```

[House Report 107-333]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-333
_______________________________________________________________________

                                     

                    NATIONAL DEFENSE AUTHORIZATION

                       ACT FOR FISCAL YEAR 2002

                               __________

                           CONFERENCE REPORT

                              to accompany

                                S. 1438

               December 12, 2001.--Ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
76-910 STAR                WASHINGTON : 2002

                            C O N T E N T S

                              ----------                              
                                                                   Page
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 attaches (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
107th 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 
          attaches.
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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

----------------------------------------------------------------------------------------------------------------
                                                         Number of officers of that reserve component who may be
                                                                        serving in the grade of:
   ``Total number of members of a reserve component    ---------------------------------------------------------
     serving on full-time reserve component duty:                              Lieutenant
                                                              Major             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:

----------------------------------------------------------------------------------------------------------------
                                                         Number of officers who may be serving in the grade of:
 ``Total number of members of Naval Reserve serving on ---------------------------------------------------------
           full-time reserve component duty                 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:

------------------------------------------------------------------------
                                     Number of members of that reserve
  ``Total number of members of a    component who may be serving in the
reserve component serving on full-               grade of:
   time reserve component duty:   --------------------------------------
                                          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 
          attaches.
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:

``Sec. 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 ATTACHES.

    (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 or service attache 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 or service attache 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 or service attache 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:

Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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) by inserting ``(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:

``Sec. 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:

``Sec. 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                                               2 or less      Over 2       Over 3       Over 4       Over 6
Grade
----------------------------------------------------------------------------------------------------------------
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                                                 Over 8      Over 10      Over 12      Over 14      Over 16
Grade
----------------------------------------------------------------------------------------------------------------
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                                               2 or less      Over 2       Over 3       Over 4       Over 6
Grade
----------------------------------------------------------------------------------------------------------------
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                                               2 or less      Over 2       Over 3       Over 4       Over 6
Grade
----------------------------------------------------------------------------------------------------------------
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                                               2 or less      Over 2       Over 3       Over 4       Over 6
Grade
----------------------------------------------------------------------------------------------------------------
E-9 \2\........................................       $0.00        $0.00        $0.00        $0.00        $0.00
E-8............................................        0.00         0.00         0.00         0.00         0.00
E-7............................................    1,986.90     2,169.00     2,251.50     2,332.50     2,417.40
E-6............................................    1,701.00     1,870.80     1,953.60     2,033.70     2,117.40
E-5............................................    1,561.50     1,665.30     1,745.70     1,828.50     1,912.80
E-4............................................    1,443.60     1,517.70     1,599.60     1,680.30     1,752.30
E-3............................................    1,303.50     1,385.40     1,468.50     1,468.50     1,468.50
E-2............................................    1,239.30     1,239.30     1,239.30     1,239.30     1,239.30
E-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
                                                ----------------------------------------------------------------
E-9 \2\........................................       $0.00    $3,423.90     3,501.30     3,599.40     3,714.60
E-8............................................    2,858.10     2,940.60     3,017.70     3,110.10     3,210.30
E-7............................................    2,562.90     2,645.10     2,726.40     2,808.00     2,892.60
E-6............................................    2,254.50     2,337.30     2,417.40     2,499.30     2,558.10
E-5............................................    2,030.10     2,110.20     2,193.30     2,193.30     2,193.30
E-4............................................    1,752.30     1,752.30     1,752.30     1,752.30     1,752.30
E-3............................................    1,468.50     1,468.50     1,468.50     1,468.50     1,468.50
E-2............................................    1,239.30     1,239.30     1,239.30     1,239.30     1,239.30
E-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
                                                ----------------------------------------------------------------
E-9 \2\........................................   $3,830.40     3,944.10     4,098.30     4,251.30     4,467.00
E-8............................................    3,314.70     3,420.30     3,573.00     3,724.80     3,937.80
E-7............................................    2,975.10     3,057.30     3,200.40     3,292.80     3,526.80
E-6............................................    2,602.80     2,602.80     2,602.80     2,602.80     2,602.80
E-5............................................    2,193.30     2,193.30     2,193.30     2,193.30     2,193.30
E-4............................................    1,752.30     1,752.30     1,752.30     1,752.30     1,752.30
E-3............................................    1,468.50     1,468.50     1,468.50     1,468.50     1,468.50
E-2............................................    1,239.30     1,239.30     1,239.30     1,239.30     1,239.30
E-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:

``Sec. 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:

``Sec. 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:

``Sec. 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        8,000
``E-3.........................................       5,000        8,000
``E-2.........................................       5,000        8,000
``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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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

``Sec. 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.

