4

personal Property

* What is DoD’s philosophy and goal for personal property? Section 4.1

> what is personal property? Section 4.1

* How, when, and why is personal property inventoried? Section 4.2

w How is the LRA involved in identifying personal property it needs? Section 4.3

w How is personal propetty transferred? Can it be obtained at discount? Section 4.4

+ Are there {imitations or conditions on transferred personal property? Section 4.4

+ Can personal property be resold once it is transferred? Section 4.4

s- Can the Milfiary Department provide substitute personal propeq? Section 4.5

> what is DoD’s geneml guidance regarding emission rights? Section 4.6

4.1

4.1.1

lNTRODtJCTlON

Philosophy and goal 1! What b DoD’s

The Department of Defense realizes that the manner in which personal property II philosophy and goal

is disposed of at a closing base can have an important impact on the local for personal

community’s prospects for economic recovery. The communities should also property?

realize that some personal property on the base is needed for the Military

Department to carry out its mission. In making decisions on the disposal of

personal property, the Military Departrrmt should strive to find the best use for

the property while making every reasonable effort to assist the LR4 in obtaining

the available personal property needed to implement its redevelopment plan.

The needs of the Military Department should be balanced against the needs for

community redevelopment.

4.1.2 Definition of personal property II What is personal

Personal property includes all property except land and fixed-in-place buildings, property?

naval vessels, and records of the Federal Government.

4.1.3 General practice

Personal property is often useftd to the redevelopment of real property, but is

also important to the functioning of the military mission. Figure 4-1 shows the

general practice by which personal property is identified for reuse and

subsequently disposed of at a closing base. This process can be summarized as

follows:

December 1997 4-1
Mililary Department, in

conaultatlon with LRA

D

Locale and

consolidate records

Inventory facilities

Determine availability,

using crileria

Military Department

=

‘eds’nhte ‘ne’$b’e

dws not include

ordinary fixlures)

Military Department, In

consultation with LRA

Military Department, In

consultation with LRA

u

Conduct walk-through

Idenliiy items with

reuse potential and

“not needed’ items

Military Department Military Department

~ ~

--T=-JIP’----J

Itern!”nol

idenlilied for I I

reuse by LRA

1

LRA I

Identify personal

property in reuse plan

Prepare and submit

application(s)

I

Military Department Miliiary Department

Make final personal Transfer to LRA or

properly disposition ottwr reuser

+ decisions +

\

I

I

~

NAF Property Owner(s) LRA NAF Property Owner(s) Mititary Department

Report to DRMO for

redistrilxrlion, donatirm

> or sale

-1
DoD Base Reuse Imdementation Manual

. The installation commander will, in consultation with the LIU, inventory the

personal property at the installation no later than six months after the date of

closure or realignment approval, and prepare usable inventory records. This

will help the LRA identify assets with reuse potential. Property items will be

generally identified as either available for reuse, or not available for reuse.

● LRA consultation should include a walk-through of the base so that LRA

officials can view available personal property and should continue during

redevelopment planning. The Military Departments will be sensitive to the

planning needs of the LRA and will not move ordinary fixtures and other

property that are likely to be suitable for reuse during redevelopment

planning. However, personal property necessary to meet specific military

requirements or non-Military Department-owned property is subject to offbase relocation.

. The Military Department should advise the LRA to identify in its

redevelopment plan the property necessary for the effective implementation

of the plan. Personal property maybe conveyed to an LRA or other reapients

under various authorities, including an EDC. The LR4 may separately

negotiate with non-appropriated fund (NAF) instrumentalities for NAFowned property.

. Payment for personal property maybe at or below fair market value, or may

beat no cost, depending on the conveyance authori~ used. Purchases of

NAF-owned property maybe negotiated between the NAF property owner(s)

and the LRA.

. The basic steps in this procedure and the party(ies) principally responsible for

each are shown in Figure 4-1. The procedure depicted has been compiled

from Military Department-specific practices, but may be executed somewhat

differently at a particular BRAC installation.

4.2 PERSONAL P ROPERTY INVENTOR Y

4.2.1 Inventory requirement

T’he installation commander at a closing or realigning base must conduct an

inventory of ~ property owned by the Department of Defense on the

installation, including any non-contiguous parcels of property to be disposed of

in conjunction with the main site, within six months after the approval date of

closure or realignment. The goal of the inventory is to identify, as early as

possible, personal property that will be made available to the LRA for reuse

planning purposes, as well as property that maybe relocated. To facilitate this

process, the installation commander, with input from tenant commanders, if

applicable, is required to identify items of personal property that are:

● Needed to support a military mission.

. Needed to support the LR4’s redevelopment plan.

. Ordinary fixtures.

When should

personal propeRy be

inventoried?

