To provide for the transfer of the Nebraska Avenue Naval Complex in the District of Columbia to facilitate the establishment of the headquarters for the Department of Homeland Security, to provide for the acquisition by the Department of the Navy of suitable replacement facilities.

Summary: Directs the Secretary of the Navy to transfer the parcel of Department of the Navy real property in the District of Columbia known as the Nebraska Avenue Complex to the administrative jurisdiction of the Administrator of General Services to accommodate the Department of Homeland Security (DHS). Authorizes the Secretary to retain jurisdiction over that portion of the Complex that, as of this Act's enactment date, is being used to provide Navy family housing. Directs the Secretary, within nine months, to: (1) complete the transfer of the Complex to the Administrator; and (2) relocate Navy activities at the Complex to other locations.

Makes the Secretary of DHS responsible for the payment of the costs to move furnishings and equipment related to the initial relocation of Navy activities from the Complex and costs incident to the initial occupancy by such activities of interim leased space. Authorizes appropriations to DHS for FY 2005 through 2007.

Expresses the sense of Congress that the Secretary of the Navy should receive, from Federal agencies other than the Department of Defense (DOD), funds authorized and appropriated for the purpose of covering reasonable costs incurred by the Secretary to permanently relocate Navy activities from the Complex. Directs the Secretary to submit to the Director of the Office of Management and Budget and Congress an initial and revised estimates of such costs; (2) use relocation funds received from sources outside DOD to relocate Navy activities from the Complex; and (3) notify Congress in writing when a decision is made to carry out a military construction project using such funds.

Directs the Secretary of the Navy, at the end of the five-year period beginning on the date on which the transfer of the Complex is to be completed, to submit to Congress a report specifying: (1) the total amount needed to cover both the initial and permanent costs of relocating Navy activities; (2) the total amount of the initial relocation costs paid by the Secretary of DHS; and (3) the total amount of appropriated funds received by the Secretary of the Navy from sources outside DOD to cover the permanent relocation costs. Directs: (1) the President to certify to Congress whether the amounts specified in the report are sufficient to cover both the initial and permanent relocation costs; and (2) the Administrator, if the President certifies that such amounts are insufficient, to restore the Complex to the Navy's jurisdiction, at the request of the Secretary, who then shall convey the Complex by competitive sale and deposit amounts received in a special Treasury account to be used for facility maintenance and repair or environmental restoration.

SECTION 1. TRANSFER OF NEBRASKA AVENUE NAVAL COMPLEX, DISTRICT OF 
              COLUMBIA.