``Sec. 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.

``Sec. 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.

``Sec. 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.

``Sec. 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.

``Sec. 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.

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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.

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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 of 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) by striking ``means'' 
                                and inserting ``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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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:

``Sec. 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
------------------------------------------------------------------------
                                    Installation or
             State                      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             $5,900,000
                                  Institute.
                                 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
                                 Fort Stewart/Hunter         $39,800,000
                                  Army Air Field......
Hawaii.........................  Kahuku Windmill Site.          $900,000
                                 Navy Public Works           $11,800,000
                                  Center, Pearl Harbor
                                 Pohakuloa Training           $6,600,000
                                  Facility............
                                 Wheeler Army Air            $50,000,000
                                  Field.
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            $58,300,000
                                  Ground.
                                 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          $7,600,000
                                  Range.
New York.......................  Fort Drum............       $56,350,000
North Carolina.................  Fort Bragg...........       $21,300,000
                                 Sunny Point Military        $11,400,000
                                  Ocean Terminal......
Oklahoma.......................  Fort Sill............        $5,100,000
South Carolina.................  Fort Jackson.........       $65,650,000
Texas..........................  Corpus Christi Army         $10,400,000
                                  Depot.
                                 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
                                                       -----------------
                                   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
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Area Support Group,         $36,000,000
                                  Bamberg...............
                                 Area Support Group,         $13,500,000
                                  Darmstadt.............
                                 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
                                                         ---------------
                                   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  $4,000
                                                        Location  ,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
                                          Fort Sam Houston...........  80 Units...................   $11,200,000
Korea...................................  Camp Humphreys.............  54 Units...................   $12,800,000
                                                                                                   -------------
                                                                         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
------------------------------------------------------------------------
                                     Installation or
             State                      location              Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air            $22,570,000
                                  Station, Yuma........
California.....................  Marine Air-Ground Task      $75,125,000
                                  Force Training
                                  Center, Twentynine
                                  Palms................
                                 Marine Corps Air             $4,470,000
                                  Station, Camp
                                  Pendleton............
                                 Marine Corps Base,          $96,490,000
                                  Camp Pendleton.......
                                 Naval Air Facility, El      $23,520,000
                                  Centro...............
                                 Naval Air Station,          $10,010,000
                                  Lemoore..............
                                 Naval Air Warfare           $30,200,000
                                  Center, China Lake...
                                 Naval Air Warfare           $13,730,000
                                  Center, Point Mugu,
                                  San Nicholas Island..
                                 Naval Amphibious Base,       $8,610,000
                                  Coronado.............
                                 Naval Construction          $12,400,000
                                  Battalion Center,
                                  Port Hueneme.........
                                 Naval Construction           $3,780,000
                                  Training Center, Port
                                  Hueneme..............
                                 Naval Station, San          $47,240,000
                                  Diego.
District of Columbia...........  Naval Air Facility,          $9,810,000
                                  Washington...........
Florida........................  Naval Air Station, Key      $11,400,000
                                  West.
                                 Naval Air Station,           $2,140,000
                                  Whiting Field, Milton
                                 Naval Station, Mayport      $16,420,000
                                 Naval Station,               $3,700,000
                                  Pensacola.
Hawaii.........................  Marine Corps Base,          $24,920,000
                                  Kaneohe..............
                                 Naval Magazine               $6,000,000
                                  Lualualei.
                                 Naval Shipyard, Pearl       $20,000,000
                                  Harbor.
                                 Naval Station, Pearl        $54,700,000
                                  Harbor.
                                 Navy Public Works           $16,900,000
                                  Center, Pearl Harbor.
Illinois.......................  Naval Training Center,      $82,260,000
                                  Great Lakes..........
Indiana........................  Naval Surface Warfare       $14,930,000
                                  Center, Crane........
