      
     (b) Notice-and-Wait Requirement.--Subsection (a) of such section is  
  further amended by adding at the end the following new paragraph:       
     ``(3) If such a memorandum of understanding (or other formal         
  agreement) is with a country referred to in subparagraph (E) of         
  paragraph (2), such memorandum (or agreement) may go into effect only   
  after the Secretary submits to the Committees on Armed Services and on  
  Foreign Relations of the Senate and to the Committees on Armed Services 
  and on International Relations of the House of Representatives a report 
  with respect to the proposed memorandum (or agreement) and a period of  
  30 days has passed after the report has been submitted.''.              
     (c) Delegation of Authority To Determine Eligibility of              
  Projects.--Subsection (b)(2) of such section is amended by striking ``to
  the Deputy Secretary of Defense'' and all that follows through the      
  period at the end and inserting ``to the Deputy Secretary of Defense and
  to one other official of the Department of Defense.''.                  
     (d) Revision of Requirement for Annual Report on Eligible            
  Countries.--Subsection (f)(2) of such section is amended to read as     
  follows:                                                                
     ``(2) Not later than January 1 of each year, the Secretary of Defense
  shall submit to the Committees on Armed Services and on Foreign         
  Relations of the Senate and to the Committees on Armed Services and on  
  International Relations of the House of Representatives a report        
  specifying--                                                            
       ``(A) the countries that are eligible to participate in a           
   cooperative project agreement under this section; and                   
       ``(B) the criteria used to determine the eligibility of such        
   countries.''.                                                           
     (e) Conforming Amendments.--(1) The heading of such section is       
  amended to read as follows:                                             
                    ``2350a. Cooperative research and development agreements: NATO
          organizations; allied and friendly foreign countries'' .                
     (2) The item relating to such section in the table of sections at the
  beginning of subchapter II of chapter 138 of title 10, United States    
  Code, is amended to read as follows:                                    


            ``2350a. Cooperative research and development agreements: NATO    
      organizations; allied and friendly foreign countries.''.                

                    SEC. 1213. COOPERATIVE AGREEMENTS WITH FOREIGN COUNTRIES AND  
          INTERNATIONAL ORGANIZATIONS FOR RECIPROCAL USE OF TEST FACILITIES.      
     (a) Authority.--Subchapter II of chapter 138 of title 10, United     
  States Code, is amended by adding at the end the following new section: 
                    ``2350l. Cooperative agreements for reciprocal use of test    
          facilities: foreign countries and international organizations           
     ``(a) Authority.--The Secretary of Defense, with the concurrence of  
  the Secretary of State, may enter into a memorandum of understanding (or
  other formal agreement) with a foreign country or international         
  organization to provide for the testing, on a reciprocal basis, of      
  defense equipment (1) by the United States using test facilities of that
  country or organization, and (2) by that country or organization using  
  test facilities of the United States.                                   
     ``(b) Payment of Costs.--A memorandum or other agreement under       
  subsection (a) shall provide that, when a party to the agreement uses a 
  test facility of another party to the agreement, the party using the    
  test facility is charged by the party providing the test facility in    
  accordance with the following principles:                               
       ``(1) The user party shall be charged the amount equal to the direct
   costs incurred by the provider party in furnishing test and evaluation  
   services by the providing party's officers, employees, or governmental  
   agencies.                                                               
       ``(2) The user party may also be charged indirect costs relating to 
   the use of the test facility, but only to the extent specified in the   
   memorandum or other agreement.                                          
     ``(c) Determination of Indirect Costs; Delegation of Authority.--(1) 
  The Secretary of Defense shall determine the appropriateness of the     
  amount of indirect costs charged by the United States pursuant to       
  subsection (b)(2).                                                      
     (2) The Secretary may delegate the authority under paragraph (1) only
  to the Deputy Secretary of Defense and to one other official of the     
  Department of Defense.                                                  
     ``(d) Retention of Funds Collected by the United States.--Amounts    
  collected by the United States from a party using a test facility of the
  United States pursuant to a memorandum or other agreement under this    
  section shall be credited to the appropriation accounts from which the  
  costs incurred by the United States in providing such test facility were
  paid.                                                                   
    ``(e)  Definitions.--In this section:                                 

       ``(1) The term `direct cost', with respect to the use of a test     
   facility pursuant to a memorandum or other agreement under subsection   
   (a)--                                                                   
       ``(A) means any item of cost that is easily and readily identified  
   to a specific unit of work or output within the test facility where the 
   use occurred, that would not have been incurred if such use had not     
   occurred; and                                                           
       ``(B) may include costs of labor, materials, facilities, utilities, 
   equipment, supplies, and any other resources of the test facility that  
   are consumed or damaged in connection with--                            
     ``(i) the use; or                                                     

     ``(ii) the maintenance of the test facility for purposes of the use.  

       ``(2) The term `indirect cost', with respect to the use of a test   
   facility pursuant to a memorandum or other agreement under subsection   
   (a)--                                                                   
       ``(A) means any item of cost that is not easily and readily         
   identified to a specific unit of work or output within the test facility
   where the use occurred; and                                             
       ``(B) may include general and administrative expenses for such      
   activities as supporting base operations, manufacturing, supervision,   
   procurement of office supplies, and utilities that are accumulated costs
   allocated among several users.                                          
       ``(3) The term `test facility' means a range or other facility at   
   which testing of defense equipment may be carried out.''.               
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such subchapter is amended by adding at the end the following new item: 


            ``2350l. Cooperative agreements for reciprocal use of test        
      facilities: foreign countries and international organizations.''.       

          SEC. 1214. SENSE OF CONGRESS ON ALLIED DEFENSE BURDENSHARING.           

    It is the sense of Congress that--                                    

       (1) the efforts of the President to increase defense burdendsharing 
   by allied and friendly nations deserve strong support; and              
       (2) host nation support agreements with those nations in which      
   United States military personnel are assigned to permanent duty ashore  
   should be negotiated consistent with section 1221(a)(1) of the National 
   Defense Authorization Act for Fiscal Year 1998 (Public Law 105 85; 50   
   U.S.C. 1541(a)(1)), which sets forth a goal of obtaining from any such  
   host nation financial contributions that amount to 75 percent of the    
   nonpersonnel costs incurred by the United States Government for         
   stationing United States military personnel in that nation.             
                                     SUBTITLE C--REPORTS                          


                    SEC. 1221. REPORT ON SIGNIFICANT SALES AND TRANSFERS OF       
          MILITARY HARDWARE, EXPERTISE, AND TECHNOLOGY TO THE PEOPLE'S REPUBLIC OF
          CHINA.                                                                  
     Section 1202 of the National Defense Authorization Act for Fiscal    
  Year 2000 (Public Law 106 65; 113 Stat. 781; 10 U.S.C. 113 note) is     
  amended by adding at the end the following new subsection:              
     ``(d) Report on Significant Sales and Transfers to China.--(1) The   
  report to be submitted under this section not later than March 1, 2002, 
  shall include in a separate section a report describing any significant 
  sale or transfer of military hardware, expertise, and technology to the 
  People's Republic of China. The report shall set forth the history of   
  such sales and transfers since 1995, forecast possible future sales and 
  transfers, and address the implications of those sales and transfers for
  the security of the United States and its friends and allies in Asia.   
     ``(2) The report shall include analysis and forecasts of the         
  following matters related to military cooperation between selling states
  and the People's Republic of China:                                     
       ``(A) The extent in each selling state of government knowledge,     
   cooperation, or condoning of sales or transfers of military hardware,   
   expertise, or technology to the People's Republic of China.             
       ``(B) An itemization of significant sales and transfers of military 
   hardware, expertise, or technology from each selling state to the       
   People's Republic of China that have taken place since 1995, with a     
   particular focus on command, control, communications, and intelligence  
   systems.                                                                
       ``(C) Significant assistance by any selling state to key research   
   and development programs of China, including programs for development of
   weapons of mass destruction and delivery vehicles for such weapons,     
   programs for development of advanced conventional weapons, and programs 
   for development of unconventional weapons.                              
       ``(D) The extent to which arms sales by any selling state to the    
   People's Republic of China are a source of funds for military research  
   and development or procurement programs in the selling state.           
     ``(3) The report under paragraph (1) shall include, with respect to  
  each area of analysis and forecasts specified in paragraph (2)--        
       ``(A) an assessment of the military effects of such sales or        
   transfers to entities in the People's Republic of China;                
       ``(B) an assessment of the ability of the People's Liberation Army  
   to assimilate such sales or transfers, mass produce new equipment, or   
   develop doctrine for use; and                                           
       ``(C) the potential threat of developments related to such effects  
   on the security interests of the United States and its friends and      
   allies in Asia.''.                                                      

                    SEC. 1222. REPEAL OF REQUIREMENT FOR REPORTING TO CONGRESS ON 
          MILITARY DEPLOYMENTS TO HAITI.                                          
     Section 1232(b) of the National Defense Authorization Act for Fiscal 
  Year 2000 (Public Law 106 65; 113 Stat. 788; 50 U.S.C. 1541 note) is    
  repealed.                                                               

                    SEC. 1223. REPORT BY COMPTROLLER GENERAL ON PROVISION OF      
          DEFENSE ARTICLES, SERVICES, AND MILITARY EDUCATION AND TRAINING TO      
          FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS.                      
     (a) Study.--The Comptroller General shall conduct a study of the     
  following:                                                              
       (1) The benefits derived by each foreign country or international   
   organization from the receipt of defense articles, defense services, or 
   military education and training provided after December 31, 1989,       
   pursuant to the drawdown of such articles, services, or education and   
   training from the stocks of the Department of Defense under section 506,
   516, or 552 of the Foreign Assistance Act of 1961 (22 U.S.C. 2318,      
   2321j, or 2348a) or any other provision of law.                         
       (2) Any benefits derived by the United States from the provision of 
   defense articles, defense services, and military education and training 
   described in paragraph (1).                                             
       (3) The effect on the readiness of the Armed Forces as a result of  
   the provision by the United States of defense articles, defense         
   services, and military education and training described in paragraph    
   (1).                                                                    
       (4) The cost to the Department of Defense with respect to the       
   provision of defense articles, defense services, and military education 
   and training described in paragraph (1).                                
     (b) Reports.--(1) Not later than April 15, 2002, the Comptroller     
  General shall submit to Congress an interim report containing the       
  results to that date of the study conducted under subsection (a).       
     (2) Not later than August 1, 2002, the Comptroller General shall     
  submit to Congress a final report containing the results of the study   
  conducted under subsection (a).                                         

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

            Sec. 1301. Specification of Cooperative Threat Reduction programs 
      and funds.                                                              
      Sec. 1302. Funding allocations.                                         

      Sec. 1303. Limitation on use of funds until submission of reports.      

            Sec. 1304. Requirement to consider use of revenue generated by    
      activities carried out under Cooperative Threat Reduction programs.     
            Sec. 1305. Prohibition against use of funds for second wing of    
      fissile material storage facility.                                      
            Sec. 1306. Prohibition against use of funds for certain           
      construction activities.                                                
            Sec. 1307. Reports on activities and assistance under Cooperative 
      Threat Reduction programs.                                              
      Sec. 1308. Chemical weapons destruction.                                

            Sec. 1309. Additional matter in annual report on activities and   
      assistance under Cooperative Threat Reduction programs.                 

                    SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION      
          PROGRAMS AND FUNDS.                                                     
     (a) Specification of CTR Programs.--For purposes of section 301 and  
  other provisions of this Act, Cooperative Threat Reduction programs are 
  the programs specified in section 1501(b) of the National Defense       
  Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat.   
  2731; 50 U.S.C. 2362 note).                                             
     (b) Fiscal Year 2002 Cooperative Threat Reduction Funds Defined.--As 
  used in this title, the term ``fiscal year 2002 Cooperative Threat      
  Reduction funds'' means the funds appropriated pursuant to the          
  authorization of appropriations in section 301 for Cooperative Threat   
  Reduction programs.                                                     
     (c) Availability of Funds.--Funds appropriated pursuant to the       
  authorization of appropriations in section 301 for Cooperative Threat   
  Reduction programs shall be available for obligation for three fiscal   
  years.                                                                  
          SEC. 1302. FUNDING ALLOCATIONS.                                         

     (a) Funding for Specific Purposes.--Of the $403,000,000 authorized to
  be appropriated to the Department of Defense for fiscal year 2002 in    
  section 301(23) for Cooperative Threat Reduction programs, not more than
  the following amounts may be obligated for the purposes specified:      
     (1) For strategic offensive arms elimination in Russia, $133,405,000. 

     (2) For strategic nuclear arms elimination in Ukraine, $51,500,000.   

     (3) For nuclear weapons transportation security in Russia, $9,500,000.

     (4) For nuclear weapons storage security in Russia, $56,000,000.      

       (5) For biological weapons proliferation prevention activities in   
   the former Soviet Union, $17,000,000.                                   
       (6) For activities designated as Other Assessments/Administrative   
   Support, $13,221,000.                                                   
     (7) For defense and military contacts, $18,650,000.                   

     (8) For chemical weapons destruction in Russia, $50,000,000.          

       (9) For weapons of mass destruction infrastructure elimination      
   activities in Kazakhstan, $6,000,000.                                   
       (10) For weapons of mass destruction infrastructure elimination     
   activities in Ukraine, $6,024,000.                                      
       (11) For activities to assist Russia in the elimination of plutonium
   production reactors, $41,700,000.                                       
     (b) Report on Obligation or Expenditure of Funds for Other           
  Purposes.--No fiscal year 2002 Cooperative Threat Reduction funds may be
  obligated or expended for a purpose other than a purpose listed in      
  paragraphs (1) through (11) of subsection (a) until 30 days after the   
  date that the Secretary of Defense submits to Congress a report on the  
  purpose for which the funds will be obligated or expended and the amount
  of funds to be obligated or expended. Nothing in the preceding sentence 
  shall be construed as authorizing the obligation or expenditure of      
  fiscal year 2002 Cooperative Threat Reduction funds for a purpose for   
  which the obligation or expenditure of such funds is specifically       
  prohibited under this title or any other provision of law.              

     (c) Limited Authority To Vary Individual Amounts.--(1) Subject to    
  paragraphs (2) and (3), in any case in which the Secretary of Defense   
  determines that it is necessary to do so in the national interest, the  
  Secretary may obligate amounts appropriated for fiscal year 2002 for a  
  purpose listed in any of the paragraphs in subsection (a) in excess of  
  the amount specifically authorized for such purpose.                    
     (2) An obligation of funds for a purpose stated in any of the        
  paragraphs in subsection (a) in excess of the specific amount authorized
  for such purpose may be made using the authority provided in paragraph  
  (1) only after--                                                        
       (A) the Secretary submits to Congress notification of the intent to 
   do so together with a complete discussion of the justification for doing
   so; and                                                                 
     (B) 15 days have elapsed following the date of the notification.      

     (3) The Secretary may not, under the authority provided in paragraph 
  (1), obligate amounts for the purposes stated in paragraph (6), (7), or 
  (11) of subsection (a) in excess of 115 percent of the amount           
  specifically authorized for such purposes.                              
     (d) Modification of Authority To Vary Individual Amounts of FY 2001  
  Funds.--Section 1302(c)(3) of the Floyd D. Spence National Defense      
  Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
  Law 106 398; 114 Stat. 1654A 340) is amended by striking ``(4),''.      
          SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL SUBMISSION OF REPORTS.      

     Not more than 50 percent of fiscal year 2002 Cooperative Threat      
  Reduction funds may be obligated or expended until 30 days after the    
  date of the submission of--                                             
       (1) the report required to be submitted in fiscal year 2001 under   
   section 1308(a) of the Floyd D. Spence National Defense Authorization   
   Act for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114
   Stat. 1654A 341); and                                                   
       (2) the multiyear plan required to be submitted for fiscal year 2001
   under section 1308(h) of such Act.                                      
                    SEC. 1304. REQUIREMENT TO CONSIDER USE OF REVENUE GENERATED BY
          ACTIVITIES CARRIED OUT UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.     
     The Secretary of Defense shall consider the use of revenue generated 
  by activities carried out under Cooperative Threat Reduction programs in
  negotiating and executing contracts with Russia to carry out such       
  programs.                                                               
                    SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF
          FISSILE MATERIAL STORAGE FACILITY.                                      
     (a) Prohibition.--No fiscal year 2002 Cooperative Threat Reduction   
  funds and no funds authorized to be appropriated for Cooperative Threat 
  Reduction programs for any prior fiscal year may be used for the        
  construction of a second wing for a storage facility for Russian fissile
  material.                                                               
     (b) Conforming Amendment.--Section 1304 of the Floyd D. Spence       
  National Defense Authorization Act for Fiscal Year 2001 (as enacted into
  law by Public Law 106 398; 114 Stat. 1654A 341) is amended to read as   
  follows:                                                                
                    ``SEC. 1304. LIMITATION ON USE OF FUNDS FOR FISSILE MATERIAL  
          STORAGE FACILITY.                                                       
     ``Out of funds authorized to be appropriated for Cooperative Threat  
  Reduction programs for fiscal year 2001 or any other fiscal year, not   
  more than $412,600,000 may be used for planning, design, or construction
  of the first wing for the storage facility for Russian fissile material 
  referred to in section 1302(a)(5) other than planning, design, or       
  construction to improve security at such first wing.''.                 
                    SEC. 1306. PROHIBITION AGAINST USE OF FUNDS FOR CERTAIN       
          CONSTRUCTION ACTIVITIES.                                                
     No fiscal year 2002 Cooperative Threat Reduction funds may be used   
  for construction activities carried out under Russia's program to       
  eliminate the production of weapons grade plutonium.                    
                    SEC. 1307. REPORTS ON ACTIVITIES AND ASSISTANCE UNDER         
          COOPERATIVE THREAT REDUCTION PROGRAMS.                                  
     Section 1308(c)(4) of the Floyd D. Spence National Defense           
  Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
  Law 106 398; 114 Stat. 1654A 342) is amended--                          
     (1) in the matter preceding subparagraph (A)--                        

       (A) by striking ``audits'' and all that follows through             
   ``conducted'' and inserting ``means (including program management,      
   audits, examinations, and other means) used''; and                      
       (B) by striking ``and that such assistance is being used for its    
   intended purpose'' and inserting ``, that such assistance is being used 
   for its intended purpose, and that such assistance is being used        
   efficiently and effectively'';                                          
       (2) in subparagraph (C), by inserting ``and an assessment of whether
   the assistance being provided is being used effectively and             
   efficiently'' before the semicolon; and                                 
       (3) in subparagraph (D), by striking ``audits, examinations, and    
   other''.                                                                
          SEC. 1308. CHEMICAL WEAPONS DESTRUCTION.                                

     Section 1305 of the National Defense Authorization Act for Fiscal    
  Year 2000 (Public Law 106 65; 113 Stat. 794; 22 U.S.C. 5952 note) is    
  amended by inserting before the period at the end the following: ``until
  the Secretary of Defense submits to Congress a certification that there 
  has been--                                                              
       ``(1) information provided by Russia, that the United States        
   assesses to be full and accurate, regarding the size of the chemical    
   weapons stockpile of Russia;                                            
       ``(2) a demonstrated annual commitment by Russia to allocate at     
   least $25,000,000 to chemical weapons elimination;                      
       ``(3) development by Russia of a practical plan for destroying its  
   stockpile of nerve agents;                                              
       ``(4) enactment of a law by Russia that provides for the elimination
   of all nerve agents at a single site;                                   
       ``(5) an agreement by Russia to destroy or convert its chemical     
   weapons production facilities at Volgograd and Novocheboksark; and      
       ``(6) a demonstrated commitment from the international community to 
   fund and build infrastructure needed to support and operate the         
   facility.''.                                                            
                    SEC. 1309. ADDITIONAL MATTER IN ANNUAL REPORT ON ACTIVITIES   
          AND ASSISTANCE UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.             
     Section 1308(c) of the Floyd D. Spence National Defense Authorization
  Act for Fiscal Year 2001 (as enacted into law by Public Law 106 398; 114
  Stat. 1654A 341) (as amended by section 1308) is further amended by     
  adding at the end of the following new paragraph:                       
       ``(6) A description of the amount of the financial commitment from  
   the international community, and from Russia, for the chemical weapons  
   destruction facility located at Shchuch'ye, Russia, for the fiscal year 
   beginning in the year in which the report is submitted.''.              

           TITLE XIV--ARMED FORCES RETIREMENT HOME                                 


      Sec. 1401. Amendment of Armed Forces Retirement Home Act of 1991.       

      Sec. 1402. Definitions.                                                 

            Sec. 1403. Revision of authority establishing the Armed Forces    
      Retirement Home.                                                        
      Sec. 1404. Chief Operating Officer.                                     

      Sec. 1405. Residents of Retirement Home.                                

      Sec. 1406. Local Boards of Trustees.                                    

            Sec. 1407. Directors, Deputy Directors, Associate Directors, and  
      staff of facilities.                                                    
            Sec. 1408. Disposition of effects of deceased persons and         
      unclaimed property.                                                     
      Sec. 1409. Transitional provisions.                                     

            Sec. 1410. Conforming and clerical amendments and repeals of      
      obsolete provisions.                                                    

          SEC. 1401. AMENDMENT OF ARMED FORCES RETIREMENT HOME ACT OF 1991.       

     Except as otherwise expressly provided, whenever in this title an    
  amendment or repeal is expressed in terms of an amendment to, or a      
  repeal of, a section or other provision, the reference shall be         
  considered to be made to a section or other provision of the Armed      
  Forces Retirement Home Act of 1991 (title XV of Public Law 101 510; 24  
  U.S.C. 401 et seq.).                                                    
          SEC. 1402. DEFINITIONS.                                                 

    Section 1502 (24 U.S.C. 401) is amended--                             

       (1) by striking paragraphs (1), (2), (3), (4), and (5), and         
   inserting the following new paragraphs:                                 
       ``(1) The term `Retirement Home' includes the institutions          
   established under section 1511, as follows:                             
     ``(A) The Armed Forces Retirement Home--Washington.                   

     ``(B) The Armed Forces Retirement Home--Gulfport.                     

       ``(2) The term `Local Board' means a Local Board of Trustees        
   established under section 1516.                                         
       ``(3) The terms `Armed Forces Retirement Home Trust Fund' and `Fund'
   mean the Armed Forces Retirement Home Trust Fund established under      
   section 1519(a).'';                                                     

       (2) by redesignating paragraphs (6), (7), and (8) as paragraphs (4),
   (5), and (6), respectively; and                                         
     (3) in paragraph (5), as so redesignated--                            

       (A) in subparagraph (C), by striking ``, Manpower and Personnel''   
   and inserting ``for Personnel''; and                                    
       (B) in subparagraph (D), by striking ``with responsibility for      
   personnel matters'' and inserting ``for Manpower and Reserve Affairs''. 
                    SEC. 1403. REVISION OF AUTHORITY ESTABLISHING THE ARMED FORCES
          RETIREMENT HOME.                                                        
    Section 1511 (24 U.S.C. 411) is amended to read as follows:           

          ``SEC. 1511. ESTABLISHMENT OF THE ARMED FORCES RETIREMENT HOME.         

     ``(a) Independent Establishment.--The Armed Forces Retirement Home is
  an independent establishment in the executive branch.                   
     ``(b) Purpose.--The purpose of the Retirement Home is to provide,    
  through the Armed Forces Retirement Home--Washington and the Armed      
  Forces Retirement Home--Gulfport, residences and related services for   
  certain retired and former members of the Armed Forces.                 
     ``(c) Facilities.--(1) Each facility of the Retirement Home referred 
  to in paragraph (2) is a separate establishment of the Retirement Home. 
     ``(2) The United States Soldiers' and Airmen's Home is hereby        
  redesignated as the Armed Forces Retirement Home--Washington. The Naval 
  Home is hereby redesignated as the Armed Forces Retirement              
  Home--Gulfport.                                                         
     ``(d) Operation.--(1) The Chief Operating Officer of the Armed Forces
  Retirement Home is the head of the Retirement Home. The Chief Operating 
  Officer is subject to the authority, direction, and control of the      
  Secretary of Defense.                                                   
     ``(2) Each facility of the Retirement Home shall be maintained as a  
  separate establishment of the Retirement Home for administrative        
  purposes and shall be under the authority, direction, and control of the
  Director of that facility. The Director of each facility of the         
  Retirement Home is subject to the authority, direction, and control of  
  the Chief Operating Officer.                                            
     ``(e) Property and Facilities.--(1) The Retirement Home shall include
  such property and facilities as may be acquired under paragraph (2) or  
  accepted under section 1515(f) for inclusion in the Retirement Home.    
     ``(2) The Secretary of Defense may acquire, for the benefit of the   
  Retirement Home, property and facilities for inclusion in the Retirement
  Home.                                                                   
     ``(3) The Secretary of Defense may dispose of any property of the    
  Retirement Home, by sale, lease, or otherwise, that the Secretary       
  determines is excess to the needs of the Retirement Home. The proceeds  
  from such a disposal of property shall be deposited in the Armed Forces 
  Retirement Home Trust Fund. No such disposal of real property shall be  
  effective earlier than 120 days after the date on which the Secretary   
  transmits a notification of the proposed disposal to the Committees on  
  Armed Services of the Senate and the House of Representatives.          
     ``(f) Department of Defense Support.--The Secretary of Defense may   
  make available from the Department of Defense to the Retirement Home, on
  a nonreimbursable basis, administrative support and office services,    
  legal and policy planning assistance, access to investigative facilities
  of the Inspector General of the Department of Defense and of the        
  military departments, and any other support necessary to enable the     
  Retirement Home to carry out its functions under this title.            
     ``(g) Accreditation.--The Chief Operating Officer shall endeavor to  
  secure for each facility of the Retirement Home accreditation by a      
  nationally recognized civilian accrediting organization, such as the    
  Continuing Care Accreditation Commission and the Joint Commission for   
  Accreditation of Health Organizations.                                  
     ``(h) Annual Report.--The Secretary of Defense shall transmit to     
  Congress an annual report on the financial and other affairs of the     
  Retirement Home for each fiscal year.''.                                
          SEC. 1404. CHIEF OPERATING OFFICER.                                     

     (a) Establishment and Authority of Position.--Section 1515 (24 U.S.C.
  415) is amended to read as follows:                                     
          ``SEC. 1515. CHIEF OPERATING OFFICER.                                   

     ``(a) Appointment.--(1) The Secretary of Defense shall appoint the   
  Chief Operating Officer of the Retirement Home.                         
     ``(2) The Chief Operating Officer shall serve at the pleasure of the 
  Secretary of Defense.                                                   
     ``(3) The Secretary of Defense shall evaluate the performance of the 
  Chief Operating Officer at least once each year.                        
     ``(b) Qualifications.--To qualify for appointment as the Chief       
  Operating Officer, a person shall--                                     
     ``(1) be a continuing care retirement community professional;         

     ``(2) have appropriate leadership and management skills; and          

       ``(3) have experience and expertise in the operation and management 
   of retirement homes and in the provision of long-term medical care for  
   older persons.                                                          
     ``(c) Responsibilities.--(1) The Chief Operating Officer shall be    
  responsible to the Secretary of Defense for the overall direction,      
  operation, and management of the Retirement Home and shall report to the
  Secretary on those matters.                                             
     ``(2) The Chief Operating Officer shall supervise the operation and  
  administration of the Armed Forces Retirement Home--Washington and the  
  Armed Forces Retirement Home--Gulfport, including the Local Boards of   
  those facilities.                                                       
    ``(3) The Chief Operating Officer shall perform the following duties: 

       ``(A) Issue, and ensure compliance with, appropriate rules for the  
   operation of the Retirement Home.                                       
       ``(B) Periodically visit, and inspect the operation of, the         
   facilities of the Retirement Home.                                      
       ``(C) Periodically examine and audit the accounts of the Retirement 
   Home.                                                                   
       ``(D) Establish any advisory body or bodies that the Chief Operating
   Officer considers to be necessary.                                      
     ``(d) Compensation.--(1) The Secretary of Defense may prescribe the  
  pay of the Chief Operating Officer, except that the annual rate of basic
  pay, including locality pay, of the Chief Operating Officer may not     
  exceed the annual rate of basic pay payable for level III of the        
  Executive Schedule under section 5314 of title 5, United States Code.   
     ``(2) In addition to basic pay and any locality pay prescribed for   
  the Chief Operating Officer, the Secretary may award the Chief Operating
  Officer, not more than once each year, a bonus based on the performance 
  of the Chief Operating Officer for the year. The Secretary shall        
  prescribe the amount of any such bonus.                                 
     ``(3) The total amount of the basic pay and bonus paid the Chief     
  Operating Officer for a year under this section may not exceed the      
  annual rate of basic pay payable for level I of the Executive Schedule  
  under section 5312 of title 5, United States Code.                      
     ``(e) Administrative Staff.--(1) The Chief Operating Officer may,    
  subject to the approval of the Secretary of Defense, appoint a staff to 
  assist in the performance of the Chief Operating Officer's duties in the
  overall administration of the Retirement Home.                          
     ``(2) The Chief Operating Officer shall prescribe the rates of pay   
  applicable to the members of the staff appointed under paragraph (1),   
  except that--                                                           
       ``(A) a staff member who is a member of the Armed Forces on active  
   duty or who is a full-time officer or employee of the United States may 
   not receive additional pay by reason of service on the administrative   
   staff; and                                                              
       ``(B) the limitations in section 5373 of title 5, United States     
   Code, relating to pay set by administrative action, shall apply to the  
   rates of pay prescribed under this paragraph.                           
     ``(f) Acceptance of Gifts.--(1) The Chief Operating Officer may      
  accept gifts of money, property, and facilities on behalf of the        
  Retirement Home.                                                        
     ``(2) Monies received as gifts, or realized from the disposition of  
  property and facilities received as gifts, shall be deposited in the    
  Armed Forces Retirement Home Trust Fund.''.                             
     (b) Transfer of Authorities.--(1) The following provisions are       
  amended by striking ``Retirement Home Board'' each place it appears and 
  inserting ``Chief Operating Officer'':                                  
       (A) Section 1512 (24 U.S.C. 412), relating to eligibility and       
   acceptance for residence in the Armed Forces Retirement Home.           
       (B) Section 1513(a) (24 U.S.C. 412(a)), relating to services        
   provided to residents of the Armed Forces Retirement Home.              
       (C) Section 1518(c) (24 U.S.C. 418(c)), relating to inspection of   
   the Armed Forces Retirement Home.                                       
     (2) Section 1519(c) (24 U.S.C. 419(c)), relating to authority to     
  invest funds in the Armed Forces Retirement Home Trust Fund, is amended 
  by striking ``Director'' and inserting ``Chief Operating Officer''.     
     (3) Section 1521(a) (24 U.S.C. 421(a)), relating to payment of       
  residents for services, is amended by striking ``Chairman of the Armed  
  Forces Retirement Board'' and inserting ``Chief Operating Officer''.    
     (4) Section 1522 (24 U.S.C. 422), relating to authority to accept    
  certain uncompensated services, is amended--                            
     (A) in subsection (a)--                                               

       (i) by striking ``Chairman of the Retirement Home Board or the      
   Director of each establishment'' and inserting ``Chief Operating Officer
   or the Director of a facility''; and                                    
       (ii) by striking ``unless'' and all that follows through            
   ``Retirement Home Board'';                                              
     (B) in subsection (b)(1)--                                            

       (i) by striking ``Chairman of the Retirement Home Board or the      
   Director of the establishment'' and inserting ``Chief Operating Officer 
   or the Director of a facility''; and                                    

       (ii) by inserting ``offering the services'' after ``notify the      
   person'';                                                               
       (C) in subsection (b)(2), by striking ``Chairman'' and inserting    
   ``Chief Operating Officer'';                                            
       (D) in subsection (c), by striking ``Chairman of the Retirement Home
   Board or the Director of an establishment'' and inserting ``Chief       
   Operating Officer or the Director of a facility''; and                  
     (E) in subsection (e)--                                               

       (i) by striking ``Chairman of the Retirement Board or the Director  
   of the establishment'' in the first sentence and inserting ``Chief      
   Operating Officer or the Director of a facility''; and                  
       (ii) by striking ``Chairman'' in the second sentence and inserting  
   ``Chief Operating Officer''.                                            
     (5) Section 1523(b) (24 U.S.C. 423(b)), relating to preservation of  
  historic buildings and grounds at the Armed Forces Retirement           
  Home--Washington, is amended by striking ``Chairman of the Retirement   
  Home Board'' and inserting ``Chief Operating Officer''.                 
          SEC. 1405. RESIDENTS OF RETIREMENT HOME.                                

     (a) Repeal of Requirement of Resident To Reapply After Substantial   
  Absence.--Subsection (e) of section 1512 (24 U.S.C. 412) is repealed.   
     (b) Fees Paid by Residents.--Section 1514 (24 U.S.C. 414) is amended 
  to read as follows:                                                     
          ``SEC. 1514. FEES PAID BY RESIDENTS.                                    

     ``(a) Monthly Fees.--The Director of each facility of the Retirement 
  Home shall collect a monthly fee from each resident of that facility.   
     ``(b) Deposit of Fees.--The Directors shall deposit fees collected   
  under subsection (a) in the Armed Forces Retirement Home Trust Fund.    
     ``(c) Fixing Fees.--(1) The Chief Operating Officer, with the        
  approval of the Secretary of Defense, shall from time to time prescribe 
  the fees required by subsection (a). Changes to such fees shall be based
  on the financial needs of the Retirement Home and the ability of the    
  residents to pay. A change of a fee may not take effect until 120 days  
  after the Secretary of Defense transmits a notification of the change to
  the Committees on Armed Services of the Senate and the House of         
  Representatives.                                                        

     ``(2) The fee shall be fixed as a percentage of the monthly income   
  and monthly payments (including Federal payments) received by a         
  resident. The percentage shall be the same for each facility of the     
  Retirement Home. The Secretary of Defense may make any adjustment in a  
  percentage that the Secretary determines appropriate.                   
     ``(3) The fee shall be subject to a limitation on maximum monthly    
  amount. The amount of the limitation shall be increased, effective on   
  January 1 of each year, by the percentage of the increase in retired pay
  and retainer pay that takes effect on the preceding December 1 under    
  subsection (b) of section 1401a of title 10, United States Code, without
  regard to paragraph (3) of such subsection. The first increase in a     
  limitation on maximum monthly amount shall take effect on January 1,    
  2003.                                                                   
     ``(d) Transitional Fee Structures.--(1) Until different fees are     
  prescribed and take effect under subsection (c), the percentages and    
  limitations on maximum monthly amount that are applicable to fees       
  charged residents of the Retirement Home are (subject to any adjustment 
  that the Secretary of Defense determines appropriate) as follows:       
     ``(A) For months beginning before January 1, 2002--                   

       ``(i) for a permanent health care resident, 65 percent (without     
   limitation on maximum monthly amount); and                              
       ``(ii) for a resident who is not a permanent health care resident,  
   40 percent (without limitation on maximum monthly amount).              
     ``(B) For months beginning after December 31, 2001--                  

       ``(i) for an independent living resident, 35 percent, but not to    
   exceed $1,000 each month;                                               
       ``(ii) for an assisted living resident, 40 percent, but not to      
   exceed $1,500 each month; and                                           
       ``(iii) for a long-term care resident, 65 percent, but not to exceed
   $2,500 each month.                                                      
     ``(2) Notwithstanding the limitations on maximum monthly amount      
  prescribed under subsection (c) or set forth in paragraph (1)(B), until 
  the earlier of December 31, 2006, or the date on which an independent   
  living resident or assisted living resident of the Armed Forces         
  Retirement Home--Gulfport occupies a renovated room at that facility, as
  determined by the Secretary of Defense, the limitation on maximum       
  monthly amount applicable to the resident for months beginning after    
  December 31, 2001, shall be--                                           
     ``(A) in the case of an independent living resident, $800; and        

     ``(B) in the case of an assisted living resident, $1,300.             

          SEC. 1406. LOCAL BOARDS OF TRUSTEES.                                    

    Section 1516 (24 U.S.C. 416) is amended to read as follows:           

          ``SEC. 1516. LOCAL BOARDS OF TRUSTEES.                                  

     ``(a) Establishment.--Each facility of the Retirement Home shall have
  a Local Board of Trustees.                                              
     ``(b) Duties.--The Local Board for a facility shall serve in an      
  advisory capacity to the Director of the facility and to the Chief      
  Operating Officer.                                                      
     ``(c) Composition.--(1) The Local Board for a facility shall consist 
  of at least 11 members who (except as otherwise specifically provided)  
  shall be appointed by the Secretary of Defense in consultation with each
  of the Secretaries of the military departments concerned. At least one  
  member of the Local Board shall have a perspective that is oriented     
  toward the Retirement Home overall. The Local Board for a facility shall
  consist of the following members:                                       
       ``(A) One member who is a civilian expert in nursing home or        
   retirement home administration and financing from the geographical area 
   of the facility.                                                        
       ``(B) One member who is a civilian expert in gerontology from the   
   geographical area of the facility.                                      
     ``(C) One member who is a service expert in financial management.     

       ``(D) One representative of the Department of Veterans Affairs      
   regional office nearest in proximity to the facility, who shall be      
   designated by the Secretary of Veterans Affairs.                        
       ``(E) One representative of the resident advisory committee or      
   council of the facility.                                                
       ``(F) One enlisted representative of the Services' Retiree Advisory 
   Council.                                                                
     ``(G) The senior noncommissioned officer of one of the Armed Forces.  

       ``(H) One senior representative of the military hospital nearest in 
   proximity to the facility.                                              
     ``(I) One senior judge advocate from one of the Armed Forces.         

     ``(J) The Director of the facility, who shall be a nonvoting member.  

       ``(K) One senior representative of one of the chief personnel       
   officers of the Armed Forces.                                           
       ``(L) Other members designated by the Secretary of Defense (if the  
   Local Board is to have more than 11 members).                           
     ``(2) The Secretary of Defense shall designate one member of a Local 
  Board to serve as the chairman of the Local Board at the pleasure of the
  Secretary of Defense.                                                   
     ``(d) Terms.--(1) Except as provided in subsections (e), (f), and    
  (g), the term of office of a member of a Local Board shall be five      
  years.                                                                  
     ``(2) Unless earlier terminated by the Secretary of Defense, a person
  may continue to serve as a member of the Local Board after the          
  expiration of the member's term until a successor is appointed or       
  designated, as the case may be.                                         
     ``(e) Early Expiration of Term.--A member of a Local Board who is a  
  member of the Armed Forces or an employee of the United States serves as
  a member of the Local Board only for as long as the member is assigned  
  to or serving in a position for which the duties include the duty to    
  serve as a member of the Local Board.                                   
     ``(f) Vacancies.--(1) A vacancy in the membership of a Local Board   
  shall be filled in the manner in which the original appointment or      
  designation was made, as the case may be.                               
     ``(2) A member appointed or designated to fill a vacancy occurring   
  before the end of the term of the predecessor of the member shall be    
  appointed or designated, as the case may be, for the remainder of the   
  term for which the predecessor was appointed.                           
     ``(3) A vacancy in a Local Board shall not affect its authority to   
  perform its duties.                                                     
     ``(g) Early Termination.--The Secretary of Defense may terminate the 
  appointment of a member of a Local Board before the expiration of the   
  member's term for any reason that the Secretary determines appropriate. 
     ``(h) Compensation.--(1) Except as provided in paragraph (2), a      
  member of a Local Board shall--                                         
       ``(A) be provided a stipend consistent with the daily government    
   consultant fee for each day on which the member is engaged in the       
   performance of services for the Local Board; and                        
       ``(B) while away from home or regular place of business in the      
   performance of services for the Local Board, be allowed travel expenses 
   (including per diem in lieu of subsistence) in the same manner as a     
   person employed intermittently in Government under sections 5701 through
   5707 of title 5, United States Code.                                    
     ``(2) A member of a Local Board who is a member of the Armed Forces  
  on active duty or a full-time officer or employee of the United States  
  shall receive no additional pay by reason of serving a member of a Local
  Board.''.                                                               

                    SEC. 1407. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS,  
          AND STAFF OF FACILITIES.                                                
    Section 1517 (24 U.S.C. 417) is amended to read as follows:           

                    ``SEC. 1517. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS,
          AND STAFF OF FACILITIES.                                                
     ``(a) Appointment.--The Secretary of Defense shall appoint a         
  Director, a Deputy Director, and an Associate Director for each facility
  of the Retirement Home.                                                 
    ``(b)  Director.--The Director of a facility shall--                  

       ``(1) be a civilian with experience as a continuing care retirement 
   community professional or a member of the Armed Forces serving on active
   duty in a grade below brigadier general or, in the case of the Navy,    
   rear admiral (lower half);                                              
     ``(2) have appropriate leadership and management skills; and          

       ``(3) be required to pursue a course of study to receive            
   certification as a retirement facilities director by an appropriate     
   civilian certifying organization, if the Director is not so certified at
   the time of appointment.                                                
     ``(c) Duties of Director.--(1) The Director of a facility shall be   
  responsible for the day-to-day operation of the facility, including the 
  acceptance of applicants to be residents of that facility.              
     ``(2) The Director of a facility shall keep accurate and complete    
  records of the facility.                                                
    ``(d)  Deputy Director.--(1) The Deputy Director of a facility shall--

       ``(A) be a civilian with experience as a continuing care retirement 
   community professional or a member of the Armed Forces serving on active
   duty in a grade below colonel or, in the case of the Navy, captain; and 
     ``(B) have appropriate leadership and management skills.              

     ``(2) The Deputy Director of a facility shall serve at the pleasure  
  of the Secretary of Defense.                                            
     ``(e) Duties of Deputy Director.--The Deputy Director of a facility  
  shall, under the authority, direction, and control of the Director of   
  the facility, perform such duties as the Director may assign.           

     ``(f) Associate Director.--(1) The Associate Director of a facility  
  shall--                                                                 
       ``(A) be a member of the Armed Forces serving on active duty in the 
   grade of Sergeant Major, Master Chief Petty Officer, or Chief Master    
   Sergeant or a member or former member retired in that grade; and        
     ``(B) have appropriate leadership and management skills.              

     ``(2) The Associate Director of a facility shall serve at the        
  pleasure of the Secretary of Defense.                                   
     ``(g) Duties of Associate Director.--The Associate Director of a     
  facility shall, under the authority, direction, and control of the      
  Director and Deputy Director of the facility, serve as ombudsman for the
  residents and perform such other duties as the Director may assign.     
     ``(h) Staff.--(1) The Director of a facility may, subject to the     
  approval of the Chief Operating Officer, appoint and prescribe the pay  
  of such principal staff as the Director considers appropriate to assist 
  the Director in operating the facility.                                 
     ``(2) The principal staff of a facility shall include persons with   
  experience and expertise in the operation and management of retirement  
  homes and in the provision of long-term medical care for older persons. 
     ``(i) Annual Evaluation of Directors.--(1) The Chief Operating       
  Officer shall evaluate the performance of each of the Directors of the  
  facilities of the Retirement Home each year.                            
     ``(2) The Chief Operating Officer shall submit to the Secretary of   
  Defense any recommendations regarding a Director that the Chief         
  Operating Officer determines appropriate taking into consideration the  
  annual evaluation.''.                                                   
                    SEC. 1408. DISPOSITION OF EFFECTS OF DECEASED PERSONS AND     
          UNCLAIMED PROPERTY.                                                     
     (a) Legal Representation for Retirement Home.--Subsection (b)(2)(A)  
  of section 1520 (24 U.S.C. 420) is amended by inserting ``who is a      
  full-time officer or employee of the United States or a member of the   
  Armed Forces on active duty'' after ``may designate an attorney''.      
     (b) Correction of Reference.--Subsection (b)(1)(B) of such section is
  amended by inserting ``Armed Forces'' before ``Retirement Home Trust    
  Fund''.                                                                 
          SEC. 1409. TRANSITIONAL PROVISIONS.                                     

     Part B is amended by striking sections 1531, 1532, and 1533 and      
  inserting the following new sections:                                   
                    ``SEC. 1531. TEMPORARY CONTINUATION OF ARMED FORCES RETIREMENT
          HOME BOARD.                                                             
     ``Until the Secretary of Defense appoints the first Chief Operating  
  Officer after the enactment of the National Defense Authorization Act   
  for Fiscal Year 2002, the Armed Forces Retirement Home Board, as        
  constituted on the day before the date of the enactment of that Act,    
  shall continue to serve and shall perform the duties of the Chief       
  Operating Officer.                                                      
          ``SEC. 1532. DIRECTORS OF FACILITIES.                                   

     ``(a) Active Duty Officers.--During the three-year period beginning  
  on the date of the enactment of the National Defense Authorization Act  
  for Fiscal Year 2002, the Directors and Deputy Directors of the         
  facilities shall be members of the Armed Forces serving on active duty, 
  notwithstanding the authority in subsections (b) and (d) of section 1517
  for the Directors and Deputy Directors to be civilians.                 
     ``(b) Temporary Continuation of Director of the Armed Forces         
  Retirement Home--Washington.--The person serving as the Director of the 
  Armed Forces Retirement Home--Washington on the day before the enactment
  of the National Defense Authorization Act for Fiscal Year 2002 may      
  continue to serve as the Director of that facility until April 2, 2002. 
          ``SEC. 1533. TEMPORARY CONTINUATION OF INCUMBENT DEPUTY DIRECTORS.      

     ``A person serving as the Deputy Director of a facility of the       
  Retirement Home on the day before the enactment of the National Defense 
  Authorization Act for Fiscal Year 2002 may continue to serve, at the    
  pleasure of the Secretary of Defense, as the Deputy Director until the  
  date on which a Deputy Director is appointed for that facility under    
  section 1517, except that the service in that position may not continue 
  under this section after December 31, 2004.''.                          
                    SEC. 1410. CONFORMING AND CLERICAL AMENDMENTS AND REPEALS OF  
          OBSOLETE PROVISIONS.                                                    
     (a) Conforming Amendments.--(1) Section 1513(b) (24 U.S.C. 413(b)),  
  relating to services provided to residents of the Armed Forces          
  Retirement Home, is amended by striking ``maintained as a separate      
  establishment'' in the second sentence.                                 
     (2) The heading for section 1519 (24 U.S.C. 419) is amended to read  
  as follows:                                                             
          ``SEC. 1519. ARMED FORCES RETIREMENT HOME TRUST FUND.''.                

     (3) Section 1520 (24 U.S.C. 420), relating to disposition of effects 
  of deceased persons and unclaimed property, is amended--                
       (A) in subsection (a), by striking ``each facility that is          
   maintained as a separate establishment'' and inserting ``a facility'';  
       (B) in subsection (b)(2)(A), by striking ``maintained as a separate 
   establishment''; and                                                    
       (C) in subsection (e), by striking ``Directors'' and inserting      
   ``Director of the facility''.                                           
     (4)(A) Section 1523 (24 U.S.C. 423), relating to preservation of     
  historic buildings and grounds at the Armed Forces Retirement           
  Home--Washington, is amended by striking ``United States Soldiers' and  
  Airmen's Home'' each place it appears and inserting ``Armed Forces      
  Retirement Home--Washington''.                                          
    (B) The heading for such section is amended to read as follows:       

                    ``SEC. 1523. PRESERVATION OF HISTORIC BUILDINGS AND GROUNDS AT
          THE ARMED FORCES RETIREMENT HOME--WASHINGTON.''.                        
     (5) Section 1524 (24 U.S.C. 424), relating to conditional supervisory
  control of the Retirement Home Board, is repealed.                      
     (b) Repeal of Obsolete Provisions.--The following provisions are     
  repealed:                                                               
       (1) Section 1512(f) (24 U.S.C. 412(f)), relating to the             
   applicability of certain eligibility requirements.                      
       (2) Section 1519(d) (24 U.S.C. 419(d)), relating to transitional    
   accounts in the Armed Forces Retirement Home Trust Fund.                
       (3) Part C, relating to effective date and authorization of         
   appropriations.                                                         
     (c) Addition of Table of Contents.--Section 1501 (24 U.S.C. 401 note)
  is amended--                                                            
     (1) by inserting ``(a)  Short Title.--'' before ``This title''; and   

     (2) by adding at the end the following new subsection:                

     ``(b) Table of Contents.--The table of contents for this title is as 
  follows:                                                                


      ``Sec. 1501. Short title; table of contents.                            

      ``Sec. 1502. Definitions.                                               

                  ``PART A--ESTABLISHMENT AND OPERATION OF RETIREMENT HOME        

      ``Sec. 1511. Establishment of the Armed Forces Retirement Home.         

      ``Sec. 1512. Residents of Retirement Home.                              

      ``Sec. 1513. Services provided residents.                               

      ``Sec. 1514. Fees paid by residents.                                    

      ``Sec. 1515. Chief Operating Officer.                                   

      ``Sec. 1516. Local Boards of Trustees.                                  

            ``Sec. 1517. Directors, Deputy Directors, Associate Directors, and
      staff of facilities.                                                    
      ``Sec. 1518. Inspection of Retirement Home.                             

      ``Sec. 1519. Armed Forces Retirement Home Trust Fund.                   

            ``Sec. 1520. Disposition of effects of deceased persons; unclaimed
      property.                                                               
      ``Sec. 1521. Payment of residents for services.                         

      ``Sec. 1522. Authority to accept certain uncompensated services.        

            ``Sec. 1523. Preservation of historic buildings and grounds at the
      Armed Forces Retirement Home--Washington.                               
                             ``PART B--TRANSITIONAL PROVISIONS                    

            ``Sec. 1531. Temporary Continuation of Armed Forces Retirement    
      Home Board.                                                             
      ``Sec. 1532. Directors of Facilities.                                   

      ``Sec. 1533. Temporary Continuation of Incumbent Deputy Directors.''.   


           TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM                    


                    SUBTITLE A--INCREASED FUNDING FOR COMBATING TERRORISM         

      Sec. 1501. Definitions.                                                 

            Sec. 1502. Authorization of emergency appropriations for fiscal   
      year 2001 made by Public Law 107 38 and allocated for national defense  
      functions.                                                              
            Sec. 1503. Authorization of emergency supplemental appropriations 
      for fiscal year 2002.                                                   
            Sec. 1504. Authorization of use of funds for military construction
      projects.                                                               
      Sec. 1505. Treatment of transferred amounts.                            

      Sec. 1506. Quarterly reports.                                           

                 SUBTITLE B--POLICY MATTERS RELATING TO COMBATING TERRORISM       

            Sec. 1511. Study and report on the role of the Department of      
      Defense with respect to homeland security.                              
            Sec. 1512. Combating Terrorism Readiness Initiatives Fund for     
      combatant commands.                                                     
            Sec. 1513. Conveyances of equipment and related materials loaned  
      to State and local governments as assistance for emergency response to a
      use or threatened use of a weapon of mass destruction.                  
            Sec. 1514. Two-year extension of advisory panel to assess domestic
      response capabilities for terrorism involving weapons of mass           
      destruction.                                                            

           Subtitle A--Increased Funding for Combating Terrorism                   


          SEC. 1501. DEFINITIONS.                                                 

    For purposes of this subtitle:                                        

       (1) The term ``ETR Supplemental Appropriations Act, 2001'' means the
   2001 Emergency Supplemental Appropriations Act for Recovery from and    
   Response to Terrorist Attacks on the United States (Public Law 107 38). 
       (2) The term ``Emergency Supplemental Appropriations Act, 2002''    
   means an Act (or a portion of an Act) making available for obligation   
   emergency appropriations that were provided, subject to enactment in a  
   subsequent appropriation Act, in the ETR Supplemental Appropriations    
   Act, 2001.                                                              

                    SEC. 1502. AUTHORIZATION OF EMERGENCY APPROPRIATIONS FOR      
          FISCAL YEAR 2001 MADE BY PUBLIC LAW 107 38 AND ALLOCATED FOR NATIONAL   
          DEFENSE FUNCTIONS.                                                      
     (a) Adjustment in Authorization Amounts.--(1) Subject to paragraph   
  (2), amounts authorized to be appropriated for fiscal year 2001 in the  
  Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
  (as enacted into law by Public Law 106 398) are hereby increased, with  
  respect to any such authorized amount, by the amount (if any) by which  
  appropriations pursuant to such authorization are increased by amounts  
  appropriated in the ETR Supplemental Appropriations Act, 2001, and      
  transferred by the President (before the date of the enactment of this  
  Act) to the Department of Defense or the National Nuclear Security      
  Administration and subsequently allocated to such appropriations.       
     (2) Authorization amounts may not be increased under paragraph (1) in
  excess of amounts derived from allocation of the amounts specified in   
  subsection (b), for the Department of Defense, and in subsection (c),   
  for the National Nuclear Security Administration.                       
     (b) Department of Defense.--Amounts referred to in subsection (a)(2) 
  for the Department of Defense are amounts for emergency expenses to     
  respond to the terrorist attacks on the United States that occurred on  
  September 11, 2001, allocated to the Department of Defense for fiscal   
  year 2001 for the use of the Armed Forces and other activities and      
  agencies of the Department of Defense, including the purposes stated in 
  section 1504, in the total amount of $13,741,000,000, as follows:       
       (1) Increased situational awareness.--For Increased Situational     
   Awareness, $4,272,000,000.                                              
       (2) Enhanced force protection.--For Enhanced Force Protection,      
   $1,509,000,000.                                                         
       (3) Improved command and control.--For Improved Command and Control,
   $1,403,000,000.                                                         
       (4) Increased worldwide posture.--For Increased Worldwide Posture,  
   $3,603,000,000.                                                         
       (5) Offensive counterterrorism.--For Offensive Counterterrorism,    
   $1,459,000,000.                                                         
       (6) Initial crisis response.--For Initial Crisis Response,          
   $637,000,000.                                                           
       (7) Pentagon repair and upgrade.--For Pentagon Repair and Upgrade   
   Activities, $530,000,000.                                               
     (8)  Fuel costs.--For increased fuel costs, $100,000,000.             

       (9) Airport and border security.--For airport and border security,  
   $228,000,000.                                                           
     (c) NNSA.--The amount referred to in subsection (a)(2) for the       
  National Nuclear Security Administration is the amount of $5,000,000 for
  emergency expenses to respond to the terrorist attacks on the United    
  States that occurred on September 11, 2001, allocated for fiscal year   
  2001 atomic energy defense activities of the National Nuclear Security  
  Administration for weapons activities.                                  
     (d) Treatment as Additional Authorizations.--The amounts authorized  
  to be appropriated by this section are in addition to amounts otherwise 
  authorized to be appropriated by the Floyd D. Spence National Defense   
  Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
  Law 106 398) or any other Act, for fiscal year 2001 for the use of the  
  Armed Forces and other activities and agencies of the Department of     
  Defense and for the use of the National Nuclear Security Administration.
                    SEC. 1503. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL            
          APPROPRIATIONS FOR FISCAL YEAR 2002.                                    
     (a) Department of Defense.--For emergency expenses to respond to the 
  September 11, 2001, terrorist attacks on the United States, funds are   
  hereby authorized to be appropriated to the Defense Emergency Response  
  Fund for fiscal year 2002 for the use of the Armed Forces and other     
  activities and agencies of the Department of Defense, including the     
  purposes stated in section 1504, in the total amount of $7,349,000,000, 
  as follows:                                                             
       (1) Increased situational awareness.--For Increased Situational     
   Awareness, $1,735,000,000.                                              
       (2) Enhanced force protection.--For Enhanced Force Protection,      
   $881,000,000.                                                           
       (3) Improved command and control.--For Improved Command and Control,
   $219,000,000.                                                           
       (4) Increased worldwide posture.--For Increased Worldwide Posture,  
   $2,938,000,000.                                                         
       (5) Offensive counterterrorism.--For Offensive Counterterrorism,    
   $545,000,000.                                                           
       (6) Initial crisis response.--For Initial Crisis Response,          
   $106,000,000.                                                           
       (7) Pentagon repair and upgrade.--For Pentagon Repair and Upgrade   
   Activities, $925,000,000.                                               
     (b) NNSA.--For emergency expenses to respond to the September 11,    
  2001, terrorist attacks on the United States and for other expenses to  
  increase the security of the Nation's nuclear weapons complex, funds are
  hereby authorized to be appropriated for fiscal year 2002 for the atomic
  energy defense activities of the National Nuclear Security              
  Administration in the amount of $106,000,000, to be available for       
  weapons activities.                                                     
     (c) Department of Energy.--For emergency expenses to respond to the  
  September 11, 2001, terrorist attacks on the United States, funds are   
  hereby authorized to be appropriated for fiscal year 2002 to the        
  Department of Energy in the total amount of $11,700,000, as follows:    
       (1) For Defense Environmental Restoration and Waste Management,     
   $8,200,000.                                                             
     (2) For Other Defense Activities, $3,500,000.                         

     (d) Transfer of Defense Funds.--In order to carry out the specified  
  purposes in subsection (a), the Secretary of Defense may transfer       
  amounts authorized by subsection (a) from the Defense Emergency Response
  Fund to any other defense appropriations account, including the account 
  ``Support for International Sporting Events, Defense'' and any military 
  construction account as provided in section 1504.                       
     (e) Availability.--Amounts appropriated pursuant to authorizations in
  this section may remain available until expended, if so provided in     
  appropriations Acts.                                                    
     (f) Source of Funds.--Amounts appropriated pursuant to authorizations
  in this section shall be derived from amounts provided, subject to      
  subsequent appropriation, in the ETR Supplemental Appropriations Act,   
  2001.                                                                   
     (g) Treatment as Additional Authorizations.--The amounts authorized  
  to be appropriated by this section are in addition to amounts otherwise 
  authorized to be appropriated, by the other provisions of this Act or by
  any other Act, for fiscal year 2001 for the use of the Armed Forces and 
  other activities and agencies of the Department of Defense and for the  
  use of the National Nuclear Security Administration.                    
                    SEC. 1504. AUTHORIZATION OF USE OF FUNDS FOR MILITARY         
          CONSTRUCTION PROJECTS.                                                  
     (a) Authority for Use of Funds.--Qualified emergency defense         
  appropriations may be used to acquire real property and carry out       
  military construction projects not otherwise authorized by law that the 
  Secretary of Defense determines are necessary to respond to or protect  
  against acts or threatened acts of terrorism or to respond to the       
  terrorist attacks on the United States that occurred on September 11,   
  2001.                                                                   
     (b) Project Authorization.--Any project with respect to which the    
  Secretary makes a determination under subsection (a) and that is to be  
  carried out using qualified emergency defense appropriations is hereby  
  authorized for purposes of section 2802 of title 10, United States Code.
     (c) Qualified Emergency Defense Appropriations.--For purposes of this
  subsection, the term ``qualified emergency defense appropriations''     
  means emergency appropriations available to the Department of Defense   
  that are authorized by section 1502 or 1503.                            
          SEC. 1505. TREATMENT OF TRANSFERRED AMOUNTS.                            

     Amounts transferred under authority of section 1502 or 1503 shall be 
  merged with, and shall be available for the same purposes and for the   
  same time period as, the accounts to which transferred. The transfer    
  authority under those sections is in addition to the transfer authority 
  provided by section 1001 or any other provision of law.                 

          SEC. 1506. QUARTERLY REPORTS.                                           

     (a) Quarterly Report.--Promptly after the end of each quarter of a   
  fiscal year, the Secretary of Defense and the Director of Central       
  Intelligence shall each submit to the congressional defense committees a
  report (in classified and unclassified form, as needed) on the use of   
  funds authorized by this subtitle. Each such report shall, at a minimum,
  specify the following:                                                  
       (1) Any balance of funds remaining in the Defense Emergency Response
   Fund as of the end of the quarter covered by the report.                
       (2) The accounts to which funds have been transferred or are to be  
   transferred and the amount of each such transfer.                       
       (3) Within such accounts, each project to which any such funds have 
   been transferred or are to be transferred and the amount of funds       
   obligated and the amount expended for each such project as of the end of
   the quarter covered by the report.                                      
     (b) Initial Report.--The first report under subsection (a) shall be  
  submitted not later than January 2, 2002.                               
     (c) Final Report.--No further report under subsection (a) is required
  after all funds made available to the Department of Defense pursuant to 
  such Act have been obligated.                                           
           Subtitle B--Policy Matters Relating to Combating Terrorism              


                    SEC. 1511. STUDY AND REPORT ON THE ROLE OF THE DEPARTMENT OF  
          DEFENSE WITH RESPECT TO HOMELAND SECURITY.                              
     (a) Study Required.--The Secretary of Defense shall conduct a study  
  on the appropriate role of the Department of Defense with respect to    
  homeland security. The study shall identify and describe the policies,  
  plans, and procedures of the Department of Defense for combating        
  terrorism, including for the provision of support for the consequence   
  management activities of other Federal, State, and local agencies. The  
  study shall specifically identify the following:                        
       (1) The strategy, roles, and responsibilities of the Department of  
   Defense for combating terrorism.                                        
       (2) How the Department of Defense will interact with the Office of  
   Homeland Security and how intelligence sharing efforts of the Department
   of Defense will be organized relative to other Federal agencies and     
   departments and State and local governments.                            
       (3) The ability of the Department of Defense to protect the United  
   States from airborne threats, including threats originating from within 
   the borders of the United States.                                       
       (4) Improvements that could be made to enhance the security of the  
   people of the United States against terrorist threats and recommended   
   actions (including legislative action) and programs to address and      
   overcome existing vulnerabilities.                                      
       (5) The policies, plans, and procedures relating to how the civilian
   official in the Department of Defense responsible for combating         
   terrorism and the Joint Task Force Civil Support of the Joint Forces    
   Command will coordinate the performance of functions for combating      
   terrorism with--                                                        
       (A) teams in the Department of Defense that have responsibilities   
   for responding to acts or threats of terrorism, including--             
       (i) weapons of mass destruction civil support teams when operating  
   as the National Guard under the command of the Governor of a State, the 
   Governor of Puerto Rico, or the Commanding General of the District of   
   Columbia National Guard;                                                
       (ii) weapons of mass destruction civil support teams when operating 
   as the Army National Guard of the United States or the Air National     
   Guard of the United States under the command of the President;          
       (iii) teams in the departments and agencies of the Federal          
   Government other than the Department of Defense that have               
   responsibilities for responding to acts or threats of terrorism;        
       (iv) organizations outside the Federal Government, including any    
   State, local and private entities, that function as first responders to 
   acts or threats of terrorism; and                                       
       (v) units and organizations of the Reserve Components of the Armed  
   Forces that have missions relating to combating terrorism;              
     (B) the Director of Military Support of the Department of the Army;   

       (C) any preparedness plans to combat terrorism that are developed   
   for installations of the Department of Defense by the commanders of the 
   installations and the integration of those plans with the plans of the  
   teams and organizations described in subparagraph (A);                  
       (D) the policies, plans and procedures for using and coordinating   
   the integrated vulnerability assessment teams of the Joint Staff inside 
   and outside the United States; and                                      
       (E) the missions of Fort Leonard Wood and other installations for   
   training units, weapons of mass destruction civil support teams and     
   other teams, and individuals in combating terrorism.                    
       (6) The appropriate number and missions of the teams referred to in 
   paragraph (5)(A)(i).                                                    
       (7) How the Department of Defense Weapons of Mass Destruction Civil 
   Support Teams should interact with the Federal Bureau of Investigation  
   and the Federal Emergency Management Agency during crisis response and  
   consequence management situations.                                      
     (b) Report.--Not later than 180 days after the date of the enactment 
  of this Act, the Secretary shall submit to Congress a report including  
  the findings of the study conducted under subsection (a).               

                    SEC. 1512. COMBATING TERRORISM READINESS INITIATIVES FUND FOR 
          COMBATANT COMMANDS.                                                     
     (a) Funding for Initiatives.--Chapter 6 of title 10, United States   
  Code, is amended by inserting after section 166a the following new      
  section:                                                                
                    ``166b. Combatant commands: funding for combating terrorism   
          readiness initiatives                                                   
     ``(a) Combating Terrorism Readiness Initiatives Fund.--From funds    
  made available in any fiscal year for the budget account in the         
  Department of Defense known as the `Combating Terrorism Readiness       
  Initiatives Fund', the Chairman of the Joint Chiefs of Staff may provide
  funds to the commander of a combatant command, upon the request of the  
  commander, or, with respect to a geographic area or areas not within the
  area of responsibility of a commander of a combatant command, to an     
  officer designated by the Chairman of the Joint Chiefs of Staff for such
  purpose. The Chairman may provide such funds for initiating any activity
  named in subsection (b) and for maintaining and sustaining the activity 
  for the fiscal year in which initiated and one additional fiscal year.  
     ``(b) Authorized Activities.--Activities for which funds may be      
  provided under subsection (a) are the following:                        
     ``(1) Procurement and maintenance of physical security equipment.     

     ``(2) Improvement of physical security sites.                         

     ``(3) Under extraordinary circumstances--                             

     ``(A) physical security management planning;                          

       ``(B) procurement and support of security forces and security       
   technicians;                                                            
       ``(C) security reviews and investigations and vulnerability         
   assessments; and                                                        
     ``(D) any other activity relating to physical security.               

     ``(c) Priority.--The Chairman of the Joint Chiefs of Staff, in       
  considering requests for funds in the Combating Terrorism Readiness     
  Initiatives Fund, should give priority consideration to emergency or    
  emergent unforeseen high-priority requirements for combating terrorism. 
     ``(d) Relationship to Other Funding.--Any amount provided by the     
  Chairman of the Joint Chiefs of Staff for a fiscal year out of the      
  Combating Terrorism Readiness Initiatives Fund for an activity referred 
  to in subsection (b) shall be in addition to amounts otherwise available
  for that activity for that fiscal year.                                 
     ``(e) Limitation.--Funds may not be provided under this section for  
  any activity that has been denied authorization by Congress.''.         
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  166a the following new item:                                            


            ``166b. Combatant commands: funding for combating terrorism       
      readiness initiatives.''.                                               

                    SEC. 1513. CONVEYANCES OF EQUIPMENT AND RELATED MATERIALS     
          LOANED TO STATE AND LOCAL GOVERNMENTS AS ASSISTANCE FOR EMERGENCY       
          RESPONSE TO A USE OR THREATENED USE OF A WEAPON OF MASS DESTRUCTION.    
     Section 1412(e) of the Defense Against Weapons of Mass Destruction   
  Act of 1996 (title XIV of Public Law 104 201; 110 Stat. 2718; 50 U.S.C. 
  2312(e)) is amended by adding at the end the following new paragraph:   
       ``(5) A conveyance of ownership of United States property to a State
   or local government, without cost and without regard to subsection (f)  
   and title II of the Federal Property and Administrative Services Act of 
   1949 (or any other provision of law relating to the disposal of property
   of the United States), if the property is equipment, or equipment and   
   related materials, that is in the possession of the State or local      
   government on the date of the enactment of the National Defense         
   Authorization Act for Fiscal Year 2002 pursuant to a loan of the        
   property as assistance under this section.''.                           

                    SEC. 1514. TWO-YEAR EXTENSION OF ADVISORY PANEL TO ASSESS     
          DOMESTIC RESPONSE CAPABILITIES FOR TERRORISM INVOLVING WEAPONS OF MASS  
          DESTRUCTION.                                                            
     (a) Extension of Advisory Panel.--Section 1405 of the Strom Thurmond 
  National Defense Authorization Act for Fiscal Year 1999 (50 U.S.C. 2301 
  note) is amended--                                                      
       (1) in subsection (h)(2), by striking ``2001'' and inserting        
   ``2003''; and                                                           
       (2) in subsection (l), by striking ``three years'' and inserting    
   ``five years''.                                                         
     (b) Pay and Expenses of Members.--(1) Subsection (k) of such section 
  is amended to read as follows:                                          
     ``(k) Compensation of Panel Members.--The provisions of paragraph (4)
  of section 591(c) of the Foreign Operations, Export Financing, and      
  Related Programs Appropriations Act, 1999 (as contained in section      
  101(d) of division A of the Omnibus Consolidated and Emergency          
  Supplemental Appropriations Act, 1999 (Public Law 105 277; 112 Stat.    
  2681 212)), shall apply to members of the panel in the same manner as to
  members of the National Commission on Terrorism under that paragraph.''.
     (2) The amendment made by paragraph (1) shall apply with respect to  
  periods of service on the advisory panel under section 1405 of the Strom
  Thurmond National Defense Authorization Act for Fiscal Year 1999 on or  
  after the date of the enactment of this Act.                            

           TITLE XVI--UNIFORMED SERVICES VOTING                                    


      Sec. 1601. Sense of Congress regarding the importance of voting.        

      Sec. 1602. Voting assistance programs.                                  

      Sec. 1603. Guarantee of residency for military personnel.               

      Sec. 1604. Electronic voting demonstration project.                     

            Sec. 1605. Governors' reports on implementation of recommendations
      for changes in State law made under Federal Voting Assistance Program.  
            Sec. 1606. Simplification of voter registration and absentee      
      ballot application procedures for absent uniformed services and overseas
      voters.                                                                 
            Sec. 1607. Use of certain Department of Defense facilities as     
      polling places.                                                         

          SEC. 1601. SENSE OF CONGRESS REGARDING THE IMPORTANCE OF VOTING.        

     (a) Sense of Congress.--It is the sense of Congress that each person 
  who is an administrator of a Federal, State, or local election--        
       (1) should be aware of the importance of the ability of each        
   uniformed services voter to exercise the right to vote; and             
       (2) should perform that person's duties as an election administrator
   with the intent to ensure that--                                        
       (A) each uniformed services voter receives the utmost consideration 
   and cooperation when voting;                                            
     (B) each valid ballot cast by such a voter is duly counted; and       

       (C) all eligible American voters, regardless of race, ethnicity,    
   disability, the language they speak, or the resources of the community  
   in which they live, should have an equal opportunity to cast a vote and 
   to have that vote counted.                                              
     (b) Uniformed Services Voter Defined.--In this section, the term     
  ``uniformed services voter'' means--                                    
       (1) a member of a uniformed service (as defined in section 101(a)(5)
   of title 10, United States Code) in active service;                     
       (2) a member of the merchant marine (as defined in section 107 of   
   the Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C.      
   1973ff 6)); and                                                         
       (3) a spouse or dependent of a member referred to in paragraph (1)  
   or (2) who is qualified to vote.                                        

          SEC. 1602. VOTING ASSISTANCE PROGRAMS.                                  

     (a) In General.--(1) Chapter 80 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
          ``1566. Voting assistance: compliance assessments; assistance           

     ``(a) Regulations.--The Secretary of Defense shall prescribe         
  regulations to require that the Army, Navy, Air Force, and Marine Corps 
  ensure their compliance with any directives issued by the Secretary of  
  Defense in implementing any voting assistance program.                  
     ``(b) Voting Assistance Programs Defined.--In this section, the term 
  `voting assistance programs' means--                                    
       ``(1) the Federal Voting Assistance Program carried out under the   
   Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff et
   seq.); and                                                              
     ``(2) any similar program.                                            

     ``(c) Annual Effectiveness and Compliance Reviews.--(1) The Inspector
  General of each of the Army, Navy, Air Force, and Marine Corps shall    
  conduct--                                                               
       ``(A) an annual review of the effectiveness of voting assistance    
   programs; and                                                           
       ``(B) an annual review of the compliance with voting assistance     
   programs of that armed force.                                           
     ``(2) Upon the completion of each annual review under paragraph (1), 
  each Inspector General specified in that paragraph shall submit to the  
  Inspector General of the Department of Defense a report on the results  
  of each such review. Such report shall be submitted in time each year to
  be reflected in the report of the Inspector General of the Department of
  Defense under paragraph (3).                                            
     ``(3) Not later than March 31 each year, the Inspector General of the
  Department of Defense shall submit to Congress a report on--            
       ``(A) the effectiveness during the preceding calendar year of voting
   assistance programs; and                                                
       ``(B) the level of compliance during the preceding calendar year    
   with voting assistance programs of each of the Army, Navy, Air Force,   
   and Marine Corps.                                                       
     ``(d) Inspector General Assessments.--(1) The Inspector General of   
  the Department of Defense shall periodically conduct at Department of   
  Defense installations unannounced assessments of the compliance at those
  installations with--                                                    
       ``(A) the requirements of the Uniformed and Overseas Citizens       
   Absentee Voting Act (42 U.S.C. 1973ff et seq.);                         
       ``(B) Department of Defense regulations regarding that Act and the  
   Federal Voting Assistance Program carried out under that Act; and       
       ``(C) other requirements of law regarding voting by members of the  
   armed forces.                                                           
     ``(2) The Inspector General shall conduct an assessment under        
  paragraph (1) at not less than 10 Department of Defense installations   
  each calendar year.                                                     
     ``(3) Each assessment under paragraph (1) shall include a review of  
  such compliance--                                                       
       ``(A) within units to which are assigned, in the aggregate, not less
   than 20 percent of the personnel assigned to duty at that installation; 
       ``(B) within a representative survey of members of the armed forces 
   assigned to that installation and their dependents; and                 
       ``(C) within unit voting assistance officers to measure program     
   effectiveness.                                                          
     ``(e) Regular Military Department Assessments.--The Secretary of each
  military department shall include in the set of issues and programs to  
  be reviewed during any management effectiveness review or inspection at 
  the installation level an assessment of compliance with the Uniformed   
  and Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff et seq.) and
  with Department of Defense regulations regarding the Federal Voting     
  Assistance Program.                                                     
     ``(f) Voting Assistance Officers.--Voting assistance officers shall  
  be appointed or assigned under Department of Defense regulations.       
  Commanders at all levels are responsible for ensuring that unit voting  
  officers are trained and equipped to provide information and assistance 
  to members of the armed forces on voting matters. Performance evaluation
  reports pertaining to a member who has been assigned to serve as a      
  voting assistance officer shall comment on the performance of the member
  as a voting assistance officer.                                         
     ``(g) Delivery of Mail From Overseas Preceding Federal               
  Elections.--(1) During the four months preceding a general Federal      
  election month, the Secretary of Defense shall periodically conduct     
  surveys of all overseas locations and vessels at sea with military units
  responsible for collecting mail for return shipment to the United States
  and all port facilities in the United States and overseas where         
  military-related mail is collected for shipment to overseas locations or
  to the United States. The purpose of each survey shall be to determine  
  if voting materials are awaiting shipment at any such location and, if  
  so, the length of time that such materials have been held at that       
  location. During the fourth and third months before a general Federal   
  election month, such surveys shall be conducted biweekly. During the    
  second and first months before a general Federal election month, such   
  surveys shall be conducted weekly.                                      
     ``(2) The Secretary shall ensure that voting materials are           
  transmitted expeditiously by military postal authorities at all times.  
     ``(3) In this section, the term `general Federal election month'     
  means November in an even-numbered year.''.                             
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


      ``1566. Voting assistance: compliance assessments; assistance.''.       



     (b) Initial Report.--The first report under section 1566(c)(3) of    
  title 10, United States Code, as added by subsection (a), shall be      
  submitted not later than March 31, 2003.                                

          SEC. 1603. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.               

     Article VII of the Soldiers' and Sailors' Civil Relief Act of 1940   
  (50 U.S.C. App. 590 et seq.) is amended by adding at the end the        
  following:                                                              
     `` Sec. 704. (a) For purposes of voting for any Federal office (as   
  defined in section 301 of the Federal Election Campaign Act of 1971 (2  
  U.S.C. 431)) or a State or local office, a person who is absent from a  
  State in compliance with military or naval orders shall not, solely by  
  reason of that absence--                                                
       ``(1) be deemed to have lost a residence or domicile in that State, 
   without regard to whether or not the person intends to return to that   
   State;                                                                  
       ``(2) be deemed to have acquired a residence or domicile in any     
   other State; or                                                         
       ``(3) be deemed to have become a resident in or a resident of any   
   other State.                                                            
     ``(b) In this section, the term `State' includes a territory or      
  possession of the United States, a political subdivision of a State,    
  territory, or possession, and the District of Columbia.''.              

          SEC. 1604. ELECTRONIC VOTING DEMONSTRATION PROJECT.                     

    (a)  Establishment of Demonstration Project.--                        

       (1) In general.--Subject to paragraph (2), the Secretary of Defense 
   shall carry out a demonstration project under which absent uniformed    
   services voters are permitted to cast ballots in the regularly scheduled
   general election for Federal office for November 2002 through an        
   electronic voting system. The project shall be carried out with         
   participation of sufficient numbers of absent uniformed services voters 
   so that the results are statistically relevant.                         
       (2) Authority to delay implementation.--If the Secretary of Defense 
   determines that the implementation of the demonstration project under   
   paragraph (1) with respect to the regularly scheduled general election  
   for Federal office for November 2002 may adversely affect the national  
   security of the United States, the Secretary may delay the              
   implementation of such demonstration project until the regularly        
   scheduled general election for Federal office for November 2004. The    
   Secretary shall notify the Committee on Armed Services and the Committee
   on Rules and Administration of the Senate and the Committee on Armed    
   Services and the Committee on House Administration of the House of      
   Representatives of any decision to delay implementation of the          
   demonstration project.                                                  
     (b) Coordination With State Election Officials.--The Secretary shall 
  carry out the demonstration project under this section through          
  cooperative agreements with State election officials of States that     
  agree to participate in the project.                                    
     (c) Report to Congress.--Not later than June 1 of the year following 
  the year in which the demonstration project is conducted under this     
  section, the Secretary of Defense shall submit to Congress a report     
  analyzing the demonstration project. The Secretary shall include in the 
  report any recommendations the Secretary considers appropriate for      
  continuing the project on an expanded basis for absent uniformed        
  services voters during the next regularly scheduled general election for
  Federal office.                                                         
    (d)  Definitions.--In this section:                                   

       (1) Absent uniformed services voter.--The term ``absent uniformed   
   services voter'' has the meaning given that term in section 107(1) of   
   the Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C.      
   1973ff 6(1)).                                                           
       (2) State.--The term ``State'' includes the District of Columbia,   
   the Commonwealth of Puerto Rico, Guam, the Virgin Islands, and American 
   Samoa.                                                                  

                    SEC. 1605. GOVERNORS' REPORTS ON IMPLEMENTATION OF            
          RECOMMENDATIONS FOR CHANGES IN STATE LAW MADE UNDER FEDERAL VOTING      
          ASSISTANCE PROGRAM.                                                     
     (a) Reports.--(1) Whenever a State receives a uniformed services     
  voting assistance legislative recommendation from the Secretary of      
  Defense, acting as the Presidential designee, the chief executive       
  authority of that State shall, not later than 90 days after receipt of  
  that recommendation, provide a report on the status of implementation of
  that recommendation by that State.                                      
     (2) If a legislative recommendation referred to in paragraph (1) has 
  been implemented, in whole or in part, by a State, the report of the    
  chief executive authority of that State under that paragraph with       
  respect to that recommendation shall include a description of the       
  changes made to State law to implement the recommendation. If the       
  recommendation has not been implemented, the report shall include a     
  statement of the status of the recommendation before the State          
  legislature and a statement of any recommendation the chief executive   
  officer has made or intends to make to the legislature with respect to  
  that recommendation.                                                    
     (3) Any report under paragraph (1) shall be transmitted to the       
  Secretary of Defense, acting as the Presidential designee. The Secretary
  shall transmit a copy of the response to each Member of Congress who    
  represents that State.                                                  
     (b) Period of Applicability.--This section applies with respect to   
  any uniformed services voting assistance legislative recommendation     
  transmitted to a State by the Secretary of Defense, acting as the       
  Presidential designee, during the three-year period beginning on the    
  date of the enactment of this Act.                                      
    (c)  Definitions.--In this section:                                   

       (1) The term ``uniformed services voting assistance legislative     
   recommendation'' means a recommendation of the Presidential designee for
   a modification in the laws of a State for the purpose of improving the  
   access to the polls of absent uniformed services voters and overseas    
   voters.                                                                 
       (2) The term ``Presidential designee'' means the head of the        
   executive department designated by the President under section 101(a) of
   the Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C.      
   1973ff(a)).                                                             
       (3) The term ``State'' includes the District of Columbia, the       
   Commonwealth of Puerto Rico, Guam, the Virgin Islands, and American     
   Samoa.                                                                  
       (4) The term ``Member of Congress'' includes a Delegate or Resident 
   Commissioner to the Congress.                                           

                    SEC. 1606. SIMPLIFICATION OF VOTER REGISTRATION AND ABSENTEE  
          BALLOT APPLICATION PROCEDURES FOR ABSENT UNIFORMED SERVICES AND OVERSEAS
          VOTERS.                                                                 
     (a) Requirement for States To Accept Official Form for Simultaneous  
  Voter Registration and Absentee Ballot Application.--                   
       (1) In general.--Section 102 of the Uniformed and Overseas Citizens 
   Absentee Voting Act (42 U.S.C. 1973ff 1) is amended--                   
     (A) in paragraph (2)--                                                

     (i) by striking ``general, special, primary, or runoff'';             

       (ii) by inserting ``and absentee ballot application'' after ``voter 
   registration application'';                                             
     (iii) by striking ``and'' after the semicolon at the end;             

       (B) by striking the period at the end of paragraph (3) and inserting
   ``; and''; and                                                          
     (C) by adding at the end the following new paragraph:                 

       ``(4) use the official post card form (prescribed under section 101)
   for simultaneous voter registration application and absentee ballot     
   application.''.                                                         
       (2) Conforming amendment.--Section 101(b)(2) of such Act (42 U.S.C. 
   1973ff(b)(2)) is amended by striking ``as recommended in section 104''  
   and inserting ``as required under section 102(4)''.                     
     (b) Use of Single Application for All Subsequent Elections.--Section 
  104 of such Act (42 U.S.C. 1973ff 3) is amended to read as follows:     
          ``SEC. 104. USE OF SINGLE APPLICATION FOR ALL SUBSEQUENT ELECTIONS.     

     ``(a) In General.--If a State accepts and processes an official post 
  card form (prescribed under section 101) submitted by an absent         
  uniformed services voter or overseas voter for simultaneous voter       
  registration and absentee ballot application (in accordance with section
  102(a)(4)) and the voter requests that the application be considered an 
  application for an absentee ballot for each subsequent election for     
  Federal office held in the State during that year, the State shall      
  provide an absentee ballot to the voter for each subsequent election for
  Federal office held in the State during that year.                      
     ``(b) Exception for Voters Changing Registration.--Subsection (a)    
  shall not apply with respect to a voter registered to vote in a State   
  for any election held after the voter notifies the State that the voter 
  no longer wishes to be registered to vote in the State or after the     
  State determines that the voter has registered to vote in another State.
     ``(c) Revision of Official Post Card Form.--The Presidential designee
  shall revise the official post card form (prescribed under section 101) 
  to enable a voter using the form to--                                   
       ``(1) request an absentee ballot for each election for Federal      
   office held in a State during a year; or                                
       ``(2) request an absentee ballot for only the next scheduled        
   election for Federal office held in a State.                            
     ``(d) No Effect on Voter Removal Programs.--Nothing in this section  
  may be construed to prevent a State from removing any voter from the    
  rolls of registered voters in the State under any program or method     
  permitted under section 8 of the National Voter Registration Act of     
  1993.''.                                                                

                    SEC. 1607. USE OF CERTAIN DEPARTMENT OF DEFENSE FACILITIES AS 
          POLLING PLACES.                                                         

     (a) Use of Military Facilities.--Section 2670 of title 10, United    
  States Code, is amended by adding at the end the following new          
  subsection:                                                             
     ``(b) Use of Certain Facilities as Polling Places.--(1)              
  Notwithstanding chapter 29 of title 18 (including sections 592 and 593  
  of such title) or any other provision of law, the Secretary of Defense  
  or Secretary of a military department may not (except as provided in    
  paragraph (3)) prohibit the designation or use of a qualifying facility 
  under the jurisdiction of the Secretary as an official polling place for
  local, State, or Federal elections.                                     
     ``(2) A Department of Defense facility is a qualifying facility for  
  purposes of this subsection if as of December 31, 2000--                
       ``(A) the facility is designated as an official polling place by a  
   State or local election official; or                                    
       ``(B) the facility has been used as such an official polling place  
   since January 1, 1996.                                                  
     ``(3) The limitation in paragraph (1) may be waived by the Secretary 
  of Defense or Secretary of the military department concerned with       
  respect to a particular Department of Defense facility if the Secretary 
  of Defense or Secretary concerned determines that local security        
  conditions require prohibition of the designation or use of that        
  facility as an official polling place for any election.''.              
     (b) Conforming and Clerical Amendments.--(1) Such section is further 
  amended--                                                               
       (A) by striking ``Under'' and inserting ``(a) Use by Red            
   Cross.--Under''; and                                                    
     (B) by striking ``this section'' and inserting ``this subsection''.   

    (2) The heading of such section is amended to read as follows:        

                    ``2670. Military installations: use by American National Red  
          Cross; use as polling places''.                                         
     (3) The item relating to such section in the table of sections at the
  beginning of chapter 159 of such title is amended to read as follows:   


            ``2670. Military installations: use by American National Red      
      Cross; use as polling places.''.                                        

           DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS                        

          SEC. 2001. SHORT TITLE; DEFINITION.                                     

     (a) Short Title.--This division may be cited as the ``Military       
  Construction Authorization Act for Fiscal Year 2002''.                  
     (b) Definition of Fiscal Year 2001 Defense Authorization Act.--In    
  this division, the term ``Spence Act'' means the Floyd D. Spence        
  National Defense Authorization Act for Fiscal Year 2001, as enacted into
  law by Public Law 106 398 (114 Stat. 1654).                             
           TITLE XXI--ARMY                                                         


      Sec. 2101. Authorized Army construction and land acquisition projects.  

      Sec. 2102. Family housing.                                              

      Sec. 2103. Improvements to military family housing units.               

      Sec. 2104. Authorization of appropriations, Army.                       

            Sec. 2105. Modification of authority to carry out certain fiscal  
      year 2001 projects.                                                     
            Sec. 2106. Modification of authority to carry out certain fiscal  
      year 2000 projects.                                                     

          SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.  

     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2104(a)(1), the Secretary
  of the Army may acquire real property and carry out military            
  construction projects for the installations and locations inside the    
  United States, and in the amounts, set forth in the following table:    

                           Army: Inside the United States                         

 State                    Installation or location                             Amount  

Alabama                  Anniston Army Depot                               $5,150,000  
                            Fort Rucker                                      $18,200,000  
                            Redstone Arsenal                                  $9,900,000  
Alaska                   Fort Richardson                                 $115,000,000  
                            Fort Wainwright                                  $27,200,000  
Arizona                  Fort Huachuca                                     $6,100,000  
                            Yuma Proving Ground                               $3,100,000  
California               Defense Language Institute                        $5,900,000  
                            Fort Irwin                                       $23,000,000  
Colorado                 Fort Carson                                      $66,000,000  
District of Columbia     Fort McNair                                      $11,600,000  
Georgia                  Fort Benning                                     $23,900,000  
                            Fort Gillem                                      $34,600,000  
                            Fort Gordon                                      $34,000,000  
                            lFort Stewart/Hunter Army Air Field              $39,800,000  
Hawaii                   lKahuku Windmill Site                               $900,000  
                            lNavy Public Works Center, Pearl Harbor          $11,800,000  
                            lPohakuloa Training Facility                      $6,600,000  
                            Wheeler Army Air Field                           $50,000,000  
Illinois                 Rock Island Arsenal                               $3,500,000  
Kansas                   Fort Riley                                       $10,900,000  
Kentucky                 Fort Campbell                                    $88,900,000  
                            Fort Knox                                        $12,000,000  
Louisiana                Fort Polk                                        $21,200,000  
Maryland                 Aberdeen Proving Ground                          $58,300,000  
                            Fort Meade                                       $11,200,000  
Missouri                 Fort Leonard Wood                                 $7,850,000  
New Jersey               Fort Monmouth                                    $20,000,000  
                            Picatinny Arsenal                                $10,200,000  
New Mexico               White Sands Missile Range                         $7,600,000  
New York                 Fort Drum                                        $56,350,000  
North Carolina           Fort Bragg                                       $21,300,000  
                            lSunny Point Military Ocean Terminal             $11,400,000  
Oklahoma                 Fort Sill                                         $5,100,000  
South Carolina           Fort Jackson                                     $65,650,000  
Texas                    Corpus Christi Army Depot                        $10,400,000  
                            Fort Sam Houston                                  $2,250,000  
                            Fort Bliss                                        $5,000,000  
                            Fort Hood                                       $104,200,000  
Virginia                 Fort Belvoir                                     $35,950,000  
                            Fort Eustis                                      $34,650,000  
                            Fort Lee                                         $23,900,000  
Washington               Fort Lewis                                      $238,200,000  
                                                                     ----------------  
xl                        Total:                                       $1,358,750,000  


     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2104(a)(2), the       
  Secretary of the Army may acquire real property and carry out military  
  construction projects for the locations outside the United States, and  
  in the amounts, set forth in the following table:                       

                         Army: Outside the United States                       

 Country       Installation or location                  Amount  

Germany       lArea Support Group, Bamberg          $36,000,000  
                 lArea Support Group, Darmstadt        $13,500,000  
                 Baumholder                             $9,000,000  
                 Hanau                                  $7,200,000  
                 Heidelberg                            $15,300,000  
                 Mannheim                              $16,000,000  
                 Wiesbaden Air Base                    $26,300,000  
Japan         Camp Schab                             $3,800,000  
Korea         Camp Carroll                          $16,593,000  
                 Camp Casey                             $8,500,000  
                 Camp Hovey                            $35,750,000  
                 Camp Humphreys                        $14,500,000  
                 Camp Jackson                           $6,100,000  
                 Camp Stanley                          $28,000,000  
                 Camp Yongsan                          $12,800,000  
Kwajalein     Kwajalein Atoll                       $11,000,000  
                                                 --------------  
xl             Total:                              $260,343,000  


     (c) Unspecified Worldwide.--Using amounts appropriated pursuant to   
  the authorization of appropriations in section 2104(a)(3), the Secretary
  of the Army may acquire real property and carry out military            
  construction projects for the installation and location, and in the     
  amount, set forth in the following table:                               

                           Army: Unspecified Worldwide                         

 Location                  Installation                Amount  

Unspecified Worldwide     Classified Location      $4,000,000  


          SEC. 2102. FAMILY HOUSING.                                              

     (a) Construction and Acquisition.--Using amounts appropriated        
  pursuant to the authorization of appropriations in section              
  2104(a)(6)(A), the Secretary of the Army may construct or acquire family
  housing units (including land acquisition) at the installations, for the
  purposes, and in the amounts set forth in the following table:          

                              Army: Family Housing                             

 State or Country     Installation or location     Purpose            Amount  

Alaska               Fort Wainwright              32 Units       $12,000,000  
Arizona              Fort Huachuca                72 Units       $10,800,000  
Kansas               Fort Leavenworth             80 Units       $20,000,000  
Texas                Fort Bliss                   76 Units       $13,600,000  
 xl                  lFort Sam Houston            80 Units       $11,200,000  
Korea                Camp Humphreys               54 Units       $12,800,000  
                                                               -------------  
xl                   xl                            Total:        $80,400,000  


     (b) Planning and Design.--Using amounts appropriated pursuant to the 
  authorization of appropriations in section 2104(a)(6)(A), the Secretary 
  of the Army may carry out architectural and engineering services and    
  construction design activities with respect to the construction or      
  improvement of family housing units in an amount not to exceed          
  $11,592,000.                                                            
          SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               

     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriations in 
  section 2104(a)(6)(A), the Secretary of the Army may improve existing   
  military family housing units in an amount not to exceed $220,750,000.  
          SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.                       

     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 2001, for military           
  construction, land acquisition, and military family housing functions of
  the Department of the Army in the total amount of $3,155,594,000, as    
  follows:                                                                
       (1) For military construction projects inside the United States     
   authorized by section 2101(a), $1,127,750,000.                          
       (2) For military construction projects outside the United States    
   authorized by section 2101(b), $260,343,000.                            
       (3) For a military construction project at an unspecified worldwide 
   location authorized by section 2101(c), $4,000,000.                     
       (4) For unspecified minor construction projects authorized by       
   section 2805 of title 10, United States Code, $18,000,000.              
       (5) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $159,533,000.
     (6) For military family housing functions:                            

       (A) For construction and acquisition, planning and design, and      
   improvement of military family housing and facilities, $312,742,000.    
       (B) For support of military family housing (including the functions 
   described in section 2833 of title 10, United States Code),             
   $1,089,573,000.                                                         
       (7) For the construction of a cadet development center at the United
   States Military Academy, West Point, New York, authorized by section    
   2101(a) of the Military Construction Authorization Act for Fiscal Year  
   1999 (division B of Public Law 105 261; 112 Stat. 2182), $37,900,000.   
       (8) For the construction of phase 2C of a barracks complex, Tagaytay
   Street, at Fort Bragg, North Carolina, authorized by section 2101(a) of 
   the Military Construction Authorization Act for Fiscal Year 2000        
   (division B of Public Law 106 65; 113 Stat. 825), $17,500,000.          
       (9) For the construction of phase 1C of a barracks complex, Wilson  
   Street, at Schofield Barracks, Hawaii, authorized by section 2101(a) of 
   the Military Construction Authorization Act for Fiscal Year 2000        
   (division B of Public Law 106 65; 113 Stat. 825), $23,000,000.          
       (10) For construction of phase 2 of a basic combat training complex 
   at Fort Leonard Wood, Missouri, authorized by section 2101(a) of the    
   Military Construction Authorization Act for Fiscal Year 2001 (division B
   of the Spence Act; 114 Stat. 1654A 389), as amended by section 2105 of  
   this Act, $27,000,000.                                                  
       (11) For the construction of phase 2 of a battle simulation center  
   at Fort Drum, New York, authorized by section 2101(a) of the Military   
   Construction Authorization Act for Fiscal Year 2001 (division B of the  
   Spence Act; 114 Stat. 1654A 389), as amended by section 2105 of this    
   Act, $9,000,000.                                                        
       (12) For the construction of phase 1 of a barracks complex, Butner  
   Road, at Fort Bragg, North Carolina, authorized by section 2101(a) of   
   the Military Construction Authorization Act for Fiscal Year 2001        
   (division B of the Spence Act; 114 Stat. 1654A 389), $49,000,000.       
       (13) For the construction of phase 1 of a barracks complex,         
   Longstreet Road, at Fort Bragg, North Carolina, authorized by section   
   2101(a) of the Military Construction Authorization Act for Fiscal Year  
   2001 (division B of the Spence Act; 114 Stat. 1654A 389), $27,000,000.  

       (14) For the construction of a multipurpose digital training range  
   at Fort Hood, Texas, authorized by section 2101(a) of the Military      
   Construction Authorization Act for Fiscal Year 2001 (division B of the  
   Spence Act; 114 Stat. 1654A 389), as amended by section 2105 of this    
   Act, $13,000,000.                                                       
       (15) For the homeowners assistance program, as authorized by section
   2832(a) of title 10, United States Code, $10,119,000, to remain         
   available until expended.                                               
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2101 of this Act may not exceed--                               
       (1) the total amount authorized to be appropriated under paragraphs 
   (1), (2), and (3) of subsection (a);                                    
       (2) $52,000,000 (the balance of the amount authorized under section 
   2201(a) for construction of a barracks complex, D Street, at Fort       
   Richardson, Alaska);                                                    
       (3) $41,000,000 (the balance of the amount authorized under section 
   2201 (a) for construction of phase 1 of a barracks complex, Nelson      
   Boulevard, at Fort Carson, Colorado);                                   
       (4) $36,000,000 (the balance of the amount authorized under section 
   2201(a) for construction of phase 1 of a basic combat training complex  
   at Fort Jackson, South Carolina); and                                   
       (5) $102,000,000 (the balance of the amount authorized under section
   2201(a) for construction of a barracks complex, 17th & B Streets, at    
   Fort Lewis, Washington).                                                
     (c) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1) through (15) of subsection (a) is the sum of 
  the amounts authorized to be appropriated in such paragraphs, reduced by
  $29,866,000, which represents the combination of savings resulting from 
  adjustments to foreign currency exchange rates for military             
  construction, military family housing construction, and military family 
  housing support outside the United States and savings resulting from    
  favorable bids, reduced overhead charges, and cancellations due to force
  structure changes.                                                      
                    SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 2001 PROJECTS.                                              
     (a) Modification.--The table in section 2101(a) of the Military      
  Construction Authorization Act for Fiscal Year 2001 (division B of the  
  Spence Act; 114 Stat. 1654A 389) is amended--                           
       (1) in the item relating to Fort Leonard Wood, Missouri, by striking
   ``$65,400,000'' in the amount column and inserting ``$69,800,000'';     
       (2) in the item relating to Fort Drum, New York, by striking        
   ``$18,000,000'' in the amount column and inserting ``$21,000,000'';     
       (3) in the item relating to Fort Hood, Texas, by striking           
   ``$36,492,000'' in the amount column and inserting ``$39,492,000''; and 
       (4) by striking the amount identified as the total in the amount    
   column and inserting ``$626,374,000''.                                  
     (b) Conforming Amendments.--Section 2104 of that Act (114 Stat. 1654A
  391) is amended--                                                       
       (1) in subsection (a), in the matter preceding paragraph (1), by    
   striking ``$1,925,344,000'' and inserting ``$1,935,744,000''; and       
     (2) in subsection (b)--                                               

       (A) in paragraph (2), by striking ``$22,600,000'' and inserting     
   ``$27,000,000'';                                                        
       (B) in paragraph (3), by striking ``$10,000,000'' and inserting     
   ``$13,000,000''; and                                                    
       (C) in paragraph (6), by striking ``$6,000,000'' and inserting      
   ``$9,000,000''.                                                         
                    SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 2000 PROJECTS.                                              
     Section 2104 of the Military Construction Authorization Act for      
  Fiscal Year 2000 (division B of Public Law 106 65; 113 Stat. 826), as   
  amended by section 2105(c) of the Spence Act; 114 Stat. 1654A 393), is  
  amended --                                                              
     (1) in subsection (a)--                                               

       (A) in the matter preceding paragraph (1), by striking              
   ``$2,358,331,000'' and inserting ``$2,321,931,000''; and                
       (B) in paragraph (1), by striking ``$930,058,000'' and inserting    
   ``$893,658,000''; and                                                   
       (2) in subsection (b)(7), by striking ``$102,500,000'' and inserting
   ``$138,900,000''.                                                       

           TITLE XXII--NAVY                                                        


      Sec. 2201. Authorized Navy construction and land acquisition projects.  

      Sec. 2202. Family housing.                                              

      Sec. 2203. Improvements to military family housing units.               

      Sec. 2204. Authorization of appropriations, Navy.                       

            Sec. 2205. Modification of authority to carry out certain fiscal  
      year 2001 projects.                                                     
            Sec. 2206. Modification of authority to carry out certain fiscal  
      year 2000 project.                                                      

          SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.  

     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2204(a)(1), the Secretary
  of the Navy may acquire real property and carry out military            
  construction projects for the installations and locations inside the    
  United States, and in the amounts, set forth in the following table:    

                                        Navy: Inside the United States                                       

 State                    Installation or location                                                        Amount  

Arizona                  lMarine Corps Air Station, Yuma                                             $22,570,000  
California               lMarine Air-Ground Task Force Training Center, Twentynine Palms             $75,125,000  
 xl                      lMarine Corps Air Station, Camp Pendleton                                    $4,470,000  
 xl                      lMarine Corps Base, Camp Pendleton                                          $96,490,000  
 xl                      lNaval Air Facility, El Centro                                              $23,520,000  
 xl                      lNaval Air Station, Lemoore                                                 $10,010,000  
 xl                      lNaval Air Warfare Center, China Lake                                       $30,200,000  
 xl                      lNaval Air Warfare Center, Point Mugu, San Nicholas Island                  $13,730,000  
 xl                      lNaval Amphibious Base, Coronado                                             $8,610,000  
 xl                      lNaval Construction Battalion Center, Port Hueneme                          $12,400,000  
 xl                      lNaval Construction Training Center, Port Hueneme                            $3,780,000  
 xl                      Naval Station, San Diego                                                    $47,240,000  
District of Columbia     lNaval Air Facility, Washington                                              $9,810,000  
Florida                  Naval Air Station, Key West                                                 $11,400,000  
 xl                      lNaval Air Station, Whiting Field, Milton                                    $2,140,000  
 xl                      Naval Station, Mayport                                                      $16,420,000  
 xl                      Naval Station, Pensacola                                                     $3,700,000  
Hawaii                   lMarine Corps Base, Kaneohe                                                 $24,920,000  
 xl                      Naval Magazine Lualualei                                                     $6,000,000  
 xl                      Naval Shipyard, Pearl Harbor                                                $20,000,000  
 xl                      Naval Station, Pearl Harbor                                                 $54,700,000  
 xl                      lNavy Public Works Center, Pearl Harbor                                     $16,900,000  
Illinois                 lNaval Training Center, Great Lakes                                         $82,260,000  
Indiana                  lNaval Surface Warfare Center, Crane                                        $14,930,000  
Maine                    Naval Air Station, Brunswick                                                $67,395,000  
 xl                      lNaval Shipyard, Portsmouth                                                 $14,620,000  
Maryland                 lNaval Air Warfare Center, Patuxent River                                    $2,260,000  
 xl                      lNaval Air Warfare Center, St. Inigoes                                       $5,100,000  
 xl                      lNaval Explosive Ordinance Disposal Technology Center, Indian Head           $1,250,000  
Mississippi              Naval Air Station, Meridian                                                  $3,370,000  
 xl                      lNaval Construction Battalion Center, Gulfport                              $21,660,000  
 xl                      lNaval Station, Pascaguola                                                   $4,680,000  
Missouri                 lMarine Corps Support Activity, Kansas City                                  $9,010,000  
Nevada                   lNaval Air Station, Fallon                                                   $6,150,000  
New Jersey               lNaval Weapons Station, Earle                                                $4,370,000  
North Carolina           lMarine Corps Air Station, New River                                         $4,050,000  
 xl                      lMarine Corps Base, Camp Lejeune                                            $67,070,000  
Pennsylvania             lNaval Foundry and Propeller Center, Philadelphia                           $14,800,000  
Rhode Island             Naval Station, Newport                                                      $15,290,000  
 xl                      lNaval Underwater Warfare Center, Newport                                    $9,370,000  
South Carolina           lMarine Corps Air Station, Beaufort                                          $8,020,000  
 xl                      lMarine Corps Recruit Depot, Parris Island                                   $5,430,000  
Tennessee                lNaval Support Activity, Millington                                          $3,900,000  
Virginia                 lMarine Corps Air Facility, Quantico                                         $3,790,000  
 xl                      lMarine Corps Combat Dev Com                                                 $9,390,000  
 xl                      lNaval Amphibious Base, Little Creek                                         $9,090,000  
 xl                      Naval Station, Norfolk                                                     $139,270,000  
Washington               lNaval Air Station, Whidbey Island                                           $7,370,000  
 xl                      lNaval Station, Everett                                                      $6,820,000  
 xl                      lStrategic Weapons Facility, Bangor                                          $3,900,000  
                                                                                                ----------------  
xl                        Total:                                                                  $1,058,750,000  


     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2204(a)(2), the       
  Secretary of the Navy may acquire real property and carry out military  
  construction projects for the locations outside the United States, and  
  in the amounts, set forth in the following table:                       


                            Navy: Outside the United States                           

 Country     Installation or location                                              Amount  

Greece      lNaval Support Activity Joint Headquarters Command, Larissa       $12,240,000  
 xl         lNaval Support Activity, Souda Bay                                 $3,210,000  
Guam        Naval Station, Guam                                                $9,300,000  
 xl         Navy Public Works Center, Guam                                    $14,800,000  
Iceland     Naval Air Station, Keflavik                                        $2,820,000  
Italy       Naval Air Station, Sigonella                                       $3,060,000  
Spain       Naval Station, Rota                                                $2,240,000  
                                                                            -------------  
xl           Total:                                                           $47,670,000  


          SEC. 2202. FAMILY HOUSING.                                              

     (a) Construction and Acquisition.--Using amounts appropriated        
  pursuant to the authorization of appropriations in section              
  2204(a)(5)(A), the Secretary of the Navy may construct or acquire family
  housing units (including land acquisition) at the installations, for the
  purposes, and in the amounts set forth in the following table:          

                                            Navy: Family Housing                                           

 State           Installation or location                                            Purpose              Amount  

Arizona         lMarine Corps Air Station, Yuma                                     51 Units          $9,017,000  
California      lMarine Air-Ground Task Force Training Center, Twentynine Palms     74 Units         $16,250,000  
Hawaii          lMarine Corps Base, Kaneohe                                         172 Units        $46,996,000  
 xl             lNaval Station, Pearl Harbor                                        70 Units         $16,827,000  
Mississippi     lNaval Construction Battalion Center, Gulfport                      160 Units        $23,354,000  
Virginia        lMarine Corps Combat Development Command, Quantico                  60 Units          $7,000,000  
Italy           lNaval Air Station, Sigonella                                       10 Units          $2,403,000  
                                                                                                  --------------  
xl              xl                                                                   Total:         $121,847,000  


     (b) Planning and Design.--Using amounts appropriated pursuant to the 
  authorization of appropriations in section 2204(a)(5)(A), the Secretary 
  of the Navy may carry out architectural and engineering services and    
  construction design activities with respect to the construction or      
  improvement of military family housing units in an amount not to exceed 
  $6,499,000.                                                             
          SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               

     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriations in 
  section 2204(a)(5)(A), the Secretary of the Navy may improve existing   
  military family housing units in an amount not to exceed $203,434,000.  
          SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.                       

