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[House Report 107-246]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-246

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

 
 MAKING APPROPRIATIONS FOR MILITARY CONSTRUCTION, FAMILY HOUSING, AND 
  BASE REALIGNMENT AND CLOSURE FOR THE DEPARTMENT OF DEFENSE FOR THE 
     FISCAL YEAR ENDING SEPTEMBER 30, 2002, AND FOR OTHER PURPOSES

                                _______
                                

                OCTOBER 16, 2001.--Ordered to be printed

                                _______
                                

 Mr. Hobson, from the Committee of Conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2904]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2904) ``making appropriations for military construction, family 
housing, and base realignment and closure for the Department of 
Defense for the fiscal year ending September 30, 2002, and for 
other purposes,'' having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate, and agree to the same with an 
amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:
That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated for military 
construction, family housing, and base realignment and closure 
functions administered by the Department of Defense, for the 
fiscal year ending September 30, 2002, and for other purposes, 
namely:

                      Military Construction, Army

                         (including rescission)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, military installations, 
facilities, and real property for the Army as currently 
authorized by law, including personnel in the Army Corps of 
Engineers and other personal services necessary for the 
purposes of this appropriation, and for construction and 
operation of facilities in support of the functions of the 
Commander in Chief, $1,778,256,000, to remain available until 
September 30, 2006: Provided, That of this amount, not to 
exceed $163,198,000 shall be available for study, planning, 
design, architect and engineer services, and host nation 
support, as authorized by law, unless the Secretary of Defense 
determines that additional obligations are necessary for such 
purposes and notifies the Committees on Appropriations of both 
Houses of Congress of his determination and the reasons 
therefor: Provided further, That of the funds appropriated for 
``Military Construction, Army'' under Public Law 106-52, 
$36,400,000 are rescinded.

                      Military Construction, Navy

                         (including rescission)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, naval installations, 
facilities, and real property for the Navy as currently 
authorized by law, including personnel in the Naval Facilities 
Engineering Command and other personal services necessary for 
the purposes of this appropriation, $1,144,221,000, to remain 
available until September 30, 2006: Provided, That of this 
amount, not to exceed $34,152,000 shall be available for study, 
planning, design, architect and engineer services, as 
authorized by law, unless the Secretary of Defense determines 
that additional obligations are necessary for such purposes and 
notifies the Committees on Appropriations of both Houses of 
Congress of his determination and the reasons therefor: 
Provided further, That of the funds appropriated for ``Military 
Construction, Navy'' under Public Law 106-246, $19,588,000 are 
rescinded.

                    Military Construction, Air Force

                         (including rescission)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, military installations, 
facilities, and real property for the Air Force as currently 
authorized by law, $1,194,880,000, to remain available until 
September 30, 2006: Provided, That of this amount, not to 
exceed $83,210,000 shall be available for study, planning, 
design, architect and engineer services, as authorized by law, 
unless the Secretary of Defense determines that additional 
obligations are necessary for such purposes and notifies the 
Committees on Appropriations of both Houses of Congress of his 
determination and the reasons therefor: Provided further, That 
of the funds appropriated for ``Military Construction, Air 
Force'' under previous Military Construction Appropriations 
Acts, $4,000,000 are rescinded.

                  Military Construction, Defense-wide

             (including transfer and rescissions of funds)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, installations, 
facilities, and real property for activities and agencies of 
the Department of Defense (other than the military 
departments), as currently authorized by law, $840,558,000, to 
remain available until September 30, 2006: Provided, That such 
amounts of this appropriation as may be determined by the 
Secretary of Defense may be transferred to such appropriations 
of the Department of Defense available for military 
construction or family housing as he may designate, to be 
merged with and to be available for the same purposes, and for 
the same time period, as the appropriation or fund to which 
transferred: Provided further, That of the amount appropriated, 
not to exceed $66,496,000 shall be available for study, 
planning, design, architect and engineer services, as 
authorized bylaw, unless the Secretary of Defense determines 
that additional obligations are necessary for such purposes and 
notifies the Committees on Appropriations of both Houses of Congress of 
his determination and the reasons therefor: Provided further, That of 
the funds appropriated for ``Military Construction, Defense-wide'' 
under Public Law 106-246, $65,280,000 are rescinded: Provided further, 
That of the funds appropriated for ``Military Construction, Defense-
wide'' under previous Military Construction Appropriations Acts, 
$4,000,000 are rescinded.

               Military Construction, Army National Guard

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Army National Guard, and contributions 
therefor, as authorized by chapter 1803 of title 10, United 
States Code, and Military Construction Authorization Acts, 
$405,565,000, to remain available until September 30, 2006.

               Military Construction, Air National Guard

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Air National Guard, and contributions 
therefor, as authorized by chapter 1803 of title 10, United 
States Code, and Military Construction Authorization Acts, 
$253,386,000, to remain available until September 30, 2006.

                  Military Construction, Army Reserve

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Army Reserve as authorized by chapter 
1803 of title 10, United States Code, and Military Construction 
Authorization Acts, $167,019,000, to remain available until 
September 30, 2006.

                  Military Construction, Naval Reserve

                         (including rescission)

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the reserve components of the Navy and Marine 
Corps as authorized by chapter 1803 of title 10, United States 
Code, and Military Construction Authorization Acts, 
$53,201,000, to remain available until September 30, 2006: 
Provided, That of the funds appropriated for ``Military 
Construction, Naval Reserve'' under Public Law 106-246, 
$925,000 are rescinded.

                Military Construction, Air Force Reserve

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Air Force Reserve as authorized by 
chapter 1803 of title 10, United States Code, and Military 
Construction Authorization Acts, $74,857,000, to remain 
available until September 30, 2006.