Why is it necessary?

Who is responsible

for the inventory?

December 1997 4-3
Personal ProDertv

● Available for redistribution within or outside of the Department of Defense.

What’s the personal

property inventory

procedure?

What inventory

categories should

be used?

What about

non-accountable

items ?

4.2.2 Procedure

Personal property records should be assembled and made available as soon as

possible after the date of approval. This activity should be followed by a

physical inspection and count, where necessary, to determine the condition and

quantity of personal property that will be made available to the LR4 for reuse

planning purposes. The personal property inventory should be performed under

the direction of the installation commander, with input from tenant commanders,

if applicable, in consultation with the LRA. The inventory should:

. Include all DoD tenant organizations including the National Guard and

Reserves, if applicable (see Section 4.2.4).

. Exclude non-DoD tenant organizations and transient property (e.g., other

Federal Agency offices, General Services Administration (GSA) vehicles,

contractor equipment), property located on any portion of the base retained

by DoD and not related to the productive capaaty or minimum maintenance

requirements of the installation, and NAF-owned property.

. Identify personal property as available for reuse, or not available for reuse.

Fixtures shall be identified as available for reuse (see also Section 4.2.3).

If installation personal property records and inventones are not k an easily

usable format, the installation commander should consider creating simplified

personal property inventory summaries for use by the LRA and others. The

Military Departments will keep copies of all shipping records, transfer orders

and other records associated with all transfers of personal property.

4.2.3 Personal prope~ categories

The following descriptions and categories of personal property are provided to

facilitate LRA and Military Department dialogue during the redevelopment

plarming period. This information is also provided to help installation and

tenant commanders determine items of personal property that will be made

available to the LRA for redevelopment purposes. Personal property will be

identified according to the following categories:

● Available for reuse and not available for reuse. Both accountable and nonaccountable personal property will be initially identified as either available

for reuse or not available for reuse. This identification will be made by the

installation commander or tenant comman der, depending on what entity

owns the property, in consultation with the LRA. Except for specifically

exempted items (see also Section 4.2.4), personal property may be identified

as available for reuse at any time during the redevelopment planning

process. Personal property can only be identified as being not available for

reuse if it meets the criteria provided in Section 4.2.4.

. Ordinary fixtures. This category includes items commonly referred to as

fixtures in typical real estate transactions. It includes, but is not limited to,

such items as blackboards, sprinklers, lighting fixtures, electrical and

plumbing systems, built-in furniture, fuse boxes, etc.

44 December 1997
DoD Base Reuse Implementation Manual

. Not needed for redevelopment. After the inventory and LRA consultation

(see Section 4.3), the inventory list or other identification records maybe

updated to include items not needed for redevelopment (see also Section

4.2.4). Items initially identified as being not available for reuse or not

needed for redevelopment need not be included on a detailed inventory list.

This determination can be made at any time.

● Status under disagreement. If the installation commander or tenant

commander and the LRA cannot agree on an item’s category, the item will be

included in the detailed invento~ list and identified as status under

disagreement until resolved by the process described in Section 4.3.1.

Additionally, all personal property is either accountable or non-accountable.

This distinction affects the level of detail required for the inventory records to be

provided to the LRA.

●

●

●

Accountable personal property. Property for which a continuously updated

itemized inventory is mai-ttained. Inventorying accountable property should

be straightforward, using installation inventory procedures and records.

Non-accountable personal property. Property for which an updated

itemized inventory is not maintained. For example, some office furnishings

(e.g., desks, chairs, file cabinets) and consumables (e.g., paper, pencils) not

physically attached to the buildings are non-accountable. All non-accountable

personal property determined to be available for reuse should be

inventoried. Consumables do not have to be included, however. The level of

detail of inventory information to be provided to the LR4 should be

determined by the installation or tenant comrnan der in consultation with the

LRA. Non-accountable personal property maybe inventoried on a gross basis

by facility, and provided to the LRA in summary format, as illustrated below:

— Bachelor Officers’ Quarters (BOQ)-25 rooms and offices, furnished.

— Administration Building-10 offices, furnished.

Unserviceable but repairable. Certain items of personal property maybe in

unserviceable but repairable condition. These items should be specifically

noted on the inventory record, including any safety precautions that apply.

Note that all personal property will be conveyed to the LRA or recipient “as-is”

and will not be repaired by the Military Department or Defense Agency,

regardless of condition at the time of conveyance.

4.2.4 Eligibility criteria for personal property items identified as “not

available for reuse” or “not needed for redevelopment”

The installation or tenant commander may initially identify items as not

available for reuse if they meet one of the following seven criteria:

● The property, other than ordinary fixtures, is required for the operation of a

transferring unit, function, component, weapon, or weapon system. This

category includes property belonging to a unit or activity relocating to

another installation where equivalent property does not exist, and for which

What criteria

determine personal

prope~ to be “not

available for reuse”

or “not needed for

redevelopment?”