     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 2001, for military           
  construction, land acquisition, and military family housing functions of
  the Department of the Navy in the total amount of $2,366,742,000, as    
  follows:                                                                
       (1) For military construction projects inside the United States     
   authorized by section 2201(a), $1,005,410,000.                          
       (2) For military construction projects outside the United States    
   authorized by section 2201(b), $47,670,000.                             
       (3) For unspecified minor construction projects authorized by       
   section 2805 of title 10, United States Code, $10,546,000.              
       (4) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $39,557,000. 
     (5) For military family housing functions:                            

       (A) For construction and acquisition, planning and design, and      
   improvement of military family housing and facilities, $331,780,000.    
       (B) For support of military housing (including functions described  
   in section 2833 of title 10, United States Code), $910,095,000.         
       (6) For construction of phase 6 of a large anachoic chamber facility
   at the Patuxent River Naval Air Warfare Center, Maryland, authorized by 
   section 2201(a) of the Military Construction Authorization Act for      
   Fiscal Year 1993 (division B of Public Law 102 484; 106 Stat. 2590),    
   $10,770,000.                                                            
       (7) For construction of the Commander-in-Chief Headquarters, Pacific
   Command, Camp H.M. Smith, Hawaii, authorized by section 2201(a) of the  
   Military Construction Authorization Act for Fiscal Year 2000 (division B
   of Public Law 106 65; 113 Stat. 828), as amended by section 2206 of this
   Act, $37,580,000.                                                       
       (8) For repair of a pier at Naval Station, San Diego, California,   
   authorized by section 2201(a) of the Military Construction Authorization
   Act for Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A 
   396), $17,500,000.                                                      
       (9) For replacement of a pier at Naval Station, Bremerton,          
   Washington, formerly Naval Shipyard, Bremerton, Puget Sound, Washington,
   authorized by section 2201(a) of the Military Construction Authorization
   Act for Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A 
   396), as amended by section 2205 of this Act, $24,460,000.              
       (10) For construction of an industrial skills center at Puget Sound 
   Naval Shipyard, Bremerton, Washington, formerly Naval Shipyard,         
   Bremerton, Puget Sound, Washington, authorized by section 2201(a) of the
   Military Construction Authorization Act for Fiscal Year 2001 (division B
   of the Spence Act; 114 Stat. 1654A 396), as amended by section 2205 of  
   this Act, $14,000,000.                                                  
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2201 of this Act may not exceed--                               
       (1) the total amount authorized to be appropriated under paragraphs 
   (1) and (2) of subsection (a);                                          
       (2) $33,240,000 (the balance of the amount authorized under section 
   2201(a) for replacement of a pier, increment I, at Naval Station,       
   Norfolk, Virginia); and                                                 
       (3) $20,100,000 (the balance of the amount authorized under section 
   2201(a) for a combined propulsion and explosives lab at Naval Air       
   Warfare Center, China Lake, California).                                
     (c) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1) through (10) of subsection (a) is the sum of 
  the amounts authorized to be appropriated in such paragraphs, reduced by
  $82,626,000, which represents the combination of savings resulting from 
  adjustments to foreign currency exchange rates for military             
  construction, military family housing construction, and military family 
  housing support outside the United States and savings resulting from    
  favorable bids, reduced overhead charges, and cancellations due to force
  structure changes.                                                      
                    SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 2001 PROJECTS.                                              
     (a) Authorized Construction and Land Acquisition.--The table in      
  section 2201(a) of the Military Construction Authorization Act for      
  Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A 395) is 
  amended--                                                               
       (1) in the item relating to Naval Shipyard, Bremerton, Puget Sound, 
   Washington, by striking ``$100,740,000'' in the amount column and       
   inserting ``$102,460,000'';                                             
       (2) in the item relating to Naval Station, Bremerton, Washington, by
   striking ``$11,930,000'' in the amount column and inserting             
   ``$1,930,000''; and                                                     
       (3) by striking the amount identified as the total in the amount    
   column and inserting ``$803,217,000''.                                  
     (b) Planning and Design.--Section 2204(a) of that Act (114 Stat.     
  1654A 398) is amended--                                                 
       (1) in the matter preceding paragraph (1), by striking              
   ``$2,227,995,000'' and inserting ``$2,208,407,000''; and                
       (2) in paragraph (4), by striking ``$73,335,000'' and inserting     
   ``$53,747,000''.                                                        
     (c) Conforming Amendment.--Section 2204(b)(4) of that Act (114 Stat. 
  1654A 398) is amended by striking ``$10,280,000'' and inserting         
  ``$14,000,000''.                                                        
                    SEC. 2206. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 2000 PROJECT.                                               
     (a) Modification.--The table in section 2201(a) of the Military      
  Construction Authorization Act for Fiscal Year 2000 (division B of      
  Public Law 106 65; 113 Stat. 828) is amended--                          
       (1) in the item relating to Camp H.M. Smith, Hawaii, by striking    
   ``$86,050,000'' in the amount column and inserting ``$89,050,000''; and 
       (2) by striking the amount identified as the total in the amount    
   column and inserting ``$820,230,000''.                                  
     (b) Conforming Amendment.--Section 2204(b)(3) of that Act (113 Stat. 
  831) is amended by striking ``$70,180,000'' and inserting               
  ``$73,180,000''.                                                        

           TITLE XXIII--AIR FORCE                                                  



            Sec. 2301. Authorized Air Force construction and land acquisition 
      projects.                                                               
      Sec. 2302. Family housing.                                              

      Sec. 2303. Improvements to military family housing units.               

      Sec. 2304. Authorization of appropriations, Air Force.                  

            Sec. 2305. Modification of authority to carry out certain fiscal  
      year 2001 projects.                                                     

                    SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND         
          ACQUISITION PROJECTS.                                                   
     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2304(a)(1), the Secretary
  of the Air Force may acquire real property and carry out military       
  construction projects for the installations and locations inside the    
  United States, and in the amounts, set forth in the following table:    


                       Air Force: Inside the United States                     

 State                    Installation or location                     Amount  

Alabama                  Maxwell Air Force Base                   $34,400,000  
Alaska                   Eareckson Air Force Base                  $4,600,000  
                            Elmendorf Air Force Base                 $32,200,000  
Arizona                  lDavis-Monthan Air Force Base            $23,500,000  
                            Luke Air Force Base                       $4,500,000  
Arkansas                 lLittle Rock Air Force Base              $18,100,000  
California               Beale Air Force Base                      $7,900,000  
                            Edwards Air Force Base                   $16,300,000  
                            Los Angeles Air Force Base               $23,000,000  
                            Travis Air Force Base                    $10,100,000  
                            Vandenberg Air Force Base                $11,800,000  
Colorado                 lBuckley Air Force Base                  $23,200,000  
                            Schriever Air Force Base                 $30,400,000  
                            lUnited States Air Force Academy         $25,500,000  
Delaware                 Dover Air Force Base                      $7,300,000  
District of Columbia     Bolling Air Force Base                    $2,900,000  
Florida                  lCape Canaveral Air Force Station         $7,800,000  
                            Eglin Air Force Base                     $11,400,000  
                            Hurlburt Field                           $10,400,000  
                            Tyndall Air Force Base                   $20,350,000  
Georgia                  Moody Air Force Base                      $8,600,000  
                            Robins Air Force Base                    $14,650,000  
Idaho                    lMountain Home Air Force Base            $14,600,000  
Kansas                   McConnell Air Force Base                  $5,100,000  
Louisiana                Barksdale Air Force Base                  $5,000,000  
Maryland                 Andrews Air Force Base                   $19,420,000  
Massachusetts            Hanscom Air Force Base                    $9,400,000  
Mississippi              Columbus Air Force Base                   $5,000,000  
                            Keesler Air Force Base                   $28,600,000  
Montana                  Malmstrom Air Force Base                  $4,650,000  
Nevada                   Nellis Air Force Base                    $31,600,000  
New Jersey               McGuire Air Force Base                   $36,550,000  
New Mexico               Cannon Air Force Base                     $9,400,000  
                            Kirtland Air Force Base                  $19,800,000  
North Carolina           Pope Air Force Base                      $17,800,000  
North Dakota             Grand Forks Air Force Base                $7,800,000  
Ohio                     lWright-Patterson Air Force Base         $28,250,000  
Oklahoma                 Altus Air Force Base                     $20,200,000  
                            Tinker Air Force Base                    $21,400,000  
South Carolina           Shaw Air Force Base                       $5,800,000  
South Dakota             Ellsworth Air Force Base                 $12,200,000  
Tennessee                Arnold Air Force Base                    $24,400,000  
Texas                    Dyess Air Force Base                     $16,800,000  
                            Lackland Air Force Base                  $12,800,000  
                            Laughlin Air Force Base                  $15,600,000  
                            Sheppard Air Force Base                  $45,200,000  
Utah                     Hill Air Force Base                      $44,000,000  
Virginia                 Langley Air Force Base                   $47,300,000  
Washington               Fairchild Air Force Base                  $2,800,000  
                            McChord Air Force Base                   $20,700,000  
Wyoming                  F. E. Warren Air Force Base              $10,200,000  
                                                               --------------  
xl                        Total:                                 $891,270,000  


     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2304(a)(2), the       
  Secretary of the Air Force may acquire real property and carry out      
  military construction projects for the installations and locations      
  outside the United States, and in the amounts, set forth in the         
  following table:                                                        

                      Air Force: Outside the United States                     

 Country            Installation or location               Amount  

Germany            Ramstein Air Force Base            $42,900,000  
                      Spangdahlem Air Base                $8,700,000  
Guam               Andersen Air Force Base            $10,150,000  
Italy              Aviano Air Base                    $11,800,000  
Korea              Kunsan Air Base                    $12,000,000  
                      Osan Air Base                     $101,142,000  
Oman               Masirah                             $8,000,000  
Turkey             Eskisehir                           $4,000,000  
                      Incirlik                            $5,500,000  
United Kingdom     Royal Air Force, Lakenheath        $11,300,000  
                      Royal Air Force, Mildenhall        $22,400,000  
Wake Island        Wake Island                        $25,000,000  
                                                   --------------  
xl                  Total:                           $262,892,000  


     (c) Unspecified Worldwide.--Using the amounts appropriated pursuant  
  to the authorization of appropriations in section 2304(a)(3), the       
  Secretary of the Air Force may acquire real property and carry out      
  military construction projects for the installation and location, and in
  the amount, set forth in the following table:                           


                        Air Force: Unspecified Worldwide                       

 Location                  Installation                 Amount  

Unspecified Worldwide     Classified Location       $4,458,000  


          SEC. 2302. FAMILY HOUSING.                                              

     (a) Construction and Acquisition.--Using amounts appropriated        
  pursuant to the authorization of appropriations in section              
  2304(a)(6)(A), the Secretary of the Air Force may construct or acquire  
  family housing units (including land acquisition) at the installations, 
  for the purposes, and in the amounts set forth in the following table:  


                             Air Force: Family Housing                            

 State                    Installation or location          Purpose              Amount  

Arizona                  Luke Air Force Base               120 Units        $15,712,000  
California               Travis Air Force Base             118 Units        $18,150,000  
Colorado                 Buckley Air Force Base            55 Units         $11,400,000  
Delaware                 Dover Air Force Base              120 Units        $18,145,000  
District of Columbia     Bolling Air Force Base            136 Units        $16,926,000  
Hawaii                   Hickam Air Force Base             102 Units        $25,037,000  
Idaho                    lMountain Home Air Force Base     56 Units         $10,000,000  
Louisiana                lBarksdale Air Force Base         56 Units          $7,300,000  
South Dakota             lEllsworth Air Force Base         78 Units         $13,700,000  
Virginia                 Langley Air Force Base            4 Units           $1,200,000  
Portugal                 Lajes Field, Azores               64 Units         $13,230,000  
                                                                         --------------  
xl                       xl                                 Total:         $150,800,000  


     (b) Planning and Design.--Using amounts appropriated pursuant to the 
  authorization of appropriations in section 2304(a)(6)(A), the Secretary 
  of the Air Force may carry out architectural and engineering services   
  and construction design activities with respect to the construction or  
  improvement of military family housing units in an amount not to exceed 
  $24,558,000.                                                            
          SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               

     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriations in 
  section 2304(a)(6)(A), the Secretary of the Air Force may improve       
  existing military family housing units in an amount not to exceed       
  $375,345,000.                                                           
          SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.                  

     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 2001, for military           
  construction, land acquisition, and military family housing functions of
  the Department of the Air Force in the total amount of $2,573,122,000,  
  as follows:                                                             
       (1) For military construction projects inside the United States     
   authorized by section 2301(a), $879,270,000.                            
       (2) For military construction projects outside the United States    
   authorized by section 2301(b), $223,592,000.                            
       (3) For a military construction project at an unspecified worldwide 
   location authorized by section 2301(c), $4,458,000.                     
       (4) For unspecified minor construction projects authorized by       
   section 2805 of title 10, United States Code, $11,250,000.              
       (5) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $94,970,000. 
     (6) For military housing functions:                                   

       (A) For construction and acquisition, planning and design, and      
   improvement of military family housing and facilities, $550,703,000.    
       (B) For support of military family housing (including functions     
   described in section 2833 of title 10, United States Code),             
   $844,715,000.                                                           
       (7) $12,600,000 for construction of an air freight terminal and base
   supply complex at McGuire Air Force Base, New Jersey, authorized by     
   section 2301(a) of the Military Construction Authorization Act for      
   Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A 399), as
   amended by section 2305 of this Act.                                    
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2301 of this Act may not exceed--                               
       (1) the total amount authorized to be appropriated under paragraphs 
   (1), (2), and (3) of subsection (a);                                    
       (2) $12,000,000 (the balance of the amount authorized under section 
   2301(a) for a maintenance depot hanger at Hill Air Force Base, Utah);   
       (3) $15,300,000 (the balance of the amount authorized under section 
   2301(b) for repair of an airfield runway at Wake Island); and           
       (4) $24,000,000 (the balance of the amount authorized under section 
   2301(b) for a civil engineer complex at Osan Air Force Base, Korea).    
     (c) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1) through (7) of subsection (a) is the sum of  
  the amounts authorized to be appropriated in such paragraphs, reduced by
  $48,436,000, which represents the combination of savings resulting from 
  adjustments to foreign currency exchange rates for military             
  construction, military family housing construction, and military family 
  housing support outside the United States and savings resulting from    
  favorable bids, reduced overhead charges, and cancellations due to force
  structure changes.                                                      
                    SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 2001 PROJECTS.                                              
     (a) McGuire Air Force Base.--The table in section 2301(a) of the     
  Military Construction Authorization Act for Fiscal Year 2001 (division B
  of the Spence Act; 114 Stat. 1654A 399) is amended--                    
       (1) in the item relating to McGuire Air Force Base, New Jersey, by  
   striking ``$29,772,000'' in the amount column and inserting             
   ``$32,972,000''; and                                                    
       (2) by striking the amount identified as the total in the amount    
   column and inserting ``$748,955,000''.                                  
     (b) Mountain Home Air Force Base.--The table in section 2302(a) of   
  that Act (114 Stat. 1654A 400) is amended in the item relating to       
  Mountain Home Air Force Base, Idaho, by striking ``119 Units'' in the   
  purpose column and inserting ``46 Units''.                              
     (c) Conforming Amendment.--Section 2304(b)(2) of that Act (114 Stat. 
  1654A 402) is amended by striking ``$9,400,000'' and inserting          
  ``$12,600,000''.                                                        

           TITLE XXIV--DEFENSE AGENCIES                                            


            Sec. 2401. Authorized Defense Agencies construction and land      
      acquisition projects.                                                   
      Sec. 2402. Energy conservation projects.                                

      Sec. 2403. Authorization of appropriations, Defense Agencies.           

            Sec. 2404. Cancellation of authority to carry out certain fiscal  
      year 2001 projects.                                                     
            Sec. 2405. Modification of authority to carry out certain fiscal  
      year 2000 projects.                                                     
            Sec. 2406. Modification of authority to carry out certain fiscal  
      year 1999 projects.                                                     
            Sec. 2407. Modification of authority to carry out certain fiscal  
      year 1995 projects.                                                     
            Sec. 2408. Prohibition on expenditures to develop forward         
      operating location on Aruba.                                            

                    SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND  
          ACQUISITION PROJECTS.                                                   
     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2403(a)(1), the Secretary
  of Defense may acquire real property and carry out military construction
  projects for the installations and locations inside the United States,  
  and in the amounts, set forth in the following table:                   

                                Defense Agencies: Inside the United States                               

 Agency                                Installation or location                                       Amount  

lDefense Education Activity           lLaurel Bay, South Carolina                                $12,850,000  
xl                                    lMarine Corps Base, Camp LeJeune, North Carolina            $8,857,000  
lDefense Logistics Agency             lDefense Distribution Depot, Tracy, California             $30,000,000  
xl                                    lDefense Distribution, New Cumberland, Pennsylvania        $19,900,000  
xl                                    lEielson Air Force Base, Alaska                             $8,800,000  
xl                                    lFort Belvoir, Virginia                                       $900,000  
xl                                    lGrand Forks Air Force Base, North Dakota                   $9,110,000  
xl                                    lHickam Air Force Base, Hawaii                             $29,200,000  
xl                                    lMcGuire Air Force Base, New Jersey                         $4,400,000  
xl                                    lMinot Air Force Base, North Dakota                        $14,000,000  
xl                                    lPhiladelphia, Pennsylvania                                 $2,429,000  
xl                                    lPope Air Force Base, North Carolina                        $3,400,000  
lSpecial Operations Command           lAberdeen Proving Ground, Maryland                          $3,200,000  
xl                                    lCONUS Classified                                           $2,400,000  
xl                                    lFort Benning, Georgia                                      $5,100,000  
xl                                    lFort Bragg, North Carolina                                $33,562,000  
xl                                    lFort Lewis, Washington                                     $6,900,000  
xl                                    lHurlburt Field, Florida                                   $13,400,000  
xl                                    lMacDill Air Force Base, Florida                           $12,000,000  
xl                                    lNaval Station, San Diego, California                      $13,650,000  
lTRICARE Management Activity          lAndrews Air Force Base, Maryland                          $10,250,000  
xl                                    lDyess Air Force Base, Texas                                $3,300,000  
xl                                    lF.E. Warren Air Force Base, Wyoming                        $2,700,000  
xl                                    lFort Hood, Texas                                          $12,200,000  
xl                                    lFort Stewart/Hunter Army Air Field, Georgia               $11,000,000  
xl                                    lHolloman Air Force Base, New Mexico                        $5,700,000  
xl                                    lHurlburt Field, Florida                                    $8,800,000  
xl                                    lMarine Corps Base, Camp Pendleton, California             $15,300,000  
xl                                    lMarine Corps Logistics Base, Albany, Georgia               $5,800,000  
xl                                    lNaval Air Station, Whidbey Island, Washington              $6,600,000  
xl                                    lNaval Hospital, Twentynine Palms, California               $1,600,000  
xl                                    lNaval Station, Mayport, Florida                           $24,000,000  
xl                                    lNaval Station, Norfolk, Virginia                          $21,000,000  
xl                                    lSchriever Air Force Base, Colorado                         $4,000,000  
lWashington Headquarters Services     lPentagon Reservation, Virginia                            $25,000,000  
                                                                                              --------------  
xl                                     Total:                                                   $391,308,000  


     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2403(a)(2), the       
  Secretary of Defense may acquire real property and carry out military   
  construction projects for the installations and locations outside the   
  United States, and in the amounts, set forth in the following table:    

                         Defense Agencies: Outside the United States                       

 Agency                           Installation or location                              Amount  

lDefense Education Activity      lAviano Air Base, Italy                            $3,647,000  
 xl                              lGeilenkirchen AB, Germany                         $1,733,000  
 xl                              lHeidelberg, Germany                               $3,312,000  
 xl                              lKaiserslautern, Germany                           $1,439,000  
 xl                              lKitzingen, Germany                                $1,394,000  
 xl                              lLandstuhl, Germany                                $1,444,000  
 xl                              lRamstein Air Force Base, Germany                  $2,814,000  
 xl                              lRoyal Air Force, Feltwell, United Kingdom        $22,132,000  
 xl                              lVogelweh Annex, Germany                           $1,558,000  
 xl                              lWiesbaden Air Base, Germany                       $1,378,000  
 xl                              lWuerzburg, Germany                                $2,684,000  
lDefense Logistics Agency        lAnderson Air Force Base, Guam                    $20,000,000  
 xl                              lCamp Casey, Korea                                 $5,500,000  
 xl                              lNaval Station, Rota, Spain                        $3,000,000  
 xl                              lYokota Air Base, Japan                           $13,000,000  
lOffice Secretary of Defense     lComalapa Air Base, El Salvador                   $12,577,000  
lTRICARE Management Activity     lHeidelberg, Germany                              $28,000,000  
 xl                              lLajes Field, Azores, Portugal                     $3,750,000  
 xl                              lThule, Greenland                                 $10,800,000  
                                                                                --------------  
xl                                Total:                                          $140,162,000  


          SEC. 2402. ENERGY CONSERVATION PROJECTS.                                

     Using amounts appropriated pursuant to the authorization of          
  appropriations in section 2403(a)(6), the Secretary of Defense may carry
  out energy conservation projects under section 2865 of title 10, United 
  States Code, in the amount of $27,100,000.                              
          SEC. 2403. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.           

     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 2001, for military           
  construction, land acquisition, and military family housing functions of
  the Department of Defense (other than the military departments), in the 
  total amount of $1,481,208,000, as follows:                             
       (1) For military construction projects inside the United States     
   authorized by section 2401(a), $391,308,000.                            
       (2) For military construction projects outside the United States    
   authorized by section 2401(b), $140,162,000.                            
       (3) For unspecified minor construction projects under section 2805  
   of title 10, United States Code, $24,492,000.                           
       (4) For contingency construction projects of the Secretary of       
   Defense under section 2804 of title 10, United States Code, $10,000,000.
       (5) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $54,496,000. 
       (6) For energy conservation projects authorized by section 2402,    
   $27,100,000.                                                            
       (7) For base closure and realignment activities as authorized by the
   Defense Base Closure and Realignment Act of 1990 (part A of title XXIX  
   of Public Law 101 510; 10 U.S.C. 2687 note), $632,713,000.              
     (8) For military family housing functions:                            

       (A) For improvement of military family housing and facilities,      
   $250,000.                                                               
       (B) For support of military family housing (including functions     
   described in section 2833 of title 10, United States Code), $43,762,000,
   of which not more than $37,298,000 may be obligated or expended for the 
   leasing of military family housing units worldwide.                     
       (C) For credit to the Department of Defense Family Housing          
   Improvement Fund established by section 2883(a)(1) of title 10, United  
   States Code, $2,000,000.                                                
       (9) For the construction of phase 6 of an ammunition                
   demilitarization facility at Pine Bluff Arsenal, Arkansas, authorized by
   section 2401(a) of the Military Construction Authorization Act for      
   Fiscal Year 1995 (division B of Public Law 103 337; 108 Stat. 3040), as 
   amended by section 2407 of the Military Construction Authorization Act  
   for Fiscal Year 1996 (division B of Public Law 104 106; 110 Stat. 539), 
   section 2408 of the Military Construction Authorization Act for Fiscal  
   Year 1998 (division B of Public Law 105 85; 111 Stat. 1982), section    
   2406 of the Military Construction Authorization Act for Fiscal Year 1999
   (division B of Public Law 105 261; 112 Stat. 2197), and section 2407 of 
   this Act, $26,000,000.                                                  

       (10) For the construction of phase 3 of an ammunition               
   demilitarization facility at Pueblo Army Depot, Colorado, authorized by 
   section 2401(a) of the Military Construction Authorization Act for      
   Fiscal Year 1997 (division B of Public Law 104 201; 110 Stat. 2775), as 
   amended by section 2406 of the Military Construction Authorization Act  
   for Fiscal Year 2000 (division B of Public Law 106 65; 113 Stat. 839),  
   $11,000,000.                                                            
       (11) For construction of phase 4 of an ammunition demilitarization  
   facility at Newport Army Depot, Indiana, authorized by section 2401(a)  
   of the Military Construction Authorization Act for Fiscal Year 1999     
   (division B of Public Law 105 261; 112 Stat. 2193), $66,000,000.        
       (12) For construction of phase 4 of an ammunition demilitarization  
   facility at Aberdeen Proving Ground, Maryland, authorized by section    
   2401(a) of the Military Construction Authorization Act for Fiscal Year  
   1999 (division B of Public Law 105 261; 112 Stat. 2193), as amended by  
   section 2406 of this Act, $66,500,000.                                  
       (13) For the construction of phase 2 of an ammunition               
   demilitarization facility at Blue Grass Army Depot, Kentucky, authorized
   by section 2401(a) of the Military Construction Authorization Act for   
   Fiscal Year 2000 (division B of Public Law 106 65, 113 Stat. 836), as   
   amended by section 2405 of this Act, $3,000,000.                        
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2401 of this Act may not exceed the total amount authorized to  
  be appropriated under paragraphs (1) and (2) of subsection (a).         
     (c) Adjustments.--The total amount authorized to be appropriated     
  pursuant to paragraphs (1) through (13) of subsection (a) is the sum of 
  the amounts authorized to be appropriated in such paragraphs, reduced by
  $17,575,000, which represents the combination of savings resulting from 
  adjustments to foreign currency exchange rates for military             
  construction, military family housing construction, and military family 
  housing support outside the United States and savings resulting from    
  favorable bids, reduced overhead charges, and cancellations due to force
  structure changes.                                                      
                    SEC. 2404. CANCELLATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 2001 PROJECTS.                                              
     (a) Cancellation of Projects at Camp Pendleton, California.--The     
  table in section 2401(a) of the Military Construction Authorization Act 
  for Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A 402)
  is amended--                                                            
       (1) under the agency heading TRICARE Management Activity, by        
   striking the item relating to Marine Corps Base, Camp Pendleton,        
   California; and                                                         
       (2) by striking the amount identified as the total in the amount    
   column and inserting ``$242,756,000''.                                  
     (b) Cancellation of Projects at Unspecified Worldwide                
  Locations.--Section 2401(c) of that Act (114 Stat. 1654A 404) is amended
  by striking ``$451,135,000'' and inserting ``$30,065,000''.             
     (c) Treatment of Authorization of Appropriations for Certain Canceled
  Projects.--Of the amount authorized to be appropriated by section       
  2403(a) of that Act (114 Stat. 1654A 404), and paragraph (1) of that    
  section, $14,150,000 shall be available for purposes relating to        
  construction of the Portsmouth Naval Hospital, Virginia, as authorized  
  by section 2401(a) of the Military Construction Authorization Act for   
  Fiscal Years 1990 and 1991 (division B of Public Law 101 189; 103 Stat. 
  1640).                                                                  
     (d) Reduction in Authorization of Appropriations for Projects at     
  Unspecified Worldwide Locations.--Section 2403 of that Act (114 Stat.   
  1654A 404) is amended--                                                 
     (1) in subsection (a)--                                               

       (A) in the matter preceding paragraph (1), by striking              
   ``$1,883,902,000'' and inserting ``$1,828,872,000''; and                
       (B) in paragraph (3), by striking ``$85,095,000'' and inserting     
   ``$30,065,000''; and                                                    
       (2) in subsection (b), by striking ``may not exceed--'' and all that
   follows through the end of the subsection and inserting ``may not exceed
   the total amount authorized to be appropriated under paragraphs (1) and 
   (2) of subsection (a).''.                                               
                    SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 2000 PROJECTS.                                              
     (a) Modification.--The table in section 2401(a) of the Military      
  Construction Authorization Act for Fiscal Year 2000 (division B of      
  Public Law 106 65; 113 Stat. 835) is amended--                          
       (1) under the agency heading relating to Chemical Demilitarization, 
   in the item relating to Blue Grass Army Depot, Kentucky, by striking    
   ``$206,800,000'' in the amount column and inserting ``$254,030,000'';   
     (2) under the agency heading relating to TRICARE Management Agency--  

       (A) in the item relating to Fort Wainwright, Alaska, by striking    
   ``$133,000,000'' in the amount column and inserting ``$215,000,000'';   
   and                                                                     
       (B) by striking the item relating to Naval Air Station, Whidbey     
   Island, Washington; and                                                 
       (3) by striking the amount identified as the total in the amount    
   column and inserting ``$711,950,000''.                                  
     (b) Treatment of Authorization of Appropriations for Canceled Whidbey
  Island, Project.--Of the amount authorized to be appropriated by section
  2405(a) of that Act (113 Stat. 837), and paragraph (1) of that section, 
  $4,700,000 shall be available for purposes relating to construction of  
  the Portsmouth Naval Hospital, Virginia, as authorized by section       
  2401(a) of the Military Construction Authorization Act for Fiscal Years 
  1990 and 1991 (division B of Public Law 101 189; 103 Stat. 1640).       
     (c) Conforming Amendments.--Section 2405(b) of that Act (113 Stat.   
  839) is amended--                                                       
       (1) in paragraph (2), by striking ``$115,000,000'' and inserting    
   ``$197,000,000''; and                                                   
       (2) in paragraph (3), by striking ``$184,000,000'' and inserting    
   ``$231,230,000''.                                                       
                    SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 1999 PROJECT.                                               
     (a) Modification.--The table in section 2401(a) of the Military      
  Construction Authorization Act for Fiscal Year 1999 (division B of      
  Public Law 105 261; 112 Stat. 2193) is amended--                        
       (1) under the agency heading relating to Chemical Demilitarization, 
   in the item relating to Aberdeen Proving Ground, Maryland, by striking  
   ``$186,350,000'' in the amount column and inserting ``$223,950,000'';   
   and                                                                     
       (2) by striking the amount identified as the total in the amount    
   column and inserting ``$727,616,000''.                                  
     (b) Conforming Amendment.--Section 2404(b)(3) of that Act (112 Stat. 
  2196) is amended by striking ``$158,000,000'' and inserting             
  ``$195,600,000''.                                                       
                    SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 1995 PROJECT.                                               
     The table in section 2401 of the Military Construction Authorization 
  Act for Fiscal Year 1995 (division B of Public Law 103 337; 108 Stat.   
  3040), as amended by section 2407 of the Military Construction          
  Authorization Act for Fiscal Year 1996 (division B of Public Law 104    
  106; 110 Stat. 539), section 2408 of the Military Construction          
  Authorization Act for Fiscal Year 1998 (division B of Public Law 105 85;
  111 Stat. 1982), and section 2406 of the Military Construction          
  Authorization Act for Fiscal Year 1999 (division B of Public Law 105    
  261; 112 Stat. 2197), is amended under the agency heading relating to   
  Chemical Agents and Munitions Destruction, in the item relating to Pine 
  Bluff Arsenal, Arkansas, by striking ``$154,400,000'' in the amount     
  column and inserting ``$177,400,000''.                                  
                    SEC. 2408. PROHIBITION ON EXPENDITURES TO DEVELOP FORWARD     
          OPERATING LOCATION ON ARUBA.                                            
     None of the funds appropriated under the heading `` military         
  construction, defense-wide '' in chapter 3 of title III of the Emergency
  Supplemental Act, 2000 (Public Law 106 246; 114 Stat. 579), may be used 
  by the Secretary of Defense to develop any forward operating location on
  the island of Aruba.                                                    

                      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY       
           INVESTMENT PROGRAM                                                      

      Sec. 2501. Authorized NATO construction and land acquisition projects.  

      Sec. 2502. Authorization of appropriations, NATO.                       


          SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.  

     The Secretary of Defense may make contributions for the North        
  Atlantic Treaty Organization Security Investment Program as provided in 
  section 2806 of title 10, United States Code, in an amount not to exceed
  the sum of the amount authorized to be appropriated for this purpose in 
  section 2502 and the amount collected from the North Atlantic Treaty    
  Organization as a result of construction previously financed by the     
  United States.                                                          
          SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.                       

     Funds are hereby authorized to be appropriated for fiscal years      
  beginning after September 30, 2001, for contributions by the Secretary  
  of Defense under section 2806 of title 10, United States Code, for the  
  share of the United States of the cost of projects for the North        
  Atlantic Treaty Organization Security Investment Program authorized by  
  section 2501, in the amount of $162,600,000.                            

           TITLE XXVI--GUARD AND RESERVE FACILITIES                                


            Sec. 2601. Authorized guard and reserve construction and land     
      acquisition projects.                                                   

                    SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
          ACQUISITION PROJECTS.                                                   
     (a) In General.--There are authorized to be appropriated for fiscal  
  years beginning after September 30, 2001, for the costs of acquisition, 
  architectural and engineering services, and construction of facilities  
  for the Guard and Reserve Forces, and for contributions therefor, under 
  chapter 1803 of title 10, United States Code (including the cost of     
  acquisition of land for those facilities), the following amounts:       
     (1) For the Department of the Army--                                  

       (A) for the Army National Guard of the United States, $393,253,000; 
   and                                                                     
     (B) for the Army Reserve, $168,969,000.                               

       (2) For the Department of the Navy, for the Naval and Marine Corps  
   Reserve, $52,896,000.                                                   
     (3) For the Department of the Air Force--                             

     (A) for the Air National Guard of the United States, $253,852,000; and

     (B) for the Air Force Reserve, $73,032,000.                           


           TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS                 


            Sec. 2701. Expiration of authorizations and amounts required to be
      specified by law.                                                       
            Sec. 2702. Extension of authorizations of certain fiscal year 1999
      projects.                                                               
            Sec. 2703. Extension of authorizations of certain fiscal year 1998
      projects.                                                               
      Sec. 2704. Effective date.                                              


                    SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED  
          TO BE SPECIFIED BY LAW.                                                 
     (a) Expiration of Authorizations After Three Years.--Except as       
  provided in subsection (b), all authorizations contained in titles XXI  
  through XXVI for military construction projects, land acquisition,      
  family housing projects and facilities, and contributions to the North  
  Atlantic Treaty Organization Security Investment program (and           
  authorizations of appropriations therefor) shall expire on the later    
  of--                                                                    
     (1) October 1, 2004; or                                               

       (2) the date of the enactment of an Act authorizing funds for       
   military construction for fiscal year 2005.                             
     (b) Exception.--Subsection (a) shall not apply to authorizations for 
  military construction projects, land acquisition, family housing        
  projects and facilities, and contributions to the North Atlantic Treaty 
  Organization Security Investment program (and authorizations of         
  appropriations therefor) for which appropriated funds have been         
  obligated before the later of--                                         
     (1) October 1, 2004; or                                               

       (2) the date of the enactment of an Act authorizing funds for fiscal
   year 2005 for military construction projects, land acquisition, family  
   housing projects and facilities, or contributions to the North Atlantic 
   Treaty Organization Security Investment program.                        
                    SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
          1999 PROJECTS.                                                          
     (a) Extension.--Notwithstanding section 2701 of the Military         
  Construction Authorization Act for Fiscal Year 1999 (division B of      
  Public Law 105 261; 112 Stat. 2199), authorizations set forth in the    
  tables in subsection (b), as provided in section 2302 or 2601 of that   
  Act, shall remain in effect until October 1, 2002, or the date of the   
  enactment of an Act authorizing funds for military construction for     
  fiscal year 2003, whichever is later.                                   
    (b)  Tables.--The tables referred to in subsection (a) are as follows:


                        Air Force: Extension of 1999 Project Authorizations                       

 State          Installation or location             Project                                     Amount  

Delaware       lDover Air Force Base                lReplace Family Housing (55 units)       $8,998,000  
Florida        lPatrick Air Force Base              lReplace Family Housing (46 units)       $9,692,000  
New Mexico     lKirtland Air Force Base             lReplace Family Housing (37 units)       $6,400,000  
Ohio           lWright-Patterson Air Force Base     lReplace Family Housing (40 units)       $5,600,000  



               Army National Guard: Extension of 1999 Project Authorizations              

 State             Installation or location     Project                                  Amount  

Massachusetts     Westfield                    lArmy Aviation Support Facility       $9,274,000  
South Carolina    Spartanburg                  lReadiness Center                     $5,260,000  


                    SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
          1998 PROJECTS.                                                          
     (a) Extension.--Notwithstanding section 2701 of the Military         
  Construction Authorization Act for Fiscal Year 1998 (division B of      
  Public Law 105 85; 111 Stat. 1984), authorizations set forth in the     
  tables in subsection (b), as provided in section 2102, 2202, or 2302 of 
  that Act and extended by section 2702 of the Military Construction      
  Authorization Act for Fiscal Year 2001 (division B of the Spence Act;   
  114 Stat. 1654A 408), shall remain in effect until October 1, 2002, or  
  the date of the enactment of an Act authorizing funds for military      
  construction for fiscal year 2003, whichever is later.                  
    (b)  Tables.--The tables referred to in subsection (a) are as follows:



                         Army: Extension of 1998 Project Authorization                       

 State        Installation or location     Project                                          Amount  

Maryland     lFort Meade                  lFamily Housing Construction (56 units)       $7,900,000  



                               Navy: Extension of 1998 Project Authorizations                              

 State          Installation or location               Project                                            Amount  

California     lNaval Complex, San Diego              lReplace Family Housing (94 units)             $13,500,000  
California     lMarine Corps Air Station, Miramar     lFamily Housing Construction (166 units)       $28,881,000  
Louisiana      lNaval Complex, New Orleans            lReplace Family Housing (100 units)            $11,930,000  
Texas          lNaval Air Station, Corpus Christi     lFamily Housing Construction (212 units)       $22,250,000  



                      Air Force: Extension of 1998 Project Authorization                    

 State          Installation or location     Project                                       Amount  

New Mexico     lKirtland Air Force Base     lReplace Family Housing (180 units)       $20,900,000  


          SEC. 2704. EFFECTIVE DATE.                                              

     Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on the
  later of--                                                              
     (1) October 1, 2001; or                                               

     (2) the date of the enactment of this Act.                            


           TITLE XXVIII--GENERAL PROVISIONS                                        


           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
            Sec. 2801. Increase in thresholds for certain unspecified minor   
      military construction projects.                                         
            Sec. 2802. Exclusion of unforeseen environmental hazard           
      remediation from limitation on authorized cost variations.              
            Sec. 2803. Repeal of annual reporting requirement on military     
      construction and military family housing activities.                    
            Sec. 2804. Funds for housing allowances of members assigned to    
      military family housing under alternative authority for acquisition and 
      improvement of military housing.                                        
            Sec. 2805. Extension of alternative authority for acquisition and 
      improvement of military housing.                                        
            Sec. 2806. Treatment of financing costs as allowable expenses     
      under contracts for utility services from utility systems conveyed under
      privatization initiative.                                               
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        

            Sec. 2811. Use of military installations for certain recreational 
      activities.                                                             
            Sec. 2812. Availability of proceeds of sales of Department of     
      Defense property from certain closed military installations.            
            Sec. 2813. Pilot program to provide additional tools for efficient
      operation of military installations.                                    
            Sec. 2814. Demonstration program on reduction in long-term        
      facility maintenance costs.                                             
      Sec. 2815. Base efficiency project at Brooks Air Force Base, Texas.     

           SUBTITLE C--IMPLEMENTATION OF PRIOR BASE CLOSURE AND REALIGNMENT ROUNDS

      Sec. 2821. Lease back of base closure property.                         

                                SUBTITLE D--LAND CONVEYANCES                      

                                  PART I--ARMY CONVEYANCES                        

            Sec. 2831. Land conveyance, Whittier-Anchorage Pipeline Tank Farm,
      Anchorage, Alaska.                                                      
      Sec. 2832. Lease authority, Fort DeRussy, Hawaii.                       

      Sec. 2833. Modification of land exchange, Rock Island Arsenal, Illinois.

      Sec. 2834. Land conveyance, Fort Des Moines, Iowa.                      

      Sec. 2835. Modification of land conveyances, Fort Dix, New Jersey.      

            Sec. 2836. Land conveyance, Engineer Proving Ground, Fort Belvoir,
      Virginia.                                                               
      Sec. 2837. Land exchange and consolidation, Fort Lewis, Washington.     

      Sec. 2838. Land conveyance, Army Reserve Center, Kewaunee, Wisconsin.   

                                 PART II--NAVY CONVEYANCES                        

            Sec. 2841. Transfer of jurisdiction, Centerville Beach Naval      
      Station, Humboldt County, California.                                   
      Sec. 2842. Land conveyance, Port of Long Beach, California.             

      Sec. 2843. Conveyance of pier, Naval Base, San Diego, California.       

            Sec. 2844. Modification of authority for conveyance of Naval      
      Computer and Telecommunications Station, Cutler, Maine.                 
            Sec. 2845. Land transfer and conveyance, Naval Security Group     
      Activity, Winter Harbor, Maine.                                         

      Sec. 2846. Land acquisition, Perquimans County, North Carolina.         

            Sec. 2847. Land conveyance, Naval Weapons Industrial Reserve      
      Plant, Toledo, Ohio.                                                    
            Sec. 2848. Modification of land conveyance, former United States  
      Marine Corps Air Station, Eagle Mountain Lake, Texas.                   
                              PART III--AIR FORCE CONVEYANCES                     

            Sec. 2851. Conveyance of avigation easements, former Norton Air   
      Force Base, California.                                                 
            Sec. 2852. Reexamination of land conveyance, Lowry Air Force Base,
      Colorado.                                                               
      Sec. 2853. Water rights conveyance, Andersen Air Force Base, Guam.      

            Sec. 2854. Conveyance of segment of Loring petroleum pipeline,    
      Maine, and related easements.                                           
            Sec. 2855. Land conveyance, petroleum terminal serving former     
      Loring Air Force Base and Bangor Air National Guard Base, Maine.        
            Sec. 2856. Land conveyances, certain former Minuteman III ICBM    
      facilities in North Dakota.                                             
      Sec. 2857. Land conveyances, Charleston Air Force Base, South Carolina. 

            Sec. 2858. Transfer of jurisdiction, Mukilteo Tank Farm, Everett, 
      Washington.                                                             
                                  SUBTITLE E--OTHER MATTERS                       

      Sec. 2861. Management of the Presidio of San Francisco.                 

            Sec. 2862. Transfer of jurisdiction for development of Air Force  
      morale, welfare, and recreation facility, Park City, Utah.              
            Sec. 2863. Alternate site for United States Air Force Memorial,   
      preservation of open space on Arlington Ridge tract, and related land   
      transfer at Arlington National Cemetery, Virginia.                      
            Sec. 2864. Establishment of memorial to victims of terrorist      
      attack on Pentagon Reservation and authority to accept monetary         
      contributions for memorial and repair of Pentagon.                      
            Sec. 2865. Repeal of limitation on cost of renovation of Pentagon 
      Reservation.                                                            
            Sec. 2866. Development of United States Army Heritage and         
      Education Center at Carlisle Barracks, Pennsylvania.                    
            Sec. 2867. Effect of limitation on construction of roads or       
      highways, Marine Corps Base, Camp Pendleton, California.                
            Sec. 2868. Establishment of World War II memorial at additional   
      location on Guam.                                                       
            Sec. 2869. Demonstration project for purchase of fire, security,  
      police, public works, and utility services from local government        
      agencies.                                                               
            Sec. 2870. Report on future land needs of United States Military  
      Academy, New York, and adjacent community.                              
            Sec. 2871. Naming of Patricia C. Lamar Army National Guard        
      Readiness Center, Oxford, Mississippi.                                  

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

                    SEC. 2801. INCREASE IN THRESHOLDS FOR CERTAIN UNSPECIFIED     
          MINOR MILITARY CONSTRUCTION PROJECTS.                                   
     (a) Projects Requiring Advance Approval of Secretary                 
  Concerned.--Subsection (b)(1) of section 2805 of title 10, United States
  Code, is amended by striking ``$500,000'' and inserting ``$750,000''.   
     (b) Projects Using Amounts for Operation and Maintenance.--Subsection
  (c)(1) of that section is amended--                                     
       (1) in subparagraph (A), by striking ``$1,000,000'' and inserting   
   ``$1,500,000''; and                                                     
       (2) in subparagraph (B), by striking ``$500,000'' and inserting     
   ``$750,000''.                                                           

                    SEC. 2802. EXCLUSION OF UNFORESEEN ENVIRONMENTAL HAZARD       
          REMEDIATION FROM LIMITATION ON AUTHORIZED COST VARIATIONS.              
     Subsection (d) of section 2853 of title 10, United States Code, is   
  amended to read as follows:                                             
     ``(d) The limitation on cost increases in subsection (a) does not    
  apply to the following:                                                 
     ``(1) The settlement of a contractor claim under a contract.          

       ``(2) The costs associated with the required remediation of an      
   environmental hazard in connection with a military construction project 
   or military family housing project, such as asbestos removal, radon     
   abatement, lead-based paint removal or abatement, or any other legally  
   required environmental hazard remediation, if the required remediation  
   could not have reasonably been anticipated at the time the project was  
   approved originally by Congress.''.                                     

                    SEC. 2803. REPEAL OF ANNUAL REPORTING REQUIREMENT ON MILITARY 
          CONSTRUCTION AND MILITARY FAMILY HOUSING ACTIVITIES.                    
     (a) Repeal.--Section 2861 of title 10, United States Code, is        
  repealed.                                                               
     (b) Clerical Amendment.--The table of sections at the beginning of   
  subchapter III of chapter 169 of such title is amended by striking the  
  item relating to section 2861.                                          

                    SEC. 2804. FUNDS FOR HOUSING ALLOWANCES OF MEMBERS ASSIGNED TO
          MILITARY FAMILY HOUSING UNDER ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
          IMPROVEMENT OF MILITARY HOUSING.                                        
     (a) In General.--Subchapter IV of chapter 169 of title 10, United    
  States Code, is amended by inserting after section 2883 the following   
  new section:                                                            
                    ``2883a. Funds for housing allowances of members of the armed 
          forces assigned to certain military family housing units                
     ``(a) Authority to Transfer Funds to Cover Housing                   
  Allowances.--During the fiscal year in which a contract is awarded for  
  the acquisition or construction of military family housing units under  
  this subchapter that are not to be owned by the United States, the      
  Secretary of Defense may transfer the amount determined under subsection
  (b) with respect to such housing from appropriations available for      
  support of military housing for the armed force concerned for that      
  fiscal year to appropriations available for pay and allowances of       
  military personnel of that same armed force for that same fiscal year.  
     ``(b) Amount Transferred.--The total amount authorized to be         
  transferred under subsection (a) in connection with a contract under    
  this subchapter may not exceed an amount equal to any additional amounts
  payable during the fiscal year in which the contract is awarded to      
  members of the armed forces assigned to the acquired or constructed     
  housing units as basic allowance for housing under section 403 of title 
  37 that would not otherwise have been payable to such members if not for
  assignment to such housing units.                                       
     ``(c) Transfers Subject to Appropriations.--The transfer of funds    
  under the authority of subsection (a) is limited to such amounts as may 
  be provided in advance in appropriations Acts.''.                       
     (b) Clerical Amendment.--The table of sections at the beginning of   
  that subchapter is amended by inserting after the item relating to      
  section 2883 the following new item:                                    


            ``2883a. Funds for housing allowances of members of the armed     
      forces assigned to certain military family housing units.''.            

                    SEC. 2805. EXTENSION OF ALTERNATIVE AUTHORITY FOR ACQUISITION 
          AND IMPROVEMENT OF MILITARY HOUSING.                                    
     Section 2885 of title 10, United States Code, is amended by striking 
  ``2004'' and inserting ``2012''.                                        

                    SEC. 2806. TREATMENT OF FINANCING COSTS AS ALLOWABLE EXPENSES 
          UNDER CONTRACTS FOR UTILITY SERVICES FROM UTILITY SYSTEMS CONVEYED UNDER
          PRIVATIZATION INITIATIVE.                                               
     (a) Evaluation of Federal Acquisition Regulation.--The Secretary of  
  Defense shall conduct an evaluation of the Federal Acquisition          
  Regulation to determine whether or not it is advisable to modify the    
  Federal Acquisition Regulation to provide that a contract for utility   
  services from a utility system conveyed under section 2688(a) of title  
  10, United States Code, may include terms and conditions that recognize 
  financing costs, such as return on equity and interest on debt, as an   
  allowable expense when incurred by the conveyee of the utility system to
  acquire, operate, renovate, replace, upgrade, repair, or expand the     
  utility system. The Secretary shall complete the evaluation not later   
  than 90 days after the date of the enactment of this Act.               
     (b) Submission of Recommendation to Federal Acquisition Regulatory   
  Council.--If the Secretary determines under subsection (a) that it is   
  advisable to modify the Federal Acquisition Regulation to provide that a
  contract described in such subsection may include terms and conditions  
  described in such subsection, the Secretary shall submit the results of 
  the evaluation to the Federal Acquisition Regulatory Council together   
  with a recommendation regarding the amendments to the Federal           
  Acquisition Regulation necessary to effectuate the modification.        
           Subtitle B--Real Property and Facilities Administration                 


                    SEC. 2811. USE OF MILITARY INSTALLATIONS FOR CERTAIN          
          RECREATIONAL ACTIVITIES.                                                
     (a) Waiver Authority.--Section 2671 of title 10, United States Code, 
  is amended--                                                            
       (1) in subsection (b), by striking ``(b)'' and inserting ``(e)      
   Regulations.--'' and transferring the subsection to the end of the      
   section; and                                                            
       (2) by inserting after subsection (a) the following new subsection  
   (b):                                                                    
     ``(b) Waiver Authority.--(1) The Secretary of Defense may waive or   
  otherwise modify the fish and game laws of a State or Territory         
  otherwise applicable under subsection (a)(1) to hunting, fishing, or    
  trapping at a military installation or facility if the Secretary        
  determines that the application of such laws to such hunting, fishing,  
  or trapping without modification could result in undesirable            
  consequences for public health or safety at the installation or         
  facility. The authority to waive such laws includes the authority to    
  extend, but not reduce, the specified season for certain hunting,       
  fishing, or trapping. The Secretary may not waive the requirements under
  subsection (a)(2) regarding a license for such hunting, fishing, or     
  trapping or any fee imposed by a State or Territory to obtain such a    
  license.                                                                
     ``(2) If the Secretary determines that a waiver of fish and game laws
  of a State or Territory is appropriate under paragraph (1), the         
  Secretary shall provide written notification to the appropriate State or
  Territory officials stating the reasons for, and extent of, the waiver. 
  The notification shall be provided at least 30 days before              
  implementation of the waiver.''.                                        
    (b)  Clerical Amendments.--Such section is further amended--          


       (1) in subsection (a), by inserting `` General Requirements for     
   Hunting, Fishing, and Trapping.--'' after ``(a)'';                      
       (2) in subsection (c), by inserting `` Violations.--'' after        
   ``(c)''; and                                                            
       (3) in subsection (d), by inserting `` Relation to Treaty           
   Rights.--'' after ``(d)''.                                              

                    SEC. 2812. AVAILABILITY OF PROCEEDS OF SALES OF DEPARTMENT OF 
          DEFENSE PROPERTY FROM CERTAIN CLOSED MILITARY INSTALLATIONS.            
     (a) Modification of Availability Percentages.--Subsection (h)(2) of  
  section 204 of the Federal Property and Administrative Services Act of  
  1949 (40 U.S.C. 485) is amended by striking subparagraphs (A) and (B)   
  and inserting the following new subparagraphs:                          
       ``(A) In the case of property located at a military installation    
   that is closed, such amount shall be available for facility maintenance 
   and repair or environmental restoration by the military department that 
   had jurisdiction over such property before the closure of the military  
   installation.                                                           
       ``(B) In the case of property located at any other military         
   installation--                                                          
       ``(i) 50 percent of such amount shall be available for facility     
   maintenance and repair or environmental restoration at the military     
   installation where such property was located before it was disposed of  
   or transferred; and                                                     
       ``(ii) 50 percent of such amount shall be available for facility    
   maintenance and repair and for environmental restoration by the military
   department that had jurisdiction over such property before it was       
   disposed of or transferred.''.                                          
     (b) Relation to Other Laws.--Subsection (h) of such section is       
  further amended--                                                       
       (1) in paragraph (1), by inserting ``pursuant to a base closure     
   law'' after ``realignment'' in the first sentence; and                  
       (5) in paragraph (5), by inserting before the period at the end the 
   following: ``, and the term `base closure law' shall have the meaning   
   given that term in section 2667(h)(2) of such title''.                  

                    SEC. 2813. PILOT PROGRAM TO PROVIDE ADDITIONAL TOOLS FOR      
          EFFICIENT OPERATION OF MILITARY INSTALLATIONS.                          
     (a) Initiative Authorized.--The Secretary of Defense may carry out a 
  pilot program (to be known as the ``Pilot Efficient Facilities          
  Initiative'') for purposes of determining the potential for increasing  
  the efficiency and effectiveness of the operation of military           
  installations.                                                          
     (b) Designation of Participating Military Installations.--(1) The    
  Secretary of Defense may designate up to two military installations of  
  each military department for participation in the Initiative.           
     (2) Before designating a military installation under paragraph (1),  
  the Secretary shall consult with employees at the installation and      
  communities in the vicinity of the installation regarding the           
  Initiative.                                                             
     (3) The Secretary shall transmit to Congress written notification of 
  the designation of a military installation to participate in the        
  Initiative not later than 30 days before taking any action to carry out 
  the Initiative at the installation. The notification shall include a    
  description of the steps taken by the Secretary to comply with paragraph
  (2).                                                                    
     (c) Management Plan.--(1) As part of the notification required under 
  subsection (b), the Secretary of Defense shall submit a management plan 
  for the Initiative at the military installation designated in the       
  notification.                                                           
     (2) The management plan for a designated military installation shall 
  include a description of--                                              
       (A) each proposed lease of real or personal property located at the 
   military installation;                                                  
       (B) each proposed disposal of real or personal property located at  
   the installation;                                                       
       (C) each proposed leaseback of real or personal property leased or  
   disposed of at the installation;                                        
       (D) each proposed conversion of services at the installation from   
   Federal Government performance to non-Federal Government performance,   
   including performance by contract with a State or local government or   
   private entity or performance as consideration for the lease or disposal
   of property at the installation; and                                    
       (E) each other action proposed to be taken to improve mission       
   effectiveness and reduce the cost of providing quality installation     
   support at the installation.                                            
     (3) With respect to each proposed action described under paragraph   
  (2), the management plan shall include--                                
       (A) an estimate of the savings expected to be achieved as a result  
   of the action;                                                          
       (B) each regulation not required by statute that is proposed to be  
   waived to implement the action; and                                     
       (C) each statute or regulation required by statute that is proposed 
   to be waived to implement the action, including--                       
     (i) an explanation of the reasons for the proposed waiver; and        

       (ii) a description of the action to be taken to protect the public  
   interests served by the statute or regulation, as the case may be, in   
   the event of the waiver.                                                
     (4) The management plan shall include measurable criteria for the    
  evaluation of the effects of the actions taken pursuant to the          
  Initiative at the designated military installation.                     
     (d) Waiver of Statutory Requirements.--The Secretary of Defense may  
  waive any statute, or regulation required by statute, for purposes of   
  carrying out the Initiative only if specific authority for the waiver of
  such statute or regulation is provided in a law that is enacted after   
  the date of the enactment of this Act.                                  
     (e) Installation Efficiency Initiative Fund.--(1) There is           
  established on the books of the Treasury a fund to be known as the      
  ``Installation Efficiency Initiative Fund''.                            
     (2) There shall be deposited in the Fund all cash rents, payments,   
  reimbursements, proceeds, and other amounts from leases, sales, or other
  conveyances or transfers, joint activities, and other actions taken     
  under the Initiative.                                                   
     (3) To the extent provided in advance in authorization Acts and      
  appropriations Acts, amounts in the Fund shall be available to the      
  Secretary of Defense for purposes of managing capital assets and        
  providing support services at military installations participating in   
  the Initiative. Amounts in the Fund may be used for such purposes in    
  addition to, or in combination with, other amounts authorized to        
  appropriated for such purposes. Amounts in the Fund shall be available  
  for such purposes for five years.                                       
     (4) Subject to applicable financial management regulations, the      
  Secretary shall structure the Fund, and provide administrative policies 
  and procedures, in order provide proper control of deposits in and      
  disbursements from the Fund.                                            
     (f) Report.--Not later than December 31, 2004, the Secretary of      
  Defense shall submit to Congress a report on the Initiative. The report 
  shall contain a description of the actions taken under the Initiative   
  and include such other information, including recommendations, as the   
  Secretary considers appropriate regarding the Initiative.               
    (g)  Definitions.--In this section:                                   

       (1) The term ``Initiative'' means the Pilot Efficient Facilities    
   Initiative.                                                             
       (2) The term ``Fund'' means the Installation Efficiency Initiative  
   Fund.                                                                   
       (3) The term ``military installation'' has the meaning given such   
   term in section 2687(e) of title 10, United States Code.                
     (h) Termination.--The authority of the Secretary of Defense to carry 
  out the Initiative shall terminate December 31, 2005.                   

                    SEC. 2814. DEMONSTRATION PROGRAM ON REDUCTION IN LONG-TERM    
          FACILITY MAINTENANCE COSTS.                                             
     (a) Authority To Carry Out Program.--The Secretary of the Army may   
  conduct a demonstration program to assess the feasibility and           
  desirability of including facility maintenance requirements in          
  construction contracts for military construction projects for the       
  purpose of determining whether such requirements facilitate reductions  
  in the long-term facility maintenance costs of the military departments.
     (b) Contracts.--Not more than three contracts entered into in any    
  year may contain requirements referred to in subsection (a) for the     
  purpose of the demonstration program. The demonstration program may only
  cover contracts entered into on or after the date of the enactment of   
  this Act.                                                               
     (c) Effective Period of Requirements.--The effective period of a     
  requirement referred to in subsection (a) that is included in a contract
  for the purpose of the demonstration program may not exceed five years. 
     (d) Reporting Requirements.--Not later than January 31, 2005, the    
  Secretary of the Army shall submit to Congress a report on the          
  demonstration program, including the following:                         
       (1) A description of all contracts that contain requirements        
   referred to in subsection (a) for the purpose of the demonstration      
   program.                                                                
       (2) An evaluation of the demonstration program and a description of 
   the experience of the Secretary with respect to such contracts.         
       (3) Any recommendations, including recommendations for the          
   termination, continuation, or expansion of the demonstration program,   
   that the Secretary considers appropriate.                               
     (e) Expiration.--The authority under subsection (a) to include       
  requirements referred to in that subsection in contracts under the      
  demonstration program shall expire on September 30, 2006.               

     (f) Funding.--Amounts authorized to be appropriated for the Army for 
  a fiscal year for military construction shall be available for the      
  demonstration program under this section in such fiscal year.           

          SEC. 2815. BASE EFFICIENCY PROJECT AT BROOKS AIR FORCE BASE, TEXAS.     

     (a) Administration of Project.--Section 136(m)(9) of the Military    
  Construction Appropriations Act, 2001 (division A of Public Law 106 246;
  114 Stat. 524), is amended by striking ``, who shall be a civilian      
  official of the Department appointed by the President with the advice   
  and consent of the Senate''.                                            
     (b) Indemnification of Transferees.--Not later than March 1, 2002,   
  the Secretary of Defense shall submit to Congress a report evaluating   
  the base efficiency project conducted under section 136 of the Military 
  Construction Appropriations Act, 2001 (division A of Public Law 106 246;
  114 Stat. 520). The evaluation shall address whether the disposal of    
  real property under subsection (e) or other provisions of that section  
  requires any additional authority for the Secretary beyond the authority
  provided under existing law to hold harmless, defend, and indemnify the 
  recipients of the property against claims arising out of Department of  
  Defense activities on the property before disposal. If the Secretary    
  determines that inclusion of such an indemnity provision would          
  facilitate activities under the base efficiency project, the Secretary  
  shall include a recommendation in the report regarding the nature and   
  extent of the indemnification to be provided.                           

           Subtitle C--Implementation of Prior Base Closure and Realignment Rounds 


          SEC. 2821. LEASE BACK OF BASE CLOSURE PROPERTY.                         

     (a) 1988 Law.--Section 204(b)(4) of the Defense Authorization        
  Amendments and Base Closure and Realignment Act (Public Law 100 526; 10 
  U.S.C. 2687 note) is amended--                                          
       (1) by redesignating subparagraphs (E), (F), (G), (H), and (I) as   
   subparagraphs (F), (G), (H), (I), and (J), respectively; and            
       (2) by inserting after subparagraph (D) the following new           
   subparagraph (E):                                                       
     ``(E)(i) The Secretary may transfer real property at an installation 
  approved for closure or realignment under this title (including property
  at an installation approved for realignment which will be retained by   
  the Department of Defense or another Federal agency after realignment)  
  to the redevelopment authority for the installation if the redevelopment
  authority agrees to lease, directly upon transfer, one or more portions 
  of the property transferred under this subparagraph to the Secretary or 
  to the head of another department or agency of the Federal Government.  
  Subparagraph (B) shall apply to a transfer under this subparagraph.     
     ``(ii) A lease under clause (i) shall be for a term of not to exceed 
  50 years, but may provide for options for renewal or extension of the   
  term by the department or agency concerned.                             
     ``(iii) A lease under clause (i) may not require rental payments by  
  the United States.                                                      
     ``(iv) A lease under clause (i) shall include a provision specifying 
  that if the department or agency concerned ceases requiring the use of  
  the leased property before the expiration of the term of the lease, the 
  remainder of the lease term may be satisfied by the same or another     
  department or agency of the Federal Government using the property for a 
  use similar to the use under the lease. Exercise of the authority       
  provided by this clause shall be made in consultation with the          
  redevelopment authority concerned.                                      
     ``(v) Notwithstanding clause (iii), if a lease under clause (i)      
  involves a substantial portion of the installation, the department or   
  agency concerned may obtain facility services for the leased property   
  and common area maintenance from the redevelopment authority or the     
  redevelopment authority's assignee as a provision of the lease. The     
  facility services and common area maintenance shall be provided at a    
  rate no higher than the rate charged to non-Federal tenants of the      
  transferred property. Facility services and common area maintenance     
  covered by the lease shall not include--                                
       ``(I) municipal services that a State or local government is        
   required by law to provide to all landowners in its jurisdiction without
   direct charge; or                                                       
     ``(II) firefighting or security-guard functions.''.                   

     (b) 1990 Law.--Section 2905(b)(4)(E) of the Defense Base Closure and 
  Realignment Act of 1990 (part A of title XXIX of Public Law 101 510; 10 
  U.S.C. 2687 note) is amended by adding at the end the following new     
  clause:                                                                 
     ``(v) Notwithstanding clause (iii), if a lease under clause (i)      
  involves a substantial portion of the installation, the department or   
  agency concerned may obtain facility services for the leased property   
  and common area maintenance from the redevelopment authority or the     
  redevelopment authority's assignee as a provision of the lease. The     
  facility services and common area maintenance shall be provided at a    
  rate no higher than the rate charged to non-Federal tenants of the      
  transferred property. Facility services and common area maintenance     
  covered by the lease shall not include--                                
       ``(I) municipal services that a State or local government is        
   required by law to provide to all landowners in its jurisdiction without
   direct charge; or                                                       
     ``(II) firefighting or security-guard functions.''.                   

           Subtitle D--Land Conveyances                                            

           PART I--ARMY CONVEYANCES                                               


                    SEC. 2831. LAND CONVEYANCE, WHITTIER-ANCHORAGE PIPELINE TANK  
          FARM, ANCHORAGE, ALASKA.                                                
     (a) Conveyance Authorized.--The Secretary of the Army may convey to  
  the Port of Anchorage, an entity of the Municipality of Anchorage,      
  Alaska (in this section referred to as the ``Port''), all right, title, 
  and interest of the United States in and to two adjoining parcels of    
  real property, including any improvements thereon, consisting of        
  approximately 48 acres in Anchorage, Alaska, which are known as of the  
  Whittier-Anchorage Pipeline Tank Farm, for the purpose of permitting the
  Port to use the parcels for economic development.                       
     (b) Consideration.--As consideration for the conveyance under        
  subsection (a), the Port shall pay to the United States an amount, in   
  cash or in-kind, equal to not less than the fair market value of the    
  conveyed property, as determined by the Secretary. The Secretary may    
  authorize the Port to carry out, as in-kind consideration, environmental
  remediation activities for the property to be conveyed.                 
     (c) Time for Conveyance.--The Secretary may delay the conveyance     
  under subsection (a) until such time as the Army studies relating to the
  Alaska deployment of the Interim Brigade Combat Team in Alaska are      
  completed.                                                              
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the Port.                                      
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         

          SEC. 2832. LEASE AUTHORITY, FORT DERUSSY, HAWAII.                       

     (a) Lease Authorized.--Notwithstanding section 809 of the Military   
  Construction Authorization Act, 1968 (Public Law 90 110; 81 Stat. 309), 
  and section 2814(b) of the Military Construction Authorization Act, 1989
  (Public Law 100 456; 102 Stat. 2117), the Secretary of the Army may     
  enter into a lease with the City and County of Honolulu, Hawaii, for the
  purpose of making available to the City and County a parcel of real     
  property at Fort DeRussy, Hawaii, for the construction and operation of 
  a parking facility. The size and location of the parcel shall be        
  determined by the Secretary.                                            
     (b) Terms and Conditions.--The lease under subsection (a) may be for 
  such term of years, require such consideration, and contain such other  
  terms and conditions as the Secretary considers appropriate to protect  
  the interests of the United States.                                     
     (c) Relationship to Other Lease Authority.--Section 2667 of title 10,
  United States Code, shall not apply to the lease under subsection (a).  
     (d) Disposition of Money Rentals.--All money rentals received        
  pursuant to the lease under subsection (a) shall be--                   
     (1) retained by the Secretary;                                        

       (2) credited to an appropriation account that supports the operation
   and maintenance of Fort DeRussy; and                                    
     (3) available for such purpose until expended.                        


          SEC. 2833. MODIFICATION OF LAND EXCHANGE, ROCK ISLAND ARSENAL, ILLINOIS.

     (a) Additional Conveyance Authorized.--Subsection (a) of section 2832
  of the Military Construction Authorization Act for Fiscal Year 2000     
  (division B of Public Law 106 65; 113 Stat. 857) is amended--           
     (1) by inserting ``(1)'' after `` Conveyance Authorized.--''; and     

     (2) by adding at the end the following new paragraph:                 

     ``(2) The Secretary may convey to the City all right, title, and     
  interest of the United States in and to an additional parcel of real    
  property, including improvements thereon, at the Rock Island Arsenal    
  consisting of approximately .513 acres.''.                              
    (b)  Consideration.--Subsection (b) of such section is amended--      

     (1) by inserting ``(1)'' after `` Consideration.--'';                 

       (2) by striking ``subsection (a)'' both places it appears and       
   inserting ``subsection (a)(1)''; and                                    
     (3) by adding at the end the following new paragraph:                 

     ``(2) As consideration for the conveyance under subsection (a)(2),   
  the City shall convey to the Secretary all right, title, and interest of
  the City in and to a parcel of real property consisting of approximately
  .063 acres and construct on the parcel, at the City's expense, a new    
  access ramp to the Rock Island Arsenal.''.                              

          SEC. 2834. LAND CONVEYANCE, FORT DES MOINES, IOWA.                      

     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to Fort Des Moines Memorial Park, Inc., a        
  nonprofit organization (in this section referred to as the ``Memorial   
  Park''), all right, title, and interest of the United States in and to a
  parcel of real property, including improvements thereon, consisting of  
  approximately 4.6 acres located at Fort Des Moines United States Army   
  Reserve Center, Des Moines, Iowa, for the purpose of the establishment  
  of the Fort Des Moines Memorial Park and Education Center.              
     (b) Condition of Conveyance.--The conveyance under subsection (a)    
  shall be subject to the condition that the Memorial Park use the        
  property for museum and park purposes.                                  
     (c) Reversion.--If the Secretary determines at any time that the real
  property conveyed under subsection (a) is not being used for museum and 
  park purposes, all right, title, and interest in and to the real        
  property, including any improvements thereon, shall revert to the United
  States, and the United States shall have the right of immediate entry   
  thereon.                                                                
     (d) Reimbursement for Costs of Conveyance.--(1) The Memorial Park    
  shall reimburse the Secretary for the excess costs incurred by the      
  Secretary for any environmental assessment, study, or analysis, or for  
  any other excess costs incurred by the Secretary, in connection with the
  conveyance authorized by this section, if the excess costs were incurred
  as a result of a request by the Memorial Park. In this paragraph, the   
  term ``excess costs'' means costs in excess of those costs considered   
  reasonable and necessary by the Secretary to comply with existing law to
  make the conveyance authorized by subsection (a).                       
     (2) Section 2695(c) of title 10 United States Code, shall apply to   
  any amount received under this subsection.                              
     (e) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the Memorial Park.                             
     (f) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         

          SEC. 2835. MODIFICATION OF LAND CONVEYANCES, FORT DIX, NEW JERSEY.      

     Section 2835(c) of the Military Construction Authorization Act for   
  Fiscal Year 1998 (division B of Public Law 105 85; 111 Stat. 2004) is   
  amended by adding at the end the following new paragraph:               
     ``(3) Notwithstanding paragraph (1) or (2), the Borough and Board may
  exchange between each other, without the consent of the Secretary, all  
  or any portion of the property conveyed under subsection (a) so long as 
  the property continues to be used by the grantees for economic          
  development or educational purposes.''.                                 

                    SEC. 2836. LAND CONVEYANCE, ENGINEER PROVING GROUND, FORT     
          BELVOIR, VIRGINIA.                                                      
     (a) Conveyance Authorized.--The Secretary of the Army may convey to  
  the Commonwealth of Virginia (in this section referred to as the        
  ``Commonwealth'') all right, title, and interest of United States in and
  to two parcels of real property, including any improvements thereon,    
  located at the Engineer Proving Ground, Fort Belvoir, Virginia, as      
  follows:                                                                
       (1) The parcel, consisting of approximately 170 acres, that is to be
   used for construction of a portion of the Fairfax County Parkway.       
       (2) The parcel, consisting of approximately 11.45 acres, that is    
   subject to an easement previously granted to the Commonwealth as Army   
   easement DACA 31 3 96 440 for the construction of a portion of          
   Interstate Highway 95.                                                  
     (b) Consideration.--As consideration for the conveyance under        
  subsection (a), the Commonwealth shall--                                
       (1) design and construct, at its expense and for public benefit, the
   portion of the Fairfax County Parkway through the Engineer Proving      
   Ground;                                                                 
       (2) provide a conceptual design for eventual incorporation and      
   construction by others of access into the Engineer Proving Ground at the
   Rolling Road Interchange from Fairfax County Parkway as specified in    
   Virginia Department of Transportation Project #R000 029 249, C514;      
       (3) provide such easements or rights of way for utilities under or  
   across the Fairfax County Parkway as the Secretary considers appropriate
   for the optimum development of the Engineer Proving Ground; and         
       (4) pay the United States an amount, jointly determined by the      
   Secretary and the Commonwealth, appropriate to cover the costs of       
   constructing a replacement building for building 5089 located on the    
   Engineer Proving Ground.                                                
     (c) Responsibility for Environmental Cleanup.--The Secretary shall   
  retain liability under the Comprehensive Environmental Response,        
  Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.), and   
  any other applicable environmental statute or regulation, for any       
  environmental hazard on the property conveyed under subsection (a) as of
  the date of the conveyance under that subsection.                       
     (d) Acceptance and Disposition of Funds.--(1) The Secretary of the   
  Army may accept the funds paid by the Commonwealth as consideration     
  under subsection (b)(4) and shall credit the accepted funds to the      
  appropriation or appropriations that are appropriate for paying the     
  costs of the replacement of Building 5089, located on the Engineer      
  Proving Ground, Fort Belvoir, Virginia, consistent with paragraphs (2)  
  and (3) of this subsection.                                             
     (2) Funds accepted under paragraph (1) shall be available, until     
  expended, for the replacement of Building 5089.                         
     (3) Funds appropriated pursuant to the authorization of              
  appropriations in section 301(a)(1), and funds appropriated pursuant to 
  the authorization of appropriations in section 2104(a)(4), shall be     
  available in accordance with section 2805 of title 10, United States    
  Code, for the excess, if any, of the cost of the replacement of Building
  5089 over the amount available for such project under paragraph (2).    
     (e) Description of Property.--(1) The exact acreage and legal        
  description of the real property to be conveyed under subsection (a)(1) 
  shall be determined by a survey satisfactory to the Secretary. The cost 
  of the survey shall be borne by the Commonwealth.                       
     (2) The exact acreage and legal description of the real property to  
  be conveyed under subsection (a)(2) are as set forth in Army easement   
  DACA 31 3 96 440.                                                       
     (f) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         

          SEC. 2837. LAND EXCHANGE AND CONSOLIDATION, FORT LEWIS, WASHINGTON.     

     (a) Exchange Authorized.--(1) The Secretary of the Army may convey to
  the Nisqually Tribe, a federally recognized Indian tribe whose tribal   
  lands are located within the State of Washington, all right, title, and 
  interest of the United States in and to two parcels of real property,   
  including any improvements thereon, consisting of approximately 138     
  acres at Fort Lewis, Washington, in exchange for the real property      
  described in subsection (b).                                            
     (2) The property authorized for conveyance under paragraph (1) does  
  not include Bonneville Power Administration transmission facilities or  
  the right of way described in subsection (c).                           
     (b) Consideration.--As consideration for the conveyance under        
  subsection (a), the Nisqually Tribe shall--                             
       (1) acquire from Thurston County, Washington, several parcels of    
   real property consisting of approximately 416 acres that are owned by   
   the county, are located within the boundaries of Fort Lewis, and are    
   currently leased by the Army; and                                       
     (2) convey fee title over the acquired property to the Secretary.     

     (c) Right-of-Way for Bonneville Power Administration.--The Secretary 
  may use the authority provided in section 2668 of title 10, United      
  States Code, to convey to the Bonneville Power Administration a         
  right-of-way that authorizes the Bonneville Power Administration to use 
  real property at Fort Lewis as a route for the Grand Coulee-Olympia and 
  Olympia-White River electric transmission lines and appurtenances for   
  the purpose of facilitating the removal of such transmission lines from 
  tribal lands of the Nisqually Tribe.                                    
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) and acquired   
  under subsection (b) shall be determined by surveys satisfactory to the 
  Secretary and the Nisqually Tribe. The cost of a survey shall be borne  
  by the recipient of the property being surveyed.                        
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyances under
  this section as the Secretary considers appropriate to protect the      
  interests of the United States.                                         

          SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, KEWAUNEE, WISCONSIN.   

     (a) Conveyance Authorized.--The Administrator of General Services may
  convey, without consideration, to the City of Kewaunee, Wisconsin (in   
  this section referred to as the ``City''), all right, title, and        
  interest of the United States in and to a parcel of Federal real        
  property, including improvements thereon, that is located at 401 5th    
  Street in Kewaunee, Wisconsin, and contains a surplus Army Reserve      
  Center. After such conveyance, the property may be used and occupied    
  only by the City or by another local or State government entity approved
  by the City.                                                            
     (b) Reversionary Interest.--(1) During the 20-year period beginning  
  on the date the Administrator makes the conveyance under subsection (a),
  if the Administrator determines that the conveyed property is not being 
  used and occupied in accordance with such subsection, all right, title, 
  and interest in and to the property, including any improvements thereon,
  shall revert to the United States.                                      
     (2) Upon reversion, the Administrator shall immediately proceed to a 
  public sale of the property. The Administrator shall deposit the net    
  proceeds from the public sale in the land and water conservation fund   
  established under section 2 of the Land and Water Conservation Fund Act 
  of 1965 (16 U.S.C 460l 5).                                              
     (c) Additional Limitation on Use.--The property conveyed under       
  subsection (a) shall not be used for commercial purposes.               
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Administrator. The cost of   
  the survey shall be borne by the City.                                  
     (e) Additional Terms and Conditions.--The Administrator may require  
  such additional terms and conditions in connection with the conveyance  
  under subsection (a) as the Administrator considers appropriate to      
  protect the interests of the United States.                             
          PART II--NAVY CONVEYANCES                                               


                    SEC. 2841. TRANSFER OF JURISDICTION, CENTERVILLE BEACH NAVAL  
          STATION, HUMBOLDT COUNTY, CALIFORNIA.                                   
     (a) Transfer Authorized.--The Secretary of the Navy may transfer,    
  without reimbursement, to the administrative jurisdiction of the        
  Secretary of the Interior the real property, including any improvements 
  thereon, consisting of the closed Centerville Beach Naval Station in    
  Humboldt County, California, for the purpose of permitting the Secretary
  of the Interior to manage the real property as open space or for other  
  public purposes.                                                        
     (b) Legal Description.--The exact acreage and legal description of   
  the real property to be transferred under this section shall be         
  determined by a survey satisfactory to the Secretary of the Navy. The   
  cost of the survey shall be borne by the Secretary of the Interior.     
     (c) Additional Terms and Conditions.--The Secretary of the Navy may  
  require such additional terms and conditions in connection with the     
  transfer under subsection (a) as the Secretary of the Navy considers    
  appropriate to protect the interests of the United States.              

          SEC. 2842. LAND CONVEYANCE, PORT OF LONG BEACH, CALIFORNIA.             

     (a) Conveyance Authorized.--The Secretary of the Navy may convey to  
  the City of Long Beach, California, acting by and through its Board of  
  Harbor Commissioners (in this section referred to as the ``City''), all 
  right, title, and interest of the United States in and to up to 11.08   
  acres of real property, including any improvements thereon, comprising a
  portion of the Navy Mole at the former Long Beach Naval Complex, Long   
  Beach, California, for the purpose of permitting the City to use the    
  property to support the reuse of other former Navy property conveyed to 
  the City.                                                               
     (b) Consideration.--(1) Subject to paragraph (2), as consideration   
  for the conveyance under subsection (a), the City shall--               
       (A) convey to the Secretary all right, title, and interest of the   
   City in and to a parcel of real property of equal size on the Mole that 
   is acceptable to the Secretary; and                                     
       (B) construct on the property conveyed under subparagraph (A)       
   suitable replacement fuel transfer and storage facilities for the Navy, 
   similar or equivalent to the facilities on the property to be conveyed  
   under subsection (a), as determined necessary by the Secretary.         
     (2) If the Secretary determines that replacement fuel transfer and   
  storage facilities are not required by the Navy, the Secretary may make 
  the conveyance under subsection (a) at no cost to the City.             
     (c) Time for Conveyance.--Unless the Secretary makes the             
  determination referred to in subsection (b)(2), the conveyance to the   
  City authorized by subsection (a) shall be made only after the Secretary
  determines that the replacement fuel transfer and storage facilities    
  have been constructed and are ready for use.                            
     (d) Construction Schedule.--The City shall construct the replacement 
  fuel transfer and storage facilities pursuant to such schedule and in   
  such a manner so as to not interrupt or otherwise adversely affect the  
  capability of the Navy to accomplish its mission.                       
     (e) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsections (a) and (b) shall 
  be determined by surveys satisfactory to the Secretary. The City shall  
  be responsible for conducting the surveys.                              
     (f) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyances under
  this section as the Secretary considers appropriate to protect the      
  interests of the United States.                                         

          SEC. 2843. CONVEYANCE OF PIER, NAVAL BASE, SAN DIEGO, CALIFORNIA.       

     (a) Conveyance Authorized.--(1) The Secretary of the Navy may convey,
  without consideration, to the San Diego Aircraft Carrier Museum or its  
  designee (in this section referred to as the ``Museum'') all right,     
  title, and interest of the United States in and to the property known as
  Pier 11A at Naval Base, San Diego, California, together with associated 
  structures and interests in the land underlying the pier, if any, for   
  the purpose of permitting the Museum to use the property to berth a     
  vessel and operate a museum for the general public.                     
     (2) The Secretary may not make the conveyance until such time as the 
  Museum certifies that the Museum has acquired an interest in property   
  from the State of California or a political subdivision of the State to 
  facilitate the use of the conveyed pier to berth a vessel and operate a 
  museum for the general public.                                          
     (b) Assumption of Liability.--The Museum shall expressly accept any  
  and all liability pertaining to the physical condition of the property  
  conveyed under subsection (a) and shall hold the United States harmless 
  from any and all liability arising from the property's physical         
  condition.                                                              
     (c) Reimbursement for Costs of Conveyance.--(1) The Museum shall     
  reimburse the Secretary for the excess costs incurred by the Secretary  
  for any environmental assessment, study, or analysis, or for any other  
  excess costs incurred by the Secretary, in connection with the          
  conveyance authorized by this section, if the excess costs were incurred
  as a result of a request by the Museum. In this paragraph, the term     
  ``excess costs'' means costs in excess of those costs considered        
  reasonable and necessary by the Secretary to comply with existing law to
  make the conveyance authorized by subsection (a).                       
     (2) Section 2695(c) of title 10, United States Code, shall apply to  
  any amount received by the Secretary under this subsection.             
     (d) Description of Property.--The exact acreage and legal description
  of the property to be conveyed under subsection (a) shall be determined 
  by a survey satisfactory to the Secretary. The cost of the survey shall 
  be borne by the Museum.                                                 
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         

                    SEC. 2844. MODIFICATION OF AUTHORITY FOR CONVEYANCE OF NAVAL  
          COMPUTER AND TELECOMMUNICATIONS STATION, CUTLER, MAINE.                 
     Section 2853(a) of the Military Construction Authorization Act for   
  Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A 430) is 
  amended by inserting ``any or'' before ``all right''.                   

                    SEC. 2845. LAND TRANSFER AND CONVEYANCE, NAVAL SECURITY GROUP 
          ACTIVITY, WINTER HARBOR, MAINE.                                         
     (a) Transfer of Jurisdiction of Schoodic Point Property              
  Authorized.--(1) The Secretary of the Navy may transfer to the Secretary
  of the Interior administrative jurisdiction of a parcel of real         
  property, including any improvements thereon and appurtenances thereto, 
  consisting of approximately 26 acres as generally depicted as Tract 15  
  116 on the map entitled ``Acadia National Park Schoodic Point Area'',   
  numbered 123/80,418 and dated May 2001. The map shall be on file and    
  available for inspection in the appropriate offices of the National Park
  Service.                                                                
     (2) The transfer authorized by this subsection shall occur, if at    
  all, concurrently with the reversion of administrative jurisdiction of a
  parcel of real property consisting of approximately 71 acres, as        
  depicted as Tract 15 115 on the map referred to in paragraph (1), from  
  the Secretary of the Navy to the Secretary of the Interior as authorized
  by Public Law 80 260 (61 Stat. 519) and to be executed on or about June 
  30, 2002.                                                               
     (b) Conveyance of Corea and Winter Harbor Properties Authorized.--The
  Secretary of the Navy may convey, without consideration, to the State of
  Maine, any political subdivision of the State of Maine, or any          
  tax-supported agency in the State of Maine, all right, title, and       
  interest of the United States in and to any of the parcels of real      
  property, including any improvements thereon and appurtenances thereto, 
  consisting of approximately 485 acres and comprising the former         
  facilities of the Naval Security Group Activity, Winter Harbor, Maine,  
  located in Hancock County, Maine, less the real property described in   
  subsection (a)(1), for the purpose of economic redevelopment.           
     (c) Transfer of Personal Property.--The Secretary of the Navy may    
  transfer, without consideration, to the Secretary of the Interior in the
  case of the real property transferred under subsection (a), or to any   
  recipient of such real property in the case of real property conveyed   
  under subsection (b), any or all personal property associated with the  
  real property so transferred or conveyed, including any personal        
  property required to continue the maintenance of the infrastructure of  
  such real property (including the generators for an uninterrupted power 
  supply in building 154 at the Corea site).                              
     (d) Maintenance of Property Pending Conveyance.--(1) The Secretary of
  the Navy shall maintain any real property, including any improvements   
  thereon, appurtenances thereto, and supporting infrastructure, to be    
  conveyed under subsection (b) in accordance with the protection and     
  maintenance standards specified in section 101 47.4913 of title 41, Code
  of Federal Regulations, until the earlier of--                          
       (A) the date of the conveyance of such real property under          
   subsection (b); or                                                      
     (B) September 30, 2003.                                               

     (2) The requirement in paragraph (1) shall not be construed as       
  authority to improve the real property, improvements, and infrastructure
  referred to in that paragraph so as to bring such real property,        
  improvements, or infrastructure into compliance with any zoning or      
  property maintenance codes or to repair any damage to such improvements 
  and infrastructure caused by natural accident or disaster.              
     (e) Interim Lease.--(1) Until such time as any parcel of real        
  property to be conveyed under subsection (b) is conveyed by deed under  
  that subsection, the Secretary of the Navy may lease such parcel to any 
  person or entity determined by the Secretary to be an appropriate lessee
  of such parcel.                                                         
     (2) The amount of rent for a lease under paragraph (1) shall be the  
  amount determined by the Secretary to be appropriate, and may be an     
  amount less than the fair market value of the lease.                    
     (f) Reimbursement for Environmental and Other Assessments.--(1) The  
  Secretary of the Navy may require each recipient of real property       
  conveyed under subsection (b) to reimburse the Secretary for the excess 
  costs incurred by the Secretary for any environmental assessment, study,
  or analysis carried out by the Secretary in connection with the         
  conveyance of such property, if the excess costs were incurred as a     
  result of a request by the recipient. In this paragraph, the term       
  ``excess costs'' means costs in excess of those costs considered        
  reasonable and necessary by the Secretary to comply with existing law to
  make the conveyance to the recipient.                                   
     (2) Section 2695(c) of title 10, United States Code, shall apply to  
  any amount received by the Secretary under this subsection.             
     (g) Description of Property.--The exact acreage and legal description
  of the real property transferred under subsection (a), and each parcel  
  of real property conveyed under subsection (b), shall be determined by a
  survey satisfactory to the Secretary of the Navy. The cost of any survey
  for real property conveyed under subsection (b) shall be borne by the   
  recipient of the real property.                                         
     (h) Additional Terms and Conditions.--The Secretary of the Navy may  
  require such additional terms and conditions in connection with any     
  conveyance under subsection (b), and any lease under subsection (e), as 
  the Secretary considers appropriate to protect the interests of the     
  United States.                                                          

          SEC. 2846. LAND ACQUISITION, PERQUIMANS COUNTY, NORTH CAROLINA.         

     The Secretary of the Navy may, using funds previously appropriated   
  for such purpose, acquire any and all right, title, and interest in and 
  to a parcel of real property, including improvements thereon, consisting
  of approximately 240 acres, or any portion thereof, in Perquimans       
  County, North Carolina, for purposes of including such parcel in the    
  Harvey Point Defense Testing Activity, Hertford, North Carolina.        

                    SEC. 2847. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE  
          PLANT, TOLEDO, OHIO.                                                    
     (a) Conveyance Authorized.--(1) The Secretary of the Navy may convey,
  without consideration, to the Toledo-Lucas County Port Authority, Ohio  
  (in this section referred to as the ``Port Authority''), any or all     
  right, title, and interest of the United States in and to a parcel of   
  real property, including any improvements thereon, consisting of        
  approximately 29 acres and comprising the Naval Weapons Industrial      
  Reserve Plant, Toledo, Ohio.                                            
     (2) The Secretary may include in the conveyance under paragraph (1)  
  such facilities, equipment, fixtures, and other personal property       
  located or based on the parcel conveyed under that paragraph, or used in
  connection with the parcel, as the Secretary determines to be excess to 
  the Navy.                                                               
     (b) Lease Authority.--Until such time as the real property described 
  in subsection (a)(1) is conveyed by deed, the Secretary may lease such  
  real property, and any personal property described in subsection (a)(2),
  to the Port Authority in exchange for such security, fire protection,   
  and maintenance services as the Secretary considers appropriate.        
     (c) Conditions of Conveyance.--The conveyance under subsection (a),  
  and any lease under subsection (b), shall be subject to the conditions  
  that the Port Authority--                                               
       (1) accept the real and personal property concerned in their        
   condition at the time of the conveyance or lease, as the case may be;   
   and                                                                     
       (2) except as provided in subsection (d), use the real and personal 
   property concerned, whether directly or through an agreement with a     
   public or private entity, for economic development or such other public 
   purposes as the Port Authority considers appropriate.                   
     (d) Subsequent Use.--(1) Subject to the approval of the Secretary,   
  the Port Authority may sublease real property or personal property      
  covered by a lease under subsection (b) to another person for economic  
  development or such other public purposes as the Port Authority         
  considers appropriate.                                                  
     (2) Following the conveyance of real property under subsection (a),  
  the Port Authority may lease or reconvey the real property, and any     
  personal property conveyed with such real property under that           
  subsection, for economic development or such other public purposes as   
  the Port Authority considers appropriate.                               
     (e) Reimbursement for Costs of Conveyance and Lease.--(1) The Port   
  Authority shall reimburse the Secretary for the excess costs incurred by
  the Secretary for any environmental assessment, study, or analysis, or  
  for any other excess costs incurred by the Secretary, in connection with
  the conveyance authorized by this section, if the excess costs were     
  incurred as a result of a request by the Port Authority. In this        
  paragraph, the term ``excess costs'' means costs in excess of those     
  costs considered reasonable and necessary by the Secretary to comply    
  with existing law to make the conveyance authorized by subsection (a).  
     (2) Section 2695(c) of title 10, United States Code, shall apply to  
  any amount received by the Secretary under this subsection.             
     (f) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a)(1), and an     
  appropriate inventory or other description of the personal property to  
  be conveyed under subsection (a)(2), shall be determined by a survey and
  other means satisfactory to the Secretary. The cost of the survey shall 
  be borne by the Port Authority.                                         
     (g) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a)(1), and any lease under subsection (b), as the Secretary 
  considers appropriate to protect the interests of the United States.    

                    SEC. 2848. MODIFICATION OF LAND CONVEYANCE, FORMER UNITED     
          STATES MARINE CORPS AIR STATION, EAGLE MOUNTAIN LAKE, TEXAS.            
     Section 5 of Public Law 85 258 (71 Stat. 583) is amended by inserting
  before the period at the end the following: ``or for the protection,    
  maintenance, and operation of other Texas National Guard facilities''.  
          PART III--AIR FORCE CONVEYANCES                                         


                    SEC. 2851. CONVEYANCE OF AVIGATION EASEMENTS, FORMER NORTON   
          AIR FORCE BASE, CALIFORNIA.                                             
     (a) Conveyance Required.--The Administrator of General Services shall
  convey, without consideration, to the Inland Valley Development Agency  
  (the redevelopment authority for former Norton Air Force Base,          
  California) two avigation easements (identified as APN 289 231 08 and   
  APN 289 232 08) held by the United States.                              
     (b) Condition of Conveyance.--The conveyance required by subsection  
  (a) shall be subject to the condition that, if the recipient sells one  
  or both of the easements conveyed under subsection (a), the recipient   
  shall pay to the United States an amount equal to the lesser of--       
     (1) the sale price of the easement; or                                

     (2) the fair market value of the easement.                            

     (c) Duration of Condition.--The condition specified in subsection (b)
  shall apply only to a conveyance that occurs during the 10-year period  
  beginning on the date the Administrator makes the conveyance required by
  subsection (a).                                                         

                    SEC. 2852. REEXAMINATION OF LAND CONVEYANCE, LOWRY AIR FORCE  
          BASE, COLORADO.                                                         
     The Secretary of the Air Force shall reevaluate the terms and        
  conditions of the pending negotiated sale agreement with the Lowry      
  Redevelopment Authority for certain real property at Lowry Air Force    
  Base, Colorado, in light of changed circumstances regarding the         
  property, including changes in the flood plain designations affecting   
  some of the property, to determine whether the changed circumstances    
  warrant a reduction in the amount of consideration otherwise required   
  under the agreement or other modifications to the agreement.            
          SEC. 2853. WATER RIGHTS CONVEYANCE, ANDERSEN AIR FORCE BASE, GUAM.      

     (a) Authority To Convey.--In conjunction with the conveyance of the  
  water supply system for Andersen Air Force Base, Guam, under the        
  authority of section 2688 of title 10, United States Code, and in       
  accordance with all the requirements of that section, the Secretary of  
  the Air Force may convey all right, title, and interest of the United   
  States, or such lesser estate as the Secretary considers appropriate to 
  serve the interests of the United States, in the water rights related to
  the following Air Force properties located on Guam:                     

     (1) Andy South, also known as the Andersen Administrative Annex.      

     (2) Marianas Bonins Base Command.                                     

       (3) Andersen Water Supply Annex, also known as the Tumon Water Well 
   or the Tumon Maui Well.                                                 
     (b) Additional Requirements.--The Secretary may exercise the         
  authority contained in subsection (a) only if the Secretary--           
       (1) determines that adequate supplies of potable groundwater exist  
   under the main base and northwest field portions of Andersen Air Force  
   Base to meet the current and long-term requirements of the installation 
   for water;                                                              
       (2) determines that such supplies of groundwater are economically   
   obtainable; and                                                         
       (3) requires the conveyee of the water rights under subsection (a)  
   to provide a water system capable of meeting the water supply needs of  
   the main base and northwest field portions of Andersen Air Force Base,  
   as determined by the Secretary.                                         
     (c) Interim Water Supplies.--If the Secretary determines that it is  
  in the best interests of the United States to transfer title to the     
  water rights and utility systems at Andy South and Andersen Water Supply
  Annex before placing into service a replacement water system and well   
  field on Andersen Air Force Base, the Secretary may require that the    
  United States have the primary right to all water produced from Andy    
  South and Andersen Water Supply Annex until the replacement water system
  and well field is placed into service and operates to the satisfaction  
  of the Secretary. In exercising the authority provided by this          
  subsection, the Secretary may retain a reversionary interest in the     
  water rights and utility systems at Andy South and Andersen Water Supply
  Annex until such time as the replacement water system and well field is 
  placed into service and operates to the satisfaction of the Secretary.  
     (d) Sale of Excess Water Authorized.--(1) As part of the conveyance  
  of water rights under subsection (a), the Secretary may authorize the   
  conveyee of the water system to sell to public or private entities such 
  water from Andersen Air Force Base as the Secretary determines to be    
  excess to the needs of the United States. In the event the Secretary    
  authorizes the conveyee to resell water, the Secretary shall negotiate a
  reasonable return to the United States of the value of such excess water
  sold by the conveyee, which return the Secretary may receive in the form
  of reduced charges for utility services provided by the conveyee.       
     (2) If the Secretary cannot meet the requirements of subsection (b), 
  and the Secretary determines to proceed with a water utility system     
  conveyance under section 2688 of title 10, United States Code, without  
  the conveyance of water rights, the Secretary may provide in any such   
  conveyance that the conveyee of the water system may sell to public or  
  private entities such water from Andy South and Andersen Water Supply   
  Annex as the Secretary determines to be excess to the needs of the      
  United States. The Secretary shall negotiate a reasonable return to the 
  United States of the value of such excess water sold by the conveyee,   
  which return the Secretary may receive in the form of reduced charges   
  for utility services provided by the conveyee.                          
     (e) Treatment of Water Rights.--For purposes of section 2688 of title
  10, United States Code, the water rights referred to in subsection (a)  
  shall be considered as part of a utility system (as that term is defined
  in subsection (h)(2) of such section).                                  

                    SEC. 2854. CONVEYANCE OF SEGMENT OF LORING PETROLEUM PIPELINE,
          MAINE, AND RELATED EASEMENTS.                                           
     (a) Conveyance Authorized.--The Secretary of the Air Force may       
  convey, without consideration, to the Loring Development Authority,     
  Maine (in this section referred to as the ``Authority''), all right,    
  title, and interest of the United States in and to the segment of the   
  Loring Petroleum (POL) Pipeline, Maine, consisting of approximately 27  
  miles in length and running between the Searsport terminal and Bangor   
  Air National Guard Base.                                                
     (b) Related Easements.--As part of the conveyance authorized by      
  subsection (a), the Secretary may convey to the Authority, without      
  consideration, all right, title, and interest of the United States in   
  and to any easements or rights-of-way necessary for the operation or    
  maintenance of the segment of pipeline conveyed under that subsection.  
     (c) Reimbursement for Costs of Conveyance.--(1) The Authority shall  
  reimburse the Secretary for the excess costs incurred by the Secretary  
  for any environmental assessment, study, or analysis, or for any other  
  excess costs incurred by the Secretary, in connection with the          
  conveyance authorized by this section, if the excess costs were incurred
  as a result of a request by the Authority. In this paragraph, the term  
  ``excess costs'' means costs in excess of those costs considered        
  reasonable and necessary by the Secretary to comply with existing law to
  make the conveyance authorized by subsection (a).                       
     (2) Section 2695(c) of title 10, United States Code, shall apply to  
  any amount received by the Secretary under this subsection.             
     (d) Description of Property.--The exact acreage and legal description
  of the segment of pipeline conveyed under subsection (a), and of any    
  easements or rights-of-way conveyed under subsection (b), shall be      
  determined by surveys and other means satisfactory to the Secretary. The
  cost of any survey or other services performed at the direction of the  
  Secretary under the preceding sentence shall be borne by the Authority. 
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyances under
  this section as the Secretary considers appropriate to protect the      
  interests of the United States.                                         

                    SEC. 2855. LAND CONVEYANCE, PETROLEUM TERMINAL SERVING FORMER 
          LORING AIR FORCE BASE AND BANGOR AIR NATIONAL GUARD BASE, MAINE.        
     (a) Conveyance Authorized.--(1) The Secretary of the Air Force may   
  convey to the Maine Port Authority of the State of Maine (in this       
  section referred to as the ``Authority'') all right, title, and interest
  of the United States in and to the Petroleum Terminal (POL) at Mack     
  Point, Searsport, Maine, which served former Loring Air Force Base and  
  Bangor Air National Guard Base, Maine.                                  
    (2) The conveyance under paragraph (1) may include the following:     

       (A) A parcel of real property, including any improvements thereon,  
   consisting of approximately 20 acres and comprising a portion of the    
   Petroleum Terminal.                                                     
       (B) Any additional fuel tanks, other improvements, and equipment    
   located on the 43-acre parcel of property adjacent to the property      
   described in subparagraph (A), and leased by the Secretary as of the    
   date of the enactment of this Act, which constitutes the remaining      
   portion of the Petroleum Terminal.                                      
     (b) Condition of Conveyance.--The Secretary may not make the         
  conveyance under subsection (a) unless the Authority agrees to utilize  
  the property to be conveyed under that subsection solely for economic   
  development purposes.                                                   
     (c) Consideration.--(1) As consideration for the conveyance under    
  subsection (a), the Authority shall lease to the Secretary approximately
  one acre of the real property conveyed under that subsection, together  
  with any improvements thereon, that constitutes the Aerospace Fuels     
  Laboratory (also known as Building 14).                                 
     (2) The real property leased under this subsection shall include the 
  parking lot, outbuildings, and other improvements associated with the   
  Aerospace Fuels Laboratory and such easements of ingress and egress to  
  the real property, including easements for utilities, as are required   
  for the operations of the Aerospace Fuels Laboratory.                   
     (3) As part of the lease of real property under this subsection, the 
  Authority shall maintain around the real property for the term of the   
  lease a zone, not less than 75 feet in depth, free of improvements or   
  encumbrances.                                                           
     (4) The lease under this subsection shall be without cost to the     
  United States.                                                          
     (5) The term of the lease under this subsection may not exceed 25    
  years. If operations at the Aerospace Fuels Laboratory cease before the 
  expiration of the term of the lease otherwise provided for under this   
  subsection, the lease shall be deemed to have expired upon the cessation
  of such operations.                                                     
     (d) Conveyance Contingent on Expiration of Lease of Fuel Tanks.--The 
  Secretary may not make the conveyance under subsection (a) until the    
  expiration of the lease referred to in paragraph (2)(B) of that         
  subsection.                                                             
     (e) Reimbursement for Costs of Conveyance.--(1) The Authority shall  
  reimburse the Secretary for the excess costs incurred by the Secretary  
  for any environmental assessment, study, or analysis, or for any other  
  excess costs incurred by the Secretary, in connection with the          
  conveyance authorized by this section, if the excess costs were incurred
  as a result of a request by the Authority. In this paragraph, the term  
  ``excess costs'' means costs in excess of those costs considered        
  reasonable and necessary by the Secretary to comply with existing law to
  make the conveyance authorized by subsection (a).                       
     (2) Section 2695(c) of title 10, United States Code, shall apply to  
  any amount received by the Secretary under this subsection.             
     (f) Description of Property.--The exact acreage and legal description
  of the real property conveyed under subsection (a) shall be determined  
  by a survey satisfactory to the Secretary. The cost of the survey shall 
  be borne by the Authority.                                              
     (g) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a), and the lease under subsection (c), as the Secretary    
  considers appropriate to protect the interests of the United States.    

                    SEC. 2856. LAND CONVEYANCES, CERTAIN FORMER MINUTEMAN III ICBM
          FACILITIES IN NORTH DAKOTA.                                             
     (a) Conveyances Authorized.--(1) The Secretary of the Air Force may  
  convey, without consideration, to the State Historical Society of North 
  Dakota (in this section referred to as the ``Historical Society'') all  
  right, title, and interest of the United States in and to parcels of    
  real property, together with any improvements thereon, of the Minuteman 
  III ICBM facilities of the former 321st Missile Group at Grand Forks Air
  Force Base, North Dakota, as follows:                                   
       (A) The parcel consisting of the launch facility designated         
   ``November 33''.                                                        
       (B) The parcel consisting of the missile alert facility and launch  
   control center designated ``Oscar-O''.                                  
     (2) The purpose of the conveyance of the facilities is to provide for
  the establishment of an historical site allowing for the preservation,  
  protection, and interpretation of the facilities.                       
     (b) Consultation.--The Secretary shall consult with the Secretary of 
  State and the Secretary of Defense in order to ensure that the          
  conveyances required by subsection (a) are carried out in accordance    
  with applicable treaties.                                               
     (c) Historical Site.--The Secretary may, in cooperation with the     
  Historical Society, enter into one or more cooperative agreements with  
  appropriate public or private entities or individuals in order to       
  provide for the establishment and maintenance of the historic site      
  referred to in subsection (a)(2).                                       
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by survey satisfactory to the Secretary. The cost of the     
  survey shall be borne by the Secretary.                                 
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyances under
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         

          SEC. 2857. LAND CONVEYANCES, CHARLESTON AIR FORCE BASE, SOUTH CAROLINA. 