    (a) Transfer Required.--Except as provided in subsection (b), the 
Secretary of the Navy shall transfer the parcel of Department of the 
Navy real property in the District of Columbia known as the Nebraska 
Avenue Complex to the jurisdiction, custody, and control of the 
Administrator of General Services for the purpose of permitting the 
Administrator to use the Complex to accommodate the Department of 
Homeland Security. The Complex shall be transferred in its existing 
condition.
    (b) Authority to Retain Military Family Housing.--At the option of 
the Secretary of the Navy, the Secretary may retain jurisdiction, 
custody, and control over that portion of the Complex that, as of the 
date of the enactment of this Act, is being used to provide Navy family 
housing.
    (c) Time for Transfer and Relocation of Navy Activities.--Not later 
than nine months after the date of the enactment of this Act, the 
Secretary of the Navy shall--
        (1) complete the transfer of the Complex to the Administrator 
    of General Services under subsection (a); and
        (2) relocate Department of the Navy activities at the Complex 
    to other locations.
    (d) Payment of Initial Relocation Costs.--
        (1) Payment responsibility.--Subject to the availability of 
    appropriations for this purpose, the Secretary of the Department of 
    Homeland Security shall be responsible for the payment of--
            (A) all reasonable costs, including costs to move 
        furnishings and equipment, related to the initial relocation of 
        Department of the Navy activities from the Nebraska Avenue 
        Complex; and
            (B) all reasonable costs incident to the initial occupancy 
        by such activities of interim leased space, including rental 
        costs for the first year.
        (2) Authorization of appropriations.--For purposes of carrying 
    out paragraph (1), there is authorized to be appropriated to the 
    Department of Homeland Security such sums as may be necessary for 
    fiscal years 2005 through 2007.
    (e) Payment of Long-Term Relocation Costs.--
        (1) Sense of congress regarding payment.--It is the sense of 
    the Congress that the Secretary of the Navy should receive, from 
    Federal agencies other than the Department of Defense, funds 
    authorized and appropriated for the purpose of covering all 
    reasonable costs, not paid under subsection (d), that are incurred 
    or will be incurred by the Secretary to permanently relocate 
    Department of the Navy activities from the Complex under subsection 
    (c)(2).
        (2) Submission of cost estimates.--As soon as practicable after 
    the date of the enactment of this Act, the Secretary of the Navy 
    shall submit to the Director of the Office of Management and Budget 
    and the Congress an initial estimate of the amounts that will be 
    necessary to cover the costs to permanently relocate Department of 
    the Navy activities from the portion of the Complex to be 
    transferred under subsection (a). The Secretary shall include in 
    the estimate anticipated land acquisition and construction costs. 
    The Secretary shall revise the estimate as necessary whenever 
    information regarding the actual costs for the relocation is 
    obtained.
    (f) Treatment of Funds.--(1) Funds received by the Secretary of the 
Navy, from sources outside the Department of Defense, to relocate 
Department of the Navy activities from the Complex shall be used to pay 
the costs incurred by the Secretary to permanently relocate Department 
of the Navy activities from the Complex. A military construction 
project carried out using such funds is deemed to be an authorized 
military construction project for purposes of section 2802 of title 10, 
United States Code. Section 2822 of such title shall continue to apply 
to any military family housing unit proposed to be constructed or 
acquired using such funds.
    (2) When a decision is made to carry out a military construction 
project using such funds, the Secretary of the Navy shall notify 
Congress in writing of that decision, including the justification for 
the project and the current estimate of the cost of the project. The 
project may then be carried out only after the end of the 21-day period 
beginning on the date the notification is received by Congress or, if 
earlier, the end of the 14-day period beginning on the date on which a 
copy of the notification is provided in an electronic medium pursuant 
to section 480 of title 10, United States Code.
    (g) Effect of Failure to Receive Sufficient Funds for Relocation 
Costs.--
        (1) Congressional notification.--At the end of the five-year 
    period beginning on the date on which the transfer of the Complex 
    is to be completed under subsection (c)(1), the Secretary of the 
    Navy shall submit to Congress a report--
            (A) specifying the total amount needed to cover both the 
        initial and permanent costs of relocating Department of the 
        Navy activities from the portion of the Complex transferred 
        under subsection (a);
            (B) specifying the total amount of the initial relocation 
        costs paid by the Secretary of the Department of Homeland 
        Security under subsection (d); and
            (C) specifying the total amount of appropriated funds 
        received by the Secretary of the Navy, from sources outside the 
        Department of Defense, to cover the permanent relocation costs.
        (2) Role of omb.--The Secretary of the Navy shall obtain the 
    assistance and concurrence of the Director of the Office of 
    Management and Budget in determining the total amount needed to 
    cover both the initial and permanent costs of relocating Department 
    of the Navy activities from the portion of the Complex transferred 
    under subsection (a), as required by paragraph (1)(A).
        (3) Certification regarding relocation costs.--Not later than 
    30 days after the date on which the report under paragraph (1) is 
    required to be submitted to Congress, the President shall certify 
    to Congress whether the amounts specified in the report pursuant to 
    subparagraphs (B) and (C) of such paragraph are sufficient to cover 
    both the initial and permanent costs of relocating Department of 
    the Navy activities from the portion of the Complex transferred 
    under subsection (a). The President shall make this certification 
    only after consultation with the Chairmen and ranking minority 
    members of the Committee on Armed Services and the Committee on 
    Appropriations of the House of Representatives and the Chairmen and 
    ranking minority members of the Committee on Armed Services and the 
    Committee on Appropriations of the Senate.
        (4) Restoration of complex to navy.--If the President certifies 
    under paragraph (3) that amounts referred to in subparagraphs (B) 
    and (C) of paragraph (1) are insufficient to cover Navy relocation 
    costs, the Administrator of General Services, at the request of the 
    Secretary of the Navy, shall restore the Complex to the 
    jurisdiction, custody, and control of the Secretary of the Navy.
        (5) Navy sale of complex.--If the Complex is restored to the 
    Secretary of the Navy, the Secretary shall convey the Complex by 
    competitive sale. Amounts received by the United States as 
    consideration from any sale under this paragraph shall be deposited 
    in the special account in the Treasury established pursuant to 
    paragraph (5) of section 572(b) of title 40, United States Code, 
    and shall be available for use as provided in subparagraph (B)(i) 
    of such paragraph.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.