     North Atlantic Treaty Organization Security Investment Program

    For the United States share of the cost of the North 
Atlantic Treaty Organization Security Investment Program for 
the acquisition and construction of military facilities and 
installations (including international military headquarters) 
and for related expenses for the collective defense of the 
North Atlantic Treaty Area as authorized in Military 
Construction Authorization Acts and section 2806 of title 10, 
United States Code, $162,600,000, to remain available until 
expended.

                   Family Housing Construction, Army

    For expenses of family housing for the Army for 
construction, including acquisition, replacement, addition, 
expansion, extension and alteration, as authorized by law, 
$312,742,000, to remain available until September 30, 2006.

             Family Housing Operation and Maintenance, Army

    For expenses of family housing for the Army for operation 
and maintenance, including debt payment, leasing, minor 
construction, principal and interest charges, and insurance 
premiums, as authorized by law, $1,089,573,000.

           Family Housing Construction, Navy and Marine Corps

    For expenses of family housing for the Navy and Marine 
Corps for construction, including acquisition, replacement, 
addition, expansion, extension and alteration, as authorized by 
law, $331,780,000, to remain available until September 30, 
2006.

    Family Housing Operation and Maintenance, Navy and Marine Corps

    For expenses of family housing for the Navy and Marine 
Corps for operation and maintenance, including debt payment, 
leasing, minor construction, principal and interest charges, 
and insurance premiums, as authorized by law, $910,095,000.

                 Family Housing Construction, Air Force

    For expenses of family housing for the Air Force for 
construction, including acquisition, replacement, addition, 
expansion, extension and alteration, as authorized by law, 
$550,703,000, to remain available until September 30, 2006.

          Family Housing Operation and Maintenance, Air Force

    For expenses of family housing for the Air Force for 
operation and maintenance, including debt payment, leasing, 
minor construction, principal and interest charges, and 
insurance premiums, as authorized by law, $844,715,000.

                      Family Housing, Defense-wide

    For expenses of family housing for the activities and 
agencies of the Department of Defense (other than the military 
departments) for construction, including acquisition, 
replacement, addition, expansion, extension and alteration, and 
for operation and maintenance, leasing, and minor construction, 
as authorized by law, as follows: for Construction, $250,000 to 
remain available until September 30, 2006; for Operation and 
Maintenance, $43,762,000; in all $44,012,000.

         Department of Defense Family Housing Improvement Fund

    For the Department of Defense Family Housing Improvement 
Fund, $2,000,000, to remain available until expended, for 
family housing initiatives undertaken pursuant to section 2883 
of title 10, United States Code, providing alternative means of 
acquiring and improving military family housing, and supporting 
facilities.

                  Homeowners Assistance Fund, Defense

    For the Homeowners Assistance Fund established by section 
1013 of the Demonstration Cities and Metropolitan Development 
Act of 1966, as amended (42 U.S.C. 3374) $10,119,000, to remain 
available until expended.

                  Base Realignment and Closure Account

    For deposit into the Department of Defense Base Closure 
Account 1990 established by section 2906(a)(1) of the 
Department of Defense Authorization Act, 1991 (Public Law 101-
510), $632,713,000, to remain available until expended.

                           GENERAL PROVISIONS

    Sec. 101. None of the funds appropriated in Military 
Construction Appropriations Acts shall be expended for payments 
under a cost-plus-a-fixed-fee contract for construction, where 
cost estimates exceed $25,000, to be performed within the 
United States, except Alaska, without the specific approval in 
writing of the Secretary of Defense setting forth the reasons 
therefor.
    Sec. 102. Funds appropriated to the Department of Defense 
for construction shall be available for hire of passenger motor 
vehicles.
    Sec. 103. Funds appropriated to the Department of Defense 
for construction may be used for advances to the Federal 
Highway Administration, Department of Transportation, for the 
construction of access roads as authorized by section 210 of 
title 23, United States Code, when projects authorized therein 
are certified as important to the national defense by the 
Secretary of Defense.
    Sec. 104. None of the funds appropriated in this Act may be 
used to begin construction of new bases inside the continental 
United States for which specific appropriations have not been 
made.
    Sec. 105. No part of the funds provided in Military 
Construction Appropriations Acts shall be used for purchase of 
land or land easements in excess of 100 percent of the value as 
determined by the Army Corps of Engineers or the Naval 
Facilities Engineering Command, except: (1) where there is a 
determination of value by a Federal court; (2) purchases 
negotiated by the Attorney General or his designee; (3) where 
the estimated value is less than $25,000; or (4) as otherwise 
determined by the Secretary of Defense to be in the public 
interest.
    Sec. 106. None of the funds appropriated in Military 
Construction Appropriations Acts shall be used to: (1) acquire 
land; (2) provide for site preparation; or (3) install 
utilities for any family housing, except housing for which 
funds have been made available in annual Military Construction 
Appropriations Acts.
    Sec. 107. None of the funds appropriated in Military 
Construction Appropriations Acts for minor construction may be 
used to transfer or relocate any activity from one base or 
installation to another, without prior notification to the 
Committees on Appropriations.
    Sec. 108. No part of the funds appropriated in Military 
Construction Appropriations Acts may be used for the 
procurement of steel for any construction project or activity 
for which American steel producers, fabricators, and 
manufacturers have been denied the opportunity to compete for 
such steel procurement.
    Sec. 109. None of the funds available to the Department of 
Defense for military construction or family housing during the 
current fiscal year may be used to pay real property taxes in 
any foreign nation.
    Sec. 110. None of the funds appropriated in Military 
Construction Appropriations Acts may be used to initiate a new 
installation overseas without prior notification to the 
Committees on Appropriations.
    Sec. 111. None of the funds appropriated in Military 
Construction Appropriations Acts may be obligated for architect 
and engineer contracts estimated by the Government to exceed 
$500,000 for projects to be accomplished in Japan, in any NATO 
member country, or in countries bordering the Arabian Sea, 
unless such contracts are awarded to United States firms or 
United States firms in joint venture with host nation firms.
    Sec. 112. None of the funds appropriated in Military 
Construction Appropriations Acts for military construction in 
the United States territories and possessions in the Pacific 
and on Kwajalein Atoll, or in countries bordering the Arabian 
Sea, may be used to award any contract estimated by the 
Government to exceed $1,000,000 to a foreign contractor: 
Provided, That this section shall not be applicable to contract 
awards for which the lowest responsive and responsible bid of a 
United States contractor exceeds the lowest responsive and 
responsible bid of a foreign contractor by greater than 20 
percent: Provided further, That this section shall not apply to 
contract awards for military construction on Kwajalein Atoll 
for which the lowest responsive and responsible bid is 
submitted by a Marshallese contractor.
    Sec. 113. The Secretary of Defense is to inform the 
appropriate committees of Congress, including the Committees on 
Appropriations, of the plans and scope of any proposed military 
exercise involving United States personnel 30 days prior to its 
occurring, if amounts expended for construction, either 
temporary or permanent, are anticipated to exceed $100,000.
    Sec. 114. Not more than 20 percent of the appropriations in 
Military Construction Appropriations Acts which are limited for 
obligation during the current fiscal year shall be obligated 
during the last 2 months of the fiscal year.