     (a) Conveyance to State of South Carolina Authorized.--The Secretary 
  of the Air Force may convey, without consideration, to the State of     
  South Carolina (in this section referred to as the ``State''), all      
  right, title, and interest of the United States in and to a portion (as 
  determined under subsection (c)) of the real property, including any    
  improvements thereon, consisting of approximately 24 acres at Charleston
  Air Force Base, South Carolina, and comprising the Air Force Family     
  Housing Annex. The purpose of the conveyance is to facilitate the       
  Remount Road Project.                                                   
     (b) Conveyance to City of North Charleston Authorized.--The Secretary
  may convey, without consideration, to the City of North Charleston,     
  South Carolina (in this section referred to as the ``City''), all right,
  title, and interest of the United States in and to a portion (as        
  determined under subsection (c)) of the real property, including any    
  improvements thereon, referred to in subsection (a). The purpose of the 
  conveyance is to permit the use of the property by the City for         
  municipal purposes.                                                     
     (c) Determination of Portions of Property To Be Conveyed.--(1)       
  Subject to paragraph (2), the Secretary, the State, and the City shall  
  jointly determine the portion of the property referred to in subsection 
  (a) that is to be conveyed to the State under subsection (a) and the    
  portion of the property that is to be conveyed to the City under        
  subsection (b).                                                         
     (2) In determining under paragraph (1) the portions of property to be
  conveyed under this section, the portion to be conveyed to the State    
  shall be the minimum portion of the property required by the State for  
  the purpose specified in subsection (a), and the portion to be conveyed 
  to the City shall be the balance of the property.                       
     (d) Limitation on Conveyances.--The Secretary may not carry out the  
  conveyance of property authorized by subsection (a) or (b) until the    
  completion of an assessment of environmental contamination of the       
  property authorized to be conveyed by such subsection for purposes of   
  determining responsibility for environmental remediation of such        
  property.                                                               
     (e) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsections (a) and (b) shall 
  be determined by surveys satisfactory to the Secretary. The cost of the 
  survey for the property to be conveyed under subsection (a) shall be    
  borne by the State, and the cost of the survey for the property to be   
  conveyed under subsection (b) shall be borne by the City.               
     (f) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyances under
  subsections (a) and (b) as the Secretary considers appropriate to       
  protect the interests of the United States.                             

                    SEC. 2858. TRANSFER OF JURISDICTION, MUKILTEO TANK FARM,      
          EVERETT, WASHINGTON.                                                    
     (a) Transfer Authorized.--The Secretary of the Air Force shall       
  transfer, without reimbursement, to the Secretary of Commerce           
  administrative jurisdiction over a parcel of real property, including   
  improvements thereon, consisting of approximately 1.1 acres located at  
  the Mukilteo Tank Farm in Everett, Washington, and containing the       
  Mukilteo Research Center facility of the National Marine Fisheries      
  Service.                                                                
     (b) Time for Conveyance.--The Secretary of the Air Force shall make  
  the transfer under subsection (a) at the same time that the Secretary   
  makes the conveyance authorized by section 2866 of the Military         
  Construction Authorization Act for Fiscal Year 2001 (division B of the  
  Spence Act; 114 Stat. 1654A 436).                                       
     (c) Exchange.--With the consent of the Port Authority for Everett,   
  Washington, the Secretary of Commerce may exchange with the Port        
  Authority all or any portion of the property transferred under          
  subsection (a) for a parcel of real property of equal area at the       
  Mukilteo Tank Farm that is owned by the Port Authority.                 
     (d) Administration.--The Secretary of Commerce shall administer the  
  property transferred under subsection (a) or received under subsection  
  (c) through the Administrator of the National Oceanic and Atmospheric   
  Administration as part of the Administration. The Administrator shall   
  use the property as the location of a research facility, and may        
  construct a new facility on the property for such research purposes as  
  the Administrator considers appropriate.                                
     (e) Effect of Failure to Utilize Transferred Property.--(1) If, after
  the 12-year period beginning on the date of the enactment of this Act,  
  the Administrator is not using any portion of the property transferred  
  under subsection (a) or received under subsection (c) for the purpose   
  specified in subsection (d), the Administrator shall convey, without    
  consideration, to the Port Authority for Everett, Washington, all right,
  title, and interest in and to such portion of the real property,        
  including improvements thereon.                                         
     (2) The Port Authority shall use any real property conveyed to the   
  Port Authority under this subsection for development and operation of a 
  port facility and for other public purposes.                            
     (f) Legal Description.--The exact acreage and legal description of   
  the real property to be transferred under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary of the Air Force.  
  The cost of the survey shall be borne by the Secretary of Commerce.     
     (g) Additional Terms and Conditions.--The Secretary of the Air Force 
  may require such additional terms and conditions in connection with the 
  transfer under subsection (a) as the Secretary of the Air Force         
  considers appropriate to protect the interests of the United States.    
     (h) Conforming Amendment.--Section 2866(a) of the Military           
  Construction Authorization Act for Fiscal Year 2001 (division B of the  
  Spence Act; 114 Stat. 1654A 436) is amended by striking ``22 acres'' and
  inserting ``20.9 acres''.                                               

           Subtitle E--Other Matters                                               


          SEC. 2861. MANAGEMENT OF THE PRESIDIO OF SAN FRANCISCO.                 

     (a) Authority to Lease Certain Housing Units for Use as Army         
  Housing.--Title I of division I of the Omnibus Parks and Public Lands   
  Management Act of 1996 (Public Law 104 333; 16 U.S.C. 460bb note) is    
  amended by adding at the end the following new section:                 
                    ``SEC. 107. CONDITIONAL AUTHORITY TO LEASE CERTAIN HOUSING    
          UNITS WITHIN THE PRESIDIO.                                              
     ``(a) Availability of Housing Units for Long-Term Army               
  Lease.--Subject to subsection (c), the Trust shall make available for   
  lease, to those persons designated by the Secretary of the Army and for 
  such length of time as requested by the Secretary of the Army, 22       
  housing units located within the Presidio that are under the            
  administrative jurisdiction of the Trust and specified in the agreement 
  between the Trust and the Secretary of the Army in existence as of the  
  date of the enactment of this section.                                  
     ``(b) Lease Amount.--The monthly amount charged by the Trust for the 
  lease of a housing unit under this section shall be equivalent to the   
  monthly rate of the basic allowance for housing that the occupant of the
  housing unit is entitled to receive under section 403 of title 37,      
  United States Code.                                                     
     ``(c) Condition on Continued Availability of Housing                 
  Units.--Effective after the end of the four-year period beginning on the
  date of the enactment of this section, the Trust shall have no          
  obligation to make housing units available under subsection (a) unless, 
  during that four-year period, the Secretary of the Treasury purchases   
  new obligations of at least $80,000,000 issued by the Trust under       
  section 104(d)(2). In the event that this condition is not satisfied,   
  the existing agreement referred to in subsection (a) shall be renewed on
  the same terms and conditions for an additional five years.''.          
     (b) Increased Borrowing Authority and Technical                      
  Corrections.--Paragraphs (2) and (3) of section 104(d) of title I of    
  division I of the Omnibus Parks and Public Lands Management Act of 1996,
  as amended by section 334 of appendix C of Public Law 106 113 (113 Stat.
  1501A 198) and amended and redesignated by section 101(13) of Public Law
  106 176 (114 Stat. 25), are amended--                                   
       (1) in paragraph (2), by striking ``including a review of the       
   creditworthiness of the loan and establishment of a repayment           
   schedule,'' the second place it appears; and                            
     (2) in paragraph (3)--                                                

     (A) by striking ``$50,000,000'' and inserting ``$150,000,000''; and   

     (B) by striking ``paragraph (3) of''.                                 


                    SEC. 2862. TRANSFER OF JURISDICTION FOR DEVELOPMENT OF AIR    
          FORCE MORALE, WELFARE, AND RECREATION FACILITY, PARK CITY, UTAH.        
     (a) Transfer Authorized.--(1) The Secretary of the Interior may      
  transfer, without reimbursement, to the administrative jurisdiction of  
  the Secretary of the Air Force a parcel of real property in Park City,  
  Utah, including any improvements thereon, that consists of approximately
  35 acres, is located on the north side of State highway 248 in township 
  2 south, range 4 east, Salt Lake meridian, and is designated as parcel 3
  by the Bureau of Land Management. The real property to be transferred   
  under this paragraph does not include any lands located on the south    
  side of State highway 248.                                              
     (2) The transfer shall be subject to existing rights, except that the
  Secretary of the Interior shall terminate any lease with respect to the 
  parcel issued under the Act of June 14, 1926 (commonly known as the     
  Recreation and Public Purposes Act; 43 U.S.C. 689 et seq.), and still in
  effect as of the date of the enactment of this Act.                     
     (b) Use of Transferred Land.--(1) The Secretary of the Air Force may 
  use the real property transferred under subsection (a) as the location  
  for an Air Force morale, welfare, and recreation facility to be         
  developed using nonappropriated funds.                                  
     (2) The Secretary of the Air Force may return the transferred        
  property (or property acquired in exchange for the transferred property 
  under subsection (c)) to the administrative jurisdiction of the         
  Secretary of the Interior at any time upon certifying that development  
  of the morale, welfare, and recreation facility would not be in the best
  interests of the Government.                                            
     (c) Subsequent Conveyance Authority.--(1) In lieu of developing the  
  Air Force morale, welfare, and recreation facility on the real property 
  transferred under subsection (a), the Secretary of the Air Force may    
  convey or lease the property to the State of Utah, a local government,  
  or a private entity in exchange for other property to be used as the    
  site of the facility.                                                   
     (2) The values of the properties exchanged by the Secretary under    
  this subsection either shall be equal, or if they are not equal, the    
  values shall be equalized by the payment of money to the grantor or to  
  the Secretary as the circumstances require. The conveyance or lease     
  shall be on such other terms as the Secretary of the Air Force considers
  to be advantageous to the development of the facility.                  
     (d) Alternative Development Authority.--The Secretary of the Air     
  Force may lease the real property transferred under subsection (a), or  
  any property acquired pursuant to subsection (c), to another party and  
  may enter into a contract with the party for the design, construction,  
  and operation of the Air Force morale, welfare, and recreation facility.
  The Secretary of the Air Force may authorize the contractor to operate  
  the facility as both a military and a commercial operation if the       
  Secretary determines that such an authorization is a necessary incentive
  for the contractor to agree to design, construct, and operate the       
  facility.                                                               
     (e) Legal Description.--The exact acreage and legal description of   
  the real property to be transferred under subsection (a) shall be       
  determined by a survey. The cost of the survey shall be borne by the    
  Secretary of the Air Force.                                             

                    SEC. 2863. ALTERNATE SITE FOR UNITED STATES AIR FORCE         
          MEMORIAL, PRESERVATION OF OPEN SPACE ON ARLINGTON RIDGE TRACT, AND      
          RELATED LAND TRANSFER AT ARLINGTON NATIONAL CEMETERY, VIRGINIA.         
    (a)  Definitions.--In this section:                                   

       (1) The term ``Arlington Naval Annex'' means the parcel of Federal  
   land located in Arlington County, Virginia, that is subject to transfer 
   to the administrative jurisdiction of the Secretary of the Army under   
   section 2881 of the Military Construction Authorization Act for Fiscal  
   Year 2000 (division B of Public Law 106 65; 113 Stat. 879).             
       (2) The term ``Foundation'' means the Air Force Memorial Foundation,
   which was authorized in Public Law 103 163 (107 Stat. 1973; 40 U.S.C.   
   1003 note) to establish a memorial in the District of Columbia or its   
   environs to honor the men and women who have served in the United States
   Air Force and its predecessors.                                         
       (3) The term ``Air Force Memorial'' means the United States Air     
   Force Memorial to be established by the Foundation.                     
       (4) The term ``Arlington Ridge tract'' means the parcel of Federal  
   land in Arlington County, Virginia, known as the Nevius Tract and       
   transferred to the Department of the Interior in 1953, that is bounded  
   generally by--                                                          
     (A) Arlington Boulevard (United States Route 50) to the north;        

     (B) Jefferson Davis Highway (Virginia Route 110) to the east;         

     (C) Marshall Drive to the south; and                                  

     (D) North Meade Street to the west.                                   

       (5) The term ``Section 29'' means a parcel of Federal land in       
   Arlington County, Virginia, that is currently administered by the       
   Secretary of the Interior within the boundaries of Arlington National   
   Cemetery and is identified as ``Section 29''.                           
    (b)  Use of Arlington Naval Annex as Site for Air Force Memorial.--   

       (1) Availability of site.--The Secretary of Defense shall make      
   available to the Foundation, without reimbursement, up to three acres of
   the Arlington Naval Annex, which the Foundation shall use as the        
   location for the Air Force Memorial in lieu of any previously approved  
   location for the Air Force Memorial. The land made available shall      
   include the promontory adjacent to, and the land underlying, Wing 8 of  
   Federal Office Building #2 in the northeast quadrant of the Arlington   
   Naval Annex.                                                            
       (2) Exception.--The requirement to use the land made available under
   paragraph (1) as the location for the Air Force Memorial, and the       
   prohibition on the use of any previously approved location, shall not   
   apply if the Secretary of Defense determines that it is physically      
   impracticable to construct the Air Force Memorial on such land on       
   account of the geological nature of the land.                           
       (3) Relation to other transfer authority.--Not later than six months
   after the date of the enactment of this Act, the Secretary of Defense   
   shall transfer to the Secretary of the Army administrative jurisdiction 
   over the Arlington Naval Annex site made available under this subsection
   for construction of the Air Force Memorial. Nothing in this subsection  
   alters the deadline for transfer of the remainder of the Arlington Naval
   Annex to the Secretary of the Army and remediation of the transferred   
   land for use as part of Arlington National Cemetery, as required by     
   section 2881 of the Military Construction Authorization Act for Fiscal  
   Year 2000.                                                              
    (c)  Site Preparation.--                                              

       (1) Preparation for construction.--Upon receipt of notification from
   the Foundation that the Foundation has sufficient funds to commence     
   construction of the Air Force Memorial, the Secretary of Defense, in    
   coordination with the Foundation, shall remove Wing 8 of Federal Office 
   Building #2 at the Arlington Naval Annex, as well as its associated     
   outbuilding and parking lot, and prepare the land made available under  
   subsection (b) for construction of the Air Force Memorial. In addition  
   to demolition and removal, such site preparation work may include       
   environmental remediation, installation of water, sewer, telephone,     
   electrical, and storm water management infrastructure necessary for the 
   memorial, installation of sidewalks consistent with the design of the   
   memorial compliant with the requirements of the Americans with          
   Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), and the placement of
   screening berms and mature evergreen trees between Federal Office       
   Building #2 and the memorial.                                           
       (2) Completion.--Not later than two years after the date on which   
   the Foundation provides the notification referred to in paragraph (1),  
   the Secretary of Defense shall complete the demolition and removal of   
   the structures and such site preparation work as the Secretary agrees to
   undertake under this subsection.                                        
       (3) Funding source.--The Secretary of Defense shall use amounts     
   appropriated for operation and maintenance to carry out the demolition  
   and removal work and site preparation described in paragraph (1).       
       (4) Assistance for displaced agency.--The Secretary of the Army     
   shall serve as the Executive Agent for the Ballistic Missile Defense    
   Organization in securing suitable sites, including, if necessary, sites 
   not currently owned by the United States, to replace offices lost as a  
   result of the demolition of Wing 8 of Federal Office Building #2 at the 
   Arlington Naval Annex.                                                  
    (d)  Construction of Air Force Memorial.--                            

       (1) Commencement.--Upon the demolition and removal of the structures
   required to be removed under subsection (c)(1), the Secretary of Defense
   shall permit the Foundation to commence construction of the Air Force   
   Memorial on the Arlington Naval Annex site made available under         
   subsection (b).                                                         
       (2) Oversight.--The Secretary of Defense shall have exclusive       
   authority in all matters relating to approval of the siting and design  
   of the Air Force Memorial on the Arlington Naval Annex site, and the    
   siting, design, and construction of the memorial on such site shall not 
   be subject to the requirements of the Commemorative Works Act (40 U.S.C.
   1001 et seq.).                                                          
       (3) Effect of failure to commence construction.--If, within five    
   years after the date of the enactment of this Act, the Foundation has   
   not commenced construction of the Air Force Memorial on the Arlington   
   Naval Annex site made available under subsection (b), the Secretary of  
   Defense may revoke the authority of the Foundation to use the site as   
   the location of the memorial.                                           
     (e) Access and Management of Air Force Memorial.--The Secretary of   
  the Army may enter into a cooperative agreement with the Foundation to  
  provide for management, maintenance, and repair of the Air Force        
  Memorial constructed on the Arlington Naval Annex site made available   
  under subsection (b) and to guarantee public access to the memorial.    
     (f) Limitation on Use of Arlington Naval Annex as Site for Other     
  Memorials or Museums.--Section 2881(b) of the Military Construction     
  Authorization Act for Fiscal Year 2000 (division B of Public Law 106 65;
  113 Stat. 879) is amended by striking paragraph (2) and inserting the   
  following new paragraph (2):                                            
     ``(2) The Secretary of Defense shall reserve not more than four acres
  of the Navy Annex property south of the existing Columbia Pike as a site
  for--                                                                   
       ``(A) a National Military Museum, if such site is recommended for   
   such purpose by the Commission on the National Military Museum          
   established under section 2901 and the Secretary of Defense considers   
   such site compatible with Arlington National Cemetery and the Air Force 
   Memorial; or                                                            
       ``(B) such other memorials or museums that the Secretary of Defense 
   considers compatible with Arlington National Cemetery and the Air Force 
   Memorial.''.                                                            
    (g)  Preservation of Arlington Ridge Tract.--                         

       (1) General rule.--After the date of the enactment of this Act, no  
   additional structure or memorials shall be constructed on the Arlington 
   Ridge tract.                                                            
       (2) Option for future burials.--Paragraph (1) does not prohibit the 
   eventual use of a portion of the Arlington Ridge tract as a location for
   in-ground burial sites and columbarium for the burial of individuals    
   eligible for burial in Arlington National Cemetery, if the development  
   of such sites is specifically authorized in a law enacted after the date
   of the enactment of this Act.                                           
    (h)  Land Transfer, Section  29.--                                    

       (1) Transfer required.--Not later than 30 days after the date of the
   enactment of this Act, the Secretary of the Interior shall transfer,    
   without reimbursement, to the Secretary of the Army administrative      
   jurisdiction over that portion of Section 29 designated as the interment
   zone and consisting of approximately 12 acres. The Secretary of the     
   Interior shall modify the boundaries of the George Washington Memorial  
   Parkway as may be necessary to reflect the land transfer required by    
   this subsection.                                                        
       (2) Use of transferred land.--The Secretary of the Army shall use   
   the transferred property for the development of in-ground burial sites  
   and columbarium that are designed to meet the contours of Section 29.   
       (3) Management of remainder.--The Secretary of the Interior shall   
   manage that portion of Section 29 not transferred under this subsection 
   in perpetuity to provide a natural setting and visual buffer for        
   Arlington House, the Robert E. Lee Memorial.                            
       (4) Repeal of obsolete law.--Section 2821(a) of the Military        
   Construction Authorization Act for Fiscal Year 1997 (division B of      
   Public Law 104 201; 110 Stat. 2791) is repealed.                        

                    SEC. 2864. ESTABLISHMENT OF MEMORIAL TO VICTIMS OF TERRORIST  
          ATTACK ON PENTAGON RESERVATION AND AUTHORITY TO ACCEPT MONETARY         
          CONTRIBUTIONS FOR MEMORIAL AND REPAIR OF PENTAGON.                      
     (a) Memorial Authorized.--The Secretary of Defense may establish a   
  memorial at the Pentagon Reservation dedicated to the victims of the    
  terrorist attack on the Pentagon that occurred on September 11, 2001.   
  The Secretary shall use necessary amounts in the Pentagon Reservation   
  Maintenance Revolving Fund established by section 2674(e) of title 10,  
  United States Code, including amounts deposited in the Fund under       
  subsection (c), to plan, design, construct, and maintain the memorial.  
     (b) Acceptance of Contributions.--The Secretary of Defense may accept
  monetary contributions made for the purpose of assisting in--           
       (1) the establishment of the memorial to the victims of the         
   terrorist attack; and                                                   
       (2) the repair of the damage caused to the Pentagon Reservation by  
   the terrorist attack.                                                   
     (c) Deposit of Contributions.--The Secretary of Defense shall deposit
  contributions accepted under subsection (b) in the Pentagon Reservation 
  Maintenance Revolving Fund. The contributions shall be available for    
  expenditure only for the purposes specified in subsection (b).          

                    SEC. 2865. REPEAL OF LIMITATION ON COST OF RENOVATION OF      
          PENTAGON RESERVATION.                                                   
     Section 2864 of the Military Construction Authorization Act for      
  Fiscal Year 1997 (division B of Public Law 104 201; 110 Stat. 2806) is  
  repealed.                                                               

                    SEC. 2866. DEVELOPMENT OF UNITED STATES ARMY HERITAGE AND     
          EDUCATION CENTER AT CARLISLE BARRACKS, PENNSYLVANIA.                    
     (a) Authority To Enter into Agreement.--(1) The Secretary of the Army
  may enter into an agreement with the Military Heritage Foundation, a    
  nonprofit organization, for the design, construction, and operation of a
  facility for the United States Army Heritage and Education Center at    
  Carlisle Barracks, Pennsylvania (in this section referred to as the     
  ``facility'').                                                          
     (2) The facility is to be used for curation and storage of artifacts,
  research facilities, classrooms, and offices, and for education and     
  other activities, agreed to by the Secretary, relating to the heritage  
  of the Army. The facility may also be used to support such education and
  training as the Secretary considers appropriate.                        
     (b) Design and Construction.--The design of the facility shall be    
  subject to the approval of the Secretary. At the election of the        
  Secretary, the Secretary may--                                          
       (1) accept funds from the Military Heritage Foundation for the      
   design and construction of the facility; or                             
       (2) permit the Military Heritage Foundation to contract for the     
   design and construction of the facility.                                
     (c) Acceptance of Facility.--(1) Upon satisfactory completion, as    
  determined by the Secretary, of the facility, and upon the satisfaction 
  of any and all financial obligations incident thereto by the Military   
  Heritage Foundation, the Secretary shall accept the facility from the   
  Military Heritage Foundation, and all right, title, and interest in and 
  to the facility shall vest in the United States.                        
     (2) Upon becoming property of the United States, the facility shall  
  be under the jurisdiction of the Secretary.                             
     (d) Use of Certain Gifts.--(1) Under regulations prescribed by the   
  Secretary, the Commandant of the Army War College may, without regard to
  section 2601 of title 10, United States Code, accept, hold, administer, 
  invest, and spend any gift, devise, or bequest of personnel property of 
  a value of $250,000 or less made to the United States if such gift,     
  devise, or bequest is for the benefit of the United States Army Heritage
  and Education Center.                                                   
     (2) The Secretary may pay or authorize the payment of any reasonable 
  and necessary expense in connection with the conveyance or transfer of a
  gift, devise, or bequest under this subsection.                         

     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the agreement        
  authorized to be entered into by subsection (a) as the Secretary        
  considers appropriate to protect the interests of the United States.    

                    SEC. 2867. EFFECT OF LIMITATION ON CONSTRUCTION OF ROADS OR   
          HIGHWAYS, MARINE CORPS BASE, CAMP PENDLETON, CALIFORNIA.                
     Section 2851(a) of the Military Construction Authorization Act for   
  Fiscal Year 1999 (division B of Public Law 105 261; 112 Stat. 2219) is  
  amended in the first sentence by inserting after ``maintain'' the       
  following: ``, notwithstanding any provision of State law to the        
  contrary,''.                                                            

                    SEC. 2868. ESTABLISHMENT OF WORLD WAR II MEMORIAL AT          
          ADDITIONAL LOCATION ON GUAM.                                            
     Section 2886 of the Military Construction Authorization Act for      
  Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A 441) is 
  amended--                                                               
       (1) in subsection (a), by inserting ``, and on Federal lands near   
   Yigo,'' after ``Fena Caves'';                                           
       (2) in the heading of subsection (b), by striking `` Memorial'' and 
   inserting `` Memorials''; and                                           
       (3) in subsections (b) and (c), by striking ``memorial'' each place 
   it appears and inserting ``memorials''.                                 

                    SEC. 2869. DEMONSTRATION PROJECT FOR PURCHASE OF FIRE,        
          SECURITY, POLICE, PUBLIC WORKS, AND UTILITY SERVICES FROM LOCAL         
          GOVERNMENT AGENCIES.                                                    
     (a) Extension.--Subsection (c) of section 816 of the National Defense
  Authorization Act for Fiscal Year 1995 (Public Law 103 337; 108 Stat.   
  2820), as added by section 2873 of the Strom Thurmond National Defense  
  Authorization Act for Fiscal Year 1999 (Public Law 105 261; 112 Stat.   
  2225), is amended by striking ``September 30, 2001.'' and inserting     
  ``January 31, 2002, with regard to fire-fighting and police services,   
  and September 30, 2003, with regard to other services described in      
  subsection (a).''.                                                      
     (b) Conforming Amendment.--Section 1206 of the Supplemental          
  Appropriations Act, 2001 (Public Law 107 20; 115 Stat. 161), is         
  repealed.                                                               

                    SEC. 2870. REPORT ON FUTURE LAND NEEDS OF UNITED STATES       
          MILITARY ACADEMY, NEW YORK, AND ADJACENT COMMUNITY.                     
     (a) Report Required.--Not later than February 1, 2002, the Secretary 
  of the Army shall submit to Congress a report evaluating the future     
  needs of the United States Military Academy for lands suitable for use  
  for military training and the feasibility of making unneeded lands      
  available to the Village of Highland Falls, New York, through fee simple
  conveyance, long-term lease under section 2667 of title 10, United      
  States Code, or other means.                                            
     (b) Consultation.--The Secretary shall prepare the report in         
  consultation with appropriate officials of the Village of Highland      
  Falls.                                                                  

                    SEC. 2871. NAMING OF PATRICIA C. LAMAR ARMY NATIONAL GUARD    
          READINESS CENTER, OXFORD, MISSISSIPPI.                                  
     The Oxford Army National Guard Readiness Center, Oxford, Mississippi,
  shall be known and designated as the ``Patricia C. Lamar Army National  
  Guard Readiness Center''. Any reference to that readiness center in any 
  law, regulation, map, document, record, or other paper of the United    
  States shall be considered to be a reference to the Patricia C. Lamar   
  Army National Guard Readiness Center.                                   

           TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL                         



      Sec. 2901. Short title.                                                 

            Sec. 2902. Withdrawal and reservation of lands for National       
      Training Center.                                                        
      Sec. 2903. Map and legal description.                                   

      Sec. 2904. Management of withdrawn and reserved lands.                  

      Sec. 2905. Water rights.                                                

            Sec. 2906. Environmental compliance and environmental response    
      requirements.                                                           
      Sec. 2907. West Mojave Coordinated Management Plan.                     

      Sec. 2908. Release of wilderness study areas.                           

      Sec. 2909. Training activity separation from utility corridors.         

      Sec. 2910. Duration of withdrawal and reservation.                      

      Sec. 2911. Extension of initial withdrawal and reservation.             

      Sec. 2912. Termination and relinquishment.                              

      Sec. 2913. Delegation of authority.                                     


          SEC. 2901. SHORT TITLE.                                                 

     This title may be cited as the ``Fort Irwin Military Land Withdrawal 
  Act of 2001''.                                                          
                    SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS FOR NATIONAL   
          TRAINING CENTER.                                                        
     (a) Withdrawal.--Subject to valid existing rights and except as      
  otherwise provided in this title, all public lands and interests in     
  lands described in subsection (c) are hereby withdrawn from all forms of
  appropriation under the general land laws, including the mining laws and
  mineral and geothermal leasing laws, and jurisdiction over such lands   
  and interests in lands withdrawn and reserved by this title is hereby   
  transferred to the Secretary of the Army.                               
     (b) Reservation.--The lands withdrawn under subsection (a) are       
  reserved for use by the Secretary of the Army for the following         
  purposes:                                                               
       (1) The conduct of combined arms military training at the National  
   Training Center.                                                        
       (2) The development and testing of military equipment at the        
   National Training Center.                                               
       (3) Other defense-related purposes consistent with the purposes     
   specified in paragraphs (1) and (2).                                    
     (4) Conservation and related research purposes.                       

     (c) Land Description.--The public lands and interests in lands       
  withdrawn and reserved by this section comprise approximately 110,000   
  acres in San Bernardino County, California, as generally depicted as    
  ``Proposed Withdrawal Land'' on the map entitled ``National Training    
  Center--Proposed Withdrawal of Public Lands for Training Purposes'',    
  dated September 21, 2000, and filed in accordance with section 2903.    
     (d) Changes in Use.--The Secretary of the Army shall consult with the
  Secretary of the Interior before using the lands withdrawn and reserved 
  by this section for any purpose other than those purposes identified in 
  subsection (b).                                                         
     (e) Indian Tribes.--Nothing in this title shall be construed as      
  altering any rights reserved for tribal use by treaty or Federal law.   
  The Secretary of the Army shall consult with federally recognized Indian
  tribes in the vicinity of the lands withdrawn under subsection (a)      
  before taking action affecting rights or cultural resources protected by
  treaty or Federal law.                                                  
          SEC. 2903. MAP AND LEGAL DESCRIPTION.                                   

     (a) Preparation of Map and Legal Description.--As soon as practicable
  after the date of the enactment of this Act, the Secretary of the       
  Interior shall--                                                        
       (1) publish in the Federal Register a notice containing the legal   
   description of the lands withdrawn and reserved by this title; and      
       (2) file a map and legal description of the lands withdrawn and     
   reserved by this title with the Committee on Energy and Natural         
   Resources of the Senate and the Committee on Resources of the House of  
   Representatives.                                                        
     (b) Legal Effect.--The map and legal description shall have the same 
  force and effect as if included in this title, except that the Secretary
  of the Interior may correct clerical and typographical errors in the map
  and legal description.                                                  
     (c) Availability.--Copies of the map and the legal description shall 
  be available for public inspection in the following offices:            
       (1) The offices of the California State Director, California Desert 
   District Office, and Riverside and Barstow Field Offices of the Bureau  
   of Land Management.                                                     
       (2) The Office of the Commander, National Training Center and Fort  
   Irwin.                                                                  
     (d) Costs.--The Secretary of the Army shall reimburse the Secretary  
  of the Interior for the costs incurred by the Secretary of the Interior 
  in implementing this section.                                           
          SEC. 2904. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.                  

     (a) General Management Authority.--During the period of the          
  withdrawal and reservation made by this title, the Secretary of the Army
  shall manage the lands withdrawn and reserved by this title for the     
  purposes specified in section 2902.                                     
     (b) Temporary Prohibition on Certain Use.--Military use of the lands 
  withdrawn and reserved by this title that result in ground disturbance, 
  as determined by the Secretary of the Army and the Secretary of the     
  Interior, are prohibited until the Secretary of the Army and the        
  Secretary of the Interior certify to Congress that there has been full  
  compliance with respect to such lands with the appropriate provisions of
  this title, the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.),
  the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 
  and other applicable laws.                                              
    (c)  Access Restrictions.--                                           

       (1) In general.--If the Secretary of the Army determines that       
   military operations, public safety, or national security require the    
   closure to the public of any road, trail, or other portion of the lands 
   withdrawn and reserved by this title, the Secretary may take such action
   as the Secretary determines necessary or desirable to effect and        
   maintain such closure.                                                  
       (2) Limitation.--Any closure under paragraph (1) shall be limited to
   the minimum areas and periods that the Secretary of the Army determines 
   are required for the purposes specified in such paragraph.              

       (3) Notice.--Immediately preceding and during any closure under     
   paragraph (1), the Secretary of the Army shall post appropriate warning 
   notices and take other steps, as necessary, to notify the public of the 
   closure.                                                                
     (d) Integrated Natural Resources Management Plan.--The Secretary of  
  the Army shall prepare and implement, in accordance with title I of the 
  Sikes Act (16 U.S.C. 670 et seq.), an integrated natural resources      
  management plan for the lands withdrawn and reserved by this title. In  
  addition to the elements required under the Sikes Act, the integrated   
  natural resources management plan shall include the following:          
       (1) A requirement that any hunting, fishing, and trapping on the    
   lands withdrawn and reserved by this title be conducted in accordance   
   with section 2671 of title 10, United States Code.                      
       (2) A requirement that the Secretary of the Army take necessary     
   actions to prevent, suppress, and manage brush and range fires occurring
   within the boundaries of Fort Irwin and brush and range fires occurring 
   outside the boundaries of Fort Irwin that result from military          
   activities at Fort Irwin.                                               
     (e) Firefighting.--Notwithstanding section 2465 of title 10, United  
  States Code, the Secretary of the Army may obligate funds appropriated  
  or otherwise available to the Secretary of the Army to enter into a     
  memorandum of understanding, cooperative agreement, or contract for fire
  fighting services to carry out the requirements of subsection (d)(2).   
  The Secretary of the Army shall reimburse the Secretary of the Interior 
  for costs incurred by the Secretary of the Interior to assist in        
  carrying out the requirements of such subsection.                       
     (f) Consultation With National Aeronautics and Space                 
  Administration.--In preparing and implementing any plan, report,        
  assessment, survey, opinion, or impact statement regarding the lands    
  withdrawn and reserved by this title, the Secretary of the Army shall   
  consult with the Administrator of the National Aeronautics and Space    
  Administration whenever proposed Army actions have the potential to     
  affect the operations or the environmental management of the Goldstone  
  Deep Space Communications Complex. The requirement for consultation     
  shall apply, at a minimum, to the following:                            
       (1) Plans for military training, military equipment testing, or     
   related activities that have the potential of impacting communications  
   between Goldstone Deep Space Communications Complex and space flight    
   missions or other transmission or receipt of signals from outer space by
   the Goldstone Deep Space Communications Complex.                        
       (2) The integrated natural resources management plan required by    
   subsection (d).                                                         
       (3) The West Mojave Coordinated Management Plan referred to in      
   section 2907.                                                           
       (4) Any document prepared in compliance with the Endangered Species 
   Act of 1973, the National Environmental Policy Act of 1969, and other   
   laws applicable to the lands withdrawn and reserved by this title.      
     (g) Use of Mineral Materials.--Notwithstanding any other provision of
  this title or the Act of July 31, 1947 (commonly known as the Materials 
  Act of 1947; 30 U.S.C. 601 et seq.), the Secretary of the Army may use  
  sand, gravel, or similar mineral material resources of the type subject 
  to disposition under such Act from the lands withdrawn and reserved by  
  this title if the use of such resources is required for construction    
  needs of the National Training Center.                                  
          SEC. 2905. WATER RIGHTS.                                                

     (a) No Reserved Water Right Established.--Nothing in this title shall
  be construed--                                                          
       (1) to establish a reservation in favor of the United States with   
   respect to any water or water right on the lands withdrawn and reserved 
   by this title; or                                                       
       (2) to authorize the appropriation of water on such lands by the    
   United States after the date of the enactment of this Act, except in    
   accordance with applicable State law.                                   
     (b) Effect on Previously Acquired or Reserved Water Rights.--This    
  section shall not be construed to affect any water rights acquired or   
  reserved by the United States before the date of the enactment of this  
  Act, and the Secretary of the Army may exercise any such previously     
  acquired or reserved water rights.                                      
                    SEC. 2906. ENVIRONMENTAL COMPLIANCE AND ENVIRONMENTAL RESPONSE
          REQUIREMENTS.                                                           
     (a) Agreements Concerning the Environment and Public Health.--The    
  Secretary of the Army and the Secretary of the Interior shall enter into
  such agreements as are necessary, appropriate, and in the public        
  interest to carry out the purposes of this title.                       
     (b) Relation to Other Environmental Laws.--Nothing in this title     
  shall relieve, and no action taken under this title may relieve, the    
  Secretary of the Army or the Secretary of the Interior, or any other    
  person from any liability or other obligation under the Comprehensive   
  Environmental Response, Compensation, and Liability Act of 1980 (42     
  U.S.C. 9601 et seq.), the Resource Conservation and Recovery Act of 1976
  (42 U.S.C. 6901 et seq.) or any other Federal or State law.             
          SEC. 2907. WEST MOJAVE COORDINATED MANAGEMENT PLAN.                     

     (a) Completion.--The Secretary of the Interior shall make every      
  effort to complete the West Mojave Coordinated Management Plan not later
  than two years after the date of the enactment of this Act.             
     (b) Consideration of Withdrawal and Reservation Impacts.--The        
  Secretary of the Interior shall ensure that the West Mojave Coordinated 
  Management Plan considers the impacts of the availability or            
  nonavailability of the lands withdrawn and reserved by this title on the
  plan as a whole.                                                        
     (c) Consultation.--The Secretary of the Interior shall consult with  
  the Secretary of the Army and the Administrator of the National         
  Aeronautics and Space Administration in the development of the West     
  Mojave Coordinated Management Plan.                                     
          SEC. 2908. RELEASE OF WILDERNESS STUDY AREAS.                           

     Congress hereby finds and directs that lands withdrawn and reserved  
  by this title have been adequately studied for wilderness designation   
  pursuant to section 603(c) of the Federal Land Policy and Management Act
  of 1976 (43 U.S.C. 1782(c)), and are no longer subject to the           
  requirement of such section pertaining to the management of wilderness  
  study areas in a manner that does not impair the suitability of such    
  areas for preservation as wilderness.                                   
          SEC. 2909. TRAINING ACTIVITY SEPARATION FROM UTILITY CORRIDORS.         

     (a) Required Separation.--All military ground activity training on   
  the lands withdrawn and reserved by this title shall remain at least 500
  meters from any utility system, in existence as of the date of the      
  enactment of this Act, in Utility Planning Corridor D, as described in  
  the California Desert Conservation Area Plan, dated 1980 and            
  subsequently amended.                                                   
     (b) Exception.--Subsection (a) does not modify the use of any lands  
  used, as of the date of the enactment of this Act, by the National      
  Training Center for training or alter any right of access granted by    
  interagency agreement.                                                  
          SEC. 2910. DURATION OF WITHDRAWAL AND RESERVATION.                      

     (a) Termination Date.--Unless extended pursuant to section 2911,     
  unless relinquishment is postponed by the Secretary of the Interior     
  pursuant to section 2912(b), and except as provided in section 2912(d), 
  the withdrawal and reservation made by this title shall terminate 25    
  years after the date of the enactment of this Act.                      
     (b) Limitation on Subsequent Availability for Appropriation.--At the 
  time of termination of the withdrawal and reservation made by this      
  title, the previously withdrawn lands shall not be open to any forms of 
  appropriation under the general land laws, including the mining laws and
  the mineral and geothermal leasing laws, until the Secretary of the     
  Interior publishes in the Federal Register an appropriate order         
  specifying the date upon which such lands shall be restored to the      
  public domain and opened.                                               
          SEC. 2911. EXTENSION OF INITIAL WITHDRAWAL AND RESERVATION.             

     (a) Notification Requirement.--Not later than three years before the 
  termination date specified in section 2910(a), the Secretary of the Army
  shall notify Congress and the Secretary of the Interior whether the Army
  will have a continuing military need, beyond the termination date, for  
  all or any portion of the lands withdrawn and reserved by this title.   
    (b)  Process for Extension of Withdrawal and Reservation.--           

       (1) Consultation and application.--If the Secretary of the Army     
   determines that there will be a continuing military need after the      
   termination date for any of the lands withdrawn and reserved by this    
   title, the Secretary of the Army shall--                                
       (A) consult with the Secretary of the Interior concerning any       
   adjustments to be made to the extent of, or to the allocation of        
   management responsibility for, such needed lands; and                   
       (B) file with the Secretary of the Interior, within one year after  
   the notice required by subsection (a), an application for extension of  
   the withdrawal and reservation of such needed lands.                    
       (2) Application requirements.--Notwithstanding any general procedure
   of the Department of the Interior for processing Federal land           
   withdrawals, an application for extension of the land withdrawal and    
   reservation made by this title shall be considered to be complete if the
   application includes the information required by section 3 of Public Law
   85 337 (commonly known as the Engle Act; 43 U.S.C. 157), except that no 
   information shall be required concerning the use or development of      
   mineral, timber, or grazing resources unless, and only to the extent,   
   the Secretary of the Army proposes to use or develop such resources     
   during the period of extension.                                         
     (c) Submission of Proposed Extension to Congress.--The Secretary of  
  the Interior and the Secretary of the Army may submit to Congress a     
  legislative proposal for the extension of the withdrawal and reservation
  made by this title. The legislative proposal shall be accompanied by an 
  appropriate analysis of environmental impacts associated with the       
  proposal, as required by section 102(2)(C) of the National Environmental
  Policy Act of 1969 (42 U.S.C. 4332(2)(C)).                              
          SEC. 2912. TERMINATION AND RELINQUISHMENT.                              

     (a) Notice of Termination.--During the first 22 years of the         
  withdrawal and reservation made by this title, if the Secretary of the  
  Army determines that there is no continuing military need for the lands 
  withdrawn and reserved by this title, or any portion of such lands, the 
  Secretary of the Army shall submit to the Secretary of the Interior a   
  notice of intent to relinquish jurisdiction over such lands. The notice 
  shall specify the proposed date of relinquishment.                      
     (b) Acceptance of Jurisdiction.--The Secretary of the Interior may   
  accept jurisdiction over any lands covered by a notice under subsection 
  (a) if the Secretary of the Interior determines that the Secretary of   
  the Army has taken or will take all environmental response and          
  restoration activities required under applicable laws and regulations   
  with respect to such lands.                                             
     (c) Notice of Acceptance.--If the Secretary of the Interior decides  
  to accept jurisdiction over lands covered by a notice under subsection  
  (a) before the termination date of the withdrawal and reservation, the  
  Secretary shall publish in the Federal Register an appropriate order    
  that shall--                                                            
       (1) terminate the withdrawal and reservation of such lands under    
   this title;                                                             
       (2) constitute official acceptance of administrative jurisdiction   
   over the lands by the Secretary of the Interior; and                    
       (3) state the date upon which such lands shall be opened to the     
   operation of the general land laws, including the mining laws and the   
   mineral and geothermal leasing laws, if appropriate.                    
     (d) Retained Army Jurisdiction.--Notwithstanding the termination date
  specified in section 2910, unless and until the Secretary of the        
  Interior accepts jurisdiction of land proposed for relinquishment       
  pursuant to this section, such land shall remain withdrawn and reserved 
  for the Secretary of the Army for the limited purposes of environmental 
  response and restoration actions under section 2906 and continued land  
  management responsibilities pursuant to the integrated natural resources
  management plan required under section 2904, until such environmental   
  response and restoration activities on those lands are completed.       
     (e) Severability of Functions.--All functions described under this   
  section, including transfers, relinquishments, extensions, and other    
  determinations, may be made on a parcel-by-parcel basis.                
          SEC. 2913. DELEGATION OF AUTHORITY.                                     

     (a) Secretary of the Army.--The Secretary of the Army may delegate to
  officials in the Department of the Army such functions as the Secretary 
  of the Army may determine appropriate to carry out this title.          
     (b) Secretary of the Interior.--The functions of the Secretary of the
  Interior under this title may be delegated, except that the order       
  described in section 2912(c) may be approved and signed only by the     
  Secretary of the Interior, the Deputy Secretary of the Interior, or an  
  Assistant Secretary of the Department of the Interior.                  

                      TITLE XXX--REALIGNMENT AND CLOSURE OF MILITARY INSTALLATIONS 
           AND PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS COMPLEX  

            Sec. 3001. Authorization of round of realignments and closures of 
      military installations in 2005.                                         
      Sec. 3002. Selection criteria.                                          

            Sec. 3003. Revised procedures for making recommendations for      
      realignments and closures and commission consideration of               
      recommendations.                                                        
      Sec. 3004. Limitations on privatization in place.                       

      Sec. 3005. Department of Defense Base Closure Account 2005.             

      Sec. 3006. Implementation of closure and realignment decisions.         

      Sec. 3007. Technical and clarifying amendments.                         

            Sec. 3008. Preparation of infrastructure plan for the nuclear     
      weapons complex.                                                        

                    SEC. 3001. AUTHORIZATION OF ROUND OF REALIGNMENTS AND CLOSURES
          OF MILITARY INSTALLATIONS IN 2005.                                      
     The Defense Base Closure and Realignment Act of 1990 (part A of title
  XXIX of Public Law 101 510; 10 U.S.C. 2687 note) is amended by adding at
  the end the following new section:                                      
                    ``SEC. 2912. 2005 ROUND OF REALIGNMENTS AND CLOSURES OF       
          MILITARY INSTALLATIONS.                                                 
    ``(a)  Force-Structure Plan and Infrastructure Inventory.--           

       ``(1) Preparation and submission.--As part of the budget            
   justification documents submitted to Congress in support of the budget  
   for the Department of Defense for fiscal year 2005, the Secretary shall 
   include the following:                                                  
       ``(A) A force-structure plan for the Armed Forces based on an       
   assessment by the Secretary of the probable threats to the national     
   security during the 20-year period beginning with fiscal year 2005, the 
   probable end-strength levels and major military force units (including  
   land force divisions, carrier and other major combatant vessels, air    
   wings, and other comparable units) needed to meet these threats, and the
   anticipated levels of funding that will be available for national       
   defense purposes during such period.                                    
       ``(B) A comprehensive inventory of military installations world-wide
   for each military department, with specifications of the number and type
   of facilities in the active and reserve forces of each military         
   department.                                                             
       ``(2) Relationship of plan and inventory.--Using the force-structure
   plan and infrastructure inventory prepared under paragraph (1), the     
   Secretary shall prepare (and include as part of the submission of such  
   plan and inventory) the following:                                      
       ``(A) A description of the infrastructure necessary to support the  
   force structure described in the force-structure plan.                  
       ``(B) A discussion of categories of excess infrastructure and       
   infrastructure capacity.                                                
       ``(C) An economic analysis of the effect of the closure or          
   realignment of military installations to reduce excess infrastructure.  
       ``(3) Special considerations.--In determining the level of necessary
   versus excess infrastructure under paragraph (2), the Secretary shall   
   consider the following:                                                 
       ``(A) The anticipated continuing need for and availability of       
   military installations outside the United States, taking into account   
   current restrictions on the use of military installations outside the   
   United States and the potential for future prohibitions or restrictions 
   on the use of such military installations.                              
       ``(B) Any efficiencies that may be gained from joint tenancy by more
   than one branch of the Armed Forces at a military installation.         
       ``(4) Revision.--The Secretary may revise the force-structure plan  
   and infrastructure inventory. If the Secretary makes such a revision,   
   the Secretary shall submit the revised plan or inventory to Congress as 
   part of the budget justification documents submitted to Congress for    
   fiscal year 2006.                                                       
    ``(b)  Certification of Need for Further Closures and Realignments.-- 

       ``(1) Certification required.--On the basis of the force-structure  
   plan and infrastructure inventory prepared under subsection (a) and the 
   descriptions and economic analysis prepared under such subsection, the  
   Secretary shall include as part of the submission of the plan and       
   inventory--                                                             
       ``(A) a certification regarding whether the need exists for the     
   closure or realignment of additional military installations; and        
       ``(B) if such need exists, a certification that the additional round
   of closures and realignments would result in annual net savings for each
   of the military departments beginning not later than fiscal year 2011.  
       ``(2) Effect of failure to certify.--If the Secretary does not      
   include the certifications referred to in paragraph (1), the process by 
   which military installations may be selected for closure or realignment 
   under this part in 2005 shall be terminated.                            
    ``(c)  Comptroller General Evaluation.--                              

       ``(1) Evaluation required.--If the certification is provided under  
   subsection (b), the Comptroller General shall prepare an evaluation of  
   the following:                                                          
       ``(A) The force-structure plan and infrastructure inventory prepared
   under subsection (a) and the final selection criteria prepared under    
   section 2913, including an evaluation of the accuracy and analytical    
   sufficiency of such plan, inventory, and criteria.                      
       ``(B) The need for the closure or realignment of additional military
   installations.                                                          
       ``(2) Submission.--The Comptroller General shall submit the         
   evaluation to Congress not later than 60 days after the date on which   
   the force-structure plan and infrastructure inventory are submitted to  
   Congress.                                                               
    ``(d)  Authorization of Additional Round; Commission.--               


       ``(1) Appointment of commission.--Subject to the certifications     
   required under subsection (b), the President may commence an additional 
   round for the selection of military installations for closure and       
   realignment under this part in 2005 by transmitting to the Senate, not  
   later than March 15, 2005, nominations pursuant to section 2902(c) for  
   the appointment of new members to the Defense Base Closure and          
   Realignment Commission.                                                 
       ``(2) Effect of failure to nominate.--If the President does not     
   transmit to the Senate the nominations for the Commission by March 15,  
   2005, the process by which military installations may be selected for   
   closure or realignment under this part in 2005 shall be terminated.     
       ``(3) Members.--Notwithstanding section 2902(c)(1), the Commission  
   appointed under the authority of this subsection shall consist of nine  
   members.                                                                
       ``(4) Terms; meetings; termination.--Notwithstanding subsections    
   (d), (e)(1), and ( l) of section 2902, the Commission appointed under   
   the authority of this subsection shall meet during calendar year 2005   
   and shall terminate on April 15, 2006.                                  
       ``(5) Funding.--If no funds are appropriated to the Commission by   
   the end of the second session of the 108th Congress for the activities  
   of the Commission in 2005, the Secretary may transfer to the Commission 
   for purposes of its activities under this part in that year such funds  
   as the Commission may require to carry out such activities. The         
   Secretary may transfer funds under the preceding sentence from any funds
   available to the Secretary. Funds so transferred shall remain available 
   to the Commission for such purposes until expended.''.                  
          SEC. 3002. SELECTION CRITERIA.                                          

     The Defense Base Closure and Realignment Act of 1990 (part A of title
  XXIX of Public Law 101 510; 10 U.S.C. 2687 note) is amended by inserting
  after section 2912, as added by section 3001, the following new section:
          ``SEC. 2913. SELECTION CRITERIA FOR 2005 ROUND.                         

    ``(a)  Preparation of Proposed Selection Criteria.--                  

       ``(1) In general.--Not later than December 31, 2003, the Secretary  
   shall publish in the Federal Register and transmit to the congressional 
   defense committees the criteria proposed to be used by the Secretary in 
   making recommendations for the closure or realignment of military       
   installations inside the United States under this part in 2005.         
       ``(2) Public comment.--The Secretary shall provide an opportunity   
   for public comment on the proposed criteria for a period of at least 30 
   days and shall include notice of that opportunity in the publication    
   required under this subsection.                                         
     ``(b) Military Value as Primary Consideration.--The selection        
  criteria prepared by the Secretary shall ensure that military value is  
  the primary consideration in the making of recommendations for the      
  closure or realignment of military installations under this part in     
  2005. Military value shall include at a minimum the following:          
       ``(1) Preservation of training areas suitable for maneuver by       
   ground, naval, or air forces to guarantee future availability of such   
   areas to ensure the readiness of the Armed Forces.                      
       ``(2) Preservation of military installations in the United States as
   staging areas for the use of the Armed Forces in homeland defense       
   missions.                                                               
       ``(3) Preservation of military installations throughout a diversity 
   of climate and terrain areas in the United States for training purposes.
     ``(4) The impact on joint warfighting, training, and readiness.       

       ``(5) Contingency, mobilization, and future total force requirements
   at both existing and potential receiving locations to support operations
   and training.                                                           
     ``(c) Special Considerations.--The selection criteria for military   
  installations shall also address at a minimum the following:            
       ``(1) The extent and timing of potential costs and savings,         
   including the number of years, beginning with the date of completion of 
   the closure or realignment, for the savings to exceed the costs.        
       ``(2) The economic impact on existing communities in the vicinity of
   military installations.                                                 
       ``(3) The ability of both existing and potential receiving          
   communities' infrastructure to support forces, missions, and personnel. 
       ``(4) The impact of costs related to potential environmental        
   restoration, waste management, and environmental compliance activities. 
     ``(d) Effect on Department and Other Agency Costs.--Any selection    
  criteria proposed by the Secretary relating to the cost savings or      
  return on investment from the proposed closure or realignment of        
  military installations shall take into account the effect of the        
  proposed closure or realignment on the costs of any other activity of   
  the Department of Defense or any other Federal agency that may be       
  required to assume responsibility for activities at the military        
  installations.                                                          
     ``(e) Final Selection Criteria.--Not later than February 16, 2004,   
  the Secretary shall publish in the Federal Register and transmit to the 
  congressional defense committees the final criteria to be used in making
  recommendations for the closure or realignment of military installations
  inside the United States under this part in 2005. Such criteria shall be
  the final criteria to be used, along with the force-structure plan and  
  infrastructure inventory referred to in section 2912, in making such    
  recommendations unless disapproved by an Act of Congress enacted on or  
  before March 15, 2004.                                                  
     ``(f) Relation to Criteria for Earlier Rounds.--Section 2903(b), and 
  the selection criteria prepared under such section, shall not apply with
  respect to the process of making recommendations for the closure or     
  realignment of military installations in 2005.''.                       
                    SEC. 3003. REVISED PROCEDURES FOR MAKING RECOMMENDATIONS FOR  
          REALIGNMENTS AND CLOSURES AND COMMISSION CONSIDERATION OF               
          RECOMMENDATIONS.                                                        
     The Defense Base Closure and Realignment Act of 1990 (part A of title
  XXIX of Public Law 101 510; 10 U.S.C. 2687 note) is amended by inserting
  after section 2913, as added by section 3002, the following new section:
                    ``SEC. 2914. SPECIAL PROCEDURES FOR MAKING RECOMMENDATIONS FOR
          REALIGNMENTS AND CLOSURES FOR 2005 ROUND; COMMISSION CONSIDERATION OF   
          RECOMMENDATIONS.                                                        
     ``(a) Recommendations Regarding Closure or Realignment of Military   
  Installations.--If the Secretary makes the certifications required under
  section 2912(b), the Secretary shall publish in the Federal Register and
  transmit to the congressional defense committees and the Commission, not
  later than May 16, 2005, a list of the military installations inside the
  United States that the Secretary recommends for closure or realignment  
  on the basis of the force-structure plan and infrastructure inventory   
  prepared by the Secretary under section 2912 and the final selection    
  criteria prepared by the Secretary under section 2913.                  
    ``(b)  Preparation of Recommendations.--                              

       ``(1) In general.--The Secretary shall comply with paragraphs (2)   
   through (6) of section 2903(c) in preparing and transmitting the        
   recommendations under this section. However, paragraph (6) of section   
   2903(c) relating to submission of information to Congress shall be      
   deemed to require such submission within 48 hours.                      
       ``(2) Consideration of local government views.--(A) In making       
   recommendations to the Commission in 2005, the Secretary shall consider 
   any notice received from a local government in the vicinity of a        
   military installation that the government would approve of the closure  
   or realignment of the installation.                                     
       ``(B) Notwithstanding the requirement in subparagraph (A), the      
   Secretary shall make the recommendations referred to in that            
   subparagraph based on the force-structure plan, infrastructure          
   inventory, and final selection criteria otherwise applicable to such    
   recommendations.                                                        
       ``(C) The recommendations shall include a statement of the result of
   the consideration of any notice described in subparagraph (A) that is   
   received with respect to a military installation covered by such        
   recommendations. The statement shall set forth the reasons for the      
   result.                                                                 
     ``(c) Recommendations to Retain Bases in Inactive Status.--In making 
  recommendations for the closure or realignment of military              
  installations, the Secretary may recommend that an installation be      
  placed in an inactive status if the Secretary determines that--         
       ``(1) the installation may be needed in the future for national     
   security purposes; or                                                   
       ``(2) retention of the installation is otherwise in the interest of 
   the United States.                                                      
    ``(d)  Commission Review and Recommendations.--                       

       ``(1) In general.--Except as provided in this subsection, section   
   2903(d) shall apply to the consideration by the Commission of the       
   recommendations transmitted by the Secretary in 2005. The Commission's  
   report containing its findings and conclusions, based on a review and   
   analysis of the Secretary's recommendations, shall be transmitted to the
   President not later than September 8, 2005.                             
       ``(2) Availability of recommendations to congress.--After September 
   8, 2005, the Commission shall promptly provide, upon request, to any    
   Member of Congress information used by the Commission in making its     
   recommendations.                                                        
       ``(3) Limitations on authority to add to closure or realignment     
   lists.--The Commission may not consider making a change in the          
   recommendations of the Secretary that would add a military installation 
   to the Secretary's list of installations recommended for closure or     
   realignment unless, in addition to the requirements of section          
   2903(d)(2)(C)--                                                         
       ``(A) the Commission provides the Secretary with at least a 15-day  
   period, before making the change, in which to submit an explanation of  
   the reasons why the installation was not included on the closure or     
   realignment list by the Secretary; and                                  
       ``(B) the decision to add the installation for Commission           
   consideration is supported by at least seven members of the Commission. 
       ``(4) Testimony by secretary.--The Commission shall invite the      
   Secretary to testify at a public hearing, or a closed hearing if        
   classified information is involved, on any proposed change by the       
   Commission to the Secretary's recommendations.                          
       ``(5) Comptroller general report.--The Comptroller General report   
   required by section 2903(d)(5)(B) analyzing the recommendations of the  
   Secretary and the selection process in 2005 shall be transmitted to the 
   congressional defense committees not later than July 1, 2005.           
    ``(e)  Review by the President.--                                     

       ``(1) In general.--Except as provided in this subsection, section   
   2903(e) shall apply to the review by the President of the               
   recommendations of the Commission under this section, and the actions,  
   if any, of the Commission in response to such review, in 2005. The      
   President shall review the recommendations of the Secretary and the     
   recommendations contained in the report of the Commission under         
   subsection (d) and prepare a report, not later than September 23, 2005, 
   containing the President's approval or disapproval of the Commission's  
   recommendations.                                                        
       ``(2) Commission reconsideration.--If the Commission prepares a     
   revised list of recommendations under section 2903(e)(3) in 2005 in     
   response to the review of the President in that year under paragraph    
   (1), the Commission shall transmit the revised list to the President not
   later than October 20, 2005.                                            

       ``(3) Effect of failure to transmit.--If the President does not     
   transmit to Congress an approval and certification described in         
   paragraph (2) or (4) of section 2903(e) by November 7, 2005, the process
   by which military installations may be selected for closure or          
   realignment under this part in 2005 shall be terminated.                
       ``(4) Effect of transmittal.--A report of the President under this  
   subsection containing the President's approval of the Commission's      
   recommendations is deemed to be a report under section 2903(e) for      
   purposes of sections 2904 and 2908.''.                                  
          SEC. 3004. LIMITATIONS ON PRIVATIZATION IN PLACE.                       

     Section 2904(a) of the Defense Base Closure and Realignment Act of   
  1990 (part A of title XXIX of Public Law 101 510; 10 U.S.C. 2687 note)  
  is amended--                                                            
       (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and   
   (5), respectively; and                                                  
     (2) by inserting after paragraph (2) the following new paragraph (3): 

       ``(3) carry out the privatization in place of a military            
   installation recommended for closure or realignment by the Commission in
   the 2005 report only if privatization in place is a method of closure or
   realignment of the military installation specified in the               
   recommendations of the Commission in such report and is determined by   
   the Commission to be the most cost-effective method of implementation of
   the recommendation;''.                                                  
          SEC. 3005. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.             

     (a) Establishment.--The Defense Base Closure and Realignment Act of  
  1990 (part A of title XXIX of Public Law 101 510; 10 U.S.C. 2687 note)  
  is amended by inserting after section 2906 the following new section:   
          ``SEC. 2906A. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.          

     ``(a) In General.--(1) If the Secretary makes the certifications     
  required under section 2912(b), there shall be established on the books 
  of the Treasury an account to be known as the `Department of Defense    
  Base Closure Account 2005' (in this section referred to as the          
  `Account'). The Account shall be administered by the Secretary as a     
  single account.                                                         
    ``(2) There shall be deposited into the Account--                     

     ``(A) funds authorized for and appropriated to the Account;           

       ``(B) any funds that the Secretary may, subject to approval in an   
   appropriation Act, transfer to the Account from funds appropriated to   
   the Department of Defense for any purpose, except that such funds may be
   transferred only after the date on which the Secretary transmits written
   notice of, and justification for, such transfer to the congressional    
   defense committees; and                                                 
       ``(C) except as provided in subsection (d), proceeds received from  
   the lease, transfer, or disposal of any property at a military          
   installation that is closed or realigned under this part pursuant to a  
   closure or realignment the date of approval of which is after January 1,
   2005.                                                                   
     ``(3) The Account shall be closed at the time and in the manner      
  provided for appropriation accounts under section 1555 of title 31,     
  United States Code. Unobligated funds which remain in the Account upon  
  closure shall be held by the Secretary of the Treasury until transferred
  by law after the congressional defense committees receive the final     
  report transmitted under subsection (c)(2).                             
     ``(b) Use of Funds.--(1) The Secretary may use the funds in the      
  Account only for the purposes described in section 2905 with respect to 
  military installations the date of approval of closure or realignment of
  which is after January 1, 2005.                                         
     ``(2) When a decision is made to use funds in the Account to carry   
  out a construction project under section 2905(a) and the cost of the    
  project will exceed the maximum amount authorized by law for a minor    
  military construction project, the Secretary shall notify in writing the
  congressional defense committees of the nature of, and justification    
  for, the project and the amount of expenditures for such project. Any   
  such construction project may be carried out without regard to section  
  2802(a) of title 10, United States Code.                                
     ``(c) Reports.--(1)(A) No later than 60 days after the end of each   
  fiscal year in which the Secretary carries out activities under this    
  part using amounts in the Account, the Secretary shall transmit a report
  to the congressional defense committees of the amount and nature of the 
  deposits into, and the expenditures from, the Account during such fiscal
  year and of the amount and nature of other expenditures made pursuant to
  section 2905(a) during such fiscal year.                                
    ``(B) The report for a fiscal year shall include the following:       

       ``(i) The obligations and expenditures from the Account during the  
   fiscal year, identified by subaccount, for each military department and 
   Defense Agency.                                                         
       ``(ii) The fiscal year in which appropriations for such expenditures
   were made and the fiscal year in which funds were obligated for such    
   expenditures.                                                           
       ``(iii) Each military construction project for which such           
   obligations and expenditures were made, identified by installation and  
   project title.                                                          
       ``(iv) A description and explanation of the extent, if any, to which
   expenditures for military construction projects for the fiscal year     
   differed from proposals for projects and funding levels that were       
   included in the justification transmitted to Congress under section     
   2907(1), or otherwise, for the funding proposals for the Account for    
   such fiscal year, including an explanation of--                         
       ``(I) any failure to carry out military construction projects that  
   were so proposed; and                                                   
       ``(II) any expenditures for military construction projects that were
   not so proposed.                                                        
     ``(2) No later than 60 days after the termination of the authority of
  the Secretary to carry out a closure or realignment under this part with
  respect to military installations the date of approval of closure or    
  realignment of which is after January 1, 2005, and no later than 60 days
  after the closure of the Account under subsection (a)(3), the Secretary 
  shall transmit to the congressional defense committees a report         
  containing an accounting of--                                           
       ``(A) all the funds deposited into and expended from the Account or 
   otherwise expended under this part with respect to such installations;  
   and                                                                     
     ``(B) any amount remaining in the Account.                            

     ``(d) Disposal or Transfer of Commissary Stores and Property         
  Purchased With Nonappropriated Funds.--(1) If any real property or      
  facility acquired, constructed, or improved (in whole or in part) with  
  commissary store funds or nonappropriated funds is transferred or       
  disposed of in connection with the closure or realignment of a military 
  installation under this part the date of approval of closure or         
  realignment of which is after January 1, 2005, a portion of the proceeds
  of the transfer or other disposal of property on that installation shall
  be deposited in the reserve account established under section           
  204(b)(7)(C) of the Defense Authorization Amendments and Base Closure   
  and Realignment Act (10 U.S.C. 2687 note).                              
     ``(2) The amount so deposited shall be equal to the depreciated value
  of the investment made with such funds in the acquisition, construction,
  or improvement of that particular real property or facility. The        
  depreciated value of the investment shall be computed in accordance with
  regulations prescribed by the Secretary.                                
     ``(3) The Secretary may use amounts in the reserve account, without  
  further appropriation, for the purpose of acquiring, constructing, and  
  improving--                                                             
     ``(A) commissary stores; and                                          

       ``(B) real property and facilities for nonappropriated fund         
   instrumentalities.                                                      
     ``(4) In this subsection, the terms `commissary store funds',        
  `nonappropriated funds', and `nonappropriated fund instrumentality'     
  shall have the meaning given those terms in section 2906(d)(4).         
     ``(e) Account Exclusive Source of Funds for Environmental Restoration
  Projects.--Except as provided in section 2906(e) with respect to funds  
  in the Department of Defense Base Closure Account 1990 under section    
  2906 and except for funds deposited into the Account under subsection   
  (a), funds appropriated to the Department of Defense may not be used for
  purposes described in section 2905(a)(1)(C). The prohibition in this    
  subsection shall expire upon the closure of the Account under subsection
  (a)(3).''.                                                              
    (b)  Conforming Amendments.--Section 2906 of that Act is amended--    

       (1) in subsection (a)(2)(C), by inserting ``the date of approval of 
   closure or realignment of which is before January 1, 2005'' after       
   ``under this part'';                                                    
       (2) in subsection (b)(1), by inserting ``with respect to military   
   installations the date of approval of closure or realignment of which is
   before January 1, 2005,'' after ``section 2905'';                       
     (3) in subsection (c)(2)--                                            

       (A) in the matter preceding subparagraph (A), by inserting ``with   
   respect to military installations the date of approval of closure or    
   realignment of which is before January 1, 2005,'' after ``under this    
   part''; and                                                             
       (B) in subparagraph (A), by inserting ``with respect to such        
   installations'' after ``under this part'';                              
       (4) in subsection (d)(1), by inserting ``the date of approval of    
   closure or realignment of which is before January 1, 2005'' after       
   ``under this part''; and                                                
       (5) in subsection (e), by striking ``Except for'' and inserting     
   ``Except as provided in section 2906A(e) with respect to funds in the   
   Department of Defense Base Closure Account 2005 under section 2906A and 
   except for''.                                                           
     (c) Clerical Amendment.--The section heading of section 2906 of that 
  Act is amended by striking `` account'' and inserting `` Department of  
  Defense Base Closure Account 1990''.                                    

          SEC. 3006. IMPLEMENTATION OF CLOSURE AND REALIGNMENT DECISIONS.         

     (a) Requirement to Receive Fair Market Value.--Section 2905(b)(4)(B) 
  of that Act is amended--                                                
       (1) in the first sentence, by striking ``shall be without           
   consideration'' in the matter preceding clause (i) and inserting ``may  
   be without consideration''; and                                         
       (2) by inserting after ``(B)'' the following new sentence: ``With   
   respect to military installations for which the date of approval of     
   closure or realignment is after January 1, 2005, the Secretary shall    
   seek to obtain consideration in connection with any transfer under this 
   paragraph of property located at the installation in an amount equal to 
   the fair market value of the property, as determined by the             
   Secretary.''.                                                           
     (b) Transfers in Connection with Payment of Environmental            
  Remediation.--Section 2905(e) of that Act is amended--                  
       (1) in paragraph (1)(B), by adding at the end the following new     
   sentence: ``The real property and facilities referred to in subparagraph
   (A) are also the real property and facilities located at an installation
   approved for closure or realignment under this part after 2001 that are 
   available for purposes other than to assist the homeless.'';            
       (2) in paragraph (2)(A), by striking ``to be paid by the recipient  
   of the property or facilities'' and inserting ``otherwise to be paid by 
   the Secretary with respect to the property or facilities'';             
     (3) by striking paragraph (6);                                        

       (4) by redesignating paragraphs (3), (4), and (5) as paragraphs (4),
   (5), (6), respectively; and                                             
     (5) by inserting after paragraph (2) the following new paragraph (3): 

     ``(3) In the case of property or facilities covered by a             
  certification under paragraph (2)(A), the Secretary may pay the         
  recipient of such property or facilities an amount equal to the lesser  
  of--                                                                    
       ``(A) the amount by which the costs incurred by the recipient of    
   such property or facilities for all environmental restoration, waste,   
   management, and environmental compliance activities with respect to such
   property or facilities exceed the fair market value of such property or 
   facilities as specified in such certification; or                       
       ``(B) the amount by which the costs (as determined by the Secretary)
   that would otherwise have been incurred by the Secretary for such       
   restoration, management, and activities with respect to such property or
   facilities exceed the fair market value of such property or facilities  
   as so specified.''.                                                     
     (c) Scope of Indemnification of Transferees in Connection With       
  Payment of Environmental Remediation.--Paragraph (6) of section 2905(e) 
  of that Act, as redesignated by subsection (b)(4), is amended by        
  inserting before the period the following: ``, except in the case of    
  releases or threatened releases not disclosed pursuant to paragraph     
  (4)''.                                                                  
          SEC. 3007. TECHNICAL AND CLARIFYING AMENDMENTS.                         

     (a) Relationship to Other Base Closure Authority.--Section 2909(a) of
  the Defense Base Closure and Realignment Act of 1990 (part A of title   
  XXIX of Public Law 101 510; 10 U.S.C. 2687 note) is amended by striking 
  ``the date of the enactment of this Act and ending on December 31,      
  1995,'' and inserting ``November 5, 1990, and ending on April 15,       
  2006,''.                                                                
     (b) Commencement of Period for Notice of Interest in Property for    
  Homeless.--Section 2905(b)(7)(D)(ii)(I) of that Act is amended by       
  striking ``that date'' and inserting ``the date of publication of such  
  determination in a newspaper of general circulation in the communities  
  in the vicinity of the installation under subparagraph (B)(i)(IV)''.    
     (c) Committee Name.--That Act is further amended by striking         
  ``National Security'' and inserting ``Armed Services'' each place it    
  appears in the following provisions:                                    
     (A) Section 2902(e)(2)(B)(ii).                                        

     (B) Section 2908(b).                                                  

     (d) Other Clarifying Amendments.--(1) That Act is further amended by 
  inserting ``or realignment'' after ``closure'' each place it appears in 
  the following provisions:                                               
     (A) Section 2905(b)(3).                                               

     (B) Section 2905(b)(5).                                               

     (C) Section 2905(b)(7)(B)(iv).                                        

     (D) Section 2905(b)(7)(N).                                            

     (E) Section 2910(10)(B).                                              

     (2) That Act is further amended by inserting ``or realigned'' after  
  ``closed'' each place it appears in the following provisions:           
     (A) Section 2905(b)(3)(C)(ii).                                        

     (B) Section 2905(b)(3)(D).                                            

     (C) Section 2905(b)(3)(E).                                            

     (D) Section 2905(b)(5)(A).                                            

     (E) Section 2910(9).                                                  

     (F) Section 2910(10).                                                 

     (3) Section 2905(e)(1)(B) of that Act is amended by inserting ``, or 
  realigned or to be realigned,'' after ``closed or to be closed''.       
                    SEC. 3008. PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR 
          WEAPONS COMPLEX.                                                        
    (a)  Infrastructure Plan for Nuclear Weapons Complex.--               

       (1) Preparation and submission.--Not later than the date on which   
   the budget for the Department of Energy for fiscal year 2004 is         
   submitted to Congress, the Secretary of Energy shall submit to Congress 
   an infrastructure plan for the nuclear weapons complex adequate to      
   support the nuclear weapons stockpile, the naval reactors program, and  
   nonproliferation and national security activities.                      
       (2) Special considerations.--In preparing the infrastructure plan,  
   the Secretary shall take into consideration the following:              
       (A) The Department of Defense Nuclear Posture Review required       
   pursuant to section 1041 of the Floyd D. Spence National Defense        
   Authorization Act for Fiscal Year 2001 (as enacted into law by Public   
   Law 106 398; 114 Stat. 1654A 262).                                      
       (B) Any efficiencies and security benefits of consolidation of      
   facilities of the nuclear weapons complex.                              
     (C) The necessity to have a residual production capability.           

     (b) Recommendations Regarding Realignments and Closures.--On the     
  basis of the infrastructure plan prepared under subsection (a), the     
  Secretary shall make such recommendations regarding the need to close or
  realign facilities of the nuclear weapons complex as the Secretary      
  considers appropriate, including the Secretary's recommendations on     
  whether to establish a process by which a round of closures and         
  realignments would be carried out and any additional legislative        
  authority necessary to implement the recommendations. The Secretary     
  shall submit the recommendations as part of the infrastructure plan     
  under subsection (a).                                                   
    (c)  Definitions.--In this section:                                   

       (1) The terms ``Secretary'' and ``Secretary of Energy'' mean the    
   Secretary of Energy, acting after consideration of the recommendations  
   of the Administrator for Nuclear Security.                              
       (2) The term ``nuclear weapons complex'' means the national security
   laboratories and nuclear weapons production facilities (as such terms   
   are defined in section 3281 of the National Nuclear Security            
   Administration Act (50 U.S.C. 2471)) and the facilities of the Naval    
   Nuclear Propulsion Program provided for under the Naval Nuclear         
   Propulsion Executive Order (as such term is defined in section 3216 of  
   such Act (50 U.S.C. 2406)).                                             

                      DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY           
           AUTHORIZATIONS AND OTHER AUTHORIZATIONS                                 
           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS             


                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         

      Sec. 3101. National Nuclear Security Administration.                    

      Sec. 3102. Defense environmental restoration and waste management.      

      Sec. 3103. Other defense activities.                                    

      Sec. 3104. Defense environmental management privatization.              

      Sec. 3105. Defense nuclear waste disposal.                              

                          SUBTITLE B--RECURRING GENERAL PROVISIONS                

      Sec. 3121. Reprogramming.                                               

      Sec. 3122. Limits on minor construction projects.                       

      Sec. 3123. Limits on construction projects.                             

      Sec. 3124. Fund transfer authority.                                     

      Sec. 3125. Authority for conceptual and construction design.            

            Sec. 3126. Authority for emergency planning, design, and          
      construction activities.                                                
            Sec. 3127. Funds available for all national security programs of  
      the Department of Energy.                                               
      Sec. 3128. Availability of funds.                                       

      Sec. 3129. Transfer of defense environmental management funds.          

      Sec. 3130. Transfer of weapons activities funds.                        

              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   

            Sec. 3131. Consolidation of Nuclear Cities Initiative program with
      Initiatives for Proliferation Prevention program.                       
      Sec. 3132. Nuclear Cities Initiative.                                   

            Sec. 3133. Limitation on availability of funds for weapons        
      activities for facilities and infrastructure.                           
            Sec. 3134. Limitation on availability of funds for other defense  
      activities for national security programs administrative support.       
            Sec. 3135. Termination date of Office of River Protection,        
      Richland, Washington.                                                   
            Sec. 3136. Support for public education in the vicinity of Los    
      Alamos National Laboratory, New Mexico.                                 
            Sec. 3137. Reports on achievement of milestones for National      
      Ignition Facility.                                                      
             SUBTITLE D--MATTERS RELATING TO MANAGEMENT OF THE NATIONAL NUCLEAR   
                             SECURITY ADMINISTRATION                              
            Sec. 3141. Establishment of Principal Deputy Administrator of     
      National Nuclear Security Administration.                               
            Sec. 3142. Elimination of requirement that national security      
      laboratories and nuclear weapons production facilities report to Deputy 
      Administrator for Defense Programs.                                     
            Sec. 3143. Repeal of duplicative provision relating to dual office
      holding by personnel of National Nuclear Security Administration.       
            Sec. 3144. Report on adequacy of Federal pay and hiring           
      authorities to meet personnel requirements of National Nuclear Security 
      Administration.                                                         
                                  SUBTITLE E--OTHER MATTERS                       

            Sec. 3151. Improvements to Energy Employees Occupational Illness  
      Compensation Program.                                                   
      Sec. 3152. Department of Energy counterintelligence polygraph program.  

            Sec. 3153. One-year extension of authority of Department of Energy
      to pay voluntary separation incentive payments.                         
            Sec. 3154. Annual assessment and report on vulnerability of       
      Department of Energy facilities to terrorist attack.                    
            Sec. 3155. Disposition of surplus defense plutonium at Savannah   
      River Site, Aiken, South Carolina.                                      
            Sec. 3156. Modification of date of report of panel to assess the  
      reliability, safety, and security of the United States nuclear          
      stockpile.                                                              
                      SUBTITLE F--ROCKY FLATS NATIONAL WILDLIFE REFUGE            

      Sec. 3171. Short title.                                                 

      Sec. 3172. Findings and purposes.                                       

      Sec. 3173. Definitions.                                                 

      Sec. 3174. Future ownership and management.                             

            Sec. 3175. Transfer of management responsibilities and            
      jurisdiction over Rocky Flats.                                          
            Sec. 3176. Administration of retained property; continuation of   
      cleanup and closure.                                                    
      Sec. 3177. Rocky Flats National Wildlife Refuge.                        

      Sec. 3178. Comprehensive planning process.                              

      Sec. 3179. Property rights.                                             

      Sec. 3180. Liabilities and other obligations.                           

      Sec. 3181. Rocky Flats Museum.                                          

      Sec. 3182. Annual report on funding.                                    


           Subtitle A--National Security Programs Authorizations                   

          SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.                    

     Funds are hereby authorized to be appropriated to the Department of  
  Energy for fiscal year 2002 for the activities of the National Nuclear  
  Security Administration in carrying out programs necessary for national 
  security in the amount of $7,121,094,000, to be allocated as follows:   
       (1) Weapons activities.--For weapons activities, $5,343,567,000, to 
   be allocated as follows:                                                
       (A) For stewardship operation and maintenance, $4,601,871,000, to be
   allocated as follows:                                                   
     (i) For directed stockpile work, $1,002,274,000.                      

     (ii) For campaigns, $2,074,473,000, to be allocated as follows:       

      (I) For operation and maintenance, $1,704,501,000.                    

      (II) For construction, $369,972,000, to be allocated as follows:      

         Project 01 D 101, distributed information systems laboratory,      
    Sandia National Laboratories, Livermore, California, $5,400,000.        
         Project 00 D 103, terascale simulation facility, Lawrence Livermore
    National Laboratory, Livermore, California, $22,000,000.                
         Project 00 D 105, strategic computing complex, Los Alamos National 
    Laboratory, Los Alamos, New Mexico, $11,070,000.                        
         Project 00 D 107, joint computational engineering laboratory,      
    Sandia National Laboratories, Albuquerque, New Mexico, $5,377,000.      
         Project 98 D 125, tritium extraction facility, Savannah River      
    Plant, Aiken, South Carolina, $81,125,000.                              
         Project 96 D 111, national ignition facility (NIF), Lawrence       
    Livermore National Laboratory, Livermore, California, $245,000,000.     
       (iii) For readiness in technical base and facilities,               
   $1,525,124,000, to be allocated as follows:                             
      (I) For operation and maintenance, $1,348,260,000.                    

         (II) For plant projects (including maintenance, restoration,       
    planning, construction, acquisition, modification of facilities, and the
    continuation of projects authorized in prior years, and land acquisition
    related thereto), $176,864,000, to be allocated as follows:             
         Project 02 D 103, project engineering and design (PED), various    
    locations, $22,830,000.                                                 
         Project 02 D 105, engineering technology complex upgrade, Lawrence 
    Livermore National Laboratory, Livermore, California, $4,750,000.       
         Project 02 D 107, electrical power systems safety communications   
    and bus upgrades, Nevada Test Site, Nevada, $3,507,000.                 
         Project 01 D 101, microsystems and engineering sciences            
    applications (MESA), Sandia National Laboratories, Albuquerque, New     
    Mexico, $39,000,000.                                                    
         Project 01 D 103, preliminary project design and engineering,      
    various locations, $16,379,000.                                         
         Project 01 D 107, Atlas relocation, Nevada Test Site, Nevada,      
    $3,300,000.                                                             
         Project 01 D 126, weapons evaluation test laboratory, Pantex Plant,
    Amarillo, Texas, $7,700,000.                                            
         Project 01 D 800, sensitive compartmented information facility,    
    Lawrence Livermore National Laboratory, Livermore, California,          
    $12,993,000.                                                            
         Project 99 D 103, isotope sciences facilities, Lawrence Livermore  
    National Laboratory, Livermore, California, $4,400,000.                 
         Project 99 D 104, protection of real property (roof reconstruction,
    phase II), Lawrence Livermore National Laboratory, Livermore,           
    California, $2,800,000.                                                 
         Project 99 D 106, model validation and system certification center,
    Sandia National Laboratories, Albuquerque, New Mexico, $4,955,000.      
         Project 99 D 108, renovate existing roadways, Nevada Test Site,    
    Nevada, $2,000,000.                                                     
         Project 99 D 125, replace boilers and controls, Kansas City Plant, 
    Kansas City, Missouri, $300,000.                                        
         Project 99 D 127, stockpile management restructuring initiative,   
    Kansas City plant, Kansas City, Missouri, $22,200,000.                  
         Project 99 D 128, stockpile management restructuring initiative,   
    Pantex Plant, Amarillo, Texas, $3,300,000.                              
         Project 98 D 123, stockpile management restructuring initiative,   
    tritium facility modernization and consolidation, Savannah River Plant, 
    Aiken, South Carolina, $13,700,000.                                     
         Project 98 D 124, stockpile management restructuring initiative, Y 
    12 consolidation, Oak Ridge, Tennessee, $6,850,000.                     
         Project 97 D 123, structural upgrades, Kansas City Plant, Kansas   
    City, Missouri, $3,000,000.                                             
         Project 96 D 102, stockpile stewardship facilities revitalization, 
    Phase VI, various locations, $2,900,000.                                
       (B) For secure transportation asset, $121,800,000, to be allocated  
   as follows:                                                             
     (i) For operation and maintenance, $77,571,000.                       

     (ii) For program direction, $44,229,000.                              


       (C) For safeguards and security, $448,881,000, to be allocated as   
   follows:                                                                
     (i) For operations and maintenance, $439,281,000.                     

       (ii) For plant projects (including maintenance, restoration,        
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $9,600,000, to be allocated as follows:               
         Project 99 D 132, stockpile management restructuring initiative,   
    nuclear material safeguards and security upgrades project, Los Alamos   
    National Laboratory, Los Alamos, New Mexico, $9,600,000.                
     (D) For facilities and infrastructure, $200,000,000.                  

       (E) The total amount authorized by this paragraph is the sum of the 
   amounts authorized to be appropriated by subparagraphs (A) through (D), 
   reduced by $28,985,000, to be derived from a security charge for        
   reimbursable work.                                                      
       (2) Defense nuclear nonproliferation.--For defense nuclear          
   nonproliferation activities, $776,886,000, to be allocated as follows:  
       (A) For nonproliferation and verification research and development, 
   $244,306,000, to be allocated as follows:                               
     (i) For operation and maintenance, $208,500,000.                      

       (ii) For plant projects (including maintenance, restoration,        
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $35,806,000, to be allocated as follows:              
         Project 00 D 192, nonproliferation and international security      
    center (NISC), Los Alamos National Laboratory, Los Alamos, New Mexico,  
    $35,806,000.                                                            
     (B) For arms control and Russian transition initiatives, $117,741,000.

       (C) For international materials protection, control, and accounting,
   $143,800,000.                                                           
       (D) For highly enriched uranium transparency implementation,        
   $13,950,000.                                                            
     (E) For international nuclear safety, $10,000,000.                    

       (F) For fissile materials control and disposition, $289,089,000, to 
   be allocated as follows:                                                
       (i) For United States surplus fissile materials disposition,        
   $228,089,000, to be allocated as follows:                               
      (I) For operation and maintenance, $130,089,000.                      

         (II) For plant projects (including maintenance, restoration,       
    planning, construction, acquisition, modification of facilities, and the
    continuation of projects authorized in prior years, and land acquisition
    related thereto), $98,000,000, to be allocated as follows:              
         Project 01 D 407, highly enriched uranium blend-down, Savannah     
    River Site, Aiken, South Carolina, $24,000,000.                         
         Project 99 D 141, pit disassembly and conversion facility, Savannah
    River Site, Aiken, South Carolina, $11,000,000.                         
         Project 99 D 143, mixed oxide fuel fabrication facility, Savannah  
    River Site, Aiken, South Carolina, $63,000,000.                         
     (ii) For Russian surplus fissile materials disposition, $61,000,000.  

       (G) The total amount authorized by this paragraph is the sum of the 
   amounts authorized to be appropriated by subparagraphs (A) through (F), 
   reduced by $42,000,000, to be derived from offsets and use of prior year
   balances.                                                               
       (3) Naval reactors.--For naval reactors, $688,045,000, to be        
   allocated as follows:                                                   
       (A) For naval reactors development, $665,445,000, to be allocated as
   follows:                                                                
     (i) For operation and maintenance, $652,245,000.                      

       (ii) For plant projects (including maintenance, restoration,        
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $13,200,000, to be allocated as follows:              
         Project 01 D 200, major office replacement building, Schenectady,  
    New York, $9,000,000.                                                   
         Project 90 N 102, expended core facility dry cell project, Naval   
    Reactors Facility, Idaho, $4,200,000.                                   
     (B) For program direction, $22,600,000.                               

       (4) Office of administrator for nuclear security.--For the Office of
   the Administrator for Nuclear Security, and for program direction for   
   the National Nuclear Security Administration (other than for naval      
   reactors and secure transportation asset), $312,596,000.                
          SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.      

     (a) In General.--Funds are hereby authorized to be appropriated to   
  the Department of Energy for fiscal year 2002 for environmental         
  restoration and waste management activities in carrying out programs    
  necessary for national security in the amount of $6,022,415,000, to be  
  allocated as follows:                                                   
       (1) Closure projects.--For closure projects carried out in          
   accordance with section 3143 of the National Defense Authorization Act  
   for Fiscal Year 1997 (Public Law 104 201; 110 Stat. 2836; 42 U.S.C.     
   7277n), $1,080,538,000.                                                 
       (2) Site/project completion.--For site completion and project       
   completion in carrying out environmental management activities necessary
   for national security programs, $959,696,000, to be allocated as        
   follows:                                                                
     (A) For operation and maintenance, $919,030,000.                      

       (B) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $40,666,000, to be allocated as follows:              
       Project 01 D 402, Intec cathodic protection system expansion, Idaho 
   National Engineering and Environmental Laboratory, Idaho Falls, Idaho,  
   $3,256,000.                                                             
       Project 02 D 420, plutonium stabilization and packaging, Savannah   
   River Site, Aiken, South Carolina, $20,000,000.                         
       Project 01 D 414, preliminary project, engineering and design       
   (PE&D), various locations, $2,754,000.                                  
       Project 99 D 402, tank farm support services, F&H areas, Savannah   
   River Site, Aiken, South Carolina, $5,040,000.                          
       Project 99 D 404, health physics instrumentation laboratory, Idaho  
   National Engineering and Environmental Laboratory, Idaho Falls, Idaho,  
   $2,700,000.                                                             
       Project 98 D 453, plutonium stabilization and handling system for   
   plutonium finishing plant, Richland, Washington, $1,910,000.            
       Project 96 D 471, chlorofluorocarbon heating, ventilation, and air  
   conditioning and chiller retrofit, Savannah River Site, Aiken, South    
   Carolina, $4,244,000.                                                   
       Project 86 D 103, decontamination and waste treatment facility,     
   Lawrence Livermore National Laboratory, Livermore, California, $762,000.
       (3) Post-2006 completion.--For post-2006 completion in carrying out 
   environmental restoration and waste management activities necessary for 
   national security programs, $3,265,201,000, to be allocated as follows: 
     (A) For operation and maintenance, $1,955,979,000.                    

       (B) For uranium enrichment decontamination and decommissioning fund 
   contribution, $420,000,000.                                             
       (C) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $6,754,000, to be allocated as follows:               
       Project 93 D 187, high-level waste removal from filled waste tanks, 
   Savannah River Site, Aiken, South Carolina, $6,754,000.                 
       (D) For the Office of River Protection in carrying out environmental
   restoration and waste management activities necessary for national      
   security programs, $882,468,000, to be allocated as follows:            
     (i) For operation and maintenance, $322,151,000.                      

       (ii) For plant projects (including maintenance, restoration,        
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $560,317,000, to be allocated as follows:             
         Project 01 D 416, waste treatment and immobilization plant,        
    Richland, Washington, $520,000,000.                                     
         Project 97 D 402, tank farm restoration and safe operations,       
    Richland, Washington, $33,473,000.                                      

         Project 94 D 407, initial tank retrieval systems, Richland,        
    Washington, $6,844,000.                                                 
       (4) Science and technology development.--For science and technology 
   development in carrying out environmental restoration and waste         
   management activities necessary for national security programs,         
   $216,000,000.                                                           
       (5) Excess facilities.--For excess facilities in carrying out       
   environmental restoration and waste management activities necessary for 
   national security programs, $1,300,000.                                 
       (6) Safeguards and security.--For safeguards and security in        
   carrying out environmental restoration and waste management activities  
   necessary for national security programs, $205,621,000.                 
       (7) Program direction.--For program direction in carrying out       
   environmental restoration and waste management activities necessary for 
   national security programs, $355,761,000.                               
     (b) Adjustment.--The total amount authorized to be appropriated by   
  subsection (a) is the sum of the amounts authorized to be appropriated  
  by paragraphs (1) through (7) of that subsection, reduced by            
  $61,702,000, of which $56,311,000 is to reflect an offset provided by   
  use of prior year balances and $5,391,000 is to be derived from a       
  security charge for reimbursable work.                                  
          SEC. 3103. OTHER DEFENSE ACTIVITIES.                                    

     (a) In General.--Funds are hereby authorized to be appropriated to   
  the Department of Energy for fiscal year 2002 for other defense         
  activities in carrying out programs necessary for national security in  
  the amount of $499,663,000, to be allocated as follows:                 
     (1)  Intelligence.--For intelligence, $40,844,000.                    

     (2)  Counterintelligence.--For counterintelligence, $46,000,000.      

       (3) Security and emergency operations.--For security and emergency  
   operations, $250,427,000, to be allocated as follows:                   
     (A) For nuclear safeguards and security, $116,500,000.                

     (B) For security investigations, $44,927,000.                         

     (C) For corporate management information programs, $10,000,000.       

     (D) For program direction, $79,000,000.                               

       (4) Independent oversight and performance assurance.--For           
   independent oversight and performance assurance, $14,904,000.           
       (5) Environment, safety, and health.--For the Office of Environment,
   Safety, and Health, $113,307,000, to be allocated as follows:           
     (A) For environment, safety, and health (defense), $91,307,000.       

     (B) For program direction, $22,000,000.                               

       (6) Worker and community transition assistance.--For worker and     
   community transition assistance, $20,000,000, to be allocated as        
   follows:                                                                
     (A) For worker and community transition, $18,000,000.                 

     (B) For program direction, $2,000,000.                                

       (7) Office of hearings and appeals.--For the Office of Hearings and 
   Appeals, $2,893,000.                                                    
       (8) National security programs administrative support.--For national
   security programs administrative support, $22,000,000.                  
     (b) Adjustment.--The amount authorized to be appropriated pursuant to
  subsection (a) is the total of the amounts authorized to be appropriated
  by paragraphs (1) through (8) of that subsection, reduced by            
  $10,712,000, of which $10,000,000 is to reflect an offset provided by   
  use of prior year balances and $712,000 is to be derived from a security
  charge for reimbursable work.                                           
          SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.              

     Funds are hereby authorized to be appropriated to the Department of  
  Energy for fiscal year 2002 for privatization initiatives in carrying   
  out environmental restoration and waste management activities necessary 
  for national security programs in the amount of $153,537,000, to be     
  allocated as follows:                                                   
       Project 02 PVT 1, Paducah disposal facility, Paducah, Kentucky,     
   $13,329,000.                                                            
       Project 02 PVT 2, Portsmouth disposal facility, Portsmouth, Ohio,   
   $2,000,000.                                                             
       Project 98 PVT 2, spent nuclear fuel dry storage, Idaho Falls,      
   Idaho, $49,332,000.                                                     
       Project 98 PVT 5, environmental management/waste management         
   disposal, Oak Ridge, Tennessee, $26,065,000.                            
       Project 97 PVT 2, advanced mixed waste treatment project, Idaho     
   Falls, Idaho, $52,000,000.                                              
       Project 97 PVT 3, transuranic waste treatment, Oak Ridge, Tennessee,
   $10,826,000.                                                            
          SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.                              

     Funds are hereby authorized to be appropriated to the Department of  
  Energy for fiscal year 2002 for payment to the Nuclear Waste Fund       
  established in section 302(c) of the Nuclear Waste Policy Act of 1982   
  (42 U.S.C. 10222(c)) in the amount of $280,000,000.                     
           Subtitle B--Recurring General Provisions                                

          SEC. 3121. REPROGRAMMING.                                               

     (a) In General.--Except as provided in sections 3129 and 3130, until 
  the Secretary of Energy submits to the congressional defense committees 
  the report referred to in subsection (b) and a period of 30 days has    
  elapsed after the date on which such committees receive the report, the 
  Secretary may not use amounts appropriated pursuant to this title for   
  any program--                                                           
       (1) in amounts that exceed, in a fiscal year, the amount authorized 
   for that program by this title; or                                      
     (2) which has not been presented to, or requested of, Congress.       

     (b) Report.--(1) The report referred to in subsection (a) is a report
  containing a full and complete statement of the action proposed to be   
  taken and the facts and circumstances relied upon in support of the     
  proposed action.                                                        
     (2) In the computation of the 30-day period under subsection (a),    
  there shall be excluded any day on which either House of Congress is not
  in session because of an adjournment of more than 3 days to a day       
  certain.                                                                
     (c) Limitations.--(1) In no event may the total amount of funds      
  obligated pursuant to this title exceed the total amount authorized to  
  be appropriated by this title.                                          
     (2) Funds appropriated pursuant to this title may not be used for an 
  item for which Congress has specifically denied funds.                  
          SEC. 3122. LIMITS ON MINOR CONSTRUCTION PROJECTS.                       

     (a) Authority.--The Secretary of Energy may carry out any minor      
  construction project using operation and maintenance funds, or          
  facilities and infrastructure funds, authorized by this title.          
     (b) Annual Report.--The Secretary shall submit to the congressional  
  defense committees on an annual basis a report on each exercise of the  
  authority in subsection (a) during the preceding year. Each report shall
  provide a brief description of each minor construction project covered  
  by the report.                                                          
     (c) Cost Variation Reports to Congressional Committees.--If, at any  
  time during the construction of any minor construction project          
  authorized by this title, the estimated cost of the project is revised  
  and the revised cost of the project exceeds $5,000,000, the Secretary   
  shall immediately submit to the congressional defense committees a      
  report explaining the reasons for the cost variation.                   
     (d) Minor Construction Project Defined.--In this section, the term   
  ``minor construction project'' means any plant project not specifically 
  authorized by law if the approved total estimated cost of the plant     
  project does not exceed $5,000,000.                                     
          SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.                             

     (a) In General.--(1) Except as provided in paragraph (2),            
  construction on a construction project may not be started or additional 
  obligations incurred in connection with the project above the total     
  estimated cost, whenever the current estimated cost of the construction 
  project, authorized by 3101, 3102, or 3103, or which is in support of   
  national security programs of the Department of Energy and was          
  authorized by any previous Act, exceeds by more than 25 percent the     
  higher of--                                                             
     (A) the amount authorized for the project; or                         

       (B) the amount of the total estimated cost for the project as shown 
   in the most recent budget justification data submitted to Congress.     
    (2) An action described in paragraph (1) may be taken if--            

       (A) the Secretary of Energy has submitted to the congressional      
   defense committees a report on the actions and the circumstances making 
   such action necessary; and                                              
       (B) a period of 30 days has elapsed after the date on which the     
   report is received by the committees.                                   
     (3) In the computation of the 30-day period under paragraph (2),     
  there is excluded any day on which either House of Congress is not in   
  session because of an adjournment of more than 3 days to a day certain. 
     (b) Exception.--Subsection (a) does not apply to a construction      
  project with a current estimated cost of less than $5,000,000.          
          SEC. 3124. FUND TRANSFER AUTHORITY.                                     

     (a) Transfer to Other Federal Agencies.--The Secretary of Energy may 
  transfer funds authorized to be appropriated to the Department of Energy
  pursuant to this title to other Federal agencies for the performance of 
  work for which the funds were authorized. Funds so transferred may be   
  merged with and be available for the same purposes and for the same time
  period as the authorizations of the Federal agency to which the amounts 
  are transferred.                                                        

     (b) Transfer Within Department of Energy.--(1) Subject to paragraph  
  (2), the Secretary of Energy may transfer funds authorized to be        
  appropriated to the Department of Energy pursuant to this title between 
  any such authorizations. Amounts of authorizations so transferred may be
  merged with and be available for the same purposes and for the same     
  period as the authorization to which the amounts are transferred.       
     (2) Not more than 5 percent of any such authorization may be         
  transferred between authorizations under paragraph (1). No such         
  authorization may be increased or decreased by more than 5 percent by a 
  transfer under such paragraph.                                          
     (c) Limitations.--The authority provided by this subsection to       
  transfer authorizations--                                               
       (1) may be used only to provide funds for items relating to         
   activities necessary for national security programs that have a higher  
   priority than the items from which the funds are transferred; and       
       (2) may not be used to provide funds for an item for which Congress 
   has specifically denied funds.                                          
     (d) Notice to Congress.--The Secretary of Energy shall promptly      
  notify the Committees on Armed Services of the Senate and House of      
  Representatives of any transfer of funds to or from authorizations under
  this title.                                                             
          SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.            

     (a) Requirement of Conceptual Design.--(1) Subject to paragraph (2)  
  and except as provided in paragraph (3), before submitting to Congress a
  request for funds for a construction project that is in support of a    
  national security program of the Department of Energy, the Secretary of 
  Energy shall complete a conceptual design for that project.             
     (2) If the estimated cost of completing a conceptual design for a    
  construction project exceeds $3,000,000, the Secretary shall submit to  
  Congress a request for funds for the conceptual design before submitting
  a request for funds for the construction project.                       
     (3) The requirement in paragraph (1) does not apply to a request for 
  funds--                                                                 
       (A) for a minor construction project the total estimated cost of    
   which is less than $5,000,000; or                                       
       (B) for emergency planning, design, and construction activities     
   under section 3126.                                                     
     (b) Authority for Construction Design.--(1) Within the amounts       
  authorized by this title, the Secretary of Energy may carry out         
  construction design (including architectural and engineering services)  
  in connection with any proposed construction project if the total       
  estimated cost for such design does not exceed $600,000.                
     (2) If the total estimated cost for construction design in connection
  with any construction project exceeds $600,000, funds for that design   
  must be specifically authorized by law.                                 
                    SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND      
          CONSTRUCTION ACTIVITIES.                                                
     (a) Authority.--The Secretary of Energy may use any funds available  
  to the Department of Energy pursuant to an authorization in this title, 
  including funds authorized to be appropriated for advance planning,     
  engineering, and construction design, and for plant projects, under     
  sections 3101, 3102, 3103, and 3104 to perform planning, design, and    
  construction activities for any Department of Energy national security  
  program construction project that, as determined by the Secretary, must 
  proceed expeditiously in order to protect public health and safety, to  
  meet the needs of national defense, or to protect property.             
     (b) Limitation.--The Secretary may not exercise the authority under  
  subsection (a) in the case of any construction project until the        
  Secretary has submitted to the congressional defense committees a report
  on the activities that the Secretary intends to carry out under this    
  section and the circumstances making those activities necessary.        
     (c) Specific Authority.--The requirement of section 3125(b)(2) does  
  not apply to emergency planning, design, and construction activities    
  conducted under this section.                                           
                    SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
          OF THE DEPARTMENT OF ENERGY.                                            
     Subject to the provisions of appropriation Acts and section 3121,    
  amounts appropriated pursuant to this title for management and support  
  activities and for general plant projects are available for use, when   
  necessary, in connection with all national security programs of the     
  Department of Energy.                                                   
          SEC. 3128. AVAILABILITY OF FUNDS.                                       

     (a) In General.--Except as provided in subsection (b), when so       
  specified in an appropriations Act, amounts appropriated for operation  
  and maintenance or for plant projects may remain available until        
  expended.                                                               
     (b) Exception for Program Direction Funds.--Amounts appropriated for 
  program direction pursuant to an authorization of appropriations in     
  subtitle A shall remain available to be expended only until the end of  
  fiscal year 2003.                                                       
          SEC. 3129. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.          

     (a) Transfer Authority for Defense Environmental Management          
  Funds.--The Secretary of Energy shall provide the manager of each field 
  office of the Department of Energy with the authority to transfer       
  defense environmental management funds from a program or project under  
  the jurisdiction of that office to another such program or project.     
     (b) Limitations.--(1) Not more than three transfers may be made to or
  from any program or project under subsection (a) in a fiscal year.      
     (2) The amount transferred to or from a program or project under in  
  any one transfer under subsection (a) may not exceed $5,000,000.        
     (3) A transfer may not be carried out by a manager of a field office 
  under subsection (a) unless the manager determines that the transfer is 
  necessary--                                                             
     (A) to address a risk to health, safety, or the environment; or       

       (B) to assure the most efficient use of defense environmental       
   management funds at the field office.                                   
     (4) Funds transferred pursuant to subsection (a) may not be used for 
  an item for which Congress has specifically denied funds or for a new   
  program or project that has not been authorized by Congress.            
     (c) Exemption From Reprogramming Requirements.--The requirements of  
  section 3121 shall not apply to transfers of funds pursuant to          
  subsection (a).                                                         
     (d) Notification.--The Secretary, acting through the Assistant       
  Secretary of Energy for Environmental Management, shall notify Congress 
  of any transfer of funds pursuant to subsection (a) not later than 30   
  days after such transfer occurs.                                        
    (e)  Definitions.--In this section:                                   

       (1) The term ``program or project'' means, with respect to a field  
   office of the Department of Energy, any of the following:               
       (A) A program referred to or a project listed in paragraph (2) or   
   (3) of section 3102(a).                                                 
       (B) A program or project not described in subparagraph (A) that is  
   for environmental restoration or waste management activities necessary  
   for national security programs of the Department, that is being carried 
   out by that office, and for which defense environmental management funds
   have been authorized and appropriated before the date of the enactment  
   of this Act.                                                            
       (2) The term ``defense environmental management funds'' means funds 
   appropriated to the Department of Energy pursuant to an authorization   
   for carrying out environmental restoration and waste management         
   activities necessary for national security programs.                    
     (f) Duration of Authority.--The managers of the field offices of the 
  Department may exercise the authority provided under subsection (a)     
  during the period beginning on October 1, 2001, and ending on September 
  30, 2002.                                                               
          SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES FUNDS.                        

     (a) Transfer Authority for Weapons Activities Funds.--The Secretary  
  of Energy shall provide the manager of each field office of the         
  Department of Energy with the authority to transfer weapons activities  
  funds from a program or project under the jurisdiction of that office to
  another such program or project.                                        
     (b) Limitations.--(1) Not more than one transfer may be made to or   
  from any program or project under subsection (a) in a fiscal year.      
     (2) The amount transferred to or from a program or project in any one
  transfer under subsection (a) may not exceed $5,000,000.                
     (3) A transfer may not be carried out by a manager of a field office 
  under subsection (a) unless the manager determines that the transfer--  
       (A) is necessary to address a risk to health, safety, or the        
   environment; or                                                         
     (B) will result in cost savings and efficiencies.                     

     (4) A transfer may not be carried out by a manager of a field office 
  under subsection (a) to cover a cost overrun or scheduling delay for any
  program or project.                                                     
     (5) Funds transferred pursuant to subsection (a) may not be used for 
  an item for which Congress has specifically denied funds or for a new   
  program or project that has not been authorized by Congress.            
     (c) Exemption From Reprogramming Requirements.--The requirements of  
  section 3121 shall not apply to transfers of funds pursuant to          
  subsection (a).                                                         
     (d) Notification.--The Secretary, acting through the Administrator   
  for Nuclear Security, shall notify Congress of any transfer of funds    
  pursuant to subsection (a) not later than 30 days after such transfer   
  occurs.                                                                 
    (e)  Definitions.--In this section:                                   

       (1) The term ``program or project'' means, with respect to a field  
   office of the Department of Energy, any of the following:               

     (A) A program referred to or a project listed in 3101(1).             