December 1997 4-S
Personal Prope*

●

●

●

●

●

●

relocation is cost-effective. For example, a unit being transferred to another

location may take with it any property it needs to function properly as soon as

it arrives at its new location.

The property is required for the operation of a unit, function, component,

weapon, or weapon system at another installation within the Military

Department or Defense Agency. Property in this category can only be

categorized as “not available for reuse” after the Military Department or

Defense Agency has consulted with the LRA. With respect to disputed items,

the approval of an Assistant Secretary of the Military Department or

appropriate Defense Agency official is required.

The property is uniquely military in character and is likely to have no

civilian use (other than use for its material content or as a source of

commonly used components). Such property includes classified items;

nuclear, biological, chemical items, weapons and munitions; museum-owned

property, military heritage property, and items of significant historic value

that are maintained or displayed on loan from a museum or other entity; and

similar military items.

The property is stored at the installation for distribution. This catego~

includes spare parts or stock items; e.g., materials or parts used in a

manufacturing or repair function, but does not include maintenance spare

parts for equipment that will be left in place. This categoxy includes supplies

and property stored for purposes of distribution and/or maintenance

(including spare parts, consumables or stock iterns), except for those items

needed for maintenance of equipment left in place.

The property meets the known requirements of an authorized program of

another Federal Department or Agency that would otherwise have to

purchase similar items, and the property has been requested in writing by

the head of the Department or Agency. If the authority to acquire personal

property has been delegated, a copy of the delegation must accompany the

request. The requesting Federal Department or Agency must pay packing,

crating, handling, and transportation charges associated with such transfers of

personal property.

The property is needed elsewhere in the national security interest of the

United States, as determined by the Secretary of the Military Department or

Director of the Defense Agency concerned. This authority may not be

delegated below the Assistant Secretary level or equivalent. In exercising this

authority, the Secretary or Director may transfer the property to any DoD

entity or other Federal Agency.

The property belongs to non-appropriated fund (NAF) instrumentalities or

other non-D-efense Departmen~ entities. This category includes property

purchased with funds generated by Government employees and their

dependents for religious; morale, welfare or recreational activities; post

exchanges; ship stores; military officer or enlisted clubs; or veterans’ canteens.

This property is not owned by the Military Department. The following three

subcategories merit further explanation

4-6 December 1997
DoD Base Reuse Implementation Manual

— Notz-DoD personal property. DoD does not own certain iterns of personal

property (e.g., it belongs to a lessee renting space on the active

installation). Thus, it is outside of the Military Department’s or Agency’s

control, and cannot be identified as being available for reuse. Unless

specific arrangements are otherwise made, this property will not be subject

to availability for planning purposes or for transfer to the LRA or any

other recipient.

— NAF property. The Military Department should advise the LRA to make

arrangements to purchase NAF property (including negotiating the

purchase price) directly with the NAF property owner as early in the

redevelopment planning process as possible.

— State-owned National Guard-used property. At bases hosting National

Guard units, some items of personal property may have been purchased

with State funds. Items demonshably identified as being purchased with

State funds are not available for reuse planning or subject to bzmsfer for

redevelopment purposes, unless so identified by the State property officer.

However, certain items of personal property used by National Guard units

at closing bases have been purchased with Federal funds. These items are

subject to inventory and maybe made available for redevelopment

planning purposes.

Only those items of personal property meeting the following criterion, maybe

identified as personal property not needed for redevelopment:

. The property is not required for the reutilization or redevelopment of the

installation. This determination must be made by the Military Department or

Defense Agency in consultation with the LRA. This determination will not

generally be made until one of the following occurs:

—

—

—

4.3

4.3.1

The LRA indicates that it does not need the property (e.g., during the

installation walk-through).

The LRA does not include the property in its redevelopment plan.

The LRA indicates that it will not submit a redevelopment plan.

REQUIRED LRA CONSULTATION

Initial LRA consultation

Consultation between the installation commander and the LRA is required

throughout the redevelopment planning period. The following guidelines

should be used to facilitate personal property consultation.

. Consult early. The installation commander or designate and applicable

tenant commanders should coordinate personal-property-related decisions

with the LRA early in the redevelopment planning process. The DoD Base

Transition Coordinator will participate in this consultation.

II What about the

personal property

DoD doesn’t OW/7?

How should the LRA

be involved?

Who consults with

the MA?

When should the

LRA be consulted?

December 1997 4-7
Personal Property

What if an LRA

disagrees moth an

installation or tenant

commander’s

decision on personal propetiy?