                          (transfer of funds)

    Sec. 115. Funds appropriated to the Department of Defense 
for construction in prior years shall be available for 
construction authorized for each such military department by 
the authorizations enacted into law during the current session 
of Congress.
    Sec. 116. For military construction or family housing 
projects that are being completed with funds otherwise expired 
or lapsed for obligation, expired or lapsed funds may be used 
to pay the cost of associated supervision, inspection, 
overhead, engineering and design on those projects and on 
subsequent claims, if any.
    Sec. 117. Notwithstanding any other provision of law, any 
funds appropriated to a military department or defense agency 
for the construction of military projects may be obligated for 
a military construction project or contract, or for any portion 
of such a project or contract, at any time before the end of 
the fourth fiscal year after the fiscal year for which funds 
for such project were appropriated if the funds obligated for 
such project: (1) are obligated from funds available for 
military construction projects; and (2) do not exceed the 
amount appropriated for such project, plus any amount by which 
the cost of such project is increased pursuant to law.

                          (transfer of funds)

    Sec. 118. During the 5-year period after appropriations 
available to the Department of Defense for military 
construction and family housing operation and maintenance and 
construction have expired for obligation, upon a determination 
that such appropriations will not be necessary for the 
liquidation of obligations or for making authorized adjustments 
to such appropriations for obligations incurred during the 
period of availability of such appropriations, unobligated 
balances of such appropriations may be transferred into the 
appropriation ``Foreign Currency Fluctuations, Construction, 
Defense'' to be merged with and to be available for the same 
time period and for the same purposes as the appropriation to 
which transferred.
    Sec. 119. The Secretary of Defense is to provide the 
Committees on Appropriations of the Senate and the House of 
Representatives with an annual report by February 15, 
containing details of the specific actions proposed to be taken 
by the Department of Defense during the current fiscal year to 
encourage other member nations of the North Atlantic Treaty 
Organization, Japan, Korea, and United States allies bordering 
the Arabian Sea to assume a greater share of the common defense 
burden of such nations and the United States.

                          (transfer of funds)

    Sec. 120. During the current fiscal year, in addition to 
any other transfer authority available to the Department of 
Defense, proceeds deposited to the Department of Defense Base 
Closure Account established by section 207(a)(1) of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
(Public Law 100-526) pursuant to section 207(a)(2)(C) of such 
Act, may be transferred to the account established by section 
2906(a)(1) of the Department of Defense Authorization Act, 
1991, to be merged with, and to be available for the same 
purposes and the same time period as that account.
    Sec. 121. (a) No funds appropriated pursuant to this Act 
may be expended by an entity unless the entity agrees that in 
expending the assistance the entity will comply with sections 2 
through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c, 
popularly known as the ``Buy American Act'').
    (b) No funds made available under this Act shall be made 
available to any person or entity who has been convicted of 
violating the Act of March 3, 1933 (41 U.S.C. 10a-10c, 
popularly known as the ``Buy American Act'').
    Sec. 122. (a) In the case of any equipment or products that 
may be authorized to be purchased with financial assistance 
provided under this Act, it is the sense of the Congress that 
entities receiving such assistance should, in expending the 
assistance, purchase only American-made equipment and products.
    (b) In providing financial assistance under this Act, the 
Secretary of the Treasury shall provide to each recipient of 
the assistance a notice describing the statement made in 
subsection (a) by the Congress.

                          (transfer of funds)