       (B) A program or project not described in subparagraph (A) that is  
   for weapons activities necessary for national security programs of the  
   Department, that is being carried out by that office, and for which     
   weapons activities funds have been authorized and appropriated before   
   the date of the enactment of this Act.                                  
       (2) The term ``weapons activities funds'' means funds appropriated  
   to the Department of Energy pursuant to an authorization for carrying   
   out weapons activities necessary for national security programs.        
     (f) Duration of Authority.--The managers of the field offices of the 
  Department may exercise the authority provided under subsection (a)     
  during the period beginning on October 1, 2001, and ending on September 
  30, 2002.                                                               
           Subtitle C--Program Authorizations, Restrictions, and Limitations       

                    SEC. 3131. CONSOLIDATION OF NUCLEAR CITIES INITIATIVE PROGRAM 
          WITH INITIATIVES FOR PROLIFERATION PREVENTION PROGRAM.                  
     The Administrator for Nuclear Security shall consolidate the Nuclear 
  Cities Initiative program with the Initiatives for Proliferation        
  Prevention program under a single management line.                      
          SEC. 3132. NUCLEAR CITIES INITIATIVE.                                   

     (a) Limitations on Use of Funds.--No funds authorized to be          
  appropriated for the Nuclear Cities Initiative after fiscal year 2001   
  may be obligated or expended with respect to more than three nuclear    
  cities, or more than two serial production facilities in Russia, until  
  30 days after the Administrator for Nuclear Security submits to the     
  appropriate congressional committees an agreement signed by the Russian 
  Federation on access under the Nuclear Cities Initiative to the ten     
  closed nuclear cities and four serial production facilities of the      
  Nuclear Cities Initiative.                                              
     (b) Annual Report.--(1) Not later than the first Monday in February  
  each year, the Administrator shall submit to the appropriate            
  congressional committees a report on financial and programmatic         
  activities with respect to the Nuclear Cities Initiative during the     
  preceding fiscal year.                                                  
     (2) Each report shall include, for the fiscal year covered by such   
  report, the following:                                                  
       (A) A list of each project that is or was completed, ongoing, or    
   planned under the Nuclear Cities Initiative during such fiscal year.    
       (B) For each project listed under subparagraph (A), information,    
   current as of the end of such fiscal year, on the following:            
     (i) The purpose of such project.                                      

     (ii) The budget for such project.                                     

     (iii) The life-cycle costs of such project.                           

     (iv) Participants in such project.                                    

     (v) The commercial viability of such project.                         

       (vi) The number of jobs in Russia created or to be created by or    
   through such project.                                                   
       (vii) Of the total amount of funds spent on such project, the       
   percentage of such amount spent in the United States and the percentage 
   of such amount spent overseas.                                          
       (C) A certification by the Administrator that each project listed   
   under subparagraph (A) did contribute, is contributing, or will         
   contribute, as the case may be, to the downsizing of the nuclear weapons
   complex in Russia, together with a description of the evidence utilized 
   to make such certification.                                             
    (c)  Definitions.--In this section:                                   

       (1) Appropriate congressional committees.--The term ``appropriate   
   congressional committees'' means the Committee on Armed Services of the 
   Senate and the Committee on Armed Services of the House of              
   Representatives.                                                        
       (2) Nuclear cities initiative.--The term ``Nuclear Cities           
   Initiative'' means the initiative arising pursuant to the March 1998    
   discussion between the Vice President of the United States and the Prime
   Minister of the Russian Federation and between the Secretary of Energy  
   of the United States and the Minister of Atomic Energy of the Russian   
   Federation.                                                             
       (3) Nuclear city.--The term ``nuclear city'' means any of the       
   nuclear cities within the complex of the Russia Ministry of Atomic      
   Energy (MINATOM) as follows:                                            
     (A) Sarov (Arzamas 16 and Avangard).                                  

     (B) Zarechnyy (Penza 19).                                             

     (C) Novoural'sk (Sverdlovsk 44).                                      

     (D) Lesnoy (Sverdlovsk 45).                                           

     (E) Ozersk (Chelyabinsk 65).                                          

     (F) Snezhinsk (Chelyabinsk 70).                                       

     (G) Trechgornyy (Zlatoust 36).                                        

     (H) Seversk (Tomsk 7).                                                

     (I) Zhelenznogorsk (Krasnoyarsk 26).                                  

     (J) Zelenogorsk (Krasnoyarsk 45).                                     

                    SEC. 3133. LIMITATION ON AVAILABILITY OF FUNDS FOR WEAPONS    
          ACTIVITIES FOR FACILITIES AND INFRASTRUCTURE.                           
     Not more than 50 percent of the funds authorized to be appropriated  
  by section 3101(a)(1)(D) for the National Nuclear Security              
  Administration for weapons activities for facilities and infrastructure 
  may be obligated or expended until the Administrator for Nuclear        
  Security submits to the congressional defense committees a report       
  setting forth the following:                                            
       (1) Criteria for the selection of projects to be carried out using  
   such funds.                                                             
     (2) Criteria for establishing priorities among projects so selected.  

       (3) A list of the projects so selected, including the priority      
   assigned to each such project.                                          
                    SEC. 3134. LIMITATION ON AVAILABILITY OF FUNDS FOR OTHER      
          DEFENSE ACTIVITIES FOR NATIONAL SECURITY PROGRAMS ADMINISTRATIVE        
          SUPPORT.                                                                
     Not more than $5,000,000 of the funds authorized to be appropriated  
  by section 3103(a)(8) for other defense activities for national security
  programs administrative support may be obligated or expended until the  
  latest of the following:                                                
       (1) The date on which the Secretary of Energy submits to Congress a 
   report setting forth the purposes for which the Secretary plans to      
   obligate and expend such funds.                                         
       (2) The date on which the Administrator for Nuclear Security submits
   to Congress the future-years nuclear security program for fiscal year   
   2002 required by section 3253 of the National Nuclear Security          
   Administration Act (title XXXII of Public Law 106 65; 50 U.S.C. 2453).  
       (3) The date on which the Secretary of Energy submits to Congress   
   the report on the feasibility of using an energy savings performance    
   contract mechanism to offset, or possibly cover, the cost of a new      
   office building for the Albuquerque operations office of the Department 
   of Energy, as completed by the Secretary in accordance with the         
   directive contained in Senate Report 106 50 (the report of the Committee
   on Armed Services of the Senate to accompany the bill S. 1059 of the One
   Hundred Sixth Congress, relating to the National Defense Authorization  
   Act for Fiscal Year 2000; p. 470).                                      
                    SEC. 3135. TERMINATION DATE OF OFFICE OF RIVER PROTECTION,    
          RICHLAND, WASHINGTON.                                                   
     Subsection (f) of section 3139 of the Strom Thurmond National Defense
  Authorization Act for Fiscal Year 1999 (Public Law 105 261; 112 Stat.   
  2250), as amended by section 3141 of the Floyd D. Spence National       
  Defense Authorization Act for Fiscal Year 2001 (as enacted into law by  
  Public Law 106 398; 114 Stat. 1654A 462), is amended to read as follows:
     ``(f) Termination.--(1) The Office shall terminate on the later to   
  occur of the following dates:                                           
     ``(A) September 30, 2010.                                             

       ``(B) The date on which the Assistant Secretary of Energy for       
   Environmental Management determines, in consultation with the head of   
   the Office, that continuation of the Office is no longer necessary to   
   carry out the responsibilities of the Department of Energy under the    
   Tri-Party Agreement.                                                    
     ``(2) The Assistant Secretary shall notify, in writing, the          
  committees referred to in subsection (d) of a determination under       
  paragraph (1).                                                          
     ``(3) In this subsection, the term `Tri-Party Agreement' means the   
  Hanford Federal Facility Agreement and Consent Order entered into among 
  the Department of Energy, the Environmental Protection Agency, and the  
  State of Washington Department of Ecology.''.                           
                    SEC. 3136. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS
          ALAMOS NATIONAL LABORATORY, NEW MEXICO.                                 
     (a) Support for Fiscal 2002.--From amounts appropriated or otherwise 
  made available to the Secretary of Energy by this title--               
       (1) $6,900,000 shall be available for payment by the Secretary for  
   fiscal year 2002 to the Los Alamos National Laboratory Foundation, a    
   not-for-profit foundation chartered in accordance with section 3167(a)  
   of the National Defense Authorization Act for Fiscal Year 1998 (Public  
   Law 105 85; 111 Stat. 2052); and                                        
       (2) $8,000,000 shall be available for extension of the contract     
   between the Department of Energy and the Los Alamos Public Schools      
   through fiscal year 2002.                                               
     (b) Support for Fiscal 2003.--Subject to the availability of         
  appropriations, the Secretary is authorized to--                        
       (1) make payment for fiscal year 2003 similar to the payment        
   referred to in subsection (a)(1); and                                   
       (2) provide for a contract extension through fiscal 2003 similar to 
   the contract extension referred to in subsection (a)(2).                

     (c) Use of Funds.--The foundation referred to in subsection (a)(1)   
  shall--                                                                 
       (1) utilize funds provided under this section as a contribution to  
   the endowment fund for the foundation; and                              
       (2) use the income generated from investments in the endowment fund 
   that are attributable to payments made under this section to fund       
   programs to support the educational needs of children in public schools 
   in the vicinity of Los Alamos National Laboratory.                      
     (d) Report.--Not later than March 1, 2002, the Secretary shall submit
  to the congressional defense committees a report setting forth the      
  following:                                                              
       (1) An evaluation of the requirements for continued payments beyond 
   fiscal year 2003 into the endowment fund of the foundation referred to  
   in subsection (a) to enable the foundation to meet the goals of the     
   Department to support the recruitment and retention of staff at the Los 
   Alamos National Laboratory.                                             
       (2) The Secretary's recommendations for any further support beyond  
   fiscal year 2003 directly to the Los Alamos Public Schools.             
                    SEC. 3137. REPORTS ON ACHIEVEMENT OF MILESTONES FOR NATIONAL  
          IGNITION FACILITY.                                                      
     (a) Notification of Achievement.--The Administrator for Nuclear      
  Security shall notify the congressional defense committees when the     
  National Ignition Facility (NIF), Lawrence Livermore National           
  Laboratory, Livermore, California, achieves each Level I milestone and  
  Level II milestone for the National Ignition Facility.                  
     (b) Report on Failure of Timely Achievement.--Not later than 10 days 
  after the date on which the National Ignition Facility fails to achieve 
  a Level I milestone or Level II milestone for the National Ignition     
  Facility in a timely manner, the Administrator shall submit to the      
  congressional defense committees a report on such failure. Each such    
  report shall include--                                                  
       (1) a statement of the failure of the National Ignition Facility to 
   achieve the milestone concerned in a timely manner;                     
     (2) an explanation for the failure; and                               

     (3) either--                                                          

     (A) an estimate when that milestone will be achieved; or              

     (B) if that milestone will not be achieved--                          

     (i) a statement that that milestone will not be achieved;             

     (ii) an explanation why that milestone will not be achieved; and      

       (iii) the implications for the overall scope, schedule, and budget  
   of the National Ignition Facility project of not achieving that         
   milestone.                                                              
     (c) Milestones.--For purposes of this section, the Level I milestones
  and Level II milestones for the National Ignition Facility are as       
  established in the August 2000 revised National Ignition Facility       
  baseline document.                                                      
     (d) Termination.--The requirements of this section shall terminate on
  September 30, 2004.                                                     
                      Subtitle D--Matters Relating to Management of the National   
           Nuclear Security Administration                                         
                    SEC. 3141. ESTABLISHMENT OF PRINCIPAL DEPUTY ADMINISTRATOR OF 
          NATIONAL NUCLEAR SECURITY ADMINISTRATION.                               
     (a) Establishment.--Subtitle A of the National Nuclear Security      
  Administration Act (title XXXII of Public Law 106 65; 50 U.S.C. 2401 et 
  seq.) is amended--                                                      
       (1) by redesignating section 3213 as section 3220 and transferring  
   such section, as so redesignated, to the end of that subtitle; and      
     (2) by inserting after section 3212 the following new section 3213:   

          ``SEC. 3213. PRINCIPAL DEPUTY ADMINISTRATOR FOR NUCLEAR SECURITY.       

     ``(a) In General.--(1) There is in the Administration a Principal    
  Deputy Administrator, who is appointed by the President, by and with the
  advice and consent of the Senate.                                       
     ``(2) The Principal Deputy Administrator shall be appointed from     
  among persons who have extensive background in organizational management
  and are well qualified to manage the nuclear weapons, nonproliferation, 
  and materials disposition programs of the Administration in a manner    
  that advances and protects the national security of the United States.  
     ``(b) Duties.--Subject to the authority, direction, and control of   
  the Administrator, the Principal Deputy Administrator shall perform such
  duties and exercise such powers as the Administrator may prescribe,     
  including the coordination of activities among the elements of the      
  Administration. The Principal Deputy Administrator shall act for, and   
  exercise the powers of, the Administrator when the Administrator is     
  disabled or the position of Administrator is vacant.''.                 
     (b) Pay Level.--Section 5315 of title 5, United States Code, is      
  amended--                                                               
       (1) by inserting before the item relating to Deputy Administrators  
   of the National Nuclear Security Administration the following new item: 
       ``Principal Deputy Administrator, National Nuclear Security         
   Administration.''; and                                                  
       (2) by inserting ``Additional'' before ``Deputy Administrators of   
   the National Nuclear Security Administration''.                         
     (c) Clerical Amendments.--The table of contents preceding section    
  3201 of such Act is amended--                                           
       (1) by striking the item relating to section 3213 and inserting the 
   following:                                                              


      ``Sec. 3213. Principal Deputy Administrator for National Security.'';   


   and                                                                     

       (2) by inserting after the item relating to section 3218 the        
   following new items:                                                    


            ``Sec. 3219. Scope of authority of Secretary of Energy to modify  
      organization of Administration.                                         
            ``Sec. 3220. Status of Administration and contractor personnel    
      within Department of Energy.''.                                         

                    SEC. 3142. ELIMINATION OF REQUIREMENT THAT NATIONAL SECURITY  
          LABORATORIES AND NUCLEAR WEAPONS PRODUCTION FACILITIES REPORT TO DEPUTY 
          ADMINISTRATOR FOR DEFENSE PROGRAMS.                                     
     Section 3214 of the National Nuclear Security Administration Act     
  (title XXXII of Public Law 106 65; 113 Stat. 959; 50 U.S.C. 2404) is    
  amended by striking subsection (c).                                     
                    SEC. 3143. REPEAL OF DUPLICATIVE PROVISION RELATING TO DUAL   
          OFFICE HOLDING BY PERSONNEL OF NATIONAL NUCLEAR SECURITY ADMINISTRATION.
     Section 3245 of the National Nuclear Security Administration Act (50 
  U.S.C. 2443), as added by section 315 of the Energy and Water           
  Development Appropriations Act, 2001 (as enacted into law by Public Law 
  106 377; 114 Stat. 1441B 23), is repealed.                              
                    SEC. 3144. REPORT ON ADEQUACY OF FEDERAL PAY AND HIRING       
          AUTHORITIES TO MEET PERSONNEL REQUIREMENTS OF NATIONAL NUCLEAR SECURITY 
          ADMINISTRATION.                                                         
     (a) Report Required.--Not later than March 1, 2002, the Administrator
  for Nuclear Security shall submit to the congressional committees       
  specified in subsection (b) a report on the adequacy of Federal pay and 
  hiring authorities to meet the personnel requirements of the National   
  Nuclear Security Administration. The report shall include the following:
       (1) A description of the Federal pay and hiring authorities         
   available to the Administrator.                                         
       (2) A description of the Federal pay and hiring authorities that are
   not available to the Administrator, and an explanation why such         
   authorities are not available.                                          
       (3) If any Federal pay and hiring authorities referred to in        
   paragraph (1) are not being used, an explanation why such authorities   
   are not being used.                                                     

       (4) An assessment of whether or not existing Federal pay and hiring 
   authorities are adequate or inadequate to meet the personnel            
   requirements of the Administration.                                     
       (5) Any recommendations that the Administrator considers appropriate
   for modifications or enhancements of existing Federal pay and hiring    
   authorities in order to meet the personnel requirements of the          
   Administration.                                                         
       (6) Any recommendations that the Administrator considers appropriate
   for new Federal pay and hiring authorities in order to meet the         
   personnel requirements of the Administration.                           
       (7) A plan for structuring the pay and hiring authorities with      
   respect to the Federal workforce of the Administration so to ensure that
   such workforce meets applicable requirements of the most current        
   five-year program plan for the Administration.                          
     (b) Specified Committees.--The congressional committees referred to  
  in subsection (a) are the following:                                    
       (1) The Committee on Armed Services and the Committee on            
   Governmental Affairs of the Senate.                                     
       (2) The Committee on Armed Services and the Committee on Government 
   Reform of the House of Representatives.                                 
           Subtitle E--Other Matters                                               

                    SEC. 3151. IMPROVEMENTS TO ENERGY EMPLOYEES OCCUPATIONAL      
          ILLNESS COMPENSATION PROGRAM.                                           
     (a) Amendments to Energy Employees Program.--The Energy Employees    
  Occupational Illness Compensation Program Act of 2000 (title XXXVI of   
  the Floyd D. Spence National Defense Authorization Act for Fiscal Year  
  2001 (as enacted into law by Public Law 106 398; 114 Stat. 1654A 394);  
  42 U.S.C. 7384 et seq.) is amended as follows:                          
       (1) Certain leukemia as specified cancer.--Section 3621(17) (114    
   Stat. 1654A 502; 42 U.S.C. 7384l(17)), as amended by section 2403 of the
   Supplemental Appropriations Act, 2001 (Public Law 107 20; 115 Stat.     
   175), is further amended by adding at the end the following new         
   subparagraph:                                                           
       ``(D) Leukemia (other than chronic lymphocytic leukemia), if initial
   occupation exposure occurred before 21 years of age and onset occurred  
   more than two years after initial occupational exposure.''.             
       (2) Additional members of special exposure cohort.--Section 3626(b) 
   (114 Stat. 1654A 505; 42 U.S.C. 7384q(b)) is amended in the matter      
   preceding paragraph (1) by inserting after ``Department of Energy       
   facility'' the following: ``, or at an atomic weapons employer          
   facility,''.                                                            
       (3) Establishment of chronic silicosis.--Section 3627(e)(2)(A) (114 
   Stat. 1654A 506; 42 U.S.C. 7384r(e)(2)(A)) is amended by striking       
   ``category 1/1'' and inserting ``category 1/0''.                        
     (4)  Survivors.--                                                     

       (A) Section 3628(e) (114 Stat. 1654A 506; 42 U.S.C. 7384s(e)) is    
   amended to read as follows:                                             
     ``(e) Payments in the case of deceased persons.--(1) In the case of a
  covered employee who is deceased at the time of payment of compensation 
  under this section, whether or not the death is the result of the       
  covered employee's occupational illness, such payment may be made only  
  as follows:                                                             
       ``(A) If the covered employee is survived by a spouse who is living 
   at the time of payment, such payment shall be made to such surviving    
   spouse.                                                                 
       ``(B) If there is no surviving spouse described in subparagraph (A),
   such payment shall be made in equal shares to all children of the       
   covered employee who are living at the time of payment.                 
       ``(C) If there is no surviving spouse described in subparagraph (A) 
   and if there are no children described in subparagraph (B), such payment
   shall be made in equal shares to the parents of the covered employee who
   are living at the time of payment.                                      
       ``(D) If there is no surviving spouse described in subparagraph (A),
   and if there are no children described in subparagraph (B) or parents   
   described in subparagraph (C), such payment shall be made in equal      
   shares to all grandchildren of the covered employee who are living at   
   the time of payment.                                                    
       ``(E) If there is no surviving spouse described in subparagraph (A),
   and if there are no children described in subparagraph (B), parents     
   described in subparagraph (C), or grandchildren described in            
   subparagraph (D), then such payment shall be made in equal shares to the
   grandparents of the covered employee who are living at the time of      
   payment.                                                                
       ``(F) Notwithstanding the other provisions of this paragraph, if    
   there is--                                                              
     ``(i) a surviving spouse described in subparagraph (A); and           

       ``(ii) at least one child of the covered employee who is living and 
   a minor at the time of payment and who is not a recognized natural child
   or adopted child of such surviving spouse,                              
      then half of such payment shall be made to such surviving spouse, and
   the other half of such payment shall be made in equal shares to each    
   child of the covered employee who is living and a minor at the time of  
   payment.                                                                
     ``(2) If a covered employee eligible for payment dies before filing a
  claim under this title, a survivor of that employee who may receive     
  payment under paragraph (1) may file a claim for such payment.          
    ``(3) For purposes of this subsection--                               

       ``(A) the `spouse' of an individual is a wife or husband of that    
   individual who was married to that individual for at least one year     
   immediately before the death of that individual;                        
       ``(B) a `child' includes a recognized natural child, a stepchild who
   lived with an individual in a regular parent-child relationship, and an 
   adopted child;                                                          
     ``(C) a `parent' includes fathers and mothers through adoption;       

       ``(D) a `grandchild' of an individual is a child of a child of that 
   individual; and                                                         
       ``(E) a `grandparent' of an individual is a parent of a parent of   
   that individual.''.                                                     
       (B) Section 3630(e) (114 Stat. 1654A 507; 42 U.S.C. 7384u(e)) is    
   amended to read as follows:                                             
     ``(e) Payments in the case of deceased persons.--(1) In the case of a
  covered employee who is deceased at the time of payment of compensation 
  under this section, whether or not the death is the result of the       
  covered employee's occupational illness, such payment may be made only  
  as follows:                                                             
       ``(A) If the covered employee is survived by a spouse who is living 
   at the time of payment, such payment shall be made to such surviving    
   spouse.                                                                 
       ``(B) If there is no surviving spouse described in subparagraph (A),
   such payment shall be made in equal shares to all children of the       
   covered employee who are living at the time of payment.                 
       ``(C) If there is no surviving spouse described in subparagraph (A) 
   and if there are no children described in subparagraph (B), such payment
   shall be made in equal shares to the parents of the covered employee who
   are living at the time of payment.                                      
       ``(D) If there is no surviving spouse described in subparagraph (A),
   and if there are no children described in subparagraph (B) or parents   
   described in subparagraph (C), such payment shall be made in equal      
   shares to all grandchildren of the covered employee who are living at   
   the time of payment.                                                    
       ``(E) If there is no surviving spouse described in subparagraph (A),
   and if there are no children described in subparagraph (B), parents     
   described in subparagraph (C), or grandchildren described in            
   subparagraph (D), then such payment shall be made in equal shares to the
   grandparents of the covered employee who are living at the time of      
   payment.                                                                
       ``(F) Notwithstanding the other provisions of this paragraph, if    
   there is--                                                              
     ``(i) a surviving spouse described in subparagraph (A); and           

       ``(ii) at least one child of the covered employee who is living and 
   a minor at the time of payment and who is not a recognized natural child
   or adopted child of such surviving spouse,                              
      then half of such payment shall be made to such surviving spouse, and
   the other half of such payment shall be made in equal shares to each    
   child of the covered employee who is living and a minor at the time of  
   payment.                                                                
     ``(2) If a covered employee eligible for payment dies before filing a
  claim under this title, a survivor of that employee who may receive     
  payment under paragraph (1) may file a claim for such payment.          
    ``(3) For purposes of this subsection--                               

       ``(A) the `spouse' of an individual is a wife or husband of that    
   individual who was married to that individual for at least one year     
   immediately before the death of that individual;                        
       ``(B) a `child' includes a recognized natural child, a stepchild who
   lived with an individual in a regular parent-child relationship, and an 
   adopted child;                                                          
     ``(C) a `parent' includes fathers and mothers through adoption;       

       ``(D) a `grandchild' of an individual is a child of a child of that 
   individual; and                                                         
       ``(E) a `grandparent' of an individual is a parent of a parent of   
   that individual.''.                                                     
       (C) Paragraph (18) of section 3621 (114 Stat. 1654A 502; 42 U.S.C.  
   7384l) is repealed.                                                     
       (D) The amendments made by this paragraph shall take effect on July 
   1, 2001.                                                                
       (5) Election of remedies.--Section 3645 (114 Stat. 1654A 510; 42    
   U.S.C. 7385d) is amended by amending subsections (a) through (d) to read
   as follows:                                                             

     ``(a) Effect of Tort Cases Filed Before Enactment of Original        
  Law.--(1) Except as provided in paragraph (2), if an otherwise eligible 
  individual filed a tort case specified in subsection (d) before October 
  30, 2000, such individual shall be eligible for compensation and        
  benefits under subtitle B.                                              
     ``(2) If such tort case remained pending as of the date of the       
  enactment of the National Defense Authorization Act for Fiscal Year     
  2002, and such individual does not dismiss such tort case before        
  December 31, 2003, such individual shall not be eligible for such       
  compensation or benefits.                                               
     ``(b) Effect of Tort Cases Filed Between Enactment of Original Law   
  and Enactment of 2001 Amendments.--(1) Except as provided in paragraph  
  (2), if an otherwise eligible individual filed a tort case specified in 
  subsection (d) during the period beginning on October 30, 2000, and     
  ending on the date of the enactment of the National Defense             
  Authorization Act for Fiscal Year 2002, such individual shall not be    
  eligible for such compensation or benefits.                             
     ``(2) If such individual dismisses such tort case on or before the   
  last permissible date specified in paragraph (3), such individual shall 
  be eligible for such compensation or benefits.                          
     ``(3) The last permissible date referred to in paragraph (2) is the  
  later of the following dates:                                           
     ``(A) April 30, 2003.                                                 

       ``(B) The date that is 30 months after the date the individual first
   becomes aware that an illness covered by subtitle B of a covered        
   employee may be connected to the exposure of the covered employee in the
   performance of duty under section 3623.                                 
     ``(c) Effect of Tort Cases Filed After Enactment of 2001             
  Amendments.--(1) If an otherwise eligible individual files a tort case  
  specified in subsection (d) after the date of the enactment of the      
  National Defense Authorization Act for Fiscal Year 2002, such individual
  shall not be eligible for such compensation or benefits if a final court
  decision is entered against such individual in such tort case.          
     ``(2) If such a final court decision is not entered, such individual 
  shall nonetheless not be eligible for such compensation or benefits,    
  except as follows: If such individual dismisses such tort case on or    
  before the last permissible date specified in paragraph (3), such       
  individual shall be eligible for such compensation and benefits.        
     ``(3) The last permissible date referred to in paragraph (2) is the  
  later of the following dates:                                           
     ``(A) April 30, 2003.                                                 

       ``(B) The date that is 30 months after the date the individual first
   becomes aware that an illness covered by subtitle B of a covered        
   employee may be connected to the exposure of the covered employee in the
   performance of duty under section 3623.                                 
     ``(d) Covered Tort Cases.--A tort case specified in this subsection  
  is a tort case alleging a claim referred to in section 3643 against a   
  beryllium vendor or atomic weapons employer.''.                         
       (6) Attorney fees.--Section 3648 (114 Stat. 1654A 511; 42 U.S.C.    
   7385g) is amended--                                                     
       (A) in subsection (a), by inserting after ``the claim of an         
   individual'' the following: ``for payment of lump-sum compensation'';   
       (B) in subsection (b)(1), by inserting after ``initial claim'' the  
   following: ``for payment of lump-sum compensation'';                    
       (C) in subsection (b)(2), by striking ``with respect to any claim'' 
   and all that follows through the period at the end and inserting ``with 
   respect to objections to a recommended decision denying payment of      
   lump-sum compensation.'';                                               
     (D) by redesignating subsection (c) as subsection (d); and            

       (E) by inserting after subsection (b) the following new subsection  
   (c):                                                                    
     ``(c) Inapplicability to Other Services.--This section shall not     
  apply with respect to services rendered that are not in connection with 
  such a claim for payment of lump-sum compensation.''.                   
     (b) Study of Residual Contamination of Facilities.--(1) The National 
  Institute for Occupational Safety and Health shall, with the cooperation
  of the Department of Energy and the Department of Labor, carry out a    
  study on the following matters:                                         
       (A) Whether or not significant contamination remained in any atomic 
   weapons employer facility or facility of a beryllium vendor after such  
   facility discontinued activities relating to the production of nuclear  
   weapons.                                                                
       (B) If so, whether or not such contamination could have caused or   
   substantially contributed to the cancer of a covered employee with      
   cancer or a covered beryllium illness, as the case may be.              
     (2)(A) The National Institute for Occupational Safety and Health     
  shall submit to the applicable congressional committees the following   
  reports:                                                                
       (i) Not later than 180 days after the date of the enactment of this 
   Act, a report on the progress made as of the date of the report on the  
   study required by paragraph (1).                                        
       (ii) Not later than one year after the date of the enactment of this
   Act, a final report on the study required by paragraph (1).             
     (B) In this paragraph, the term ``applicable congressional           
  committees'' means--                                                    
       (i) the Committee on Armed Services, Committee on Appropriations,   
   Committee on the Judiciary, and Committee on Health, Education, Labor,  
   and Pensions of the Senate; and                                         
       (ii) the Committee on Armed Services, Committee on Appropriations,  
   Committee on the Judiciary, and Committee on Education and the Workforce
   of the House of Representatives.                                        
     (3) Amounts for the study under paragraph (1) shall be derived from  
  amounts authorized to be appropriated by section 3614(a) of the Energy  
  Employees Occupational Illness Compensation Program Act of 2000 (114    
  Stat. 1654A 498).                                                       
    (4) In this subsection:                                               

       (A) The terms ``atomic weapons employer facility'', ``beryllium     
   vendor'', ``covered employee with cancer'', and ``covered beryllium     
   illness'' have the meanings given those terms in section 3621 of the    
   Energy Employees Occupational Illness Compensation Program Act of 2000  
   (114 Stat. 1654A 498; 42 U.S.C. 7384l).                                 
     (B) The term ``contamination'' means the presence of any--            

       (i) material that emitted radiation and was used in the production  
   of an atomic weapon, excluding uranium mining and milling; or           
     (ii) beryllium dust, particles, or vapor,                             

      exposure to which could cause or substantially contribute to the     
   cancer of a covered employee with cancer or a covered beryllium illness,
   as the case may be.                                                     
          SEC. 3152. DEPARTMENT OF ENERGY COUNTERINTELLIGENCE POLYGRAPH PROGRAM.  

     (a) New Counterintelligence Polygraph Program Required.--The         
  Secretary of Energy shall carry out, under regulations prescribed under 
  this section, a new counterintelligence polygraph program for the       
  Department of Energy. The purpose of the new program is to minimize the 
  potential for release or disclosure of classified data, materials, or   
  information.                                                            
     (b) Authorities and Limitations.--(1) The Secretary shall prescribe  
  regulations for the new counterintelligence polygraph program required  
  by subsection (a) in accordance with the provisions of subchapter II of 
  chapter 5 of title 5, United States Code (commonly referred to as the   
  Administrative Procedures Act).                                         
     (2) In prescribing regulations for the new program, the Secretary    
  shall take into account the results of the Polygraph Review.            

     (3) Not later than six months after obtaining the results of the     
  Polygraph Review, the Secretary shall issue a notice of proposed        
  rulemaking for the new program.                                         
     (c) Repeal of Existing Polygraph Program.--Effective 30 days after   
  the Secretary submits to the congressional defense committees the       
  Secretary's certification that the final rule for the new               
  counterintelligence polygraph program required by subsection (a) has    
  been fully implemented, section 3154 of the Department of Energy        
  Facilities Safeguards, Security, and Counterintelligence Enhancement Act
  of 1999 (subtitle D of title XXXI of Public Law 106 65; 42 U.S.C. 7383h)
  is repealed.                                                            
     (d) Report on Further Enhancement of Personnel Security Program.--(1)
  Not later than January 1, 2003, the Administrator for Nuclear Security  
  shall submit to Congress a report setting forth the recommendations of  
  the Administrator for any legislative action that the Administrator     
  considers appropriate in order to enhance the personnel security program
  of the Department of Energy.                                            
     (2) Any recommendations under paragraph (1) regarding the use of     
  polygraphs shall take into account the results of the Polygraph Review. 
     (e) Polygraph Review Defined.--In this section, the term ``Polygraph 
  Review'' means the review of the Committee to Review the Scientific     
  Evidence on the Polygraph of the National Academy of Sciences.          
                    SEC. 3153. ONE-YEAR EXTENSION OF AUTHORITY OF DEPARTMENT OF   
          ENERGY TO PAY VOLUNTARY SEPARATION INCENTIVE PAYMENTS.                  
     (a) In General.--Section 3161(a) of the National Defense             
  Authorization Act for Fiscal Year 2000 (Public Law 106 65; 113 Stat.    
  942; 5 U.S.C. 5597 note) is amended by striking ``January 1, 2003'' and 
  inserting ``January 1, 2004''.                                          
     (b) Construction.--The amendment made by subsection (a) may be       
  superseded by another provision of law that takes effect after the date 
  of the enactment of this Act, and before January 1, 2004, establishing a
  uniform system for providing voluntary separation incentives (including 
  a system for requiring approval of plans by the Office of Management and
  Budget) for employees of the Federal Government.                        
                    SEC. 3154. ANNUAL ASSESSMENT AND REPORT ON VULNERABILITY OF   
          DEPARTMENT OF ENERGY FACILITIES TO TERRORIST ATTACK.                    
     (a) In General.--Part C of title VI of the Department of Energy      
  Organization Act (42 U.S.C. 7251 et seq.) is amended by adding at the   
  end the following new section:                                          
    ``annual assessment and report on vulnerability of facilities to     
                            terrorist attack                             
     `` Sec. 663. (a) The Secretary shall, on an annual basis, conduct a  
  comprehensive assessment of the vulnerability of Department facilities  
  to terrorist attack.                                                    
     ``(b) Not later than January 31 each year, the Secretary shall submit
  to Congress a report on the assessment conducted under subsection (a)   
  during the preceding year. Each report shall include the results of the 
  assessment covered by such report, together with such findings and      
  recommendations as the Secretary considers appropriate.''.              
     (b) Clerical Amendment.--The table of sections at the beginning of   
  that Act is amended by inserting after the item relating to section 662 
  the following new item:                                                 


            ``Sec. 663. Annual assessment and report on vulnerability of      
      facilities to terrorist attack.''.                                      

                    SEC. 3155. DISPOSITION OF SURPLUS DEFENSE PLUTONIUM AT        
          SAVANNAH RIVER SITE, AIKEN, SOUTH CAROLINA.                             
     (a) Consultation Required.--The Secretary of Energy shall consult    
  with the Governor of the State of South Carolina regarding any decisions
  or plans of the Secretary related to the disposition of surplus defense 
  plutonium and defense plutonium materials located at the Savannah River 
  Site, Aiken, South Carolina.                                            
     (b) Notice Required.--For each shipment of defense plutonium or      
  defense plutonium materials to the Savannah River Site, the Secretary   
  shall, not less than 30 days before the commencement of such shipment,  
  submit to the congressional defense committees a report providing notice
  of such shipment.                                                       
     (c) Plan for Disposition.--The Secretary shall prepare a plan for    
  disposal of the surplus defense plutonium and defense plutonium         
  materials currently located at the Savannah River Site and for disposal 
  of defense plutonium and defense plutonium materials to be shipped to   
  the Savannah River Site in the future. The plan shall include the       
  following:                                                              
     (1) A review of each option considered for such disposal.             

     (2) An identification of the preferred option for such disposal.      

       (3) With respect to the facilities for such disposal that are       
   required by the Department of Energy's Record of Decision for the       
   Storage and Disposition of Weapons-Usable Fissile Materials Final       
   Programmatic Environmental Impact Statement dated January 14, 1997--    
       (A) a statement of the cost of construction and operation of such   
   facilities;                                                             
       (B) a schedule for the expeditious construction of such facilities, 
   including milestones; and                                               
     (C) a firm schedule for funding the cost of such facilities.          

       (4) A specification of the means by which all such defense plutonium
   and defense plutonium materials will be removed in a timely manner from 
   the Savannah River Site for storage or disposal elsewhere.              
     (d) Plan for Alternative Disposition.--If the Secretary determines   
  not to proceed at the Savannah River Site with construction of the      
  plutonium immobilization plant, or with the mixed oxide fuel fabrication
  facility, the Secretary shall prepare a plan that identifies a          
  disposition path for all defense plutonium and defense plutonium        
  materials that would otherwise have been disposed of at such plant or   
  such facility, as applicable.                                           
     (e) Submission of Plans.--Not later than February 1, 2002, the       
  Secretary shall submit to Congress the plan required by subsection (c)  
  (and the plan prepared under subsection (d), if applicable).            
     (f) Limitation on Plutonium Shipments.--If the Secretary does not    
  submit to Congress the plan required by subsection (c) (and the plan    
  prepared under subsection (d), if applicable) by February 1, 2002, the  
  Secretary shall be prohibited from shipping defense plutonium or defense
  plutonium materials to the Savannah River Site during the period        
  beginning on February 1, 2002, and ending on the date on which such     
  plans are submitted to Congress.                                        
     (g) Rule of Construction.--Nothing in this section may be construed  
  to prohibit or limit the Secretary from shipping defense plutonium or   
  defense plutonium materials to sites other than the Savannah River Site 
  during the period referred to in subsection (f) or any other period.    
     (h) Annual Report on Funding for Fissile Materials Disposition       
  Activities.--The Secretary shall include with the budget justification  
  materials submitted to Congress in support of the Department of Energy  
  budget for each fiscal year (as submitted with the budget of the        
  President under section 1105(a) of title 31, United States Code) a      
  report setting forth the extent to which amounts requested for the      
  Department for such fiscal year for fissile materials disposition       
  activities will enable the Department to meet commitments for the       
  disposition of surplus defense plutonium and defense plutonium materials
  located at the Savannah River Site, and for any other fissile materials 
  disposition activities, in such fiscal year.                            
                    SEC. 3156. MODIFICATION OF DATE OF REPORT OF PANEL TO ASSESS  
          THE RELIABILITY, SAFETY, AND SECURITY OF THE UNITED STATES NUCLEAR      
          STOCKPILE.                                                              
     Section 3159(d) of the Strom Thurmond National Defense Authorization 
  Act for Fiscal Year 1999 (Public Law 105 261; 42 U.S.C. 2121 note) is   
  amended by striking ``of each year, beginning with 1999,'' and inserting
  ``of 1999 and 2000, and not later than February 1, 2002,''.             

           Subtitle F--Rocky Flats National Wildlife Refuge                        

          SEC. 3171. SHORT TITLE.                                                 

     This subtitle may be cited as the ``Rocky Flats National Wildlife    
  Refuge Act of 2001''.                                                   
          SEC. 3172. FINDINGS AND PURPOSES.                                       

    (a)  Findings.--Congress finds the following:                         

       (1) The Federal Government, through the Atomic Energy Commission,   
   acquired the Rocky Flats site in 1951 and began operations there in     
   1952. The site remains a Department of Energy facility. Since 1992, the 
   mission of the Rocky Flats site has changed from the production of      
   nuclear weapons components to cleanup and closure in a manner that is   
   safe, environmentally and socially responsible, physically secure, and  
   cost-effective.                                                         
       (2) The majority of the Rocky Flats site has generally remained     
   undisturbed since its acquisition by the Federal Government.            
       (3) The State of Colorado is experiencing increasing growth and     
   development, especially in the metropolitan Denver Front Range area in  
   the vicinity of the Rocky Flats site. That growth and development       
   reduces the amount of open space and thereby diminishes for many        
   metropolitan Denver communities the vistas of the striking Front Range  
   mountain backdrop.                                                      
       (4) Some areas of the Rocky Flats site contain contamination and    
   will require further response action. The national interest requires    
   that the ongoing cleanup and closure of the entire site be completed    
   safely, effectively, and without unnecessary delay and that the site    
   thereafter be retained by the United States and managed so as to        
   preserve the value of the site for open space and wildlife habitat.     
       (5) The Rocky Flats site provides habitat for many wildlife species,
   including a number of threatened and endangered species, and is marked  
   by the presence of rare xeric tallgrass prairie plant communities.      
   Establishing the site as a unit of the National Wildlife Refuge System  
   will promote the preservation and enhancement of those resources for    
   present and future generations.                                         
    (b)  Purposes.--The purposes of this subtitle are--                   

       (1) to provide for the establishment of the Rocky Flats site as a   
   national wildlife refuge following cleanup and closure of the site;     
       (2) to create a process for public input on the management of the   
   refuge referred to in paragraph (1) before transfer of administrative   
   jurisdiction to the Secretary of the Interior; and                      
       (3) to ensure that the Rocky Flats site is thoroughly and completely
   cleaned up.                                                             
          SEC. 3173. DEFINITIONS.                                                 

    In this subtitle:                                                     

       (1) CERCLA.--The term ``CERCLA'' means the Comprehensive            
   Environmental Response, Compensation, and Liability Act of 1980 (42     
   U.S.C. 9601 et seq.).                                                   
       (2) Cleanup and closure.--The term ``cleanup and closure'' means the
   response actions for covered substances carried out at Rocky Flats, as  
   required by any of the following:                                       
     (A) The RFCA.                                                         

     (B) CERCLA.                                                           

     (C) RCRA.                                                             

       (D) The Colorado Hazardous Waste Act, 25 15 101 to 25 15 327,       
   Colorado Revised Statutes.                                              
       (3) Covered substance.--The term ``covered substance'' means any of 
   the following:                                                          
       (A) Any hazardous substance, as such term is defined in paragraph   
   (14) of section 101 of CERCLA (42 U.S.C. 9601).                         
       (B) Any pollutant or contaminant, as such term is defined in        
   paragraph (33) of such section 101.                                     
       (C) Any petroleum, including crude oil or any fraction thereof which
   is not otherwise specifically listed or designated as a hazardous       
   substance under subparagraphs (A) through (F) of paragraph (14) of such 
   section 101.                                                            
       (4) RCRA.--The term ``RCRA'' means the Solid Waste Disposal Act (42 
   U.S.C. 6901 et seq.), popularly known as the Resource Conservation and  
   Recovery Act.                                                           
       (5) Refuge.--The term ``refuge'' means the Rocky Flats National     
   Wildlife Refuge established under section 3177.                         
       (6) Response action.--The term ``response action'' means any of the 
   following:                                                              
       (A) A response, as such term is defined in paragraph (25) of section
   101 of CERCLA (42 U.S.C. 9601).                                         
       (B) A corrective action under RCRA or under the Colorado Hazardous  
   Waste Act, 25 15 101 to 25 15 327, Colorado Revised Statutes.           
       (C) Any requirement for institutional controls imposed by any of the
   laws referred to in subparagraph (A) or (B).                            
       (7) RFCA.--The term ``RFCA'' means the Rocky Flats Cleanup          
   Agreement, an intergovernmental agreement, dated July 19, 1996, among-- 
     (A) the Department of Energy;                                         

     (B) the Environmental Protection Agency; and                          

       (C) the Department of Public Health and Environment of the State of 
   Colorado.                                                               
     (8)  Rocky flats.--                                                   

       (A) In general.--Except as provided in subparagraph (B), the term   
   ``Rocky Flats'' means the Rocky Flats Environmental Technology Site,    
   Colorado, a defense nuclear facility, as depicted on the map titled     
   ``Rocky Flats Environmental Technology Site'', dated October 22, 2001,  
   and available for inspection in the appropriate offices of the United   
   States Fish and Wildlife Service.                                       
     (B)  Exclusions.--The term ``Rocky Flats'' does not include--         

       (i) the land and facilities of the Department of Energy's National  
   Renewable Energy Laboratory, including the acres retained by the        
   Secretary under section 3174(f); and                                    
       (ii) any land and facilities not within the boundaries depicted on  
   the map referred to in subparagraph (A).                                
     (9)  Secretary.--The term ``Secretary'' means the Secretary of Energy.

          SEC. 3174. FUTURE OWNERSHIP AND MANAGEMENT.                             

     (a) Federal Ownership.--Except as expressly provided in this         
  subtitle, all right, title, and interest of the United States, held on  
  or acquired after the date of the enactment of this Act, to land or     
  interest therein, including minerals, within the boundaries of Rocky    
  Flats shall be retained by the United States.                           
     (b) Lindsay Ranch.--The structures that comprise the former Lindsay  
  Ranch homestead site in the Rock Creek Reserve area of the buffer zone, 
  as depicted on the map referred to in section 3173(8)(A), shall be      
  permanently preserved and maintained in accordance with the National    
  Historic Preservation Act (16 U.S.C. 470 et seq.).                      
     (c) Prohibition on Annexation.--Neither the Secretary nor the        
  Secretary of the Interior shall allow the annexation of land within the 
  refuge by any unit of local government.                                 
     (d) Prohibition on Through Roads.--Except as provided in subsection  
  (e), no public road shall be constructed through Rocky Flats.           
    (e)  Transportation Right-of-Way.--                                   

     (1)  In general.--                                                    

       (A) Availability of land.--On submission of an application meeting  
   each of the conditions specified in paragraph (2), the Secretary, in    
   consultation with the Secretary of the Interior, shall make available   
   land along the eastern boundary of Rocky Flats for the sole purpose of  
   transportation improvements along Indiana Street.                       
       (B) Boundaries.--Land made available under this paragraph may not   
   extend more than 300 feet from the west edge of the Indiana Street      
   right-of-way, as that right-of-way exists as of the date of the         
   enactment of this Act.                                                  
       (C) Easement or sale.--Land may be made available under this        
   paragraph by easement or sale to one or more appropriate entities.      
       (D) Compliance with applicable law.--Any action under this paragraph
   shall be taken in compliance with applicable law.                       
       (2) Conditions.--An application referred to in paragraph (1) meets  
   the conditions specified in this paragraph if the application--         
       (A) is submitted by any county, city, or other political subdivision
   of the State of Colorado; and                                           
       (B) includes documentation demonstrating that the transportation    
   improvements for which the land is to be made available--               
       (i) are carried out so as to minimize adverse effects on the        
   management of Rocky Flats as a wildlife refuge; and                     
       (ii) are included in the regional transportation plan of the        
   metropolitan planning organization designated for the Denver            
   metropolitan area under section 5303 of title 49, United States Code.   
     (f) Wind Technology Expansion Area.--The Secretary shall retain, for 
  the use of the National Renewable Energy Laboratory, the approximately  
  25 acres identified on the map referred to in section 3173(8)(A) as the 
  ``Wind Technology Expansion Area''.                                     
                    SEC. 3175. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND        
          JURISDICTION OVER ROCKY FLATS.                                          
    (a)  Transfer Required.--                                             


       (1) In general.--Subject to the other provisions of this section,   
   the Secretary shall transfer administrative jurisdiction over the       
   property that is to comprise the refuge to the Secretary of the         
   Interior.                                                               
       (2) Date of transfer.--The transfer shall be carried out not earlier
   than the completion certification date, and not later than 30 business  
   days after that date.                                                   
       (3) Completion certification date.--For purposes of paragraph (2),  
   the completion certification date is the date on which the Administrator
   of the Environmental Protection Agency certifies to the Secretary and to
   the Secretary of the Interior that cleanup and closure at Rocky Flats   
   has been completed, except for the operation and maintenance associated 
   with response actions, and that all response actions are operating      
   properly and successfully.                                              
    (b)  Memorandum of Understanding.--                                   

       (1) Required elements.--The transfer required by subsection (a)     
   shall be carried out pursuant to a memorandum of understanding between  
   the Secretary and the Secretary of the Interior. The memorandum of      
   understanding shall--                                                   
       (A) provide for the division of responsibilities between the        
   Secretary and the Secretary of the Interior necessary to carry out such 
   transfer;                                                               
       (B) address the impacts that any property rights referred to in     
   section 3179(a) may have on the management of the refuge, and provide   
   strategies for resolving or mitigating these impacts;                   
       (C) identify the land the administrative jurisdiction of which is to
   be transferred to the Secretary of the Interior; and                    
       (D) specify the allocation of the Federal costs incurred at the     
   refuge after the date of such transfer for any site investigations,     
   response actions, and related activities for covered substances.        
       (2) Publication of draft.--Not later than one year after the date of
   the enactment of this Act, the Secretary and the Secretary of the       
   Interior shall publish in the Federal Register a draft of the memorandum
   of understanding.                                                       
     (3)  Finalization and implementation.--                               

       (A) Not later than 18 months after the date of the enactment of this
   Act, the Secretary and Secretary of the Interior shall finalize and     
   implement the memorandum of understanding.                              
       (B) In finalizing the memorandum of understanding, the Secretary and
   Secretary of the Interior shall specifically identify the land the      
   administrative jurisdiction of which is to be transferred to the        
   Secretary of the Interior and provide for a determination of the exact  
   acreage and legal description of such land by a survey mutually         
   satisfactory to the Secretary and the Secretary of the Interior.        
     (c) Transfer of Improvements.--The transfer required by subsection   
  (a) may include such buildings or other improvements as the Secretary of
  the Interior has requested in writing for purposes of managing the      
  refuge.                                                                 
    (d)  Property Retained for Response Actions.--                        

       (1) In general.--The transfer required by subsection (a) shall not  
   include, and the Secretary shall retain jurisdiction, authority, and    
   control over, the following real property and facilities at Rocky Flats:
       (A) Any engineered structure, including caps, barrier walls, and    
   monitoring or treatment wells, to be used in carrying out a response    
   action for covered substances.                                          
       (B) Any real property or facility to be used for any other purpose  
   relating to a response action or any other action that is required to be
   carried out by the Secretary at Rocky Flats.                            
       (2) Consultation.--The Secretary shall consult with the Secretary of
   the Interior, the Administrator of the Environmental Protection Agency, 
   and the Governor of the State of Colorado on the identification of all  
   real property and facilities to be retained under this subsection.      
     (e) Cost.--The transfer required by subsection (a) shall be completed
  without cost to the Secretary of the Interior.                          
     (f) No Reduction in Funds.--The transfer required by subsection (a), 
  and the memorandum of understanding required by subsection (b), shall   
  not result in any reduction in funds available to the Secretary for     
  cleanup and closure of Rocky Flats.                                     
                    SEC. 3176. ADMINISTRATION OF RETAINED PROPERTY; CONTINUATION  
          OF CLEANUP AND CLOSURE.                                                 
    (a)  Administration of Retained Property.--                           

       (1) In general.--In administering the property retained under       
   section 3175(d), the Secretary shall consult with the Secretary of the  
   Interior to minimize any conflict between--                             
       (A) the administration by the Secretary of such property for a      
   purpose relating to a response action; and                              
       (B) the administration by the Secretary of the Interior of land the 
   administrative jurisdiction of which is transferred under section       
   3175(a).                                                                
       (2) Priority in case of conflict.--In the case of any such conflict,
   the Secretary and the Secretary of the Interior shall ensure that the   
   administration for a purpose relating to a response action, as described
   in paragraph (1)(A), shall take priority.                               
       (3) Access.--The Secretary of the Interior shall provide to the     
   Secretary such access and cooperation with respect to the refuge as the 
   Secretary requires to carry out operation and maintenance, future       
   response actions, natural resources restoration, or any other           
   obligations.                                                            
    (b)  Ongoing Cleanup and Closure.--                                   

       (1) In general.--The Secretary shall carry out to completion cleanup
   and closure at Rocky Flats.                                             
       (2) Cleanup levels.--The Secretary shall carry out such cleanup and 
   closure to the levels established for soil, water, and other media,     
   following a thorough review by the parties to the RFCA and the public   
   (including the United States Fish and Wildlife Service and other        
   interested government agencies) of the appropriateness of the interim   
   levels in the RFCA.                                                     
       (3) No restriction on use of new technologies.--Nothing in this     
   subtitle, and no action taken under this subtitle, restricts the        
   Secretary from using at Rocky Flats any new technology that may become  
   available for remediation of contamination.                             
     (c) Opportunity to Comment.--The Secretary of the Interior shall have
  the opportunity to comment with respect to any proposed response action 
  as to the impacts, if any, of such proposed response action on the      
  refuge.                                                                 
    (d)  Rules of Construction.--                                         

       (1) No relief from obligations under other law.--Nothing in this    
   subtitle, and no action taken under this subtitle--                     
       (A) relieves the Secretary, the Administrator of the Environmental  
   Protection Agency, the Secretary of the Interior, or any other person   
   from any obligation or other liability with respect to Rocky Flats under
   the RFCA or any Federal or State law;                                   
     (B) impairs or alters any provision of the RFCA; or                   

       (C) alters any authority of the Administrator of the Environmental  
   Protection Agency under section 120(e) of CERCLA (42 U.S.C. 9620(e)), or
   any authority of the State of Colorado.                                 
       (2) Cleanup levels.--Nothing in this subtitle shall reduce the level
   of cleanup and closure at Rocky Flats required under the RFCA or any    
   Federal or State law.                                                   
       (3) Payment of response action costs.--Nothing in this subtitle     
   affects the obligation of a Federal department or agency that had or has
   operations at Rocky Flats resulting in the release or threatened release
   of a covered substance to pay the costs of response actions carried out 
   to abate the release of, or clean up, the covered substance.            
          SEC. 3177. ROCKY FLATS NATIONAL WILDLIFE REFUGE.                        

     (a) In General.--On completion of the transfer required by section   
  3175(a), and subject to section 3176(a), the Secretary of the Interior  
  shall commence administration of the real property comprising the refuge
  in accordance with this subtitle.                                       
     (b) Establishment of Refuge.--Not later than 30 days after the       
  transfer required by section 3175(a), the Secretary of the Interior     
  shall establish at Rocky Flats a national wildlife refuge to be known as
  the Rocky Flats National Wildlife Refuge.                               
     (c) Composition.--The refuge shall be comprised of the property the  
  administrative jurisdiction of which was transferred as required by     
  section 3175(a).                                                        
     (d) Notice.--The Secretary of the Interior shall publish in the      
  Federal Register a notice of the establishment of the refuge.           
    (e)  Administration and Purposes.--                                   

       (1) In general.--The Secretary of the Interior shall manage the     
   refuge in accordance with applicable law, including this subtitle, the  
   National Wildlife Refuge System Administration Act of 1966 (16 U.S.C.   
   668dd et seq.), and the purposes specified in that Act.                 
       (2) Refuge purposes.--The refuge shall be managed for the purposes  
   of--                                                                    
     (A) restoring and preserving native ecosystems;                       

       (B) providing habitat for, and population management of, native     
   plants and migratory and resident wildlife;                             
       (C) conserving threatened and endangered species (including species 
   that are candidates for listing under the Endangered Species Act of 1973
   (16 U.S.C. 1531 et seq.)); and                                          
     (D) providing opportunities for compatible scientific research.       

       (3) Management.--In managing the refuge, the Secretary of the       
   Interior shall--                                                        

       (A) ensure that wildlife-dependent recreation and environmental     
   education and interpretation are the priority public uses of the refuge;
   and                                                                     
     (B) comply with all response actions.                                 

          SEC. 3178. COMPREHENSIVE PLANNING PROCESS.                              

     (a) In General.--Not later than 180 days after the date of the       
  enactment of this Act, in developing a comprehensive conservation plan  
  for the refuge in accordance with section 4(e) of the National Wildlife 
  Refuge System Administration Act of 1966 (16 U.S.C. 668dd(e)), the      
  Secretary of the Interior shall establish a comprehensive planning      
  process that involves the public and local communities. The Secretary of
  the Interior shall establish such process in consultation with the      
  Secretary, the members of the Coalition, the Governor of the State of   
  Colorado, and the Federal and State of Colorado officials who have been 
  designated as trustees for Rocky Flats under section 107(f)(2) of CERCLA
  (42 U.S.C. 9607(f)(2)).                                                 
     (b) Other Participants.--In addition to the entities specified in    
  subsection (a), the comprehensive planning process required by          
  subsection (a) shall include the opportunity for direct involvement of  
  entities that are not members of the Coalition as of the date of the    
  enactment of this Act, including the Rocky Flats Citizens' Advisory     
  Board and the cities of Thornton, Northglenn, Golden, Louisville, and   
  Lafayette, Colorado.                                                    
     (c) Dissolution of Coalition.--If the Coalition dissolves, or if any 
  Coalition member elects to leave the Coalition during the comprehensive 
  planning process required by subsection (a)--                           
     (1) such comprehensive planning process shall continue; and           

       (2) an opportunity shall be provided to each entity that is a member
   of the Coalition as of September 1, 2000, for direct involvement in such
   comprehensive planning process.                                         
     (d) Contents.--In addition to the requirements of section 4(e) of the
  National Wildlife Refuge System Administration Act of 1966 (16 U.S.C.   
  668dd(e)), the comprehensive conservation plan referred to in subsection
  (a) shall address and make recommendations on the following:            
       (1) The identification of any land referred to in subsection (e) of 
   section 3174 that could be made available under that subsection.        
       (2) The characteristics and configuration of any perimeter fencing  
   that may be appropriate or compatible for cleanup and closure purposes, 
   refuge purposes, or other purposes.                                     
       (3) The feasibility of locating, and the potential location for, a  
   visitor and education center at the refuge.                             
     (4) Any other issues relating to Rocky Flats.                         

     (e) Coalition Defined.--In this section, the term ``Coalition'' means
  the Rocky Flats Coalition of Local Governments established by the       
  Intergovernmental Agreement, dated February 16, 1999, among--           
     (1) the city of Arvada, Colorado;                                     

     (2) the city of Boulder, Colorado;                                    

     (3) the city of Broomfield, Colorado;                                 

     (4) the city of Westminster, Colorado;                                

     (5) the town of Superior, Colorado;                                   

     (6) Boulder County, Colorado; and                                     

     (7) Jefferson County, Colorado.                                       

     (f) Report.--Not later than three years after the date of the        
  enactment of this Act, the Secretary of the Interior shall submit to    
  Congress--                                                              
       (1) the comprehensive conservation plan referred to in subsection   
   (a); and                                                                
     (2) a report that contains--                                          

       (A) an outline of the involvement of the public and local           
   communities in the comprehensive planning process, as required by       
   subsection (a);                                                         
       (B) to the extent that any input or recommendation from the         
   comprehensive planning process is not accepted, a clear statement of the
   reasons why such input or recommendation is not accepted; and           
       (C) a discussion of the impacts of any property rights referred to  
   in section 3179(a) on management of the refuge, and an identification of
   strategies for resolving and mitigating these impacts.                  
          SEC. 3179. PROPERTY RIGHTS.                                             

     (a) In General.--Except as provided in subsections (c) and (d),      
  nothing in this subtitle limits any valid, existing property right at   
  Rocky Flats that is owned by any person or entity, including, but not   
  limited to--                                                            
     (1) any mineral right;                                                

     (2) any water right or related easement; and                          

     (3) any facility or right-of-way for a utility.                       

     (b) Access.--Except as provided in subsection (c), nothing in this   
  subtitle affects any right of an owner of a property right referred to  
  in subsection (a) to access the owner's property.                       
    (c)  Reasonable Conditions.--                                         

       (1) In general.--The Secretary or the Secretary of the Interior may 
   impose such reasonable conditions on access to property rights referred 
   to in subsection (a) as are appropriate for the cleanup and closure of  
   Rocky Flats and for the management of the refuge.                       
       (2) No effect on other law.--Nothing in this subtitle affects any   
   Federal, State, or local law (including any regulation) relating to the 
   use, development, and management of property rights referred to in      
   subsection (a).                                                         
       (3) No effect on access rights.--Nothing in this subsection         
   precludes the exercise of any access right, in existence on the date of 
   the enactment of this Act, that is necessary to perfect or maintain a   
   water right in existence on that date.                                  
    (d)  Utility Extension.--                                             

       (1) In general.--The Secretary or the Secretary of the Interior may 
   allow not more than one extension from an existing utility right-of-way 
   on Rocky Flats, if necessary.                                           
       (2) Conditions.--An extension under paragraph (1) shall be subject  
   to the conditions specified in subsection (c).                          
     (e) Easement Surveys.--Subject to subsection (c), until the date that
  is 180 days after the date of the enactment of this Act, an entity that 
  possesses a decreed water right or prescriptive easement relating to    
  land at Rocky Flats may carry out such surveys at Rocky Flats as the    
  entity determines are necessary to perfect the right or easement.       
          SEC. 3180. LIABILITIES AND OTHER OBLIGATIONS.                           

     (a) In General.--Nothing in this subtitle shall relieve, and no      
  action may be taken under this subtitle to relieve, the Secretary, the  
  Secretary of the Interior, or any other person from any liability or    
  other obligation at Rocky Flats under CERCLA, RCRA, or any other Federal
  or State law.                                                           
     (b) Cost Recovery, Contribution, and Other Action.--Nothing in this  
  subtitle is intended to prevent the United States from bringing a cost  
  recovery, contribution, or other action that would otherwise be         
  available under Federal or State law.                                   
          SEC. 3181. ROCKY FLATS MUSEUM.                                          

     (a) Museum.--To commemorate the contribution that Rocky Flats and its
  worker force provided to winning the Cold War and the impact that such  
  contribution has had on the nearby communities and the State of         
  Colorado, the Secretary may establish a Rocky Flats Museum.             
     (b) Location.--The Rocky Flats Museum shall be located in the city of
  Arvada, Colorado, unless, after consultation under subsection (c), the  
  Secretary determines otherwise.                                         
     (c) Consultation.--The Secretary shall consult with the city of      
  Arvada, other local communities, and the Colorado State Historical      
  Society on--                                                            
     (1) the development of the museum;                                    

     (2) the siting of the museum; and                                     

       (3) any other issues relating to the development and construction of
   the museum.                                                             
     (d) Report.--Not later than three years after the date of the        
  enactment of this Act, the Secretary, in coordination with the city of  
  Arvada, shall submit to Congress a report on the costs associated with  
  the construction of the museum and any other issues relating to the     
  development and construction of the museum.                             
          SEC. 3182. ANNUAL REPORT ON FUNDING.                                    

     For each of fiscal years 2003 through 2007, at the time of submission
  of the budget of the President under section 1105(a) of title 31, United
  States Code, for such fiscal year, the Secretary and the Secretary of   
  the Interior shall jointly submit to Congress a report on the costs of  
  implementation of this subtitle. The report shall include--             
       (1) the costs incurred by each Secretary in implementing this       
   subtitle during the preceding fiscal year; and                          
       (2) the funds required by each Secretary to implement this subtitle 
   during the current and subsequent fiscal years.                         

           TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD                    


      Sec. 3201. Authorization.                                               


          SEC. 3201. AUTHORIZATION.                                               

     There are authorized to be appropriated for fiscal year 2002,        
  $18,500,000 for the operation of the Defense Nuclear Facilities Safety  
  Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
  et seq.).                                                               

           TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                                


      Sec. 3301. Definitions.                                                 

      Sec. 3302. Authorized uses of stockpile funds.                          

            Sec. 3303. Authority to dispose of certain materials in National  
      Defense Stockpile.                                                      
            Sec. 3304. Revision of limitations on required disposals of       
      certain materials in National Defense Stockpile.                        
            Sec. 3305. Acceleration of required disposal of cobalt in National
      Defense Stockpile.                                                      
      Sec. 3306. Restriction on disposal of manganese ferro.                  


          SEC. 3301. DEFINITIONS.                                                 

    In this title:                                                        

       (1) The term ``National Defense Stockpile'' means the stockpile     
   provided for in section 4 of the Strategic and Critical Materials Stock 
   Piling Act (50 U.S.C. 98c).                                             
       (2) The term ``National Defense Stockpile Transaction Fund'' means  
   the fund established under section 9(a) of the Strategic and Critical   
   Materials Stock Piling Act (50 U.S.C. 98h(a)).                          
       (3) The term ``Market Impact Committee'' means the Market Impact    
   Committee appointed under section 10(c) of the Strategic and Critical   
   Materials Stock Piling Act (50 U.S.C. 98h 1(c)).                        
          SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.                          

     (a) Obligation of Stockpile Funds.--During fiscal year 2002, the     
  National Defense Stockpile Manager may obligate up to $65,200,000 of the
  funds in the National Defense Stockpile Transaction Fund for the        
  authorized uses of such funds under section 9(b)(2) of the Strategic and
  Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)), including the
  disposal of hazardous materials that are environmentally sensitive.     
     (b) Additional Obligations.--The National Defense Stockpile Manager  
  may obligate amounts in excess of the amount specified in subsection (a)
  if the National Defense Stockpile Manager notifies Congress that        
  extraordinary or emergency conditions necessitate the additional        
  obligations. The National Defense Stockpile Manager may make the        
  additional obligations described in the notification after the end of   
  the 45-day period beginning on the date on which Congress receives the  
  notification.                                                           
     (c) Limitations.--The authorities provided by this section shall be  
  subject to such limitations as may be provided in appropriations Acts.  
                    SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN       
          NATIONAL DEFENSE STOCKPILE.                                             
     (a) Disposal Authorized.--Subject to the conditions specified in     
  subsection (b), the President may dispose of obsolete and excess        
  materials contained in the National Defense Stockpile. The materials    
  subject to disposal under this subsection and the quantity of each      
  material authorized to be disposed of by the President are set forth in 
  the following table:                                                    


                         Authorized Stockpile Disposals                        

 Material for disposal                     Quantity                   

Bauxite                                   40,000 short tons           
Chromium Metal                            3,512 short tons            
Iridium                                   25,140 troy ounces          
Jewel Bearings                            30,273,221 pieces           
Manganese Ferro HC                        209,074 short tons          
Palladium                                 11 troy ounces              
Quartz Crystal                            216,648 pounds              
Tantalum Metal Ingot                      120,228 pounds contained    
Tantalum Metal Powder                     36,020 pounds contained     
Thorium Nitrate                           600,000 pounds.             


     (b) Minimization of Disruption and Loss.--The President may not      
  dispose of materials under subsection (a) to the extent that the        
  disposal will result in--                                               
       (1) undue disruption of the usual markets of producers, processors, 
   and consumers of the materials proposed for disposal; or                
     (2) avoidable loss to the United States.                              

     (c) Relationship to Other Disposal Authority.--The disposal authority
  provided in subsection (a) is new disposal authority and is in addition 
  to, and shall not affect, any other disposal authority provided by law  
  regarding the materials specified in such subsection.                   
                    SEC. 3304. REVISION OF LIMITATIONS ON REQUIRED DISPOSALS OF   
          CERTAIN MATERIALS IN NATIONAL DEFENSE STOCKPILE.                        
     (a) Public Law 105 261.--Section 3303 of the Strom Thurmond National 
  Defense Authorization Act for Fiscal Year 1999 (Public Law 105 261; 50  
  U.S.C. 98d note) is amended--                                           
     (1) in subsection (a)--                                               

       (A), by striking ``the amount of--'' and inserting ``total amounts  
   not less than--'';                                                      
     (B) by striking ``and'' at the end of paragraph (3); and              

       (C) by striking paragraph (4) and inserting the following new       
   paragraphs:                                                             
     ``(4) $760,000,000 by the end of fiscal year 2005; and                

     ``(5) $770,000,000 by the end of fiscal year 2011.'';  and            

       (2) in subsection (b)(2), by striking ``receipts in the amounts     
   specified in subsection (a)'' and inserting ``receipts in the total     
   amount specified in subsection (a)(5)''.                                
     (b) Public Law 105 85.--Section 3305 of the National Defense         
  Authorization Act for Fiscal Year 1998 (Public Law 105 85; 50 U.S.C. 98d
  note) is amended--                                                      
       (1) in subsection (a), by striking ``amounts equal to--'' and       
   inserting ``total amounts not less than--''; and                        
       (2) in subsection (b), by striking paragraph (2) and inserting the  
   following new paragraph:                                                
     ``(2) The President may not dispose of cobalt under this section in  
  fiscal year 2006 in excess of the disposals necessary to result in      
  receipts during that fiscal year in the total amount specified in       
  subsection (a)(5).''.                                                   
     (c) Public Law 104 201.--Section 3303 of the National Defense        
  Authorization Act for Fiscal Year 1997 (Public Law 104 201; 50 U.S.C.   
  98d note) is amended--                                                  
       (1) in subsection (a), by striking ``amounts equal to--'' and       
   inserting ``total amounts not less than--''; and                        
       (2) in subsection (b), by striking paragraph (2) and inserting the  
   following new paragraph:                                                
     ``(2) The President may not dispose of materials under this section  
  during the 10-fiscal year period referred to in subsection (a)(2) in    
  excess of the disposals necessary to result in receipts during that     
  period in the total amount specified in such subsection.''.             
                    SEC. 3305. ACCELERATION OF REQUIRED DISPOSAL OF COBALT IN     
          NATIONAL DEFENSE STOCKPILE.                                             
     Section 3305(a) of the National Defense Authorization Act for Fiscal 
  Year 1998 (Public Law 105 85; 50 U.S.C. 98d note), as amended by section
  3304(b) of this Act, is amended--                                       
     (1) in paragraph (1), by striking ``2003'' and inserting ``2002'';    

     (2) in paragraph (2), by striking ``2004'' and inserting ``2003'';    

     (3) in paragraph (3), by striking ``2005'' and inserting ``2004'';    

     (4) in paragraph (4), by striking ``2006'' and inserting ``2005''; and

     (5) in paragraph (5), by striking ``2007'' and inserting ``2006''.    

          SEC. 3306. RESTRICTION ON DISPOSAL OF MANGANESE FERRO.                  

     (a) Temporary Quantity Restrictions.--During fiscal years 2002       
  through 2005, the disposal of manganese ferro in the National Defense   
  Stockpile may not exceed the following quantities:                      
       (1) During fiscal year 2002, 25,000 short tons of all grades of     
   manganese ferro.                                                        
       (2) During fiscal year 2003, 25,000 short tons of high carbon       
   manganese ferro of the highest grade.                                   
       (3) During each of the fiscal years 2004 and 2005, 50,000 short tons
   of high carbon manganese ferro of the highest grade.                    
     (b) Conforming Amendment.--Section 3304 of the National Defense      
  Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 Stat.   
  629) is repealed.                                                       

           TITLE XXXIV--NAVAL PETROLEUM RESERVES                                   


      Sec. 3401. Authorization of appropriations.                             


          SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.                             

     (a) Amount.--There are hereby authorized to be appropriated to the   
  Secretary of Energy $17,371,000 for fiscal year 2002 for the purpose of 
  carrying out activities under chapter 641 of title 10, United States    
  Code, relating to the naval petroleum reserves.                         
     (b) Period of Availability.--Funds appropriated pursuant to the      
  authorization of appropriations in subsection (a) shall remain available
  until expended.                                                         

           TITLE XXXV--MARITIME ADMINISTRATION                                     


      Sec. 3501. Authorization of appropriations for fiscal year 2002.        

            Sec. 3502. Define ``war risks'' to vessels to include             
      confiscation, expropriation, nationalization, and deprivation of the    
      vessels.                                                                
            Sec. 3503. Holding obligor's cash as collateral under title XI of 
      Merchant Marine Act, 1936.                                              

          SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2002.        

     Funds are hereby authorized to be appropriated for fiscal year 2002, 
  to be available without fiscal year limitation if so provided in        
  appropriations Acts, for the use of the Department of Transportation for
  the Maritime Administration as follows:                                 
       (1) For expenses necessary for operations and training activities,  
   $89,054,000.                                                            
       (2) For expenses under the loan guarantee program authorized by     
   title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.),
   $103,978,000, of which--                                                
       (A) $100,000,000 is for the cost (as defined in section 502(5) of   
   the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan       
   guarantees under the program; and                                       
       (B) $3,978,000 is for administrative expenses related to loan       
   guarantee commitments under the program.                                
       (3) For expenses to dispose of obsolete vessels in the National     
   Defense Reserve Fleet, $10,000,000.                                     
                    SEC. 3502. DEFINE ``WAR RISKS'' TO VESSELS TO INCLUDE         
          CONFISCATION, EXPROPRIATION, NATIONALIZATION, AND DEPRIVATION OF THE    
          VESSELS.                                                                
     Section 1201(c) of the Merchant Marine Act, 1936 (46 App. U.S.C.     
  1281(c)) is amended to read as follows:                                 
     ``(c) The term `war risks' includes to such extent as the Secretary  
  may determine--                                                         
       ``(1) all or any part of any loss that is excluded from marine      
   insurance coverage under a `free of capture or seizure' clause, or under
   analogous clauses; and                                                  
       ``(2) other losses from hostile acts, including confiscation,       
   expropriation, nationalization, or deprivation.''.                      
                    SEC. 3503. HOLDING OBLIGOR'S CASH AS COLLATERAL UNDER TITLE XI
          OF MERCHANT MARINE ACT, 1936.                                           
     Title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et    
  seq.) is amended by inserting after section 1108 the following:         
          ``SEC. 1109. DEPOSIT FUND.                                              

     ``(a) Establishment of Deposit Fund.--There is established in the    
  Treasury a deposit fund for purposes of this section. The Secretary may,
  in accordance with an agreement under subsection (b), deposit into and  
  hold in the deposit fund cash belonging to an obligor to serve as       
  collateral for a guarantee under this title made with respect to the    
  obligor.                                                                
    ``(b)  Agreement.--                                                   

       ``(1) In general.--The Secretary and an obligor shall enter into a  
   reserve fund or other collateral account agreement to govern the        
   deposit, withdrawal, retention, use, and reinvestment of cash of the    
   obligor held in the deposit fund established by subsection (a).         
       ``(2) Terms.--The agreement shall contain such terms and conditions 
   as are required under this section and such additional terms as are     
   considered by the Secretary to be necessary to protect fully the        
   interests of the United States.                                         
       ``(3) Security interest of united states.--The agreement shall      
   include terms that grant to the United States a security interest in all
   amounts deposited into the deposit fund.                                
     ``(c) Investment.--The Secretary may invest and reinvest any part of 
  the amounts in the deposit fund established by subsection (a) in        
  obligations of the United States with such maturities as ensure that    
  amounts in the deposit fund will be available as required for purposes  
  of agreements under subsection (b). Cash balances of the deposit fund in
  excess of current requirements shall be maintained in a form of         
  uninvested funds and the Secretary of the Treasury shall pay interest on
  these funds.                                                            
    ``(d)  Withdrawals.--                                                 

       ``(1) In general.--The cash deposited into the deposit fund         
   established by subsection (a) may not be withdrawn without the consent  
   of the Secretary.                                                       
       ``(2) Use of income.--Subject to paragraph (3), the Secretary may   
   pay any income earned on cash of an obligor deposited into the deposit  
   fund in accordance with the terms of the agreement with the obligor     
   under subsection (b).                                                   
       ``(3) Retention against default.--The Secretary may retain and      
   offset any or all of the cash of an obligor in the deposit fund, and any
   income realized thereon, as part of the Secretary's recovery against the
   obligor in case of a default by the obligor on an obligation.''.        

    And the House agree to the same.                                       


      From the Committee on Armed Services, for consideration of the Senate
   Bill and the House amendment, and modifications committed to conference:
    Bob Stump,                                                              

    Duncan Hunter,                                                          

    James V. Hansen,                                                        

    Curt Weldon,                                                            

    Jim Saxton,                                                             

    John M. McHugh,                                                         

    Terry Everett,                                                          

    Roscoe G. Bartlett,                                                     

    Howard ``Buck'' McKeon,                                                 

    J.C. Watts,  Jr.,                                                       

    Mac Thornberry,                                                         

    Saxby Chambliss,                                                        

    Ike Skelton,                                                            

    Solomon P. Ortiz,                                                       

    Lane Evans,                                                             

    Neil Abercrombie,                                                       

    Martin T. Meehan,                                                       

    Robert A. Underwood,                                                    

    Thomas Allen,                                                           

    Vic Snyder,                                                             

      From the Committee on Education and the Workforce, for consideration 
   of secs. 304, 305, 1123, 3151, and 3157 of the Senate bill, and secs.   
   341, 342, 509, and 584 of the House amendment, and modifications        
   committed to conference:                                                
    Michael N. Castle,                                                      

    Johnny Isakson,                                                         

    George Miller,                                                          

      From the Committee on Government Reform, for consideration of secs.  
   564, 622, 803, 813, 901, 1044, 1047, 1051, 1065, 1075, 1102, 1111 1113, 
   1124 1126, 2832, 3141, 3144, and 3153 of the Senate bill, and secs. 333,
   519, 588, 802, 803, 811 819, 1101, 1103 1108, 1110, and 3132 of the     
   House amendment, and modifications committed to conference:             
    Dan Burton,                                                             

    Dave Weldon,                                                            

    Henry A. Waxman,                                                        

      Provided that Mr. Tom Davis of Virginia is appointed in lieu of Mr.  
   Weldon of Florida for consideration of secs. 803 and 2832 of the Senate 
   bill, and secs. 333 and 803 of the House amendment, and modifications   
   committed to conference:                                                
    Tom Davis,                                                              

      Provided that Mr. Horn is appointed in lieu of Mr. Weldon of Florida 
   for consideration of secs. 811 819 of the House amendment, and          
   modifications committed to conference:                                  
    Stephen Horn,                                                           

      From the Committee on House Administration, for consideration of     
   secs. 572, 574 577, and 579 of the Senate bill, and sec. 552 of the     
   House amendment, and modifications committed to conference:             
    Robert W. Ney,                                                          

    John L. Mica,                                                           

      From the Committee on International Relations, for consideration of  
   secs. 331, 333, 1201 1205, and 1211 1218 of the Senate bill, and secs.  
   1011, 1201, 1202, 1205, and 1209, title XIII, and sec. 3133 of the House
   amendment, and modifications committed to conference:                   
    Henry Hyde,                                                             

    Ben Gilman,                                                             

    Tom Lantos,                                                             

      From the Committee on the Judiciary, for consideration of secs. 821, 
   1066, and 3151 of the Senate bill, and secs. 323 and 818 of the House   
   amendment, and modifications committed to conference:                   
    F. James Sensenbrenner,  Jr.,                                           

    Lamar Smith,                                                            

      From the Committee on Resources, for consideration of secs. 601, 663,
   2823, and 3171 3181 of the Senate bill, and secs. 601, 1042, 2841, 2845,
   2861 2863, and 2865 and title XXIX of the House amendment, and          
   modifications committed to conference:                                  
    Jim Gibbons,                                                            

    George Radanovich,                                                      

      Provided that Mr. Udall of Colorado is appointed in lieu of Mr.      
   Rahall for consideration of secs. 3171 3181 of the Senate bill, and     
   modifications committed to conference:                                  
    Mark Udall,                                                             

      From the Committee on Science, for consideration of secs. 1071 and   
   1124 of the Senate bill, and modifications committed to conference:     
    Sherwood Boehlert,                                                      

    Nick Smith,                                                             

    Ralph M. Hall,                                                          

      Provided that Mr. Ehlers is appointed in lieu of Mr. Smith of        
   Michigan for consideration of sec. 1124 of the Senate bill, and         
   modifications committed to conference:                                  
    Vernon J. Ehlers,                                                       

      From the Committee on Small Business, for consideration of secs. 822 
   824 and 1068 of the Senate bill, and modifications committed to         
   conference:                                                             
    Donald A. Manzulo,                                                      

    Larry Combest,                                                          

      From the Committee on Transportation and Infrastructure, for         
   consideration of secs. 563, 601, and 1076 of the Senate bill, and secs. 
   543, 544, 601, 1049, and 1053 of the House amendment, and modifications 
   committed to conference:                                                
    Don Young,                                                              

    Frank A. LoBiondo,                                                      

    Corrine Brown,                                                          

      Provided that Mr. Pascrell is appointed in lieu of Ms. Brown of      
   Florida for consideration of sec. 1049 of the House amendment, and      
   modifications committed to conference:                                  
    Bill Pascrell,  Jr.,                                                    

      From the Committee on Veterans' Affairs, for consideration of secs.  
   538, 539, 573, 651, 717, and 1064 of the Senate bill, and sec. 641 of   
   the House amendment, and modifications committed to conference:         
    Christopher H. Smith,                                                   

           (except sec. 641 of House amendment and secs. 539 and 651 of      
     Senate bill),                                                           
    Mike Bilirakis,                                                         

        Managers on the Part of the House.                                      


    Carl Levin,                                                             

    Ted Kennedy,                                                            

    Joseph Lieberman,                                                       

    Max Cleland,                                                            

    Mary Landrieu,                                                          

    Jack Reed,                                                              

    Daniel K. Akaka,                                                        

    Bill Nelson,                                                            

    Ben Nelson,                                                             

    Jean Carnahan,                                                          

    Mark Dayton,                                                            

    Jeff Bingaman,                                                          

    John Warner,                                                            

    Strom Thurmond,                                                         

    Bob Smith,                                                              

    Jim Inhofe,                                                             

    Rick Santorum,                                                          

    Pat Roberts,                                                            

    Wayne Allard,                                                           

    Tim Hutchinson,                                                         

    Jeff Sessions,                                                          

    Susan Collins,                                                          

    Jim Bunning,                                                            

        Managers on the Part of the Senate.                                     


                 JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE       

       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 House to the bill (S. 1438), to authorize appropriations for     
   fiscal year 2002 for military activities of the Department of Defense,  
   for military construction, and for defense activities of the Department 
   of Energy, to prescribe personnel strengths for such fiscal year for the
   Armed Forces, and for other purposes, submit the following joint        
   statement to the House and the Senate in explanation of the effect of   
   the action agreed upon by the managers and recommended in the           
   accompanying conference report:                                         
       The House amendment struck all of the Senate bill after the enacting
   clause and inserted a substitute text.                                  
       The Senate recedes from its disagreement to the amendment of the    
   House with an amendment that is a substitute for the Senate bill and the
   House amendment. The differences between the Senate bill, the House     
   amendment, and the substitute agreed to in conference are noted below,  
   except for clerical corrections, conforming changes made necessary by   
   agreements reached by the conferees, and minor drafting and clerical    
   changes.                                                                
                           SUMMARY STATEMENT OF CONFERENCE ACTION                 

       The conferees recommend authorization of appropriations for fiscal  
   year 2002 for the Department of Defense for procurement; research and   
   development; test and evaluation; operation and maintenance; working    
   capital funds; military construction and family housing; and for weapons
   and environmental restoration programs of the Department of Energy, that
   have a budget authority implication of $343.3 billion for the national  
   defense function.                                                       
                              SUMMARY TABLE OF AUTHORIZATIONS                     

       The defense authorization act provides authorizations for           
   appropriations but does not generally provide budget authority. Budget  
   authority is provided in appropriations acts.                           
       In order to relate the conference recommendations to the Budget     
   Resolution, matters in addition to the dollar authorizations contained  
   in this bill must be taken into account. A number of programs in the    
   national defense function are authorized permanently or, in certain     
   instances, authorized in other annual legislation.                      
       The following table summarizes authorizations included in the bill  
   for fiscal year 2002 and, in addition, summarizes the implications of   
   the conference action for the budget authority totals for national      
   defense (budget function 050).                                          

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                              CONGRESSIONAL DEFENSE COMMITTEES                    

       The term ``congressional defense committees'' is often used in this 
   statement of managers. It means the Defense Authorization and           
   Appropriations Committees of the Senate and the House of                
   Representatives.                                                        
                                     COMMITTEE REPORTS                            

       The Senate bill contained a provision (sec. 4) regarding the        
   applicability of the report of the Committee on Armed Services of the   
   Senate to accompany S. 1416 to this bill.                               
    The House amendment contained no similar provision.                    

       The Senate recedes. The conferees agree that the report of the      
   Committee on Armed Services of the Senate to accompany S. 1416 (Senate  
   Report 107 62) shall apply to this Act to the same extent, and in the   
   same manner, as the report of the Committee on Armed Services of the    
   House of Representatives to accompany H.R. 2586 (House Report 107 194). 
                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            

                                    TITLE I--PROCUREMENT                          

           Procurement overview                                                    

       The budget request for fiscal year 2002 included an authorization of
   $61,813.6 million for Procurement for the Department of Defense.        
    The Senate bill would authorize $62,532.7 million.                     

    The House amendment would authorize $62,312.8 million.                 

       The conferees recommended an authorization of $62,477.7 million.    
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Management reform initiatives                                           

       The conferees agree to reduce procurement accounts by $90.0 million 
   to reflect savings from management reform initiatives, as discussed in  
   Title VIII.                                                             
           Aircraft Procurement, Army--Overview                                    

       The budget request for fiscal year 2002 included an authorization of
   $1,925.5 million for Aircraft Procurement, Army in the Department of    
   Defense.                                                                
    The Senate bill would authorize $2,123.4 million.                      

    The House amendment would authorize $1,987.5 million.                  

       The conferees recommended an authorization of $2,075.4 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Missile Procurement, Army--Overview                                     

       The budget request for fiscal year 2002 included an authorization of
   $1,859.6 million for Missile Procurement, Army in the Department of     
   Defense.                                                                
    The Senate bill would authorize $1,807.4 million.                      

    The House amendment would authorize $1,097.3 million.                  

       The conferees recommended an authorization of $1,087.0 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Procurement of Weapons and Tracked Combat Vehicles, Army--Overview      

       The budget request for fiscal year 2002 included an authorization of
   $2,276.7 million for Procurement of Weapons and Tracked Combat Vehicles,
   Army in the Department of Defense.                                      
    The Senate bill would authorize $2,276.7 million.                      

    The House amendment would authorize $2,367.0 million.                  

       The conferees recommended an authorization of $2,348.1 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Procurement of Ammunition, Army--Overview                               

       The budget request for fiscal year 2002 included an authorization of
   $1,193.4 million for Procurement of Ammunition, Army in the Department  
   of Defense.                                                             
    The Senate bill would authorize $1,187.6 million.                      

    The House amendment would authorize $1,208.6 million.                  

       The conferees recommended an authorization of $1,187.2 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Other Procurement, Army--Overview                                       

       The budget request for fiscal year 2002 included an authorization of
   $3,961.7 million for Other Procurement, Army in the Department of       
   Defense.                                                                
    The Senate bill would authorize $4,024.5 million.                      

    The House amendment would authorize $4,144.0 million.                  

       The conferees recommended an authorization of $4,044.1 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Chemical Agents and Munitions Destruction, Army--Overview               

       The budget request for fiscal year 2002 included an authorization of
   $1,153.6 million for Chemical Agents & Munitions Destruction, Army in   
   the Department of Defense.                                              
       The Senate bill would authorize $1,153.6 million for Chemical Agents
   & Munitions Destruction, Defense.                                       
       The House amendment would authorize $1,078.6 million for Chemical   
   Agents & Munitions Destruction, Defense.                                
       The conferees recommended an authorization of $1,153.6 million for  
   Chemical Agents & Munitions Destruction, Defense. Unless noted          
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              

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           Aircraft Procurement, Navy--Overview                                    

       The budget request for fiscal year 2002 included an authorization of
   $8,252.5 million for Aircraft Procurement, Navy in the Department of    
   Defense.                                                                
    The Senate bill would authorize $8,169.0 million.                      

    The House amendment would authorize $8,337.2 million.                  

       The conferees recommended an authorization of $8,323.1 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Weapons Procurement, Navy--Overview                                     

       The budget request for fiscal year 2002 included an authorization of
   $1,433.5 million for Weapons Procurement, Navy in the Department of     
   Defense.                                                                
    The Senate bill would authorize $1,503.5 million.                      

    The House amendment would authorize $1,476.7 million.                  

       The conferees recommended an authorization of $1,484.3 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Procurement of Ammunition, Navy and Marine Corps--Overview              

       The budget request for fiscal year 2002 included an authorization of
   $457.1 million for Procurement of Ammunition, Navy and Marine Corps in  
   the Department of Defense.                                              
    The Senate bill would authorize $476.1 million.                        

    The House amendment would authorize $463.6 million.                    

       The conferees recommended an authorization of $466.9 million. Unless
   noted explicitly in the statement of managers, all changes are made     
   without prejudice.                                                      

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           Shipbuilding and Conversion, Navy--Overview                             

       The budget request for fiscal year 2002 included an authorization of
   $9,344.1 million for Shipbuilding and Conversion, Navy in the Department
   of Defense.                                                             
    The Senate bill would authorize $9,522.1 million.                      

    The House amendment would authorize $9,378.2 million.                  

       The conferees recommended an authorization of $9,371.0 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Other Procurement, Navy--Overview                                       

       The budget request for fiscal year 2002 included an authorization of
   $4,097.6 million for Other Procurement, Navy in the Department of       
   Defense.                                                                
    The Senate bill would authorize $4,293.5 million.                      

    The House amendment would authorize $4,157.3 million.                  

       The conferees recommended an authorization of $4,282.5 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Procurement, Marine Corps--Overview                                     

       The budget request for fiscal year 2002 included an authorization of
   $981.7 million for Procurement, Marine Corps in the Department of       
   Defense.                                                                
    The Senate bill would authorize $981.7 million.                        

    The House amendment would authorize $1,025.6 million.                  

       The conferees recommended an authorization of $1,014.6 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Aircraft Procurement, Air Force--Overview                               

       The budget request for fiscal year 2002 included an authorization of
   $10,744.5 million for Aircraft Procurement, Air Force in the Department 
   of Defense.                                                             
    The Senate bill would authorize $10,893.0 million.                     

    The House amendment would authorize $10,705.7 million.                 

       The conferees recommended an authorization of $10,789.2 million.    
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           High altitude endurance unmanned aerial vehicle                         

       The budget request included $33.5 million for advanced procurement  
   of additional Global Hawk high altitude endurance unmanned aerial       
   vehicles (HAE UAVs).                                                    
       The Senate bill and the House amendment would authorize the budget  
   request.                                                                
       The House Intelligence Authorization for fiscal year 2002 (H.R.     
   2883) would not authorize any of the requested funds.                   
    The conferees agree to authorize the budget request.                   

       The conferees are aware that much has been evolving in the Global   
   Hawk HAE UAV program in recent months. At the time of the budget        
   request, the plan for these funds was to procure HAE UAVs in the less   
   capable Block 5 configuration, which contributed to the House           
   recommendation. The accelerated program that is now underway would make 
   these funds available for advanced procurement of the Block 10          
   configuration, which will provide the electrical power, cooling, and    
   interfaces for sensor packages, which should meet the evolving Global   
   Hawk requirement. These changes have addressed some of the concerns     
   expressed in the House report (H. Rept. 107 219).                       
       Another concern shared by the conferees is the fact that the        
   requirements for this system are evolving at the very time that the     
   program is being accelerated. The conferees would expect requirements   
   documentation with completed mission area annexes to be the basis for   
   future program decisions. The conferees want to ensure that existing    
   intelligence, surveillance, and reconnaissance (ISR) assets, such as the
   U 2, continue to be operated and upgraded as necessary until such time  
   that any new systems, like the Global Hawk HAE UAV and its sensors, are 
   fully tested and integrated with the required ground architecture and   
   satisfy the operational mission requirements.                           
       Finally, the conferees expect, before these advanced procurement    
   funds are released, that the milestone decision authority approve this  
   production in an acquisition decision memorandum that approves a        
   coordinated and integrated acquisition strategy, taking into account the
   requirement, platform and sensor integration, ground architecture plan, 
   and test plan for this spiral of the program.                           
           Missile Procurement, Air Force--Overview                                

       The budget request for fiscal year 2002 included an authorization of
   $3,233.5 million for Missile Procurement, Air Force in the Department of
   Defense.                                                                
    The Senate bill would authorize $3,286.1 million.                      

    The House amendment would authorize $3,226.3 million.                  

       The conferees recommended an authorization of $3,222.6 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Procurement of Ammunition, Air Force--Overview                          

       The budget request for fiscal year 2002 included an authorization of
   $865.3 million for Procurement of Ammunition, Air Force in the          
   Department of Defense.                                                  
    The Senate bill would authorize $885.3 million.                        

    The House amendment would authorize $871.3 million.                    

       The conferees recommended an authorization of $881.8 million. Unless
   noted explicitly in the statement of managers, all changes are made     
   without prejudice.                                                      

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           Other Procurement, Air Force--Overview                                  

       The budget request for fiscal year 2002 included an authorization of
   $8,159.5 million for Other Procurement, Air Force in the Department of  
   Defense.                                                                
    The Senate bill would authorize $8,081.7 million.                      

    The House amendment would authorize $8,250.8 million.                  

       The conferees recommended an authorization of $8,196.0 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Procurement, Defense-Wide--Overview                                     

       The budget request for fiscal year 2002 included an authorization of
   $1,603.9 million for Procurement, Defense-Wide in the Department of     
   Defense.                                                                
    The Senate bill would authorize $1,596.7 million.                      

    The House amendment would authorize $2,267.3 million.                  

       The conferees recommended an authorization of $2,279.5 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Chemical Agents and Munitions Destruction, Defense--Overview            

       The budget request for fiscal year 2002 included an authorization of
   $1,153.6 million for Chemical Agents & Munitions Destruction, Army in   
   the Department of Defense.                                              
    The Senate bill would authorize $1,153.6 million.                      

    The House amendment would authorize $1,078.6 million.                  

       The conferees recommended an authorization of $1,153.6 million for  
   Chemical Agents & Munitions Destruction, Defense. Unless noted          
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              

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                                 ITEMS OF SPECIAL INTEREST                        

           Acquisition programs at the National Reconnaissance Office              

       The Senate report (S. Rept. 107 62) raised several concerns about   
   acquisition programs at the National Imagery and Mapping Agency (NIMA). 
   The report expressed concern that the requirements trade-off process for
   the future imagery architecture (FIA) may not have provided sufficient  
   attention to all aspects of an end-to-end capability, focusing too      
   narrowly on the collection aspects of the problem.                      
       The Senate report insisted that the requirements trade-off process  
   consider the complete picture, not just the more narrow question of the 
   collection instrument. The report further directed the Secretary of     
   Defense and the Director of Central Intelligence to ensure that the     
   acquisition policies of the Office of the Secretary of Defense, the     
   Community Management Staff, and the National Reconnaissance Office (NRO)
   be changed to prevent recurrences of these problems at the NIMA. The    
   report stated that these policies should prevent NRO satellite programs 
   from entering acquisition until the Joint Requirements Oversight Council
   (JROC) and Mission Requirements Board (MRB) have approved a set of      
   requirements for end-to-end system performance (i.e., ground and space  
   segments together), and cost and schedule estimates to meet those       
   requirements have been prepared by the NRO and its mission partners or  
   other appropriate organizations.                                        
       The report accompanying the House amendment (H. Rept. 107 194)      
   expressed no similar sentiment.                                         
       The conferees agree that the requirements trade-off process should  
   consider the entire end-to-end system, not just the collection          
   instruments. NRO satellite programs should include an assessment of the 
   costs and impacts to the mission partners before being approved to enter
   acquisition. The JROC and MRB should also have an approved set of       
   requirements for end-to-end system performance, i.e., ground,           
   communications and space segments together. Complete cost and schedule  
   estimates to meet these requirements should be presented by the NRO and 
   its mission partners or other appropriate organizations and presented to
   the Director of Central Intelligence, the Secretary of Defense, and     
   Congress.                                                               
       However, the conferees do not believe that this should be an        
   absolute prohibition placed on all NRO systems. For example, there are  
   technology demonstration activities and other non-major systems         
   procurement where spending resources on fielding an end-to-end          
   capability is neither required nor appropriate.                         
       The conferees believe that there has been progress in this area, but
   that the Secretary of Defense and the DCI should further ensure major   
   new acquisition programs that support national-level requirements and   
   the Department of Defense customers have completed the appropriate level
   of documentation in a formal requirements process, and the cost and     
   schedule estimates to meet these end-to-end requirements have been      
   prepared, before such programs enter into acquisition.                  
           Acquisition programs at the National Security Agency                    

       The Senate report (S. Rept. 107 62) raised several concerns about   
   acquisition programs at the National Security Agency (NSA). The report  
   noted that the Director of the NSA has made progress in transforming the
   NSA. The report, however, expressed concern that more progress needs to 
   be made in the NSA processes if the NSA is to achieve the capabilities  
   that the nation will require.                                           
       The report identified a number of specific actions that the NSA     
   would have to complete before December 1, 2001. Otherwise, the report   
   would direct that the NSA modernization effort be designated a major    
   defense acquisition program and milestone decision authority reside with
   the Under Secretary of Defense (Acquisition, Technology & Logistics).   
       In light of the problems identified in the Senate report, the report
   would direct that the Office of the Secretary of Defense (OSD) and the  
   Community Management Staff (CMS) conduct a ``baselining'' of the NSA    
   that parallels the successful and productive effort performed at the    
   National Imagery and Mapping Agency in fiscal year 2001. There were a   
   number of specific actions identified in the Senate report to help      
   improve the situation at the NSA, including the following:              
       (1) The NSA must create a rational requirements process and produce 
   a prioritized requirements baseline that is structured to support a     
   spiral-development approach to major elements of the modernization      
   program;                                                                
       (2) The NSA must produce a rationalized, integrated schedule and    
   requirements allocation for all the major elements of its modernization 
   effort;                                                                 
       (3) The NSA must develop plans for turning over most or all of the  
   systems integration job to a single industry team;                      
       (4) The NSA must create a detailed plan to subordinate the interim  
   Trailblazer program under the Objective Trailblazer program upon        
   contract award;                                                         
       (5) The NSA must produce a detailed audit of all the hundreds of    
   ongoing development activities and programs within the Agency;          
       (6) The NSA must produce a detailed plan and schedule to establish a
   rigorous ``make-versus-buy'' decision process for all the NSA           
   acquisition activities; and                                             
       (7) The NSA must produce a plan acceptable to the Department of     
   Defense and the Director of Central Intelligence for enterprise-wide    
   systems engineering.                                                    
    The House report (H. Rept. 107 194) expressed no similar sentiments.   

       The conferees believe that the senior acquisition executive (SAE)   
   and the NSA have made significant improvements in the acquisition       
   process. For example, the SAE has initiated an orderly review process   
   and has increased the percentage of competitive acquisitions.           
       However, much needed progress still remains to be achieved. The SAE 
   is operating within a requirements and architecture vacuum, is not      
   responsible for technology selection, has no control over correcting    
   deficiencies in systems or software engineering disciplines, and appears
   to lack the authority to cancel or redirect troubled programs. The chief
   financial manager (CFM) is understaffed and has struggled to gain       
   internal support to implement a cost accounting system that would enable
   the NSA to conduct an accurate financial baselining of all programs.    
       To its credit, the NSA has acknowledged that its major modernization
   programs were proceeding in isolation, and over the past several months,
   there has been an attempt to address the integration problem within the 
   Signals Intelligence Directorate. However, such revelations must be     
   accompanied by concrete plans for improvement.                          
       The conferees agree with the need for the OSD and the CMS to enforce
   the baselining activities identified in the Senate report. In addition  
   to the specific tasks identified above, the baselining effort should    
   oversee and verify effective implementation of the CFM's plans for cost 
   centers that will comprise the fiscal year 2003 budget request. The     
   conferees further encourage the NSA to seek the advice of independent,  
   outside experts to assist in guiding its selection of technologies under
   this baselining effort.                                                 
       The conferees agree that, unless the OSD, the CMS and the NSA       
   complete the baselining by December 1, 2002, the Congress will direct   
   that the NSA's modernization effort be designated a major defense       
   acquisition program, with milestone decision authority likely residing  
   with the Under Secretary of Defense (Acquisition, Technology, and       
   Logistics) until initial operational capability is achieved.            
           Airborne signals intelligence recapitalization and modernization        

       The conferees remain interested in sustaining and improving airborne
   reconnaissance platforms, sensors and payloads, and the architecture    
   under which they operate. These systems provide theater and operational 
   commanders with the bulk of real-time tactical imagery and signals      
   intelligence (SIGINT).                                                  
       The current fleet of reconnaissance platforms, consisting of the RC 
   135, the EP 3, and the U 2, is aging. In addition to the platforms under
   development, including the Aerial Common Sensor and the Global Hawk High
   Altitude Endurance Unmanned Aerial Vehicle (HAE UAV), the conferees are 
   aware of Army, Navy and Air Force initiatives to consider the           
   replacement of their older reconnaissance platforms.                    
       The conferees are also aware of the current status of collection    
   systems used by the reconnaissance platforms, and are particularly      
   concerned with SIGINT systems. The recent cancellation of the low-band  
   subsystem (LBSS) portion of the Joint SIGINT Avionics Family (JSAF)     
   program has necessitated a complete review of the way ahead for this    
   vital capability. Although the development of the JSAF high-band        
   subsystem has been more successful, without LBSS the SIGINT requirement 
   will not have been fully met. Prior to establishment of the JSAF        
   program, the individual services had disparate upgrade programs.        
   Although technology sharing occurred, it was sporadic and uncoordinated.
       The Department of Defense's approach must be coordinated and based  
   on architectural standards. The conferees are pleased with the National 
   Security Agency efforts to develop the Joint Airborne SIGINT            
   Architecture and the associated maritime SIGINT architecture. The       
   conferees believe the Assistant Secretary of Defense for Command,       
   Control, Communications, and Intelligence should develop an             
   architectural plan to provide standards-based policy direction to the   
   services, whose platform program offices can develop systems and, to the
   maximum extent possible, share developments. The conferees expect the   
   plan to include: (1) a robust spiral development approach; and (2)      
   adequate emphasis on fielding and modernizing the appropriate ground    
   support infrastructure.                                                 
       The conferees believe the time is right to begin the formal         
   discussion of the recapitalization and modernization of the airborne    
   signals intelligence platforms, systems, and architecture. The conferees
   are specifically not endorsing any option for recapitalization. In fact,
   with several options under consideration, the conferees believe the     
   Department of Defense should conduct an analysis of alternatives to     
   determine the most cost-effective approach to this recapitalization and 
   modernization. The conferees believe, in weighing the various options,  
   consideration should be given to: (1) collaborative, network-centric    
   operations that allow the various platforms to coordinate their various 
   collection and analytical functions; (2) the ability to control unmanned
   aerial vehicles and their payloads; (3) a reach-back capability allowing
   analysts not on the platform to operate systems; (4) software           
   re-programmable systems to allow for rapid threat updates; and (5) the  
   ability to share in system upgrades.                                    
           Arleigh Burke-class destroyer procurement                               

       The conferees agree with the Navy assessment that the destroyer     
   industrial base is at risk unless three destroyers are built each year  
   or unless the destroyer shipbuilders attain significant other work      
   beyond their historic level of the past 10 years. Therefore, the        
   conferees agree that the Secretary of the Navy should include           
   procurement of three Arleigh Burke -class destroyers in the fiscal year 
   2003 budget request to attain an economic rate of production and        
   consider options for maintaining and transitioning the industrial base, 
   including second tier suppliers, to future destroyer production.        
           Attack submarine force structure study                                  

       Section 123 of the Floyd D. Spence National Defense Authorization   
   Act for Fiscal Year 2001 required the Secretary of Defense to provide a 
   report on the Navy's fleet of attack submarines. That provision required
   that the Secretary submit this report with the fiscal year 2002 budget  
   request.                                                                
       Although the amended budget request was submitted to Congress on    
   June 27, 2001, the Secretary has not yet submitted the required report. 
   The conferees urge the Secretary of Defense to submit the required      
   report, which is intended to provide the Congress with the information  
   required to review the plans for recapitalizing the attack submarine    
   force structure.                                                        
                               LEGISLATIVE PROVISIONS ADOPTED                     

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

           Authorization of appropriations (secs. 101 107)                         

       The Senate bill contained provisions (secs. 101 107) that would     
   authorize the recommended fiscal year 2002 funding levels for           
   procurement for the Army, Navy, Marine Corps, Air Force, Defense-Wide   
   activities, Defense Inspector General, Chemical Demilitarization        
   Program, and Defense Health Program.                                    
    The House amendment contained similar provisions.                      

    The conference agreement includes these provisions.                    