Maine..........................  Naval Air Station,          $67,395,000
                                  Brunswick.
                                 Naval Shipyard,             $14,620,000
                                  Portsmouth...........
Maryland.......................  Naval Air Warfare            $2,260,000
                                  Center, Patuxent
                                  River................
                                 Naval Air Warfare            $5,100,000
                                  Center, St. Inigoes..
                                 Naval Explosive              $1,250,000
                                  Ordinance Disposal
                                  Technology Center,
                                  Indian Head..........
Mississippi....................  Naval Air Station,           $3,370,000
                                  Meridian.
                                 Naval Construction          $21,660,000
                                  Battalion Center,
                                  Gulfport.............
                                 Naval Station,               $4,680,000
                                  Pascaguola...........
Missouri.......................  Marine Corps Support         $9,010,000
                                  Activity, Kansas City
Nevada.........................  Naval Air Station,           $6,150,000
                                  Fallon...............
New Jersey.....................  Naval Weapons Station,       $4,370,000
                                  Earle................
North Carolina.................  Marine Corps Air             $4,050,000
                                  Station, New River...
                                 Marine Corps Base,          $67,070,000
                                  Camp Lejeune.........
Pennsylvania...................  Naval Foundry and           $14,800,000
                                  Propeller Center,
                                  Philadelphia.........
Rhode Island...................  Naval Station, Newport      $15,290,000
                                 Naval Underwater             $9,370,000
                                  Warfare Center,
                                  Newport..............
South Carolina.................  Marine Corps Air             $8,020,000
                                  Station, Beaufort....
                                 Marine Corps Recruit         $5,430,000
                                  Depot, Parris Island.
Tennessee......................  Naval Support                $3,900,000
                                  Activity, Millington.
Virginia.......................  Marine Corps Air             $3,790,000
                                  Facility, Quantico...
                                 Marine Corps Combat          $9,390,000
                                  Dev Com..............
                                 Naval Amphibious Base,       $9,090,000
                                  Little Creek.........
                                 Naval Station, Norfolk     $139,270,000
Washington.....................  Naval Air Station,           $7,370,000
                                  Whidbey Island.......
                                 Naval Station, Everett       $6,820,000
                                 Strategic Weapons            $3,900,000
                                  Facility, Bangor.....
                                                        ----------------
                                   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
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Greece.........................  Naval Support Activity      $12,240,000
                                  Joint Headquarters
                                  Command, Larissa......
                                 Naval Support Activity,      $3,210,000
                                  Souda Bay.............
Guam...........................  Naval Station, Guam....      $9,300,000
                                 Navy Public Works           $14,800,000
                                  Center, Guam.
Iceland........................  Naval Air Station,           $2,820,000
                                  Keflavik.
Italy..........................  Naval Air Station,           $3,060,000
                                  Sigonella.
Spain..........................  Naval Station, Rota....      $2,240,000
                                                         ---------------
                                   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................................  Marine Corps Air Station,    51 Units..................      $9,017,000
                                          Yuma......................
California.............................  Marine Air-Ground Task       74 Units..................     $16,250,000
                                          Force Training Center,
                                          Twentynine Palms..........
Hawaii.................................  Marine Corps Base, Kaneohe.  172 Units.................     $46,996,000
                                         Naval Station, Pearl Harbor  70 Units..................     $16,827,000
Mississippi............................  Naval Construction           160 Units.................     $23,354,000
                                          Battalion Center, Gulfport
Virginia...............................  Marine Corps Combat          60 Units..................      $7,000,000
                                          Development Command,
                                          Quantico..................
Italy..................................  Naval Air Station,           10 Units..................      $2,403,000
                                          Sigonella.................
                                                                                                 ---------------
                                                                        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
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $34,400,000
Alaska.........................  Eareckson Air Force          $4,600,000
                                  Base.
                                 Elmendorf Air Force         $32,200,000
                                  Base.
Arizona........................  Davis-Monthan Air Force     $23,500,000
                                  Base..................
                                 Luke Air Force Base....      $4,500,000
Arkansas.......................  Little Rock Air Force       $18,100,000
                                  Base..................
California.....................  Beale Air Force Base...      $7,900,000
                                 Edwards Air Force Base.     $16,300,000
                                 Los Angeles Air Force       $23,000,000
                                  Base.