    Sec. 123. Subject to 30 days prior notification to the 
Committees on Appropriations, such additional amounts as may be 
determined by the Secretary of Defense may be transferred to 
the Department of Defense Family Housing Improvement Fund from 
amounts appropriated for construction in ``Family Housing'' 
accounts, to be merged with and to be available for the same 
purposes and for the same period of time as amounts 
appropriated directly to the Fund: Provided, That 
appropriations made available to the Fund shall be available to 
cover the costs, as defined in section 502(5) of the 
Congressional Budget Act of 1974, of direct loans or loan 
guarantees issued by the Department of Defense pursuant to the 
provisions of subchapter IV of chapter 169, title 10, United 
States Code, pertaining to alternative means of acquiring and 
improving military family housing and supporting facilities.
    Sec. 124. None of the funds appropriated or made available 
by this Act may be obligated for Partnership for Peace Programs 
in the New Independent States of the former Soviet Union.
    Sec. 125. (a) Not later than 60 days before issuing any 
solicitation for a contract with the private sector for 
military family housing the Secretary of the military 
department concerned shall submit to the congressional defense 
committees the notice described in subsection (b).
    (b)(1) A notice referred to in subsection (a) is a notice 
of any guarantee (including the making of mortgage or rental 
payments) proposed to be made by the Secretary to the private 
party under the contract involved in the event of--
            (A) the closure or realignment of the installation 
        for which housing is provided under the contract;
            (B) a reduction in force of units stationed at such 
        installation; or
            (C) the extended deployment overseas of units 
        stationed at such installation.
    (2) Each notice under this subsection shall specify the 
nature of the guarantee involved and assess the extent and 
likelihood, if any, of the liability of the Federal Government 
with respect to the guarantee.
    (c) In this section, the term ``congressional defense 
committees'' means the following:
            (1) The Committee on Armed Services and the 
        Military Construction Subcommittee, Committee on 
        Appropriations of the Senate.
            (2) The Committee on Armed Services and the 
        Military Construction Subcommittee, Committee on 
        Appropriations of the House of Representatives.

                          (transfer of funds)

    Sec. 126. During the current fiscal year, in addition to 
any other transfer authority available to the Department of 
Defense, amounts may be transferred from the account 
established by section 2906(a)(1) of the Department of Defense 
Authorization Act, 1991, to the fund established by section 
1013(d) of the Demonstration Cities and Metropolitan 
Development Act of 1966 (42 U.S.C. 3374) to pay for expenses 
associated with the Homeowners Assistance Program. Any amounts 
transferred shall be merged with and be available for the same 
purposes and for the same time period as the fund to which 
transferred.
    Sec. 127. Notwithstanding this or any other provision of 
law, funds appropriated in Military Construction Appropriations 
Acts for operations and maintenance of family housing shall be 
the exclusive source of funds for repair and maintenance of all 
family housing units, including general or flag officer 
quarters: Provided, That not more than $35,000 per unit may be 
spent annually for the maintenance and repair of any general or 
flag officer quarters without 30 days advance prior 
notification to the appropriate committees of Congress: 
Provided further, That the Under Secretary of Defense 
(Comptroller) is to report annually to the Committees on 
Appropriations all operations and maintenance expenditures for 
each individual general or flag officer quarters for the prior 
fiscal year.
    Sec. 128. In addition to the amounts provided in Public Law 
107-20, of the funds appropriated under the heading ``Military 
Construction, Air Force'' in this Act, $8,000,000 is to remain 
available until September 30, 2005: Provided, That 
notwithstanding any other provision of law, such funds may be 
obligated or expended to carry out planning and design and 
military construction activities at the Masirah Island Airfield 
in Oman, not otherwise authorized by law.
    Sec. 129. Not later than 90 days after the enactment of 
this Act, the Secretary of Defense shall submit to the 
congressional defense committees a master plan for the 
environmental remediation of Hunters Point Naval Shipyard, 
California. The plan shall identify an aggregate cost estimate 
for the entire project as well as cost estimates for individual 
parcels. The plan shall also include a detailed cleanup 
schedule and an analysis of whether the Department is meeting 
legal requirements and community commitments. Following 
submission of the initial report, the Department shall submit 
semi-annual progress reports to the congressional defense 
committees.

                         (rescission of funds)

    Sec. 130. Of the funds available to the Secretary of 
Defense in the ``Foreign Currency Fluctuations, Construction, 
Defense'' account, $60,000,000 are rescinded.
    Sec. 131. (a) Requests for Funds for Environmental 
Restoration at BRAC Sites in Future Fiscal Years.--In the 
budget justification materials submitted to Congress in support 
of the Department of Defense budget for any fiscal year after 
fiscal year 2002, the amount requested for environmental 
restoration, waste management, and environmental compliance 
activities in such fiscal year with respect to military 
installations approved for closure or realignment under the 
base closure laws shall accurately reflect the anticipated cost 
of such activities in such fiscal year.
    (b) Base Closure Laws Defined.--In this section, the term 
``base closure laws'' means the following:
            (1) Section 2687 of title 10, United States Code.
            (2) 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) Title II of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public 
        Law 100-526; 10 U.S.C. 2687 note).
    Sec. 132. (a) The total of the amounts appropriated by the 
other provisions of this Act, other than the amounts 
appropriated for the accounts specified in subsection (c), is 
hereby reduced by 1.127 percent.
    (b) The total amount of the reduction computed under 
subsection (a) shall be allocated proportionally among all of 
the budget activities, activity groups, and subactivity groups 
and among all of the accounts and all of the programs, 
projects, and activities within each account, except for the 
accounts specified in subsection (c).
    (c) No reduction shall be allocated under this section to 
the Base Realignment and Closure Account, or to the North 
Atlantic Treaty Organization Security Investment Program.
    This Act may be cited as the ``Military Construction 
Appropriations Act, 2002''.
    And the Senate agree to the same.

                                   David L. Hobson,
                                   James T. Walsh,
                                   Dan Miller,
                                   Robert B. Aderholt,
                                   Kay Granger,
                                   Virgil Goode, Jr.,
                                   Joe Skeen,
                                   David Vitter,
                                   Bill Young,
                                   John W. Olver,
                                   Chet Edwards,
                                   Sam Farr,
                                   Allen Boyd,
                                   Norman Dicks,
                                   David Obey,
                                 Managers on the Part of the House.