           Chemical agents and munitions destruction, Defense (sec. 106)           

       The Senate bill contained a provision (sec. 106) that would         
   authorize the requested amount of $1.2 billion for the Office of the    
   Secretary of Defense for destruction of chemical agents, weapons and    
   materiel.                                                               
       The House amendment contained a similar provision (sec. 106) that   
   would authorize $1.1 billion for chemical demilitarization.             
       The House recedes with an amendment that would authorize the        
   requested $1.2 billion for the Department of Defense for Chemical Agents
   and Munitions Destruction, Defense.                                     
       The conferees are disappointed that the Department of Defense       
   requested funds for chemical demilitarization for fiscal year 2002 in an
   Army account, contrary to the requirements of law. Section 1521(f) of   
   title 50, United States Code, requires that funds for this program shall
   not be included in the budget accounts for any military department. The 
   conferees expect the Department of Defense to comply with the law in    
   future budget requests for the chemical demilitarization program.       
       The conferees note that the Department of Defense has initiated a   
   high-level review of the entire chemical demilitarization program and   
   all its component elements. The conferees direct the Department to      
   provide the congressional defense committees with the results and       
   recommendations of this review, including an updated assessment required
   by section 141(a) of the National Defense Authorization Act for Fiscal  
   Year 2000, as directed in the House report accompanying H.R. 2586 (H.   
   Rept. 107 194), by March 1, 2002.                                       
                                  SUBTITLE B--ARMY PROGRAMS                       

           Repeal of limitations on bunker defeat munitions program (sec. 111)     

       The House amendment contained a provision (sec. 112) to repeal      
   section 115 of the National Defense Authorization Act for Fiscal Year   
   1995, which limits the acquisition of bunker defeat munitions.          
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Extension of pilot program on sales of manufactured articles 
           and services of certain Army industrial facilities without regard to    
           availability from domestic sources (sec. 112)                           
       The Senate bill contained a provision (sec. 141) that would extend  
   the pilot program for sales of manufactured articles and services from  
   up to three Army industrial facilities enacted by section 141 of the    
   National Defense Authorization Act for Fiscal Year 1998 through fiscal  
   year 2002.                                                              
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would extend the authority 
   for the pilot program through fiscal year 2002 but would limit the      
   program to one facility. The conferees direct that the facility that has
   demonstrated the most success with the pilot program to date be selected
   as the facility to continue the pilot program.                          
                      Limitations on acquisition of interim armored vehicles and   
           deployment of interim brigade combat teams (sec. 113)                   
       The conferees agree to a provision that would amend section 113 of  
   the Floyd D. Spence National Defense Authorization Act for Fiscal Year  
   2001, which required the Secretary of the Army to submit a report on the
   process for developing the Objective Force in the transformation of the 
   Army. The provision also required the Secretary of the Army to conduct a
   comparative cost and operational effectiveness evaluation of the interim
   armored vehicles (IAV) selected for the Interim Brigade Combat Team     
   (IBCT) with the infantry troop-carrying medium armored vehicles         
   currently in the Army inventory.                                        
       The provision further prohibited the obligation of funds for a third
   IBCT until: the comparative evaluation is carried out; the Secretary of 
   Defense submits the results of the evaluation to the congressional      
   defense committees; and the Secretary certifies that (1) he approves of 
   the obligation of funds for that purpose and (2) the force structure    
   resulting from the acquisition and subsequent operational capability of 
   Interim Brigade Combat Teams will not diminish the combat power of the  
   Army.                                                                   
       The Secretary of the Army has requested relief from the requirement 
   for the comparative evaluation directed in this provision. The Secretary
   stated that the comparative evaluation would replicate the comparison   
   accomplished during source selection, and duplicate more comprehensive  
   testing already required by law.                                        
       Last year, the conferees concluded that the costs associated with   
   the comparative evaluation were worth incurring for a better            
   understanding of whether the differences in operational effectiveness,  
   if any, justify the increased cost of new IAV procurement compared to   
   using current inventory equipment.                                      
       While the conferees continue to believe that there is merit to the  
   comparative evaluation, the conferees recommend a modification to       
   section 113 that would grant the Secretary of Defense the authority to  
   waive those portions of section 113 pertaining to the comparative       
   evaluation, subject to certain certifications.                          
       The conferees direct the Secretary of the Army to conduct an        
   operational evaluation of the initial IBCT, to include deployment to the
   evaluation site and the execution of combat missions across the full    
   spectrum of potential threats and operational scenarios. The plan for   
   the operational evaluation must be approved by the Director of          
   Operational Test and Evaluation, Department of Defense, prior to        
   execution.                                                              
       The Army is prohibited from acquiring interim armored vehicles for  
   other than the first three brigades, and from deploying any IBCT, until 
   30 days after a report on the operational evaluation is forwarded to the
   Congress and the Secretary of Defense certifies to the Congress that the
   results of the evaluation indicate that the IBCT design is operationally
   effective and suitable.                                                 
       The Secretary of Defense can waive the deployment prohibition if he 
   determines it to be in the national security interests of the United    
   States, and reports to Congress the reasons for the waiver.             
       The conferees expect the Army to develop and resource an            
   experimentation program that will inform the design of the Objective    
   Force, including a formal linkage of the Interim Brigade Combat Teams to
   that experimentation.                                                   
                                  SUBTITLE C--NAVY PROGRAMS                       

           Virginia class submarine program (sec. 121)                             

       The Senate bill contained a provision (sec. 121) that would modify  
   section 123(b)(1) of the Floyd D. Spence National Defense Authorization 
   Act for Fiscal Year 2001 by authorizing the Secretary of the Navy to    
   enter into contracts for the procurement of material in economic order  
   quantities, when cost savings are achievable, for up to seven           
   Virginia-class submarines. This authority would apply to boats to be    
   procured during the period from fiscal years 2003 through 2007.         
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Multiyear procurement authority for F/A 18E/F aircraft       
           engines (sec. 122)                                                      
       The Senate bill contained a provision (sec. 122) that would         
   authorize the Secretary of the Navy to enter a multiyear contract for   
   procurement of F/A 18E/F aircraft engines in accordance with section    
   2306b of title 10, United States Code.                                  
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would require the Secretary
   to certify that each of the conditions listed in subsection (a) of      
   section 2306b of title 10, United States Code, has been satisfied. The  
   provision would also require that this multiyear procurement contract   
   could not be entered into until 30 days after the aforementioned        
   certification has been transmitted.                                     
       The Navy procures engines for F/A 18E/F aircraft directly from the  
   engine contractor and provides the engines to the prime airframe        
   contractor as government-furnished equipment. The Navy is currently     
   procuring the F/A 18E/F airframe under a multiyear contract that covers 
   the fiscal years from 2000 to 2004. The conferees understand that this  
   provision would authorize a multiyear procurement contract that may not 
   cover exactly the same time period as that for the airframe itself. The 
   conferees believe that the Secretary of the Navy should, if he chooses  
   to enter into a multiyear contract for these engines, consider          
   synchronizing the time periods of the contracts for these two items.    
           V 22 Osprey aircraft program (sec. 123)                                 

       The Senate bill contained a provision (sec. 123) that would keep the
   production rate of V 22 aircraft at the minimum sustaining rate, defined
   as the number for which funds are authorized to be appropriated in this 
   Act, until the Secretary of Defense certifies to Congress that          
   operational testing has successfully demonstrated certain effectiveness 
   and suitability aspects not yet demonstrated.                           
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

       The conferees note that this provision is consistent with the       
   recommendations of the report of the Panel to Review the V 22 Program,  
   which was released in May 2001.                                         
                      Report on status of V 22 Osprey aircraft before resumption of
           flight testing (sec. 124)                                               
       The Senate bill contained two provisions relating to reports that   
   would be required before the V 22 could return to flight status.        
       One provision (sec. 124) would require the Secretary of Defense to  
   notify Congress of the waiver, if any, of any item capability or other  
   requirement specified in the V 22 Joint Operational Requirements        
   Document, along with justification for any such waiver. The provision   
   would require that any such notice be given at least 30 days before the 
   V 22 resumes flight operations.                                         
       The second provision (sec. 215) would require the Under Secretary of
   Defense (Acquisition, Technology, and Logistics) to submit a report, 30 
   days before V 22 resumption of flight, that would include: (1) a        
   description of any hydraulics and flight control software deficiencies  
   and corrective actions; (2) actions to implement the recommendations of 
   the Panel to Review the V 22 Program; and (3) an assessment of the      
   recommendations of the National Aeronautics and Space Administration in 
   its report on tiltrotor aeromechanics.                                  
    The House amendment contained no similar provisions.                   

       The House recedes with an amendment that would combine the reporting
   requirements into one provision, and would require the Secretary of     
   Defense to submit the report no later than 30 days prior to V 22        
   resumption of flight.                                                   
                               SUBTITLE D--AIR FORCE PROGRAMS                     

           Multiyear procurement authority for C 17 aircraft (sec. 131)            

       The Senate bill contained a provision (sec. 131) that would         
   authorize a multiyear procurement of up to 60 additional C 17 aircraft  
   in accordance with section 2306b of title 10, United States Code.       
       The House amendment contained a similar provision (sec. 121) that   
   would authorize a multiyear procurement of up to 60 additional C 17     
   aircraft after the Secretary of Defense certifies that such a           
   procurement is in the interest of the Department of Defense.            
       The conferees agree to a provision that would authorize the         
   Secretary of the Air Force to enter into a multiyear contract for       
   procurement of up to 60 additional C 17 aircraft in accordance with     
   section 2306b of title 10, United States Code, except that the contract 
   could cover a period of up to six program years.                        
       The provision would require that the Secretary certify that each of 
   the conditions listed in subsection (a) of section 2306b of title 10,   
   United States Code, has been satisfied. The provision would also require
   that this multiyear procurement contract could not be entered into until
   30 days after the aforementioned certification has been transmitted.    
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Additional amount for Shipbuilding and Conversion, Navy                 

       The House amendment contained a provision (sec. 108) that would     
   authorize an increase of $57.1 million for a ship overhaul.             
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                      Destruction of existing stockpile of lethal chemical agents  
           and munitions                                                           
       The House amendment contained a provision (sec. 141) that would     
   amend section 152 of the National Defense Authorization Act for Fiscal  
   Year 1996 (Public Law 104 106; 50 U.S.C. 1521 note) to add to the       
   requirements that must be satisfied before the Secretary of Defense may 
   initiate destruction of the chemical munition stockpile stored at a     
   chemical stockpile destruction site. The provision would require the    
   Under Secretary of Defense (Acquisition, Technology, and Logistics) to  
   convene independent oversight boards that would make a recommendation to
   the Under Secretary on whether the destruction of the chemical munitions
   stockpile should be initiated at a particular chemical stockpile        
   destruction site. Finally, the provision would require that the Under   
   Secretary, after considering a negative recommendation of a board, may  
   not recommend commencing destruction of the chemical munitions stockpile
   at the site until 90 days after the Under Secretary notifies the        
   Congress of his intent to recommend initiation of chemical munitions    
   destruction operations.                                                 
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

           Extension of multiyear contract for Family of Medium Tactical Vehicles  

       The House amendment contained a provision (sec. 111) that would give
   the Secretary of the Army discretionary authority to extend the existing
   multiyear procurement contract for the Family of Medium Tactical        
   Vehicles for one additional year.                                       
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

           Procurement of additional M291 skin decontamination kits                

       The Senate bill contained a provision (sec. 142) that would         
   authorize an increase of $2.4 million in the Defense-Wide procurement   
   account for procurement of additional M291 skin decontamination kits.   
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The Senate bill would separately authorize an additional increase of
   $1.0 million for procurement of M291 skin decontamination kits.         
       The conferees agree to authorize an increase of $3.4 million for    
   procurement of M291 skin decontamination kits, as noted elsewhere in    
   this report.                                                            

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

           Research, Development, Test, and Evaluation overview                    

       The budget request for fiscal year 2002 included an authorization of
   $47,429.4 million for Research and Development for the Department of    
   Defense.                                                                
    The Senate bill would authorize $46,602.5 million.                     

    The House amendment would authorize $47,424.9 million.                 

       The conferees recommended an authorization of $46,460.8 million.    
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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            Management reform initiatives                                          

       The conferees agree to reduce the research, development, test and   
   evaluation accounts by $140.0 million to reflect savings from management
   reform initiatives, as discussed in Title VIII.                         
           Research, Development, Test and Evaluation, Army--Overview              

       The budget request for fiscal year 2002 included an authorization of
   $6,693.9 million for Research, Development, Test and Evaluation, Army in
   the Department of Defense.                                              
    The Senate bill would authorize $6,901.7 million.                      

    The House amendment would authorize $6,749.0 million.                  

       The conferees recommended an authorization of $6,675.3 million.     
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Army missile defense technology                                         

       To support critical missile defense technology activities, the      
   conferees agree that of the funding authorized in the Army research and 
   development account, certain amounts may be used for advanced technology
   activities as specified below:                                          
       (1) up to $1.9 million for the Short-range missile defense With     
   Optimal Radar Distribution (SWORD) program in PE 62303A;                
       (2) up to $7.6 million for Patriot ground equipment upgrades and    
   life extension efforts in PE 23801A;                                    
       (3) up to $3.8 million for the Aerostat Design and Manufacture      
   (ADAM) program in PE 12419A; and                                        
       (4) up to $11.0 million for the Army Space and Missile Defense      
   Battle Lab in PE 63308A.                                                
           Comanche                                                                

       The budget request contained $787.9 million in PE 64223A for        
   continued engineering and manufacturing development (EMD) of the RAH 66 
   Comanche reconnaissance attack helicopter.                              
       The Senate bill would authorize an increase of $28.3 million for the
   development of a communications suite that is compatible with air and   
   ground components in a joint environment.                               
       The House amendment would authorize an increase of $28.5 million for
   a similar purpose.                                                      
       The conferees agree to authorize an increase of $28.3 million in PE 
   64223A for this requirement.                                            
       The conferees believe the Comanche is a necessary and integral      
   weapon system to the Army's transformation and have been supportive of  
   this program in past fiscal years. The Army has stated that the Comanche
   is its top modernization program. However, the conferees note that there
   has been a $3.0 billion increase in research, development, test and     
   evaluation (RDT&E) costs since fiscal year 1991. Despite these          
   substantial cost increases, the program continues to be plagued by      
   delays, which the conferees now understand could result in a full       
   two-year delay of the currently scheduled initial operating capability  
   (IOC) of December 2006 to December 2008. The conferees are disappointed 
   to learn once again of the need to restructure and delay this program   
   for at least a sixth time since fiscal year 1988, and the need to add   
   approximately $1.5 billion to the program to complete EMD.              
       The conferees question the reliability of any new cost estimates and
   EMD program milestones, especially since the EMD contract was awarded   
   only slightly over a year ago, in June 2000, and numerous changes in    
   requirements have been made since then.                                 
       The conferees believe that as the aircraft continues in the EMD     
   phase, an adequately funded and disciplined development program is      
   absolutely essential to fielding this aircraft as part of the Army's    
   Objective Force. Therefore, the conferees expect the Secretary of the   
   Army, in coordination with the Under Secretary of Defense for           
   Acquisition, Technology, and Logistics, and its industry team, to       
   present to Congress in the fiscal year 2003 budget request an accurate  
   estimate of funds required to complete EMD and the new time line and    
   plan for bringing the Comanche to IOC.                                  
           Rapid acquisition program for transformation                            

       The budget request included $23.6 million in PE 23761A for the Rapid
   Acquisition Program for Transformation (RAPT).                          
       The Senate bill would authorize $23.6 million for RAPT, but would   
   transfer the funding from the RAPT program element to the program       
   elements supporting the systems chosen by the Army for entry into the   
   program for fiscal year 2002.                                           
       The House amendment would authorize $23.6 million for RAPT, but     
   would transfer the funding from the RAPT program element to PE 63001A,  
   Warfighter Advanced Technology.                                         
       The conferees agree to authorize $23.6 million in PE 23761A for RAPT
   or counter-terrorism initiatives and direct the Secretary of the Army to
   provide a detailed list of how these funds are executed.                
           Tactical high energy laser                                              

       The budget request included no funds for the Tactical High Energy   
   Laser (THEL) program, a joint U.S.-Israeli development program to       
   demonstrate the feasibility of defeating short-range rockets using      
   directed energy.                                                        
       The Senate bill would authorize $9.0 million of the funds available 
   in PE 63882C to evaluate the development of a Mobile THEL (MTHEL)       
   system.                                                                 
       The House amendment would authorize an increase of $10.0 million to 
   PE 65605A for continuing work on THEL and exploring the option of a     
   mobile version of THEL.                                                 
       The conferees agree to authorize, from within the funds available in
   the Army research and development account, an increase of $10.0 million 
   to PE 65605A for evaluating development of THEL as a mobile system.     
           Thermionics technology                                                  

       The budget request included $19.5 million in PE 63308A for Army     
   missile defense systems integration, but did not include funds for      
   thermionics technology development.                                     
       The Senate bill would authorize, of the funds authorized in PE      
   63882C for the Midcourse Ground Defense System, $8.0 million for        
   thermionics technology development.                                     
       The House amendment would authorize an increase of $3.0 million in  
   PE 63308A for thermionics technology development.                       
       The conferees agree to authorize an increase of $1.0 million in PE  
   63308A for thermionics technology development. Of the amounts authorized
   for Army research and development, an additional $7.0 million may be    
   used for thermionics technology development.                            
           Research, Development, Test and Evaluation, Navy--Overview              

       The budget request for fiscal year 2002 included an authorization of
   $11,123.4 million for Research, Development, Test and Evaluation, Navy  
   in the Department of Defense.                                           
    The Senate bill would authorize $11,134.8 million.                     

    The House amendment would authorize $10,863.3 million.                 

       The conferees recommended an authorization of $10,784.3 million.    
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Follow-on support jamming aircraft                                      

       The budget request included $112.5 million in PE 64270N for         
   electronic warfare development, but included no funds for               
   pre-engineering and manufacturing development (EMD) risk reduction      
   activities for a follow-on support jamming aircraft program to replace  
   the EA 6B.                                                              
       The House amendment would authorize an increase of $10.0 million for
   pre-EMD risk reduction activities for a follow-on support jamming       
   aircraft program.                                                       
    The Senate bill included no similar authorization.                     

       The conferees agree to authorize no additional funds for a follow-on
   support jamming aircraft program.                                       
       The conferees recognize that the Department of Defense is scheduled 
   to complete the Analysis of Alternatives (AoA) in December 2001 and     
   believe that the Department will identify a need to replace the         
   capability currently provided by the EA 6B fleet of electronic warfare  
   aircraft. The conferees believe that the Department should move         
   expeditiously to translate the results of that AoA into a plan that will
   avoid having the Nation presented with any gap in this important mission
   area.                                                                   
           Future destroyer program                                                

       The budget request included $288.4 million in PE 63513N and $355.1  
   million in PE 64300N for the DD 21 program.                             
    The Senate bill would authorize the budget request.                    

       The House amendment would authorize a decrease of $25.0 million in  
   PE 63513N.                                                              
       Subsequent to passage of both the Senate bill and the House         
   amendment, the Navy announced intentions to restructure the DD 21       
   program to a family of surface combatants including a destroyer version,
   DD(X). However, the specifics of the proposed programs for development  
   of the family of surface combatants were not available for the conferees
   to review.                                                              
       Therefore, the conferees agree to authorize a decrease of $50.0     
   million in PE 63513N resulting from the delay in the down-select to a   
   future destroyer detail design. The conferees will review the Navy's    
   decision to restructure DD 21 when the Navy makes available details of  
   the cancellation of the current request for proposals and the proposed  
   replacement program.                                                    
           Littoral support craft--experimental                                    

       The budget request included $85.3 million in PE 63123N for force    
   protection advanced technology, including $20.0 million for development 
   and demonstration of experimental craft for littoral support operations.
   The Office of Naval Research has proposed to conduct a phased program to
   develop and demonstrate an experimental littoral support craft          
   demonstrator (LSC X) that would build upon development and evaluation of
   operational concepts at the component and subsystem level and provide   
   the basis for operational experiments on the contribution that such     
   craft could make to naval operations in the littoral.                   
       The House amendment would authorize a total of $39.0 million in PE  
   63123N for development and demonstration of an LSC X, including an      
   increase of $19.0 million for demonstration and development of an       
   experimental craft for littoral support operations.                     
       The Senate bill included no similar authorization. However, the     
   Senate report accompanying S. 1438 (S. Rept. 107 62) identified at least
   six efforts that the Navy has underway to test key technologies for     
   future ship programs. The Senate report also would encourage the Navy to
   focus ship design efforts on programs that will collect the type of     
   information that will be needed to make decisions on future combatant   
   ships, the future amphibious ship (LH(X)), the future joint command and 
   control ship (JCC(X)), and the maritime prepositioning force ship of the
   future (MPF(F)), rather than duplicating efforts already underway.      
       The conferees agree to authorize a total of $31.0 million in PE     
   63123N, an increase of $11.0 million, to continue the ONR program for   
   development and demonstration of the LSC X.                             
       The conferees direct that the Secretary of the Navy identify the set
   of experimental objectives that the LSC X program is intended to        
   explore, and the objective measures of effectiveness that will be used  
   to determine whether those objectives have been achieved. The conferees 
   also direct the Secretary to define the program plan, the schedule, and 
   the funding requirements for development of LSC X. The Secretary should 
   provide all of this information to the congressional defense committees 
   by March 31, 2002.                                                      
           Research, Development, Test and Evaluation, Air Force--Overview         

       The budget request for fiscal year 2002 included an authorization of
   $14,344.0 million for Research, Development, Test and Evaluation, Air   
   Force in the Department of Defense.                                     
    The Senate bill would authorize $14,459.5 million.                     

    The House amendment would authorize $14,485.7 million.                 

       The conferees recommended an authorization of $14,407.2 million.    
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Joint Strike Fighter                                                    

       The budget request included no funding for PE 63800N or PE 63800F   
   for continuing demonstration and validation (DEMVAL) of the joint strike
   fighter (JSF). The budget request included $767.3 million for PE 64800N 
   and $769.5 million for PE 64800F for initiating the engineering and     
   manufacturing development (EMD) of the JSF.                             
       The Senate bill would authorize an increase of $30.0 million for PE 
   63800N and an increase of $30.0 million for PE 63800F to continue JSF   
   DEMVAL. The Senate bill would also authorize a decrease of $153.6       
   million for PE 64800N and a decrease of $153.6 million for PE 64800F.   
   The Senate bill based these actions on a possible delay in the award of 
   the EMD contract.                                                       
       The House amendment would authorize the budget request for PE       
   64800N, and an increase of $10.0 million for PE 64800F for the JSF      
   alternate engine program.                                               
    The conferees agree to authorize the budget request.                   

       The conferees remain concerned about the technical risks associated 
   with the JSF aircraft engine and expect the Department to develop and   
   integrate the JSF alternate engine within the EMD program. The conferees
   believe that the Department should execute the alternate engine program 
   with a goal of having that engine integrated into the JSF prior to full 
   rate production.                                                        
       The conferees are aware of the potential long-term impact to the    
   military aircraft industrial base as a result of the recently completed 
   source selection. Source selection talking points, released by the      
   Department of Defense (DOD) at the announcement of the selection,       
   stated: ``The JSF downselect may lead companies to reassess their       
   strategic position and teaming arrangements. The expertise resident in  
   the teams not selected today can still make a contribution to the JSF   
   effort through revised industrial teaming arrangements. DoD will        
   encourage teaming arrangements that make the most efficient use of the  
   expertise in the industrial base to deliver the `best value' product.'' 
       The conferees direct the Under Secretary of Defense for Acquisition,
   Technology, and Logistics to submit a report, with the submission of the
   fiscal year 2003 budget request, which details: (1) projections for the 
   military aircraft industrial base, to include foreign military sales,   
   between now and fiscal year 2015; and (2) actions taken by the DOD to   
   encourage teaming arrangements in the JSF program that make the most    
   efficient use of the expertise in the industrial base.                  
           Low cost launch technologies                                            

       The budget request included $54.5 million in PE 63401F for advanced 
   spacecraft technology, but included no funds for low cost launch        
   technology.                                                             
       The Senate bill would authorize, of the funds authorized in PE      
   63882C for the Midcourse Ground Defense System, $15.0 million for the   
   Excalibur and Scorpius low cost launch concepts.                        
       The House amendment would authorize $15.0 million in PE 63401F for  
   low cost launch technologies, including Scorpius.                       
       The conferees note that the Air Force has terminated the Excalibur  
   project. The conferees agree to authorize an increase of $2.0 million in
   PE 63401F for low cost launch technologies, including Scorpius. Of the  
   funds authorized in PE 63401F, an additional $13.0 million may be used  
   for low cost launch technologies, including Scorpius.                   
           Special aerospace materials and materials manufacturing processes       

       The budget request included $77.2 million for PE 62102F for applied 
   research in materials, $32.7 million for PE 63112F for advanced         
   development of advanced materials for weapons systems, and $53.8 million
   in PE 78011F for the Air Force's manufacturing technology program.      
       The House amendment would authorize increases of $4.5 million in PE 
   62102F, $4.5 million in PE63112F, and $3.5 million in PE 78011F to      
   continue the program for development and demonstration of special       
   aerospace materials and materials manufacturing processes.              
       The Senate bill would authorize an increase of $16.5 in PE 62102F,  
   including $5.0 million for improvements in the manufacturing of         
   speciality aerospace materials.                                         
       The conferees agree to an increase of $3.5 million in PE 62102F to  
   continue the program for applied research and development in special    
   aerospace materials and materials manufacturing processes.              
       The conferees note the continuing need of the military services for 
   advances in speciality aerospace metals and metal alloys for aircraft   
   and space vehicle structures, propulsion, components, and weapon        
   systems. The conferees direct the Secretary of the Air Force, in        
   coordination with the Secretary of the Navy, to assess the requirements 
   for advanced aerospace metals and alloys and report to the congressional
   defense committees on the plan, including budget, schedule, and         
   technology demonstrations, for meeting these requirements with the      
   submission of the fiscal year 2004 budget request.                      
           Research, Development, Test and Evaluation, Defense-Wide--Overview      

       The budget request for fiscal year 2002 included an authorization of
   $15,050.8 million for Research, Development, Test and Evaluation,       
   Defense-Wide in the Department of Defense.                              
    The Senate bill would authorize $13,878.7 million.                     

    The House amendment would authorize $15,109.6 million.                 

       The conferees recommended an authorization of $14,372.6 million.    
   Unless noted explicitly in the statement of managers, all changes are   
   made without prejudice.                                                 

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           Arrow missile defense system                                            

       The budget request included $65.7 million in PE 63881C for the Arrow
   ballistic missile defense system, a joint development program between   
   the United States and Israel.                                           
       The Senate bill would authorize an increase of $76.0 million in PE  
   63881C for the Arrow System Improvement Program and for continued joint 
   interoperability efforts.                                               
       The House amendment would authorize an increase of $30.0 million in 
   PE 63881C for acceleration of the Arrow System Improvement Program.     
       The conferees agree to authorize, from within funds available to the
   Ballistic Missile Defense Organization, an increase of $53.0 million in 
   PE 63881C to accelerate the Arrow System Improvement Program and to     
   continue joint interoperability efforts for U.S. and Israeli missile    
   defense systems.                                                        
           Ballistic missile defense advanced technology                           

       To support critical ballistic missile defense technology activities,
   the conferees agree that, of the funding authorized for the Ballistic   
   Missile Defense Organization, certain amounts may be used for advanced  
   technology activities as specified below:                               
       (1) up to $9.0 million for the Magdalena Ridge Observatory in PE    
   63175C;                                                                 
       (2) up to $5.0 million for Phase III of the Software Defined Radio  
   program in PE 63175C;                                                   
       (3) up to $8.0 million for the Army Space and Missile Defense       
   Command's Advanced Research Center (ARC) in PE 63880C;                  
       (4) up to $8.0 million for the Airborne Infrared Surveillance System
   (AIRS) in PE 63175C;                                                    
       (5) up to $2.5 million for Bottom Anti-Reflective Coatings (BARC)   
   for circuit boards in PE 63175C;                                        
       (6) up to $7.5 million for ultra-flat planarization technology for  
   integrated circuits in PE 63175C; and                                   
       (7) up to $10.0 million for the Atmospheric Interceptor Technology  
   (AIT) program in PE 63175C.                                             
           Common database asset for biological security                           

       The budget request included $125.5 million in PE 62384BP for applied
   research in chemical and biological defense.                            
       The Senate bill would authorize an increase of $1.5 million to      
   develop a database of biological pathogen information and bioinformatics
   tools to support development of medical biological countermeasures.     
    The House amendment included no similar authorization.                 

       The conferees agree to authorize an increase of $1.5 million for the
   development of a common database asset to support development of medical
   biological countermeasures. The database would integrate genomic and    
   other biological data about high-priority pathogens, underlying         
   scientific research and bioinformatics tools, and would serve those     
   agencies addressing threats to biological security.                     
                                 ITEMS OF SPECIAL INTEREST                        

           Navy research and development budget exhibits                           

       The Senate report accompanying S. 1438 (S. Rept. 107 62) would      
   require the Navy to comply with the research and development budget     
   justification guidelines included in the Department of Defense (DOD)    
   Financial Management Regulation (DOD 7000.14 R). Subsequent to the      
   passage of the Senate bill, the Navy provided additional budget         
   justification information to the congressional defense committees.      
       The conferees share the concern expressed in the Senate report      
   regarding the reorganization of the Navy's science and technology       
   program elements in the fiscal year 2002 budget justification material. 
   The failure of the Navy to display explicitly the transition between the
   fiscal year 2001 program element structure and the new fiscal year 2002 
   structure detracted from the ability of the defense authorizing         
   committees to exercise their oversight responsibilities.                
       The conferees also share the Senate's concern about the priority    
   given to Fleet and Force operational and support issues in the Navy's   
   science and technology program and direct the Secretary of the Navy to  
   report to the congressional defense committees by March 31, 2002, on the
   measures being taken to address these issues.                           
       The conferees direct the Secretary of the Navy and the Under        
   Secretary of Defense (Comptroller) to ensure that the Navy's budget     
   justification information accompanying the fiscal year 2003 budget      
   request adequately describes the Navy's science and technology program  
   and complies with the requirements of DOD 7000.14 R. The Under Secretary
   shall report to the congressional defense committees with submission of 
   the budget request any deficiencies in the budget justification material
   and the estimated date by which those deficiencies will be resolved.    
                               LEGISLATIVE PROVISIONS ADOPTED                     


                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

           Authorization of appropriations (secs. 201 202)                         

       The Senate bill contained provisions (secs. 201 202) that would     
   authorize the recommended fiscal year 2002 funding levels for all       
   research, development, test, and evaluation accounts.                   
    The House amendment contained similar provisions.                      

    The conference agreement includes these provisions.                    

                      Supplemental authorization of appropriations for fiscal year 
           2001 for Research, Development, Test, and Evaluation Defense-Wide (sec. 
           203)                                                                    
       The Senate bill contained a provision (sec. 233) that would         
   authorize an increase of $1.0 million in fiscal year 2001 for           
   intelligent spatial technologies for smart maps.                        
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

           Naval surface fire support assessment (sec. 211)                        

       The House amendment contained a provision (sec. 212) that would     
   direct the Secretary of Defense to establish a competitive program for  
   the development of an advanced land attack missile (ALAM) for the DD 21,
   and would designate $20.0 million in PE 63795N for that purpose. The    
   provision would also require the Secretary to submit a report on the    
   program plan, schedule and funding for the ALAM program.                
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require the         
   Secretary of Defense to carry out an assessment of the requirements for 
   naval surface fire support of ground forces operating in the littoral   
   environment, including the role of an advanced fire support missile     
   system for Navy combatant vessels. The amended provision would require  
   that the Secretary submit a report on the results of that assessment by 
   March 31, 2002.                                                         
                      Collaborative program for development of advanced radar      
           systems (sec. 212)                                                      
       The House amendment contained a provision (sec. 213) that would     
   establish a cooperative research program to develop electronic materials
   for advanced radar applications.                                        
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would eliminate reference 
   to specific dollar amounts for the programs. These dollar issues are    
   treated in the funding tables in this report.                           
       The conferees agree to a provision that would establish a           
   cooperative research program to develop electronic materials for        
   advanced radar applications. The conferees recognize the emerging       
   importance of advanced electronic materials on future military systems, 
   including advanced radar systems and other applications across services.
       The provision would direct the Director of Defense Research and     
   Engineering, the Secretary of the Navy, the Director of Defense Advanced
   Research Projects Agency (DARPA), and other appropriate services and    
   agencies to enter into a collaborative agreement in order to coordinate 
   ongoing efforts within this critical emerging technology area. The      
   conferees believe that the agreement should focus on: (1) activities    
   needed for technology development to extend the range and sensitivity of
   naval radars, including high frequency and high power wide band gap     
   semiconductor materials and devices; and (2) acquisition systems to     
   accelerate the deployment of the new technology.                        
       The conferees expect the agreement to be constructed in a manner    
   such that the Services and Agencies will increase financial investments 
   to support necessary research, technology transition, and technology    
   insertion activities. The conferees are concerned that, despite a       
   recognition within the Navy of the importance of this emerging          
   technology, the Office of Naval Research budget submission includes only
   very limited funding for wide band gap electronics research.            
       In addition, the conferees expect that any agreement will enable    
   DARPA to maintain the flexibility to invest in a variety of research    
   programs and directions associated with wide band gap technologies that 
   will apply to numerous cross-service applications. This will preserve   
   DARPA's role of developing revolutionary technologies and capabilities, 
   while remaining relatively unconstrained from near-term requirements.   
                      Repeal of limitations on total cost of engineering and       
           manufacturing development for F 22 aircraft program (sec. 213)          
       The Senate bill contained a provision (sec. 211) that would repeal  
   the cost limitation on the engineering and manufacturing development    
   (EMD) phase for the F 22 aircraft program.                              
       The House amendment contained a provision (sec. 214) that would have
   raised the cost limitation on the F 22 EMD program by $250.0 million.   
       The House recedes with an amendment that would clarify that the     
   repeal of the cost limitation would apply only to the EMD phase of the  
   program.                                                                
           Joint biological defense program (sec. 214)                             

       The Senate bill contained a provision (sec. 214) that would extend  
   through fiscal year 2002 section 217 (a) of the Floyd D. Spence National
   Defense Authorization Act for Fiscal Year 2001 to define permissible    
   obligations and identify reports to be provided to Congress concerning  
   procurement of anthrax vaccine.                                         
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Cooperative Department of Defense-Department of Veterans     
           Affairs Medical Research Program (sec. 215)                             
       The House amendment contained a provision (sec. 211) that would     
   authorize funding for the cooperative Department of Defense/Department  
   of Veterans Affairs medical research program.                           
    The Senate bill contained no similar provision.                        

    The Senate recedes with an amendment.                                  

       The conferees agree to authorize $2.5 million in PE 63738D8Z for the
   cooperative Department of Defense/Department of Veterans Affairs medical
   research program for research on the efficacy of antiarrythmic drugs    
   with implantable cardioverter defibrillators. The conferees direct the  
   Secretary of Defense to transfer such amount no later than 30 days after
   the date of the enactment of this Act.                                  
           C 5 aircraft reliability enhancement and reengining program (sec. 216)  

       The Senate bill contained a provision (sec. 212) that would require 
   the Secretary of the Air Force to ensure that engineering and           
   manufacturing development (EMD) under the C 5 aircraft reliability      
   enhancement and reengining program (RERP) includes kit development for  
   an equal number of C 5A and C 5B aircraft. The Air Force program        
   envisioned a total of four aircraft in the RERP EMD program.            
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would require the Secretary
   to include at least one aircraft from among the 74 C 5A aircraft in the 
   C 5 RERP EMD program.                                                   
                           SUBTITLE C--BALLISTIC MISSILE DEFENSE                  

                      Transfer of responsibility for procurement for missile       
           defense programs from Ballistic Missile Defense Organization to military
           departments (sec. 231)                                                  
       The House amendment contained a provision (sec. 231) that would     
   amend section 224 of title 10, United States Code, to change the term   
   ``procurement'' to the term ``research, development, test and           
   evaluation'' with respect to the display of budget amounts in budget    
   requests for the Ballistic Missile Defense Organization (BMDO). The     
   provision would also require the Secretary of Defense to establish      
   criteria for the transfer of ballistic missile defense programs from the
   BMDO to the military departments and to submit these criteria to the    
   congressional defense committees. Prior to the transfer of such a       
   program, the Secretary would be required to notify Congress of his      
   intent to make such a transfer and to certify that the program had met  
   the criteria for transfer. The provision would permit such a transfer 60
   days after Congress is notified.                                        
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require the         
   Secretary of Defense to ensure that, for any transferred program, all   
   appropriate conforming changes are made to proposed or projected funding
   allocations in the future years defense program. This will ensure that  
   the funding is transferred with a program from the BMDO to a military   
   department. The amendment would also require that, before a program is  
   transferred, the roles and responsibilities are clearly defined for     
   follow-on research, development, test and evaluation related to system  
   improvement for that program.                                           
       The budget request proposed transferring the Patriot PAC 3 and the  
   Medium Extended Air Defense System (MEADS) to the Army, and the Navy    
   Area Defense system to the Navy. This provision would delay any such    
   transfer until the requirements of the provision have been met.         
   Consequently, the conferees agree to authorize funding for these        
   ballistic missile defense programs within the BMDO accounts, and not    
   with the military departments.                                          
           Program elements for Ballistic Missile Defense Organization (sec. 232)  

       The House amendment contained a provision (sec. 232) that would     
   repeal section 223 of title 10, United States Code, which established   
   program elements for ballistic missile defense (BMD) programs.          
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would revise the program  
   elements for ballistic missile defense and require certain information  
   and reviews concerning BMD activities.                                  
       The amendment would establish six new functional program elements   
   and require that additional program elements be established for BMD     
   programs entering into engineering and manufacturing development (EMD). 
       The amendment would require the Secretary of Defense to establish   
   cost, schedule, testing and performance goals for BMD programs for the  
   period covered by the future years defense program and to submit a      
   statement of those goals to Congress each year.                         
       The amendment would require the Secretary of Defense to submit to   
   Congress each year an annual program plan for BMD programs that enter   
   EMD or the equivalent phase, including a funding profile that displays  
   estimated total funding and expenditures for significant procurement,   
   construction and research and development, as well as a program schedule
   for significant procurement, construction, research and development,    
   flight tests, and other significant test activities. Information        
   included in annual budget justification documents need not be included  
   in the plan.                                                            
       The amendment would require that specified Department of Defense    
   officials and elements review and comment on the development of goals   
   and the annual program plan required in the provision.                  
       The amendment would require the Director of the Ballistic Missile   
   Defense Organization (BMDO) to develop a plan to ensure that each       
   critical technology for a BMD program is demonstrated in an appropriate 
   environment before entering operational service. The Director of        
   Operational Test and Evaluation would review and comment on the plan.   
       The amendment would require, at the end of fiscal years 2002 and    
   2003, the Comptroller General of the United States to assess the extent 
   to which the BMDO achieved the goals established by the Secretary of    
   Defense for BMD programs, as required by the provision, and to report to
   Congress on the assessment.                                             
       The amendment would also require the Director of Operational Test   
   and Evaluation to assess each year the adequacy and sufficiency of the  
   BMDO test program for the preceding year, and to report to Congress on  
   the assessment.                                                         
            Ballistic missile defense budget justification                          

       The President's budget proposed moving most ballistic missile       
   defense programs into Research, Development, Test and Evaluation,       
   Defense-Wide, and grouping them primarily into five large program       
   elements.                                                               
       The conferees are concerned that this year's budget justification   
   documentation does not include the level of detail provided in past     
   years for many of the projects within the new program elements. While   
   supportive of the administration's intent to experiment with and test   
   new technologies prior to committing to system development and          
   acquisition, the conferees expect to receive appropriate levels of      
   detailed funding, schedule, and test event information as required by   
   annual budget justification reporting guidelines.                       
       In addition to information provided for those programs that have    
   entered engineering and manufacturing development, or an equivalent     
   phase as described in the legislative provision, the Secretary of       
   Defense shall ensure that each year's budget justification documents    
   include the following information for programs and projects in earlier  
   stages of research and development:                                     
     (1) funding appropriated in the previous year;                        

       (2) the expected funding requirement for the next six years, by     
   year; and                                                               
       (3) detailed schedule including hardware and software deliveries, to
   the extent known, and planned decision points and test events, at least 
   through completion of the planned testing and evaluation of the         
   prototype or experiment.                                                
       This information shall be provided as part of the annual program    
   plan report required by the provision, for programs and projects as     
   identified above and any program or project identified as a matter of   
   special interest, provided the information is not already included in   
   budget justification materials accompanying the annual budget request.  
       Ballistic missile defense programs are among the most               
   technologically challenging and complex in the Department of Defense.   
   The exploration of leading edge technologies associated with missile    
   defense programs often involves significant costs. Department of Defense
   directives and instructions (e.g., Department of Defense Instruction    
   5000.2) require the compilation of acquisition cost, life-cycle cost,   
   and total ownership costs for defense projects and programs where       
   available and approved. The conferees direct the Department of Defense  
   to fully comply with the requirements of these DOD directives and       
   instructions, including Department of Defense Instruction 5000.2.       
                      Support of ballistic missile defense activities of the       
           Department of Defense by the National Defense Laboratories of the       
           Department of Energy (sec. 233)                                         
       The House amendment contained a provision (sec. 233) that would, at 
   the discretion of the Director of the Ballistic Missile Defense         
   Organization (BMDO), make available from funds authorized to be         
   appropriated for the BMDO up to $25.0 million for research development  
   and demonstration activities at the national laboratories of the        
   Department of Energy National Nuclear Security Administration (NNSA) in 
   support of the missions of the BMDO. The funds would be available       
   subject to the provision of matching funds by the NNSA. Activities      
   funded using this authority would be conducted under terms of the       
   September 14, 2001 Memorandum of Understanding (MOU) between the        
   Director of the BMDO and the Administrator of the National Nuclear      
   Security Administration for use of the national laboratories by the     
   BMDO.                                                                   
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

       The provision would authorize the Director of the BMDO to use funds 
   available to BMDO, on a discretionary basis, to utilize the national    
   laboratories of the NNSA under the terms and conditions of the MOU. The 
   terms of this MOU require that jointly-funded work done pursuant to the 
   MOU be mutually beneficial to the missions of the two Departments.      
       The conferees note that the NNSA laboratories do a substantial      
   amount of work for the Department of Defense in their role as federally 
   funded research and development centers on a Work for Others basis. The 
   conferees do not intend for this provision in any way to affect the     
   ability of the BMDO to contract with the NNSA laboratories to conduct   
   work under the Work for Others program. On the contrary, the conferees  
   urge the Director to look closely at the capabilities of the NNSA       
   laboratories and to utilize these capabilities fully.                   
           Missile defense testing initiative (sec. 234)                           

       The House amendment contained a provision (sec. 234) that would     
   establish certain guidelines and requirements for the ballistic missile 
   defense testing program of the Department of Defense.                   
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

                      Construction of test bed facilities for missile defense      
           system (sec. 235)                                                       
       The House amendment contained a provision (sec. 235) that would     
   authorize the Secretary of Defense to use up to $500.0 million of funds 
   appropriated for research, development, test and evaluation for fiscal  
   years after fiscal year 2001 that are available for the Ballistic       
   Missile Defense Organization to carry out construction projects,        
   including construction of facilities ``of general utility,'' to         
   establish and operate the missile defense system test bed. The provision
   would also authorize the Secretary of Defense to use such funds to      
   provide assistance to communities to meet increased needs for services  
   or facilities resulting from construction or operation of the test bed, 
   subject to certain conditions.                                          
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would make clear that     
   funds may be used for all construction projects necessary to establish  
   and operate the test bed, but removes the reference to facilities ``of  
   general utility.'' The conferees understand that this authorization     
   would permit the construction of such facilities as a power generation  
   plant, a heating plant and roads. The conferees believe that the term   
   ``of general utility'' could have been construed to mean facilities not 
   necessary for establishing or operating the test bed, which would be    
   inconsistent with congressional intent.                                 
       The amendment would also limit the use of funds for community       
   assistance to funds appropriated for fiscal year 2002. If the Secretary 
   of Defense determines that additional authority is needed to use funds  
   for community assistance, the conferees direct the Secretary to provide 
   full and specific justification for such authority.                     
              SUBTITLE D--AIR FORCE SCIENCE AND TECHNOLOGY FOR THE 21ST CENTURY   

           Air Force science and technology for the 21st Century Act (sec. 251 252)

       The House amendment contained two provisions (secs. 251 and 252)    
   that establish a sense of Congress regarding the Air Force science and  
   technology development planning process.                                
    The Senate bill contained no similar provisions.                       

    The Senate recedes.                                                    


                      Study and report on effectiveness of Air Force science and   
           technology program changes (sec. 253)                                   
       The House amendment contained a provision (sec. 253) that would     
   require the Air Force and the National Research Council to study how    
   changes to the Air Force science and technology program implemented over
   the past two years affect the future capabilities of the Air Force.     
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

       The conferees direct the Air Force to ensure that the National      
   Research Council is provided sufficient resources to adequately conduct 
   the study called for by the provision.                                  
                                  SUBTITLE E--OTHER MATTERS                       

                      Establishment of unmanned aerial vehicle joint operational   
           test bed system (sec. 261)                                              

       The House amendment contained a provision (sec. 241) that would     
   require the Commander in Chief, U.S. Joint Forces Command to establish a
   joint operational test bed (JOTB) system to evaluate and ensure joint   
   interoperability of unmanned aerial vehicle (UAV) systems. The provision
   would also direct the Secretary of the Navy to transfer certain Predator
   UAVs and related equipment to the Joint Forces Command for use in the   
   JOTB system.                                                            
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would delete the          
   requirement for the transfer, but ensure that the Commander-in-Chief,   
   U.S. Joint Forces Command controls the priority for use of these        
   predators and UAVs.                                                     
                      Demonstration project to increase small business and         
           university participation in Office of Naval Research efforts to extend  
           benefits of science and technology research to fleet (sec. 262)         
       The House amendment contained a provision (sec. 242) that would     
   require the Chief of Naval Research to carry out a demonstration project
   to increase access to Navy facilities of small businesses and           
   universities that are engaged in science and technology research        
   beneficial to the fleet.                                                
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would ensure that the     
   Secretary of the Navy has discretion over which Navy facilities to make 
   available for the demonstration project and is able to charge an        
   appropriate fee for the use of these facilities.                        
       The conferees strongly encourage the Chief of Naval Research to     
   reach out to small, high-technology companies and encourage them to     
   participate in this demonstration program. As a part of this outreach   
   effort, the conferees encourage the Chief of Naval Research to consider 
   the use of third-party partners, where appropriate, to help create and  
   maintain contacts and relationships with the high-technology            
   communities.                                                            
                      Communication of safety concerns from operational test and   
           evaluation officials to program managers (sec. 263)                     
       The Senate bill contained a provision (sec. 232) that would amend   
   section 139 of title 10, United States Code. The provision would add a  
   subsection requiring the Director of Operational Test and Evaluation to 
   ensure that any safety concerns found during the operational test and   
   evaluation of a weapon system under a major defense acquisition program 
   are communicated in a timely manner to the program manager responsible  
   for the acquisition of that weapon system.                              
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Big Crow                                                                

       The Senate bill contained a provision (sec. 216) that would         
   authorize funding for the Big Crow program.                             
    The House amendment contained no similar provision.                    

    The Senate recedes on the provision.                                   

       The conferees agree to authorize an increase of $2.0 million in PE  
   65118D8Z for the Big Crow program for test and evaluation activities to 
   support electronic warfare, space operations, and other missions.       
           C 5 aircraft modernization                                              

       The House amendment contained a provision (sec. 215) that would     
   restore a reduction of $30.0 million in the amount requested in         
   Research, Development, Test, and Evaluation, Air Force, for re-engining 
   and avionics modernization programs for the C 5 aircraft.               
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

    The conferees agree to authorize the budget request.                   

           Enhanced scramjet mixing                                                

       The Senate bill contained a provision (sec. 203) that would         
   authorize funding for enhanced scramjet mixing.                         
    The House amendment contained no similar provision.                    

    The Senate recedes on the provision.                                   

       The conferees agree to authorize an increase of $2.5 million in PE  
   62303A for research in enhanced scramjet mixing.                        
           Management responsibility for Navy mine countermeasures programs        

       The House amendment contained a provision (sec. 243) that would     
   extend the time period during which the Secretary of Defense and the    
   Chairman of the Joint Chiefs would have to provide an annual            
   certification about the adequacy of the Navy's mine countermeasures     
   programs. The provision would change the ending date of that requirement
   from fiscal year 2003 to fiscal year 2008.                              
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     


           Review of alternatives to the V 22 Osprey aircraft                      

       The Senate bill contained a provision (sec. 213) that would require 
   the Under Secretary of Defense (Acquisition, Technology, and Logistics) 
   to conduct a review of Marine Corps and Special Operations Command      
   requirements that are expected to be met by the V 22 Osprey aircraft in 
   order to identify potential alternatives to the V 22 in the event that  
   the V 22 program were to be terminated. The provision would also set    
   aside $5.0 million that would be available to conduct this review.      
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

                      Special operations forces command, control, communications,  
           computers, and intelligence systems threat warning and situational      
           awareness program                                                       
       The Senate bill contained a provision (sec. 204) that would         
   authorize an increase of $2.8 in PE 116405BB for the special operations 
   forces command, control, communications, computers, and intelligence    
   (SOF C4I) systems threat warning and situational awareness (PRIVATEER)  
   program.                                                                
    The House amendment contained no similar provision.                    

    The Senate recedes on the provision.                                   

       The conferees agree to authorize an increase of $1.0 million in PE  
   116444BB for the special operations forces command, control,            
   communications, computers, and intelligence (SOF C4I) systems threat    
   warning and situational awareness (PRIVATEER) program, as noted         
   elsewhere in this conference report.                                    
           Technology ``Challenge'' program                                        

       The House amendment contained a provision (sec. 244) that would     
   establish a technology ``Challenge'' program for the acceleration of    
   innovative technology in defense acquisition programs.                  
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

           Technology transition initiative                                        

       The Senate bill contained a provision (sec. 231) that would         
   establish a technology transition initiative within the Department of   
   Defense.                                                                
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees direct the Department of Defense to continue and      
   expand efforts to accelerate the rapid transition of technologies into  
   operational environments.                                               
                            TITLE III--OPERATION AND MAINTENANCE                  

           Overview                                                                

       The budget request for fiscal year 2002 requested an authorization  
   of $125,350.0 million for operation and maintenance programs and        
   $2,458.4 million for working capital fund accounts for the Department of
   Defense for fiscal year 2002.                                           
       The Senate bill would authorize $125,386.3 million for operation and
   maintenance accounts and $2,408.1 million for working capital fund      
   accounts.                                                               
       The House amendment would authorize $124,025.0 million for operation
   and maintenance accounts and $2,359.7 million for working capital fund  
   accounts.                                                               
       The conferees recommend an authorization of $123,259.9 million for  
   the operation and maintenance accounts and $1,656.4 million for the     
   working capital fund accounts of the Department of Defense for fiscal   
   year 2002. The conferees agree to a reduction of $295.6 million in the  
   Defense Working Capital Fund to reflect lower fuel prices; and a        
   reduction of $125.0 million to reflect adjustments in utility prices, to
   be allocated proportionately among the Army, Navy, Marine Corps, Air    
   Force and Defense-Wide accounts. Unless noted explicitly in the         
   statement of managers, all funding changes are made without prejudice.  
       The following table lists the amounts authorized to be appropriated 
   for each program in the operation and maintenance accounts of the       
   Department of Defense.                                                  

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           Management reform initiatives                                           

       The conferees agree to reduce operations and maintenance accounts by
   $1.07 billion to reflect savings from management reform initiatives, as 
   discussed in Title VIII.                                                
           Combating terrorism initiative                                          

       The budget request included $5.6 billion to continue improving the  
   ability of U.S. forces to deter and defend against the growing terrorist
   threat.                                                                 
    The House amendment would authorize the requested amount.              

       The Senate bill would authorize the $5.6 billion request, but       
   included an additional $217.2 million to further improve U.S.           
   capabilities to combat terrorism. Of this increase, $108.0 million was  
   added to operation and maintenance accounts. This included: $77.7       
   million to address force protection vulnerabilities on Army             
   installations; $14.3 million for enhanced counterterrorism training for 
   U.S. Special Operations Forces; $10.0 million for the combating         
   terrorism readiness initiatives fund for combatant commands; and $6.0   
   million to purchase hand-held explosive detectors for seagoing Navy     
   vessels.                                                                
       The conferees note that many of the vulnerabilities to terrorist    
   attacks have become high priorities for the Department of Defense. This 
   is reflected in the fact that a significant portion of the additional   
   funds included in the Senate bill have already been funded in the fiscal
   year 2001 emergency supplemental appropriations act. Specifically, the  
   conferees understand that, as of the end of September 2001, the Army had
   received $257.0 million in supplemental funding for force protection    
   improvements at its installations, and the Special Operations Command   
   had received $151.0 million for combating terrorism, including immediate
   counterterrorism training needs. The conferees agree, therefore, to     
   authorize an additional $10.0 million for the combatant commands'       
   Combating Terrorism Readiness Initiatives Fund, and $3.0 million to     
   purchase hand-held explosive detectors for the Navy.                    
           Commercial imagery to support military requirements                     

       The budget request included $30.0 million for purchasing commercial 
   imagery products in support of national needs.                          
       The Senate bill would authorize an increase of $10.0 million to     
   establish prototype contracts that the National Imagery and Mapping     
   Agency (NIMA) would use to establish stronger ties with the private     
   sector to satisfy commercial satellite imagery needs. The Senate report 
   (S. Rept. 107 62) indicated that NIMA officials have suggested that the 
   NIMA might enter into prototype contracts with commercial remote sensing
   entities to provide commercial satellite imagery for the NIMA.          
       The conferees understand that, under such an approach, the NIMA     
   would contract with one or more U.S. commercial satellite imagery       
   providers to provide a portion of this imagery directly to a network of 
   geospatial production companies, each of which supports NIMA customers  
   with interests in a particular region.                                  
    The House amendment would approve the budget request.                  

       The conferees believe that the United States should prioritize the  
   use of commercial remote sensing as envisioned in Presidential Decision 
   Directive 23. Moreover, the conferees believe that allocating certain   
   satellite imagery requirements to the U.S. commercial remote sensing    
   industry will allow the government to focus its own assets on more      
   demanding intelligence requirements. The conferees continue to support  
   using commercial satellite imagery and geospatial products and services 
   to satisfy the non-time-critical low and medium resolution requirements 
   of the Secretary of Defense, including the regional commanders in chief,
   and the intelligence community.                                         
       The conferees also understand that the administration is developing 
   a commercial imagery strategy to support these requirements and endorses
   the development and implementation of such a strategy. The conferees    
   believe, however, that the U.S. Government must become a reliable,      
   long-term customer of commercial satellite imagery if the strategy is to
   be successful. The conferees recognize that there are budgetary and     
   contracting issues, but do not believe these are beyond solution.       
       Therefore, the conferees direct the Secretary of Defense and the    
   Director of Central Intelligence to plan and carry out a program to     
   purchase a significant portion of their non-time-critical low and medium
   resolution satellite imagery requirements from the U.S. commercial      
   remote sensing industry by 2005.                                        
       The conferees note that substantial resources relating to commercial
   imagery activities have been included in the Emergency Terrorism        
   Response Supplemental Appropriations Act, 2001. Therefore, the conferees
   recommend no additional funding above the President's budget request for
   fiscal year 2002. The conferees expect that the NIMA and the            
   administration will make appropriate use of these funds to implement    
   this commercial imagery strategy.                                       
                               LEGISLATIVE PROVISIONS ADOPTED                     

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

           Authorization of appropriations (secs. 301 302)                         


       The Senate bill contained provisions (secs. 301 302) that would     
   authorize the recommended fiscal year 2002 funding levels for all       
   operation and maintenance and working capital fund accounts.            
    The House amendment contained similar provisions (secs. 301 302).      

    The conference agreement includes these provisions.                    

           Armed Forces Retirement Home (sec. 303)                                 

       The Senate bill contained a provision (sec. 303) that would         
   authorize the appropriation of $71.4 million from the Armed Forces      
   Retirement Home Trust Fund for fiscal year 2002 and $22.4 million for   
   the development and construction of a blended use, multicare facility   
   and acquisition of land at the Naval Home.                              
    The House amendment contained a similar provision (sec. 303).          

    The House recedes with a clarifying amendment.                         

           Transfer from National Defense Stockpile Transaction Fund (sec. 304)    

       The House amendment contained a provision (sec. 304) that would     
   authorize the transfer of $150.0 million from the National Defense      
   Stockpile Transaction Fund to operation and maintenance accounts of the 
   Army, Navy and Air Force.                                               
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Funds for renovation of Department of Veterans Affairs       
           facilities adjacent to Naval Training Center, Great Lakes, Illinois     
           (sec. 305 )                                                             
       The Senate bill contained a provision (sec. 309) that would         
   authorize the Secretary of the Navy to use up to $2.0 million to fund   
   the renovation and relocation of Department of Veterans Affairs         
   facilities in the proximity of the Naval Training Center, Great Lakes,  
   Illinois. The provision would make the authorization contingent on the  
   Secretary of Veterans Affairs and the Secretary of the Navy entering    
   into an agreement to provide 48 acres of Department of Veterans Affairs 
   property for the expansion of the Naval Training Center.                
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Defense Language Institute Foreign Language Center expanded  
           Arabic language program (sec. 306)                                      
       The Senate bill contained a provision (sec. 338) that would         
   authorize $650,000 of the amounts available in the Operation and        
   Maintenance, Army, account for an expanded Arabic language program at   
   the Defense Language Institute.                                         
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                            SUBTITLE B--ENVIRONMENTAL PROVISIONS                  

                      Inventory of unexploded ordnance, discarded military         
           munitions, and munitions constituents at defense sites (other than      
           operational ranges) (sec. 311)                                          
       The House amendment contained a provision (sec. 311) that would     
   require the Department of Defense to inventory sites that are known or  
   suspected to contain abandoned military munitions.                      
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would: (1) provide that   
   the inventory requirement does not apply to operating storage and       
   manufacturing facilities, operational ranges, or locations outside the  
   United States; (2) clarify the definitions of military munitions,       
   operational ranges, unexploded ordnance and other key terms; (3) require
   consultation with representatives of States and Tribes in the           
   development of a protocol for site prioritization; (4) clarify that the 
   prioritization of sites does not impair, alter or diminish the          
   Department's obligations under federal or state law; and (5) extend the 
   time period available for the Department to complete the inventory and  
   prioritization of sites.                                                
                      Establishment of new program element for remediation of      
           unexploded ordnance, discarded military munitions, and munitions        
           constituents (sec. 312)                                                 
       The Senate bill contained a provision (sec. 311) that would require 
   the Secretary of Defense to establish within each environmental         
   restoration account established for the Department of Defense a         
   sub-account for the remediation of unexploded ordnance and related      
   constituents.                                                           
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would: (1) establish       
   program elements, rather than sub-accounts, within each of the          
   environmental restoration accounts; and (2) clarify that the accounts   
   cover discarded munitions as well as unexploded ordnance and related    
   constituents.                                                           
                      Assessment of environmental remediation of unexploded        
           ordnance, discarded military munitions, and munitions constituents (sec.
           313)                                                                    

       The Senate bill contained a provision (sec. 312) that would require 
   the Department of Defense to conduct a comprehensive assessment and     
   develop a plan for addressing unexploded ordnance, discarded munitions  
   and related constituents on Department of Defense facilities and        
   installations.                                                          
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would: (1) harmonize the   
   terminology and scope of this provision with other provisions related to
   unexploded ordnance; and (2) delay from calendar year 2002 to calendar  
   year 2003 the due date of the required report. The conference report    
   would require the Department of Defense to provide an interim report    
   containing all available information in calendar year 2002.             
                      Conformity of surety authority under environmental           
           restoration program with surety authority under CERCLA (sec. 314)       
       The Senate bill contained a provision (sec. 316) that would         
   eliminate the sunset date for the surety provisions in section 2701 of  
   title 10, United States Code.                                           
    The House amendment contained no similar provision.                    

    The House recedes with a technical amendment to the title.             

                      Elimination of annual report on contractor reimbursement for 
           costs of environmental response actions (sec. 315)                      
       The House amendment contained a provision (sec. 315) that would     
   remove the requirement for the Department of Defense to report to       
   Congress on contractor reimbursement for costs of environmental response
   actions for the top 20 defense contractors.                             
    The Senate bill contained no similar provision.                        

    The Senate recedes with a technical amendment.                         

                      Pilot program for sale of air pollution emission reduction   
           incentives (sec. 316)                                                   
       The Senate bill contained a provision (sec. 314) that would extend  
   through September 30, 2003, the authority for the Department of Defense 
   to conduct a pilot program for the sale of air pollution emission       
   reduction incentives.                                                   
    The House amendment contained no similar provision.                    

       The House recedes with an amendment requiring the Secretary of      
   Defense to report to Congress on the use of the program.                
           Department of Defense energy efficiency program (sec. 317)              

       The Senate bill contained a provision (sec. 313) that would require 
   the Secretary of Defense to carry out a program to significantly improve
   the energy efficiency of the Department of Defense over the next 10     
   years, and require the Department to report to Congress on progress in  
   implementing that program.                                              
       The House amendment contained a provision (sec. 1050) expressing the
   sense of Congress that the Department should work to implement fuel     
   efficiency reforms.                                                     
       The House recedes with an amendment that would incorporate the sense
   of Congress into the provision and ensure that the reports to Congress  
   include the same information in the same format as is already generated 
   for executive branch purposes.                                          
                      Procurement of alternative fueled and hybrid light duty      
           trucks (sec. 318)                                                       
       The Senate bill contained a provision (sec. 317) that would require 
   the Secretary of Defense to purchase hybrid electric vehicles, to the   
   extent that such vehicles are commercially available and meet the       
   Department of Defense's requirements, for the Department of Defense     
   fleet of light duty trucks that is not already subject to the           
   requirement to purchase alternative fueled vehicles pursuant to the     
   Energy Policy Act of 1992 (42 U.S.C. 13212).                            
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would expand the coverage  
   of the provision to all types of hybrid vehicles, to ensure that hybrid 
   vehicles other than hybrid-electric vehicles (such as hybrid hydrogen or
   fuel-cell vehicles) would also be eligible for purchase under the       
   provision.                                                              
                      Reimbursement of Environmental Protection Agency for certain 
           response costs in connection with Hooper Sands site, South Berwick,     
           Maine (sec. 319)                                                        
       The Senate bill contained a provision (sec. 315) that would         
   authorize the Secretary of Defense to reimburse the Environmental       
   Protection Agency (EPA) for environmental costs incurred by the EPA     
   consistent with the January 2001 agreement between the Navy and the EPA.
    The House amendment contained a similar provision (sec. 313).          

    The House recedes with a technical amendment.                          

           River mitigation studies (sec. 320)                                     

       The House amendment contained a provision (sec. 314) that would     
   authorize the Secretary of Defense to conduct mitigation studies in two 
   locations and to work with federal, state, local and private entities to
   address problems that may be identified.                                
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would authorize the       
   studies and require that each study address the extent, if any, to which
   the Department of Defense (DOD) is responsible for any problems         
   identified. The conference agreement does not authorize the use of DOD  
   funds to address these problems. The conferees understand that any      
   action would be conducted only under existing authority and in          
   accordance with applicable procedures and requirements.                 
             SUBTITLE C--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  

           Commissary benefits for new members of the Ready Reserve (sec. 331)     

       The Senate bill contained a provision (sec. 662) that would grant   
   new members of the Ready Reserve access to commissary stores.           
    The House amendment contained a similar provision (sec. 321).          

    The House recedes.                                                     

                      Reimbursement for use of commissary facilities by military   
           departments for purposes other than commissary sales (sec. 332)         
       The Senate bill contained a provision (sec. 322) that would require 
   service secretaries to reimburse the Defense Commissary Agency for a    
   share of the depreciated value of a commissary facility when a military 
   department uses, for non-commissary related purposes, a facility        
   previously acquired, constructed, or improved with commissary surcharge 
   funds.                                                                  
    The House amendment contained a similar provision (sec. 322).          

    The House recedes.                                                     

                      Public releases of commercially valuable information of      
           commissary stores (sec. 333)                                            
       The Senate bill contained a provision (sec. 323) that would         
   authorize the Secretary of Defense to limit release to the public of    
   commercially valuable commissary store information and to use           
   competitive contracting procedures to sell commissary sales data,       
   customer demographic information, and information pertaining to         
   commissary transactions and operations.                                 
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Rebate agreements with producers of foods provided under     
           special supplemental food program (sec. 334)                            
       The Senate bill contained a provision (sec. 321) that would         
   authorize the Secretary of Defense to enter into annual contracts for   
   rebates with producers of food products for the exclusive right to      
   provide food in commissary stores as supplemental food for the Women,   
   Infants, and Children (WIC) Overseas Program.                           
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Civil recovery for nonappropriated fund instrumentality costs
           related to shoplifting (sec. 335)                                       
       The House amendment contained a provision (sec. 323) that would     
   authorize the military exchanges to pursue federal debt collection      
   remedies against shoplifters in the military exchange stores.           
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                           SUBTITLE D--WORKFORCE AND DEPOT ISSUES                 

                      Revision of authority to waive limitation on performance of  
           depot-level maintenance (sec. 341)                                      
       The Senate bill contained a provision (sec. 335) that would elevate 
   the current authority to waive limitations on performance of depot-level
   maintenance to the Secretary of Defense. The provision also required the
   Secretary to submit to the Congress a strategic plan on the operations  
   of public depots.                                                       
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would remove the statutory 
   requirement for a report. The conferees are aware, however, that the Air
   Force is developing a strategic plan for the future operation and use of
   the Air Logistics Centers. The conferees believe that such a plan is    
   essential, and direct the Secretary of the Air Force to submit this plan
   to the Committees on Armed Services of the Senate and the House of      
   Representatives not later than January 31, 2002.                        
                      Exclusion of certain expenditures from limitation on private 
           sector performance of depot-level maintenance (sec. 342)                

       The House amendment contained a provision (sec. 335) that would     
   establish a five-year pilot program at three Air Force depots. The      
   program would exclude work performed in a public depot under a          
   public-private partnership from restrictions included in title 10,      
   United States Code relating to private sector work.                     
    The Senate bill contained a similar provision (sec. 332).              

       The House recedes with an amendment that would expand the program to
   all Centers of Industrial and Technical Excellence and set the program  
   length at four years.                                                   
                      Protections for purchasers of articles and services          
           manufactured or performed by working-capital funded industrial          
           facilities of the Department of Defense (sec. 343)                      
       The House amendment contained a provision (sec. 336) that would     
   permit a private sector entity that has contracted with the public      
   sector in a working capital-funded activity of the Department of Defense
   to file a claim if the public sector fails to comply with quality,      
   schedule, or cost performance as required by the contract.              
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Revision of deadline for annual report on commercial and     
           industrial activities (sec. 344)                                        
       The Senate bill contained a provision (sec. 1024) that would change 
   the due date for the Commercial Activities Report to Congress, required 
   by section 2461(g) of title 10, United States Code, from February 1 to  
   June 30 of each year, as requested by the Department of Defense.        
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Pilot manpower reporting system in Department of the Army (sec. 345)    

       The House amendment contained a provision (sec. 333) that would     
   require the Department of the Army to report annually on the size of its
   contractor workforce.                                                   
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require the         
   Secretary of the Army to provide to Congress an annual report describing
   the use of non-federal entities that provide services to the Department 
   of the Army during fiscal years 2002 through 2004. The amendment would  
   also clarify that the Secretary of the Army would be required to use    
   existing data collection and reporting systems to compile this report,  
   and would not be permitted to impose any new data requirements on       
   non-federal entities.                                                   
       The conferees note that a similar provision, applicable to all three
   military services, was included in section 343 of the National Defense  
   Authorization Act for Fiscal Year 2000. The Navy and the Air Force      
   complied with this provision without establishing any new data          
   collection systems or imposing any new data requirements on contractors.
   The conferees expect the Army to implement the new provision in a       
   similar manner, without establishing any new data collection systems or 
   imposing any new data requirements on contractors.                      
                      Development of Army Workload and Performance System and      
           Wholesale Logistics Modernization Program (sec. 346)                    
       The House amendment contained a provision (sec. 334) that prohibited
   the Secretary of the Army from expanding the Wholesale Logistics        
   Modernization Program (WLMP) beyond the original legacy systems until   
   those legacy systems have been replaced.                                
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that requires the Secretary of 
   the Army to maintain the functionality and identity of the Army Workload
   and Performance System (AWPS) as the WLMP moves forward. The Secretary  
   of the Army will also ensure that the AWPS continues to be the standard 
   Army-wide manpower system.                                              
       The amendment requires an annual report to the Congress on AWPS     
   implementation. The report will be evaluated by the General Accounting  
   Office.                                                                 
                          SUBTITLE E--DEFENSE DEPENDENTS EDUCATION                

                      Assistance to local educational agencies that benefit        
           dependents of members of the armed forces and Department of Defense     
           civilian employees (sec. 351)                                           
       The House amendment contained a provision (sec. 341) that would     
   authorize $30.0 million for educational assistance to local education   
   agencies where the standard for the minimum level of education within   
   the state could not be maintained because of the large number of        
   military connected students, and $1.0 million for payments to local     
   education agencies to assist in adjusting to reductions in military     
   dependent students resulting from the closure or realignment of military
   installations.                                                          
       The Senate bill contained a similar provision (sec. 304) that would 
   authorize $35.0 million for impact aid to local education agencies.     
    The Senate recedes.                                                    


           Impact aid for children with severe disabilities (sec. 352)             

       The Senate bill contained a provision (sec. 305) that would         
   authorize $5.0 million for continuation of the Department of Defense    
   assistance program to local educational agencies that benefit dependents
   with severe disabilities.                                               
    The House amendment contained no similar provision.                    

    The House recedes with a technical amendment.                          

                      Availability of auxiliary services of defense dependents'    
           education system for dependents who are home school students (sec. 353) 
       The House amendment contained a provision (sec. 342) that would     
   require the Department of Defense (DOD) to provide support for home     
   schooled students who are otherwise eligible to attend DOD schools.     
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would remove participation
   in individual academic courses from the services available to dependents
   who are home schooled and add a requirement that the home schooled      
   students must comply with the standards of conduct applicable to other  
   students using or receiving the same auxiliary services.                
                      Comptroller General study of adequacy of compensation        
           provided for teachers in the Department of Defense overseas dependents' 
           schools (sec. 354)                                                      
       The Senate bill contained a provision (sec. 1122) that would require
   the Comptroller General to conduct a study and report on whether        
   compensation for teachers in the defense dependents' education program  
   is adequate for recruiting and retaining high quality teachers, and     
   whether changes in the methodology for computing teacher pay are        
   necessary.                                                              
       The House amendment contained a similar provision (sec. 343) that   
   would require the Secretary of Defense to conduct the study.            
       The House recedes with an amendment that would change the date to   
   May 1, 2002, that the Comptroller General must report to Congress on the
   results of the study.                                                   
                                  SUBTITLE F--OTHER MATTERS                       

                      Availability of excess defense personal property to support  
           Department of Veterans Affairs initiative to assist homeless veterans   
           (sec. 361)                                                              
       The House amendment contained a provision (sec. 351) that would     
   permit the Secretary of Defense to make excess clothing, shoes, sleeping
   bags, and related non-lethal excess supplies available, without         
   reimbursement, to the Secretary of Veterans Affairs for distribution to 
   homeless veterans and programs assisting homeless veterans.             
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

       The conferees direct the Secretary of Defense to ensure that        
   adequate safeguards are in place to prevent procurement of those items  
   and declaring them excess and available for distribution shortly after  
   receipt.                                                                
                      Incremental implementation of Navy-Marine Corps Intranet     
           contract (sec. 362)                                                     
       The House amendment contained a provision (sec. 352) that           
   permanently excluded the Marine Corps from the Navy-Marine Corps        
   Intranet (NMCI) program, and extended exclusions for naval aviation     
   depots and shipyards through fiscal year 2002.                          
       The Senate bill contained a provision (sec. 334) that codified the  
   Department of Defense's plan to rephase the implementation of the NMCI  
   program, based on achievement of specified testing and performance      
   milestones.                                                             
       The House recedes with an amendment that more fully describes       
   additional phase-in authority for the NMCI. The amendment allows the    
   Secretary of the Navy to contract for an additional 100,000 work        
   stations (the ``second increment''), pending joint approval by the Under
   Secretary of Defense (Acquisition, Technology, and Logistics) and the   
   Department of Defense (DOD) Chief Information Officer (CIO). This       
   approval is dependent on successful completion of a three-phase customer
   test and evaluation (known as CT&E3), as detailed in the Master Test    
   Plan maintained by the NMCI contractor. Tests shall be conducted on a   
   representative, statistically-significant sample population of NMCI work
   stations. The validity of the results will be independently evaluated   
   and confirmed by the Institute for Defense Analyses.                    
       The amendment permits the Secretary of the Navy to order a third    
   increment of an additional 150,000 work stations, pending successful    
   performance of at least 20,000 work stations operating on the NMCI      
   network. Certification of this performance must be made by the Navy CIO 
   to the Secretary of the Navy and the DOD CIO. The amendment further     
   restricts the NMCI contractor from assuming responsibility for more than
   half of the work stations allowed to be ordered in the third increment  
   until the Navy CIO certifies to the Secretary of the Navy and the DOD   
   CIO that the work stations for the full headquarters at the Naval Air   
   Systems Command (NAVAIR) are meeting applicable service-level           
   agreements.                                                             
       The amendment also requires the Secretary of the Navy to submit to  
   Congress a report on the scope and status of testing and implementation 
   of the NMCI network at the point at which the second and third          
   increments of work stations are ordered. The same information shall be  
   submitted when the performance requirements for NAVAIR headquarters have
   been met and authority for the NMCI contractor to assume responsibility 
   for the remaining 75,000 seats in the third increment is granted. The   
   conferees intend for these reports to be complete but succinct, and to  
   the extent possible to draw upon information already reported within the
   Department of Defense.                                                  
       The amendment also requires the General Accounting Office to conduct
   a study of the impact of NMCI implementation on the rate structure of   
   naval shipyards and depots. Finally, the amendment requires the         
   Secretary of the Navy to identify a single individual whose sole        
   responsibility will be to direct and oversee the NMCI program.          
       The conferees are concerned that schedule delays have limited the   
   amount of empirical information about the viability and performance of  
   the NMCI. The slowdowns in the NMCI program have resulted in a difficult
   situation. Continuing the program requires additional orders of work    
   stations, but so few work stations have been converted to the network   
   that it is not yet clear whether the program will operate as intended.  
   Despite some lingering concerns, the conferees have adopted a plan,     
   based on continued demonstrations of successful testing and performance 
   capabilities, that is intended to allow the program to move forward in a
   prudent manner. The conferees expect that the Navy, in a departure from 
   past practice, will be fully and readily forthcoming with information   
   about and explanations for any future delays or performance concerns.   
   The conferees' designation of a single NMCI manager is intended to      
   facilitate such communication with the Congress, which is of particular 
   importance given the size and operational impact of the NMCI program.   
                      Comptroller General Study and Report of National Guard       
           Distributive Training Technology Project (sec. 363)                     
       The Senate bill contained a provision (sec. 1027) that directed the 
   Comptroller General to conduct a study of the interconnectivity between 
   the voice, data, and video networks of the National Guard Distributive  
   Training Technology Project (DTTP) and other Department of Defense,     
   federal, state and private networks.                                    
       The purpose of the study was to identify existing capabilities and  
   future networking requirements for operational support of disaster      
   response, homeland defense, command and control of premobilization      
   forces, training of military personnel, training of first responders and
   shared use of the DTTP networks by government and members of the        
   networks. The Comptroller General was also directed to identify         
   appropriate connections between DTTP networks and those networks at the 
   federal and state level responsible for disaster response and to        
   identify requirements for, impediments to, and means of improving       
   connectivity between DTTP and the other networks. The Comptroller       
   General was required to submit a report on the study to the Armed       
   Services Committees of the Senate and the House of Representatives no   
   more than 180 days after the date of enactment of the Act.              
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that clarifies the need for the 
   Army National Guard to establish the current and future requirements    
   associated with the DTTP. In order for the Comptroller General to       
   conduct a proper review and analysis, the Army National Guard must first
   clearly articulate these requirements. Under the conference agreement   
   the Comptroller General shall submit its report to the Armed Services   
   Committees of the Senate and the House of Representatives within 270    
   days after the date of enactment of this Act.                           
           Reauthorization of warranty claims recovery pilot program (sec. 364)    

       The Senate bill contained a provision (sec. 336) that would         
   reauthorize a pilot program allowing the Secretary of Defense to use    
   commercial services to improve the collection of Department of Defense  
   claims for aircraft engine warranties.                                  
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Evaluation of current demonstration programs to improve      
           quality of personal property shipments of members (sec. 365)            
       The House amendment contained a provision (sec. 353) that would     
   require the Department of Defense to complete all demonstration programs
   to improve the movement on household goods for members of the Armed     
   Forces. The provision also required the Secretary of Defense to submit  
   to the Congress an evaluation of these programs no later than August 31,
   2002.                                                                   
    The Senate bill contained no similar provision.                        

       The conferees understand that the Department of Defense has         
   cancelled the remaining pilot program that would have been continued    
   under the House provision. The conferees maintain that reengineering the
   household goods moving process continues to be an important quality of  
   life initiative, and that termination of the Full Service Moving Project
   does not relieve the Department of Defense of its responsibilities to   
   improve the moving process. The Senate therefore recedes with an        
   amendment that would require the Secretary of Defense to complete an    
   evaluation of all ongoing test programs for household goods moves. No   
   later than March 31, 2002, the Secretary shall submit to the Congress a 
   report on the findings of this evaluation, recommendations for policy   
   improvements, and an estimate of associated costs.                      
                      Sense of Congress regarding security to be provided at 2002  
           Winter Olympic Games (sec. 366)                                         
       The House amendment contained a provision (sec. 355) that would     
   express the sense of Congress that the Secretary of Defense should      
   provide public safety support for the 2002 Winter Olympic Games in Salt 
   Lake City, Utah.                                                        
    The Senate bill contained no similar provision.                        

       The Senate recedes with a clarifying amendment that notes the need  
   for the certification of the Attorney General pursuant to section       
   2564(a) of title 10, United States Code.                                
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Applicability of core logistics capability requirements to   
           nuclear aircraft carriers                                               
       The House amendment contained a provision (sec. 332) that would     
   exclude refueling of nuclear aircraft carriers, rather than all         
   maintenance work on such ships, from the core logistics capabilities    
   that the Department of Defense maintains.                               
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

           Authorization of additional funds                                       

       The Senate bill contained a provision (sec. 308) that would         
   authorize the use of $2.0 million of operation and maintenance funds for
   Defense-Wide accounts to refurbish and replace air handlers and related 
   control systems at Air Force medical centers.                           
    The House amendment contained no similar provision.                    

    The Senate recedes on the provision.                                   

       The conferees agree to authorize $2.0 million of the funds available
   for Operation and Maintenance, Defense-Wide, for Air Force air handlers.
           Consequence management training                                         

       The Senate bill contained a provision (sec. 339) that would         
   authorize the use of $5.0 million of operation and maintenance funds for
   Defense-Wide activities to provide training for members of the armed    
   forces (including reserve component personnel) in managing the          
   consequences of an incident involving the use or threat of use of a     
   weapon of mass destruction.                                             
    The House amendment contained no similar provision.                    

    The Senate recedes on the provision.                                   

       The conferees agree to authorize $5.0 million of the funds available
   for Operation and Maintenance, Defense-Wide, for consequence management 
   training for both active and reserve component military personnel.      
           Critical infrastructure protection initiative of the Navy               

       The Senate bill contained a provision (sec. 340) that would         
   authorize the use of $6.0 million of operation and maintenance funds for
   the Navy for the critical infrastructure protection initiative.         
    The House amendment contained no similar provision.                    

    The Senate recedes on the provision.                                   

       The conferees agree to authorize $6.0 million of the funds available
   for Operation and Maintenance, Navy, for the critical infrastructure    
   protection initiative.                                                  
           Environmental restoration, Formerly Used Defense Sites                  

       The Senate bill contained a provision (sec. 307) that would increase
   the authorized funding for the environmental restoration of Formerly    
   Used Defense Sites (FUDS) by $40.0 million.                             
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees agree to increase funding for environmental           
   restoration of FUDS by $40.0 million.                                   
       The conferees note that there are over 9,000 properties identified  
   for inclusion in the FUDS program, hundreds of which could be           
   categorized as former ranges. Historically, the FUDS program has        
   experienced significant funding shortfalls, making it difficult to      
   execute much needed remediation projects at these sites. In an effort to
   address this problem, Congress included additional funds for FUDS       
   remediation in fiscal years 2000 and 2001. These funding increases      
   merely helped to address some, not all of the funding shortfalls. The   
   fiscal year 2002 budget request again failed to adequately address this 
   funding problem.                                                        
       The conferees direct the Secretary of Defense to comprehensively    
   resolve this issue within the Department of Defense with a special      
   emphasis on the Department of the Army. The conferees expect the        
   Secretary of Defense to ensure that the fiscal year 2003 budget request 
   reflects progress in this area. In addition, the conferees direct the   
   Secretary of Defense to submit a report in conjunction with the fiscal  
   year 2003 budget request that provides a future years plan for          
   resolution of the FUDS funding shortfalls.                              
                      Expansion of entities eligible for loan, gift, and exchange  
           of documents, historical artifacts, and obsolete combat materiel        
       The House amendment contained a provision (sec. 354) that would     
   expand the list of entities eligible to receive certain materials from  
   the Department of Defense.                                              
    The Senate bill contained no similar provision.                        

       The House recedes. The text of the House provision is incorporated  
   into a separate provision addressing Department of Defense gift         
   authorities (sec. 1043).                                                
           Funding for land forces information operations sustainment              

       The Senate bill contained a provision (sec. 337) that would         
   authorize the use of $5.0 million of operation and maintenance funds for
   the Army Reserve for information operations sustainment.                
    The House amendment contained no similar provision.                    

    The Senate recedes on the provision.                                   

       The conferees agree to authorize $5.0 million of the funds available
   for Operation and Maintenance, Army Reserve, for information operations 
   sustainment.                                                            
                      Improvements in instrumentation and targets at Army live-fire
           training ranges                                                         
       The Senate bill contained a provision (sec. 306) that would increase
   funding for improvements in Army live-fire ranges by $11.9 million,     
   offset by reductions in the fuel accounts of the Defense Working Capital
   Fund.                                                                   
    The House amendment contained no similar provision.                    

       The Senate recedes on the provision, and the conferees agree to     
   authorize additional funds.                                             
           Limitation on workforce reviews                                         

       The House amendment contained a provision (sec. 331) that would: (1)
   limit the number of workforce reviews that could be performed by the    
   Department of Defense until certain conditions were met; and (2)        
   prohibit the conversion of Department of Defense functions to private   
   sector performance unless the cost savings from doing so would be at    
   least 10 percent.                                                       
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                        TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS               

                               LEGISLATIVE PROVISIONS ADOPTED                     

                                  SUBTITLE A--ACTIVE FORCES                       

           End strengths for active forces (sec. 401)                              

       The Senate bill contained a provision (sec. 401) that would         
   authorize active duty end strengths for fiscal year 2002, as shown      
   below:                                                                  

                                                                               

                2001 Authorization                Fiscal year--               

                                       2002 request    2002 recommendation  

Army                        480,000         480,000                480,000  
Navy                        372,642         376,000                376,000  
Marine Corps                172,600         172,600                172,600  
Air Force                   357,000         358,800                358,800  

    The House amendment contained an identical provision (sec. 401).       

    The conference agreement includes this provision.                      

           Revision in permanent end strength minimum levels (sec. 402)            

       The House amendment contained a provision (sec. 402) that would     
   establish end strength floors for the active forces at the end strengths
   contained in the budget request.                                        
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

                      Increase in senior enlisted active duty grade limit for Navy,
           Marine Corps, and Air Force (sec. 403)                                  
       The House amendment contained a provision (sec. 504) that would     
   increase the limitation on the authorized daily average number of       
   enlisted members serving on active duty within an armed force in the pay
   grade of E 8 from two percent to two and one half percent of the total  
   number of enlisted members of that armed force on active duty on the    
   first day of that fiscal year.                                          
    The Senate bill contained a similar provision (sec. 402).              

    The Senate recedes with a clarifying amendment.                        

                                 SUBTITLE B--RESERVE FORCES                       

           End strengths for Selected Reserve (sec. 411)                           

       The Senate bill contained a provision (sec. 411) that would         
   authorize Selected Reserve end strengths for fiscal year 2002, as shown 
   below:                                                                  

                                                                                              

                                                 2001 authorization                  Fiscal year--               

                                                                          2002 request    2002 recommendation  

The Army National Guard of the United States                  350,526          350,000                350,000  
The Army Reserve                                              205,300          205,000                205,000  
The Navy Reserve                                               88,900           87,000                 87,000  
The Marine Corps Reserve                                       39,558           39,558                 39,558  
The Air National Guard of the United States                   108,022          108,400                108,400  
The Air Force Reserve                                          74,358           74,700                 74,700  
The Coast Guard Reserve                                         8,000            8,000                  8,000  

    The House amendment contained an identical provision (sec. 411).       

    The conference agreement includes this provision.                      

                      End strengths for reserves on active duty in support of the  
           reserves (sec. 412)                                                     
       The Senate bill contained a provision (sec. 412) that would         
   authorize the full-time support end strengths for fiscal year 2002, as  
   shown below:                                                            

                                                                                             

                                                 2001 authorization                  Fiscal year--               

                                                                          2002 request    2002 recommendation  

The Army National Guard of the United States                   22,974           22,974                 23,698  
The Army Reserve                                               13,106           13,108                 13,406  
The Navy Reserve                                               14,649           14,811                 14,811  
The Marine Corps Reserve                                        2,261            2,261                  2,261  
The Air National Guard of the United States                    11,170           11,591                 11,591  
The Air Force Reserve                                           1,336            1,437                  1,437  

    The House amendment contained a similar provision (sec. 412).          

    The House recedes.                                                     

           End strengths for military technicians (dual status) (sec. 413)         

       The Senate bill contained a provision (sec. 413) that would         
   authorize the minimum level of dual status technician end strengths for 
   fiscal year 2002, as shown below:                                       

                                                                                             

                                                 2001 authorization                  Fiscal year--               

                                                                          2002 request    2002 recommendation  

The Army Reserve                                                5,921            5,999                  6,249  
The Army National Guard of the United States                   23,128           23,128                 23,615  
The Air Force Reserve                                           9,785            9,818                  9,818  
The Air National Guard of the United States                    22,247           22,422                 22,422  

       The House amendment contained a provision (sec. 413) that would     
   authorize the following end strengths for military technicians (dual    
   status) as of September 30, 2002:                                       

                                                                                             

                                                 2001 authorization                  Fiscal year--               

                                                                          2002 request    2002 recommendation  

The Army Reserve                                                5,921            5,999                  5,999  
The Army National Guard of the United States                   23,128           23,128                 23,128  
The Air Force Reserve                                           9,785            9,818                  9,818  
The Air National Guard of the United States                    22,247           22,422                 22,422  

    The House recedes.                                                     

           Fiscal year 2002 limitation on non-dual status technicians (sec. 414)   

       The House amendment contained a provision (sec. 414) that would     
   establish the following limits on the numbers of non-dual status        
   technicians as of September 30, 2002:                                   

                                                                                            

                                                 2001 limit                  Fiscal year--               

                                                                  2002 request    2002 recommendation  

The Army Reserve                                        1,195            1,095                  1,095  
The Army National Guard of the United States            1,600            1,600                  1,600  
The Air Force Reserve                                      10                0                     90  
The Air National Guard of the United States               326              350                    350  

       The Senate bill contained a similar provision (sec. 414). The Senate
   recedes.                                                                
                      Limitations on numbers of reserve personnel serving on active
           duty or full-time National Guard duty in certain grades for             
           administration of reserve components (sec. 415)                         
       The House amendment contained a provision (sec. 415) that would     
   authorize new grade tables for all reserve components of the military   
   departments to limit the number of officers and senior enlisted members 
   serving on active duty or full-time National Guard Duty in the pay      
   grades of 0 6, 0 5, 0 4, E 9, and E 8.                                  

    The Senate bill contained a similar provision (sec. 415).              

    The Senate recedes with a clarifying amendment.                        

                  SUBTITLE C--OTHER MATTERS RELATING TO PERSONNEL STRENGTHS       

           Administration of end strengths (sec. 421)                              

       The House amendment contained a provision (sec. 421) that would     
   authorize the Secretary of Defense to increase the active duty end      
   strength of a military service up to two percent above the authorized   
   end strengths for that service.                                         
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would authorize the       
   President to waive any statutory end strength at the end of any fiscal  
   year during which there is in effect a war or national emergency.       
                      Active duty end strength exemption for National Guard and    
           reserve personnel performing funeral honors functions (sec. 422)        
       The House amendment contained a provision (sec. 422) that would     
   permit members of the reserve components on active duty and members on  
   full-time National Guard duty to prepare for and perform funeral honors 
   functions without counting against the active duty end strengths of the 
   armed forces.                                                           
    The Senate bill contained a similar provision (sec. 561).              

    The Senate recedes.                                                    

                         SUBTITLE D--AUTHORIZATION OF APPROPRIATIONS              

           Authorization of appropriations for military personnel (sec. 431)       

       The Senate bill contained a provision (sec. 421) that would         
   authorize a total of $82,396.9 million to be appropriated to the        
   Department of Defense for military personnel.                           
       The House amendment contained a provision (sec. 431) that would     
   authorize $82,279.1 million to be appropriated to the Department of     
   Defense for military personnel.                                         
       The House recedes with an amendment that would authorize $82,307.3  
   million to be appropriated to the Department of Defense for military    
   personnel.                                                              
       The conferees provide the following itemization of the increases and
   decreases from the budget request related to the military personnel     
   accounts:                                                               

                                MILITARY PERSONNEL ACCOUNTS                       

          [Additions in millions]                                                 

                                                                        

Conference                                                              

                                                                        

agreement                                                               

  Officer Uniform Allowances                                              

 4.0                                                                     

  Authorize TLE for Officer First Duty Station                            

 6.0                                                                     

  Increase TLE to $180 per day                                            

 39.0                                                                    

  Pet Quarantine Reimbursement                                            

 1.0                                                                     

  Additional Army Guard AGR End Strength                                  

 24.7                                                                    

  Additional Army Reserve AGR End Strength                                

 8.3                                                                     

  Transferability of MGIB Benefits                                        

 30.0                                                                    

  DLA for Members w/Dependents at First Duty Station                      

 36.0                                                                    

  Education Savings Bonds                                                 

 20.0                                                                    

                                                                          

 169.0                                                                   

                                MILITARY PERSONNEL ACCOUNTS                       

          [Reductions in millions]                                                

                                                                        

Conference                                                              

                                                                        

agreement                                                               

  Savings from Installment Payments for 15-year Career Status Bonus       

 30.0                                                                    

  Air Force End Strength and Grade Underexecution                         

 129.0                                                                   

  Savings from DOD Proposals Not Enacted                                  

 10.0                                                                    

                                                                          

 169.0                                                                   


                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Increase in authorized strengths for Air Force officers on   
           active duty in the grade of major                                       
       The House amendment contained a provision (sec. 423) that would     
   authorize a seven percent increase in the maximum number of officers    
   serving on active duty in the grade of major.                           
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                      Strength and grade limitation accounting for reserve         
           component members on active duty in support of a contingency operation  
       The Senate bill contained a provision (sec. 416) that would         
   authorize the Secretary of Defense to increase the limit on active duty 
   end strengths of members of the reserve components in pay grades E 8, E 
   9, O 4, O 5, O 6, and general and flag officers by the number in those  
   pay grades serving on active duty, with their consent, in support of a  
   contingency operation.                                                  
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    


                             TITLE V--MILITARY PERSONNEL POLICY                   

                               LEGISLATIVE PROVISIONS ADOPTED                     

                            SUBTITLE A--OFFICER PERSONNEL POLICY                  

                      Enhanced flexibility for management of senior general and    
           flag officer positions (sec. 501)                                       
       The Senate bill contained a provision (sec. 501) that would increase
   the grade of the Vice Chief of the National Guard Bureau to lieutenant  
   general, the grades of the heads of the Nurse Corps for the Army and the
   Air Force to major general and of the Navy to rear admiral (upper half),
   and the grade of the Chief of Army Veterinary Corps to brigadier        
   general. The provision would also authorize one additional Marine       
   general above the grade of major general and exclude an officer serving 
   as the Senior Military Assistant to the Secretary of Defense in the     
   grade of general or lieutenant general, or admiral or vice admiral, from
   the limit on officers serving in that grade for his or her service, and 
   would repeal the limit on the number of officers on active duty in the  
   grades of general or admiral.                                           
       The House amendment contained a provision (sec. 501) that would     
   repeal the limit on the number of officers on active duty in the grades 
   of general or admiral.                                                  
       The House recedes with an amendment that would repeal the limit on  
   the number of officers on active duty in the grades of general or       
   admiral.                                                                
       The conferees are concerned about the various proposals received    
   each year for authorizing new general or flag officer positions,        
   increasing the total number of general and flag officers, and exempting 
   general and flag officers from current grade limits. The conferees are  
   also aware that changes made as a result of the Defense Strategy Review 
   and the Quadrennial Defense Review may result in changes in requirements
   for general and flag officers.                                          
       Rather than addressing individual proposals piecemeal, the conferees
   direct the Secretary of Defense, using current data and requirements, to
   conduct a comprehensive review, as delineated by section 1213 of the    
   National Defense Authorization Act for Fiscal Year 1997, of the existing
   statutory reserve and active general and flag officer authorizations.   
   The Secretary should report the results of the review to Congress no    
   later than six months after the date of enactment of this Act, together 
   with any recommendations for revisions to those authorizations.         
                      Certifications of satisfactory performance for retirement of 
           officers in grades above major general and rear admiral (sec. 502)      
       The Senate bill contained a provision (sec. 507) that would         
   authorize the Secretary of Defense to delegate to the Under Secretary of
   Defense for Personnel and Readiness or the Deputy Under Secretary of    
   Defense for Personnel and Readiness the authority to certify to the     
   President and to Congress that certain officers have served             
   satisfactorily in the grade of general, admiral, lieutenant general, or 
   vice admiral before authorizing retirement in that grade. The provision 
   would require the Secretary of Defense to act personally on cases where 
   there is potentially adverse information that has not previously been   
   reported to the Senate in connection with a previous appointment.       
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

           Review of actions of selection boards (sec. 503)                        

       The Senate bill contained a provision (sec. 585) that would provide 
   that service members or former service members challenging the results  
   of selection boards or promotion boards are not entitled to relief in a 
   judicial proceeding unless the matter was first considered by a special 
   board or a special selection board, or the secretary concerned denied   
   such consideration.                                                     
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

       The conferees do not intend, by this provision, to change the       
   existing authority of the federal courts to determine the validity of   
   any statute, regulation or policy relating to selection boards in any   
   applicable form of action, including, when authorized by law or by the  
   rules of the court, a class action.                                     
                      Temporary reduction of time-in-grade requirement for         
           eligibility for promotion for certain active-duty list officers in      
           grades of first lieutenant and lieutenant (junior grade) (sec. 504)     
       The Senate bill contained a provision (sec. 502) that would reduce  
   the minimum time-in-grade for promotion of lieutenants and lieutenants  
   (junior grade) from two years to 18 months.                             
    The House amendment contained a similar provision (sec. 503).          

       The House recedes with an amendment that would limit this provision 
   to officers with 18 months time-in-grade as first lieutenants and       
   lieutenants (junior grade) before October 1, 2005.                      

                      Authority for promotion without selection board consideration
           for all fully qualified officers in grade of first lieutenant or        
           lieutenant (junior grade) in the Navy (sec. 505)                        
       The Senate bill contained a provision (sec. 503) that would         
   authorize the promotion of officers on the active-duty list and on the  
   reserve active-status list to captain in the Army, Air Force, or Marine 
   Corps, or to the grade of lieutenant in the Navy without selection board
   action when the secretary concerned determines that all fully qualified 
   officers eligible for consideration for promotion are needed in the next
   higher grade to accomplish mission objectives. The recommended provision
   would provide that an officer who is not promoted because the secretary 
   concerned determines that the officer is not fully qualified for        
   promotion would be treated as having failed of selection for promotion. 
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Authority to adjust date of rank of certain promotions       
           delayed by reason of unusual circumstances (sec. 506)                   
       The Senate bill contained a provision (sec. 504) that would         
   authorize the service secretaries to adjust dates of rank of officers in
   grades 0 6 and below when the officers' promotions are delayed because  
   of unusual circumstances causing an unintended delay in the processing  
   or approval of a report of a selection board or promotion list.         
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Authority for limited extension of medical deferment of      
           mandatory retirement or separation (sec. 507)                           
       The House amendment contained a provision (sec. 505) that would     
   authorize the secretaries of the military departments to extend for an  
   additional 30 days the deferment of mandatory retirement or separation  
   for medical reasons to provide a member additional time to prepare for  
   retirement or separation.                                               
    The Senate bill contained a similar provision (sec. 505).              

    The Senate recedes.                                                    

                      Authority for limited extension on active duty of members    
           subject to mandatory retirement or separation (sec. 508)                
       The House amendment contained a provision (sec. 506) that would     
   authorize the secretaries of the military departments to extend for an  
   additional 90 days the deferment of mandatory retirement or separation  
   due to the implementation of stop loss authority to provide the military
   member additional time to prepare for retirement or separation.         
    The Senate bill contained a similar provision (sec. 508).              

    The Senate recedes with a clarifying amendment.                        

                      Exemption from certain administrative limitations for retired
           officers ordered to active duty as defense or service attache AE1s (sec.
           509)                                                                    
       The Senate bill contained a provision (sec. 506) that would exclude 
   retired members recalled to active duty for service as defense or       
   service attache AE1s from the limitations on the number of retired      
   members who can be recalled to active duty and from the time limit on   
   the period of a recall to active duty.                                  
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

       The Secretary of Defense has repeatedly sought additional exceptions
   to the limitations on retired members recalled to active duty. The      
   conferees believe that the Secretary of Defense should have more        
   flexibility to recall retired members without seeking legislative       
   authority to do so. Accordingly, the conferees direct the Secretary of  
   Defense to report, not later than March 31, 2002, to the Committees on  
   Armed Services of the Senate and the House of Representatives on an     
   appropriate limit on the number of retirees in pay grade 0 6 and below  
   who could serve on active duty at any one time if the exceptions        
   contained in sections 688(e)(2) and 690(b)(2) of title 10, United States
   Code, were eliminated.                                                  
           Officer in charge of United States Navy Band (sec. 510)                 

       The House amendment contained a provision (sec. 508) that would     
   permit a Navy limited duty officer who holds the rank of at least       
   lieutenant commander to be detailed to serve in the rank of captain     
   while holding the position of officer in charge of the United States    
   Navy Band.                                                              
    The Senate bill contained a similar provision (sec. 509).              

    The Senate recedes with a clarifying amendment.                        

                       SUBTITLE B--RESERVE COMPONENT PERSONNEL POLICY             

                      Placement on active-duty list of certain reserve officers on 
           active duty for a period of three years or less (sec. 511)              

       The House amendment contained a provision (sec. 511) that would     
   require members recalled to active duty for three years or less to be   
   placed on the active-duty list unless the service secretary specifies in
   the service member's orders that the member will be retained on the     
   reserve active-status list.                                             
    The Senate bill contained a similar provision (sec. 512).              

    The Senate recedes.                                                    

                      Exception to baccalaureate degree requirement for appointment
           of reserve officers to grades above first lieutenant (sec. 512)         
       The Senate bill contained a provision (sec. 511) that would extend  
   by three years, to September 30, 2003, the authority of the Secretary of
   the Army to waive, on a case by case basis, the requirement for reserve 
   officers commissioned through the Army Officer Candidate School to have 
   been awarded a baccalaureate degree before being promoted to the grade  
   of captain.                                                             
    The House amendment contained a similar provision (sec. 513).          

       The House recedes with an amendment that would also authorize the   
   Secretary of the Navy to waive, on a case by case basis, the requirement
   for a baccalaureate degree in the case of reserve officers whose        
   original appointment as a reserve officer in the Marine Corps was       
   through the Marine Corps meritorious commissioning program.             
       The conferees intend that the service secretaries grant waivers only
   to those officers who have demonstrated substantial progress toward     
   achieving the goal of earning a baccalaureate degree.                   
                      Improved disability benefits for certain reserve component   
           members (sec. 513)                                                      
       The House amendment contained a provision (sec. 514) that would     
   remove the requirement that reservists must be performing inactive-duty 
   for training at a site that is outside normal commuting distance before 
   being eligible for disability benefits and programs if they incur or    
   aggravate an injury, illness, or disease in the line of duty when       
   remaining overnight at training locations before or between             
   inactive-duty training periods.                                         
    The Senate bill contained a similar provision (sec. 515).              

    The Senate recedes with a clarifying amendment.                        

                      Time-in-grade requirement for reserve component officers     
           retired with a nonservice-connected disability (sec. 514)               
       The House amendment contained a provision (sec. 515) that would     
   authorize retirement eligible reserve officers with                     
   non-service-connected physical disabilities that disqualify the officer 
   from continued service to be retired in the highest grade held by the   
   officer for six months, regardless of other time-in-grade requirements. 
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would limit application of
   this provision to members whose nonservice-connected-disabilities are   
   incurred in the line of duty.                                           
                      Equal treatment of reserves and full-time active duty members
           for purposes of managing personnel deployments (sec. 515)               
       The Senate bill contained a provision (sec. 513) that would amend   
   the definition of deployment for reservists to include performance of   
   duty that makes it impossible or infeasible to spend off-duty time in   
   the housing that the member usually occupies during off-duty time when  
   on garrison duty.                                                       
    The House amendment contained a similar provision (sec. 516).          

    The House recedes with a clarifying amendment.                         