                                 Travis Air Force Base..     $10,100,000
                                 Vandenberg Air Force        $11,800,000
                                  Base.
Colorado.......................  Buckley Air Force Base.     $23,200,000
                                 Schriever Air Force         $30,400,000
                                  Base.
                                 United States Air Force     $25,500,000
                                  Academy...............
Delaware.......................  Dover Air Force Base...      $7,300,000
District of Columbia...........  Bolling Air Force Base.      $2,900,000
Florida........................  Cape Canaveral Air           $7,800,000
                                  Force Station.........
                                 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..........................  Mountain Home Air Force     $14,600,000
                                  Base..................
Kansas.........................  McConnell Air Force          $5,100,000
                                  Base.
Louisiana......................  Barksdale Air Force          $5,000,000
                                  Base.
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          $4,650,000
                                  Base.
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        $7,800,000
                                  Base.
Ohio...........................  Wright-Patterson Air        $28,250,000
                                  Force Base............
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         $12,200,000
                                  Base.
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          $2,800,000
                                  Base.
                                 McChord Air Force Base.     $20,700,000
Wyoming........................  F. E. Warren Air Force      $10,200,000
                                  Base.
                                                         ---------------
                                   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
------------------------------------------------------------------------
                                     Installation or
            Country                      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,            $11,300,000
                                  Lakenheath.
                                 Royal Air Force,            $22,400,000
                                  Mildenhall.
Wake Island....................  Wake Island............     $25,000,000
                                                         ---------------
                                   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..................................  Mountain Home Air Force      56 Units..................     $10,000,000
                                          Base......................
Louisiana..............................  Barksdale Air Force Base...  56 Units..................      $7,300,000
South Dakota...........................  Ellsworth 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
                                                                                                 ---------------
                                                                        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
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Laurel Bay, South           $12,850,000
                                  Carolina..............
                                 Marine Corps Base, Camp      $8,857,000
                                  LeJeune, North
                                  Carolina..............
Defense Logistics Agency.......  Defense Distribution        $30,000,000
                                  Depot, Tracy,
                                  California............
                                 Defense Distribution,       $19,900,000
                                  New Cumberland,
                                  Pennsylvania..........
                                 Eielson Air Force Base,      $8,800,000
                                  Alaska................
                                 Fort Belvoir, Virginia.        $900,000
                                 Grand Forks Air Force        $9,110,000
                                  Base, North Dakota....
                                 Hickam Air Force Base,      $29,200,000
                                  Hawaii................
                                 McGuire Air Force Base,      $4,400,000
                                  New Jersey............
                                 Minot Air Force Base,       $14,000,000
                                  North Dakota..........
                                 Philadelphia,                $2,429,000
                                  Pennsylvania..........
                                 Pope Air Force Base,         $3,400,000
                                  North Carolina........
Special Operations Command.....  Aberdeen Proving             $3,200,000
                                  Ground, Maryland......
                                 CONUS Classified.......      $2,400,000
                                 Fort Benning, Georgia..      $5,100,000
                                 Fort Bragg, North           $33,562,000
                                  Carolina..............
                                 Fort Lewis, Washington.      $6,900,000
                                 Hurlburt Field, Florida     $13,400,000
                                 MacDill Air Force Base,     $12,000,000
                                  Florida...............
                                 Naval Station, San          $13,650,000
                                  Diego, California.....
TRICARE Management Activity....  Andrews Air Force Base,     $10,250,000
                                  Maryland..............
                                 Dyess Air Force Base,        $3,300,000
                                  Texas.................
                                 F.E. Warren Air Force        $2,700,000
                                  Base, Wyoming.........
                                 Fort Hood, Texas.......     $12,200,000
                                 Fort Stewart/Hunter         $11,000,000
                                  Army Air Field,
                                  Georgia...............
                                 Holloman Air Force           $5,700,000
                                  Base, New Mexico......
                                 Hurlburt Field, Florida      $8,800,000
                                 Marine Corps Base, Camp     $15,300,000
                                  Pendleton, California.
                                 Marine Corps Logistics       $5,800,000
                                  Base, Albany, Georgia.
                                 Naval Air Station,           $6,600,000
                                  Whidbey Island,
                                  Washington............