                                   Dianne Feinstein,
                                   Daniel K. Inouye,
                                   Tim Johnson,
                                   Mary Landrieu,
                                   Harry Reid,
                                   Robert C. Byrd,
                                   Kay Bailey Hutchison,
                                   Conrad Burns,
                                   Larry E. Craig
                                   Mike DeWine,
                                   Ted Stevens,
                                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 Senate to the bill (H.R. 2904) making 
appropriations for the Department of Defense for the fiscal 
year ending September 30, 2002, and for other purposes, submit 
the following joint statement to the House of Representatives 
and the Senate in explanation of the effect of the action 
agreed upon by the managers and recommended in the accompanying 
conference report.
      The Senate deleted the entire House bill after the 
enacting clause and inserted the Senate bill (S. 1460). The 
conference agreement includes a revised bill.

                       Items of General Interest

      Matters Addressed by Only One Committee.--The language 
and allocations set forth in House Report 107-207 and Senate 
Report 107-68 should be complied with unless specifically 
addressed to the contrary in the conference report and 
statement of the managers. Report language included by the 
House which is not changed by the report of the Senate or the 
conference, and Senate report language which is not changed by 
the conference is approved by the committee of conference. The 
statement of the managers, while repeating some report language 
for emphasis, does not intend to negate the language referred 
to above unless expressly provided herein. In cases in which 
the House or the Senate have directed the submission of a 
report from the Department of Defense, such report is to be 
submitted to both House and Senate Committees on 
Appropriations.
      Financial Management.--The conferees agree that the 
rescission of funds and general reductions included in the 
conference agreement are based on prior year unobligated 
balances and such factors as savings through favorable bids, 
reduced overhead costs, downsizing or cancellation due to force 
structure changes (if any), other administrative cost reduction 
initiatives, revised economic assumptions, and inflation re-
estimates. The conferees direct that no project for which funds 
were previously appropriated, or for which funds are 
appropriated in this bill, may be canceled as a result of the 
reductions included in the conference agreement.
      Foreign Currency Fluctuations, Construction, Defense.--
The amounts available in the ``Foreign Currency Fluctuations, 
Construction, Defense'' account exceed those necessary to 
eliminate losses due to unfavorable fluctuations in foreign 
currency exchange rates. Accordingly, the conferees include a 
provision (Section 130) which rescinds $60,000,000 from this 
account.
      Sustainment, Restoration, and Modernization: Reporting 
Requirement.--The conferees agree to the following general 
rules for repairing a facility under operation and maintenance 
funding:
      Components of the facility may be repaired by 
replacement, and such replacement can be up to current 
standards or code.
      Interior arrangements and restorations may be included as 
repair, but additions, new facilities, and functional 
conversions must be performed as military construction 
projects.
      Such projects may be done concurrent with repair 
projects, as long as the final conjunctively funded project is 
a complete and usable facility.
      The appropriate Service Secretary shall notify the 
appropriate Committees 21 days prior to carrying out any repair 
project with an estimated cost in excess of $7,500,000.
      The Department is directed to provide sustainment, 
restoration, and modernization backlog at all installations for 
which there is a requested construction project in future 
budget requests. This information is to be provided on the form 
1390. In addition, for all troop housing requests, the form 
1391 is to show all sustainment, restoration, and modernization 
conducted in the past two years and future requirements for 
unaccompanied housing at the installation.
      Family Housing Operation and Maintenance: Financial 
Management.--The conferees agree to continue the restriction on 
the transfer of funds between the family housing operation and 
maintenance accounts. The limitation is ten percent to all 
primary accounts and subaccounts. Such transfers are to be 
reported to the appropriate Committees within thirty days of 
such action.
      Overseas Basing Master Plan.--The conferees support the 
Senate direction for an overseas basing master plan, to be 
submitted no later than April 1, 2002.
      Pennsylvania: Joint-use Facility.--The conferees are 
aware of the need to renovate four Guard and Reserve facilities 
in Northeastern Pennsylvania and the benefits of consolidating 
them into a joint-use facility. Therefore, the conferees 
encourage the Department to make this project a priority and 
program the requirement in the Future Years Defense Plan.

                      military construction, army

                         (including rescission)

      The conference agreement appropriates $1,778,256,000 for 
Military Construction, Army, instead of $1,739,334,000 as 
proposed by the House, and $1,668,957,000 as proposed by the 
Senate. Within this amount, the conference agreement earmarks 
$163,198,000 for study, planning, design, architect and 
engineer services, and host nation support instead of 
$163,141,000 as proposed by the House and $176,184,000 as 
proposed by the Senate. The conference agreement rescinds 
$36,400,000 from funds appropriated for Military Construction, 
Army under Public Law 106-52, as proposed by the House, instead 
of $26,400,000 as proposed by the Senate.

                      military construction, navy

                         (including rescission)

      The conference agreement appropriates $1,144,221,000 for 
Military Construction, Navy, instead of $1,154,248,000 as 
proposed by the House, and $1,148,633,000 as proposed by the 
Senate. Within this amount, the conference agreement earmarks 
$34,152,000 for study, planning, design, architect and engineer 
services instead of $30,972,000 as proposed by the House and 
$37,332,000 as proposed by the Senate. The conference agreement 
rescinds $19,588,000 from funds appropriated for Military 
Construction, Navy under Public Law 106-246, as proposed by the 
House and Senate.
      Texas: Kingsville Naval Air Station: Airfield Lighting.--
The conferees direct the Navy to accelerate design of this 
project and to include the required construction funding in the 
budget request for fiscal year 2003.

                    military construction, air force

                         (including rescission)