                      Modification of physical examination requirements for members
           of the Individual Ready Reserve (sec. 516)                              
       The Senate bill contained a provision (sec. 514) that would         
   eliminate the requirement that members of the Individual Ready Reserve  
   receive a physical examination every five years and would require a     
   physical examination as necessary to determine the member's physical    
   fitness for military duty or for promotion, attendance at an armed      
   forces' school, or other action related to career progression.          
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Retirement of reserve members without requirement for formal 
           application or request (sec. 517)                                       
       The Senate bill contained a provision (sec. 516) that would         
   authorize the service secretaries to transfer to the Retired Reserve    
   officers who are required to be removed from active status because of   
   failure of selection for promotion, length of service or age, and       
   warrant officers and enlisted members who are required to be discharged 
   or removed from active status because of years of service or age, unless
   the member requests not to be transferred to the Retired Reserve.       
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         


           Space-required travel by reserves on military aircraft (sec. 518)       

       The Senate bill contained a provision (sec. 517) that would correct 
   an impairment to authorized travel with allowances for reservists       
   performing annual training duty.                                        
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Payment of Federal Employee Health Benefit Program premiums  
           for certain reservists called to active duty in support of contingency  
           operations (sec. 519)                                                   
       The House amendment contained a provision (sec. 588) that would     
   authorize federal agencies to pay both the employee and government      
   contributions to the Federal Employee Health Benefit Program for federal
   employees who are members of a reserve component who are called to      
   active duty for more than 30 days in support of a contingency operation.
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

            SUBTITLE C--JOINT SPECIALTY OFFICERS AND JOINT PROFESSIONAL MILITARY  
                                    EDUCATION                                     
           Nominations and promotions for joint specialty officers (sec. 521)      

       The House amendment contained a provision (sec. 521) that would     
   provide for the automatic nomination of any officer who, before or after
   the enactment of this provision, meets the statutory education and      
   service requirements for nomination as a joint specialty officer (JSO). 
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would provide that, during
   the three-year period following enactment, officers with a joint        
   specialty are expected, as a group, to be promoted at a rate not less   
   than the rate for officers of the same armed force in the same grade and
   competitive category.                                                   
       The conferees intend that JSOs must remain highly qualified and     
   competitive for promotion within their services. Following an assessment
   of recommendations made by an independent study of joint officer        
   management and joint professional military education reforms, Congress  
   will reassess the promotion standard.                                   
           Joint duty credit (sec. 522)                                            

       The House amendment contained a provision (sec. 522) that would     
   prescribe standards and requirements for the Secretary of Defense to    
   award joint duty credit to officers serving in temporary joint task     
   force headquarters that are not engaged in combat or near combat        
   operations.                                                             
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Retroactive joint service credit for duty in certain joint   
           task forces (sec. 523)                                                  
       The House amendment contained a provision (sec. 523) that would     
   authorize the Secretary of Defense, after a case-by-case review, to     
   award joint service credit to an officer who served in the headquarters 
   of a temporary joint task force employed by the United States during one
   or more of nine specific joint operations that began during the period  
   August 1, 1992, and June 11, 1999.                                      
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

           Revision to annual report on joint officer management (sec. 524)        

       The House amendment contained a provision (sec. 524) that would     
   change some annual reporting requirements to reflect the committee's    
   recommended amendments to the joint officer management system.          
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Requirement for selection for joint specialty before         
           promotion to general or flag officer grade (sec. 525)                   
       The House amendment contained a provision (sec. 525) that would     
   require that after September 20, 2007, officers promoted to brigadier   
   general or rear admiral (lower half) must be selected as a joint        
   specialty officer (JSO) prior to their promotion.                       
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would permit waiver of the
   requirement that officers must be selected as a JSO as a condition for  
   promotion to flag or general officer under certain circumstances.       
       The conferees note that the Goldwater-Nichols Defense Reorganization
   Act provided that both joint professional military education and        
   completion of one full tour of joint duty, or, in certain circumstances,
   completion of two full tours of duty in a joint duty assignment, were   
   required to qualify an officer as a JSO. In addition, the               
   Goldwater-Nichols Act required not only that all future senior leaders  
   of joint forces be joint specialty officers as a condition of assignment
   as commander of a unified or specified command, but also established    
   that future Vice Chairmen of the Joint Chiefs of Staff would also come  
   from the ranks of JSOs. However, as a precondition for promotion to     
   brigadier general, or rear admiral (lower half) the Goldwater-Nichols   
   Act established a less demanding standard, requiring only the completion
   of one ``full tour'' of joint duty, and not requiring Joint Professional
   Military Education (JPME). Fifteen years after the enactment of the     
   Goldwater-Nichols Act, the conferees believe that it is appropriate to  
   require that officers selected for general and flag officer rank should 
   be drawn from the ranks of JSOs.                                        
       The conferees believe that persons promoted to flag and general     
   officer should be held at least to the same standard as other officers  
   qualifying as JSOs. The conferees also believe that it is not           
   unreasonable to expect the services to include completion of JPME and a 
   joint duty tour in the career paths of officers who are ultimately      
   selected for promotion to general and flag officer rank. To that end,   
   the conferees desire that the serving-in waiver be eliminated, if       
   possible, through creative approaches to career management, such as     
   extending mandatory retirement dates upon completion of JPME and/or     
   designation as a JSO; and require that the independent study required   
   elsewhere in this report specifically address the feasibility and       
   implications of eliminating the serving-in waiver.                      
                      Independent study of joint officer management and joint      
           professional military education reforms (sec. 526)                      
       The House amendment contained a provision (sec. 526) that would     
   require that the Secretary of Defense commission an independent study of
   issues related to joint officer management, joint professional military 
   education, and the roles of the Secretary and the Chairman of the Joint 
   Chiefs of Staff in managing and educating joint officers.               
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require that the    
   entity conducting the study submit a report on the study to Congress not
   later than one year after the date of enactment of this Act.            
           Professional development education (sec. 527)                           

       The House amendment contained a provision (sec. 527) that would make
   the Secretary of Defense the executive agent for funding professional   
   development education operations at the National Defense University     
   beginning in fiscal year 2003.                                          
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Authority for National Defense University to enroll certain  
           private sector civilians (sec. 528)                                     
       The House amendment contained a provision (sec. 528) that would     
   permit up to 10 private sector employees of organizations relevant to   
   national security to receive instruction at the National Defense        
   University.                                                             
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

                      Continuation of reserve component professional military      
           education test (sec. 529)                                               
       The House amendment contained a provision (sec. 529) that would     
   require the Secretary of Defense to continue the concept validation test
   of the Joint Professional Military Education (JPME) course for reserve  
   component officers in fiscal year 2002, and would authorize a broader   
   pilot program in fiscal year 2003 for reserve component JPME, if the    
   Secretary determines that the results of the concept validation test    
   merit it.                                                               
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                         SUBTITLE D--MILITARY EDUCATION AND TRAINING              

           Defense Language Institute Foreign Language Center (sec. 531)           

       The House amendment contained a provision (sec. 531) that would     
   authorize the commandant of the Defense Language Institute to award an  
   associate of arts degree in a foreign language to graduates of the      
   Institute's Foreign Language Center who meet the requirements for the   
   degree.                                                                 
    The Senate bill contained a similar provision (sec. 534).              

    The Senate recedes.                                                    

                      Authority for the Marine Corps University to award degree of 
           master of strategic studies (sec. 532)                                  
       The House amendment contained a provision (sec. 532) that would     
   authorize the president of the Marine Corps University to confer the    
   degree of master of strategic studies upon graduates of the Marine Corps
   War College who meet the requirements for that degree.                  
    The Senate bill contained a similar provision (sec. 535).              

    The Senate recedes.                                                    


           Foreign students attending the service academies (sec. 533)             

       The Senate bill contained a provision (sec. 536) that would         
   authorize the service secretaries to permit 60 persons from foreign     
   countries to attend the service's academy at any one time and would     
   authorize the Secretary of Defense to waive, in whole or in part, the   
   requirement for reimbursement of the cost of providing instruction to a 
   foreign cadet or midshipman.                                            
       The conferees expect the Department of Defense to exercise its      
   authority to waive reimbursement in a fiscally prudent manner,          
   recognizing the extraordinary value of a service academy education. The 
   Department should give full consideration to all the factors concerning 
   the ability of the foreign country to provide partial or complete       
   reimbursement. The conferees direct the Secretary of Defense to include 
   in the justification materials submitted with the annual budget request 
   an exhibit describing the number of waivers granted and the rationale   
   for approving the waivers in each service.                              
    The House amendment contained a similar provision (sec. 533).          

    The House recedes with a clarifying amendment.                         

                      Increase in maximum age for appointment as a cadet or        
           midshipman in Senior Reserve Officers' Training Corps scholarship       
           programs (sec. 534)                                                     
       The House amendment contained a provision (sec. 534) that would     
   increase the maximum allowable age for the Senior Reserve Officers'     
   Training Corps scholarship program from age 27 on June 30 of the year in
   which the officer candidate is expected to be commissioned to age 35 on 
   December 31 of the year in which the officer candidate is expected to be
   commissioned.                                                           
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would increase the age to 
   31 years of age on December 31 of the year in which the officer         
   candidate is expected to be commissioned.                               
                      Participation of regular enlisted members of the armed forces
           in Senior Reserve Officers' Training Corps program (sec. 535)           
       The Senate bill contained a provision (sec. 540) that would         
   authorize active duty enlisted members to participate in the Senior     
   Reserve Officers' Training Corps program.                               
    The House amendment contained a similar provision (sec. 535).          

    The House recedes with a clarifying amendment.                         


                      Authority to modify the service obligation of certain ROTC   
           cadets in military junior colleges receiving financial assistance (sec. 
           536)                                                                    
       The House amendment contained a provision (sec. 536) that would     
   authorize the Secretary of the Army to permit military junior college   
   cadets who sign future Guaranteed Reserve Forces Duty contracts to      
   satisfy their service obligation through either active duty service or  
   reserve service in a troop program unit.                                
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

                      Repeal of limitation on number of Junior Reserve Officers'   
           Training Corps units (sec. 537)                                         
       The Senate bill contained a provision (sec. 532) that would repeal  
   the limitation on the number of Junior Reserve Officers Training Corps  
   units.                                                                  
    The House amendment contained an identical provision (sec. 538).       

    The conference agreement includes this provision.                      

                      Modification of nurse officer candidate accession program    
           restriction on students attending educational institutions with Senior  
           Reserve Officers' Training programs (sec. 538)                          
       The House amendment contained a provision (sec. 537) that would     
   remove the restriction on nurse officer candidates receiving financial  
   assistance while training to be nurses at institutions with Reserve     
   Officer Training Corps programs.                                        
    The Senate bill contained a similar provision (sec. 620).              

    The Senate recedes.                                                    

           Reserve health professionals stipend program expansion (sec. 539)       

       The House amendment contained a provision (sec. 539) that would     
   expand the stipend program for reserve health professionals by          
   authorizing medical and dental school students to receive stipends and  
   by authorizing continuing compensation for medical and dental school    
   graduates participating in residency programs involving critical wartime
   specialties.                                                            
    The Senate bill contained a similar provision (sec. 537).              

    The Senate recedes with a clarifying amendment.                        

                      Housing allowance for the chaplain for the Corps of Cadets at
           the United States Military Academy (sec. 540)                           
       The House amendment contained a provision (sec. 540) that would     
   authorize a housing allowance for the chaplain for the Corps of Cadets  
   at the United States Military Academy.                                  
    The Senate bill contained a similar provision (sec. 1121).             

    The Senate recedes with a clarifying amendment.                        

                        SUBTITLE E--RECRUITING AND ACCESSION PROGRAMS             

           18-month enlistment pilot program (sec. 541)                            

       The House amendment contained a provision (sec. 589) that would     
   authorize, during the period beginning on October 1, 2003 and ending on 
   December 31, 2007, an 18 month enlistment pilot program to increase the 
   participation of prior service persons in the Selected Reserve and      
   increase the pool of participants in the Individual Ready Reserve.      
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would authorize members   
   who enlist under this program the option of reenlisting for continued   
   service on active duty.                                                 
           Improved benefits under the Army College First program (sec. 542)       

       The Senate bill contained a provision (sec. 531) that would modify  
   the Army College First program by extending the period of delayed entry 
   from two years to 30 months and increasing the monthly allowance to the 
   higher of $250 or the amount of subsistence allowance for members of the
   Senior Reserve Officers' Training Corps.                                
    The House amendment contained no similar provision.                    

       The House recedes with a clarifying amendment that would change the 
   amount of the subsistence allowance to be the same as the amount of the 
   subsistence allowance provided to members of the Senior Officers'       
   Training Corps with the corresponding number of years of participation. 
                      Correction and extension of certain Army recruiting pilot    
           program authorities (sec. 543)                                          
       The Senate bill contained a provision (sec. 582) that would extend  
   certain Army recruiting pilot programs and, for the pilot program       
   involving contract recruiting initiatives, require replacement of Army  
   Reserve recruiters and remove the requirement that contract recruiters  
   operate under the military recruiter chain of command.                  
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Military recruiter access to secondary school students (sec. 544)       

       The House amendment contained a provision (sec. 584) that would     
   specify that secondary schools shall provide directory information to   
   recruiters in the same way that such information is provided to         
   institutions of higher education when the student has indicated a desire
   or intent to enroll in that institution.                                
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require local       
   educational agencies receiving assistance under the Elementary and      
   Secondary Education Act of 1965 to provide to military recruiters the   
   same access to secondary school students as is provided generally to    
   postsecondary educational institutions or to prospective employers and, 
   upon request by military recruiters, access to secondary school student 
   names, addresses, and telephone listings unless the parent or student   
   has submitted a request that this information not be released without   
   prior written parental consent.                                         
                      Permanent authority for use of military recruiting funds for 
           certain expenses at Department of Defense recruiting functions (sec.    
           545)                                                                    
       The House amendment contained a provision (sec. 583) that would make
   permanent the authority for the secretaries of the military departments 
   to conduct social functions involving recruit candidates and recruits   
   awaiting active duty entry, and other persons known to influence the    
   career decisions of recruitment-age youth.                              
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Report on health and disability benefits for pre-accession   
           training and education programs (sec. 546)                              
       The Senate bill contained a provision (sec. 589) that would require 
   the Secretary of Defense to conduct a review of and report on the health
   and disability benefits available to recruits and officer candidates    
   engaged in training, education, or other types of programs while not yet
   on active duty and to cadets and midshipmen attending the service       
   academies.                                                              
    The House amendment contained a similar provision (sec. 592).          

       The House recedes with an amendment that would require that the     
   Secretary of Defense include in his report an analysis of health and    
   disability benefits administered by the Department of Veterans Affairs  
   and the Department of Labor available to persons injured in training or 
   education.                                                              

                 SUBTITLE F--DECORATIONS, AWARDS, AND POSTHUMOUS COMMISSIONS      

                      Authority for award of the Medal of Honor to Humbert R.      
           Versace, Jon E. Swanson, and Ben L. Salomon for valor (sec. 551)        
       The Senate bill contained a provision (sec. 551) that would waive   
   statutory time limits and authorize the President to award the Medal of 
   Honor to Humbert R. Versace for valor during the Vietnam War.           
    The House amendment contained a similar provision (sec. 541).          

       The House recedes with an amendment that would also waive statutory 
   time limits and authorize the President to award the Medal of Honor to  
   Jon E. Swanson for valor during the Vietnam War and Ben L. Salomon for  
   valor during World War II.                                              
                      Review regarding award of Medal of Honor to certain Jewish   
           American and Hispanic American war veterans (sec. 552)                  
       The House amendment contained a provision (sec. 542) that would     
   require the secretaries of the military departments to review the       
   service records of certain Jewish and Hispanic veterans from World War  
   II and later periods to determine if the award of the Medal of Honor is 
   appropriate and would waive the statutory time limitations for award    
   where the secretaries determine that service records support the award  
   of Medals of Honor.                                                     
       The Senate bill contained a similar provision requiring review of   
   the service records of Jewish American war veterans (sec. 552).         
    The Senate recedes with a clarifying amendment.                        

                      Authority to issue duplicate Medals of Honor and to replace  
           stolen military decorations (sec. 553)                                  
       The House amendment contained a provision (sec. 543) that would     
   authorize the service secretaries to issue one duplicate Medal of Honor 
   to recipients for display purposes, and a provision (sec. 544) that     
   would clarify that the service secretaries are authorized to replace    
   stolen decorations.                                                     
    The Senate bill contained a similar provision (sec. 553).              

    The Senate recedes with an amendment that would combine the provisions.

           Retroactive Medal of Honor special pension (sec. 554)                   

       The Senate bill contained a provision (sec. 556) that would entitle 
   Robert R. Ingram to retroactive payment of the Medal of Honor special   
   pension.                                                                
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Waiver of time limitations for award of certain decorations  
           to certain persons (sec. 555)                                           
       The Senate bill contained a provision (sec. 554) that would waive   
   the statutory time limits for award of military decorations to certain  
   individuals who have been recommended by the service secretaries for    
   these awards.                                                           
    The House amendment contained a similar provision (sec. 545).          

    The House recedes.                                                     

           Sense of Congress on issuance of certain medals (sec. 556)              

       The Senate bill contained a provision (sec. 555) that would express 
   the sense of the Senate that the Secretary of Defense should consider   
   authorizing the issuance of the Korea Defense Service Medal to persons  
   who served in the armed forces in or adjacent to the Republic of Korea  
   between July 28, 1954, and a date determined by the Secretary.          
       The House amendment contained a provision (sec. 546) that would     
   require the secretaries of the military departments to issue the Korea  
   Defense Service Medal.                                                  
       The House amendment also contained a provision (sec. 547) that would
   require the secretaries of the military departments to issue a Cold War 
   Service Medal to persons who served honorably on active duty in the     
   armed forces during the period beginning on September 2, 1945, and      
   ending on December 26, 1991.                                            
       The House amendment also contained a provision (sec. 548) that would
   authorize participants in Operation Frequent Wind to return the award of
   the Armed Forces Expeditionary Medal and to receive the Vietnam Service 
   Medal in its place.                                                     
       The House recedes with an amendment that would consolidate these    
   provisions to express the sense of the Congress that the Secretary of   
   Defense should consider authorizing the award of the Korea Defense      
   Service Medal, the Cold War Service Medal, and the Vietnam Service Medal
   to persons in the categories described above.                           
       The conferees believe that the decision of whether or not to award  
   campaign medals should be the prerogative of the Secretary of Defense.  

                      Sense of Congress on development of a more comprehensive,    
           uniform policy for the award of decorations to military and civilian    
           personnel of the Department of Defense (sec. 557)                       
       The House amendment contained a provision (sec. 549) that would     
   commend the decision by the Department of Defense to create a new award,
   a medal for the defense of freedom, to be awarded to Department of      
   Defense civilians who are killed or wounded as a result of hostile      
   action.                                                                 
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

                      Posthumous Army commission in the grade of captain in the    
           Chaplains Corps to Ella E. Gibson for service as chaplain of the First  
           Wisconsin Heavy Artillery Regiment during the Civil War (sec. 558)      
       The House amendment contained a provision (sec. 586) that would     
   authorize and request the President to posthumously appoint Ella E.     
   Gibson to the grade of captain for her service as a chaplain in the     
   First Wisconsin Heavy Artillery Regiment during the Civil War.          
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                               SUBTITLE G--FUNERAL HONORS DUTY                    

           Participation of military retirees in funeral honors details (sec. 561) 

       The Senate bill contained a provision (sec. 562) that would         
   authorize military retirees to serve as members of funeral honors       
   details.                                                                
    The House amendment contained a similar provision (sec. 651).          

    The House recedes with a clarifying amendment.                         

                      Funeral honors duty performed by reserve and guard members to
           be treated as inactive-duty training for certain purposes (sec. 562)    
       The House amendment contained a provision (sec. 517) that would     
   authorize reserve and National Guard members performing funeral honors  
   duty the same rights, benefits, and protections that would be provided  
   members performing inactive-duty training.                              
    The Senate bill contained a similar provision (sec. 563).              

    The Senate recedes.                                                    

                      Use of military leave for funeral honors duty by reserve     
           members and National Guardsmen (sec. 563)                               
       The House amendment contained a provision (sec. 519) that would     
   authorize federal employees who are members of the reserve components to
   use military leave to perform funeral honors duty.                      
    The Senate bill contained a similar provision (sec. 564).              

    The Senate recedes.                                                    

                      Authority to provide appropriate articles of clothing as a   
           civilian uniform for civilians participating in funeral honor details   
           (sec. 564)                                                              
       The House amendment contained a provision (sec. 593) that would     
   require the secretary of a military department to provide, upon a       
   showing of financial need, articles of clothing as a civilian uniform   
   for civilians participating in funeral honor details for veterans.      
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would authorize the       
   secretaries to provide the articles of clothing.                        
       The conferees are aware of the challenges the services face in      
   providing funeral honors details for all veterans' funerals where a     
   funeral honors detail is requested. The conferees encourage the services
   to work closely with and provide support to veterans organizations to   
   increase their participation in funeral honors details.                 
                       SUBTITLE H--MILITARY SPOUSES AND FAMILY MEMBERS            

                      Improved financial and other assistance to military spouses  
           for job training and education (sec. 571)                               
       The House amendment contained a provision (sec. 561) that would     
   require the Secretary of Defense to examine existing Department of      
   Defense and other federal, state and non-governmental programs with the 
   objective of improving retention of military personnel by increasing the
   employability of military spouses and helping those spouses gain access 
   to financial and other assistance for training and education.           
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Persons authorized to be included in surveys of military     
           families regarding federal programs (sec. 572)                          
       The Senate bill contained a provision (sec. 581) that would         
   authorize the Secretary of Defense to add family members of retirees and
   surviving spouses to those who may be surveyed to determine the         
   effectiveness of federal programs relating to military families and the 
   need for new programs.                                                  
    The House amendment contained a similar provision (sec. 562).          

    The House recedes with a clarifying amendment.                         

                      Clarification of treatment of classified information         
           concerning persons in a missing status (sec. 573)                       
       The House amendment contained a provision (sec. 563) that would     
   amend section 1506 of title 10, United States Code, to require the      
   Secretary of Defense to maintain a separate file available for review by
   next-of-kin that would provide notice of the existence of classified    
   information which may pertain to one or more missing persons.           
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

                      Transportation to annual meeting of next-of-kin of persons   
           unaccounted for from conflicts after World War II (sec. 574)            
       The House amendment contained a provision (sec. 564) that would     
   authorize the Secretary of Defense to provide transportation for the    
   next-of-kin of persons who are unaccounted for from the Korean War, the 
   Cold War, the Vietnam War, and the Persian Gulf Conflict to an annual   
   meeting concerning ongoing efforts to resolve the fate of their missing 
   family member.                                                          
    The Senate bill contained a similar provision (sec. 588).              

    The Senate recedes with a clarifying amendment.                        

                      Amendments to charter of Defense Task Force on Domestic      
           Violence (sec. 575)                                                     
       The House amendment contained a provision (sec. 565) that would     
   extend the original three-year authorization of the Defense Task Force  
   on Domestic Violence from October, 2002, to April 24, 2003 and authorize
   reimbursement to be paid to task force members who are not Department of
   Defense or federal civilian employees.                                  
    The Senate bill contained a similar provision (sec. 587).              

    The Senate recedes.                                                    

                  SUBTITLE I--MILITARY JUSTICE AND LEGAL ASSISTANCE MATTERS       

                      Blood alcohol content limit for the offense under the Uniform
           Code of Military Justice of drunken operation of a vehicle, aircraft, or
           vessel (sec. 581)                                                       
       The Senate bill contained a provision (sec. 583) that would amend   
   Article 111 of the Uniform Code of Military Justice (10 U.S.C. 911) to  
   lower the blood alcohol concentration necessary to establish drunken    
   operation of a motor vehicle, aircraft, or vessel from 0.1 to 0.08 grams
   or more of alcohol per 100 milliliters of blood or 0.08 per 210 liters  
   of breath.                                                              
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would establish the blood  
   alcohol content limit as the limit under the law of the state in which  
   the conduct occurred. Where the military installation is in more than   
   one state, the Secretary would select the blood alcohol limit of one of 
   the states if the states have different limits.                         
                      Requirement that courts-martial consist of not less than 12  
           members in capital cases (sec. 582)                                     
       The House amendment contained a provision (sec. 571) that would     
   amend chapter 47 of title 10, United States Code, to increase the       
   minimum number of required court-martial members to 12 in cases in which
   the death penalty may be adjudged as a sentence.                        
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would make this provision 
   effective for offenses committed after December 31, 2002.               
       The conferees understand that a similar proposal is currently being 
   reviewed by the Joint Service Committee on Military Justice. The        
   conferees expect the Secretary of Defense to provide any comments the   
   Secretary may have on such a proposal to the Committees on Armed        
   Services of the Senate and the House of Representatives no later than   
   March 1, 2002.                                                          
                      Acceptance of voluntary legal assistance for the civil       
           affairs of members and former members of the uniformed services and     
           their dependents (sec. 583)                                             
       The Senate bill contained a provision (sec. 586) that would         
   authorize the service secretaries to accept voluntary legal services.   
   The recommended provision would treat a volunteer providing legal       
   services the same as an attorney on the legal staff within the          
   Department of Defense for defense of legal malpractice.                 
    The House amendment contained a similar provision (sec. 574).          


    The House recedes.                                                     

                                  SUBTITLE J--OTHER MATTERS                       

                      Congressional review period for change in ground combat      
           exclusion policy (sec. 591)                                             
       The House amendment contained a provision (sec. 591) that would     
   change to 60 days of continuous session of Congress the congressional   
   notification period required of the Secretary of Defense before         
   implementing revised policies concerning the assignment of women to     
   ground combat units or positions.                                       
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would change the          
   notification period to 30 days of continuous session of Congress.       
           Per diem allowance for lengthy or numerous deployments (sec. 592)       

       The House amendment contained a provision (sec. 590) that would     
   expand the scope of the report by the Secretary of Defense on the       
   management of individual member deployments and would require that      
   high-deployment per diem be paid from operations and maintenance        
   accounts.                                                               
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

       The conferees note that the Secretary of Defense, using the         
   authority under section 991(d) of title 10, United States Code, recently
   suspended the requirement for general or flag officers to manage the    
   deployment of certain members and the accumulation of deployment days by
   individual members. This suspension was justified, and, by delaying the 
   actual payment of high-deployment per diem to individual members,       
   provides additional time for the services to analyze its impact on      
   personnel and assignment policies. To ensure a smooth transition upon   
   termination of this suspension, the conferees urge the Secretary of     
   Defense to afford the services sufficient time to initiate any necessary
   policy changes to optimize the efficient deployment of military         
   personnel.                                                              
       The conferees are pleased that effective tracking systems for       
   individual tempo of operations are being developed in all the services  
   and that a robust dialogue within the Department of Defense about the   
   policy, based on facts, is in progress. The Commandant of the Marine    
   Corps and the Chief of Naval Operations, in particular, have expressed  
   concern about potential adverse impact on sailors and Marines who       
   volunteer for extended sea duty and operational deployments. The        
   Secretary's timely report on the administration of section 991 of title 
   10, United States Code, due on March 31, 2002, will be a key factor in  
   determining the future course of the management of deployments of       
   service members.                                                        
           Clarification of disability severance pay computation (sec. 593)        

       The House amendment contained a provision (sec. 507) that would     
   authorize disability severance pay to be computed based on the grade to 
   which a member would be promoted regardless of the purpose of the       
   physical examination that identifies the disqualifying physical         
   disability.                                                             
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Transportation or storage of privately owned vehicles on     
           change of permanent station (sec. 594)                                  
       The Senate bill contained a provision (sec. 638) that would         
   authorize advance payment of vehicle storage costs in commercial        
   facilities and payment for shipping privately owned vehicles between    
   permanent duty stations in the continental United States when it is more
   advantageous and cost effective for the government.                     
    The House amendment contained similar provisions (sec. 581 and 582).   

    The House recedes with a clarifying amendment.                         

                      Repeal of requirement for final Comptroller General report   
           relating to Army end strength allocations (sec. 595)                    
       The House amendment contained a provision (sec. 585) that would     
   repeal the requirement for the final report by the Comptroller General  
   of the United States on the Total Army Analysis process.                
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Continued Department of Defense administration of National   
           Guard Challenge Program and Department of Defense STARBASE Program (sec.
           596)                                                                    
       The House amendment contained a provision (sec. 587) that, effective
   October 1, 2002, would eliminate the $62.5 million statutory limit on   
   Department of Defense spending for the National Guard Youth Challenge   
   Program, and revise the Department of Defense cost share for each       
   state's program from 60 percent to 75 percent.                          
       The Senate bill contained a provision (sec. 1061) that would require
   the Secretary of Defense to conduct the National Guard Challenge Program
   and the STARBASE Program.                                               
       The House recedes with an amendment that would eliminate the $62.5  
   million statutory limit on Department of Defense spending for the       
   National Guard Youth Challenge Program, and provide that the Secretary  
   of Defense would remain the executive agent to carry out the National   
   Guard Challenge Program and the STARBASE Program regardless of the      
   source of funds for the programs or any transfer of jurisdiction over   
   the programs within the Executive Branch.                               
       The conferees believe that both the Challenge and STARBASE programs 
   are being effectively administered by the Department of Defense, and do 
   not mean to suggest by the recommended amendments that either program   
   should be transferred from the DOD to another department of the         
   Executive Branch. Furthermore, the conferees believe that to effect such
   a transfer would require amendments to current law. If such a transfer  
   were to be proposed and subsequently approved by Congress, the conferees
   believe that the continuing involvement of the Secretary of Defense     
   would be essential to the long-term effectiveness of both programs. The 
   conferees intend to ensure that the Department of Defense remains       
   closely involved in the conduct of both the STARBASE and Challenge      
   programs.                                                               
                      Report on Defense Science Board recommendation on original   
           appointments in regular grades for academy graduates and certain other  
           new officers (sec. 597)                                                 
       The House amendment contained a provision (sec. 502) that would     
   require that graduates of the service academies, Reserve Officer        
   Training Corps distinguished graduates, and distinguished graduates of  
   other officer commissioning programs, such as officer candidate schools,
   be given an initial appointment as an officer in the Regular Army, Navy,
   Marine Corps and Air Force, as long as they meet the criteria for such  
   appointment.                                                            
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require the         
   Secretary of Defense to submit, within six months of enactment of this  
   Act, a report to the Committees on Armed Services of the Senate and the 
   House of Representatives on the legislative and policy changes required 
   to implement the recommendation of the Defense Science Board that all   
   officers be given initial regular commissions.                          
                      Sense of Congress regarding the selection of officers for    
           recommendation for appointment as Commander, United States              
           Transportation Command (sec. 598)                                       
       The Senate bill contained a provision (sec. 903) that would have    
   expressed the sense of Congress that the Secretary of Defense should    
   give careful consideration to recommending an officer from the Army or  
   Marine Corps to serve as Commander, U.S. Transportation Command.        
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would express the sense of 
   Congress that, when deciding on the next officer to be recommended for  
   appointment as Commander, U.S. Transportation Command, the Secretary of 
   Defense should not rely upon one service which has traditionally        
   provided officers to fill that position, but should select for such     
   recommendation the best qualified officer of the Army, Navy, Air Force, 
   or Marine Corps.                                                        
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Acceptance of fellowships, scholarships, or grants for legal 
           education of officers participating in the Funded Legal Education       
           Program                                                                 
       The Senate bill contained a provision (sec. 533) that would         
   authorize an officer attending law school under the Funded Legal        
   Education Program to accept a scholarship from the law school or other  
   entity.                                                                 
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

                      Codification of requirement for regulations for delivery of  
           military personnel to civil authorities when charged with certain       
           offenses                                                                
       The House amendment contained a provision (sec. 573) that would     
   codify the requirement for the Secretary of Defense to prescribe        
   regulations to provide for the delivery of a member accused by a civil  
   authority of parental kidnapping or a similar offense to the appropriate
   civil authority for trial.                                              
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

           Expanded application of reserve special selection board                 

       The House amendment contained a provision (sec. 512) that would     
   authorize the reserve special selection boards to consider officers from
   below the promotion zone who were either not considered for promotion   
   because of administrative error, or were considered but not selected for
   promotion because of material error.                                    
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     


                      Members of the National Guard performing funeral honors duty 
           while in non-federal status                                             
       The House amendment contained a provision (sec. 518) that would     
   specify that National Guard members when serving on funeral honors      
   details shall be considered members of the armed forces for the purpose 
   of meeting requirements for the minimum number of service members and   
   service affiliation on a funeral honors detail.                         
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

       The conferees note that section 1491(b)(2) of title 10, United      
   States Code, requires that a funeral honors detail for a deceased       
   veteran include at least two members of the armed forces, at least one  
   of whom is a member of the veteran's armed force. Members of the Army   
   National Guard of the United States and the Air National Guard of the   
   United States are members of the armed forces even when performing in a 
   state status. They can participate in a funeral honors detail in either 
   a state or federal status, and should be considered as one of the       
   required members of the armed forces.                                   
                      One-year extension of expiration date for certain force      
           management authorities                                                  
       The House amendment contained a provision (sec. 509) that would     
   extend through December 31, 2002, certain force drawdown transition     
   authorities.                                                            
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                      Preparation for, participation in, and conduct of athletic   
           competitions by the National Guard and members of the National Guard    
       The House amendment contained a provision (sec. 520) that would     
   authorize members and units of the National Guard to conduct and compete
   in qualifying athletic competitions and small arms competitions, and to 
   use appropriated funds and National Guard facilities and equipment in   
   connection with the conduct of or participation in these competitions.  
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

           Right of convicted accused to request sentencing by military judge      

       The House amendment contained a provision (sec. 572) that would     
   permit an accused who had been convicted by a court-martial with service
   members to elect to have the sentencing phase of the trial conducted by 
   the military judge sitting alone, rather than by the members.           
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

       The conferees are aware that this issue has been submitted to the   
   Joint Service Committee on Military Justice for review. The conferees   
   direct that the Secretary of Defense report the results of this review  
   to the Committees on Armed Services of the Senate and the House of      
   Representatives no later than March 1, 2002.                            
                    TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS           

                                 ITEMS OF SPECIAL INTEREST                        

           Personal and family financial management programs                       

       The conferees are concerned that the secretaries of the military    
   departments are not providing service members sufficient training on the
   management of personal and family finances, including matters relating  
   to the purchase and financing of automobiles and the use of             
   payday-lender services. The conferees are also concerned that when      
   personal financial problems do occur, the secretaries are not providing 
   adequate supervision to ensure that service members and their families  
   regain financial security.                                              
       Accordingly, the conferees direct the secretaries of the military   
   departments to conduct a comprehensive examination of the personal      
   financial management programs operated within their respective          
   departments. The examination shall include, at a minimum: an assessment 
   of the severity and type of personal financial challenges confronting   
   service members; the magnitude of personal debt accumulated by service  
   members; the adequacy of training and assistance programs available to  
   service members; and the merits of other programs recommended to meet   
   the needs of service members.                                           
       The conferees further direct the Secretary of Defense to consolidate
   and review the examinations conducted by the secretaries of the military
   departments, identify the best practices from each examination, and     
   assess the need to improve and standardize the programs operated by the 
   secretaries of the military departments. The conferees direct the       
   Secretary of Defense to report the findings of his review to the        
   Committees on Armed Services of the Senate and the House of             
   Representatives by March 31, 2002.                                      
                               LEGISLATIVE PROVISIONS ADOPTED                     

                               SUBTITLE A--PAY AND ALLOWANCES                     

           Increase in basic pay for fiscal year 2002 (sec. 601)                   

       The Senate bill contained a provision (sec. 601) that would provide 
   a targeted pay raise ranging from five percent to 10 percent, effective 
   January 1, 2002.                                                        

    The House amendment contained an identical provision (sec. 601).       

    The conference agreement includes this provision.                      

                      Basic pay rate for certain reserve commissioned officers with
           prior service as an enlisted member or warrant officer (sec. 602)       
       The Senate bill contained a provision (sec. 602) that would         
   authorize payment at the O 1E, O 2E or O 3E rate to reserve component   
   commissioned officers in the pay grade of O 1, O 2, or O 3, who are not 
   on active duty, but have accumulated the equivalent of four years of    
   active duty as a warrant officer or enlisted member.                    
    The House amendment contained a similar provision (sec. 602).          

       The House recedes with an amendment that would make this provision  
   effective on the date of enactment of this Act.                         
                      Reserve component compensation for distributed learning      
           activities performed as inactive-duty training (sec. 603)               
       The Senate bill contained a provision (sec. 603) that would         
   authorize compensation for members in grades E 6 and below for          
   distributed learning activities performed as inactive-duty training.    
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would authorize            
   compensation for members of the Selected Reserve upon successful        
   completion of a course of instruction using electronic-based distributed
   learning technologies to accomplish training requirements related to    
   unit readiness or mobilization.                                         
           Subsistence allowances (sec. 604)                                       

       The Senate bill contained provisions (sec. 604 and 606) that would  
   define the baseline for determining future rates for basic allowance for
   subsistence and clarify that only members with dependents are entitled  
   to payment of the supplemental subsistence allowance.                   
    The House amendment contained a similar provision (sec. 603).          

    The House recedes with a clarifying amendment.                         

                      Eligibility for temporary housing allowance while in travel  
           or leave status between permanent duty stations (sec. 605)              
       The House amendment contained a provision (sec. 604) that would     
   require the secretaries of the military departments to pay members of   
   the uniformed services in pay grades below E 4 (with less than 4 years  
   of service) a temporary housing allowance while on travel or leave      
   status between permanent duty stations.                                 
    The Senate bill contained a similar provision (sec. 631).              

    The Senate recedes with a clarifying amendment.                        

           Uniform allowance for officers (sec. 606)                               

       The House amendment contained a provision (sec. 605) that would     
   clarify that an additional allowance of $200 for uniforms may be paid to
   an officer so long as any previous allowance received did not exceed    
   $400.                                                                   
    The Senate bill contained a similar provision (sec. 607).              

    The Senate recedes.                                                    

                      Family separation allowance for members electing             
           unaccompanied tour by reason of health limitations of dependents (sec.  
           607)                                                                    
       The House amendment contained a provision (sec. 606) that would     
   require the secretaries of the military departments to pay family       
   separation allowance to members of the uniformed services who elect to  
   serve unaccompanied tours of duty because the movement of dependents of 
   the member to the permanent duty station is denied for certified medical
   reasons.                                                                
    The Senate bill contained a similar provision (sec. 636).              

    The Senate recedes with a clarifying amendment.                        

                       SUBTITLE B--BONUSES AND SPECIAL INCENTIVE PAYS             

                      One-year extension of certain bonus and special pay          
           authorities for reserve forces (sec. 611)                               
       The House amendment contained a provision (sec. 611) that would     
   extend, until December 31, 2002, the authority to pay the special pay   
   for critically short wartime health care specialists in the Selected    
   Reserve, the Selected Reserve re-enlistment bonus, the Selected Reserve 
   enlistment bonus, the special pay for enlisted members assigned to      
   certain high priority units in the Selected Reserve, the Selected       
   Reserve affiliation bonus, the Ready Reserve enlistment and             
   re-enlistment bonus, and the prior service enlistment bonus, and would  
   extend, until January 1, 2003, the authority for the repayment of       
   education loans for certain health professionals who serve in the       
   Selected Reserve.                                                       
    The Senate bill contained a similar provision (sec. 611).              

    The Senate recedes.                                                    

                      One-year extension of certain bonus and special pay          
           authorities for nurse officer candidates, registered nurses, and nurse  
           anesthetists (sec. 612)                                                 

       The House amendment contained a provision (sec. 612) that would     
   extend the authority for the nurse officer candidate accession program, 
   the accession bonus for registered nurses, and the incentive special pay
   for nurse anesthetists until December 31, 2002.                         
    The Senate bill contained a similar provision (sec. 612).              

    The Senate recedes.                                                    

           One-year extension of special pay and bonus authorities (sec. 613 614)  

       The Senate bill contained two provisions that would extend until    
   December 31, 2002 certain bonus and special pay authorities. The first  
   provision (sec. 613) would extend the authority for special pay for     
   nuclear-qualified officers extending their period of active service, the
   nuclear career accession bonus, and the nuclear career annual incentive 
   bonus. The second provision (sec. 614) would extend the authority to pay
   the aviation officer retention bonus, the reenlistment bonus for active 
   members, the bonus for enlistment for two or more years, and the        
   retention bonus for members with critical skills.                       
    The House amendment contained a similar provision (sec. 613).          

    The House recedes with a clarifying amendment.                         

                      Hazardous duty pay for members of maritime visit, board,     
           search, and seizure teams (sec. 615)                                    
       The House amendment contained a provision (sec. 615) that would     
   authorize members of the uniformed services to be paid hazardous duty   
   incentive pay for duties involving regular participation as a member of 
   a team conducting visit, board, search, and seizure aboard vessels in   
   support of maritime interdiction operations.                            
    The Senate bill contained a similar provision (sec. 615).              

    The Senate recedes with a clarifying amendment.                        

                      Eligibility for certain career continuation bonuses for early
           commitment to remain on active duty (sec. 616)                          
       The Senate bill contained a provision (sec. 621) that would extend  
   authority for payment of aviation career pay and surface warfare        
   continuation pay to eligible officers who, when within one year of      
   completing a service commitment, sign a written agreement to remain on  
   active duty.                                                            
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Secretarial discretion in prescribing submarine duty         
           incentive pay rates (sec. 617)                                          
       The House amendment contained a provision (sec. 617) that would     
   authorize the Secretary of the Navy to prescribe the amount of submarine
   duty incentive pay by grade and years of service within a maximum of    
   $1,000 per month.                                                       
    The Senate bill contained a similar provision (sec. 616).              

    The Senate recedes with a clarifying amendment.                        

                      Conforming accession bonus for dental officers authority with
           authorities for other special pay and bonuses (sec. 618)                
       The House amendment contained a provision (sec. 614) that would     
   extend the authority to pay accession bonuses to dental officers until  
   December 31, 2002.                                                      
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Modification of eligibility requirements for Individual Ready
           Reserve bonus for reenlistment, enlistment, or extension of enlistment  
           (sec. 619)                                                              
       The Senate bill contained a provision (sec. 618) that would modify  
   existing provisions to authorize payment of a bonus to individuals who  
   possess a skill that is designated as critically short to meet wartime  
   requirements and who agree to enlist, reenlist or voluntarily extend an 
   enlistment in the Individual Ready Reserve.                             
    The House amendment contained a similar provision (sec. 618).          

    The House recedes with a clarifying amendment.                         

           Installment payment authority for 15-year career status bonus (sec. 620)

       The House amendment contained a provision (sec. 619) that would     
   authorize members of the uniformed services to elect to be paid the     
   15-year career status bonus in a lump sum or in annual installments.    
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

           Accession bonus for new officers in critical skills (sec. 621)          


       The House amendment contained a provision (sec. 620) that would     
   authorize the service secretaries to pay an accession bonus of up to    
   $100,000 to officer candidates who enter into written service agreements
   to accept commissions as officers.                                      
    The Senate bill contained a similar provision (sec. 619).              

       The Senate recedes with a clarifying amendment that would limit the 
   maximum amount of the bonus to $60,000.                                 
                      Education savings plan to encourage reenlistments and        
           extensions of service in critical specialities (sec. 622)               
       The Senate bill contained a provision (sec. 661) that would         
   authorize the Secretary of Defense to purchase U.S. savings bonds with a
   face value of up to $30,000 for military personnel who have completed   
   specified periods of active duty and enter into a commitment to perform 
   at least six additional years of active duty service in a specialty     
   designated as critical by the Secretary.                                
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Continuation of payment of special and incentive pay at      
           unreduced rates during stop loss periods (sec. 623)                     
       The conference agreement includes a provision that would authorize  
   the service secretaries to permit service members involuntarily retained
   on active duty under stop loss authority to continue to receive special 
   and incentive pays at unreduced rates.                                  
                      Retroactive authorization for imminent danger pay for service
           in connection with Operation Enduring Freedom (sec. 624)                
       The conference agreement includes a provision that would authorize  
   the Secretary of Defense to provide for retroactive payment of imminent 
   danger pay to service members who served in specified areas in          
   connection with Operation Enduring Freedom for duty performed between   
   September 19, 2001 and October 31, 2001.                                
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            

                      Minimum per diem rate for travel and transportation allowance
           for travel performed upon a change of permanent station and certain     
           other travel (sec. 631)                                                 
       The House amendment contained a provision (sec. 631) that would     
   equate per diem rates for military members for travel performed in      
   connection with a change of permanent station and per diem rates for    
   official travel within the continental United States of federal civilian
   employees and their dependents.                                         
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

                      Eligibility for payment of subsistence expenses associated   
           with occupancy of temporary lodging incident to reporting to first      
           permanent duty station (sec. 632)                                       
       The House amendment contained a provision (sec. 632) that would     
   authorize payment of subsistence expenses to officers making their first
   permanent change of station and would increase from $110 to $180 per day
   the maximum amount that may be paid to members of the uniformed services
   as reimbursement for temporary lodging and subsistence expenses incurred
   in the United States as a result of a permanent change of station.      
    The Senate bill contained a similar provision (sec. 632).              

    The Senate recedes with a clarifying amendment.                        

                      Reimbursement of members for mandatory pet quarantine fees   
           for household pets (sec. 633)                                           
       The House amendment contained a provision (sec. 634) that would     
   authorize an increase in the amount of reimbursement for pet quarantine 
   fees from $275 to $675 per change of station.                           
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would increase the amount 
   to $550 per change of station.                                          
                      Increased weight allowance for transportation of baggage and 
           household effects for junior enlisted members (sec. 634)                
       The House amendment contained a provision (sec. 633) that would     
   increase the maximum weight allowance for shipment of household effects 
   for enlisted military members in grades E 4 and below.                  
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

           Eligibility of additional members for dislocation allowance (sec. 635)  

       The Senate bill contained a provision (sec. 633) that would         
   authorize payment of a dislocation allowance to a member when the       
   member's dependents make an authorized move in connection with the      
   member's move to the first duty station. The provision would also       
   authorize payment of a single dislocation allowance to married service  
   members, where both husband and wife are members without dependents,    
   when both move to a new duty station and occupy government family       
   quarters.                                                               
    The House amendment contained similar provisions (sec. 635 and 636).   

    The House recedes with a clarifying amendment.                         

                      Partial dislocation allowance authorized for housing moves   
           ordered for government convenience (sec. 636)                           
       The House amendment contained a provision (sec. 637) that would     
   authorize the service secretaries to pay a $500 partial dislocation     
   allowance to members of the uniformed services who are ordered to occupy
   or vacate government family housing to permit privatization or          
   renovation, or for another reason unrelated to changes in permanent     
   station.                                                                
    The Senate bill contained a similar provision (sec. 634).              

       The Senate recedes with an amendment that would make this provision 
   effective for moves for which the order to move is issued on or after   
   the date of enactment of this Act.                                      
                      Allowances for travel performed in connection with members   
           taking authorized leave between consecutive overseas tours (sec. 637)   
       The House amendment contained a provision (sec. 638) that would     
   authorize the service secretaries to designate the locations to which   
   members of the uniformed services may travel at government expense while
   on leave between consecutive overseas tours.                            
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Travel and transportation allowances for family members to   
           attend burial of a deceased member of the uniformed services (sec. 638) 
       The Senate bill contained a provision (sec. 635) that would         
   authorize allowances for family members and others to attend burial     
   ceremonies of deceased members of the uniformed forces who die while on 
   active duty or inactive duty.                                           
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would grandfather the      
   benefit level authorized for surviving families of service members who  
   died during the Vietnam era.                                            
                      Funded student travel for foreign study under an education   
           program approved by a United States school (sec. 639)                   
       The Senate bill contained a provision (sec. 637) that would extend  
   the authority to pay funded student travel to certain dependents of     
   members who are stationed outside the continental United States.        
    The House amendment contained a similar provision (sec. 639).          

    The House recedes with a clarifying amendment.                         

                     SUBTITLE D--RETIREMENT AND SURVIVOR BENEFIT MATTERS          

                      Contingent authority for concurrent receipt of military      
           retired pay and veterans' disability compensation and enhancement of    
           special compensation authority (sec. 641)                               
       The House amendment contained a provision (sec. 641) that would     
   authorize members of the uniformed services who are qualified for       
   retirement to receive Department of Veterans Affairs disability         
   compensation without a reduction in retired pay if the President        
   proposes and the Congress enacts legislation that would offset the      
   ``PayGo''costs of this initiative.                                      
       The Senate bill contained a provision (sec. 651) that would         
   authorize retired members of the armed forces who have a                
   service-connected-disability to receive military retired pay            
   concurrently with veterans' disability compensation.                    
       The Senate recedes with an amendment that would: authorize payment  
   of special compensation for retirees with service-connected-disabilities
   rated at 60 percent in fiscal year 2002; increase the amount of special 
   compensation for retirees with disabilities rated at 80 percent or      
   higher in fiscal year 2003; and increase the amount of special          
   compensation for retirees with disabilities rated at 70 percent or      
   higher in fiscal year 2005.                                             
                      Survivor Benefit Plan annuities for surviving spouses of     
           members who die while on active duty and not eligible for retirement    
           (sec. 642)                                                              
       The Senate bill contained a provision (sec. 652) that would         
   authorize Survivor Benefit Plan (SPB) benefits for surviving spouses of 
   service members who are not eligible for retirement and who die in the  
   line of duty while on active duty.                                      
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

       The conferees are concerned about the current inconsistent practice 
   involving expedited approval of physical disability retirement when     
   death of a service member is imminent and the service member is unable  
   to elect SBP options. In many cases, the services authorize benefits    
   greater than those chosen by most retirees who elect to participate in  
   the Survivor Benefit Plan. The conferees direct the Secretary of Defense
   to issue regulations by July 1, 2002, governing imminent death          
   retirements.                                                            
                                  SUBTITLE E--OTHER MATTERS                       

                      Payment for unused leave in excess of 60 days accrued by     
           members of reserve components on active duty for one year or less (sec. 
           651)                                                                    
       The Senate bill contained a provision (sec. 608) that would         
   authorize payment for accrued leave in excess of the current limit of 60
   days to certain members of the reserve components.                      
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Additional authority to provide assistance for families of   
           members of the armed forces (sec. 652)                                  
       The Senate bill contained two provisions regarding assistance to    
   families of members of the armed forces. One provision (sec. 681) would 
   authorize the Secretary of Defense to provide assistance to families of 
   members of the armed forces serving on active duty during fiscal year   
   2002 in order to ensure that the children of such families obtain needed
   child care and youth services. Another provision (sec. 682) would       
   authorize the Secretary of Defense to provide family education and      
   support services to families of members of the armed services to the    
   same extent that these services were provided during the Persian Gulf   
   War.                                                                    
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would combine these        
   provisions.                                                             
       The conferees' intent is to ensure that the Secretary of Defense has
   authority to provide the types of family support services provided      
   during the Persian Gulf War.                                            
       The conferees recognize that families of deployed members may need  
   expanded family support services, such as crisis intervention, family   
   counseling, family support groups, respite care, and transportation     
   assistance. The conferees encourage the Secretary to expand family      
   support programs associated with military installations and to establish
   family support centers in other communities that have large populations 
   of families of deployed members. In overseas areas, the Secretary is    
   encouraged to take all reasonable precautions to ensure the safety of   
   children during transportation to and from Department of Defense        
   schools. The conferees also encourage the Secretary to accelerate the   
   completion and dissemination of the High Stress Parenting Materials     
   currently under development through an agreement with the Department of 
   Agriculture.                                                            
       The conferees are particularly concerned that families of National  
   Guard and Reserve members who are geographically separated from military
   installations have services comparable to those provided at active duty 
   installations. These services should be available at rates comparable to
   rates paid by families using military child care and youth programs.    
   Providing affordable child care and youth services to these families may
   require cooperative agreements between the military and other government
   or community-based organizations, as well as non-governmental           
   organizations.                                                          
                      Authorization of transitional compensation and commissary and
           exchange benefits for dependents of commissioned officers of the Public 
           Health Service and the National Oceanic and Atmospheric Administration  
           who are separated for dependent abuse (sec. 653)                        
       The Senate bill contained a provision (sec. 663) that would         
   authorize transitional benefits for the dependents of commissioned      
   officers of the Public Health Service and the National Oceanic and      
   Atmospheric Administration separated for dependent abuse.               
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Transfer of entitlement to educational assistance under      
           Montgomery GI Bill by members of the Armed Forces with critical military
           skills (sec. 654)                                                       
       The Senate bill contained a provision (sec. 539) that would         
   authorize the service secretaries to permit certain service members with
   critical military skills to transfer up to 18 months of unused basic    
   Montgomery GI Bill benefits to family members.                          
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Career sea pay                                                          

       The Senate bill contained a provision (sec. 617) that would ensure  
   receipt of career sea pay by all military members, regardless of rank,  
   pay grade, or accrued time in service, if they are assigned to          
   qualifying sea duty.                                                    
    The House amendment contained no similar provision.                    


    The Senate recedes.                                                    

       The conferees are pleased that the Navy has recently approved new   
   enhanced sea pay rates and prescribed career sea pay to all sailors on  
   sea duty, including those in pay grades E 1, E 2, and E 3. The conferees
   expect advance notice of any change in policy that would exclude members
   of any pay grade from receiving career sea pay who are otherwise        
   eligible.                                                               
                      Equal treatment of reservists performing inactive-duty       
           training for receipt of aviation career incentive pay                   
       The House amendment contained a provision (sec. 616) that would     
   entitle qualified reserve aviators to be paid the full amount of monthly
   Aviation Career Incentive Pay in the same amount as paid to active duty 
   aviators with the same number of years of aviation service.             
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

           Increase in basic allowance for housing in the United States            

       The Senate bill contained a provision (sec. 605) that would         
   accelerate the current five-year plan to eliminate out-of-pocket housing
   expenses by two years, increasing the Basic Allowance for Housing so    
   that, after September 30, 2002, it would not be less than the median    
   cost of adequate housing for members in that grade and dependency status
   in that area.                                                           
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees believe that service members should not be required to
   pay out-of-pocket a percentage of their housing costs when they are     
   unable to live in government quarters. The conferees support the plan to
   eliminate these out-of-pocket expenses and strongly encourage the       
   Secretary of Defense to accelerate this plan.                           
                             TITLE VII--HEALTH CARE PROVISIONS                    

                               LEGISLATIVE PROVISIONS ADOPTED                     

                          SUBTITLE A--TRICARE PROGRAM IMPROVEMENTS                

           Sub-acute and long-term care program reform (sec. 701)                  

       The House amendment contained a provision (sec. 704) that would     
   reform the Department of Defense Program for care provided in skilled   
   nursing facilities or at home.                                          
    The Senate bill contained several similar provisions (sec. 701 705).   

       The Senate recedes with an amendment that would increase the limit  
   of the government's share of the cost for certain covered benefits from 
   $1000 to $2500 and require the use of public facilities in some         
   circumstances.                                                          
           Prosthetics and hearing aids (sec. 702)                                 

       The Senate bill contained a provision (sec. 706) that would         
   authorize providing prosthetics and hearing aids to military dependents.
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Durable medical equipment (sec. 703)                                    

       The Senate bill contained a provision (sec. 707) that would expand  
   the kinds of durable medical equipment that can be provided to military 
   dependents.                                                             
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Rehabilitative therapy (sec. 704)                                       

       The Senate bill contained a provision (sec. 708) that would         
   authorize providing rehabilitative therapy to military dependents to    
   improve, restore, or maintain function, or to minimize or prevent       
   deterioration of function, of a patient when prescribed by a physician. 
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Report on mental health benefits (sec. 705)                             


       The Senate bill contained a provision (sec. 709) that would require 
   the Secretary of Defense to conduct a study to determine the adequacy of
   the scope and availability of outpatient mental health benefits provided
   for members of the armed forces and covered beneficiaries under the     
   TRICARE program.                                                        
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Clarification of eligibility for reimbursement of travel     
           expenses of adult accompanying patient in travel for specialty care     
           (sec. 706)                                                              
       The Senate bill contained a provision (sec. 712) that would clarify 
   the eligibility for coverage of travel expenses by a parent, guardian or
   family member while accompanying a covered beneficiary referred for     
   specialty care to be received more than 100 miles from the location of  
   primary care.                                                           
    The House amendment contained a similar provision (sec. 705).          

    The House recedes.                                                     

                      TRICARE program limitations on payment rates for             
           institutional health care providers and on balance billing by           
           institutional and noninstitutional health care providers (sec. 707)     
       The Senate bill contained a provision (sec. 713) that would         
   reinforce and expedite reform of TRICARE payment methods. The           
   recommended provision would expedite adoption of Medicare's prospective 
   payments rates for nursing home care, outpatient services, and durable  
   medical equipment.                                                      
    The House amendment contained a similar provision (sec. 701).          

       The House recedes with an amendment that would make the effective   
   date 90 days after the date of enactment.                               
           Improvements in administration of the TRICARE program (sec. 708)        

       The House amendment contained a provision (sec. 703) that would     
   authorize the Secretary of Defense to enter into new contracts for      
   support of delivery of health care under TRICARE by providing           
   flexibility in the choice of contract vehicle and to reduce the         
   nine-month contract start-up time for certain managed care support      
   contractors.                                                            
    The Senate bill contained no similar provision.                        

       The Senate recedes with a clarifying amendment that would authorize 
   the flexibility in the choice for contract vehicle during the one-year  
   period after the date of enactment of this Act.                         
       The current legislative restrictions pertaining to health care      
   contracting were the result of considerable review and oversight of the 
   Defense Health Program by Congress. This provision will provide the     
   Department of Defense the ability to employ the best contracting        
   practices to improve TRICARE contracts. The conferees wish to allow for 
   review of any proposed changes and careful evaluation prior to permanent
   modification of legislation pertaining to the program, given the        
   significant impact on beneficiaries and potential cost implications. It 
   is the conferees' intent that any new contacting practices employed by  
   the Department under this provision ensure a smooth transition for      
   beneficiaries and strengthen the integration of health care delivery.   
                               SUBTITLE B--SENIOR HEALTH CARE                     

                      Clarifications and improvements regarding the Department of  
           Defense Medicare-Eligible Retiree Health Care Fund (sec. 711)           
       The House amendment contained a provision (sec. 715) that would:    
   authorize all uniformed services to participate in TRICARE for Life;    
   clarify that funding for the accrual fund must come from funds available
   for the health care programs of the participating uniformed services;   
   clarify that Military Treatment Facilities may receive payments from the
   accrual fund; and limit the Department of Defense's annual cost         
   contribution to the accrual fund to an amount not to exceed expected    
   payments from the fund in a given year.                                 
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would authorize all       
   uniformed services to participate in TRICARE for Life, clarify that     
   funding for the accrual fund must come from funds available for the     
   health care programs of the participating uniformed services, and       
   clarify that Military Treatment Facilities may receive payments from the
   accrual fund.                                                           
                               SUBTITLE C--STUDIES AND REPORTS                    

                      Comptroller General study of health care coverage of members 
           of the reserve components of the Armed Forces and the National Guard    
           (sec. 721)                                                              
       The Senate bill contained a provision (sec. 715) that would require 
   the Comptroller General of the United States to conduct a study of the  
   health care coverage of members of the Selected Reserve and to report on
   cost effective options for providing health care benefits to members of 
   the Selected Reserve and their families.                                

    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Comptroller General study of adequacy and quality of health  
           care provided to women under the Defense Health Program (sec. 722)      
       The Senate bill contained a provision (sec. 716) that would require 
   the Comptroller General of the United States to conduct a study of the  
   adequacy and quality of the health care provided to women under the     
   Defense Health Program.                                                 
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would change the date to   
   May 1, 2002, by which the Comptroller General must report the results of
   the study to Congress.                                                  
           Repeal of obsolete report requirement (sec. 723)                        

       The House amendment contained a provision (sec. 714) that would     
   repeal a reporting requirement in the National Defense Authorization Act
   for Fiscal Year 2000 (Public Law 106 65; 10 U.S.C. 1074g note) by       
   striking subsection 701(d).                                             
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Comptroller General report on requirement to provide         
           screenings, physical examinations, and other care for certain members   
           (sec. 724)                                                              
       The Senate bill contained a provision (sec. 711) that would repeal  
   the requirement to provide certain medical and dental services to       
   members of the Selected Reserve of the Army scheduled for deployment    
   within 75 days after mobilization.                                      
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would require the          
   Comptroller General to report on the advisability, need, and cost       
   effectiveness of providing these services.                              
                                  SUBTITLE D--OTHER MATTERS                       

                      Prohibition against requiring military retirees to receive   
           health care solely through the Department of Defense (sec. 731)         
       The House amendment contained a provision (sec. 711) that would     
   prohibit the Secretary of Defense from implementing a policy of forced  
   choice enrollment by military retirees who are eligible for care in the 
   health care facilities and programs of both the Department of Defense   
   and the Department of Veterans Affairs.                                 
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

           Fees for trauma and other medical care provided to civilians (sec. 732) 

       The House amendment contained a provision (sec. 712) that would     
   direct the Secretary of Defense to conduct a pilot program under which  
   the Brooke Army Medical Center and the Wilford Hall Air Force Medical   
   Center in San Antonio, Texas, may charge civilians, who are not covered 
   TRICARE beneficiaries, fees representing the actual costs of trauma and 
   other medical care provided.                                            
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require the         
   Secretary of Defense to implement procedures throughout the military    
   health care system to charge civilians who are not covered TRICARE      
   beneficiaries, or their insurers, fees representing the costs of trauma 
   and other medical care provided to those civilians.                     
           Enhancement of medical product development (sec. 733)                   

       The House amendment contained a provision (sec. 713) that would     
   authorize the Secretary of Defense to waive the prohibition against the 
   use of human subjects in research in order to advance research into the 
   treatment of combat casualties.                                         
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require the research
   project to directly benefit the subject and to comply with all other    
   applicable laws and regulations.                                        
       The conferees intend that the Secretary of Defense would be         
   authorized to waive the requirement for informed consent for research on
   human subjects only when: (1) the subjects are in a life threatening    
   situation; (2) obtaining informed consent is not feasible; and (3) the  
   research holds out the prospect of direct benefit to the health of the  
   subject. Furthermore, the conferees intend that the research project and
   the waiver of informed consent must comply with all other statutes and  
   implementing regulations governing human subjects' protection.          
                      Pilot program providing for Department of Veterans Affairs   
           support in the performance of separation physical examinations (sec.    
           734)                                                                    
       The Senate bill contained a provision (sec. 717) that would         
   authorize the Secretary of Defense and the Secretary of Veterans Affairs
   to carry out a pilot program in which the Veterans Health Administration
   would conduct physical examinations of members separating from the      
   uniformed services.                                                     
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

       The conferees are aware that the Department of Veterans Affairs is  
   currently conducting a congressionally mandated pilot program for the   
   performance of the physical examinations required in connection with the
   separation of members of the uniformed services, as well as other       
   disability evaluations.                                                 
       Several software tools have been developed and implemented and      
   incorporated into the ongoing pilot program. These software tools have  
   resulted in a more streamlined, efficient and accurate disability       
   evaluation process. The software creates the information needed by the  
   Department of Defense for the separating service member and concurrently
   provides the Department of Veterans Affairs with the information        
   required to determine compensation benefits. This eliminates the need   
   for a second exam and standardizes a ``one exam'' process while         
   automatically providing the specific information required by the        
   Department of Defense and the Department of Veterans Affairs on their   
   own unique forms.                                                       
       The conferees direct that, in order to insure consistency in both   
   pilot programs, the Department of Veterans Affairs conduct the          
   separation exams for the Department of Defense utilizing the software   
   developed and implemented in the ongoing pilot program.                 
                      Modification of prohibition on requirement of nonavailability
           statement or preauthorization (sec. 735)                                
       The Senate bill contained a provision (sec. 718) that would         
   authorize the Secretary of Defense to waive the prohibition against     
   requiring statements of nonavailability for authorized health care      
   services, other than mental health services, if certain conditions are  
   met and both beneficiary and congressional notification occurs, with a  
   waiting period prior to implementation. The nonavailability requirement 
   applies to those beneficiaries receiving care under TRICARE Standard.   
    The House amendment contained a similar provision (sec. 702).          

       The House recedes with a clarifying amendment that would preclude   
   the Secretary of Defense from waiving the prohibition against requiring 
   nonavailability statements for maternity care.                          
                      Transitional health care for members separated from active   
           duty (sec. 736)                                                         
       The Senate bill contained a provision (sec. 719) that would make    
   permanent the authority for transitional health care benefits for       
   members who are involuntarily separated from active duty, members of    
   reserve components who are separated from active duty of more than 30   
   days in support of a contingency operation, and members separated from  
   active duty when involuntarily retained on active duty under section    
   12305 of title 10, United States Code.                                  
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Two-year extension of health care management demonstration   
           program (sec. 737)                                                      
       The Senate bill contained a provision (sec. 714) that would extend, 
   until December 31, 2003, the demonstration program of simulation        
   modeling to improve health care delivery in the Defense Health Program  
   authorized in section 733 of the Floyd D. Spence National Defense       
   Authorization Act for Fiscal Year 2001.                                 
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Joint DOD VA pilot program for providing graduate medical    
           education and training for physicians (sec. 738)                        
       The Senate bill contained a provision (sec. 538) that would         
   authorize the Secretary of Defense and the Secretary of Veterans Affairs
   to jointly carry out a pilot program of graduate medical education and  
   training for medical personnel of the armed forces in Department of     
   Veterans Affairs' medical centers.                                      
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would include the authority
   to provide graduate medical education and training of physician         
   employees of the Department of Veterans Affairs as part of the pilot    
   program.                                                                
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Effective date                                                          

       The Senate bill contained a provision (sec. 710) that would make the
   TRICARE Benefits Modernization provisions effective on October 1, 2001. 
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    


            TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED   
                                     MATTERS                                      
                                 ITEMS OF SPECIAL INTEREST                        

           Management reform initiatives                                           

       The Secretary of Defense has testified that the Department of       
   Defense (DOD) should be able to achieve five percent savings throughout 
   the Department through management improvements. These savings goals are 
   consistent with analysis presented in numerous governmental and advisory
   commission reports in past years. For example, in November 2000 the     
   General Accounting Office (GAO) reported that ``[m]ost DOD contracting  
   officers included in our review did not follow the General Services     
   Administration's established procedures intended to ensure fair and     
   reasonable prices when using the Federal Supply Schedule.'' The GAO also
   found, in its January 2001 assessment of performance and accountability 
   in the DOD, that ``a number of the Department's key business processes  
   are inefficient and ineffective,'' including acquisition processes that 
   are ``still too slow and costly'' and systems deficiencies that         
   ``significantly contribute to improper payments.'' In addition, the DOD 
   Inspector General, in an August 2001 report, stated that the DOD is     
   ``not obtaining the benefits of sustained competition and reduced       
   costs'' that are permitted under current law. The Business Executives   
   for National Security (BENS) Tail-to-Tooth Commission also stated in its
   October 1997 report that ``billions continue to be wasted on inefficient
   business practices.'' Based on these and other reports, and the         
   Secretary's commitment to improvements in this area, the conferees      
   believe that the Department should be able to achieve significant       
   savings in fiscal year 2002 through more efficient management; reform of
   business processes; improved processes for the procurement of property  
   and services; and increased use of best business practices adopted from 
   the private sector.                                                     
       Titles I, II and III of the conference report include reductions    
   totaling $1.3 billion, to be achieved through management reform         
   initiatives. The conferees expect the Department of Defense to achieve  
   these savings by implementing the requirements of Title VIII, and by    
   pursuing other management efficiencies developed by the Department's    
   Business Initiative Council. The conferees expect the Department to     
   distribute these reductions across budget activities and programs within
   the relevant appropriations accounts, based on the dollar value of      
   contracts within those budget activities and programs to which          
   improvements may be appropriately applied.                              
                               LEGISLATIVE PROVISIONS ADOPTED                     

                    SUBTITLE A--PROCUREMENT MANAGEMENT AND ADMINISTRATION         

           Management of procurement of services (sec. 801)                        

       The Senate bill contained a provision (sec. 801) that would improve 
   the Department of Defense's management of the acquisition of services by
   requiring the Department to: (1) Establish a management structure for   
   purchases of services; (2) collect and analyze data on purchases of     
   services; and (3) establish a program review process for major purchases
   of services.                                                            
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would: (1) Ensure that the 
   management structure for the procurement of services shall be comparable
   to the management structure already in place for the procurement of     
   products; (2) clarify that officials designated to exercise             
   responsibility for the management of the procurement of services may    
   delegate their authority in accordance with criteria established by the 
   Department; and (3) delete redundant requirements and streamline the    
   reporting requirements in the provision.                                
           Savings goals for procurements of services (sec. 802)                   

       The Senate bill contained a provision (sec. 802) that would         
   establish savings goals for the Department of Defense to achieve through
   the use of improved management practices for procurements of services,  
   including performance-based services contracting; competition for task  
   orders under services contracts; and program review, spending analyses, 
   and other best practices commonly used in the commercial sector.        
    The House amendment contained no similar provision.                    

       The House recedes with an amendment deleting the requirement for a  
   report by the Comptroller General. The conferees note that this         
   provision directs the Department to achieve savings through improved    
   management practices. It is not intended to require the Department to   
   reduce needed support services provided by contractors.                 
                      Competition requirement for purchase of services pursuant to 
           multiple award contracts (sec. 803)                                     
       The Senate bill contained a provision (sec. 803) that would require 
   that purchases of products and services in excess of $50,000 awarded    
   under a multiple award contract shall be made on a competitive basis,   
   subject to limited exceptions.                                          
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would: (1) apply the       
   competition requirement only to purchases of services; (2) raise the    
   threshold for the competition requirement to $100,000; (3) require that 
   notice to offerors include a description of the work to be performed and
   the basis on which the selection will be made; and (4) clarify the      
   manner in which the provision would apply to purchases pursuant to the  
   multiple award schedules administered by the Administrator for General  
   Services (GSA schedules). Under the conference agreement, notice could  
   be provided to fewer than all contractors under the GSA schedules,      
   provided that: (1) notice is provided to as many contractors as         
   practicable; and (2) offers are received from at least three qualified  
   contractors or a contracting officer of the Department of Defense       
   determines in writing that he or she was unable to identify additional  
   qualified contractors despite making a reasonable effort to do so.      
                      Reports on maturity of technology at initiation of Major     
           Defense Acquisition Programs (sec. 804)                                 
       The Senate bill contained a provision (sec. 804) that would require 
   that critical technologies be successfully demonstrated in a relevant   
   environment before they may be incorporated into a major defense        
   acquisition program.                                                    
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would substitute an annual 
   report, in calendar years 2003 through 2006, on the compliance of the   
   Department of Defense (DOD) with the technological maturity requirement 
   established in DOD Instruction 5000.2. Paragraph 4.7.3.2.2.2 of that    
   Instruction states in relevant part:                                    

                     Technology must have been demonstrated in a        
          relevant environment * * * or, preferably, in an operational  
          environment * * * to be considered mature enough to use for   
          product development in systems integration. If technology is  
          not mature, the DOD Component shall use alternative technology
          that is mature and that can meet the user's needs.            

    The report required by the conference agreement would identify and    
  explain any circumstance in which the DOD fails to comply with this     
  requirement with regard to a Major Defense Acquisition Program.         
                            SUBTITLE B--USE OF PREFERRED SOURCES                  

                      Applicability of competition requirements to purchases from a
           required source (sec. 811)                                              
       The Senate bill contained a provision (sec. 821) that would require 
   Federal Prison Industries (FPI) to compete for future Department of     
   Defense contracts.                                                      
    The House amendment contained no similar provision.                    

       The House recedes. Under this provision, the Department of Defense, 
   not Federal Prison Industries, will be responsible for determining      
   whether Federal Prison Industries can best meet the Department's needs  
   in terms of price, quality, and time of delivery. If the Department     
   determines that the FPI product is not the best available in terms of   
   price, quality, and time of delivery, the Department is directed to     
   purchase the product on a competitive basis.                            
           Extension of mentor-protege program (sec. 812)                          

       The Senate bill contained a provision (sec. 823) that would codify  
   the pilot mentor-protege program of the Department of Defense and       
   authorize the program in permanent law.                                 
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would extend the program   
   for three years, through September 30, 2005.                            
                      Increase of assistance limitation regarding Procurement      
           Technical Assistance Program (sec. 813)                                 
       The House amendment contained a provision (sec. 806) that would     
   increase the assistance limitation for the Procurement Technical        
   Assistance Program under section 2414 of title 10, United States Code   
   from $300,000 to $600,000.                                              
    The Senate bill contained no similar provision.                        

       The Senate recedes. The conferees believe that the Procurement      
   Technical Assistance Program provides valuable support to both          
   state-wide and local centers across the country. The conferees expect   
   the Department of Defense to continue to implement the program in a     
   broad-based manner that supports a variety of both state-wide and local 
   centers.                                                                
           SUBTITLE C--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                               AND RELATED MATTERS                                
                      Amendments to conform with administrative changes in         
           acquisition phase and milestone terminology and to make related         
           adjustments in certain requirements applicable at milestone transition  
           points (sec. 821)                                                       

       The Senate bill contained a provision (sec. 831) that would make a  
   series of modifications to title 10, United States Code, and related    
   statutes, to substitute references to the acquisition milestones        
   established by revised Department of Defense Instruction 5000.2 for     
   obsolete references currently contained in those statutes.              
    The House amendment contained a similar provision (sec. 801).          

    The House recedes with a technical amendment.                          

                      Follow-on production contracts for products developed        
           pursuant to prototype projects (sec. 822)                               
       The Senate bill contained a provision (sec. 805) that would         
   authorize the Department of Defense to enter follow-on production       
   contracts for a limited number of items developed pursuant to           
   transactions (other than contracts, grants, or cooperative agreements)  
   on a sole-source basis.                                                 
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      One-year extension of program applying simplified procedures 
           to certain commercial items (sec. 823)                                  
       The House amendment contained a provision (sec. 803) that would     
   extend the test program authorized by section 4202 of the Clinger-Cohen 
   Act of 1996 (Divisions D and E of Public Law 104 106; 110 Stat 654)     
   until January 1, 2004.                                                  
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would extend the program  
   until January 1, 2003.                                                  
           Acquisition workforce qualifications (sec. 824)                         

       The Senate bill contained a provision (sec. 813) that would clarify 
   the applicability of the acquisition workforce qualifications in section
   1724 of title 10, United States Code and authorize the Secretary of     
   Defense to establish a contracting workforce to deploy in support of    
   contingency operations.                                                 
       The House amendment contained a similar provision (sec. 802) that   
   would also authorize the Secretary to establish a developmental         
   workforce.                                                              
       The Senate recedes with an amendment that would clarify that        
   individuals serving in developmental positions may be separated from the
   civil service if, after a three-year probationary period, they do not   
   meet the qualification requirements established in section 1724 for     
   members of the acquisition workforce.                                   
                      Report on implementation of recommendations of the           
           Acquisition 2005 Task Force (sec. 825)                                  
       The Senate bill contained a provision (sec. 811) that would require 
   the Secretary of Defense to report on the implementation of the         
   recommendations of the Department of Defense Acquisition 2005 Task Force
   included in the report entitled ``Shaping the Civilian Acquisition      
   Workforce of the Future.''                                              
    The House amendment contained no similar provision.                    

    The House recedes.                                                     


                                  SUBTITLE D--OTHER MATTERS                       

                      Identification of errors made by executive agencies in       
           payments to contractors and recovery of amounts erroneously paid (sec.  
           831)                                                                    
       The House amendment contained a series of provisions (sec. 811 819) 
   that would require executive agencies to conduct a program to recover   
   erroneously made payments.                                              
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would modify the recovery 
   audit provisions to: (1) modify requirements for the disposition of     
   recovered funds; (2) delete funding requirements for the management     
   improvement program; and (3) delete a provision relating to liability   
   for violation of privacy requirements.                                  
                      Codification and modification of provision of law known as   
           the ``Berry Amendment'' (sec. 832)                                      
       The House amendment contained a provision (sec. 805) that would     
   codify the requirements of the ``Berry Amendment'' enacted as section   
   9005 of the Department of Defense Appropriations Act, 1993 (P.L. 102    
   396), and modify those requirements to: (1) require advance             
   congressional notification of all waivers; (2) specifically include     
   parachutes on the list of items covered; and (3) clarify that           
   non-appropriated fund entities are not covered.                         
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would codify the          
   requirements of the ``Berry Amendment'' and clarify that                
   non-appropriated fund entities are not covered. The conferees expect the
   Department to comply with a reasonable notification request from the    
   Armed Services Committee of the Senate or the House of Representatives. 
   The conferees also expect the Department to ensure that no United States
   manufacturer can provide the required item in a sufficient quality or   
   quantity before granting a waiver.                                      
                      Personal services contracts to be performed by individuals or
           organizations abroad (sec. 833)                                         
       The Senate bill contained a provision (sec. 1218) that would amend  
   section 2669 of title 22, United States Code, to authorize the Secretary
   of State, upon the request of the Secretary of Defense or the head of   
   any other department or agency of the United States, to enter into      
   personal service contracts with individuals to perform services in      
   support of the Department of Defense or such other department or agency.
       The House amendment contained a provision (sec. 804) that would     
   authorize the Secretary of Defense to contract with individuals or      
   organizations to perform services in countries with which the United    
   States has no Status of Forces Agreement.                               
    The House recedes.                                                     

           Requirements regarding insensitive munitions (sec. 834)                 

       The Senate bill contained a provision (sec. 833) that would require 
   the Secretary of Defense to have a program ensuring that munitions are  
   resistant to unplanned stimuli. The provision also required a report to 
   Congress, submitted with the annual budget request. The report would    
   identify all waivers, and the reasons for such decisions, granted under 
   insensitive munitions regulations, as well as all funding for           
   insensitive munitions programs in the current budget request.           
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would clarify the          
   requirement for the Secretary of Defense to ensure that munitions are   
   made as insensitive as possible to unplanned stimuli. It limits the     
   report on waivers granted under insensitive munitions regulations and on
   associated funding to three years, from fiscal year 2003 2005.          
                      Inapplicability of limitation to small purchases of miniature
           or instrument ball or roller bearings under certain circumstances (sec. 
           835)                                                                    
       The Senate bill contained a provision (sec. 832) that would provide 
   certain exceptions to the requirement in section 2534 of title 10,      
   United States Code, to purchase ball and roller bearings from domestic  
   sources.                                                                
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would authorize the        
   Department of Defense (DOD) to make purchases of ball and roller        
   bearings from other than domestic sources without obtaining a waiver    
   under section 2534, provided that: (1) no such purchase exceeds the     
   micropurchase threshold of $2,500; and (2) the cumulative total of such 
   purchases does not exceed $200,000 in any fiscal year. The DOD would be 
   required to keep track of such purchases to the extent necessary to     
   ensure that it remains in compliance with the annual limitation.        
                      Temporary emergency procurement authority to facilitate the  
           defense against terrorism or biological or chemical attack (sec. 836)   
       The conference agreement includes a provision that would provide    
   temporary emergency procurement authority to assist the Department of   
   Defense in the defense against terrorism and biological or chemical     
   attack. The provision would provide the following authorities in fiscal 
   years 2002 and 2003: (1) an increase of the micro-purchase threshold to 
   $15,000 for purchases of property and services that would facilitate the
   defense against terrorism or biological or chemical attack against the  
   United States; (2) an increase of the simplified acquisition threshold  
   to $250,000 (inside the United States) and to $500,000 (outside the     
   United States) for contracts awarded in support of a contingency        
   operation or a humanitarian or peacekeeping operation; and (3) authority
   to treat as commercial items any biotechnology goods and services       
   purchased to facilitate the defense against terrorism or biological or  
   chemical attack. In addition, the provision would require the Secretary 
   of Defense to recommend any additional emergency procurement authority  
   that the Secretary determines is necessary to support operations carried
   out to combat terrorism.                                                
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Consolidation of defense contracts                                      

       The Senate bill contained a provision (sec. 822) that would prohibit
   the consolidation of contract requirements in excess of $5.0 million    
   absent a written determination that the benefits of the acquisition     
   strategy, including the consolidated contract requirements,             
   substantially exceed the benefits of alternative contracting approaches 
   that would involve a lesser degree of consolidation.                    
       The House amendment contained a provision (sec. 807) that would     
   require the Secretary of Defense to track consolidations of contract    
   requirements.                                                           
    The conference report does not include either provision.               


       The conferees note that Section 15(p) of the Small Business Act (15 
   U.S.C. Section 644(p)) requires the Small Business Administration (SBA) 
   to maintain certain data and provide certain reports regarding bundled  
   contracts. This provision also states that the head of a contracting    
   agency shall assist the SBA by providing ``procurement information      
   collected through existing agency data collection sources.''            
       There is no requirement in Section 15(p) for the Secretary of       
   Defense to modify existing data collection systems. The conferees direct
   the Secretary of Defense, when complying with this provision, to ensure 
   that the Department of Defense does not modify existing data collection 
   systems, create new data collection systems, or collect information not 
   available in existing data collection systems to collect data on the    
   consolidation or bundling of contract requirements.                     
           HUBzone small business concerns                                         

       The Senate bill contained a provision (sec. 824) that would modify  
   requirements relating to HUBZone small business concerns.               
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

           Small business procurement competition                                  

       The Senate bill contained a provision (sec. 1068) that would address
   teaming arrangements among small businesses.                            
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

                TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT       

                                 ITEMS OF SPECIAL INTEREST                        

           Organizational changes to the Office of the Secretary of Defense        

       The conferees considered a number of legislative proposals made by  
   the Secretary of Defense to change the organizational structure of the  
   Office of the Secretary of Defense (OSD) to deal with terrorism,        
   homeland defense, and intelligence matters.                             
       While the conferees acknowledge the importance of aligning          
   appropriate organizational resources to address these matters, the      
   conferees decided not to act at this time because of the lack of        
   specificity of the legislative requests and supporting materials,       
   including the insufficient explanation as to how the proposed changes   
   would fit into the existing statutory structure. The conferees believe  
   that any further changes to the organizational structure of OSD must be 
   made within the context of a unified and consistent framework addressing
   all elements within the Office.                                         
       To that end, the conferees urge the Secretary of Defense to submit  
   to the Committees on Armed Services of the Senate and the House of      
   Representatives a comprehensive plan that would address the following   
   issues related to the organization of the office of the Secretary of    
   Defense: the number and roles of the under secretaries; the appropriate 
   uses of deputy under secretary and principal deputy under secretary     
   positions; the appropriate number and uses of assistant secretaries and 
   their relationship to other positions within the OSD; the consistency of
   the requirement for Senate confirmation across positions; and the most  
   beneficial organizational structures for increasingly important         
   functions such as combating terrorism, homeland security, and           
   intelligence.                                                           
                               LEGISLATIVE PROVISIONS ADOPTED                     

             SUBTITLE A--DUTIES AND FUNCTIONS OF DEPARTMENT OF DEFENSE OFFICERS   

           Deputy Under Secretary of Defense for Personnel and Readiness (sec. 901)

       The Senate bill contained a provision (sec. 901) that would         
   establish a new position requiring Senate confirmation within the Office
   of the Secretary of Defense (OSD) known as the Deputy Under Secretary of
   Defense for Personnel and Readiness. The provision would also reduce the
   number of assistant secretaries of defense from nine to eight.          
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

       The conferees note that the creation of a Deputy Under-Secretary for
   Personnel and Readiness will bring the number of deputy under           
   secretaries within the OSD to nine, only four of which require Senate   
   confirmation. Further, there is no consistent organizational approach to
   the responsibilities and authorities of deputy under secretaries,       
   assistant secretaries, and directors of programmatic offices throughout 
   the four under secretariats within the OSD. The conferees are concerned 
   with this arrangement and have urged the Secretary of Defense elsewhere 
   in this report to submit a comprehensive plan to the Committees on Armed
   Services of the Senate and the House of Representatives on the optimal  
   organizational structure for the OSD.                                   
                      Sense of Congress on functions of new Office of Force        
           Transformation in the Office of the Secretary of Defense (sec. 902)     
       The House amendment contained a provision (sec. 902) that would     
   express the sense of Congress that the Secretary of Defense should      
   consider the establishment of an Office of Transformation within the    
   Office of the Secretary of Defense to advise the Secretary on the       
   various aspects of force transformation and would further express the   
   sense of Congress that the Secretary should consider providing funding  
   adequate for sponsoring selective prototyping efforts, wargames, and    
   studies and analysis and for appropriate staffing, as recommended by the
   director of such an Office of Transformation.                           
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that reflects the latest       
   developments in the Department of Defense, including the decision by the
   Secretary of Defense to establish an Office of Transformation.          
                      Suspension of reorganization of engineering and technical    
           authority policy within the Naval Sea Systems Command pending report to 
           congressional committees (sec. 903)                                     
       The Senate bill contained a provision (sec. 906) that would delay   
   the implementation of a Naval Sea Systems Command (NAVSEA)              
   reorganization of engineering and technical authority policy until 60   
   days after the Secretary of the Navy provides a report on the Navy's    
   plans and justification for the proposed realignment.                   
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would prohibit the         
   Secretary of the Navy from granting final approval for the              
   reorganization of engineering and technical authority policy within     
   NAVSEA until 45 days after the Secretary submits to the congressional   
   defense committees a report on the details of the reorganization.       
                                SUBTITLE B--SPACE ACTIVITIES                      

           Space Activities (secs. 911 915)                                        

       The Senate bill contained a series of provisions (sec. 911 916) that
   would address concerns about the Department of Defense (DOD) management 
   structure for space activities. The provisions would provide the        
   Secretary of Defense discretionary authority to establish a new position
   of Under Secretary of Defense for Space, Intelligence and Information;  
   would establish the duties of the position, including serving as the    
   Director of the National Reconnaissance Office; and would require a     
   report from the Secretary on the proposed organization of that office.  
   Upon establishment of the new Under Secretary, the provisions would     
   establish an additional Assistant Secretary of Defense and require that 
   two of the total number of assistant secretaries would have as their    
   principle duties supervision of activities relating to space,           
   intelligence, and information. Both would report to the Under Secretary 
   of Defense for Space, Intelligence, and Information. If the Secretary of
   Defense failed to exercise the authority to establish the new Under     
   Secretary position, he would be required to submit a report describing  
   the actions he had taken to address the problems in the management and  
   organization of the Department of Defense for space activities that were
   identified by the Commission to Assess United States National Security  
   Space Management and Organization (Space Commission). The provisions    
   would also require the Comptroller General to assess the progress of the
   DOD in implementing the recommendations of the Space Commission;        
   designate the Air Force as the executive agent for space; require the   
   Secretary of Defense to designate space as a major force program;       
   require that the officer commanding the Air Force Space Command have the
   grade of general; establish a separate space career field; and prohibit 
   the commander of Air Force Space Command from serving simultaneously as 
   the Commander-in-Chief, U.S. Space Command and the commander of the     
   North American Air Defense Command.                                     
       The House amendment contained a series of similar provisions (secs. 
   1401 1408) that would provide discretionary authority for the Secretary 
   of Defense to take the following actions: establish a new position of   
   Under Secretary of Defense for Space Information and Intelligence;      
   establish two new Assistant Secretaries of Defense to serve under the   
   new Under Secretary of Defense; assign the Secretary of the Air Force to
   be the executive agent of the Department of Defense for planning and    
   execution of space acquisition programs, projects and activities;       
   establish a major force program for the space programs of the Department
   of Defense; and require that the officer serving as the commander of Air
   Force Space Command not serve simultaneously as the commander of the    
   North American Air Defense Command or the Commander-in-Chief, U. S.     
   Space Command. The House amendment also included provisions that: would 
   provide discretionary authority to the Secretary of the Air Force to    
   establish a separate space career field and to designate the Under      
   Secretary of the Air Force as the acquisition executive of the Air Force
   for Department of Defense space programs; and would require an          
   assessment by the Comptroller General of the actions taken by the       
   Secretary of Defense to implement the recommendations contained in the  
   report of the Commission to Assess United States National Security Space
   Management and Organization. The House amendment also included a        
   provision to clarify that nothing in the foregoing provisions changed   
   the responsibilities of the Director of Central Intelligence.           
       The conferees recognize that the importance of space programs,      
   projects and activities in support of military activities continues to  
   grow. In the interest of improving the efficiency and effectiveness of  
   U.S. military operations, the conferees agree to a provision (sec. 912) 
   that would require the Secretary of the Air Force to establish and      
   implement policies and procedures to develop a space career field.      
       The conferees agree to a provision (sec. 913) that would require the
   Secretary of Defense to submit a report on steps taken to improve       
   management, organization and oversight of space programs, space         
   activities, and funding and personnel resources.                        
       The conferees agree to a provision (sec. 911) that would require the
   Secretary of Defense to take appropriate actions to ensure that space   
   development and acquisition programs are carried out through joint      
   program offices and, to the maximum extent practicable, ensure that     
   officers of the Army, Navy, Marine Corps, and Air Force are assigned to 
   and hold leadership positions in such joint program offices. This       
   section would also direct the Secretary to designate positions in the   
   Office of the National Security Space Architect as joint duty           
   assignments as appropriate.                                             
       The conferees have also included a provision (sec. 914) that        
   requires the Comptroller General to assess the actions taken by the     
   Secretary of Defense to implement the recommendations contained in the  
   Space Commission report.                                                
       The conferees also express their view in section 902 that the best  
   qualified officer from any service should be appointed as               
   Commander-in-Chief, U.S. Space Command, and that the appointee be a     
   four-star general or flag officer position.                             
       Both the House and Senate provisions were motivated by a desire to  
   encourage the implementation of the recommendations of the Space        
   Commission, which concluded that the Department of Defense is not       
   adequately organized or focused to meet U.S. national security space    
   needs.                                                                  
       One of the central reforms recommended by the Space Commission was  
   the establishment of a new Under Secretary of Defense for Space,        
   Intelligence, and Information to provide high-level attention and       
   guidance to space programs. This recommendation is not included in the  
   provisions in this conference report primarily because the Secretary of 
   Defense has indicated that he is in the process of implementing the     
   recommendations of the Space Commission and that such a provision would 
   interfere with his freedom to manage the DOD. The conferees, however, do
   not agree that these provisions would reduce the Secretary's freedom to 
   manage the Department, as the provisions were intended to provide him   
   additional flexibility. The conferees understand, however, that the     
   Secretary has stated his intent not to exercise this authority if it is 
   provided to him.                                                        
       The conferees also note that the Secretary has stated his intent to 
   designate the Secretary of the Air Force as the executive agent for DOD 
   space programs. The conferees remain concerned that the continuing      
   absence of a coherent, senior-level focus for space programs within the 
   Office of the Secretary of Defense and the concentration of authority   
   and resources for space programs in the Air Force may not be sufficient 
   to resolve the space management and organizational challenges identified
   by the Space Commission and may inadvertently be a source of new        
   problems. The conferees will carefully review the reports required in   
   sections 913 and 914 and will consider whether there is a need in the   
   future for additional organization and management reforms.              
       Noting that the Space Commission also concluded that the depth of   
   experience and technical expertise in space operations and technology   
   has suffered over the past decade, the conferees believe establishing a 
   space career field in the Air Force that includes development and       
   operation of space systems and development of space doctrine and        
   operational concepts is key to sustaining U.S. leadership in space. The 
   Chief of Staff of the Air Force recently stated that ``space * * * is a 
   separate culture * * * different than what airmen experience in the air 
   * * * We have to respect that, and we have to grow and nurture that     
   culture until it matures.''                                             
       The conferees are encouraged by the progress made by the Air Force  
   in this direction to date, but believe that the detailed planning and   
   implementation of a space career field must be carefully monitored. The 
   conferees recognize that the commander of Air Force Space Command will  
   be provided the resources and assigned responsibility to organize,      
   train, and equip for Air Force space development, acquisition and       
   operations. Furthermore, consistent with the implementation guidance    
   issued by the Secretary of Defense on October 18, 2001, the conferees   
   expect that the commander of Air Force Space Command will be assigned   
   appropriate responsibility for managing the space career field.         
       The conferees further understand that the Secretary of Defense has  
   stated his intent to establish a ``virtual major force program'' to     
   provide better visibility and insight into DOD funding for space        
   programs and activities. The conferees note that senior DOD officials   
   have contended that establishing a major force program (MFP) for space  
   programs might have serious unintended consequences, although no such   
   consequences have ever been described. The conferees recognize, however,
   that a virtual MFP--the designation of funding for space programs and   
   activities without formally creating a space MFP--could represent a more
   flexible approach. Therefore, the conferees expect the virtual MFP for  
   space to be included in the Future Years Defense Program submitted with 
   the 2003 fiscal year budget request.                                    
       The conferees, in section 912 of this bill, provided sufficient     
   flexibility in general officer limits to ensure that the commander of   
   Air Force Space Command will serve in the grade of general. The         
   conferees also believe that the officer in this position should not     
   serve concurrently as commander of the North American Air Defense       
   Command or as Commander-in-Chief, U.S. Space Command. The conferees     
   understand that the Secretary intends to implement these Space          
   Commission recommendations and will continue to monitor the Department's
   actions in these matters.                                               
                                     SUBTITLE C--REPORTS                          

                      Revised requirement for Chairman of the Joint Chiefs of Staff
           to advise Secretary of Defense on the assignment of roles and missions  
           to the armed forces (sec. 921)                                          
       The House amendment contained a provision (sec. 904) that would     
   repeal the requirement contained in section 153(b) of title 10, United  
   States Code, for the Chairman of the Joint Chiefs of Staff to submit a  
   review of the assignment of roles and missions of the armed forces to   
   the Secretary of Defense every three years. The provision would also    
   amend section 118 of title 10, United States Code, to require the       
   Chairman to conduct such a review as part of the Quadrennial Defense    
   Review (QDR) process and that the results of that review be included in 
   the Chairman's assessment of the QDR that is submitted to Congress.     
    The Senate bill contained a similar provision (sec. 1023).             

       The Senate recedes with an amendment that also requires the Chairman
   of the Joint Chiefs of Staff to submit to Congress no later than one    
   year after the date of the enactment of this Act a separate assessment  
   of the assignment of roles and missions of the armed forces based upon  
   the findings in the 2001 QDR issued by the Secretary of Defense on      
   September 30, 2001.                                                     
                      Revised requirements for content of annual report on joint   
           warfighting experimentation (sec. 922)                                  
       The Senate bill contained a provision (sec. 905) that would amend   
   section 485 of title 10, United States Code, to clarify some of the     
   contents of the annual joint warfighting report and require the         
   inclusion of a specific assessment of whether there is a need for a     
   major force program, or some other resource mechanism, for funding joint
   experimentation and for funding the rapid development and acquisition of
   uniquely joint warfighting technologies that have been empirically      
   demonstrated through such experimentation.                              
    The House amendment contained no similar provision.                    

    The House recedes with a technical amendment.                          

                      Repeal of requirement for one of three remaining required    
           reports on activities of Joint Requirements Oversight Council (sec. 923)
       The House amendment contained a provision (sec. 905) that would     
   repeal section 916 of the Floyd D. Spence National Defense Authorization
   Act for Fiscal Year 2001 that requires the Chairman of the Joint Chiefs 
   of Staff to submit a semi-annual report to the Committees on Armed      
   Services of the Senate and House of Representatives on specific         
   activities of the Joint Requirements Oversight Council through March 1, 
   2003.                                                                   
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that repeals the requirement   
   for one of the three remaining reports and provides for the March 1,    
   2003 report to cover all of the preceding fiscal year.                  
                      Revised joint report on establishment of national            
           collaborative information analysis capability (sec. 924)                
       The House amendment contained a provision (sec. 903) that would     
   require the Secretary of Defense and the Director of Central            
   Intelligence to submit a revised report assessing alternatives for the  
   establishment of a national collaborative information analysis          
   capability. The provision would direct that the revised report focus on 
   only the range of architecture alternatives that would involve the      
   participation of all federal agencies involved in the collection of     
   intelligence.                                                           
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require that the    
   report identify legislative or regulatory changes that would be needed  
   in order to implement the preferred architecture in the report.         
       The conferees note that the original provision in the Floyd D.      
   Spence National Defense Authorization Act for Fiscal Year 2001 included 
   direction that the architectures contemplated for the original report,  
   and, by reference, this revised report, should be consistent with       
   requirements of the Privacy Act of 1974, as amended.                    
                                  SUBTITLE D--OTHER MATTERS                       

                      Conforming amendments relating to change of name of Military 
           Airlift Command to Air Mobility Command (sec. 931)                      
       The Senate bill contained a provision (sec. 907) that would change  
   references in the United States Code to the former Military Airlift     
   Command to refer to the command by its current designation as the Air   
   Mobility Command.                                                       
    The House amendment contained a similar provision (sec. 906).          

       The House recedes with an amendment that would clarify that the     
   changes would be made to current references to the Military Airlift     
   Command.                                                                
                      Organizational realignment for Navy Director for             
           Expeditionary Warfare (sec. 932)                                        
       The House amendment contained a provision (sec. 907) that would     
   amend section 5038(a) of title 10, United States Code, with respect to  
   the specific office of the Deputy Chief of Naval Operations within which
   the Director for Expeditionary Warfare shall be located.                
    The Senate bill contained a similar provision (sec. 904).              

    The Senate recedes.                                                    

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Reductions in acquisition and support workforce                         

       The Senate bill contained a provision (sec. 812) that would         
   establish a moratorium on further cuts in the acquisition workforce for 
   three years.                                                            
       The House amendment contained a provision (sec. 901) that would     
   mandate a reduction of 13,000 in the acquisition workforce in fiscal    
   year 2002.                                                              
    The conference agreement does not include either provision.            

                      Responsibility of the Under Secretary of the Air Force for   
           acquisition of space launch vehicles and space launch services          
       The Senate bill contained a provision (sec. 902) that would assign  
   responsibility for the acquisition of space launch vehicles and space   
   launch services for the Department of Defense and the National          
   Reconnaissance Office (NRO) to the Under Secretary of the Air Force.    
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees note that the Air Force has managed and contracted for
   the acquisition of space launch vehicles and services for both the Air  
   Force and the NRO. This arrangement has allowed the Air Force to achieve
   cost savings and efficiencies of scale for both organizations. The      
   conferees continue to oppose proposals that would require the NRO to    
   manage and contract for its own launch vehicles and services.           

                                TITLE X--GENERAL PROVISIONS                       

           Counter-Drug Activities                                                 

       The budget request for drug interdiction and other counter-drug     
   activities of the Department of Defense (DOD) for fiscal year 2002      
   totaled approximately $1.0 billion: $820.4 million in the central       
   transfer account; $166.8 million in the operating budgets of the        
   military services for authorized counter-drug operations; and $12.5     
   million in the military construction account for infrastructure         
   improvements at the forward operating locations.                        
       The conferees recommend the following fiscal year 2002 budget for   
   the Department's central transfer account.                              

          DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, CENTRAL TRANSFER ACCOUNT 

          [In millions of dollars; may not add due to rounding]                   



          Fiscal Year 2002 Counter-drug Request                $820.381

    Increases:                                                             

   National Guard Support                                                  

 16.0 18                                                                 

   Operation Caper Focus                                                   

 4.0 18                                                                  

   Southwest Border Fence                                                  

 5.0 18                                                                  

    Decreases:                                                             

   AWACs Tactical Operations Support                                       

 2.5 18                                                                  

   Counter-drug Tanker Operations Support                                  

 1.0 18                                                                  

    2 Support                                                              

 1.0 18                                                                  

   Peru Riverine Program                                                   

 5.0 18                                                                  

   Tracker Aircraft                                                        

 2.0 18                                                                  

   Research, Development, Test & Evaluation                                

 4.0 18                                                                  

   Patrol Coastals                                                         

 1.5 18                                                                  

   Tethered Aerostat Radar System                                          

 8.0 18                                                                  



          Fiscal Year 2002 Counter-drug Funding                820.381


           National Guard counter-drug activities                                  

       The conferees agree to authorize an additional $16.0 million for the
   counter-drug activities of the National Guard, including National Guard 
   State Plans and the National Guard Counter-drug Schools.                
           Operation Caper Focus                                                   

       The conferees also agree to authorize an additional $4.0 million for
   Operation Caper Focus, an important initiative to disrupt narcotics     
   trafficking in the Eastern Pacific. To the extent that assets become    
   available, the conferees expect the Secretary of Defense to make them   
   available for Operation Caper Focus.                                    
           Tethered Aerostat Radar System                                          

       The conferees direct that a higher priority be given to operational 
   availability of the Tethered Aerostat Radar System than to its          
   modernization.                                                          
                                 ITEMS OF SPECIAL INTEREST                        

           Automobile Safety Program                                               

       The conferees are concerned with the number of deaths and serious   
   injuries to military service members and Department of Defense civilian 
   employees due to automobile collisions and strongly support innovative  
   safety programs designed to eliminate these accidents. The conferees    
   understand that an automobile safety program recently conducted at Fort 
   Polk, Louisiana is proving to be a sound and successful attempt at      
   accident reduction. The conferees recommend that the Secretary of       
   Defense consider an expansion of the program to assist in achieving the 
   Department's safe driving goals.                                        
                               LEGISLATIVE PROVISIONS ADOPTED                     

                                SUBTITLE A--FINANCIAL MATTERS                     

           Transfer authority (sec. 1001)                                          

       The Senate bill contained a provision (sec. 1001) that would provide
   the reprogramming authority for the transfer of authorized funds made   
   available in Division A of this Act.                                    
    The House amendment contained an identical provision.                  

    The conference agreement includes this provision.                      

           Incorporation of classified annex (sec. 1002)                           

       The House amendment contained a provision (sec. 1002) that would    
   incorporate the classified annex prepared by the Committee on Armed     
   Services into this Act.                                                 
    The Senate bill contained no similar provision.                        

       The Senate recedes with a technical amendment that would provide    
   that the classified annex prepared by the committee of conference be    
   incorporated into this Act.                                             

                      Authorization of supplemental appropriations for fiscal year 
           2001 (sec. 1003)                                                        
       The Senate bill contained a provision (sec. 1003) that would        
   authorize the supplemental appropriations enacted in the Supplemental   
   Appropriations Act, 2001 (Public Law 107 20) which provided supplemental
   funding for Department of Defense programs including increased health   
   care costs, operating expenses, and utility costs.                      
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      United States contribution to NATO common-funded budgets in  
           fiscal year 2002 (sec. 1004)                                            
       The Senate bill contained a provision (sec. 1004) that would        
   authorize the U.S. contribution to NATO common-funded budgets for fiscal
   year 2002, including the use of unexpended balances. The resolution of  
   ratification for the Protocol to the North Atlantic Treaty of 1949 on   
   the Accession of Poland, Hungary and the Czech Republic contained a     
   provision (section 3(2)(c)(ii)) requiring a specific authorization for  
   U.S. payments to the common-funded budgets of NATO for each fiscal year,
   beginning in fiscal year 1989, that payments exceed the fiscal year 1998
   total.                                                                  
    The House amendment contained no similar provision.                    

    The House recedes.                                                     


                      Limitation on funds for Bosnia and Kosovo Peacekeeping       
           Operations for fiscal year 2002 (sec. 1005)                             
       The House amendment contained a provision (sec. 1003) that would    
   limit the amount of funds authorized to be appropriated for incremental 
   costs of the armed forces for peacekeeping operations in Bosnia and     
   Kosovo in fiscal year 2002 to the amounts contained in the budget       
   request: $1,315.6 million for Bosnia and $1,528.6 million for Kosovo.   
   The provision would authorize the President to waive the limitation     
   after submitting to Congress: (1) a written certification that the      
   waiver is necessary in the national security interests of the United    
   States and that the exercise of the waiver will not adversely affect the
   readiness of U.S. military forces; (2) a report setting forth the       
   reasons for the waiver, to include a discussion of the impact of U.S.   
   military involvement in Balkan peacekeeping operations on U.S. military 
   readiness; and (3) a supplemental appropriations request for the        
   Department of Defense for the additional fiscal year 2002 costs         
   associated with U.S. military participation in or support for           
   peacekeeping operations in Bosnia and Kosovo.                           
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

           Maximum amount for National Foreign Intelligence Program (sec. 1006)    

       The conferees agree to include a provision that would establish a   
   ceiling for authorization for the National Foreign Intelligence Program 
   (NFIP) equal to the amounts requested by the President in the budget    
   request for fiscal year 2002. The provision would allow this ceiling to 
   be increased by any amounts provided for the NFIP in the Emergency      
   Terrorism Response Supplemental Appropriations Act, 2001, and any fiscal
   year 2002 supplemental appropriations bills.                            
                      Clarification of applicability of interest penalties for late
           payment of interim payments due under contracts for services (sec. 1007)
       The Senate bill contained a provision (sec. 1005) that would clarify
   the effective date of section 1010 of the Floyd D. Spence National      
   Defense Authorization Act for Fiscal Year 2001.                         
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Reliability of Department of Defense financial statements (sec. 1008)   

       The Senate bill contained a provision (sec. 1006) that would direct 
   the Department of Defense (DOD) to identify in advance financial        
   statements that will be unreliable because of the Department's flawed   
   finance and accounting systems, and to minimize the resources that are  
   used to prepare and audit these statements.                             
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would clarify that the     
   Comptroller of the Department of Defense is authorized to make the      
   determination which statements will be unreliable, and adjust the       
   deadline for making such a determination.                               
                      Financial Management Modernization Executive Committee and   
           financial feeder systems compliance process (sec. 1009)                 
       The Senate bill contained a provision (sec. 1007) that would require
   the Department of Defense to establish an oversight council and a       
   management process for implementing changes identified in the           
   congressionally-mandated financial management improvement plans.        
    The House amendment contained no similar provision.                    

    The House recedes with a technical amendment.                          