                                 Naval Hospital,              $1,600,000
                                  Twentynine Palms,
                                  California............
                                 Naval Station, Mayport,     $24,000,000
                                  Florida...............
                                 Naval Station, Norfolk,     $21,000,000
                                  Virginia..............
                                 Schriever Air Force          $4,000,000
                                  Base, Colorado........
Washington Headquarters          Pentagon Reservation,       $25,000,000
 Services......................   Virginia..............
                                                         ---------------
                                   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
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Aviano Air Base, Italy.      $3,647,000
                                 Geilenkirchen AB,            $1,733,000
                                  Germany...............
                                 Heidelberg, Germany....      $3,312,000
                                 Kaiserslautern, Germany      $1,439,000
                                 Kitzingen, Germany.....      $1,394,000
                                 Landstuhl, Germany.....      $1,444,000
                                 Ramstein Air Force           $2,814,000
                                  Base, Germany.........
                                 Royal Air Force,            $22,132,000
                                  Feltwell, United
                                  Kingdom...............
                                 Vogelweh Annex, Germany      $1,558,000
                                 Wiesbaden Air Base,          $1,378,000
                                  Germany...............
                                 Wuerzburg, Germany.....      $2,684,000
Defense Logistics Agency.......  Anderson Air Force          $20,000,000
                                  Base, Guam............
                                 Camp Casey, Korea......      $5,500,000
                                 Naval Station, Rota,         $3,000,000
                                  Spain.................
                                 Yokota Air Base, Japan.     $13,000,000
Office Secretary of Defense....  Comalapa Air Base, El       $12,577,000
                                  Salvador..............
TRICARE Management Activity....  Heidelberg, Germany....     $28,000,000
                                 Lajes Field, Azores,         $3,750,000
                                  Portugal..............
                                 Thule, Greenland.......     $10,800,000
                                                         ---------------
                                   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..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,998,000
                                                                    units)......................
Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                    units)......................
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                    units)......................
Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                         Force Base..............   units)......................
----------------------------------------------------------------------------------------------------------------

                          Army National Guard: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Massachusetts.........................  Westfield................  Army Aviation Support              $9,274,000
                                                                    Facility....................
South Carolina........................  Spartanburg..............  Readiness 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..............................  Fort Meade...............  Family Housing Construction        $7,900,000
                                                                    (56 units)..................
----------------------------------------------------------------------------------------------------------------

                                 Navy: Extension of 1998 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
California............................  Naval Complex, San Diego.  Replace Family Housing (94        $13,500,000
                                                                    units)......................
California............................  Marine Corps Air Station,  Family Housing Construction       $28,881,000
                                         Miramar.................   (166 units).................
Louisiana.............................  Naval Complex, New         Replace Family Housing (100       $11,930,000
                                         Orleans.................   units)......................
Texas.................................  Naval Air Station, Corpus  Family Housing Construction       $22,250,000
                                         Christi.................   (212 units).................
----------------------------------------------------------------------------------------------------------------

                               Air Force: Extension of 1998 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (180       $20,900,000
                                                                    units)......................
----------------------------------------------------------------------------------------------------------------

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:

``Sec. 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).

                    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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

                       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.

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.

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.

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.

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.

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.

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:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   Authorization                       2002
                                                                                   2002 request   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:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   authorization                       2002
                                                                                   2002 request   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:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   authorization                       2002
                                                                                   2002 request   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:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   authorization                       2002
                                                                                   2002 request   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:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   authorization                       2002
                                                                                   2002 request   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:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                                 -------------------------------
                                                                    2001 limit                         2002
                                                                                   2002 request   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 attaches (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 attaches 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 
        Operation Caper Focus.................................      4.0 
        Southwest Border Fence................................      5.0 
  Decreases:
        AWACs Tactical Operations Support.....................      2.5 
        Counter-drug Tanker Operations Support................      1.0 
        E-2 Support...........................................      1.0 
        Peru Riverine Program.................................      5.0 
        Tracker Aircraft......................................      2.0 
        Research, Development, Test & Evaluation..............      4.0 
        Patrol Coastals.......................................      1.5 
        Tethered Aerostat Radar System........................      8.0 
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.

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:

                     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.

                                  

```