      The conference agreement appropriates $1,194,880,000 for 
Military Construction, Air Force, instead of $1,185,220,000 as 
proposed by the House, and $1,148,269,000 as proposed by the 
Senate. Within this amount, the conference agreement earmarks 
$83,210,000 for study, planning, design, architect and engineer 
services instead of $83,000,000 as proposed by the House and 
$83,420,000 as proposed by the Senate. The conference agreement 
rescinds $4,000,000 from funds appropriated for Military 
Construction, Air Force under previous Military Construction 
Appropriations Acts, as proposed by the Senate.
      Nebraska--Offutt Air Force Base: Fire/Crash Rescue 
Station.--The conferees direct the Air Force to accelerate 
design of this project and to include the required construction 
funding in the budget request for fiscal year 2003.
      Wyoming--F.E. Warren Air Force Base: Storm Water Drainage 
System.--The fiscal year 2001 Senate Report 106-290 included 
funding of $10,300,000 for a Storm Water Drainage System 
Project at F.E. Warren Air Force Base in Wyoming. 
Unfortunately, funding constraints prohibited final action. 
Storm water flooding remains a major problem at F.E. Warren Air 
Force Base. The project will better manage and divert flood 
waters on the installation. In addition, the project will 
greatly decrease the amount of storm water leaving the base 
which significantly impacts on the surrounding community. The 
conferees agree that this project addresses an urgent, mission 
critical, and safety requirement, and the Air Force is strongly 
encouraged to include this project in the budget request for 
fiscal year 2003.
      Korea--Osan Air Base: Base Civil Engineer Complex.--The 
conferees are concerned about the significant cost of replacing 
current civil engineer facilities at Osan Air Base as proposed 
in the fiscal year 2002 budget request. Although the conferees 
support follow-on family housing projects envisioned for Osan 
Air Base, they do not support funding for a robust civil 
engineering complex without significant host nation 
contribution. The conferees understand that the civil engineers 
currently occupy land that will ultimately be used to build 
family housing. Family housing is a direct quality of life 
issue that will have a significant impact on the airmen and the 
families assigned to the base. The conferees agree to provide 
the Air Force $12,000,000 for the base civil engineer project 
for site preparation and preliminary utilities requirements. 
The conferees direct that any further funding requirements 
related to this project be funded through host nation support.

                  military construction, defense-wide

             (including transfer and rescissions of funds)

      The conference agreement appropriates $840,558,000 for 
Military Construction, Defense-wide, instead of $863,058,000 as 
proposed by the House, and $881,058,000 as proposed by the 
Senate. Within this amount, the conference agreement earmarks 
$66,496,000 for study, planning, design, architect and engineer 
services instead of $74,496,000 as proposed by the House and 
$88,496,000 as proposed by the Senate. The conference agreement 
rescinds $69,280,000 from funds appropriated for Military 
Construction, Defense-wide under Public Law 106-246 and 
previous Military Construction Appropriations Acts, as proposed 
by the Senate, instead of $10,250,000 as proposed by the House.
      Chemical Demilitarization: Defense Road Requirements.--
The conferees are concerned about the emergency preparedness 
planning as part of the Chemical Demilitarization Program. Of 
the funds made available in the ``Military Construction, 
Defense-wide'' account, the Department may spend up to $300,000 
to conduct a feasibility study on the requirements for defense 
roads at the chemical demilitarization sites in the United 
States to support emergency preparedness requirements.
      Energy Conservation and Improvement Program.--The 
conferees agree to provide a total of $27,000,000 for this 
program. Of these funds, the conferees direct that $6,000,000 
be used to conduct a service-wide assessment of renewable 
energy alternatives at or near Department of Defense 
installations, as described in detail in Senate Report 107-68.
      Measurement and Signature Intelligence Facilities.--The 
conferees have agreed to drop Senate report language which 
allocated $10,000,000 for the planning and design of two 
Measurement and Signature Intelligence (MASINT) facilities.

               Military Construction, Army National Guard

      The conference agreement appropriates $405,565,000 for 
Military Construction, Army National Guard, instead of 
$313,348,000 as proposed by the House, and $378,549,000 as 
proposed by the Senate.
      Arizona--Papago Park Military Reservation: Add/Alter 
Readiness Center.--Although the conferees were unable to fund 
this project due to funding constraints, the conferees strongly 
urge the Army National Guard to include this project in its 
fiscal year 2003 budget submission.
      Weapons of Mass Destruction--Civil Support Teams.--Of the 
funds provided for unspecified minor construction within the 
``Military Construction, Army National Guard'' account, the 
conferees direct that not less than $6,000,000 be made 
available to directly support the completion of facilities for 
WMD/CST locations.

               Military Construction, Air National Guard

      The conference agreement appropriates $253,386,000 for 
Military Construction, Air National Guard, instead of 
$198,803,000 as proposed by the House, and $222,767,000 as 
proposed by the Senate.
      Ohio--Mansfield Lahm Airport: Replace Vehicle Maintenance 
Facility.--Although the conferees were unable to fund this 
project due to funding constraints, the conferees strongly urge 
the Air National Guard to include this project in its fiscal 
year 2003 budget submission.

                  Military Construction, Army Reserve

      The conference agreement appropriates $167,019,000 for 
Military Construction, Army Reserve, instead of $167,769,000 as 
proposed by the House, and $111,404,000 as proposed by the 
Senate.

                  Military Construction, Naval Reserve

                         (Including Rescission)

      The conference agreement appropriates $53,201,000 for 
Military Construction, Naval Reserve, instead of $62,351,000 as 
proposed by the House, and $33,641,000 as proposed by the 
Senate. The conference agreement rescinds $925,000 from funds 
appropriated for Military Construction, Naval Reserve under 
Public Law 106-246, as proposed by the House and Senate.
      Texas--Fort Worth Joint Reserve Base: Compartmented 
Intelligence Facility.--In Senate Report 107-68, the 
compartmented intelligence facility at Fort Worth Joint Reserve 
Base was incorrectly identified as a Navy project. This project 
should be executed with funds made available for unspecified 
minor construction in the ``Military Construction, Naval 
Reserve'' account.