                      Authorization of funds for ballistic missile defense programs
           or combating terrorism programs of the Department of Defense (sec. 1010)
       The Senate bill contained a provision (sec. 1009) that would        
   authorize $1.3 billion, the amount by which the Senate bill reduced     
   funding for ballistic missile defense programs, for whichever of the    
   following purposes the President determines to be in the national       
   security interests of the United States:                                
       (1) research, development, test and evaluation of ballistic missile 
   defense programs; and                                                   
     (2) activities for combating terrorism.                               

       The House amendment contained a comparable provision (sec. 1501)    
   that would increase by $400.0 million the funding for the following     
   activities to combat terrorism: intelligence programs, anti-terrorism   
   initiatives, counter-terrorism initiatives, and consequence management  
   activities. The provision included transfer authority and provided      
   offsetting reductions of $265.0 million for ballistic missile defense   
   activities, and $135.0 million for consulting services in the           
   Defense-Wide operation and maintenance account.                         
       The House amendment also contained a provision (sec. 1502) that     
   would require that funds transferred under the authority of section 1501
   be merged with and available for the same period of time as the         
   appropriations to which transferred.                                    
       The House recedes with an amendment that would authorize the $1.3   
   billion for whichever of the following purposes the President determines
   to be in the national security interests of the United States:          
       (1) research, development, test and evaluation of ballistic missile 
   defense programs of the Ballistic Missile Defense Organization; and     
     (2) activities of the Department of Defense for combating terrorism.  

       The amendment would also require the Secretary of Defense to report 
   to the congressional defense committees on the allocation of the funds  
   pursuant to the President's determination.                              
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                

                      Authority to transfer naval vessels to certain foreign       
           countries (sec. 1011)                                                   
       The Senate bill contained a provision (sec. 1216) that would        
   transfer to various countries:                                          
       (1) on a grant basis, one Oliver Hazard Perry -class frigate and six
   Knox -class frigates; and                                               
       (2) on a sale basis, four Kidd -class destroyers and two Oliver     
   Hazard Perry -class frigates.                                           
       The provision would direct that, to the maximum extent practicable, 
   the President shall require, as a condition of transfer, that repair and
   refurbishment associated with the transfer be accomplished in a shipyard
   located in the United States.                                           
       The authority under this provision would expire at the end of the   
   two-year period that begins on the date of enactment of the National    
   Defense Authorization Act for Fiscal Year 2002.                         
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would provide authority for
   the President to waive lease payments for up to one year for vessel     
   transfers that:                                                         
       (1) would be converted, under the provisions of this Act, from a    
   lease to a grant; and                                                   
     (2) are among the grant transfers approved in this Act.               

           Sale of Glomar Explorer to the lessee (sec. 1012)                       

       The Senate bill and the House amendment did not contain any         
   provision relating to the current lease arrangement for the vessel      
   Glomar Explorer.                                                        
       The conferees agree to include a provision that would authorize the 
   Secretary of the Navy, at his discretion, to sell the Glomar Explorer   
   (AG 193) to the current lessee. Any such sale would have to be based on 
   a price that represents a fair and reasonable amount, as determined by  
   the Secretary.                                                          
                      Leasing of Navy ships for University National Oceanographic  
           Laboratory System (sec. 1013)                                           
       The Senate bill contained a provision (sec. 1067) that would modify 
   section 2667, title 10, United States Code to allow the Navy to renew   
   the five-year leases for certain Navy research vessels without          
   recompeting them, as long as the initial lease was awarded              
   competitively.                                                          
    The House amendment contained a similar provision (sec. 1047).         

    The conference agreement includes this provision.                      

                      Increase in limitations on administrative authority of the   
           Navy to settle admiralty claims (sec. 1014)                             
       The House amendment contained a provision (sec. 1004) that would    
   increase the administrative authority of the Navy to settle admiralty   
   claims.                                                                 
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                             SUBTITLE C--COUNTER-DRUG ACTIVITIES                  

                      Extension and restatement of authority to provide Department 
           of Defense support for counter-drug activities of other governmental    
           agencies (sec. 1021)                                                    
       The Senate bill contained a provision (sec. 331) that would codify  
   section 1004 of the National Defense Authorization Act for Fiscal Year  
   1991, as amended, in title 10, United States Code.                      
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that restates section 1004 but  
   does not codify it, makes it effective during fiscal years 2002 through 
   2006, and makes several technical changes.                              
                      Extension of reporting requirement regarding Department of   
           Defense expenditures to support foreign counter-drug activities (sec.   
           1022)                                                                   
       The House amendment contained a provision (sec. 1021) that would    
   extend for an additional year the requirement in the Floyd D. Spence    
   National Defense Authorization Act for Fiscal Year 2001 that the        
   Secretary of Defense report to the congressional defense committees     
   detailing the expenditure of funds in direct or indirect support of the 
   counter-drug activities of foreign governments.                         
    The Senate bill contained no similar provisions.                       

    The Senate recedes.                                                    

                      Authority to transfer Tracker aircraft currently used by     
           Armed Forces for counter-drug purposes (sec. 1023)                      
       The House amendment contained a provision (sec. 1022) that would    
   authorize the Secretary of Defense to transfer all Tracker aircraft in  
   the inventory of the Department of Defense to the administrative        
   jurisdiction and operational control of another federal agency. The     
   provision also provided that any Tracker aircraft remaining in the      
   inventory of the Department of Defense after September 30, 2002 may not 
   be used by the armed forces for counter-drug purposes after that date.  
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Limitation on use of funds for operation of Tethered Aerostat
           Radar System pending submission of required report (sec. 1024)          
       The House amendment contained a provision (sec. 1023) that would    
   authorize the Secretary of Defense to transfer to the administrative    
   jurisdiction and operational control of another federal agency the      
   Tethered Aerostat Radar System (TARS) currently used by the armed forces
   in counter-drug detection and monitoring. The provision also provided   
   that if the TARS is not transferred by September 30, 2002, it may not be
   used by the armed forces for counter-drug purposes after that date.     
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that provides that not more    
   than 50 percent of the funds available for fiscal year 2002 for         
   operation of the TARS may be obligated or expended until such time as   
   the Secretary of Defense submits to Congress the report on the status of
   the TARS required to be submitted by the Secretary, in consultation with
   the Secretary of the Treasury, by the Floyd D. Spence National Defense  
   Authorization Act for Fiscal Year 2001. The conferees direct that the   
   report contain a new review of the requirements of the Department of    
   Defense and the Department of the Treasury, including the U.S. Customs  
   Service, and a new assessment of the value of the TARS in the conduct of
   counter-drug detection and monitoring and border security and air       
   sovereignty operations in light of the changed circumstances in the     
   aftermath of the September 11, 2001 terrorist attacks.                  
                                SUBTITLE D--STRATEGIC FORCES                      

                      Repeal of limitation on retirement or dismantlement of       
           strategic nuclear delivery systems (sec. 1031)                          
       The Senate bill contained a provision (sec. 1011) that would repeal 
   section 1302 of the National Defense Authorization Act for Fiscal Year  
   1998, which prohibits the obligation or expenditure of funds to retire  
   or prepare to retire certain strategic nuclear delivery systems until   
   the START II Treaty enters into force.                                  
       The House amendment contained a similar provision (sec. 1043) that  
   would amend section 1302 to allow the retirement of Peacekeeper         
   Intercontinental Ballistic Missiles.                                    
    The House recedes.                                                     

           Air Force bomber force structure (sec. 1032)                            

       The Senate bill contained a provision (sec. 1012) that would prevent
   the Department of Defense from retiring or dismantling any of the 93 B  
   1B Lancer bombers in the Air National Guard, or from transferring or    
   reassigning any of those aircraft, until 30 days after delivery of a    
   series of reports to the Armed Services Committees of the Senate and    
   House of Representatives, including: (1) the national security strategy;
   (2) the Quadrennial Defense Review; (3) a report detailing the analysis 
   for any consolidation and force structure reduction, along with         
   Department plans for the National Guard units currently flying B 1B     
   bombers; and (4) the revised Nuclear Posture Review. The provision would
   also require the Comptroller General to conduct a study and submit a    
   Government Accounting Office (GAO) report on the proposed consolidation 
   and force structure reduction by January 31, 2002.                      
       The House amendment contained a similar provision (sec. 1045) that  
   would differ from the Senate position only in that the GAO report would 
   not be due until 180 days after the Department's report of analysis of  
   the consolidation and force structure reduction.                        
       The conferees agree to a provision that would greatly streamline the
   reporting requirements. The provision would prevent the obligation of   
   funds for retiring, dismantling, transferring, or reassigning any of the
   93 B 1B bombers until 15 days after the Secretary of the Air Force      
   submits a report that provides details of the proposed consolidation,   
   force structure reduction, and plans for affected National Guard units. 
   This provision is not intended in any way to prevent the initiation of  
   planning activities for the execution of this plan.                     
           Additional element for revised nuclear posture review (sec. 1033)       

       The Senate bill contained a provision (sec. 1013) that would amend  
   section 1041 of the Floyd D. Spence National Defense Authorization Act  
   for Fiscal Year 2001 by adding a new element to the nuclear posture     
   review. The new element would direct the Secretary of Defense to look at
   the possibility of deactivating or dealerting nuclear warheads or       
   delivery systems.                                                       
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

       The conferees are aware that the concepts of dealerting and early   
   deactivation of nuclear weapons and systems have been the subject of    
   debate and discussion, and that there are a range of views with respect 
   to these critical issues. By adding this additional requirement to the  
   Nuclear Posture Review (NPR), the conferees wish to have the benefit of 
   a careful and thorough review of these concepts in the broader context  
   of the NPR. Inclusion of this additional element is not intended by the 
   conferees to presuppose the outcome of this review.                     
                      Report on options for modernization and enhancement of       
           missile wing helicopter support (sec. 1034)                             
       The Senate bill contained a provision (sec. 1073) that would require
   the Secretary of Defense to submit a report, with submission of the     
   fiscal year 2003 budget request, that would provide information on the  
   Secretary's preferred option for furnishing helicopter support for the  
   Air Force intercontinental ballistic missile wings. The provision       
   included certain options that should be considered, allowed additional  
   options to be considered, and included factors that should be considered
   in the review process.                                                  
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would specify that the     
   report must be submitted not later than the date of the submission of   
   the fiscal year 2003 budget request.                                    
                     SUBTITLE E--OTHER DEPARTMENT OF DEFENSE PROVISIONS           

                      Secretary of Defense recommendation on need for Department of
           Defense review of proposed federal agency actions to consider possible  
           impact on national defense (sec. 1041)                                  
       The House amendment contained a provision (sec. 312) that would     
   require the Secretary of Defense to include a national security impact  
   statement in each environmental impact statement or environmental       
   assessment prepared in connection with a Department of Defense action.  
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require the         
   Secretary of Defense to submit to the President the Secretary's         
   recommendation as to whether there should be established within the     
   Executive Branch a defense impact review process and to submit a copy of
   that recommendation to Congress. For the purposes of this section, a    
   defense impact review process means a process that provides for review  
   of certain proposed actions of other federal agencies to identify any   
   reasonably foreseeable significant adverse impact of such a proposed    
   action on national defense.                                             
                      Department of Defense reports to Congress to be accompanied  
           by electronic version upon request (sec. 1042)                          
       The House amendment contained a provision (sec. 1031) that would    
   require that the Department of Defense submit copies of reports to      
   Congress in an electronic medium.                                       
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment providing that the Department  
   must provide electronic reports only upon request.                      

           Department of Defense gift authorities (sec. 1043)                      

       The House amendment contained a provision (sec. 1041) that would    
   clarify items that may be loaned or given under section 7545 of title   
   10, United States Code. The House amendment also contained a provision  
   (sec. 354) addressing the entities to which such items may be loaned or 
   given.                                                                  
    The Senate bill contained no similar provision.                        

    The Senate recedes with an amendment combining the two provisions.     

                      Acceleration of research, development, and production of     
           medical countermeasures for defense against biological warfare agents   
           (sec. 1044)                                                             
       The Senate bill contained a provision (sec. 1025) that would        
   authorize the Secretary of Defense, subject to the availability of      
   authorized and appropriated funds for such purpose, to design, construct
   and operate on an installation of the Department of Defense a           
   government-owned, contractor-operated (GOCO) vaccine production         
   facility. The provision would also require the Secretary of Defense to  
   develop a long-range plan for the production and acquisition of vaccines
   to defend against biological warfare agents, including an evaluation of 
   vaccine production options, and to report to the congressional defense  
   committees on that plan by February 1, 2002.                            
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would require the Secretary
   of Defense to carry out an accelerated program of research, development 
   and production of medical countermeasures to defend against the highest 
   threat biological warfare agents. In order to accomplish this objective,
   the conferees believe that the Department of Defense should invest in   
   multiple new technologies for the prevention and treatment of anthrax   
   and should take advantage of ideas and candidate technologies from the  
   bio-tech industry. The conferees believe that the Department should     
   consider the following approaches in this effort: understanding the     
   germination process of anthrax spores and the means to inhibit this     
   process; identifying the molecular behavior of the anthrax toxin and the
   means to intervene against it at the cellular level; investigating      
   recombinant protein antigens and formulating new vaccines, including    
   multivalent vaccines that may be effective against multiple strains of  
   pathogens; investigating technologies to be used as an adjunct to       
   antibiotic treatment that may be more effective in clearing pathogens   
   from circulation; and determining potential means for optimizing and    
   extending immunity in humans.                                           
       The amendment would also require a study by the National Research   
   Council and the Institute of Medicine of the review and approval process
   for such medical countermeasures. Finally, the amendment would provide  
   discretion for the Defense Department to use up to $10.0 million of     
   available research and development funds for the accelerated program.   
       The conferees note the importance to the Department of Defense of   
   producing and acquiring products needed to prevent or mitigate the      
   physiological effects of exposure to biological warfare agents,         
   including vaccines, decontamination capabilities and therapeutic        
   treatments. The Department of Defense has made significant progress in  
   this area, as indicated in the July 2001 Annual Report to Congress on   
   the Department of Defense Chemical and Biological Defense Program.      
       However, the conferees believe that more needs to be done to ensure 
   the development and acquisition of needed products, including the       
   transition of developmental items through the review and approval       
   process, particularly vaccines and drugs. The conferees urge the        
   Department to expand its efforts to acquire new technologies and        
   products to defend against biological warfare agents.                   
                      Chemical and biological protective equipment for military    
           personnel and civilian employees of the Department of Defense (sec.     
           1045)                                                                   
       The Senate bill contained a provision (sec. 1069) that would require
   a report on the requirements of the Department of Defense regarding     
   chemical and biological protective equipment for military personnel and 
   civilian employees of the Department. The provision would also express  
   the sense of Congress on possible sources of funding for such equipment.
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would include an assessment
   of an appropriate level of protection for civilian employees of the     
   Department of Defense against chemical and biological attack, and would 
   eliminate the proposed sense of Congress.                               
                      Sale of goods and services by Naval Magazine, Indian Island, 
           Alaska (sec. 1046)                                                      
       The Senate bill contained a provision (sec. 1070) that would allow  
   the Secretary of the Navy to sell, on a reimbursable basis, goods and   
   services from Naval Magazine, Indian Island, that are not available from
   other commercial sources.                                               
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         


                      Report on procedures and guidelines for embarkation of       
           civilian guests on naval vessels for public affairs purposes (sec. 1047)
       The Senate bill contained a provision (sec. 1072) that would require
   the Secretary of the Navy to submit a plan to Congress to ensure that   
   the embarkation of civilian guests for the purpose of furthering public 
   awareness of the Navy and its mission does not interfere with the       
   operational readiness and safe operation of Navy vessels. The plan would
   cover a number of specific areas.                                       
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that requires the Secretary of  
   the Navy to submit a report to the Committees on Armed Services of the  
   Senate and the House of Representatives setting forth the procedures and
   guidelines of the Navy for the embarkation of civilian guests on naval  
   vessels for public affairs purposes and that modifies the specific areas
   to be covered in the report.                                            
           Technical and clerical amendments (sec. 1048)                           

       The House amendment contained a provision (sec. 1046) making        
   technical and clerical amendments to title 10, United States Code, and  
   related statutes.                                                       
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Termination of referendum requirement regarding continuation 
           of military training on the island of Vieques, Puerto Rico, and         
           imposition of additional conditions on closure of training range (sec.  
           1049)                                                                   
       The House amendment contained a provision (sec. 1042) that would    
   repeal the provisions contained in Title XV of the Floyd D. Spence      
   National Defense Authorization Act for Fiscal Year 2001 that would      
   require a referendum on the continuation of military training on Vieques
   and authorize additional economic assistance for Vieques in the event   
   continued training was approved by such referendum. The House amendment 
   would specify that the Secretary of the Navy could close the Vieques    
   range only if the Chief of Naval Operations and the Commandant of the   
   Marine Corps jointly certified that an alternative training facility was
   available that provided an equivalent or superior level of training at a
   single location.                                                        
       The House amendment would also revise the provisions of that Act    
   transferring jurisdiction of the training range and other lands on the  
   eastern end of Vieques to the Secretary of the Interior if training     
   operations on Vieques were terminated, and would instead require that   
   the land be retained by the Secretary of the Navy.                      
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would give the Secretary  
   of the Navy the authority to close the Vieques Naval Training Range if  
   the Secretary certifies to the President and Congress that an           
   alternative training facility or facilities that provide equivalent or  
   superior training exist and are available. The Secretary's certification
   would take into account the views and recommendations of the Chief of   
   Naval Operations and the Commandant of the Marine Corps. If the         
   Secretary terminates training operations on Vieques, the lands on the   
   eastern end of the island would be transferred to the jurisdiction of   
   the Secretary of the Interior.                                          
       The conferees note the views of the administration on this matter,  
   as stated in a letter from the Deputy Secretary of Defense on November  
   29, 2001:                                                               

                    Consistent with the commitments made by both the    
          President and Secretary England, the Navy remains committed to
          identifying a suitable alternative and is planning to         
          discontinue training operations on the island of Vieques in   
          May of 2003, contingent upon the identification and           
          establishment of a suitable alternative. However, until a     
          suitable alternative is established, Vieques remains an       
          important element in the training of our forces deploying to  
          fight the war.                                                
                                  SUBTITLE F--OTHER MATTERS                       

           Assistance for firefighters (sec. 1061)                                 

       The Senate bill contained a provision (sec. 1071) that would        
   increase the authorization of appropriations for federal grants to state
   or local firefighters in section 33 of the Federal Fire Prevention and  
   Control Act of 1974, as added by title XVII of the Floyd D. Spence      
   National Defense Authorization Act for Fiscal Year 2001, from $300.0    
   million to $600.0 million in fiscal year 2002, and would extend and     
   increase the authorizations to $800.0 million in fiscal year 2003 and   
   $1.0 billion in fiscal year 2004.                                       
       The House amendment contained a provision (sec. 1049) that would    
   name the program after the late Floyd D. Spence and would state the     
   sense of Congress that the grant program should be reauthorized at      
   increased funding levels.                                               
       The House recedes with an amendment that would increase the         
   authorization of appropriations for these grants to $900.0 million per  
   year for fiscal years 2002, 2003 and 2004, clarify that grants under    
   this program would be available for training and equipment to respond to
   terrorism or the use of weapons of mass destruction, and specify that up
   to three percent of the funds authorized for these grants could be used 
   for administration of the grant program by the Federal Emergency        
   Management Agency.                                                      
                      Extension of times for Commission on the Future of the United
           States Aerospace Industry to report and to terminate (sec. 1062)        
       The Senate bill contained a provision (sec. 1026) that would ensure 
   that the Commission on the Future of the United States Aerospace        
   Industry has a full year to carry out its work and to allow the         
   commission 60 rather than 30 days to archive documents and complete     
   other activities after the submission of its final report.              
    The House amendment contained a similar provision (sec. 1054).         

    The Senate recedes with a technical amendment.                         

           Appropriations to Radiation Exposure Compensation Trust Fund (sec. 1063)

       The Senate bill contained a provision (sec. 1066) that would amend  
   the Radiation Exposure Compensation Act to make mandatory appropriations
   for fiscal years 2002 through 2011.                                     
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Waiver of vehicle weight limits during periods of national   
           emergency (sec. 1064)                                                   
       The Senate bill contained a provision (sec. 1076) that would        
   authorize the Secretary of Transportation, in consultation with the     
   Secretary of Defense, to waive certain vehicle weight limits on         
   specified portions of the Interstate highway system during a period of  
   national emergency.                                                     
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Repair, restoration, and preservation of Lafayette Escadrille
           Memorial, Marnes-la-Coquette, France (sec. 1065)                        
       The Senate bill contained a provision (sec. 333) that would         
   authorize the Secretary of the Air Force to make a grant to the         
   Lafayette Escadrille Memorial Foundation, Inc. of up to $2.0 million for
   repair, restoration, and preservation of the Lafayette Escadrille       
   Memorial.                                                               
       The House amendment contained a similar provision (sec. 1048) that  
   contained findings regarding the volunteer aviators who fought with the 
   Lafayette Escadrille during World War I and the state of the memorial,  
   and that would express the sense of Congress that funds should be       
   provided to restore the memorial.                                       
       The House recedes with an amendment that would authorize the        
   Secretary of the Air Force to make the grant after he submits a report  
   on the contributions to the restoration made by the government of       
   France. The conferees also agree to require an annual report on the use 
   of the grant funds, to require that the Foundation make their records   
   available for audit by the Air Force and the General Accounting Office, 
   and to require an engineering analysis of and report on the cost of     
   fully restoring the memorial. The additional cost of the engineering    
   analysis is not intended to reduce the amount of the grant to the       
   Foundation. The cost of both the grant and the engineering analysis     
   would be funded from the operation and maintenance account of the Air   
   Force.                                                                  
       The conferees do not intend this provision to establish a precedent 
   for federal funding of privately operated memorials.                    
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Action to promote national defense features program                     

       The House amendment contained a provision (sec. 1053) that would    
   direct the Secretary of Defense to certify to the Federal Maritime      
   Commission restrictive trade practices for cases in which vessels built,
   or to be built, under the National Defense Features (NDF) program are   
   involved.                                                               
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

       The conferees agree the NDF program has the potential to provide    
   incentive for construction of commercial ships in the U.S.              
       The strategic sealift NDF program provides compensation for         
   commercial ships that have Defense Department unique alterations        
   required for carrying defense cargo. The program was intended to reduce 
   the requirement for government-owned ships by supplementing them, when  
   required, with commercial shipping capable of carrying Defense          
   Department unique cargo such as tanks, heavy vehicles, and ammunition.  
       The NDF program can only be successful if commercial ship owners    
   decide to build ships in U.S. shipyards based on the potential for      
   successful operations when not involved in defense department           
   operations.                                                             
       Although it is not the responsibility of the Secretary of Defense to
   monitor commercial shipping trade issues, it is within the purview of   
   the Secretary to assess and report to Congress on the Defense           
   Department's ability to provide the required strategic sealift.         
       Thus, the Secretary is directed to notify Congress when he          
   determines that a strategic sealift deficiency exists, and measures to  
   correct such a deficiency are not being undertaken because of the       
   unwillingness of commercial ship owners to participate in the NDF       
   program.                                                                
           Assignment of members to assist border patrol and control               

       The House amendment contained a provision (sec. 1024) that would    
   authorize the use of military personnel to assist the Immigration and   
   Naturalization Service and the Customs Service in preventing the entry  
   of terrorists, drug traffickers, weapons of mass destruction, illegal   
   narcotics and related items into the United States.                     
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

       In the wake of the events of September 11, the conferees believe    
   that a full review of the strategy, roles and responsibilities of the   
   Department of Defense in combating terrorism is warranted. Therefore,   
   the conferees direct elsewhere in this report that the Secretary of     
   Defense conduct a study of the appropriate role of the Department with  
   respect to homeland security and report to Congress on such matters.    
                      Authority to pay gratuity to members of the armed forces and 
           civilian employees of the United States for slave labor performed for   
           Japan during World War II                                               
       The Senate bill contained a provision (sec. 1064) that would        
   authorize the Secretary of Veterans Affairs to pay a $20,000 gratuity to
   a veteran or civilian internee who: (1) served in or with United States 
   combat forces during World War II; (2) was captured and held as a       
   prisoner of war by Japan; and (3) was required to perform slave labor   
   for Japan.                                                              
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

           Contingent authorization of appropriations                              

       The Senate bill contained a title (title XIII) making the           
   authorization of certain funds contingent upon future action by the     
   Congress.                                                               
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

           Demilitarization of significant military equipment                      

       The Senate bill contained a provision (sec. 1062) that would provide
   authority to ensure demilitarization of significant military equipment  
   formerly owned by the Department of Defense (DOD).                      
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

                      Information and recommendations on congressional reporting   
           requirements applicable to the Department of Defense                    
       The Senate bill contained a provision (sec. 1021) that would require
   the Secretary of Defense to identify recurring reporting requirements in
   the Department of Defense (DOD) that the Secretary believes to be       
   unnecessary.                                                            
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

                      Reductions in authorizations of appropriations for Department
           of Defense for management efficiencies                                  
       The Senate bill contained a provision (sec. 1002) that would have   
   reduced the amounts authorized to be appropriated to the Department of  
   Defense for fiscal year 2002 by $1.6 billion to reflect savings to be   
   achieved through the implementation of the provisions of title VIII of  
   the Senate bill and other management efficiencies.                      
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees agreed to reductions of $1.3 billion for management   
   reform initiatives. These reductions are included in titles I, II and   
   III of this Act.                                                        
                      Release of restriction on use of certain vessels previously  
           authorized to be sold                                                   
       The Senate bill contained a provision (sec. 1220) that would relax  
   certain restrictions placed on the sale of two vessels authorized by    
   section 3603(a) of the Strom Thurmond National Defense Authorization Act
   for Fiscal Year 1999.                                                   
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

                      Revision in types of excess naval vessels for which approval 
           by law is required for disposal to foreign nations                      
       The House amendment contained a provision (sec. 1011) that would    
   amend subsection (a) of section 7307 of title 10 to change the          
   requirement for specific congressional approval of disposal of vessels  
   to foreign nations from ``naval vessels'' to ``combatant naval          
   vessels.''                                                              
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                      Revision of annual report to Congress on National Guard and  
           reserve component equipment                                             
       The House amendment contained a provision (sec. 1033) that would    
   revise the annual report to Congress on National Guard and reserve      
   component equipment.                                                    
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                      Sense of the Senate that the Secretary of the Treasury should
           immediately issue savings bonds, to be designated as ``Unity Bonds''    
       The Senate bill contained a provision (sec. 1074) that would express
   the sense of the Senate that the Secretary of the Treasury should       
   immediately issue savings bonds, to be designated as ``Unity Bonds,'' in
   response to the terrorist attacks against the United States on September
   11, 2001.                                                               
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The decision not to include this provision in this conference report
   does not reflect any change in the strong support for the issuance of   
   savings bonds in both Houses of Congress, as expressed by the Senate    
   when it approved this provision and by the House of Representatives when
   it approved H.R. 2899, the ``Freedom Bonds Act of 2001''.               
           Transfer of Vietnam-era F 4 to non-profit museum                        

       The House amendment contained a provision (sec. 1044) that would    
   authorize the Secretary of the Air Force to convey a surplus F 4        
   aircraft to the National Aviation Museum and Foundation of Oklahoma.    
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                                TITLE XI--CIVILIAN PERSONNEL                      

                               LEGISLATIVE PROVISIONS ADOPTED                     

                    SUBTITLE A--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL          

                      Personnel pay and qualifications authority for Department of 
           Defense Pentagon Reservation civilian law enforcement and security force
           (sec. 1101)                                                             
       The Senate bill contained a provision (sec. 1075) that would        
   authorize the Secretary of Defense to establish pay rates for Pentagon  
   civilian law enforcement and security personnel that are comparable to  
   other federal law enforcement and security organizations within the     
   vicinity of the Pentagon.                                               
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Pilot program for payment of retraining expenses (sec. 1102)            

       The House amendment contained a provision (sec. 1102) that would    
   authorize the Department of Defense (DOD) to establish a pilot program  
   to pay retraining expenses for DOD employees scheduled for involuntary  
   separation.                                                             
    The Senate bill contained a similar provision (sec. 1123).             

    The Senate recedes with a clarifying amendment.                        

           Authority of civilian employees to act as notaries (sec. 1103)          

       The Senate bill contained a provision (sec. 584) that would clarify 
   the authority of civilian attorneys in military legal assistance offices
   and certain civilian employees to perform notarial acts.                
    The House amendment contained a similar provision (sec. 1109).         

    The House recedes.                                                     

                      Authority to appoint certain health care professionals in the
           excepted service (sec. 1104)                                            
       The Senate bill contained a provision (sec. 1125) that would        
   authorize the Secretary of Defense to exempt certain health care        
   professionals from examination for appointment in the competitive civil 
   service.                                                                
    The House amendment contained no similar provision.                    


       The House recedes with an amendment that would authorize the        
   Secretary of Defense to appoint certain health care professionals in the
   excepted service without regard to certain provisions of chapter 33 of  
   title 5, United States Code regarding examination, certification, and   
   appointment in the civil service.                                       
                     SUBTITLE B--CIVILIAN PERSONNEL MANAGEMENT GENERALLY          

           Authority to provide hostile fire pay (sec. 1111)                       

       The Senate bill contained a provision (sec. 622) that would         
   authorize hostile fire or imminent danger pay for civilians.            
    The House amendment contained no similar provision.                    

       The House recedes with a clarifying amendment that removes          
   limitations to duty in the United States and duty in specified areas of 
   the Pentagon.                                                           
           Payment of expenses to obtain professional credentials (sec. 1112)      

       The House amendment contained a provision (sec. 1103) that would    
   authorize federal agencies to pay for employee credentials, professional
   licenses, and professional certification.                               
    The Senate bill contained a similar provision (sec. 1126).             

    The Senate recedes.                                                    

                      Parity in establishment of wage schedules and rates for      
           prevailing rate employees (sec. 1113)                                   
       The House amendment contained a provision (sec. 1110) that would    
   require the Department of Defense, when establishing wage schedules and 
   rates for prevailing wage employees, to consider rates paid for         
   comparable positions in private industry in the nearest wage area that  
   is most similar to the wage area for which wage rates are being         
   established when there are insufficient positions in the local industry 
   upon which to establish wage schedules and rates.                       
    The Senate bill contained no similar provision.                        

       The Senate recedes with a clarifying amendment that would make this 
   provision effective on the first normal effective date of the applicable
   wage survey adjustment occurring after the enactment of this Act.       
           Modification of limitation on premium pay (sec. 1114)                   

       The House amendment contained a provision (sec. 1107) that would    
   amend section 5547 of title 5, United States Code, to change the period 
   used for limiting the amount of overtime pay an employee may earn from a
   biweekly to an annual basis, permitting more flexibility in scheduling  
   overtime across the Federal Government.                                 
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would give heads of       
   agencies discretionary authority to use the calendar year as the period 
   for limiting the amount of overtime pay for employees performing work   
   that is critical to the mission of the agency.                          
                      Participation of personnel in technical standards development
           activities (sec. 1115)                                                  
       The Senate bill contained a provision (sec. 1124) that would        
   authorize the use of appropriated funds for Department of Defense       
   personnel to participate in meetings to set technical standards for     
   products, manufacturing processes, and management practices.            
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Retention of travel promotional items (sec. 1116)                       

       The Senate bill contained a provision (sec. 1065) that would        
   authorize federal employees of the Executive Branch, members of the     
   foreign service, military members, and their family members to retain   
   for personal use promotional items received as a result of using travel 
   or transportation services paid for by the Executive Branch.            
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would extend the benefit to
   employees of the Judicial Branch and certain employees of the           
   Legislative Branch.                                                     
                      Applicability of certain laws to certain individuals assigned
           to work in the Federal Government (sec. 1117)                           
       The House amendment contained a provision (sec. 1106) that would    
   clarify that state and local government officials detailed to work in   
   federal agencies are subject to the same standards of official conduct  
   that apply to other federal employees.                                  
    The Senate bill contained no similar provision.                        

    The Senate recedes with a technical amendment.                         

                         SUBTITLE C--INTELLIGENCE CIVILIAN PERSONNEL              

                      Authority to increase maximum number of positions in the     
           Defense Intelligence Senior Executive Service (sec. 1121)               

       The Senate bill contained a provision (sec. 1101) that would        
   authorize the Secretary of Defense to increase the number of Defense    
   Intelligence Senior Executive Service positions by the number of Senior 
   Intelligence Service positions eliminated from the Central Intelligence 
   Agency.                                                                 
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would increase the maximum 
   number of positions in the Defense Intelligence Senior Executive Service
   from 517 to 544.                                                        
       The conferees intend that the increase of 27 Defense Intelligence   
   Senior Executive Service positions is to meet the increased senior level
   requirements of the National Imagery and Mapping Agency (NIMA) resulting
   from the transfer of responsibilities from the Central Intelligence     
   Agency to NIMA.                                                         
                         SUBTITLE D--MATTERS RELATING TO RETIREMENT               

                      Improved portability of retirement coverage for employees    
           moving between civil service employment and employment by               
           nonappropriated fund instrumentalities (sec. 1131)                      
       The Senate bill contained a provision (sec. 1112) that would remove 
   the requirement that employees who transfer between non-appropriated and
   appropriated fund employment systems have five or more years of service 
   in a system to elect to continue in the Civil Service Retirement System,
   Federal Employees Retirement System, or Non-appropriated Fund Retirement
   System, as applicable.                                                  
    The House amendment contained a similar provision (sec. 1104).         

    The House recedes.                                                     

                      Federal employment retirement credit for nonappropriated fund
           instrumentality service (sec. 1132)                                     
       The Senate bill contained a provision (sec. 1111) that would        
   authorize federal employees the opportunity to elect to receive either  
   Civil Service Retirement System or Federal Employees Retirement System  
   credit for prior nonappropriated fund service.                          
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Modification of limitations on exercise of voluntary         
           separation incentive pay authority and voluntary early retirement       
           authority (sec. 1133)                                                   
       The Senate bill contained a provision (sec. 1113) that would        
   authorize the Secretary of Defense, during fiscal year 2003, to use     
   voluntary separation incentives and voluntary early retirement authority
   for workforce restructuring to meet mission needs, achieve strength     
   reductions, correct skill imbalances or reduce the number of high-grade,
   managerial, or supervisory positions.                                   
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would establish a limit of 
   2000 employees in fiscal year 2002 and 6000 employees in fiscal year    
   2003 who could be separated under this provision, and would provide that
   this provision may be superceded by another provision of law taking     
   effect after the effective date of this Act.                            
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Continued applicability of certain civil service protections 
           for employees integrated into the National Imagery and Mapping Agency   
           from the Defense Mapping Agency                                         
       The Senate bill contained a provision (sec. 1102) that would clarify
   that former Defense Mapping Agency personnel transferred into the       
   National Imagery and Mapping Agency pursuant to the National Defense    
   Authorization Act for Fiscal Year 1997 retain certain civil service     
   protections for as long as they remain Department of Defense employees  
   employed without a break in service in the National Imagery and Mapping 
   Agency.                                                                 
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

                      Removal of requirement that granting civil service           
           compensatory time be based on amount of irregular or occasional overtime
           work                                                                    
       The House amendment contained a provision (sec. 1105) that would    
   repeal the requirement that compensatory time only be granted to federal
   employees if the overtime performed is irregular or occasional.         
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                      Undergraduate training program for employees of the National 
           Imagery and Mapping Agency                                              
       The House amendment contained a provision (sec. 1101) that would    
   authorize the National Imagery and Mapping Agency to establish an       
   undergraduate training program to recruit employees with critical       
   skills.                                                                 

    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                      Use of common occupational and health standards as a basis   
           for differential payments made as a consequence of exposure to asbestos 
       The House amendment contained a provision (sec. 1108) that would    
   establish a common standard for payment of hazardous duty differential  
   pay for reason of exposure to asbestos for prevailing rate and general  
   schedule federal employees.                                             
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

       The conferees direct the Secretary of Defense to coordinate with    
   interested parties to develop an appropriate standard for exposure to   
   asbestos for prevailing rate and general schedule federal employees,    
   taking into account the nature of the work and the increased likelihood 
   of exposure to asbestos of prevailing rate and general schedule federal 
   employees.                                                              
                        TITLE XII--MATTERS RELATING TO OTHER NATIONS              

                               LEGISLATIVE PROVISIONS ADOPTED                     

                 SUBTITLE A--MATTERS RELATED TO ARMS CONTROL AND MONITORING       

                      Clarification of authority to furnish nuclear test monitoring
           equipment to foreign governments (sec. 1201)                            
       The Senate bill contained a provision (sec. 1214) that would amend  
   section 1203 of the Floyd D. Spence National Defense Authorization Act  
   for Fiscal Year 2001 to clarify that the Department of Defense has the  
   authority to transfer title of existing nuclear test monitoring         
   equipment to foreign host nation governments, and to inspect and        
   maintain such equipment to ensure that it continues to provide the data 
   needed to satisfy United States nuclear test monitoring requirements.   
   The provision would also redesignate the existing authority as section  
   2565 of title 10, United States Code.                                   
    The House amendment contained a similar provision.                     

    The House recedes with a technical amendment.                          

                      Limitation on funding for Joint Data Exchange Center in      
           Moscow (sec. 1202)                                                      
       The House amendment contained a provision (sec. 1204) that would    
   prohibit the Secretary of Defense from obligating or expending any      
   fiscal year 2002 funds for the Joint Data Exchange Center (JDEC) in     
   Moscow until 30 days after the Secretary of Defense submits to the      
   congressional defense committees an agreement between the United States 
   and Russia to share the costs of the JDEC and to exempt U.S. government 
   personnel from liability under Russian laws for activities associated   
   with the JDEC.                                                          
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would prohibit 50 percent 
   of the funds available for the JDEC from being obligated or expended    
   until the agreement is submitted to the congressional defense           
   committees.                                                             
       The conferees believe that the JDEC is an important element of the  
   increased cooperation between the United States and Russia and urge the 
   Secretary to complete the necessary negotiations as quickly as possible.
                      Support of United Nations-sponsored efforts to inspect and   
           monitor Iraqi weapons activities (sec. 1203)                            
       The House amendment contained a provision (sec. 1205) that would    
   extend the authority under section 1505 of the Weapons of Mass          
   Destruction Act of 1992 (section 5859a of title 22, United States Code) 
   for the Department of Defense to expend up to $15.0 million in fiscal   
   year 2002 in support of United Nations-sponsored inspection and         
   monitoring efforts in Iraq. The provision would also change the         
   requirement for quarterly reports by the Department of Defense to an    
   annual report.                                                          
       The Senate bill contained a provision (sec. 1211) that would        
   similarly extend the authority to expend $15.0 million in support of the
   United Nations-sponsored inspection and monitoring effort but did not   
   change the requirement for quarterly reports.                           
    The House recedes.                                                     

                      Authority for employees of Federal Government contractors to 
           accompany chemical weapons inspection teams at government-owned         
           facilities (sec. 1204)                                                  
       The Senate bill contained a provision (sec. 1215) that would amend  
   section 303(b)(2) and section 304(c) of the Chemical Weapons Convention 
   Implementation Act of 1998 (22 U.S.C. 6723(b)(2) and 6724(c)) to permit 
   Federal Government contractor personnel to participate in inspections of
   United States Government-owned facilities conducted under that Act if   
   led by a Federal Government employee.                                   
    The House amendment contained a similar provision.                     

    The Senate recedes with a technical amendment.                         

                      Plan for securing nuclear weapons, material, and expertise of
           the states of the former Soviet Union (sec. 1205)                       
       The House amendment contained a provision (sec. 1051) that would    
   direct the President to submit to Congress a plan for cooperation with  
   Russia to dispose of excess nuclear materials and nuclear weapons, and  
   to prevent the outflow of Russian scientific expertise in the area of   
   weapons of mass destruction. The provision included specific plan       
   elements and required the President to consult with Russia and Congress 
   in developing the plan.                                                 
    The Senate bill contained no similar provision.                        

    The Senate recedes with an amendment.                                  

       The amendment expands the scope of the plan to include the other    
   states of the former Soviet Union and adds the requirement that the plan
   include programs to assist Russia in downsizing its nuclear weapons     
   research and production complex. In addition, the amendment requires the
   President to consider establishing an interagency committee to          
   coordinate and monitor the nonproliferation efforts of the United       
   States, to recommend policy and budget options for the U.S.             
   nonproliferation program, and to encourage increased coordination with  
   and greater participation of international partners, including efforts  
   to increase international contributions for such programs.              
       The conferees note that the administration has been reviewing the   
   current nonproliferation programs. The conferees urge the administration
   to bring this review to a close, decide on a path forward for these     
   important programs, and implement a coordinated government-wide         
   nonproliferation strategy as soon as possible. As President Bush stated 
   in his November 13, 2001 joint statement with Russian President Putin:  
   ``Our highest priority is to keep terrorists from acquiring weapons of  
   mass destruction. Today we agreed that Russian and American experts will
   work together to share information and expertise to counter the threat  
   from bioterrorism. We agreed that it is urgent that we improve the      
   physical protection and accounting on nuclear materials and prevent     
   illicit nuclear trafficking.''                                          
             SUBTITLE B--MATTERS RELATING TO ALLIES AND FRIENDLY FOREIGN NATIONS  

           Acquisition of logistical support for security forces (sec. 1211)       

       The House amendment contained a provision (sec. 1202) that would    
   amend the Multinational Force and Observers (MFO) Participation         
   Resolution (Public Law 97 132) to authorize the President to approve    
   contracting out the logistical and aviation support for the MFO mission 
   currently performed by U.S. soldiers. The provision would also provide  
   that U.S. sponsored contract support could be provided to the MFO       
   mission without reimbursement if the President determines that such     
   action enhances or supports the national security of the United States. 
    The Senate bill contained an identical provision (sec. 1217).          

    The conference agreement includes this provision.                      

                      Extension of authority for international cooperative research
           and development projects (sec. 1212)                                    
       The Senate bill contained a provision (sec 1212) that would amend   
   section 2350 of title 10, United States Code, to expand the entities, to
   include friendly foreign countries, with which the Department of Defense
   is authorized to enter into cooperative research and development        
   agreements.                                                             
    The House amendment contained no similar provision.                    

       The House recedes with a clarifying amendment and an amendment that 
   requires the Secretary of Defense to submit a report to Congress 30 days
   prior to implementation of any proposed memorandum of understanding (or 
   other formal agreement) for cooperative research and development with a 
   country that is not a NATO member nation or a major non-NATO ally.      
                      Cooperative agreements with foreign countries and            
           international organizations for reciprocal use of test facilities (sec. 
           1213)                                                                   
       The Senate bill contained a provision (sec. 1213) that would        
   authorize the Secretary of Defense, with the concurrence of the         
   Secretary of State, to enter into a memorandum of understanding with a  
   foreign country or international organization to provide for the        
   testing, on a reciprocal basis, of defense equipment. The provision     
   would require the charging of direct costs and would authorize the      
   charging of indirect costs, but only to the extent specified in the     
   memorandum or other agreement.                                          
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

           Sense of Congress on allied defense burdensharing (sec. 1214)           

       The Senate bill contained a provision (sec. 1219) that would express
   the sense of the Senate that the efforts of the President to increase   
   burdensharing by allied and friendly nations deserve strong support. The
   provision also expressed the sense of the Senate that host nation       
   support agreements with those nations in which U.S. military personnel  
   are permanently assigned should be negotiated consistent with section   
   1221(a)(1) of the National Defense Authorization Act for Fiscal Year    
   1998, which sets forth a goal of obtaining financial contributions from 
   such host nations that amount to 75 percent of the nonpersonnel costs.  
    The House amendment contained no similar provision.                    

       The House recedes with a clarifying amendment and an amendment that 
   makes the provision a sense of Congress.                                
                                     SUBTITLE C--REPORTS                          

                      Report on significant sales and transfers of military        
           hardware, expertise, and technology to the People's Republic of China   
           (sec. 1221)                                                             
       The House amendment contained a provision (sec. 1203) that would    
   amend section 1202 of the National Defense Authorization Act for Fiscal 
   Year 2000. This amendment would require the Secretary of Defense to     
   submit, as part of the existing report requirement, a one-time report to
   the Congress no later than March 1, 2002 on the transfer of equipment,  
   expertise, and technology from the former Soviet states to the People's 
   Republic of China.                                                      
    The Senate bill contained no such provision.                           

       The Senate recedes with an amendment that would require the         
   Secretary of Defense to report to Congress on significant transfers of  
   equipment, expertise and technology to the People's Republic of China.  
   The amendment would remove the reference to the former states of the    
   Soviet Union, and modifies the reporting requirement.                   
                      Repeal of requirement for reporting to Congress on military  
           deployments to Haiti (sec. 1222)                                        
       The House amendment contained a provision (sec. 1206) that would    
   repeal the report required by section 1232 of the National Defense      
   Authorization Act for Fiscal Year 2000 concerning military deployments  
   to Haiti.                                                               
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Report by Comptroller General on provision of defense        
           articles, services, and military education and training to foreign      
           countries and international organizations (sec. 1223)                   
       The House amendment contained a provision (sec. 1207) that would    
   require the Comptroller General of the United States to study the       
   benefits, costs, and readiness impact to the U.S. Armed Forces with     
   regard to defense articles, services, or military education and training
   provided under the authority of the Foreign Assistance Act of 1961      
   (Public Law 87 195 as amended) or any similar provision of law. The     
   provision would require the Comptroller General to submit to Congress an
   interim report no later than April 15, 2002, and a final report by      
   August 1, 2002, on the findings of the study.                           
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Limitation on number of military personnel in Colombia                  

       The House amendment contained a provision (sec. 1208) that would    
   limit to 500 the number of U.S. military personnel authorized to be on  
   duty in the Republic of Colombia at any time. The limit would not apply 
   to military personnel deployed to Colombia for the purpose of rescuing  
   or retrieving U.S. Government personnel, military personnel attached to 
   the U.S. Embassy, military personnel engaged in relief operations, or   
   nonoperational transient military personnel.                            
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

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

                      Specification of Cooperative Threat Reduction programs and   
           funds (sec. 1301)                                                       
       The Senate bill contained a provision (sec. 1201) that would define 
   the Cooperative Threat Reduction (CTR) program, define the CTR funds as 
   those authorized to be appropriated in section 301 of this conference   
   report, and authorize the CTR funds to be available for obligation for  
   three fiscal years.                                                     
    The House amendment contained an identical provision (sec. 1301).      

    The conference agreement includes this provision.                      

           Funding allocations (sec. 1302)                                         

       The Senate bill contained a provision (sec. 1202) that would        
   authorize $403.0 million, the amount included in the budget request, for
   the Cooperative Threat Reduction (CTR) programs. The provision would    
   also establish the funding levels for each of the program elements in   
   the CTR program and provide limited authority to vary the amounts for   
   specific program elements.                                              
    The House amendment contained a similar provision (sec. 1302).         

    The Senate recedes with a technical amendment.                         

       The conferees include a provision that would authorize $403.0       
   million for the CTR programs, specify the funding levels for the        
   component parts of the program, and provide limited authority to vary   
   the amounts for specific program elements. The provision combines the   
   amounts provided for chemical weapons destruction activity in Russia    
   into a single category. The conferees have excluded nuclear weapons     
   transportation security from the funding limitation. The provision would
   also remove the funding limitation for nuclear weapons transportation   
   security contained in section 1302 (c)(3) of the Floyd D. Spence        
   National Defense Authorization Act for Fiscal Year 2001.                
           Limitation on use of funds until submission of reports (sec. 1303)      

       The House amendment contained a provision (sec. 1303) that would    
   prohibit the obligation or expenditure of fiscal year 2002 Cooperative  
   Threat Reduction (CTR) program funds until 30 days after submission of  
   the reports required by section 1308 of the Floyd D. Spence National    
   Defense Authorization Act for Fiscal Year 2001.                         
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would prohibit the        
   Secretary of Defense from spending more than 50 percent of the funds    
   available for the CTR program for fiscal year 2002 until the Secretary  
   submits the reports required by the Floyd D. Spence National Defense    
   Authorization Act for Fiscal Year 2001.                                 
                      Requirement to consider use of revenue generated by          
           activities carried out under Cooperative Threat Reduction programs (sec.
           1304)                                                                   
       The House amendment contained a provision (sec. 1304) that would    
   require the Secretary of Defense to submit a report describing plans to 
   monitor the use of revenue generated by Cooperative Threat Reduction    
   (CTR) program activities in Russia and Ukraine.                         
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would direct the Secretary
   of Defense to consider the revenue generated by CTR program-related     
   activities in Russia when carrying out the CTR program.                 
                      Prohibition against use of funds for second wing of fissile  
           material storage facility (sec. 1305)                                   
       The House amendment contained a provision (sec. 1305) that would    
   prohibit the use of all Cooperative Threat Reduction (CTR) program funds
   for construction of a second wing for the fissile material storage      
   facility in Mayak, Russia. The provision would also cap the amount of   
   funds spent on the first wing of the facility at $412.6 million.        
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would prohibit fiscal year
   2002 CTR funds, and CTR funds previously authorized and appropriated,   
   from being used to construct a second wing of the storage facility for  
   fissile material storage in Mayak, Russia. The conferees believe that if
   the Department of Defense should decide in the future that a second wing
   of the facility is needed, the Secretary should specifically request    
   funds for this purpose. The provisions would also clarify that the      
   spending cap on the Mayak facility would not apply to any expenditures  
   related to security.                                                    
                      Prohibition against use of funds for certain construction    
           activities (sec. 1306)                                                  
       The House amendment contained a provision (sec. 1306) that would    
   prohibit the use of Cooperative Threat Reduction (CTR) program funds    
   from being used for construction or refurbishment of fossil fuel energy 
   plants in Russia.                                                       
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would prohibit the use of 
   fiscal year 2002 funds from being used for construction activities      
   associated with the program with the Russian government to eliminate the
   production of weapons grade plutonium. The conferees direct the         
   Secretary of Defense to use the funds authorized in section 1302 to     
   identify a workable cooperative program and plan that would allow these 
   reactors to be shut down or to stop producing plutonium as quickly and  
   as inexpensively as possible. The plan should include specific          
   milestones and budgetary information for all construction,              
   manufacturing, and operational costs associated with the plan. In       
   formulating the approach, the Secretary should take into consideration  
   the ability of the Russian government and the international community to
   contribute to this effort. The conferees continue to support the goal of
   eliminating plutonium production and urge the Secretary to request funds
   in the future for this effort to support an agreed-upon program plan.   
   The conferees note that this program has been delayed by the lack of an 
   agreed-upon program plan for several years.                             
                      Reports on activities and assistance under Cooperative Threat
           Reduction programs (sec. 1307)                                          
       The House amendment contained a provision (sec. 1307) that would    
   amend section 1308 of the Floyd D. Spence National Defense Authorization
   Act for Fiscal Year 2001 to modify the report on activities and         
   assistance under Cooperative Threat Reduction (CTR) programs.           
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

           Chemical weapons destruction (sec. 1308)                                

       The Senate bill contained a provision (sec. 1203) that would amend  
   section 1305 of the National Defense Authorization Act for Fiscal Year  
   2000 to establish a certification process by the Secretary of Defense   
   that must be completed before any funds could be spent for construction 
   of a chemical weapons destruction facility at Shchuch'ye, Russia. The   
   provision would also provide authority for the President to waive the   
   prerequisite dealing with information provided by Russia about its      
   stockpile of chemical munitions. The provision also required a          
   commitment on the part of others to assist with the costs related to the
   facility.                                                               
       The House amendment contained a similar provision (sec. 1309) that  
   would require preconditions but did not provide authority to waive the  
   one prerequisite and did not contain the requirement for a commitment by
   others to assist with the costs.                                        
       The Senate recedes with an amendment that would include the         
   requirement on cost contributions by others and would clarify the       
   requirements of the certification with respect to the Russian disclosure
   of its chemical weapons. This clarification will allow the certification
   to be made as soon as the United States assesses that the disclosure by 
   Russia is accurate. The conferees believe that the certification, as    
   clarified, can be made promptly, and thus believe that the waiver       
   authority is not required. The conferees support this important program 
   and urge the Secretary to implement this program as soon as possible.   
                      Additional matter in annual report on activities and         
           assistance under Cooperative Threat Reduction programs (sec. 1309)      
       The Senate bill contained a provision (sec. 1205) that would amend  
   the annual report to include a new section describing the amount of the 
   annual commitment from the international community and from Russia for  
   the chemical weapons destruction facility at Shchuch'ye.                
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Report on responsibility for carrying out Cooperative Threat 
           Reduction programs                                                      
       The House amendment contained a provision (sec. 1308) that would    
   require the Secretary of Defense to submit a report containing an       
   assessment of Cooperative Threat Reduction (CTR) projects currently     
   under the auspices of the Department of Defense (DOD) and describing    
   options for transferring responsibility for CTR projects to other       
   agencies, as appropriate.                                               
       The Senate bill contained a related provision (sec. 1204) that would
   require the CTR program to continue to be financed, managed, and        
   implemented by the DOD.                                                 
    The House recedes and the Senate recedes.                              

       The Floyd D. Spence National Defense Authorization Act for Fiscal   
   Year 2001 (NDAA) directed the Secretary to submit a report similar to   
   that requested in the House provision. The Secretary has not submitted  
   this report, which was due in January, 2001. The conferees are aware    
   that the report is complete. The conferees urge the Secretary to submit 
   the required report and other required reports on the CTR program, which
   are also late, as quickly as possible. The conferees note that in spite 
   of statutory changes made in the NDAA to the reporting requirements to  
   accommodate DOD concerns, the DOD still has not submitted the reports   
   required by law.                                                        
                          TITLE XIV--ARMED FORCES RETIREMENT HOME                 

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Amendment of Armed Forces Retirement Home Act of 1991 (sec. 1401)       

       The Senate bill contained a provision (sec. 1041) that would revise 
   the Armed Forces Retirement Home Act of 1991 to implement changes       
   resulting from a Department of Defense review of the management         
   structure of the Armed Forces Retirement Home.                          
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

       The conferees note that the organizational and operational changes  
   reflected in Title XIV reflect the collective judgment and              
   recommendations of the Assistant Secretary of Defense (Force Management 
   Policy), the Vice Chief of Staff of the Army, the Vice Chief of Naval   
   Operations, the Vice Chief of Staff of the Air Force, and the Assistant 
   Commandant of the Marine Corps. The conferees compliment the determined 
   efforts of all involved in reaching a consensus on initiatives to be    
   taken. The commitment of the Department of Defense and the services to  
   the operational efficiency and fiscal well-being of the Armed Forces    
   Retirement Homes is an essential precondition for success.              
       The conferees anticipate that the legislative changes in Title XIV  
   will be complemented by additional departmental and service initiatives 
   (e.g., implementation of a fifty cent increase in the active duty       
   military payroll deduction and recapitalization of facilities). To this 
   end, the conferees urge the Committees on Armed Services of the Senate  
   and the House of Representatives to provide maximum opportunities during
   the second session of the 107th Congress for interested individuals and 
   groups to provide information and recommendations for additional        
   improvements needed in the management and organization of the Armed     
   Forces Retirement Homes.                                                
           Definitions (sec. 1402)                                                 

       The Senate bill contained a provision (sec. 1042) that would define 
   the terms Retirement Home, Local Board, Armed Forces Retirement Home    
   Trust Fund, and Fund.                                                   
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Revision of authority establishing the Armed Forces          
           Retirement Home (sec. 1403)                                             
       The Senate bill contained a provision (sec. 1043) that would        
   establish the Armed Forces Retirement Home as an independent            
   establishment of the Executive Branch to provide residences and related 
   services for certain retired and former members of the armed forces.    
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Chief Operating Officer (sec. 1404)                                     

       The Senate bill contained a provision (sec. 1044) that would        
   authorize the Secretary of Defense to appoint a Chief Operating Officer 
   for the Retirement Home who would be responsible for the overall        
   direction, operation, and management of the Armed Forces Retirement Home
   and who would report to the Secretary of Defense.                       
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

           Residents of Retirement Home (sec. 1405)                                

       The Senate bill contained a provision (sec. 1045) that would repeal 
   the requirement for a resident to reapply for acceptance as a resident  
   when absent from the home for more than 45 consecutive days and         
   establish fees to be paid by residents.                                 
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

           Local boards of trustees (sec. 1406)                                    

       The Senate bill contained a provision (sec. 1046) that would require
   the Secretary of Defense to appoint a local board of trustees for each  
   facility of the Armed Forces Retirement Home to serve in an advisory    
   capacity to the Director of the facility and to the Chief Operating     
   Officer.                                                                
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Directors, Deputy Directors, Associate Directors, and staff  
           of facilities (sec. 1407)                                               
       The Senate bill contained a provision (sec. 1047) that would require
   the Secretary of Defense to appoint a Director and a Deputy Director for
   each facility of the Armed Forces Retirement Home.                      
    The House amendment contained no similar provision.                    

       The House recedes with a clarifying amendment that would also       
   require appointment of an Associate Director to serve as an ombudsman   
   for the residents and to perform other duties assigned by the Director. 
                      Disposition of effects of deceased persons and unclaimed     
           property (sec. 1408)                                                    
       The Senate bill contained a provision (sec. 1048) that would        
   authorize the Director of a facility of the Armed Forces Retirement Home
   to designate an attorney who is a full-time officer or employee of the  
   United States or a member of the armed forces on active duty to serve as
   attorney or agent for the facility in certain probate proceedings.      
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Transitional provisions (sec. 1409)                                     

       The Senate bill contained a transitional provision (sec. 1049) that 
   would authorize the Armed Forces Retirement Home Board to continue to   
   serve and perform the duties of the Chief Operating Officer until the   
   Secretary of Defense appoints the first Chief Operating Officer, and for
   the temporary continuation of the Director of the Armed Forces          
   Retirement Home--Washington and the incumbent Deputy Directors.         
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Conforming and clerical amendments and repeals of obsolete   
           provisions (sec. 1410)                                                  
       The Senate bill contained a provision (sec. 1050) that would make   
   conforming technical amendments to title 24, United States Code.        
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Amendments of other laws                                                

       The Senate bill contained a provision (sec. 1051) that would amend  
   section 4301(2) of title 5, United States Code, to exclude the Chief    
   Operating Officer and the Deputy Directors of the Armed Forces          
   Retirement Home from the definition of employee for purposes of         
   performance appraisals under chapter 43 of title 5, United States Code. 
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    


                    TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM          

                               LEGISLATIVE PROVISIONS ADOPTED                     

                    SUBTITLE A--INCREASED FUNDING FOR COMBATING TERRORISM         

                      Authorization of emergency appropriations under the 2001     
           Emergency Supplemental Appropriations Act for Recovering From and       
           Response to Terrorist Attacks on the United States (secs. 1501 1506)    
       The Senate bill contained a provision (sec. 1010) that would        
   authorize the supplemental appropriations for the Department of Defense 
   enacted in the Emergency Terrorist Response Supplemental Appropriations 
   Act, 2001 (Public Law 107 38), which provided supplemental funding for  
   Department of Defense programs in response to terrorist attacks against 
   the United States. The Senate bill would also require quarterly reports 
   by the Secretary of Defense to the Committees on Armed Services of the  
   Senate and the House of Representatives on the use of funds made        
   available to the Department of Defense, as well as reports on the       
   allocation of funds under that Act that are made available to the       
   Department of Defense subject to the 15-day notification requirement.   
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would: authorize           
   supplemental appropriations for the Department of Defense and the       
   national security activities of the Department of Energy, including the 
   National Nuclear Security Administration, for combating terrorism for   
   fiscal year 2001 and 2002, including the use of such appropriations to  
   carry out military construction projects; and clarify the reporting     
   requirement. The conferees expect the information provided by the       
   Department of Defense and the Department of Energy on the use of funds  
   appropriated in this supplemental, regardless of whether the funds were 
   available immediately, subject to 15-day notification, or required      
   subsequent appropriation by Congress, to be consistent with the level of
   detail provided for previous supplementals, including a description of  
   the accounts and programs for which the funds were used for each        
   service.                                                                
                 SUBTITLE B--POLICY MATTERS RELATING TO COMBATING TERRORISM       

                      Study and report on the role of the Department of Defense    
           with respect to homeland security (sec. 1511)                           
       The Senate bill contained a provision (sec. 1022) that directed the 
   Secretary of Defense to submit a report to Congress on the Department of
   Defense (DOD) policies, plans and procedures for combating terrorism.   
   The intent of the provision was to achieve a clear description of the   
   structure, strategy, roles, relationships and responsibilities of the   
   various DOD entities with responsibilities relating to combating        
   terrorism. The report was to serve as the means for the single          
   designated civilian in the DOD to address the various issues pertaining 
   to combating terrorism.                                                 
       The House amendment contained four provisions related to the        
   Department's role in homeland security or combating terrorism. One      
   provision (sec. 1032) required the Secretary of Defense to submit to    
   Congress a report on the appropriate role of the DOD in homeland        
   security matters. A second House provision (sec. 1511) required the     
   Secretary of Defense to submit to Congress and the President a report   
   containing an assessment of the Department's ability to provide support 
   for the consequence management activities of other federal, state, and  
   local agencies, taking into account the terrorist attacks on the United 
   States on September 11, 2001. A third House provision (sec. 1512)       
   directed the Secretary of Defense to report on the ability of the DOD to
   protect the United States from airborne threats, including those        
   originating from within U.S. borders. A fourth House provision (sec.    
   1514) directed the Secretary of Defense to seek an agreement with the   
   Directors of the Federal Bureau of Investigation and Federal Emergency  
   Management Agency that clarifies the roles and missions of the DOD      
   Weapons of Mass Destruction-Civil Support Teams (WMD-CSTs) relative to  
   those agencies in crisis response and consequence management efforts.   
       The conferees agreed to merge the four House amendment provisions   
   into the Senate bill provision. The conferees direct the Secretary of   
   Defense to conduct a study on the appropriate role for the Department of
   Defense with respect to homeland security. The study would include a    
   description of the plans, policies, and procedures of the Department of 
   Defense for combating terrorism. It would also identify how the DOD will
   interact with the Office of Homeland Security, and how                  
   intelligence-sharing efforts of the Department will be coordinated      
   relative to other federal, state and local entities. In addition, the   
   report would address the ability of the DOD to protect the United States
   from airborne attacks, and the manner in which the WMD CSTs interact    
   with lead federal agencies during crisis response or consequence        
   management situations. The report will also discuss improvements that   
   could be made to enhance homeland security and recommended actions and  
   programs aimed at addressing vulnerabilities.                           

                      Combating Terrorism Readiness Initiatives Fund for combatant 
           commands (sec. 1512)                                                    
       The Senate bill contained a provision (sec. 1008) that would codify 
   in title 10, United States Code, the authority and specific activities  
   to be funded under the Combating Terrorism Readiness Initiative Fund.   
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Conveyances of equipment and related materials loaned to     
           state and local governments as assistance for emergency response to a   
           use or threatened use of a weapon of mass destruction (sec. 1513)       
       The Senate bill contained a provision (sec. 1063) that would require
   the Department of Defense (DOD) to transfer to state and local          
   authorities training equipment it has loaned to them as part of the     
   Domestic Preparedness Program, which was established in accordance with 
   the Defense Against Weapons of Mass Destruction Act of 1996 (otherwise  
   known as the Nunn-Lugar-Domenici Act) (Title XIV of the National Defense
   Authorization Act for Fiscal Year 1997).                                
       The equipment was purchased by the Department on behalf of cities   
   participating in the Domestic Preparedness Program. That equipment has  
   been permanently retained and maintained on loan due to the legal       
   prohibition against transferring DOD property directly to non-Federal   
   Government agencies. As a result, the Department has been required to   
   inventory, and to hold some liability for, this equipment. In addition, 
   local authorities have incurred the additional task of maintaining      
   records to DOD standards. This one-time transfer was intended to        
   eliminate the financial cost, labor and liabilities associated with this
   equipment so long as it remains DOD property.                           
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

       The conferees agree that this is a one-time transfer and will not   
   set any precedent.                                                      
                      Two-year extension of the Advisory Panel to Assess Domestic  
           Response Capabilities for Terrorism Involving Weapons of Mass           
           Destruction (sec. 1514)                                                 
       The House amendment contained a provision (sec. 1052) that would    
   amend section 1405 of the Strom Thurmond National Defense Authorization 
   Act for Fiscal Year 1999 to extend the Advisory Panel to Assess Domestic
   Response Capabilities for Terrorism Involving Weapons of Mass           
   Destruction (WMD) by two additional years. The life of the panel would  
   thereby be extended until 2003.                                         
    The Senate bill contained no such provision.                           

       The Senate recedes with an amendment to provide compensation to the 
   members of the panel for the days that they serve from the enactment of 
   this Act until they complete their work in 2003.                        
       The conferees recognize that the panel can continue to provide      
   valuable assessments and recommendations to the Federal Government in   
   its efforts to improve federal homeland security efforts. The conferees 
   expect that the panel will study not only WMD, but also conventional and
   cyber terrorist threats.                                                
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Establishment of combating terrorism as a national security mission     

       The House amendment contained a provision (sec. 1513) that would    
   amend section 108(b)(2) of the National Security Act of 1947 to         
   establish that acts of terrorism are included in the term               
   ``aggression.''                                                         
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

       The conferees note that there is general agreement that acts of     
   terrorism are included in the term ``aggression.''                      
                            TITLE XVI--UNIFORMED SERVICES VOTING                  

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Sense of Congress regarding the importance of voting (sec. 1601)        

       The Senate bill contained a provision (sec. 571) that would express 
   the sense of the Senate that each administrator of a federal, state, or 
   local election should be aware of the importance of the ability of each 
   uniformed services voter to exercise the right to vote; that the        
   administrators should perform their duties with the intent to ensure    
   that each uniformed services voter receives the utmost consideration and
   cooperation when voting; that each valid ballot cast by such a voter is 
   duly counted; and that all eligible American voters should have an equal
   opportunity to cast a vote and to have that vote counted.               
    The House amendment contained no similar provision.                    

       The House recedes with a clarifying amendment that would express a  
   sense of the Congress.                                                  
           Voting assistance programs (sec. 1602)                                  

       The Senate bill contained a provision (sec. 578) that would require 
   the Secretary of Defense to promulgate regulations to ensure that each  
   service complies with directives implementing the Federal Voting        
   Assistance Program (FVAP) and require the Inspector General of each     
   service to conduct an annual review of compliance with the FVAP and     
   report the results to the Department of Defense Inspector General, who  
   would report annually to Congress.                                      
       The House amendment contained a similar provision (sec. 551) that   
   would also establish certain requirements for voting assistance         
   officers, and require polling of units and ships at sea regarding the   
   availability of voting materials prior to congressional elections.      
       The House recedes with an amendment that would combine elements of  
   the two provisions.                                                     
           Guarantee of residency for military personnel (sec. 1603)               

       The Senate bill contained a provision (sec. 573) that would provide 
   that for purposes of voting in any federal, state or local election, a  
   person absent from a state pursuant to military orders would not, solely
   by reason of that absence, be deemed to have: (1) lost a residence or   
   domicile in that state; (2) acquired a residence or domicile in another 
   state; or (3) become a resident in or of any other state.               
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

           Electronic voting demonstration project (sec. 1604)                     

       The Senate bill contained a provision (sec. 577) that would require 
   the Department of Defense to conduct an electronic voting demonstration 
   for absent military voters in the November, 2002, federal elections.    
    The House amendment contained a similar provision (sec. 552).          

    The House recedes with a clarifying amendment.                         

       The conferees are aware of the Department's concern about having    
   sufficient lead time to prepare for a meaningful demonstration project  
   in 2002. The conferees encourage the Department to consider use of      
   commercially available, off-the-shelf, electronic voting products to    
   expedite preparation for the 2002 demonstration.                        
                      Governors' reports on implementation of recommendations for  
           changes in state law made under Federal Voting Assistance Program (sec. 
           1605)                                                                   
       The Senate bill contained a provision (sec. 580) that would require 
   the chief executive officer of a state to report on the implementation  
   of a uniformed services voting assistance legislative recommendation    
   within 90 days of receipt of that recommendation.                       
    The House amendment contained no similar provision.                    

    The House recedes with a clarifying amendment.                         

                      Simplification of voter registration and absentee ballot     
           application procedures for absent uniformed services and overseas voters
           (sec. 1606)                                                             
       The Senate bill contained a provision (sec. 575) that would require 
   states to accept and process the official postcard form as a            
   simultaneous absentee voter register application and absentee ballot    
   application. The Senate bill also contained a provision (sec. 576) that 
   would require states to accept and process a single absentee ballot     
   application from an absent uniformed services voter or overseas voter   
   for all general, special, primary, and runoff federal elections         
   occurring during a year if the application is received not less than 30 
   days before the first federal election occurring that year.             
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would combine the two      
   provisions and require states to provide absentee ballots for each      
   subsequent federal election during a year only if the voter requests    
   that the application be considered an application for each subsequent   
   federal election.                                                       
                      Use of certain Department of Defense facilities as polling   
           places (sec. 1607)                                                      
       The House amendment contained a provision (sec. 2813) that would    
   authorize the service secretaries to make buildings located on military 
   installations and reserve component facilities available for use as     
   polling places for federal, state, and local elections.                 
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would permit use of       
   Department of Defense facilities as polling places if the facilities    
   were designated as of December 31, 2000, or have been used since January
   1, 1996, as official polling places, unless local security conditions   
   preclude such use.                                                      
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Extension of registration and balloting rights for absent    
           uniformed services voters to state and local elections                  
       The Senate bill contained a provision (sec. 574) that would require 
   states to permit uniformed services voters to use absentee procedures to
   register and vote in state and local elections.                         
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

                      Maximization of access of recently separated uniformed       
           service voters to the polls                                             
       The Senate bill contained a provision (sec. 579) that would require 
   states to accept absentee registration applications by military         
   personnel before they separate from the military and that would allow   
   them, after they leave the military, to vote in any election for which  
   they are properly registered.                                           
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

                      Standard for invalidation of ballots cast by absent uniformed
           services voters in federal elections                                    
       The Senate bill contained a provision (sec. 572) that would         
   prescribe standards for invalidation of ballots cast by absent uniformed
   services voters in federal elections.                                   
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    


                      DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS            

           Overview                                                                

       The budget request for fiscal year 2002 requested authorization of  
   appropriations of $9,971.3 million for the military construction and    
   family housing construction and operation accounts of the Department of 
   Defense.                                                                
       The Senate bill would authorize $10,430.5 million for military      
   construction and family housing.                                        
       The House amendment would authorize $10,324.7 million for these     
   accounts.                                                               
       The conferees recommend authorization of appropriations of $10,681.3
   million for the military construction and family housing accounts of the
   Department of Defense for fiscal year 2002. Including the impact of     
   reductions in the authorization of appropriations for military          
   construction for prior years made in this Act, and of the rescission of 
   military construction appropriations for prior years for foreign        
   currency savings and for a Forward Operating Location in Aruba contained
   in the Military Construction Appropriations Act, 2002 (Public Law 107   
   64), the conference agreement is consistent with a budget authority     
   level of $10,500.0 million for military construction and family housing.
       The following tables list the amounts authorized to be appropriated 
   for the military construction and family housing accounts, and for each 
   military construction and family housing project.                       

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           Short title; definition (sec. 2001)                                     

       The Senate bill contained a provision (sec. 2001) that would cite   
   Division B of this Act as the Military Construction Authorization Act   
   for Fiscal Year 2002.                                                   
       The House amendment contained a similar provision (sec. 2001) that  
   would also define all references in division B to the Floyd D. Spence   
   National Defense Authorization Act for Fiscal Year 2001.                
    The Senate recedes.                                                    

                                      TITLE XXI--ARMY                             

           Overview                                                                

       The Senate bill would authorize $3,068.3 million for Army military  
   construction and family housing programs for fiscal year 2002.          
    The House amendment would authorize $3,018.1 million for this purpose. 

       The conferees recommend authorization of appropriations of $3,155.6 
   million for Army military construction and family housing for fiscal    
   year 2002.                                                              
       The conferees agree to general reductions of $29.9 million in the   
   Army military construction and military family housing accounts. The    
   reductions are to be achieved through savings from favorable bids,      
   reduced overhead costs, and cancellations due to force structure        
   changes. The general reductions shall not cancel any military           
   construction authorized by Title XXI of this Act.                       
       The conference agreement provides the planning and design funds     
   needed to execute the construction projects authorized by this Act as   
   well as any planning and design specifically directed in the House      
   report (H. Rept. 107 194) or the Senate report (S. Rept. 107 62).       
                                 ITEMS OF SPECIAL INTEREST                        

           Renovation of Womack Army Medical Center, Fort Bragg, North Carolina    

       The conferees understand that the Army intends to renovate the old  
   Womack Army Medical Center at Fort Bragg, North Carolina, for use as a  
   soldier support center. The soldier support center would not only       
   provide a convenient one-stop processing center for soldiers, it would  
   also allow for the demolition of 87 World War II-era wooden buildings,  
   resulting in considerable savings in maintenance and utilities. While   
   the conferees endorse this creative initiative, the conferees are       
   disappointed that the Secretary of the Army does not intend to request  
   funding for the project until fiscal year 2007. The conferees urge the  
   Secretary of the Army to accelerate this important project and upon     
   completion consider naming the facility for the recently retired former 
   Chairman of the Joint Chiefs of Staff, General Hugh Shelton.            
                               LEGISLATIVE PROVISIONS ADOPTED                     

           Authorized Army construction and land acquisition projects (sec. 2101)  

       The Senate bill contained a provision (sec. 2101) that would        
   authorize Army construction projects for fiscal year 2002. The          
   authorized amounts are listed on an installation-by-installation basis. 
    The House amendment contained a similar provision (sec. 2101).         

    The conference agreement includes this provision.                      

       The authorized amounts are listed on an installation-by-installation
   basis. The state list of projects contained in this report provides the 
   binding list of specific projects authorized at each location.          
           Family housing (sec. 2102)                                              

       The Senate bill included a provision (sec. 2102) that would         
   authorize new construction and planning and design of family housing    
   units for the Army for fiscal year 2002. The authorized amounts are     
   listed on an installation-by-installation basis.                        
    The House amendment contained a similar provision (sec. 2102).         

    The conference agreement includes this provision.                      

       The authorized amounts are listed on an installation-by-installation
   basis. The state list of projects contained in this report provides the 
   binding list of specific projects authorized at each location.          
           Improvements to military family housing units (sec. 2103)               

       The Senate bill contained a provision (sec. 2103) that would        
   authorize improvements to existing units of family housing for fiscal   
   year 2002.                                                              
    The House amendment contained a similar provision (sec. 2103).         

    The conference agreement includes this provision.                      

           Authorization of appropriations, Army (sec. 2104)                       

       The Senate bill contained a provision (sec. 2104) that would        
   authorize specific appropriations for each line item contained in the   
   Army's budget for fiscal year 2002. This section would also provide an  
   overall limit on the amount the Army may spend on military construction 
   projects.                                                               
    The House amendment contained a similar provision (sec. 2104).         

    The conference agreement includes this provision.                      

                      Modification of authority to carry out certain fiscal year   
           2001 projects (sec. 2105)                                               
       The Senate bill contained a provision (sec. 2105) that would amend  
   the Military Construction Authorization Act for Fiscal Year 2001        
   (division B of the Floyd D. Spence National Defense Authorization Act   
   for Fiscal Year 2001; Public Law 106 398) to increase the total project 
   authorizations for the following projects by the following amounts: $4.4
   million for a basic training barracks project at Fort Leonard Wood,     
   Missouri; $3.0 million for a battle simulation center at Fort Drum, New 
   York; and $3.0 million for a digital training range at Fort Hood, Texas.
    The House amendment contained a similar provision.                     

    The House recedes with a technical amendment.                          

                      Modification of authority to carry out certain fiscal year   
           2000 projects (sec. 2106)                                               
       The conferees agreed to a provision that would amend the Military   
   Construction Authorization Act for Fiscal Year 2000 (division B of      
   Public Law 106 65) to cancel the authorization of appropriations of     
   $36.4 million in section 2014 of that Act for a project for which the   
   appropriated funds were rescinded by the Military Construction          
   Appropriations Act, 2002 (Public Law 107 64). This reduction is made    
   without prejudice. The conferees understand that funds may be requested 
   for this project in the future and have agreed to retain the            
   authorization for this project contained in section 2101 of that Act.   
                                      TITLE XXII--NAVY                            

           Overview                                                                

       The Senate bill would authorize $2,377.6 million for Navy military  
   construction and family housing programs for fiscal year 2002.          

    The House amendment would authorize $2,393.0 million for this purpose. 

       The conferees recommend authorization of appropriations of $2,366.7 
   million for Navy military construction and family housing for fiscal    
   year 2002.                                                              
       The conferees agree to general reductions of $82.6 million in the   
   Navy military construction and military family housing accounts. The    
   reductions are to be achieved through savings from favorable bids,      
   reduction in overhead costs, and cancellation of projects due to force  
   structure changes. The general reductions shall not cancel any military 
   construction authorized by Title XXII of this Act.                      
       The conference agreement provides the planning and design funds     
   needed to execute the construction projects authorized by this Act as   
   well as any planning and design specifically directed in the House      
   report (H. Rept. 107 194) or the Senate report (S. Rept. 107 62).       
                               LEGISLATIVE PROVISIONS ADOPTED                     

           Authorized Navy construction and land acquisition projects (sec. 2201)  

       The Senate bill contained a provision (sec. 2201) that would        
   authorize Navy construction projects for fiscal year 2002. The          
   authorized amounts are listed on an installation-by-installation basis. 
    The House amendment contained a similar provision (sec. 2201).         

    The conference agreement includes this provision.                      

       The authorized amounts are listed on an installation-by-installation
   basis. The state list of projects contained in this report provides the 
   binding list of specific projects authorized at each location.          
           Family housing (sec. 2202)                                              

       The Senate bill contained a provision (sec. 2202) that would        
   authorize new construction and planning and design of family housing    
   units for the Navy for fiscal year 2002. The authorized amounts are     
   listed on an installation-by-installation basis.                        
    The House amendment contained a similar provision (sec. 2202).         

    The conference agreement includes this provision.                      

       The authorized amounts are listed on an installation-by-installation
   basis. The state list of projects contained in this report provides the 
   binding list of specific projects authorized at each location.          
           Improvements to military family housing units (sec. 2203)               

       The Senate bill contained a provision (sec. 2203) that would        
   authorize improvements to existing units of family housing for fiscal   
   year 2002.                                                              
    The House amendment contained a similar provision (sec. 2203).         

       The conference agreement includes this provision and includes       
   funding for the additional housing improvements contained in the House  
   amendment.                                                              
           Authorization of appropriations, Navy (sec. 2204)                       

       The Senate bill contained a provision (sec. 2204) that would        
   authorize specific appropriations for each line item in the Navy's      
   budget for fiscal year 2002. This section would also provide an overall 
   limit on the amount the Navy may spend on military construction         
   projects.                                                               
    The House amendment contained a similar provision (sec. 2204).         

    The conference agreement includes this provision.                      

                      Modification of authority to carry out certain fiscal year   
           2001 projects (sec. 2205)                                               
       The Senate bill contained a provision (sec. 2205) that would amend  
   section 2201(a) of the Military Construction Act for Fiscal Year 2001   
   (division B of Public Law 106 398; 114 Stat. 1654A 395) to correct the  
   funding authorization for the Naval Shipyard, Bremerton, Puget Sound,   
   Washington, from $100,740,000 to $102,460,000, and for Naval Station,   
   Bremerton, Washington, from $11,930,000 to $1,930,000. The provision    
   would also correct the total funding authorized for construction        
   projects inside the United States from $811,497,000 to $803,217,000.    
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would increase the         
   authorization for Industrial Skills Center, Puget Sound Naval Shipyard  
   from $20,280,000 to $24,000,000. The amendment would also reduce the    
   fiscal year 2001 authorization of appropriations for planning and design
   by $19.6 million to reflect the rescission of unobligated balances of   
   this amount in the Military Construction Appropriations Act, 2002       
   (Public Law 107 64), and would make certain conforming changes.         
                       Modification of authority to carry out certain fiscal year  
           2000 project (sec. 2206)                                                

       The Senate bill contained a provision (sec. 2206) that would amend  
   the Military Construction Authorization Act for Fiscal Year 2000        
   (division B of Public Law 106 65) to increase the total project         
   authorization for the headquarters facility for the Commander in Chief  
   of the Pacific Fleet at Camp Smith, Hawaii by $3.0 million.             
    The House amendment contained a similar provision.                     

    The House recedes.                                                     

                                   TITLE XXIII--AIR FORCE                         

           Overview                                                                

       The Senate bill would authorize $2,587.8 million for Air Force      
   military construction and family housing programs for fiscal year 2002. 
    The House amendment would authorize $2,526.0 million for this purpose. 

       The conferees recommend authorization of appropriations of $2,573.1 
   million for Air Force military construction and family housing for      
   fiscal year 2002.                                                       
       The conferees agree to general reductions of $48.4 million in the   
   Air Force military construction and military family housing accounts.   
   The reductions are to be achieved through savings from favorable bids,  
   reduction in overhead costs, and cancellation of projects due to force  
   structure changes. The general reductions shall not cancel any military 
   construction authorized by Title XXIII of this Act.                     
       The conference agreement provides the planning and design funds     
   needed to execute the construction projects authorized by this Act as   
   well as any planning and design specifically directed in the House      
   report (H. Rept. 107 194) or the Senate report (S. Rept. 107 62).       
                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Authorized Air Force construction and land acquisition       
           projects (sec. 2301)                                                    
       The Senate bill contained a provision (sec. 2301) that would        
   authorize Air Force construction projects for fiscal year 2002. The     
   authorized amounts are listed on an installation-by-installation basis. 
    The House amendment contained a similar provision (sec. 2301).         

    The conference agreement includes this provision.                      

       The authorized amounts are listed on an installation-by-installation
   basis. The state list of projects contained in this report provides the 
   binding list of specific projects authorized at each location.          
           Family housing (sec. 2302)                                              

       The Senate bill included a provision (sec. 2302) that would         
   authorize new construction and planning and design of family housing    
   units for the Air Force for fiscal year 2002. The authorized amounts are
   listed on an installation-by-installation basis.                        
    The House amendment contained a similar provision (sec. 2302).         

    The conference agreement includes this provision.                      

       The authorized amounts are listed on an installation-by-installation
   basis. The state list of projects contained in this report provides the 
   binding list of specific projects authorized at each location.          
           Improvements to military family housing units (sec. 2303)               

       The Senate bill contained a provision (sec. 2303) that would        
   authorize improvements to existing units of family housing for fiscal   
   year 2002.                                                              
    The House amendment contained a similar provision (sec. 2303).         

       The conference agreement includes this provision and includes       
   funding for the additional housing improvements contained in the Senate 
   bill and the House amendment.                                           
           Authorization of appropriations, Air Force (sec. 2304)                  

       The Senate bill contained a provision (sec. 2304) that would        
   authorize specific appropriations for each line item in the Air Force   
   budget for fiscal year 2002. This section would also provide an overall 
   limit on the amount the Air Force may spend on military construction    
   projects.                                                               
    The House amendment contained a similar provision (sec. 2304).         

    The conference agreement includes this provision.                      

                      Modification of authority to carry out certain fiscal year   
           2001 projects (sec. 2305)                                               
       The Senate bill contained a provision (sec. 2305) that would amend  
   section 2302(a) of the Military Construction Act for Fiscal Year 2001   
   (division B of Public Law 106 398; 114 Stat. 1654A 400) to correct the  
   number of family housing units authorized for construction at Mountain  
   Home Air Force Base, Idaho, from 119 units to 46 units.                 
       The House amendment contained a provision (sec. 2305) that would    
   amend the table in section 2301 of the Military Construction            
   Authorization Act for Fiscal Year 2001 (division B of Public Law 106    
   398) to provide for an increase in the amounts authorized for military  
   construction at McGuire Air Force Base, New Jersey.                     
       The House recedes to the Senate provision. The Senate recedes to the
   House provision.                                                        
                                TITLE XXIV--DEFENSE AGENCIES                      

           Overview                                                                

       The Senate bill would authorize $905.8 million for Defense Agencies 
   military construction and family housing programs for fiscal year 2002, 
   and an additional $592.2 million for base closure activities.           
       The House amendment would authorize $885.0 million for Defense      
   Agencies military construction and family housing programs and $532.2   
   million for base closure activities.                                    
       The conferees recommend authorization of appropriations of $848.5   
   million for Defense Agencies military construction and family housing   
   for fiscal year 2002. The conferees also recommend authorization of     
   appropriations of $632.7 million for base closure activities.           
       The conferees agree to a general reduction of $17.6 million in the  
   authorization of appropriations for the Defense Agencies military       
   construction account. The general reduction is to be achieved through   
   savings from favorable bids and reductions in overhead costs. The       
   conferees further agree to a general reduction of $10.0 million in the  
   authorization of appropriations for planning and design for the chemical
   demilitarization program. The reduction to the entire chemical          
   demilitarization program is based on unobligated prior year funds. The  
   conferees do not intend this reduction to interfere with timely         
   compliance with the Chemical Weapons Convention. The general reductions 
   shall not cancel any military construction projects authorized by Title 
   XXIV of this Act.                                                       
       The conference agreement provides the planning and design funds     
   needed to execute the construction projects authorized by this Act as   
   well as any planning and design specifically directed in the House      
   report (H. Rept. 107 194) or the Senate report (S. Rept. 107 62).       
                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Authorized Defense Agencies construction and land acquisition
           projects (sec. 2401)                                                    
       The Senate bill contained a provision (sec. 2401) that would        
   authorize Defense Agencies construction projects for fiscal year 2002.  
   The authorized amounts are listed on an installation-by-installation    
   basis.                                                                  
    The House amendment contained a similar provision (sec. 2401).         

    The conference agreement includes this provision.                      

       The authorized amounts are listed on an installation-by-installation
   basis. The state list contained in this report is intended to be the    
   binding list of the specific projects authorized at each location.      
           Energy conservation projects (sec. 2402)                                

       The Senate bill contained a provision (sec. 2402) that would        
   authorize the Secretary of Defense to carry out energy conservation     
   projects.                                                               
    The House amendment contained a similar provision.                     

    The Senate recedes with a technical amendment.                         

           Authorization of appropriations, Defense Agencies (sec. 2403)           

       The Senate bill contained a provision (sec. 2403) that would        
   authorize specific appropriations for each line item in the Defense     
   Agencies' budgets for fiscal year 2002. This section would also provide 
   an overall limit on the amount the Defense Agencies may spend on        
   military construction projects.                                         
    The House amendment contained a similar provision (sec. 2403).         

    The conference agreement includes this provision.                      

                      Cancellation of authority to carry out certain fiscal year   
           2001 projects (sec. 2404)                                               
       The Senate bill contained a provision (sec. 2404) that would amend  
   the Military Construction Authorization Act for Fiscal Year 2001        
   (division B of Public Law 106 398) to cancel the project authorizations 
   for four TRICARE Management Agency medical/dental clinic and support    
   facility projects at Camp Pendleton, California since the funds         
   authorized in fiscal year 2001 were used for payment of a claim related 
   to the construction of the Portsmouth Naval Hospital, Virginia. These   
   projects would be authorized for fiscal year 2002 in section 2403 of    
   this Act.                                                               
       The House amendment contained a provision (sec. 2404) that would    
   amend the table in section 2401 of the Military Construction            
   Authorization Act for Fiscal Year 2001 (division B of Public Law 106    
   398) to provide for an increase in the amounts authorized for           
   construction at Marine Corps Base, Camp Pendleton, California.          
       The House recedes with an amendment that would reduce the fiscal    
   year 2001 project authorization and the authorization of appropriations 
   for military construction for a national missile defense system by $55.0
   million to reflect the administration's proposal in the fiscal year 2002
   budget to build any facilities related to ballistic missile defenses    
   with research and development funds rather than military construction   
   funds.                                                                  
                      Modification of authority to carry out certain fiscal year   
           2000 projects (sec. 2405)                                               
       The Senate bill contained a provision (sec. 2406) that would amend  
   the Military Construction Authorization Act for Fiscal Year 2000        
   (division B of Public Law 106 65) to increase the project authorization 
   for a chemical demilitarization facility at Blue Grass Army Depot,      
   Kentucky by $47.2 million and the authorization for a hospital at Fort  
   Wainwright, Alaska by $82.0 million.                                    
       The provision would also cancel the project authorization for an    
   aircrew water survival training facility at Whidbey Island Naval Air    
   Station, Washington since the funds authorized in fiscal year 2000 were 
   used for payment of a claim related to the construction of the          
   Portsmouth Naval Hospital, Virginia. This project would be authorized   
   for fiscal year 2002 in section 2403 of this Act.                       
       The House amendment contained a provision (sec. 2405) that would    
   amend the table in section 2401 of the Military Construction            
   Authorization Act for Fiscal Year 2000 (division B of Public Law 106 65)
   to provide for an increase in the amounts authorized for construction at
   Naval Air Station, Whidbey Island, Washington and Blue Grass Army Depot,
   Kentucky.                                                               
    The House recedes with a technical amendment.                          

                      Modification of authority to carry out certain fiscal year   
           1999 project (sec. 2406)                                                
       The Senate bill contained a provision (sec. 2407) that would amend  
   the Military Construction Authorization Act for Fiscal Year 1999        
   (division B of Public Law 105 261) to increase the project authorization
   for a chemical demilitarization facility at Aberdeen Proving Ground,    
   Maryland by $37.6 million.                                              
    The House amendment contained a similar provision.                     

    The Senate recedes.                                                    

                      Modification of authority to carry out certain fiscal year   
           1995 project (sec. 2407)                                                
       The Senate bill contained a provision (sec. 2408) that would amend  
   the table in section 2401 of the Military Construction Authorization Act
   for Fiscal Year 1995 (division B of Public Law 103 337; 108 Stat. 3040),
   as amended, to increase the funding for Chemical Weapons and Munitions  
   Destruction facilities at Pine Bluff, Arkansas, by $23.0 million.       
    The House amendment contained an identical provision.                  

    The conference agreement includes this provision.                      


                      Prohibition on expenditures to develop forward operating     
           location on Aruba (sec. 2408)                                           
       The House amendment contained a provision (sec. 2408) that would    
   prohibit funds appropriated in chapter 3 of title II of the Emergency   
   Supplemental Appropriations Act, 2000 (Public Law 106 246) to be used by
   the Secretary of Defense to develop any forward operating location of   
   the island of Aruba.                                                    
    The Senate bill contained no similar provision.                        

    The Senate recedes with a clarifying amendment.                        

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Cancellation of authority to carry out additional fiscal year
           2001 project                                                            
       The Senate bill contained a provision (sec. 2405) that would reduce 
   the fiscal year 2001 project authorization and the authorization of     
   appropriations for military construction for a national missile defense 
   system by $55.0 million to reflect the administration's proposal in the 
   fiscal year 2002 budget to build any facilities related to ballistic    
   missile defenses with research and development funds rather than        
   military construction funds.                                            
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees agree to include this reduction in another provision  
   in this title.                                                          
             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    
                                     PROGRAM                                      
           Overview                                                                

       The Senate bill, the House amendment, and the conference agreement  
   would all authorize $162.6 million for the U.S. contribution to the     
   North Atlantic Treaty Organization (NATO) Security Investment Program   
   for fiscal year 2002.                                                   
                               LEGISLATIVE PROVISIONS ADOPTED                     

           Authorized NATO construction and land acquisition projects (sec. 2501)  

       The Senate bill contained a provision (sec. 2501) that would        
   authorize the Secretary of Defense to make contributions to the North   
   Atlantic Treaty Organization Security Investment program in an amount   
   equal to the sum of the amount specifically authorized in section 2502  
   of the Senate bill and the amount of recoupment due to the United States
   for construction previously financed by the United States.              
    The House amendment contained an identical provision.                  

    The conference agreement includes this provision.                      

           Authorization of appropriations, NATO (sec. 2502)                       

       The Senate bill contained a provision (sec. 2502) that would        
   authorize appropriations of $162,600,000 as the United States           
   contribution to the North Atlantic Treaty Organization (NATO) Security  
   Investment Program.                                                     
    The House amendment contained an identical provision.                  

    The conference agreement includes this provision.                      

                          TITLE XXVI--GUARD AND RESERVE FACILITIES                

           Overview                                                                

       The Senate bill would authorize $791.2 million for military         
   construction and land acquisition for fiscal year 2002 for the Guard and
   Reserve components.                                                     
    The House amendment would authorize $807.8 million for this purpose.   

       The conferees recommend authorization of appropriations of $942.0   
   million for military construction and land acquisition for fiscal year  
   2002. Funds are authorized for the Guard and Reserve Components as      
   follows:                                                                




          Army National Guard            $393,253,000



          Air National Guard             253,852,000



          Army Reserve                   168,969,000



          Naval and Marine Corps Reserve                52,896,000



          Air Force Reserve              73,032,000

                                                                             



          Total                          942,002,000



       The conference agreement provides the planning and design funds     
   needed to execute the construction projects authorized by this Act, as  
   well as any planning and design specifically directed in the House      
   report (H. Rept. 107 194) or the Senate report (S. Rept. 107 62).       
                                 ITEMS OF SPECIAL INTEREST                        

           Improvement of National Guard infrastructure                            


       The conferees are aware of the pressing problems facing state       
   National Guard facilities and the general need to improve aging         
   infrastructure, in particular deteriorated and unsafe roofs. The        
   conferees note the efforts in certain states, in particular those of the
   Oklahoma National Guard, to develop plans to address this problem. The  
   conferees direct the Director of the National Guard Bureau to make every
   effort to identify the necessary funding sources for roof replacement   
   and other critical infrastructure improvements to state guard           
   facilities.                                                             
           Planning and design, Army National Guard                                

       The report accompanying the House amendment, H.R. 2586, contained a 
   recommendation that within the amounts authorized for planning and      
   design for the Air National Guard, the Secretary of the Air Force       
   execute the following project: $1,331,000 for a joint headquarters      
   building at McEntire Air National Guard Base, South Carolina.           
       The conferees have been notified that the Army National Guard would 
   be the appropriate lead agency for the construction of the joint        
   headquarters. Therefore, the conferees agreed to revise the             
   recommendation of the House report and recommend that the Secretary of  
   the Army, within authorized amounts for planning and design, execute the
   following project: $1,331,000 for a joint headquarters building at      
   McEntire Air National Guard, Base, South Carolina.                      
                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Authorized guard and reserve construction and land           
           acquisition projects (sec. 2601)                                        
       The Senate bill contained a provision (sec. 2601) that would        
   authorize appropriations for military construction for the Guard and    
   Reserve by service component for fiscal year 2002.                      
    The House amendment contained a similar provision (sec. 2601).         

       The conference agreement includes this provision. The state list of 
   projects contained in this report provides the binding list of specific 
   projects authorized at each location.                                   
                  TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS         

                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Expiration of authorizations and amounts required to be      
           specified by law (sec. 2701)                                            
       The Senate bill contained a provision (sec. 2701) that would provide
   that authorizations for military construction projects, repair of real  
   property, land acquisition, family housing projects and facilities,     
   contributions to the North Atlantic Treaty Organization Security        
   Investment Program, and guard and reserve projects will expire on       
   October 1, 2004, or the date of enactment of an Act authorizing funds   
   for military construction for fiscal year 2005, whichever is later. This
   expiration would not apply to authorizations for which appropriated     
   funds have been obligated before October 1, 2004, or the date of        
   enactment of an Act authorizing funds for these projects, whichever is  
   later.                                                                  
    The House amendment contained an identical provision.                  

    The conference agreement includes this provision.                      

                      Extension of authorizations of certain fiscal year 1999      
           projects (sec. 2702)                                                    
       The Senate bill contained a provision (sec. 2702) that would extend 
   the authorization for certain fiscal year 1999 military construction    
   projects until October 1, 2002, or the date of the enactment of the Act 
   authorizing funds for military construction for fiscal year 2003,       
   whichever is later.                                                     
    The House amendment contained a similar provision.                     

    The House recedes.                                                     

                      Extension of authorizations of certain fiscal year 1998      
           projects (sec. 2703)                                                    
       The Senate bill contained a provision (sec. 2703) that would extend 
   the authorization for certain fiscal year 1998 military construction    
   projects until October 1, 2002, or the date of the enactment of the Act 
   authorizing funds for military construction for fiscal year 2003,       
   whichever is later.                                                     
    The House amendment contained a similar provision.                     

    The Senate recedes with a technical amendment.                         

           Effective date (sec. 2704)                                              

       The Senate bill contained a provision (sec. 2704) that would provide
   that Titles XXI, XXII, XXIII, XXIV, XV, and XXVI of this bill shall take
   effect on October 1, 2001, or the date of the enactment of this Act,    
   whichever is later.                                                     
    The House amendment contained an identical provision.                  

    The conference agreement includes this provision.                      


                              TITLE XXVIII--GENERAL PROVISIONS                    

                                 ITEMS OF SPECIAL INTEREST                        

           Remediation of former Fort Ord, California                              

       The conferees are aware that two parcels of land at the former Fort 
   Ord, California, will be transferred at no cost to the City of Seaside, 
   California, for the purpose of providing recreational opportunities for 
   disadvantaged youth, once environmental remediation of the land is      
   complete. The conferees understand that the priority has been to        
   transfer the cleanest parcels on the former Fort Ord first, deferring to
   the future the transfer of land possibly contaminated with unexploded   
   ordnance. Nevertheless, the conferees observe that Fort Ord was selected
   for closure more than ten years ago and are disappointed that parcels   
   such as these, though encumbered with greater cleanup challenges, are   
   still pending remediation and transfer. The conferees endorse the       
   intended use of these parcels and urge the Secretary of the Army to     
   speed the environmental remediation.                                    
                               LEGISLATIVE PROVISIONS ADOPTED                     

           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
                      Increase in thresholds for certain unspecified minor military
           construction projects (sec. 2801)                                       
       The Senate bill contained a provision (sec. 2801) that would amend  
   section 2805 of title 10, United States Code to increase from $500,000  
   to $750,000 the cost threshold for an unspecified minor construction    
   project requiring approval by the service secretary concerned. The      
   provision would further amend section 2805 to increase the amount the   
   secretary concerned may spend from appropriated operation and           
   maintenance amounts for projects intended to correct deficiencies that  
   are a threat to life, health, or safety from $1.0 million to $1.5       
   million and for other unspecified minor construction projects from      
   $500,000 to $750,000.                                                   
    The House amendment contained a similar provision.                     

    The House recedes.                                                     

                      Exclusion of unforseen environmental hazard remediation from 
           limitation on authorized cost variations (sec. 2802)                    
       The Senate bill contained a provision (sec. 2802) that would amend  
   section 2853 of title 10, United States Code, to exclude the cost       
   associated with unforseen environmental hazard remediation from the     
   limitation on cost increases in military construction projects. Costs   
   that could be excluded would include asbestos removal, radon abatement, 
   lead-based paint removal or abatement, and any other environmental      
   hazard remediation required by law that could not be reasonably         
   anticipated at the time the funding for the project was approved by the 
   Congress.                                                               
    The House amendment contained a similar provision.                     

    The Senate recedes with a technical amendment.                         

                      Repeal of annual reporting requirement on military           
           construction and military family housing activities (sec. 2803)         
       The Senate bill contained a provision (sec. 2803) that would repeal 
   a statutory requirement for an annual report to Congress on the status  
   of military construction and family housing projects and trends in the  
   funding for various aspects of military construction.                   
    The House amendment contained a similar provision.                     

    The Senate recedes.                                                    

                      Funds for housing allowances of members assigned to military 
           family housing under alternative authority for acquisition and          
           improvement of military housing (sec. 2804)                             
       The Senate bill contained a provision (sec. 2805) that would        
   authorize the Secretary of Defense, to the extent provided in advance in
   appropriations acts, during the year in which a contract is awarded for 
   a family housing privatization project, to reimburse the Military       
   Personnel appropriations account from the Family Housing Maintenance and
   Operations appropriations the amounts necessary to offset the additional
   cost of housing allowances that would be paid as a result of a housing  
   privatization project. The provision would also make certain technical  
   changes.                                                                
    The House amendment contained no similar provision.                    

    The House recedes with a technical amendment.                          

                      Extension of alternative authority for acquisition and       
           improvement of military housing (sec. 2805)                             
       The House amendment contained a provision (sec. 2804) that would    
   amend section 2885 of title 10, United States Code, to make permanent   
   the authorities contained in subchapter 169 of title 10, United States  
   Code.                                                                   

    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would extend the          
   authorities contained in subchapter 169 of title 10, United States Code 
   through December 31, 2012.                                              
                      Treatment of financing costs as allowable expenses under     
           contracts for utility services from utility systems conveyed under      
           privatization initiative (sec. 2806)                                    
       The Senate bill contained a provision (sec. 2806) that would require
   the Secretary of Defense to determine, within 90 days, whether or not   
   modifying the Federal Acquisition Regulation (FAR) is advisable so that 
   a contract for utility services may include terms and conditions that   
   recognize financing costs as an allowable expense when incurred in the  
   process of acquiring, operating, renovating, replacing, upgrading,      
   repairing and expanding the installation utility system. If within 180  
   days, the Federal Acquisition Regulatory Council has not modified the   
   FAR, the Secretary would be required to submit a report justifying such 
   action.                                                                 
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would direct the Secretary 
   of Defense, if he determines that modifying the Federal Acquisition     
   Regulation is advisable, to request that the Federal Acquisition        
   Regulatory Council make the appropriate changes.                        
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        

                      Use of military installations for certain recreational       
           activities (sec. 2811)                                                  
       The House amendment contained a provision (sec. 2811) that would    
   amend section 2671 of title 10, United States Code, to allow the        
   Secretary of Defense to waive state or territory fish and game laws to  
   permit hunting, fishing, or trapping on military installations to       
   promote public safety or morale, welfare and recreation activities.     
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would authorize the       
   Secretary of Defense to waive state or territory fish and game laws     
   relating to hunting, fishing or trapping if such a waiver is required   
   for health or safety reasons at military installations and that would   
   require the Secretary of Defense to notify state officials 30 days prior
   to implementing any such waiver.                                        
                      Availability of proceeds of sales of Department of Defense   
           property from certain closed military installations (sec. 2812)         
       The Senate bill contained a provision (sec. 2811) that would        
   increase from 50 percent to 100 percent the share of the proceeds from  
   the sale of surplus Department of Defense property at closed            
   installations that may be used for infrastructure maintenance and       
   environmental restoration at other installations within the service that
   operated the closed installation.                                       
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would clarify that this    
   provision applies to proceeds of property that is disposed of other than
   through the base realignment and closure statutes.                      
                      Pilot program to provide additional tools for efficient      
           operation of military installations (sec. 2813)                         
       The Senate bill contained a provision (sec. 2812) that would        
   authorize the Secretary of Defense to carry out a pilot program to      
   determine the potential for increasing the efficiency and effectiveness 
   of the operation of military installations. The pilot program would     
   terminate four years after the date of enactment of this Act.           
       The provision would permit the Secretary to designate up to two     
   installations in each military department as participants in the        
   efficient facilities initiative. The Secretary would be required to     
   develop a management plan to carry out the initiative at each designated
   installation and submit that plan to the Congress. The Secretary would  
   be required to identify any statutes or regulations he proposes to waive
   under this authority. Such waivers would have to be enacted into law in 
   subsequent legislation before they would take effect.                   
       Funds received by the military departments pursuant to this         
   authority would be deposited in an Installation Efficiency Project Fund,
   which could be used to manage capital assets and provide support        
   services at installations participating in the initiative.              
    The House amendment contained no similar provision.                    