                Military Construction, Air Force Reserve

      The conference agreement appropriates $74,857,000 for 
Military Construction, Air Force Reserve, instead of 
$81,882,000 as proposed by the House, and $53,732,000 as 
proposed by the Senate.
      Michigan--Selfridge Air National Guard Base: Alter 
Command Post/Logistics Base.--In Senate Report 107-68, the 
alter command post/logistics base project at Selfridge Air 
National Guard Base was incorrectly identified as an Air 
National Guard project. This project should be executed with 
funds made available for unspecified minor construction in the 
``Military Construction, Air Force Reserve'' account.

     North Atlantic Treaty Organization Security Investment Program

      The conference agreement appropriates $162,600,000 for 
the North Atlantic Treaty Organization Security Investment 
Program (NSIP), as proposed by the House and Senate.

                   family housing construction, army

      The conference agreement appropriates $312,742,000 for 
Family Housing Construction, Army, as proposed by the Senate, 
instead of $294,042,000 as proposed by the House.

              Family Housing Operation and Maintenance, Army

      The conference agreement appropriates $1,089,573,000 for 
Family Housing Operation and Maintenance, Army, instead of 
$1,096,431,000 as proposed by the House and $1,108,991,000 as 
proposed by the Senate.
      District of Columbia-Fort McNair: General Officer 
Quarters.--The Army has requested it be allowed to substitute 
the renovation of Quarters 7 at Fort McNair, at a cost of 
$700,000, in place of Quarters 3, as submitted in its budget 
request for $1,200,000. The conferees agree with this 
substitution. The conferees are encouraged by the Army's study 
being performed by the National Association of Homebuilders to 
refine and reduce the original cost projections for Fort 
McNair's quarters, which appear too high. The conferees expect 
the Army to use the most economical and cost-effective approach 
toward renovating these historic quarters.

           Family Housing Construction, Navy and Marine Corps

      The conference agreement appropriates $331,780,000 for 
Family Housing Construction, Navy and Marine Corps, instead of 
$334,780,000 as proposed by the House and $312,600,000 as 
proposed by the Senate.
      The conferees direct that the following projects are to 
be accomplished within the increased amount provided for 
construction improvements:

District of Columbia: 8th and I Marine Barracks (2 
    units)..............................................      $1,600,000
Hawaii: Barking Sands (69 units)........................      11,840,000
Massachusetts: Westover Air Reserve Base (124 units)....       6,940,000

    Family Housing Operation and Maintenance, Navy and Marine Corps

      The conference agreement appropriates $910,095,000 for 
Family Housing Operation and Maintenance, Navy and Marine 
Corps, as proposed by the House, instead of $918,095,000 as 
proposed by the Senate.

                 Family Housing Construction, Air Force

      The conference agreement appropriates $550,703,000 for 
Family Housing Construction, Air Force, as proposed by the 
Senate, instead of $536,237,000 as proposed by the House.
      The conferees direct that the following projects are to 
be accomplished within the increased amount provided for 
construction improvements:

Missouri: Whiteman AFB (164 units)......................     $17,966,000
South Carolina: Charleston AFB (32 units)...............       4,500,000

          Family Housing Operation and Maintenance, Air Force

      The conference agreement appropriates $844,715,000 for 
Family Housing Operation and Maintenance, Air Force, instead of 
$858,121,000 as proposed by the House and $869,121,000 as 
proposed by the Senate.

                      Family Housing, Defense-wide

      The conference agreement appropriates $44,012,000 for 
Family Housing, Defense-wide, as proposed by the House and 
Senate.

         Department of Defense Family Housing Improvement Fund

      The conference agreement provides $2,000,000 for the 
Department of Defense Family Housing Improvement Fund, as 
proposed by the House and Senate. Transfer authority is 
provided for the execution of any qualifying project under 
privatization authority, which resides in the Fund.
      Housing Privatization Support Costs.--The conferees are 
extremely concerned about the costs of consultants hired to 
assist the services with the housing privatization initiative. 
For example, the Army requested $27,918,000 and the Air Force 
requested $35,402,000 to pay for consultants. Costs of this 
magnitude are exorbitant, especially as neither the Army nor 
Air Force has made sufficient progress in privatizing its 
housing inventory. Therefore, the conferees agree to reduce 
$7,918,000 from the ``Family Housing Operation and Maintenance, 
Army'' account, and $13,402,000 from the ``Family Housing 
Operation and Maintenance, Air Force'' account. Furthermore, 
the conferees remind the services that these funds should be 
spent on creating, analyzing and negotiating complex real 
estate transactions--not on public relations or work that can 
be done by the services' staff.

                  Homeowners Assistance Fund, Defense

      The conference agreement appropriates $10,119,000 for the 
Homeowners Assistance Fund, Defense, as proposed by the House 
and Senate.

                  Base Realignment and Closure Account

      The conference agreement appropriates $632,713,000 for 
the Base Realignment and Closure Account, instead of 
$552,713,000 as proposed by the House and $682,200,000 as 
proposed by the Senate.
      Environmental Remediation Shortfalls.--The conferees have 
included a general provision (Section 131) directing the 
Department of Defense to accurately reflect the cost of 
environmental remediation activities in its future budget 
submissions for Base Realignment and Closure (BRAC) funding. 
The conferees note that the Navy and Air Force BRAC budget 
requests for fiscal year 2002 were far below the level of 
funding needed to meet urgent obligations.
      The conferees have agreed to provide and fully offset 
$100,513,000 over the budget request to fund environmental 
remediation funding shortfalls in the Navy and AirForce BRAC 
accounts. The conference provision includes $80,513,000 for the Navy 
and $20,000,000 for the Air Force. The conferees note that the funding 
shortfalls are the result of inadequate programming and budgeting 
decisions on the part of the Navy and Air Force.
      The conferees strongly believe that the Navy and Air 
Force should bear the burden of making up these shortfalls. 
Therefore, the funding to cover the BRAC environmental 
remediation shortfalls is derived from the following sources: a 
rescission of $19,588,000 from previously appropriated Navy 
planning and design funds, a rescission of $925,000 from 
previously appropriated Naval Reserve planning and design 
funds, a $60,000,000 general reduction in the fiscal year 2002 
``Military Construction, Navy'' account, and a $20,000,000 
general reduction in the fiscal year 2002 ``Military 
Construction, Air Force'' account. The conferees direct that no 
item of congressional interest may be canceled or delayed as a 
result of these general reductions.
      In addition to the funds provided in this Act, the Navy 
and Air Force are directed to allocate all unobligated balances 
from previously appropriated BRAC funds to address their fiscal 
year 2002 BRAC environmental remediation funding shortfall. The 
conferees direct the services to program and budget for the 
entire amount of their annual BRAC environmental remediation 
obligations in future years, beginning with fiscal year 2003. 
Failure to do so will force the congressional committees to 
take proportionate reductions in specific military construction 
projects or programs requested by the services.

                           General Provisions

      The conference agreement includes general provisions 
(Sections 101-120) that were not amended by either the House or 
Senate in their versions of the bill.
      The conference agreement includes a provision, Section 
121, as proposed by the House, which prohibits the expenditure 
of funds except in compliance with the Buy American Act. The 
Senate bill contained no similar provision.
      The conference agreement includes a provision, Section 
122, as proposed by the House, which states the Sense of the 
Congress that recipients of equipment or products authorized to 
be purchased with financial assistance provided in this Act are 
to be notified that they must purchase American-made equipment 
and products. The Senate bill contained no similar provision.
      The conference agreement includes a provision, Section 
123, as proposed by the House and Senate, permitting the 
transfer of funds from Family Housing, Construction accounts to 
the DOD Family Housing Improvement Fund.
      The conference agreement includes a provision renumbered 
Section 124, as proposed by the House and the Senate, to 
prohibit the use of funds in this Act to be obligated for 
Partnership for Peace programs in the New Independent States of 
the former Soviet Union.
      The conference agreement includes a provision renumbered 
Section 125, as proposed by the House and the Senate, which 
requires the Secretary of Defense to notify Congressional 
Committees sixty days prior to issuing a solicitation for a 
contract with the private sector for military family housing.
      The conference agreement includes a provision renumbered 
Section 126, as proposed by the House and the Senate, which 
provides transfer authority to the Homeowners Assistance 
Program.
      The conference agreement includes a provision renumbered 
Section 127, as proposed by the Senate, regarding funding for 
operation and maintenance of general officer quarters.
      The conference agreement includes a provision renumbered 
Section 128, as proposed by the Senate, which authorizes 
$8,000,000 for a military construction project at Masirah 
Island Airfield, Oman. The House bill contained a similar 
provision.
      The conference agreement includes a provision, Section 
129, as proposed by the Senate, which requires the Secretary of 
Defense to submit a master plan for the environmental 
remediation of Hunters Point Naval Shipyard, California. The 
House bill contained no similar provision.
      The conference agreement includes a provision, Section 
130, which rescinds $60,000,000 from the ``Foreign Currency 
Fluctuations, Construction, Defense'' account.
      The conference agreement includes a provision, Section 
131, which directs the Department of Defense to accurately 
reflect the cost of environmental restoration activities in its 
future budget submissions for the Base Realignment and Closure 
(BRAC) account.
      The conference agreement includes a provision, Section 
132, which reduces all accounts in the bill with the exception 
of the ``NATO Security Investment Program''account and the 
``Base Realignment and Closure'' account by 1.127 percent.
      Those general provisions not included in the conference 
agreement are as follows:
      The conference agreement deletes the House provision 
regarding family housing master plans.
      The conference agreement deletes the Senate provision 
regarding a defense road feasibility study at Pine Bluff 
Arsenal, Arkansas.

                   CONFERENCE TOTAL--WITH COMPARISONS

      The total new budget (obligational) authority for the 
fiscal year 2002 recommended by the Committee of Conference, 
with comparisons to the fiscal year 2001 amount, the 2002 
budget estimates, and the House and Senate bills for 2002 
follows:

                        [In thousands of dollars]

New budget (obligational) authority, fiscal year 2001...      $8,936,498
Budget estimates of new (obligational) authority, fiscal 
    year 2002...........................................       9,971,312
House bill, fiscal year 2002............................      10,500,000
Senate bill, fiscal year 2002...........................      10,500,000
Conference agreement, fiscal year 2002..................      10,500,000
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      2001..............................................      +1,563,502
    Budget estimates of new (obligational) authority, 
      fiscal year 2002..................................        +528,688
    House bill, fiscal year 2002........................
    Senate bill, fiscal year 2002.......................

                                   David L. Hobson,
                                   James T. Walsh,
                                   Dan Miller,
                                   Robert B. Aderholt,
                                   Kay Granger,
                                   Virgil Goode, Jr.,
                                   Joe Skeen,
                                   David Vitter,
                                   Bill Young,
                                   John W. Olver,
                                   Chet Edwards,
                                   Sam Farr,
                                   Allen Boyd,
                                   Norman Dicks,
                                   David Obey,
                                 Managers on the Part of the House.

                                   Dianne Feinstein,
                                   Daniel K. Inouye,
                                   Tim Johnson,
                                   Mary Landrieu,
                                   Harry Reid,
                                   Robert C. Byrd,
                                   Kay Bailey Hutchison,
                                   Conrad Burns,
                                   Larry E. Craig,
                                   Mike DeWine,
                                   Ted Stevens,
                                Managers on the Part of the Senate.

                                
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