       The House recedes with a technical amendment. The conferees agree   
   that the provisions of section 2461 of title 10, United States Code     
   would apply to any changes to Office of Management and Budget Circular A
   76 that would be proposed under this authority.                         
                      Demonstration program on reduction in long-term facility     
           maintenance costs (sec. 2814)                                           
       The Senate bill contained a provision (sec. 2813) that would        
   authorize the Secretary of the Army to enter into no more than three    
   contracts in any fiscal year that would require the contractor to       
   maintain a facility constructed for the Army for up to the first five   
   years of operation of that facility and would include any costs for the 
   performance of such maintenance in the cost of construction of the      
   project. The demonstration program would be authorized for fiscal years 
   2002 through 2006.                                                      
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would direct the Secretary 
   of the Army to submit a report to the congressional defense committees  
   not later than January 31, 2005.                                        
           Base efficiency project at Brooks Air Force Base, Texas (sec. 2815)     

       The House amendment contained a provision (sec. 2812) that would    
   amend section 136 of the Military Construction Appropriations Act, 2001 
   (division A of Public Law 106 246) to authorize the Secretary of the Air
   Force to provide environmental indemnification to the San Antonio       
   community and other persons for personal injury or property damage      
   resulting from environmental contamination resulting from Department of 
   Defense activities at Brooks Air Force Base. No indemnification would be
   provided unless the person or entity making the claim provided the      
   required documentation. This section would authorize the Secretary to   
   settle or defend a claim for cases where the Secretary determines that  
   the Department of Defense may be required to make indemnification       
   payments.                                                               
       The House amendment would also amend section 136(m)(9) of the       
   Military Construction Appropriations Act, 2001, to allow the Secretary  
   of the Air Force to delegate his authorities to officials in the Air    
   Force that have not been confirmed by the Senate.                       
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would allow the Secretary 
   of the Air Force to further delegate his authorities and would direct   
   the Secretary of Defense to evaluate the base efficiency project at     
   Brooks Air Force Base, Texas, and report to the Congress on whether the 
   effective implementation of this project requires additional authority  
   for the Secretary of the Air Force to indemnify the recipients of the   
   property against claims arising out of Department of Defense activities 
   on the property prior to disposal. The report would be submitted not    
   later than March 1, 2002. If the Secretary of Defense determines that   
   indemnification is appropriate, the report would include a              
   recommendation on the nature and extent of additional indemnification   
   the Secretary of Defense recommends be provided.                        
           SUBTITLE C--IMPLEMENTATION OF PRIOR BASE CLOSURE AND REALIGNMENT ROUNDS

           Lease Back of Base Closure Property (sec. 2821)                         

       The House amendment contained a provision (sec. 2821) that would    
   amend the Defense Authorization Amendments and Base Closure and         
   Realignment Act (Public Law 100 526; section 2687 of title 10, United   
   States Code), which governs the 1988 round of base closures and the     
   Defense Base Closure and Realignment Act of 1990 (part A of title XXIX  
   of Public Law 101 510; 10 U.S.C. 2687 note) which governs the 1991, 1993
   and 1995 rounds of base closures, to authorize the secretary concerned  
   to transfer real property at a closed or realigned military installation
   to the redevelopment authority for the installation if the redevelopment
   authority agrees, directly upon transfer, to lease one or more portions 
   of the property transferred to the secretary or to the head of another  
   department or agency of the Federal Government.                         
       Such leases could not exceed 50 years and may not require rental    
   payments by the United States. This section would permit the use of the 
   leased property by the same or another department or agency of the      
   Federal Government if the original department concerned ceases requiring
   the use of the lease.                                                   
       The Senate bill contained a provision (sec. 2911) that would amend  
   the 1988 base closure authorities to allow payment to a local           
   redevelopment authority for services provided on property leased back by
   the United States. Section 2903 of the Senate bill contained similar    
   language modifying the 1990 base closure authorities.                   
       The Senate recedes with an amendment that would authorize the       
   department and agency concerned to obtain facility services for the     
   leased property, and common area maintenance for the redevelopment      
   authority or the redevelopment authority's assignees, as a provision of 
   the lease, but would require that contracts for such services be awarded
   in compliance with Chapter 137 of title 10, United States Code.         
                                SUBTITLE D--LAND CONVEYANCES                      

                                  PART I--ARMY CONVEYANCES                        

                      Land conveyance, Whittier-Anchorage Pipeline Tank Farm,      
           Anchorage, Alaska (sec. 2831)                                           
       The House amendment contained a provision (sec. 2835) that would    
   authorize the Secretary of the Army to convey, without consideration,   
   two adjoining parcels of real property, including improvements, of      
   approximately 48 acres and known as the Whittier-Anchorage Pipeline Tank
   Farm, to the Port of Anchorage, an entity of the Municipality of        
   Anchorage, Alaska. The cost of any survey shall be borne by the         
   recipient of the real property.                                         
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require the         
   recipient to pay fair market value for the property, which could be in  
   cash or in kind, and would authorize the Secretary to delay the         
   conveyance until the Army has concluded a review on whether this        
   property would be required to support deployment of an Interim Brigade  
   Combat Team.                                                            
           Lease authority, Fort DeRussy, Hawaii (sec. 2832)                       

       The Senate bill contained a provision (sec. 2844) that would permit 
   the Secretary of the Army to authorize the Army Morale, Welfare and     
   Recreation Fund to enter into an agreement for the construction of a    
   parking garage at Fort DeRussy, Hawaii. The agreement could be in the   
   form of a non-appropriated fund contract, conditional gift, or other    
   agreement determined by the fund to be appropriate for the construction 
   of the garage. The agreement may permit use of the garage by the general
   public if the fund determines that it will be advantageous to the fund. 
   Amounts received by the fund would be treated as non-appropriated funds,
   and would accrue to the benefit of the fund or its component funds.     
       The House amendment contained a provision (sec. 2833) that would    
   authorize the Secretary of the Army to enter into a lease with the City 
   of Honolulu, Hawaii for the purpose of making available to the City a   
   parcel of real property for the construction and operation of a parking 
   facility.                                                               
       The Senate recedes with an amendment that would authorize the       
   Secretary of the Army to enter into a lease with the City and County of 
   Honolulu to allow the City and County to construct and operate a parking
   facility. The amendment would also direct that any lease under this     
   section would not be subject to section 2667 of title 10, United States 
   Code and that all money rentals from the lease be retained by the       
   Secretary and credited to an account that supports the operation and    
   maintenance of Army facilities including Fort DeRussy. The conferees    
   expect the Secretary to ensure that an appropriate share of the revenues
   is applied to support the activities and facilities at Fort DeRussy.    
           Modification of land exchange, Rock Island Arsenal, Illinois (sec. 2833)

       The House amendment contained a provision (sec. 2831) that would    
   amend section 2832 of the Military Construction Authorization Act for   
   Fiscal Year 2001 (division B of Public Law 106 398) by authorizing the  
   Secretary of the Army to transfer a parcel of real property of          
   approximately .513 acres to the City of Moline, Illinois. As            
   consideration for the transfer, the City would convey to the Secretary a
   parcel of real property of approximately .063 acres to construct a new  
   access ramp for the Rock Island Arsenal, Illinois.                      
    The Senate bill contained no similar provision.                        

    The Senate recedes with a technical amendment.                         

           Land conveyance, Fort Des Moines, Iowa (sec. 2834)                      

       The Senate bill contained a provision (sec. 2829) that would        
   authorize the Secretary of the Army to convey to Fort Des Moines        
   Memorial Park, Inc. approximately 4.6 acres located at the Fort Des     
   Moines United States Army Reserve Center. The conveyance would be for   
   the purpose of establishing the Fort Des Moines Memorial Park and       
   Education Center and would require the recipient to reimburse the       
   Secretary for any costs associated with the conveyance.                 
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would make technical       
   corrections and would clarify that the recipient of the property would  
   be required to reimburse the Secretary for any excess costs that result 
   from a request by the recipient for any environmental assessments or    
   other activities that result in additional costs to the Army beyond     
   those considered reasonable and necessary by the Secretary to convey the
   property in compliance with existing law.                               
           Modification of land conveyances, Fort Dix, New Jersey (sec. 2835)      

       The House amendment contained a provision (sec. 2832) that would    
   amend section 2835 of the Military Construction Authorization Act for   
   Fiscal Year 1998 (division B of Public Law 105 85) to authorize the     
   exchange between the Borough of Wrightstown and the New Hanover Board of
   Education, without the consent of the Secretary of the Army, of all or  
   any portion of the property conveyed so long as the property continues  
   to be used for economic or educational purposes.                        
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Land conveyance, Engineer Proving Ground, Fort Belvoir,      
           Virginia (sec. 2836)                                                    
       The Senate bill contained a provision (sec. 2821) that would        
   authorize the Secretary of the Army to convey to the Commonwealth of    
   Virginia 11.45 acres located at the Engineer Proving Ground, Fort       
   Belvoir, Virginia for the purpose of constructing a portion of          
   Interstate Highway 95 through the Engineer Proving Ground, and 170 acres
   for the purpose of constructing a portion of the Fairfax County Parkway 
   through the Engineer Proving Ground. The Commonwealth of Virginia would 
   agree to design and construct that portion of the Fairfax County Parkway
   through the Engineer Proving Ground; design, for eventual construction, 
   the necessary access into the Engineer Proving Ground; provide utility  
   permits; and provide funding to replace an existing building located on 
   the property to be conveyed.                                            
    The House amendment contained no similar provision.                    

    The House recedes with a technical amendment.                          

           Land exchange and consolidation, Fort Lewis, Washington (sec. 2837)     


       The House amendment contained a provision (sec. 2834) that would    
   authorize the Secretary of the Army to convey two parcels of real       
   property, with improvements, consisting of approximately 138 acres at   
   Fort Lewis, Washington, to the Nisqually Tribe. As consideration for the
   exchange, the Tribe shall acquire from Thurston County, Washington      
   several parcels of real property consisting of approximately 416 acres  
   and convey fee title to the Secretary. This section would authorize the 
   Secretary to convey to the Bonneville Power Administration a            
   right-of-way to permit the Administration to use the real property at   
   Fort Lewis as a route for the Grand Coulee-Olympia and Olympia-White    
   River electrical transmission lines. The cost of any survey would be    
   borne by the recipient of the property.                                 
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

           Land conveyance, Army Reserve Center, Kewaunee, Wisconsin (sec. 2838)   

       The Senate bill contained a provision (sec. 2832) that would        
   authorize the Administrator of the General Services Administration to   
   convey the former Army Reserve Center in Kewaunee, Wisconsin, to the    
   City of Kewaunee for public use. The provision includes a 20-year       
   reversionary clause and directs that, in the event of a reversion of the
   property, the property shall be disposed of by public sale.             
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would direct that proceeds 
   received by the United States from the public sale of the property, in  
   the event that the property reverts to the United States, would be      
   deposited into the Land and Water Conservation Fund.                    
                                  PART II--NAVY CONVEYANCES                       

                      Transfer of jurisdiction, Centerville Beach Naval Station,   
           Humbolt County, California (sec. 2841)                                  
       The House amendment contained a provision (sec. 2841) that would    
   authorize the Secretary of the Navy to transfer, without reimbursement, 
   to the administrative jurisdiction of the Secretary of the Interior the 
   real property with improvements consisting of the closed Centerville    
   Beach Naval Station in Humboldt County, California, for the purpose of  
   permitting the Secretary of the Interior to manage the real property as 
   open space or for other public purposes.                                
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

           Land conveyance, Port of Long Beach, California (sec. 2842)             

       The conferees agree to include a provision that would authorize the 
   Secretary of the Navy to convey to the City of Long Beach, California,  
   up to 11 acres of real property, including any improvements, comprising 
   part of the Navy Mole pier at the former Long Beach Naval Complex, Long 
   Beach, California. In exchange, the City would convey to the Secretary a
   parcel of real property of equal size at the same pier that is          
   acceptable to the Secretary, and would construct suitable replacement   
   fuel transfer and storage facilities on the conveyed property as        
   determined necessary by the Secretary. The Secretary would not be       
   authorized to make the conveyance until he determines that the City has 
   constructed suitable replacement facilities and that they are ready for 
   use. The provision would authorize the Secretary to convey the parcel of
   real property and improvements at no cost if he determines prior to the 
   conveyance that the Department of the Navy does not require replacement 
   fuel transfer and storage facilities.                                   
           Conveyance of Pier, Naval Base, San Diego, California (sec. 2843)       

       The conferees agree to include a provision that would authorize the 
   Secretary of the Navy to convey, without consideration, Pier 11A and    
   associated structures and interests in underlying land located at Naval 
   Base, San Diego to the San Diego Aircraft Carrier Museum or its         
   designee. The conveyance would be contingent upon the recipient         
   obtaining permission from the State of California or the appropriate    
   political subdivision to use the property to berth a vessel and operate 
   a museum for the general public. The recipient of the property would be 
   required to reimburse the Secretary for any excess costs that result    
   from a request by the recipient for any environmental assessments or    
   other activities that result in additional costs to the Navy beyond     
   those considered reasonable and necessary by the Secretary to convey the
   property in compliance with existing law. Any funds collected by the    
   Secretary as reimbursement for administrative expenses of the conveyance
   would be credited to the appropriation, fund, or account from which the 
   expenses were paid and would be available for the same purpose and      
   subject to the same limitation.                                         
       The provision would require that the recipient accept any liability 
   pertaining to the property's physical condition and hold the Federal    
   Government harmless from such liability.                                
                      Modification of authority for conveyance of Naval Computer   
           and Telecommunications Station, Cutler, Maine (sec. 2844)               

       The Senate bill contained a provision (sec. 2822) that would make   
   certain technical corrections to section 2853(a) of the Military        
   Construction Act for Fiscal Year 2001 (division B of Public Law 106 398:
   114 Stat. 1654A) to clarify that all or part of the specified property  
   may be conveyed.                                                        
    The House amendment contained an identical provision.                  

    The conference agreement includes this provision.                      

                      Land transfer and conveyance, Naval Security Group Activity, 
           Winter Harbor, Maine (sec. 2845)                                        
       The Senate bill contained a provision (sec. 2823) that would        
   authorize the Secretary of the Navy to transfer administrative          
   jurisdiction of a parcel of real property consisting of approximately 26
   acres located at the former facilities of the Naval Security Group      
   Activity in Winter Harbor, Maine to the Secretary of the Interior. The  
   transfer would be concurrent with the reversion of administrative       
   jurisdiction of approximately 71 acres from the Secretary of Navy to the
   Secretary of Interior.                                                  
       The provision would also authorize the Secretary of the Navy to     
   convey for public benefit purposes to the State of Maine, any political 
   subdivision of the State of Maine, or any tax-supported agency in the   
   State of Maine a parcel of real property and associated personal        
   property consisting of approximately 485 acres comprising the facilities
   of the former Naval Security Group Activity at Winter Harbor. Prior to  
   the conveyance of the property, the Secretary of the Navy would be      
   authorized to lease all or part of the property. The Secretary would    
   credit any amount received for a lease of real property to the          
   appropriate account providing funds for the operation and maintenance of
   the property or for procurement of utilities.                           
    The House amendment contained a similar provision (sec. 2845).         

       The House recedes with an amendment that would make technical       
   corrections and would require that the proceeds from any lease be       
   distributed under current law. The amendment would also clarify that the
   recipient of the property would be required to reimburse the Secretary  
   for any excess costs that result from a request by the recipient for any
   environmental assessments or other activities that result in additional 
   costs to the Navy beyond those considered reasonable and necessary by   
   the Secretary to convey the property in compliance with existing law.   
           Land acquisition, Perquimans County, North Carolina (sec. 2846)         

       The Senate bill contained a provision (sec. 2831) that would        
   authorize the Secretary of the Navy to acquire approximately 240 acres  
   in Perquimans County, North Carolina. The purpose of the acquisition    
   would be to provide a buffer zone for the Harvey Point Defense Testing  
   Activity, Hertford, North Carolina.                                     
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Land conveyance, Naval Weapons Industrial Reserve Plant,     
           Toledo, Ohio (sec. 2847)                                                
       The Senate bill contained a provision (sec. 2826) that would        
   authorize the Secretary of the Navy to convey, without consideration, to
   the Toledo-Lucas County Port Authority, Ohio a parcel of real property  
   consisting of approximately 29 acres comprising the Naval Industrial    
   Reserve Plant in Toledo, Ohio. The Secretary would be authorized to     
   convey such facilities, equipment, fixtures and other personal property 
   located or based on the parcel that the Secretary considers excess to   
   the Navy.                                                               
       The provision would also permit the Secretary to lease the property 
   to the Port Authority before the conveyance takes place and would       
   require as conditions of the conveyance that the Port Authority accept  
   all property in its current condition at the time of conveyance or      
   lease, and that the property be used for economic development. The Port 
   Authority would be authorized to sublease the facility with the prior   
   approval of the Secretary.                                              
    The House amendment contained a similar provision (sec. 2842).         

       The House recedes with an amendment that would clarify that the     
   recipient of the property would be required to reimburse the Secretary  
   for any excess costs that result from a request by the recipient for any
   environmental assessments or other activities that result in additional 
   costs to the Navy beyond those considered reasonable and necessary by   
   the Secretary to convey the property in compliance with existing law.   
                      Modification of land conveyance, former United States Marine 
           Corps Air Station, Eagle Mountain Lake, Texas (sec. 2848)               
       The House amendment contained a provision (sec. 2844) that would    
   amend section 5 of Public Law 85 258, to permit the Texas Military      
   Facilities Commission to use funds acquired through the leasing of Eagle
   Mountain Lake National Guard Training Site for other Texas National     
   Guard facilities.                                                       
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                               PART III--AIR FORCE CONVEYANCES                    

                      Conveyance of avigation easements, former Norton Air Force   
           Base, California (sec. 2851)                                            

       The House amendment contained a provision (sec. 2867) that would    
   direct the Administrator of General Services to convey to the Inland    
   Valley Development Agency the avigation easements APN 289 231 08 and APN
   289 232 08.                                                             
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would direct, as a        
   condition of conveyance, that if the Inland Valley Development Agency   
   sells one or both easements within 10 years of conveyance, the Agency   
   shall pay the United States an amount equal to the lesser of the sale   
   price of the easement or the fair market value of the easement.         
                      Reexamination of land conveyance, Lowry Air Force Base,      
           Colorado (sec. 2852)                                                    
       The House amendment contained a provision (sec. 2852) that would    
   direct the Secretary of the Air Force to reevaluate the terms and       
   conditions of the pending negotiated sale agreement at Lowry Air Force  
   Base, Colorado with the Lowry Redevelopment Authority for certain real  
   property in light of changed circumstances regarding the property. The  
   reexamination shall determine whether changed circumstances warrant a   
   reduction in the amount of consideration otherwise required under the   
   agreement or other modifications to the agreement.                      
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

           Water rights conveyance, Andersen Air Force Base, Guam (sec. 2853)      

       The House amendment contained a provision (sec. 2851) that would    
   authorize the Secretary of the Air Force to convey water rights related 
   to the Air Force properties Andy South, also known as the Andersen      
   Administrative Annex; Marianas Bonis Base Command; and Andersen Water   
   Supply Annex, also known as the Tumon Water Well or the Tumon Maui Well,
   located on Guam. The Secretary may exercise authority under certain     
   specified conditions. This section would authorize the Secretary, if he 
   determines that it is in the best interest of the United States to      
   transfer title to the water rights and utility system before a          
   replacement water system is in place, to require that the United States 
   have the primary right to all water produced from Andy South and        
   Andersen Water Supply Annex. The Secretary may authorize the conveyee of
   the water system to sell to public or private entities such water from  
   Andersen Air Force Base as the Secretary determines to be excess to the 
   needs of the United States.                                             
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

       The conferees expect the Secretary of the Air Force to follow the   
   reporting requirements of section 2688 of title 10, United States Code  
   with respect to this conveyance.                                        
                      Conveyance of segment of Loring Petroleum Pipeline, Maine,   
           and related easements (sec. 2854)                                       
       The Senate bill contained a provision (sec. 2824) that would        
   authorize the Secretary of the Air Force to convey to the Loring        
   Development Authority, Maine, a segment of approximately 27 miles of the
   Loring Petroleum Pipeline, along with related easements. The provision  
   would require the Loring Development Authority to reimburse the         
   Secretary for any environmental assessment, study, analysis or other    
   expenses incurred for the conveyance.                                   
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would make technical       
   corrections and would clarify that the recipient of the property would  
   be required to reimburse the Secretary for any excess costs that result 
   from a request by the recipient for any environmental assessments or    
   other activities that result in additional costs to the Air Force beyond
   those considered reasonable and necessary by the Secretary to convey the
   property in compliance with existing law.                               
                      Land conveyance, petroleum terminal serving former Loring Air
           Force Base and Bangor Air National Guard Base, Maine (sec. 2855)        
       The Senate bill contained a provision (sec. 2825) that would        
   authorize the Secretary of the Air Force to convey to the Maine Port    
   Authority of the State of Maine the petroleum terminal at Mack Point in 
   Searsport, Maine for the purpose of economic development. The conveyance
   may include a parcel of real property consisting of approximately 20    
   acres and comprising a portion of the petroleum terminal and any        
   additional fuel tanks, other improvements, and equipment located at the 
   43-acre parcel located adjacent to the petroleum terminal and currently 
   leased by the Secretary. The Secretary could not convey the 43 acres    
   until the lease expires and until the Secretary completes any           
   environmental remediation required by law.                              
       As consideration for the conveyance, the Authority would lease to   
   the Air Force, at no cost for a period of no more than 25 years,        
   approximately one acre that constitutes the Aerospace Fuels Laboratory. 
   As part of the lease, the Authority would maintain around the real      
   property a zone free of improvements or encumbrances. The provision     
   would also require the Authority to reimburse the Secretary for the     
   costs incurred by the Secretary for any environmental assessment, study,
   or analysis, or for any other expense incurred by the Secretary for the 
   conveyance.                                                             
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would make technical       
   corrections and would clarify that the recipient of the property would  
   be required to reimburse the Secretary for any excess costs that result 
   from a request by the recipient for any environmental assessments or    
   other activities that result in additional costs to the Air Force beyond
   those considered reasonable and necessary by the Secretary to convey the
   property in compliance with existing law.                               
                      Land conveyances, certain former Minuteman III ICBM          
           facilities in North Dakota (sec. 2856)                                  
       The Senate bill contained a provision (sec. 2830) that would        
   authorize the Secretary of the Air Force to convey to the State         
   Historical Society of North Dakota the launch facility designated       
   ``November 33'' and the missile alert facility and launch control center
   designated ``Oscar O'' located at Grand Forks Air Force Base, North     
   Dakota. The purpose of the conveyance would be to establish an          
   historical site. The provision would direct the Secretary of the Air    
   Force to consult with the Secretary of Defense and the Secretary of     
   State to ensure that the conveyance of the site is accomplished in      
   accordance with applicable treaties.                                    
    The House amendment contained no similar provision.                    

    The House recedes with a technical amendment.                          

           Land conveyances, Charleston Air Force Base, South Carolina (sec. 2857) 

       The Senate bill contained a provision (sec. 2828) that would        
   authorize the Secretary of the Air Force to convey approximately 24     
   acres at Charleston Air Force Base known as the Air Force Military      
   Family Housing Annex to the City of North Charleston and the State of   
   South Carolina. The conveyances would be for the purpose of road        
   construction and for municipal use.                                     
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Transfer of jurisdiction, Mukilteo Tank Farm, Everett,       
           Washington (sec. 2858)                                                  
       The Senate bill contained a provision (sec. 2827) that would modify 
   section 2866 of the Military Construction Authorization Act for Fiscal  
   Year 2001 to direct the Secretary of the Air Force to transfer          
   approximately 1.1 acres at the Mukilteo Tank Farm to the administrative 
   jurisdiction of the Secretary of Commerce for a research center for the 
   National Marine Fisheries Service. The provision would also make certain
   technical corrections and provide certain authorities to the Secretary  
   of Commerce to exchange the property and would require the Secretary of 
   Commerce to convey the property to the Port of Everett after 12 years if
   it is no longer required.                                               
    The House amendment contained no similar provision.                    

    The House recedes with a technical amendment.                          

                                  SUBTITLE E--OTHER MATTERS                       

           Management of the Presidio of San Francisco (sec. 2861)                 

       The House amendment contained a provision (sec. 2863) that would    
   amend title I of the Omnibus Parks and Public Lands Management Act of   
   1996 (Public Law 104 333) to authorize the Trust to make available to   
   lease certain housing units to persons designated by the Secretary of   
   the Army, within the Presidio of San Francisco, California. The monthly 
   amount charged by the Trust for the lease of a housing unit, including  
   utilities and municipal services, shall not exceed the monthly rate of  
   the basic allowance for housing. This section would also increase the   
   borrowing authority in section 104 of title I of division I of the      
   Omnibus Parks and Public Lands Management Act of 1996 (Public Law 104   
   333) from $50.0 million to $150.0 million.                              
    The Senate bill contained no similar provision.                        

    The Senate recedes with a technical amendment.                         

                      Transfer of jurisdiction for development of Air Force morale,
           welfare, and recreation facility, Park City, Utah (sec. 2862)           
       The House amendment contained a provision (sec. 2861) that would    
   direct the Secretary of the Interior to transfer, without reimbursement,
   administrative jurisdiction of a parcel of real property, including     
   improvements, consisting of approximately 35 acres located in Park City,
   Utah to the Secretary of the Air Force. The transfer would be completed 
   not later than one year after the date of the enactment of this Act.    
       The House amendment would authorize the Secretary of the Air Force  
   to use the real property as the location for an armed forces recreation 
   facility to be developed using non-appropriated funds. In lieu of       
   developing the recreation facility on this site, the Secretary of the   
   Air Force could convey or lease the property to other entities in       
   exchange for other property that would be used as the site for the      
   recreation facility, and could lease the property selected as the site  
   for the recreation facility to another entity or enter into a contract  
   with another entity for the construction and operation of the recreation
   facility as a mixed military and commercial facility.                   
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would authorize, rather   
   than require, the Secretary of the Interior to transfer the property,   
   that would exclude lands south of state Highway 248 that may be         
   contaminated from the transfer, and would also provide that the property
   be transferred to allow for the development of an Air Force morale,     
   welfare and recreation facility rather than an armed forces recreation  
   facility.                                                               
       The conferees direct the Secretary of the Air Force to ensure that  
   any morale, welfare and recreation facility constructed under the       
   authority of this section be operated primarily for the benefit of      
   military personnel and their families.                                  
                      Alternative site for United States Air Force Memorial,       
           preservation of open space on Arlington Ridge Tract, and related land   
           transfer at Arlington National Cemetery, Virginia (sec. 2863)           
       The House amendment contained a provision (sec. 2862) that would    
   require the Secretary of Defense to offer to the Air Force Memorial     
   Foundation an option to use, without reimbursement, up to three acres of
   the Arlington Naval Annex as the site for the construction of the Air   
   Force Memorial. Within 90 days after the date on which the Secretary of 
   Defense makes the offer, the Foundation would provide written notice to 
   the Secretary of the decision of the Foundation to accept or decline the
   offer. If the Foundation accepted the offer, the Foundation would       
   relinquish all claims to the previously approved site for the memorial  
   on Arlington Ridge. If the Foundation declined the offer, the Foundation
   could resume its efforts to construct the memorial on the Arlington     
   Ridge tract. Not later than two years after the date on which the       
   Foundation accepted the offer, and had made sufficient funds available  
   to construct the memorial, the Secretary, in coordination with the      
   Foundation, would remove all structures and prepare the Arlington Naval 
   Annex site for construction of the memorial. Upon removal of structures 
   and preparation of the property for use, the Secretary of Defense would 
   permit the Foundation to commence construction.                         
       The House amendment would direct the Secretary of the Interior to   
   transfer, without reimbursement, to the Secretary of the Army           
   administrative jurisdiction over: most of an approximately 24-acre      
   parcel of land within the boundaries of Arlington National Cemetery     
   known as Section 29 for the purpose of providing additional land for    
   burial sites; and the Arlington Ridge tract in order to make up to 15   
   acres of additional land available for burial sites. The amendment would
   also amend section 2902 of the Military Construction Authorization Act  
   for Fiscal Year 2000 (division B of Public Law 106 65) to prohibit      
   consideration of the Arlington Naval Annex property as a possible site  
   for a national military museum.                                         
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would direct the Secretary
   of Defense to make available to the Air Force Memorial Foundation up to 
   three acres of the Naval Annex property for use as the location for the 
   Air Force Memorial. The three acres would be in lieu of the Arlington   
   Ridge tract and shall be the site of the memorial unless the Secretary  
   of Defense determines that constructing the Air Force Memorial on the   
   Naval Annex property is impracticable due to geological conditions at   
   the site. In the event construction at the Naval Annex site is          
   impracticable, the location of the memorial would revert to the         
   Arlington Ridge tract location. If the Foundation fails to commence     
   construction of the memorial within five years of the date of enactment 
   of this Act, the Secretary of Defense may revoke the authority to use   
   the Naval Annex property for the Air Force Memorial.                    
       The amendment would require, upon notification by the Foundation    
   that it had accumulated sufficient funds to begin construction, the     
   Secretary of Defense to demolish and remove Wing 8 of the Naval Annex   
   and associated facilities and carry out environmental remediation and   
   such site preparation as the Secretary agreed to undertake, within two  
   years. The amendment would also designate the Department of the Army as 
   the executive agent for finding replacement facilities for the Ballistic
   Missile Defense Organization, which currently occupies the facilities on
   this site.                                                              
       The amendment would direct the Secretary of the Interior to transfer
   to the administrative jurisdiction of the Secretary of the Army 12      
   acres, known as the interment zone, as depicted in Map VI 4 on page VI  
   23 of the Concept Utilization Plan for Arlington National Cemetery dated
   October 2000. The transferred property would be used by Arlington       
   National Cemetery for additional burial sites. The Secretary of the     
   Interior would be required to preserve in perpetuity the remaining      
   acreage of Section 29, including the portion known as the preservation  
   zone, as an appropriate backdrop and aesthetic setting for Arlington    
   House, The Robert E. Lee Memorial.                                      
       The amendment would also prohibit any new structures on the         
   Arlington Ridge tract and would specify that the only other land use to 
   be contemplated in the future for this site would be as additional      
   burial space for Arlington National Cemetery.                           
       The amendment would also amend section 2881 of the Military         
   Construction Authorization Act for Fiscal Year 2000 (division B of      
   Public Law 106 65) to direct the Secretary of Defense to reserve no more
   than four acres of the Naval Annex property, south of Columbia Pike, as 
   a site for memorials or museums that the Secretary of Defense considers 
   compatible with Arlington Cemetery and the Air Force Memorial.          
       The conferees direct the Secretary of Defense to provide a report to
   Congress, prior to the date on which he transfers the three-acre parcel 
   on the Naval Annex site to the Secretary of the Army, providing his     
   determination as to whether construction of the Air Force Memorial on   
   this site, together with the public access required for the Memorial, is
   consistent with the security requirements of the Pentagon and the Naval 
   Annex. If the Secretary determines this location is not fully consistent
   with such security requirements, the Secretary shall include in his     
   recommendations the steps that should be taken to address any security  
   concerns.                                                               
                      Establishment of memorial to victims of terrorist attack on  
           Pentagon Reservation and authority to accept monetary contributions for 
           memorial and repair of Pentagon (sec. 2864)                             
       The Senate bill contained a provision (sec. 2845) that would        
   authorize the Secretary of Defense to accept monetary contributions made
   for the purpose of establishing a memorial or assisting in repair and   
   reconstruction of the Pentagon Reservation following the terrorist      
   attack that occurred on September 11, 2001. The funds would be deposited
   in the Pentagon Reservation Maintenance Revolving Fund.                 
       The House amendment contained a provision (sec. 1055) that would    
   authorize the Secretary of Defense to accept monetary contributions to  
   finance the repair and reconstruction of the Pentagon Reservation       
   following the terrorist attack that occurred on September 11, 2001. The 
   funds would be deposited in the Pentagon Reservation Maintenance        
   Revolving Fund.                                                         
       The House recedes with an amendment that would authorize the        
   Secretary of Defense to establish the memorial and would direct that    
   contributions received could be used only for establishing a memorial or
   to repair the damage to the Pentagon Reservation caused by the terrorist
   attack.                                                                 
                      Repeal of limitation on cost of renovation of Pentagon       
           Reservation (sec. 2865)                                                 
       The Senate bill contained a provision (sec. 2842) that would repeal 
   section 2864 of the Military Construction Authorization Act for Fiscal  
   Year 1997 (division B of Public Law 104 210;110 Stat. 2806) limiting the
   cost of renovating the Pentagon Reservation to $1.1 billion.            
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Development of United States Army Heritage and Education     
           Center at Carlisle Barracks, Pennsylvania (sec. 2866)                   
       The Senate bill contained a provision (sec. 2841) that would        
   authorize the Secretary of the Army to enter into a partnership with the
   Military Heritage Foundation for the design, construction and operation 
   of a U.S. Army Heritage and Education Center at Carlisle Barracks,      
   Pennsylvania. The facility would provide research facilities,           
   classrooms, offices and associated activities for the study and storage 
   of artifacts. The Secretary would be authorized to accept funds from the
   Heritage Foundation for the design and construction of the U.S. Army    
   Heritage and Education Center or to permit the Military Heritage        
   Foundation to contract for the design and construction of the facility. 
   The facility would become the property of the Department of the Army    
   upon the satisfaction of any and all financial obligations incurred by  
   the Military Heritage Foundation. The provision would also authorize the
   Commandant of the U.S. Army War College, under regulations prescribed by
   the Secretary, to accept gifts for the benefit of the United States Army
   Heritage and Education Center.                                          
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would clarify that the     
   design of the facility must be approved by the Secretary whether the    
   facility is constructed by the Army or by the Foundation.               
                      Effect of limitation on construction of roads or highways,   
           Marine Corps Base, Camp Pendleton, California (sec. 2867)               
       The House amendment contained a provision (sec. 2864) that would    
   amend section 2851 of the Military Construction Authorization Act for   
   Fiscal Year 1999 (division B of Public Law 105 261), as amended, by     
   authorizing limitations of State law enacted after January 1, 2001 that 
   directly or indirectly prohibit or restrict the construction or approval
   of a road or highway within the easements granted under this section at 
   Marine Corps Base, Camp Pendleton, California.                          
    The Senate bill contained no similar provision.                        

    The Senate recedes with a technical amendment.                         

                      Establishment of World War II Memorial at additional location
           on Guam (sec. 2868)                                                     
       The House amendment contained a provision (sec. 2865) that would    
   amend section 2886 of the Military Construction Authorization Act for   
   Fiscal Year 2001 (division B of Public Law 106 398) by authorizing the  
   establishment of an additional World War II Memorial on federal lands   
   near Yigo, Guam.                                                        
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

       The conferees expect that in establishing the additional memorial,  
   the Secretary of Defense shall apply the same minimal maintenance       
   criteria as required in the previous authorization.                     
                      Demonstration project for purchase of fire, security, police,
           public works, and utility services from local government agencies (sec. 
           2869)                                                                   
       The House amendment contained a provision (sec. 2866) that would    
   amend section 816 of the National Defense Authorization Act for Fiscal  
   Year 1995, as amended by section 2873 of the Strom Thurmond National    
   Defense Authorization Act for Fiscal Year 1999, to extend the authority 
   for the purchase of services from local government agencies at Monterey,
   California authorized under this project, other than fire-fighting and  
   police services, through fiscal year 2003.                              
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would extend the authority
   for the purchase of fire-fighting and police services through January   
   31, 2002, and would extend the authority for the purchase of other      
   services, including utilities and public works, through fiscal year     
   2003.                                                                   
                      Report on future land needs of United States Military        
           Academy, New York, and adjacent community (sec. 2870)                   
       The House amendment contained a provision (sec. 2868) that would    
   direct the Secretary of the Army to submit to the Congress not later    
   than February 1, 2002, a report evaluating various options by which the 
   Secretary may promote economic development in the Village of Highland   
   Falls, New York.                                                        
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would direct the Secretary
   of the Army to assess the land requirements of the United States        
   Military Academy and determine if any excess real property is available 
   for either transfer or lease to the Village of Highland Falls. The      
   Secretary would be required to report his findings to the Congress by   
   February 1, 2002.                                                       
                      Naming of Patricia C. Lamar Army National Guard Readiness    
           Center, Oxford, Mississippi (sec. 2871)                                 
       The Senate bill contained a provision (sec. 2843) that would name   
   the Oxford Army National Guard Readiness Center as the Patricia C. Lamar
   Army National Guard Readiness Center.                                   
    The House amendment contained no similar provision.                    

    The House recedes with a technical amendment.                          

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Authority available for lease of property and facilities     
           under alternative authority for acquisition and improvement of military 
           housing                                                                 
       The Senate bill contained a provision (sec. 2804) that would amend  
   the authorities for lease or conveyance of property in connection with  
   military family housing privatization to allow the military departments 
   to use the authorities contained in section 2667 of title 10, United    
   States Code. This provision would provide additional flexibility for the
   military departments to make use of the value of assets at one          
   installation for use at privatization projects at other installations.  
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees urge the Secretary of Defense to explore innovative   
   approaches to maximize the Department's fiscal and real property        
   resources in executing the housing privatization projects.              
           Land conveyance, Defense Fuel Support Point, Lynn Haven, Florida        

       The House amendment contained a provision (sec. 2853) that would    
   authorize the Secretary of the Air Force to convey to Florida State     
   University approximately 200 acres located at the Defense Fuel Support  
   Point, Lynn Haven, Florida. The purpose of the conveyance would be to   
   establish a National Coastal Research Center.                           
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

                      Payment for certain services provided by redevelopment       
           authorities for property leased back by the United States               
       The Senate bill contained a provision (sec. 2911) that would amend  
   the Defense Authorization Amendments and Base Closure and Realignment   
   Act (Public Law 100 526; section 2687 of title 10, United States Code)  
   that governs the 1988 round of base closures to authorize the secretary 
   concerned to transfer real property at a closed or realigned military   
   installation to the redevelopment authority for the installation, if the
   redevelopment authority agrees, directly upon transfer, to lease one or 
   more portions of the property transferred to the secretary concerned or 
   to the head of another department or agency of the Federal Government.  
   The provision would also allow the United States to pay the             
   redevelopment authority for facility services and common area           
   maintenance.                                                            
       The House amendment contained a similar provision (sec. 2821) that  
   would amend both the Defense Authorization Amendments and Base Closure  
   and Realignment Act and the Defense Base Closure and Realignment Act of 
   1990 (part A of title XXIX of Public Law 101 510; 10 U.S.C. 2687 note)  
   that governs the 1991, 1993 and 1995 rounds of base closures to provide 
   these authorities.                                                      
    The Senate recedes.                                                    

       The conferees agreed to include the amendments to both the 1998 and 
   1990 base closure laws in a single provision elsewhere in this Act.     
           Treatment of amounts received                                           

       The Senate bill contained a provision (sec. 2833) that would require
   any proceeds received from the sale of a former Army Reserve Center in  
   Kewaunee, Wisconsin that would be authorized to be conveyed by section  
   2832 of the Senate bill to be deposited into the Land and Water         
   Conservation Fund in the event the property reverted to the United      
   States.                                                                 
    The House amendment contained no similar provision.                    

       The Senate recedes. The conferees agreed to include this condition  
   in the provision authorizing the conveyance of the property in Kewaunee,
   Wisconsin that is included in title XXVIII of this Act.                 
                      TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL             

       The House amendment contained a series of provisions (secs. 2901    
   2913) that would provide for the withdrawal of 110,000 acres to support 
   the expansion of the National Training Center (NTC) at Fort Irwin,      
   California.                                                             
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment to the provision regarding     
   environmental compliance agreements (sec. 2906) as described below.     
           Short title (sec. 2901)                                                 

       This provision would designate title XXIX of this Act as the ``Fort 
   Irwin Military Land Withdrawal Act of 2001.''                           
                      Withdrawal and reservation of lands for National Training    
           Center (sec. 2902)                                                      
       This provision would withdraw approximately 110,000 acres of public 
   lands in San Bernardino County, California from general land laws and   
   would transfer jurisdiction of these lands to the Secretary of the Army 
   for military testing, training, and other defense-related purposes at   
   the NTC.                                                                
           Map and legal description (sec. 2903)                                   

       This provision would require the Secretary of the Interior to       
   publish in the Federal Register the legal description of the lands      
   withdrawn and reserved by this title and to file a map and legal        
   description of such lands with the Committee on Energy and Natural      
   Resources of the Senate and the Committee on Resources of the House of  
   Representatives. These documents would also be available for public     
   inspection. The Secretary of the Army would be required to reimburse the
   Secretary of the Interior for costs related to the implementation of    
   this provision.                                                         
           Management of withdrawn and reserved lands (sec. 2904)                  

       This provision would require the Secretary of the Army, during the  
   period of the withdrawal and reservation, to manage such lands for the  
   training and testing purposes specified in section 2902. However,       
   military use of the lands that result in ground disturbances would be   
   prohibited until the Secretary of the Army and the Secretary of the     
   Interior certify to Congress that there has been full compliance with   
   this title, the Endangered Species Act of 1973 (16 U.S.C 1531 et seq.), 
   the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 
   and other applicable laws. The Secretary of the Army would be authorized
   to restrict public access on the withdrawn lands. The provision would   
   also require the Secretary of the Army to prepare and implement an      
   integrated natural resource management plan for the withdrawn lands, in 
   accordance with the Sikes Act (16 U.S.C. 670 et seq.), and to consult   
   with the National Aeronautics and Space Administration (NASA) regarding 
   potential disruptions to NASA operations.                               
           Water rights (sec. 2905)                                                

       This provision would clarify that this title does not create any    
   water rights for the United States on the withdrawn lands. The provision
   would not affect any water rights acquired or reserved by the United    
   States before the date of enactment of this Act.                        

                      Environmental compliance and environmental response          
           requirements (sec. 2906)                                                
       The conferees agreed to a provision that would require, rather than 
   permit, the Secretary of the Army and the Secretary of the Interior to  
   enter into such agreements as are necessary, appropriate, and in the    
   public interest to carry out the purposes of this title. Such agreements
   should provide that the Secretary of the Army consult with the Secretary
   of the Interior with respect to proposed and final response actions.    
   Such agreements should also provide that the Secretary of the Army      
   reimburse the Secretary of the Interior for any costs incurred by the   
   Secretary of the Interior as a result of the Army's activities on the   
   withdrawn and reserved lands.                                           
           West Mojave Coordinated Management Plan (sec. 2907)                     

       This provision would urge the Secretary of the Interior to complete 
   the West Mojave Coordinated Management Plan not later than two years    
   after the date of enactment of this Act. The Secretary of the Interior  
   would ensure that this plan considers the impacts of this title. The    
   provision would also require the Secretary of the Interior to consult   
   with the Secretary of the Army and the Administrator of the National    
   Aeronautics and Space Administration on the development of the plan.    
           Release of wilderness study areas (sec. 2908)                           

       This provision would determine that the public lands withdrawn under
   this title have been adequately studied for wilderness designation.     
           Training activity separation from utility corridors (sec. 2909)         

       This provision would require that all military ground activity      
   training conducted on withdrawn lands remain at least 500 meters from   
   any existing utility system.                                            
           Duration of withdrawal and reservation (sec. 2910)                      

       Under this provision, the withdrawal and reservation made by this   
   title would terminate 25 years after the date of the enactment of this  
   Act, unless otherwise extended, postponed, or affected by a delay in the
   Secretary of the Interior in accepting jurisdiction.                    
           Extension of initial withdrawal and reservation (sec. 2911)             

       This provision would require the Secretary of the Army, no later    
   than three years before the termination of the 25-year withdrawal, to   
   notify Congress and the Secretary of the Interior whether the Army has a
   continuing military need for the withdrawn lands. If the Secretary of   
   the Army determines there is a continuing military need, the Secretary  
   of the Army shall consult with the Secretary of the Interior regarding  
   any adjustments in the allocation of land management responsibility and 
   file an application for an extension of the withdrawal and reservation  
   with the Secretary of the Interior. The provision would also authorize  
   the Secretary of the Army and the Secretary of the Interior to submit a 
   legislative proposal to Congress on the extension of the land           
   withdrawal. The legislative proposal would be accompanied by an analysis
   of the environmental impacts, consistent with the National Environmental
   Policy Act of 1969 (42 U.S.C. 4321 et seq.).                            
           Termination and relinquishment (sec. 2912)                              

       Under this provision, if the Secretary of the Army determines that  
   there is no continuing military need for any withdrawn lands during the 
   first 22 years of the withdrawal period, the Secretary of the Army shall
   notify the Secretary of the Interior of the intent to relinquish        
   jurisdiction over such lands. If the Secretary of the Interior accepts  
   jurisdiction, the Secretary shall publish in the Federal Register an    
   appropriate order terminating the withdrawal.                           
           Delegation of Authority (sec. 2913)                                     

       This provision would authorize the Secretary of the Army and the    
   Secretary of the Interior to delegate the functions necessary to        
   implement this title.                                                   

             TITLE XXX--REALIGNMENT AND CLOSURE OF MILITARY INSTALLATIONS AND     
       PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS COMPLEX         
       Title XXIX of the Senate bill contained a series of provisions      
   (secs. 2901 2904) that would extend the authorities of the Defense Base 
   Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 
   101 510, as amended) and authorize a new base realignment and closure   
   (BRAC) round in 2003.                                                   
       Section 2901 of the Senate bill would extend the authorities of the 
   1990 Act, which expired after the 1995 BRAC round, to authorize a new   
   BRAC round in 2003 for the Department of Defense (DOD).                 
       Section 2902 of the Senate bill would establish a separate account  
   to track the costs and savings of the 2003 round.                       
       Section 2903 of the Senate bill would make substantive changes in   
   the 1990 Act that would apply to the 2003 round. This provision would:  
   increase the number of commissioners from eight to nine; require that   
   the selection criteria emphasize the military value of installations;   
   require that any selection criteria relating to the cost or savings of  
   proposed closures take into account the impact of the closure on other  
   federal agency operations on that installation; require the Secretary of
   Defense to review every type of installation and to take into account   
   the anticipated need for and availability of overseas installations in  
   the future; and require the Secretary to consider any notice from a     
   local government that the government would approve of the closure of a  
   neighboring installation.                                               
       This section would also: give the commission an additional 24 hours 
   to provide information received from certain individuals to the         
   Congress; require that the Secretary of Defense be given an opportunity 
   to testify before the commission on changes made by the commission to   
   the Secretary's recommendations; prohibit privatization in place of     
   closed or realigned facilities unless it was specifically recommended by
   the base closure commission and determined to be the most cost-effective
   option; allow payment to a local redevelopment authority for services   
   provided on property leased back by the United States; and allow the DOD
   to pay the difference to the recipient if the estimated cost to the     
   recipient to clean up a BRAC site exceeds the value of the property.    
       Section 2904 of the Senate bill would make technical and clarifying 
   changes to the 1990 Act.                                                
    The House amendment contained no similar provisions.                   

       The House recedes with an amendment that would authorize an         
   additional BRAC round in 2005 rather than 2003 and make additional      
   changes to the process authorized under the 1990 Act for the 2005 round.
       Unless specifically changed by the provisions of this Act, the 2005 
   BRAC round would operate under the authorities and requirements of the  
   Defense Base Closure and Realignment Act of 1990 (part A of title XXIX  
   of Public Law 101 510, as amended).                                     
           Procedures for the Department of Defense (secs. 3001 3007)              

       The conferees agree to authorize a round of base realignment and    
   closure for the Department of Defense in 2005. The conference agreement 
   modifies the procedures used in the 1991, 1993 and 1995 rounds as       
   described below.                                                        
            Recommendations by the Secretary                                        

       With respect to the recommendations of the Secretary of Defense, the
   conferees have modified the process used in prior rounds as follows.    
       The force structure plan submitted by the Secretary of Defense with 
   the fiscal year 2005 budget would include detailed information on       
   probable end-strength and force levels for the military services,       
   including major ground combat units, combatant vessels and air wings.   
   The Secretary would be required to review every type of installation and
   to take into account the anticipated need for and availability of       
   overseas installations in the future.                                   
       The Secretary would be permitted to submit a revised force structure
   plan with the fiscal year 2006 budget.                                  
       The Secretary would be required to include with the force structure 
   plan: an inventory of military installations; a description of the      
   categories of excess infrastructure; and an economic analysis of the    
   options for eliminating or reducing that excess infrastructure,         
   including potential efficiencies from joint use and tenancy of military 
   installations by more than one service.                                 
       The Secretary would be required to certify, when the force structure
   plan and infrastructure inventory are submitted, whether the need exists
   for closure or realignment of additional military installations and, if 
   such need exists, that a round of such closures and realignments in 2005
   would produce annual net savings within six years. If the Secretary     
   failed to provide this certification, the process for closure or        
   realignment of installations under the provisions of this Act for 2005  
   would be terminated.                                                    
       The conferees have specified factors that must be evaluated and     
   incorporated in the Secretary's final list of criteria, including the   
   military value of installations for both the preservation of training   
   areas for traditional warfighting missions and the preservation of      
   installations for homeland defense. However, the Secretary is not       
   limited to the criteria contained in this Act. Any selection criteria   
   relating to the cost or savings of proposed closures would have to take 
   into account the impact of the closure on other federal agency          
   operations on that installation.                                        
       The General Accounting Office would be required to submit to        
   Congress an evaluation of the force structure plan, the installation    
   inventory and the selection criteria.                                   
            Consideration of the Secretary's proposal by the commission             

       With respect to the proceedings of the commission, the conferees    
   agree to the following changes.                                         
       The number of commissioners for the 2005 round would be increased   
   from eight to nine.                                                     
       The commission would have 48 hours rather than 24 hours to provide  
   information received from certain individuals of the Department of      
   Defense to the Congress.                                                
       Prior to any decision to add an installation not proposed to be     
   closed or realigned by the Secretary to the list of installations to be 
   considered for closure or realignment by the commission, the commission 
   would be required to give the Secretary 15 days to submit an explanation
   of why the Secretary did not propose that installation for closure or   
   realignment. A decision to add that installation to the list of         
   installations being considered would then have to be supported by at    
   least seven commissioners.                                              
       The Secretary of Defense would be given an opportunity to testify   
   before the commission on changes proposed by the commission to the      
   Secretary's recommendations.                                            
       Privatization in place of closed or realigned facilities would be   
   prohibited unless it was specifically recommended by the commission and 
   determined to be the most cost-effective option.                        
            Disposal of property                                                    

       With respect to the disposal of property from closed or realigned   
   facilities, the conferees have modified the process as follows.         
       The conference agreement would require the Secretary of Defense to  
   obtain fair market value for economic development conveyances in most   
   cases, unless the Secretary determines the circumstances warrant a      
   below-cost or no-cost conveyance.                                       
       The conferees agree to allow the Secretary to recommend that an     
   installation be placed in an inactive or caretaker status if the        
   Secretary determines that the installation may be needed in the future  
   for national security purposes, but is not needed at the present time,  
   or that retention of the installation by the Department of Defense is   
   otherwise in the interests of the United States.                        
       The DOD would be authorized to pay to the recipient of the former   
   DOD property the amount by which the estimated cost to the recipient to 
   clean up a BRAC site exceeds the value of the property.                 
       A Department of Defense Closure Account 2005 would be created to    
   fund the costs of implementing any closures or realignments from the    
   2005 round.                                                             
                      Preparation of infrastructure plan for the nuclear weapons   
           complex (sec. 3008)                                                     
       The conferees agree to a provision that would require the Secretary 
   of Energy to develop an infrastructure plan for the nuclear weapons     
   complex adequate to support the nuclear weapons stockpile, the Naval    
   Reactor Program and the non-proliferation and national security         
   activities. In preparing the plan, the Secretary would take into        
   consideration the Department of Defense Nuclear Posture Review, any     
   efficiencies and security benefits of consolidation, and the necessity  
   to have a residual nuclear weapons production capacity. The provision   
   would require the Secretary to submit the plan to Congress, along with  
   any implementing recommendations the Secretary considers appropriate,   
   including whether to establish a formal process by which a round of     
   closures and realignments should take place. Finally, the Secretary     
   would also be required to submit a legislative proposal if the Secretary
   determines the need for additional legislative authority to implement   
   the Secretary's recommendations.                                        

           DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND  
                              OTHER AUTHORIZATIONS                                
                TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS       

           Overview                                                                

       Title XXXI authorizes appropriations for the atomic energy defense  
   activities of the Department of Energy (DOE) for fiscal year 2002,      
   including: the purchase, construction, and acquisition of plant and     
   capital equipment; research and development; nuclear weapons; naval     
   nuclear propulsion; environmental restoration and waste management;     
   operating expenses; and other expenses necessary to carry out the       
   purposes of the Department of Energy Organization Act (Public Law 95    
   91). The title would authorize appropriations in six categories:        
   national nuclear security administration; defense environmental         
   restoration and waste management; defense facilities closure projects;  
   defense environmental management privatization; other defense           
   activities; and defense nuclear waste disposal.                         
       The budget request for atomic energy defense activities at the      
   Department of Energy totaled $13.4 billion, a 1.2 percent decrease from 
   the adjusted fiscal year 2001 level. Of the total amount requested: $5.3
   billion would be for weapons activities; $773.7 million would be for    
   defense nuclear nonproliferation activities; $688.0 million would be for
   naval reactors; $4.5 billion would be for defense environmental         
   restoration and waste management activities; $1.1 billion would be for  
   defense facilities closure projects; $141.5 million would be for defense
   environmental management privatization; $527.6 million would be for     
   other defense activities; and $310.0 million would be for defense       
   nuclear waste disposal.                                                 
       The conferees agree to authorize $14.1 billion for atomic energy    
   defense activities at the Department of Energy, an increase of $721.5   
   million to the budget request. The conferees agree to authorize $7.1    
   billion for the National Nuclear Security Administration (NNSA), an     
   increase of $344.3 million. Of the amount authorized for the NNSA: $5.3 
   billion would be for weapons activities, an increase of $43.5 million;  
   $688.0 million would be for naval reactors, the same as the budget      
   request; and $776.9 million would be for defense nuclear                
   nonproliferation, a $3.2 million increase to the budget request. The    
   conferees agree to authorize $6.2 billion for defense environmental     
   management activities, an increase of $435.2 million. The amount        
   authorized for defense environmental management would be: $4.9 billion  
   for defense environmental restoration and waste management, an increase 
   of $393.2 million; $1.1 billion for defense facilities closure projects,
   an increase of $30.0 million; $959.7 million for site and project       
   completion, an increase of $47.7 million; $3.3 billion for post 2006    
   completion, an increase of $345.0 million; $216.0 million for science   
   and technology development, an increase of $20.0 million; $1.3 million  
   for excess facilities, the amount of the request; $355.8 million for    
   program direction, the amount of the request; and $153.5 million for    
   defense environmental management privatization, an increase of $12.0    
   million. The conferees agree to authorize $499.7 million for other      
   defense activities, a decrease of $28.0 million. The amount authorized  
   for other defense activities would include: $250.4 million for security 
   and emergency operations, a decrease of $18.8 million; $40.8 million for
   the office of intelligence, the amount of the request; $46.0 million for
   counterintelligence, a decrease of $0.4 million; $14.9 million for      
   independent oversight, the amount of the request; $113.3 million for    
   environmental safety and health, a decrease of $1.3 million; $20.0      
   million for worker and community transition, a decrease of $4.4 million;
   $22.0 million for national security program administration support, a   
   decrease of $3.0 million; and $2.9 million for the office of hearings   
   and appeals, the amount of the request. The conferees agree to authorize
   $280.0 million for defense nuclear waste disposal, a decrease of $30.0  
   million.                                                                
       The following table summarizes the budget request and the conferees 
   recommendations:                                                        

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                               LEGISLATIVE PROVISIONS ADOPTED                     

                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         

           National Nuclear Security Administration (sec. 3101)                    

       The budget request included $6.8 billion for activities of the      
   Department of Energy National Nuclear Security Administration (NNSA),   
   subject to reductions and offsets.                                      
       The Senate bill contained a provision (sec. 3101) that would        
   authorize $7.4 billion for the activities of the NNSA, subject to       
   offsets and reductions.                                                 
       The House amendment contained a similar provision (sec. 3101) that  
   would authorize, after reductions and offsets, $6.9 billion for the     
   activities of the NNSA.                                                 
       The conferees agree to include a provision that would authorize,    
   after reductions and offsets, $7.1 billion for the activities of the    
   NNSA. The amounts authorized for the individual program lines reflect   
   the full amount authorized for each program line without the reductions 
   and offsets. The offsets and reductions are included in paragraphs      
   (1)(E) and (2)(G) of this provision. The conferees have included the    
   reduced total amount for the NNSA for convenience only. The total amount
   authorized is the sum total of the individual program lines. The        
   conferees note that each program is authorized at the full amount       
   reflected in the individual program line prior to application of        
   reductions and offsets.                                                 
       The conferees agree to combine the program direction accounts for   
   weapons activities and nonproliferation and national security with the  
   funds for the Office of the Administrator of the NNSA in order to create
   a single account reflecting the efforts of the Administrator to have a  
   more unified NNSA. Not included in this account, however, are the       
   program direction accounts for the Naval Reactors activities and the    
   program direction account for the secure transportation asset.          
       The conferees also agree to include $200.0 million for a new account
   for facilities and infrastructure improvements at the NNSA sites.       
           Defense environmental restoration and waste management (sec. 3102)      

       The budget request included $5.6 billion for environmental          
   management activities, including defense facilities closure projects,   
   subject to reductions and offsets.                                      
       The Senate bill contained a provision (sec. 3102) that would        
   authorize, subject to offsets and reductions, $6.0 billion for          
   environmental management activities, including defense facilities       
   closure projects.                                                       
       The House amendment contained a similar provision (sec. 3102) that  
   would authorize $4.6 billion for defense environmental restoration and  
   waste management activities, after offsets and reductions, but not      
   including closure projects. An additional $1.0 billion was authorized   
   separately for closure projects.                                        
       The conferees agree to include a provision that would authorize,    
   after reductions and offsets, $6.0 billion for defense environmental    
   management activities, including defense facilities closure projects.   
   The amounts authorized for individual program lines reflect the full    
   amount authorized for each program line without the reductions and      
   offsets. The offsets and reductions are included in subsection (b) of   
   this provision. The conferees have included the reduced total amount for
   convenience only. The total amount authorized is the sum total of the   
   individual program lines. The conferees note that each program is       
   authorized at the full amount reflected in the individual program line  
   prior to application of reductions and offsets.                         
           Other defense activities (sec. 3103)                                    

       The budget request included $538.3 million for other defense        
   activities, subject to reductions and offsets.                          
       The Senate bill contained a provision (sec. 3103) that would        
   authorize $512.2 million for other defense activities, subject to       
   reductions and offsets.                                                 
       The House amendment contained a provision (sec. 3103) that would    
   authorize $502.1 million, after reductions and offsets.                 
       The conferees agree to include a provision that would authorize,    
   after reductions and offsets, $499.7 million for other defense          
   activities. The amounts authorized for individual program lines reflect 
   the full amount authorized for each program line without the reductions 
   and offsets. The offsets and reductions are included in subsection (b)  
   of this provision. The conferees have included the reduced total amount 
   for convenience only. The total amount authorized is the sum total of   
   the individual program lines. The conferees note that each program is   
   authorized at the full amount reflected in the individual program lines 
   prior to application of reductions and offsets.                         
           Defense environmental management privatization (sec. 3104)              

       The budget request included $141.5 million for defense environmental
   management privatization projects.                                      
       The Senate bill contained a provision (sec. 3104) that would        
   authorize $157.5 million for defense environmental management           
   privatization projects.                                                 
       The House amendment contained a provision (sec. 3104) that would    
   authorize $126.2 million for defense environmental management           
   privatization projects.                                                 
       The conferees agree to authorize $153.5 million for defense         
   environmental management privatization accounts.                        
           Defense nuclear waste disposal (sec. 3105)                              

       The budget request included $310.0 million for defense nuclear waste
   disposal.                                                               
       The Senate bill contained a provision (sec. 3105) that would        
   authorize $250.0 million for defense nuclear waste disposal.            
       The House amendment contained a provision (sec. 3105) that would    
   authorize $310.0 million for defense nuclear waste disposal.            
       The conferees agree to authorize $280.0 million for defense nuclear 
   waste disposal.                                                         
                          SUBTITLE B--RECURRING GENERAL PROVISIONS                

           Reprogramming (sec. 3121)                                               

       The House amendment contained a provision (sec. 3121) that would    
   prohibit the reprogramming of funds excess of the amount authorized for 
   the program until the Secretary of Energy has notified the congressional
   defense committees and a period of 30 days has elapsed after the date on
   which the notification is received.                                     
    The Senate bill contained a similar provision (sec. 3121).             

    The Senate recedes with a technical amendment.                         

       The conferees note that this provision significantly limits the     
   ability of the Department of Energy (DOE) to reprogram funds and urge   
   the DOE to work with the congressional defense committees to            
   re-establish an internal reprogramming process.                         
           Limits on minor construction projects (sec. 3122)                       

       The Senate bill contained a provision (sec. 3122) that would        
   authorize the Secretary of Energy to carry out minor construction       
   projects using operation and maintenance funds, or facilities and       
   infrastructure funds, if the total estimated cost of the minor          
   construction project does not exceed $5.0 million. In addition, the     
   provision would require the Secretary to submit an annual report        
   identifying each minor construction project undertaken during the       
   previous fiscal year.                                                   
       The House amendment contained a similar provision (sec. 3122) that  
   maintained the description of minor construction projects as general    
   plant projects and that would require a cost variance report.           
       The House recedes with an amendment that would require the Secretary
   of Energy to submit immediately a report to the congressional defense   
   committees when any minor construction project is revised so that the   
   cost of the project exceeds $5.0 million.                               
       The conferees direct the annual report required by this section to  
   be submitted with the budget request. The first report, which would     
   cover fiscal year 2002, should be submitted with the budget request for 
   fiscal year 2004.                                                       
           Limits on construction projects (sec. 3123)                             

       The Senate bill contained a provision (sec. 3123) that would permit 
   any construction project to be initiated and continued only if the      
   estimated cost for the project does not exceed 125 percent of the higher
   of the amount authorized for the project or the most recent total       
   estimated cost presented to the Congress as justification for such      
   project. The Secretary of Energy could not exceed such limits until 30  
   legislative days after the Secretary submits to the congressional       
   defense committees a detailed report setting forth the reasons for the  
   increase. The provision would also specify that the 125 percent         
   limitation would not apply to projects estimated to cost under $5.0     
   million.                                                                
    The House amendment contained an identical provision (sec. 3123).      

    The conference agreement includes this provision.                      

           Fund transfer authority (sec. 3124)                                     

       The Senate bill contained a provision (sec. 3124) that would permit 
   funds authorized by this Act to be transferred to other agencies of the 
   Federal Government for performance of work for which funds were         
   authorized and appropriated. The provision would permit the merger of   
   such transferred funds with the authorizations of the agency to which   
   they are transferred. The provision would also limit, to not more than  
   five percent of the account, the amount of funds authorized by the Act  
   that may be transferred between authorization accounts within the       
   Department of Energy.                                                   
    The House amendment contained an identical provision (sec. 3124).      

    The conference agreement includes this provision.                      

           Authority for conceptual and construction design (sec. 3125)            

       The Senate bill contained a provision (sec. 3125) that would limit  
   the Secretary of Energy's authority to request construction funding     
   until the Secretary has completed a conceptual design. This limitation  
   would apply to construction projects with a total estimated cost greater
   than $5.0 million. If the estimated cost to prepare the construction    
   design exceeds $600,000, the provision would require the Secretary to   
   obtain a specific authorization to obligate such funds. If the estimated
   cost to prepare a conceptual design exceeds $3.0 million, the provision 
   would further require the Secretary to submit to Congress a report on   
   each conceptual design completed under this provision. The provision    
   would also provide an exception to these requirements in the case of an 
   emergency.                                                              
    The House amendment contained a similar provision (sec. 3125).         

    The House recedes with a technical amendment.                          

                      Authority for emergency planning, design, and construction   
           activities (sec. 3126)                                                  
       The Senate bill contained a provision (sec. 3126) that would permit 
   the Secretary of Energy to perform planning and design with funds       
   available to the Department of Energy (DOE) pursuant to sections 3101   
   3104 of title XXXI, including those funds authorized for advanced       
   planning and construction design, whenever the Secretary determines that
   the design must proceed expeditiously to protect the public health and  
   safety, to meet the needs of national defense, or to protect property.  
       The House amendment contained a similar provision that included     
   funds authorized pursuant to sections 3101 3103 of title XXXI (sec.     
   3126).                                                                  
    The House recedes.                                                     

                      Funds available for all national security programs of the    
           Department of Energy (sec. 3127)                                        
       The Senate bill contained a provision (sec. 3127) that would        
   authorize, subject to section 3121 of title XXXI of this Act, amounts   
   appropriated for management and support activities and for general plant
   projects to be made available for use in connection with all national   
   security programs of the Department of Energy.                          
    The House amendment contained an identical provision (sec. 3127).      

    The conference agreement includes this provision.                      

           Availability of funds (sec. 3128)                                       

       The House amendment contained a provision (sec. 3128) that would    
   authorize amounts appropriated for operating expenses for plant and     
   capital equipment for the Department of Energy to remain available until
   expended. Program direction funds would remain available until the end  
   of fiscal year 2003.                                                    
       The Senate bill contained a similar provision but would make program
   direction funds available until the end of fiscal year 2004.            
    The Senate recedes.                                                    

           Transfer of defense environmental management funds (sec. 3129)          

       The Senate bill contained a provision (sec. 3129) that would provide
   the manager of each Department of Energy (DOE) field office with limited
   authority to transfer up to $5.0 million in fiscal year 2002 defense    
   environmental management funds from one program or project. The DOE     
   manager could use this authority to transfer funds outside of the normal
   reprogramming process three times in a fiscal year.                     
       The House amendment contained a provision (sec. 3129) that would    
   provide the manager of the DOE field office authority to make one       
   transfer per fiscal year.                                               
    The House recedes.                                                     

       The conferees agree that this authority shall not be aggregated and 
   that each transfer shall not exceed $5.0 million.                       
           Transfer of weapons activities funds (sec. 3130)                        

       The Senate bill contained a provision (sec. 3130) that would provide
   the manager of a Department of Energy/National Nuclear Security         
   Administration (DOE/NNSA) field office with limited authority to        
   transfer up to $5.0 million in fiscal year 2002 weapons activities funds
   from one program or project to another, outside of the normal           
   reprogramming process. The DOE/NNSA manager could use this authority up 
   to three times per year.                                                
       The House amendment contained a similar provision (sec. 3130) that  
   would provide authority to make one transfer per year and provide the   
   authority to the contractor operator of the DOE/NNSA plant or           
   laboratory.                                                             
       The Senate recedes with an amendment that would provide the         
   authority to the DOE/NNSA manager to make one transfer per year.        
              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   

                      Consolidation of Nuclear Cities Initiative program with      
           Initiatives for Proliferation Prevention program (sec. 3131)            

       The House amendment contained a provision (sec. 3133) that would    
   consolidate the Nuclear Cities Initiative (NCI) program and the         
   Initiatives for Proliferation Prevention (IPP) program under a common   
   management structure by July 1, 2002.                                   
       The Senate bill contained no similar provision, but included        
   language in Senate Report No. 107 62, accompanying S. 1416, that        
   directed the Administrator of the National Nuclear Security             
   Administration to consolidate the IPP program and the NCI program under 
   a single management structure.                                          
    The Senate recedes with an amendment that would delete the date.       

       The conferees agree to include a provision that would direct the    
   Administrator of the National Nuclear Security Administration to        
   consolidate the management of the IPP and the NCI programs under a      
   single management division. The conferees believe, however, that these  
   two programs should remain separate, have different funding lines within
   the division, retain their individual programmatic requirements as      
   established by statute and retain separate program managers. The two    
   managers should report to a single manager. The conferees note that the 
   Administrator has already begun to implement this direction.            
       In order to maintain the two program identities, the conferees      
   direct the Deputy Administrator for Defense Nuclear Nonproliferation to 
   submit a plan to the congressional defense committees 30 days prior to  
   obligating fiscal year 2002 funds, for each program laying out how each 
   program intends to utilize fiscal year 2002 funds. Further, the         
   conferees direct the Deputy Administrator to submit to the congressional
   defense committees a program plan for the IPP and the NCI programs that 
   describes how: (1) the programs will be managed under common senior     
   management; (2) they will share administrative support; (3) management  
   improvements will be made for each program; and (4) greater coordination
   will be established between the programs and with the relevant          
   interagency working groups. This report is due to the congressional     
   defense committees no later than four months after enactment of the     
   National Defense Authorization Act for Fiscal Year 2002.                
           Nuclear Cities Initiative (sec. 3132)                                   

       The Senate bill contained a provision (sec. 3133) that would        
   prohibit the use of funds authorized to be appropriated after fiscal    
   year 2001 for the Nuclear Cities Initiative (NCI) from being obligated  
   or expended to expand the NCI program beyond its current scope until    
   thirty days after the Administrator of the National Nuclear Security    
   Administration (NNSA) submits to Congress an agreement on access signed 
   by the United States and Russia. The provision also requires an annual  
   report on the NCI program's financial and programmatic activities.      
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Limitation on availability of funds for weapons activities   
           for facilities and infrastructure (sec. 3133)                           
       The Senate bill contained a provision (sec. 3131) that would direct 
   the Administrator of the National Nuclear Security Administration (NNSA)
   to establish criteria for the facilities and infrastructure projects.   
   The provision would prohibit the Administrator from obligating or       
   expending more than fifty percent of the facilities and infrastructure  
   account funds until he has submitted to the congressional defense       
   committees the criteria and a list of the projects that will be funded  
   based on the criteria.                                                  
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

       The conferees support this new effort to address a backlog of       
   deferred maintenance at NNSA sites, but directs the Administrator to    
   include projects in the fund based on the objective criteria            
   established.                                                            
                      Limitation on availability of funds for other defense        
           activities for national security programs administrative support (sec.  
           3134)                                                                   
       The Senate bill contained a provision (sec. 3132) that would prevent
   the Secretary of Energy from using more than $5.0 million of the funds  
   authorized to be appropriated for national security programs            
   administrative support pursuant to section 3103(a)(8) of this Act until 
   such time as the Secretary submits the future years nuclear security    
   program required by section 3253 of the National Nuclear Security Act   
   (Title XXXII of Public Law 106 65) and until the Secretary submits a    
   justification document for the national security programs administrative
   support activities describing the activities to be carried out with the 
   funds provided.                                                         
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would add an additional    
   condition to be met by the Secretary before obligating more than $5.0   
   million of the funds authorized to be appropriated for this activity.   
   The conferees note that the report requested of the Secretary on the    
   feasibility of using an energy savings performance contract mechanism to
   offset or possibly cover the cost of a new office building for the      
   Albuquerque operations office of the Department of Energy (DOE) has not 
   been submitted. This report was requested in Senate Report 106 50, the  
   report of the Committee on Armed Services of the Senate to accompany S. 
   1059, the National Defense Authorization Act for Fiscal Year 2000. The  
   amendment would direct the Secretary to submit this report as the third 
   prerequisite to spending more than $5.0 million of the funds authorized.
                      Termination date of Office of River Protection, Richland,    
           Washington (sec. 3135)                                                  
       The House amendment contained a provision (sec. 3131) that would    
   extend the statutory termination date of the Office of River Protection 
   from September 30, 2004 to September 30, 2010 or upon determination that
   continuation of the Office is no longer necessary to carry out the      
   Department Of Energy responsibilities under the Hanford Federal Facility
   Compliance Agreement, whichever is later.                               
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Support for public education in the vicinity of Los Alamos   
           National Laboratory, New Mexico (sec. 3136)                             
       The Senate bill contained a provision (sec. 3157) that would extend 
   the period of time in which the Department of Energy (DOE) may make     
   contributions to the Los Alamos Education Foundation and authorizes $6.9
   million, the amount contained in the budget request, to be paid to the  
   Foundation in fiscal year 2002. In addition, the provision would        
   authorize $8.0 million for the fiscal year 2002 payment to be made from 
   funds available to the DOE to offset cost of living expenses for school 
   teachers at the Los Alamos Public Schools. The provision would also     
   allow the DOE to extend the current contract with the Los Alamos Public 
   Schools, pursuant to which these funds are paid, through fiscal year    
   2004. The provision would also require the Secretary of Energy to submit
   a report evaluating and making recommendations for future payments to   
   the Foundation and the schools.                                         
       The House amendment contained a similar provision (sec. 3135) that  
   would authorize the Secretary of Energy to pay $5.0 million to the      
   Foundation and $8.0 million to the Los Alamos Public Schools. The       
   provision would allow the DOE to extend the current contract with the   
   schools through fiscal year 2003. The provision would also require a    
   report.                                                                 
       The Senate recedes with an amendment that would authorize a payment 
   of $6.9 million to the Foundation for fiscal year 2002 and that would   
   direct the Secretary to submit the required report by March 1, 2002.    
                      Reports on achievement of milestones for National Ignition   
           Facility (sec. 3137)                                                    
       The Senate bill contained a provision (sec. 3156) that would direct 
   the Administrator of the National Nuclear Security Administration to    
   notify the congressional defense committees when the National Ignition  
   Facility (NIF) achieves each level one and level two milestone.         
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would terminate the        
   notification requirement at the end of fiscal year 2004.                
       The conferees have designated the end date of the reporting         
   obligation to coincide with the date on which the NIF should achieve    
   first light of the laser.                                               
             SUBTITLE D--MATTERS RELATING TO MANAGEMENT OF THE NATIONAL NUCLEAR   
                             SECURITY ADMINISTRATION                              
                      Establishment of Principal Deputy Administrator of National  
           Nuclear Security Administration (sec. 3141)                             
       The Senate bill contained a provision (sec. 3141) that would        
   establish a Principle Deputy Administrator for nuclear security at the  
   National Nuclear Security Administration (NNSA). The new position would 
   be appointed by the President with the advice and consent of the Senate.
       The House amendment contained a similar provision (sec. 3132(a))    
   that would establish the position and spell out qualifications for the  
   individual to be appointed to that position.                            
       The House recedes with an amendment that would require that the     
   person appointed for the position has extensive background in           
   organizational management and is well-qualified to manage the nuclear   
   weapons programs, nonproliferation, and material disposition programs of
   the NNSA.                                                               
                      Elimination of requirement that national security            
           laboratories and nuclear weapons production facilities report to Deputy 
           Administrator for Defense Programs (sec. 3142)                          
       The Senate bill contained a provision (sec. 3142) that would amend  
   section 3214 of the National Nuclear Security Administration Act by     
   striking subsection (c), which directs the contractor managers and      
   directors of the National Nuclear Security Administration weapons       
   production plants and national laboratories to report to the Deputy     
   Administrator for Defense Programs.                                     
    The House amendment contained an identical provision (sec. 3132(b)).   

    The conference agreement includes this provision.                      

                      Repeal of duplicative provision relating to dual office      
           holding by personnel of National Nuclear Security Administration (sec.  
           3143)                                                                   
       The House amendment contained a provision (sec. 3132(c)) that would 
   repeal a duplicative statutory prohibition on the ability of            
   non-National Nuclear Security Administration (NNSA) employees of the    
   Department of Energy to serve concurrently in the NNSA.                 
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Report on adequacy of federal pay and hiring authorities to  
           meet personnel requirements of National Nuclear Security Administration 
           (sec. 3144)                                                             
       The Senate bill contained a provision (sec. 3144) that would amend  
   section 3241 of the National Nuclear Security Administration Act to     
   allow the National Nuclear Security Administration (NNSA) to expand the 
   number of scientific and technical positions from the current 300       
   positions to 500 positions.                                             
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would require the          
   Administrator of the NNSA to prepare a report on what hiring and pay    
   authorities are available to the NNSA, what authorities are being used, 
   and what additional authorities are required.                           
       The conferees believe that the Administrator should work with the   
   Office of Personnel Management to determine the appropriate status of   
   all employees in the NNSA. The conferees are aware that the             
   Administrator would like to convert all federal employees of the NNSA to
   an excepted service type status. The report required should discuss the 
   Administrator's plans and options for appropriate pay and hiring        
   authorities at the NNSA.                                                
                                  SUBTITLE E--OTHER MATTERS                       

                      Improvements to energy employees occupational illness        
           compensation program (sec. 3151)                                        
       The Senate bill contained a provision (sec. 3151) that would amend  
   the Energy Employees Occupational Illness Compensation Program Act of   
   2000 (EEOICPA) (title XXXVI of the Floyd D. Spence National Defense     
   Authorization Act for Fiscal Year 2001). These amendments were designed 
   to create greater parity between certain provisions in the EEOICPA and  
   similar provisions in the Radiation Employees Compensation Act.         
    The House amendment contained no similar provision.                    

    The House recedes with an amendment.                                   

       The conferees have agreed to include language that would amend the  
   EEOICPA in several areas, including: revising the threshold standard for
   determining if a covered employee has contracted silicosis; clarifying  
   attorney's fees provisions; clarifying who qualifies as survivors and   
   their entitlement to lump-sum benefits not paid to the covered employee;
   adding a technical amendment dealing with covered Leukemias; clarifying 
   the effect of the EEOICPA on tort actions filed both before and after   
   the EEOICPA date of enactment, and subsequent to the date of enactment  
   of this Act; and directing the director of the National Institute for   
   Occupational Safety and Health to conduct a new study on potential      
   health effects of any residual contamination at certain facilities.     
       The provision clarifies that Leukemia, other than chronic           
   Lymphocytic Leukemia, is covered if the initial occupational exposure   
   occurred before the age of twenty-one and if the onset of the Leukemia  
   occurred more than two years after such exposure. This amendment makes  
   it clear that occupational exposure received prior to age twenty-one    
   falls within the purview of the EEOICPA.                                
       The provision amends section 3626(b) of the EEOICPA to include      
   employees of an atomic energy weapons employer facility for             
   consideration as a member of the special exposure cohort.               
       The provision amends section 3627(e)(2)(A) of the EEOICPA to change 
   the threshold criteria for determining if a covered employee has        
   silicosis to a 1/0 reading from a 1/1 reading. This change brings the   
   EEOICPA in line with the Radiation Exposure Compensation Act (42 U.S.C. 
   2210 note).                                                             
       The provision amends sections 3628(e) and 3630(e) of the EEOICPA to 
   clarify that any compensation payments not made to covered employees    
   prior to their death shall be paid to survivors living at the time      
   payment is to be made and to define who qualifies as survivors for      
   purposes of receiving such payments. The provision ensures that certain 
   surviving minor children will receive the benefit owed to the deceased  
   covered employee. The provision would also repeal paragraph 18 of       
   section 3621 of the EEOICPA, defining survivors.                        
       The provision amends section 3645 of the EEOICPA to clarify the     
   election of remedies under certain circumstances. The amendments were   
   included to address the situation where a tort case for compensation    
   filed prior to October 30, 2000 had been dismissed, but where the       
   dismissal was not a voluntary dismissal sought by the plaintiff. Under  
   such a circumstance, the plaintiff would still be eligible to seek      
   compensation under EEOICPA if the non-voluntary dismissal occurs prior  
   to December 31, 2003. The provision would retain, however, the          
   prohibition that if the tort case has not been involuntarily dismissed  
   prior to December 31, 2003, the plaintiff would not be eligible to seek 
   compensation under the EEOICPA unless the plaintiff voluntarily         
   dismissed the case. The conferees were primarily concerned that a       
   plaintiff in a previously filed case that had been involuntarily        
   dismissed prior to December 31, 2003 would not be eligible to seek      
   compensation under the EEOICPA. Under this provision, this individual   
   would be eligible to file a claim for compensation. The amendment would,
   however, preclude any individual who had filed a tort case between      
   October 30, 2000 and the date of the enactment of this Act, from being  
   eligible to receive compensation or benefits under the EEOICPA unless   
   the case is dismissed by the individual before the last permissible     
   date. The permissible date is the later of April 30, 2003 or 30 months  
   after discovering that the individual has a covered illness that results
   from the individual's covered occupational exposure.                    
       In addition, the provision would provide that if the individual     
   files a tort case after the date of enactment of this Act, the          
   individual is not eligible for compensation if there is a final court   
   decision adverse to the plaintiff rendered prior to the last permissible
   date for a voluntary dismissal. The last permissible date for a         
   voluntary dismissal is the later of April 30, 2003 or 30 months after   
   discovering that the individual has a covered illness that results from 
   the individual's covered occupational exposure.                         
       The provision would amend section 3648 of the EEOICPA to clarify    
   that the two-percent limitation on attorney fees applies to initial     
   claims for lump-sum compensation and that the ten- percent limitation on
   attorney fees applies to assistance provided with respect to objections 
   to a recommended decision denying payment of a lump-sum compensation.   
   The provision would also clarify that the limitations on attorney fees  
   does not apply to attorney fees for services rendered for matters not   
   pertaining to or in connection with lump-sum claims.                    
       Finally, the provision would require the National Institute for     
   Occupational Safety and Health to conduct a study in coordination with  
   the Department of Energy (DOE) and the Department of Labor to determine 
   whether there is any significant residual contamination at beryllium    
   vendors or atomic weapons employer facilities that could have caused or 
   substantially contributed to the cancer or beryllium illness of a       
   covered employee. An interim report is due 180 days after enactment of  
   this Act, and the final report is due one year after the date of        
   enactment.                                                              
       The conferees are aware of draft regulations promulgated by the DOE 
   and intended to implement subtitle D of the EEOICPA. The conferees are  
   concerned that the DOE appears to have misinterpreted the intent of     
   Congress in this area. Subtitle D was intended to provide an alternative
   path to state workers compensation systems that would rely on the       
   independent judgment of a physicians panel as to whether a worker's     
   illness was related to exposure to a toxic substance while working at a 
   DOE facility. In cases where this independent panel finds that the      
   illness was related to occupational exposure, the conferees expect that 
   the DOE will direct its contractors not to contest the worker's claim in
   the state proceedings. Subtitle D was intended to overcome existing     
   procedural barriers within state workers compensation systems that      
   prevent workers with occupational illnesses from receiving assistance   
   from these systems. In implementing subtitle D, the DOE should not      
   re-impose the same or similar procedural barriers that subtitle D was   
   designed to remove or overcome.                                         
           Department of Energy counterintelligence polygraph program (sec. 3152)  

       The Senate bill contained a provision (sec. 3152) that would direct 
   the Secretary of Energy to develop a new interim polygraph program, and 
   then establish a new permanent polygraph program. The new permanent     
   program would be established by regulations issued pursuant to the      
   Administrative Procedures Act, after the DOE completes the ongoing      
   Polygraph Review. The provision would also repeal section 3154 of the   
   Department of Energy Facilities Safeguards, Security and                
   Counterintelligence Enhancement Act of 1999 (Title XXXI of the National 
   Defense Authorization Act for Fiscal Year 2000).                        
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would direct the Secretary 
   of Energy to establish a new permanent polygraph program by regulations 
   issued pursuant to the Administrative Procedures Act. The provision     
   would repeal section 3154 only after the DOE has implemented the final  
   rule and the Secretary submits a certification to the congressional     
   defense committees to that effect.                                      
                      One-year extension of authority of Department of Energy to   
           pay voluntary separation incentive payments (sec. 3153)                 
       The Senate bill contained a provision (sec. 3153) that would amend  
   section 3161(a) of the National Defense Authorization Act for Fiscal    
   Year 2000 to provide a one-year extension of the Department of Energy   
   (DOE) authority to make voluntary separation incentive payments through 
   January 1, 2004.                                                        
    The House amendment contained no similar provision.                    

       The House recedes with an amendment stating that the provision may  
   be superceded by an applicable government-wide statute providing        
   voluntary separation incentive payments.                                
       The conferees note that the administration is seeking               
   government-wide authority setting uniform standards to be applied by    
   federal agencies in making voluntary separation incentive payments. In  
   the event that Congress enacts such a law, the conferees anticipate that
   it would supercede this provision and conform the DOE and Department of 
   Defense authority to that provided to all federal agencies.             
                      Annual assessment and report on vulnerability of Department  
           of Energy facilities to terrorist attack (sec. 3154)                    
       The Senate bill contained a provision (sec. 3159) that would direct 
   the Secretary of Energy to conduct an annual assessment on the          
   vulnerabilities of Department of Energy (DOE) facilities to terrorist   
   attack. The report would be due on January 31 of each year. The first   
   report would be due on January 31, 2003.                                
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Disposition of surplus defense plutonium at Savannah River   
           Site, Aiken, South Carolina (sec. 3155)                                 
       The House amendment contained a provision (sec. 3134) that would    
   require the Secretary of Energy to consult with the Governor of South   
   Carolina on any decisions or plans regarding the disposition of surplus 
   defense plutonium at the Savannah River Site and to submit a plan to    
   Congress by February 1, 2002, for the disposal of surplus defense       
   plutonium currently located at the site, as well as for defense         
   plutonium that may be shipped to the site in the future. If the plan is 
   not submitted by February 1, 2002, then no shipments of plutonium could 
   be made to the Savannah River Site.                                     
    The Senate bill contained no similar provision.                        

       The Senate recedes with an amendment that would require the         
   Secretary to provide a notice to the congressional defense committees 30
   days before the Secretary shipped any defense plutonium or defense      
   plutonium materials to the Savannah River Site. The conferees note that 
   a similar report is required by the conference report for the Energy and
   Water Development Appropriations Act for Fiscal Year 2002 (Public Law   
   107 66).                                                                
       The provision would also require the Secretary to prepare a         
   comprehensive plan for the long-term disposition of defense plutonium   
   and defense plutonium materials. If the Secretary should decide not to  
   proceed with the immobilization facility or the mixed oxide facility,   
   then the Secretary shall include in the plan required to be submitted on
   February 1, 2002 a disposition path for the material.                   
                      Modification of date of report of Panel to Assess the        
           Reliability, Safety, and Security of the United States Nuclear Stockpile
           (sec. 3156)                                                             
       The Senate bill contained a provision (sec. 3155) that would amend  
   section 3159(d) of the Strom Thurmond National Defense Authorization Act
   for Fiscal Year 1999 by extending the due date for the third report     
   required by that section from October 1, 2001 to February 1, 2002.      
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      SUBTITLE F--ROCKY FLATS NATIONAL WILDLIFE REFUGE            

           Rocky Flats National Wildlife Refuge (sec. 3171 3182)                   

       The Senate bill contained a series of provisions (sec. 3171 3181)   
   that would transfer the Department of Energy Rocky Flats site to the    
   Department of Interior (DOI) to establish the Rocky Flats National      
   Wildlife Refuge. The transfer would occur after the DOE has completed   
   the environmental cleanup of the site.                                  
    The House amendment contained no similar provision.                    

       The House recedes with amendments that would clarify the            
   relationship between the Department of Energy (DOE) and the DOI and     
   remove the requirement for the DOI to conduct any interim management    
   activities prior to the transfer of jurisdiction over Rocky Flats.      
       This designation will ensure that appropriate land uses are         
   maintained and that an environmentally sound end state will result. As  
   cleanup and closure continues, the committee urges the DOE to consult   
   with the U.S. Fish and Wildlife Service to ensure a smooth transition   
   from the DOE to the DOI.                                                
       Through a Memorandum of Understanding (MOU), the DOE and the DOI    
   should address any remaining issues related to the transition, determine
   how to resolve those issues, and develop the best path forward for      
   transferring the land. The MOU should also address longer term          
   relationships between the DOE and the DOI and address such things as    
   indemnification for any costs that may result after the transfer.       
       The provisions would also require that any conflicts between the two
   agencies over cleanup activities on the land retained by the DOE be     
   resolved so that cleanup activities take priority.                      
       The Act provides that prior to the transfer, the Environmental      
   Protection Agency must certify that the site is cleaned up and closed as
   a DOE facility pursuant to existing laws, regulations, and agreements.  
   The conferees note that the State of Colorado has recently passed a new 
   statute concerning the enforceability of environmental real covenants.  
   Several federal agencies have raised questions about the applicability  
   of this provision to federal lands. The conferees do not attempt to     
   resolve any issues associated with the applicability of this new        
   Colorado statute and do not intend these provisions to be interpreted as
   either supporting or refuting the applicability of this statute to      
   federal lands, including the wildlife refuge that would be created in   
   this Act.                                                               
       While it is expected that most structures will be demolished when   
   the property is transferred from the DOE to the Fish and Wildlife       
   Service, any cleanup facilities or structures related to long-term      
   treatment and control of contamination that the DOE must maintain and   
   remain liable for will be excluded from transfer. In addition, the      
   provision also allows the DOI to designate any buildings that it might  
   need for managing the refuge.                                           
       The Act also anticipates that wastes and materials will be removed  
   for off-site disposal and that there should not be any need for a       
   long-term storage facility at the site.                                 
       The provision clarifies that these provisions shall not be          
   interpreted or construed to reduce the required cleanup levels, and that
   these levels should reflect a cleanup level that is fully protective of 
   human health and the environment for the long-term.                     
       The provisions also require that the refuge shall be managed in     
   accordance with the National Wildlife Refuge System Administration Act. 
   Accordingly, the Fish and Wildlife Service must consult with local      
   communities and ensure public participation during development of the   
   Rocky Flats Wildlife Refuge plans. This Act also recognizes and         
   preserves the existence of other property rights on the Rocky Flats     
   site, such as mineral rights, water rights, and utility rights-of-way   
   for all relevant parties. The conferees recognize that the DOE's top    
   priority at Rocky Flats is safe cleanup and closure, and strongly       
   support continuation of efforts to achieve the 2006 closure date. The   
   conferees further recognize that the accelerated cleanup at Rocky Flats 
   and creation of the Wildlife Refuge has been achieved through strong    
   support and cooperation from the surrounding communities, the State of  
   Colorado, and the Colorado Congressional delegation. Creation of the    
   Rocky Flats National Wildlife Refuge provides an important path forward 
   for Rocky Flats and a model for other DOE cleanup sites across the      
   nation.                                                                 
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Additional objective for Department of Energy defense nuclear
           facility workforce restructuring plan                                   
       The Senate bill contained a provision (sec. 3154) that would amend  
   section 3161(c) of the National Defense Authorization Act for Fiscal    
   Year 1993 by adding a new requirement to the workforce restructuring    
   plan. The new requirement would direct the Secretary of Energy to       
   provide assistance to promote the diversification of the economies of   
   the communities in the vicinity of the Department of Energy (DOE).      
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees believe that the DOE, in its work with the Department 
   of Commerce and the Department of Labor in preparing and carrying out   
   workforce restructuring plans, already looks at economic diversification
   as an element of the plan. The conferees direct the Secretary to        
   continue to promote diversification of the economies in the vicinity of 
   any DOE defense nuclear facility that may be affected by a workforce    
   restructuring and to include in the plan a description of the steps     
   taken in support of this goal.                                          
                      Clarification of status within the Department of Energy of   
           Administration and contractor personnel of the National Nuclear Security
           Administration                                                          
       The Senate bill contained a provision (sec. 3143) that would amend  
   section 3219 of the National Nuclear Security Administration Act (Title 
   XXXII of the National Defense Act for Fiscal Year 2000) to clarify that 
   when work is performed at National Nuclear Security Administration      
   (NNSA) facilities and sponsored by offices outside of the NNSA, the     
   sponsoring office can supervise the work being performed and that NNSA  
   employees can serve on DOE task forces.                                 
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees do not include this provision because they do not     
   believe that the existing law prohibits or limits either non-NNSA       
   agencies and offices from providing authority direction and control over
   programs that they sponsor at NNSA facilities or NNSA employees from    
   serving as full members of any DOE task force.                          
           Construction of Department of Energy operations office complex          

       The Senate bill contained a provision (sec. 3134) that would        
   authorize the Secretary of Energy to provide for the design and         
   construction of a new operations office complex for the Department of   
   Energy (DOE) in accordance with the feasibility study regarding such    
   operations office complex conducted under the National Defense          
   Authorization Act for Fiscal Year 2000. The provision would provide     
   authority to the Secretary to use one or more energy savings performance
   (ESP) contracts, entered into under Title VII of the National Energy    
   Policy Conservation Act, 42 U.S.C. 8287 et seq., to design and construct
   the complex. The provision would require that the construction and      
   operation costs of the complex be paid from the energy savings and      
   ancillary operations and maintenance savings that result from the       
   replacement of a current DOE operations office complex.                 
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

           Improvements to Corral Hollow Road, Livermore, California               

       The Senate bill contained a provision (sec. 3158) that would        
   authorize up to $0.3 million for safety improvements to Corral Hollow   
   Road, the amount of the budget request.                                 
    The House amendment contained no similar provision.                    

    The Senate recedes.                                                    

       The conferees agree that funds for road improvements that are for   
   roads not on Department of Energy (DOE) sites should be specifically    
   requested in the DOE budget request. The conferees also agree that      
   specific authorization is not required for such road projects unless the
   total project cost for the project exceeds $5.0 million.                
           Increased amount for nonproliferation and verification                  

       The House amendment contained a provision (sec. 3106) that would    
   increase the amounts authorized for defense nuclear nonproliferation by 
   $10.0 million for operation and maintenance for nonproliferation and    
   verification research and development.                                  
    The Senate bill contained no similar provision.                        

    The House recedes.                                                     

       The conferees have included funds for the defense nuclear           
   nonproliferation programs in section 3101 of this conference report.    
                    TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD          

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Authorization (sec. 3201)                                               

       The Senate bill contained a provision (sec. 3201) that would        
   authorize $18.5 million for the Defense Nuclear Facilities Safety Board 
   (DNFSB).                                                                
    The House amendment contained an identical provision (sec. 3201).      

    The conference agreement includes this provision.                      

                          TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Definitions (sec. 3301)                                                 

       The House amendment contained a provision (sec. 3301) that would    
   provide the definitions used in the title.                              
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

           Authorized uses of stockpile funds (sec. 3302)                          

       The House amendment contained a provision (sec. 3302) that would    
   authorize $65.2 million from the National Defense Stockpile Transaction 
   Fund for the operation and maintenance of the National Defense Stockpile
   for fiscal year 2002. The provision would also permit the use of        
   additional funds for extraordinary or emergency conditions 45 days after
   a notification to the Congress.                                         
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Authority to dispose of certain materials in National Defense
           Stockpile (sec. 3303)                                                   
       The House amendment contained a provision (sec. 3303) that would    
   authorize the disposal of specific materials in the National Defense    
   Stockpile that are no longer needed.                                    
    The Senate bill contained an identical provision (sec. 3301).          

    The conference agreement includes this provision.                      

                      Revision of limitations on required disposals of certain     
           materials in National Defense Stockpile (sec. 3304)                     
       The Senate bill contained a provision (sec. 3302) that would provide
   the Secretary of Defense with greater flexibility in the disposal of    
   materials from the National Defense Stockpile. The provision would allow
   the sale of materials over 10 years, based on market conditions, rather 
   than according to a specific timetable limiting quantities that could be
   disposed of in any given year.                                          
    The House amendment contained no similar provision.                    

    The House recedes.                                                     

                      Acceleration of required disposal of cobalt in National      
           Defense Stockpile (sec. 3305)                                           
       The House amendment contained a provision (sec. 3304) that would    
   accelerate by one year the disposal of cobalt from the National Defense 
   Stockpile that was authorized for sale in previous authorization acts.  
    The Senate bill contained a similar provision (sec. 3303).             

    The House recedes.                                                     

           Restriction on disposal of manganese ferro (sec. 3306)                  

       The Senate bill contained a provision (sec. 3304) that would        
   prohibit the sale of manganese ferro from the National Defense Stockpile
   during fiscal year 2002.                                                
    The House amendment contained no similar provision.                    

       The House recedes with an amendment that would authorize sales of   
   25,000 short tons of manganese ferro in fiscal year 2002 (of all        
   grades), 25,000 short tons of high-grade manganese ferro in fiscal year 
   2003, and 50,000 short tons of high-grade manganese ferro in fiscal     
   years 2004 and 2005.                                                    
                           TITLE XXXIV--NAVAL PETROLEUM RESERVES                  

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Authorization of appropriations (sec. 3401)                             

       The House amendment contained a provision (sec. 3401) that          
   authorized the appropriation of $17.4 million during fiscal year 2002   
   for activities relating to the naval petroleum reserves.                
    The Senate bill contained a similar provision (sec. 3401).             

    The Senate recedes.                                                    

                            TITLE XXXV--MARITIME ADMINISTRATION                   

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Authorization of appropriations for fiscal year 2002 (sec. 3501)        

       The budget request included $103.0 million for the Maritime         
   Administration.                                                         
       The House amendment contained a provision (sec. 3501) that would    
   authorize an increase of $100.0 million for the Maritime Administration.
   Of the funds authorized, $89.1 million would be for operations and      
   training programs, $100.0 million would be for the cost as defined in   
   section 402 of the Federal Credit Reform Act of 1990, of loan guarantees
   authorized by title XI of the Merchant Marine Act, 1936, as amended (46 
   App. U.S.C. 1271 et seq.), $4.0 million would be for administrative     
   expenses related to providing those loan guarantees, and $10.0 million  
   would be to dispose of obsolete vessels in the National Defense Reserve 
   Fleet.                                                                  
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Define ``war risks'' to vessels to include confiscation,     
           expropriation, nationalization, and deprivation of the vessels (sec.    
           3502)                                                                   
       The House amendment contained a provision (sec. 3502) that would    
   clarify and expand the authority of the Maritime Administration to issue
   war risk insurance coverage for losses from hostile acts including      
   confiscation, expropriation, nationalization, and deprivation.          
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    

                      Holding obligor's cash as collateral under title XI of       
           Merchant Marine Act, 1936 (sec. 3503)                                   
       The House amendment contained a provision (sec. 3503) that would    
   amend title XI of the Merchant Marine Act, 1936, as amended, by         
   establishing a new section that would allow the Maritime Administration 
   to hold and invest cash collateral derived from title XI proceeds in the
   U.S. Treasury.                                                          
    The Senate bill contained no similar provision.                        

    The Senate recedes.                                                    



      From the Committee on Armed Services, for consideration of the Senate
   Bill and the House amendment, and modifications committed to conference:
    Bob Stump,                                                              

    Duncan Hunter,                                                          

    James V. Hansen,                                                        

    Curt Weldon,                                                            

    Jim Saxton,                                                             

    John M. McHugh,                                                         

    Terry Everett,                                                          

    Roscoe G. Bartlett,                                                     

    Howard ``Buck'' McKeon,                                                 

    J.C. Watts,  Jr.,                                                       

    Mac  Thornberry,                                                        

    Saxby Chambliss,                                                        

    Ike Skelton,                                                            

    Solomon P. Ortiz,                                                       

    Lane Evans,                                                             

    Neil Abercrombie,                                                       

    Martin T. Meehan,                                                       

    Robert A. Underwood,                                                    

    Thomas Allen,                                                           

    Vic Snyder,                                                             

      From the Committee on Education and the Workforce, for consideration 
   of secs. 304, 305, 1123, 3151, and 3157 of the Senate bill, and secs.   
   341, 342, 509, and 584 of the House amendment, and modifications        
   committed to conference:                                                
    Michael N. Castle,                                                      

    Johnny Isakson,                                                         

    George Miller,                                                          

      From the Committee on Government Reform, for consideration of secs.  
   564, 622, 803, 813, 901, 1044, 1047, 1051, 1065, 1075, 1102, 1111 1113, 
   1124 1126, 2832, 3141, 3144, and 3153 of the Senate bill, and secs. 333,
   519, 588, 802, 803, 811 819, 1101, 1103 1108, 1110, and 3132 of the     
   House amendment, and modifications committed to conference:             
    Dan Burton,                                                             

    Dave Weldon,                                                            

    Henry A. Waxman,                                                        

      Provided that Mr. Tom Davis of Virginia is appointed in lieu of Mr.  
   Weldon of Florida for consideration of secs. 803 and 2832 of the Senate 
   bill, and secs. 333 and 803 of the House amendment, and modifications   
   committed to conference:                                                
    Tom Davis,                                                              

      Provided that Mr. Horn is appointed in lieu of Mr. Weldon of Florida 
   for consideration of secs. 811 819 of the House amendment, and          
   modifications committed to conference:                                  
    Stephen Horn,                                                           

      From the Committee on House Administration, for consideration of     
   secs. 572, 574 577, and 579 of the Senate bill, and sac. 552 of the     
   House amendment, and modifications committed to conference:             
    Bob Ney,                                                                

    John L. Mica,                                                           

      From the Committee on International Relations, for consideration of  
   secs. 331, 333, 1201 1205, and 1211 1218 of the Senate bill, and secs.  
   1011, 1201, 1202, 1205, and 1209, title XIII, and sec. 3133 of the House
   amendment, and modifications committed to conference:                   
    Henry Hyde,                                                             

    Ben Gilman,                                                             

    Tom Lantos,                                                             


      From the Committee on the Judiciary, for consideration of secs. 821, 
   1066, and 3151 of the Senate bill, and secs. 323 and 818 of the House   
   amendment, and modifications committed to conference:                   
    F. James Sensenbrenner,                                                 

    Lamar Smith,                                                            

      From the Committee on Resources, for consideration of secs. 601, 663,
   2823, and 3171 3181 of the Senate bill, and secs. 601, 1042, 2841, 2845,
   2861 2863, and 2865 and title XXIX of the House amendment, and          
   modifications committed to conference:                                  
    Jim Gibbons,                                                            

    George Radanovich,                                                      

      Provided that Mr. Udall of Colorado is appointed in lieu of Mr.      
   Rahall for consideration of secs. 3171 3181 of the Senate bill, and     
   modifications committed to conference:                                  
    Mark Udall,                                                             

      From the Committee on Science, for consideration of secs. 1071 and   
   1124 of the Senate bill, and modifications committed to conference:     
    Sherwood Boehlert,                                                      

    Nick Smith,                                                             

    Ralph M. Hall,                                                          

      Provided that Mr. Ehlers is appointed in lieu of Mr. Smith of        
   Michigan for consideration of sec. 1124 of the Senate bill, and         
   modifications committed to conference:                                  
    Vernon J. Ehlers,                                                       

      From the Committee on Small Business, for consideration of secs. 822 
   824 and 1068 of the Senate bill, and modifications committed to         
   conference:                                                             
    Donald A. Manzullo,                                                     

    Larry Combest,                                                          

      From the Committee on Transportation and Infrastructure, for         
   consideration of secs. 563, 601, and 1076 of the Senate bill, and secs. 
   543, 544, 601, 1049, and 1053 of the House amendment, and modifications 
   committed to conference:                                                
    Don Young,                                                              

    Frank A. LoBiondo,                                                      

    Corrine Brown,                                                          

      Provided that Mr. Pascrell is appointed in lieu of Ms. Brown of      
   Florida for consideration of sec. 1049 of the House amendment, and      
   modifications committed to conference:                                  
    Bill Pascrell,  Jr.,                                                    


      From the Committee on Veterans' Affairs, for consideration of secs.  
   538, 539, 573, 651, 717, and 1064 of the Senate bill, and sec. 641 of   
   the House amendment, and modifications committed to conference:         
    Christopher H. Smith,                                                   

           (except sec. 641 of House amendment and secs. 539 and 651 of      
     Senate bill),                                                           
    Mike Bilirakis,                                                         

        Managers on the Part of the House.                                      


    Carl Levin,                                                             

    Ted Kennedy,                                                            

    Joseph Lieberman,                                                       

    Max Cleland,                                                            

    Mary Landrieu,                                                          

    Jack Reed,                                                              

    Daniel K. Akaka,                                                        

    Bill Nelson,                                                            

    Ben Nelson,                                                             

    Jean Carnahan,                                                          

    Mark Dayton,                                                            

    Jeff Bingaman,                                                          

    John Warner,                                                            

    Strom Thurmond,                                                         

    Bob Smith,                                                              

    Jim Inhofe,                                                             

    Rick Santorum,                                                          

    Pat Roberts,                                                            

    Wayne Allard,                                                           

    Tim Hutchinson,                                                         

    Jeff Sessions,                                                          

    Susan Collins,                                                          

    Jim Bunning,                                                            

        Managers on the Part of the Senate.