●

●

●

●

Provide a usable inventory record. The installation commander or designate

will provide a usable inventory record to the LRA. The level of detail for this

record should be determined in consultation with the LRA. This record

should help the LRA to identify the personal property to support its

redevelopment plan. All property should be identified. However, property

to accompany a realigning unit need be only broadly identified.

Offer a walk-through. As part of the personal property inventory and

consultation process, the installation commander or designate should invite

the LRA to walk through the installation. This can take place concurrently

with the personal property inventory (see Figure 41), and will assist the LlU3

in determiningg the type(s) and condition(s) of the personal property listed on

the inventories. The walk-through will also help the LRA identify items of

personal property it wants to include in the redevelopment plan.

Identify items available for reuse. The installation commander and

applicable tenant commanders should identify personal property with the

potential to support the redevelopment of the installation including ordinary

fixtures. The identification of available items should be made to the LFU4

following the inventory and should be updated, as necessary.

Resolve disagreements as they arise. Personal property disposal is at the

discretion of the Military Department or Defense Agency, but decisions

should be made in consultation with the LRA. Lf the LRA disagrees with an

installation commander or tenant commander’s decision regarding the

personal property that will be made available for reuse, the LR4 may seek to

resolve its disagreement within the property-owning Military Department or

Defense Agency’s chain of command. Input from the LRA should be

considered when resolving disagreements.

— The Military Department or Defense Agency should strive to respond

within 30 days to all requests by the LRA to reconsider an issue related to

personal property availability or disposal decisions made by the

installation commander or tenant commander.

— Final authority for resolving personal property issues rests with the

Military Department or Defense Agency having jurisdiction over the

property.

4.3.2 Follow-up LRA consultation

The installation commander or designate and applicable tenant commanders will

continue to consult with the LRA throughout the redevelopment planning

period. The objectives of further consultation are:

. To make sure the LRA knows which items of personal property are available

to it for incorporation in its redevelopment plan, and which items are being

relocated off-base or disposed of by other means.

● To allow for timely disposal of personal property identified by the ~ as not

being needed for its redevelopment planning.

4-8 December 1997
DoD Base Reuse Implementation Manual

4.3.3 Off-base movement of personal property

Throughout the mission drawdown period, the installation commander or

designate and applicable tenant commanders will ensure that, with the exception

of items identified as not available for reuse or not needed by the community

(see Section 4.2.4), and any unserviceable items to be reported to the Defense

Reutilization and Marketing Office (DRMO), the personal property will remain at

the installation until a time that is determined by the installation comrnander or

tenant commander in consultation with the LR4.

. Typically, the Military Departments and Defense Agencies will move

personal property to another base only when it makes economic sense to do

so. A cost-benefit analysis maybe employed at any time by the installation

commander, tenant commander, or designate as a tool in reaching a decision

to move accountable and non-accountable personal property.

● Items identified as not available for or not needed by the community (see

Section 4.2.4) may be moved off base at the discretion of the Military

Department or Defense Agency. This movement will not typically occur

before the installation commander or designate and/or applicable tenant

commander informs the LRA of the impending property movement and

makes sure the LRA understands why the property is to be moved. If the

LIU4 disagrees with an installation commander or tenant commander’s

decision regarding the off-base movement of personal property, the LRA may

request reconsideration of the move within the property-owning Military

Department or Defense Agency’s chain of command (see Section 4.3.1).

● Items identified by the installation commander or tenant commander as

unserviceable may be reported to DRMO at any time. No consultation with

the LRA is required, but a courtesy notice to the LRA should be given

whenever possible.

4.4 PERSONAL P ROPERTY T RANSFER M ETHOD S

4.4.1 Principal authorities affecting personal property transfers

(See Appendix A, Laws and Regulations A#ecting Base Reuse Implementation, for a

summary of legal authorities).

. 32 CFR Parts 175 and 176 (Economic development conveyances to LFWs and

homeless assistance conveyances to LIL4s or homeless providers).

● 41 CFR Part 101-47.308 (Special disposal provisions for public airports;

historic monuments; education and public health uses; shrines, memorials or

religious uses as part of another public benefit conveyance; public park or

recreation uses; housing for displaced persons; and non-Federal correctional

facility uses).

. 41 CFR Part 101-47.304 (Negotiated sales and public sales).

● 41 CFR Part 101+I3 (Utilization of personal property).

Can personal

prope~ be moved

oti base while the

LRA is planning for

reuse?

II What authorities

affect personal

property transfers?

● 41 CFR Part 101-44 (Donation of personal property).

December 1997 4-9
How will personal

prope~ be

transferred? II

How will personal

property be

transferred to

homeless assistance providers?

41 CFR Part 101-45 (Sale, abandonment, or destruction of personal property).

Stevenson-Wydler Technology Innovation Act of 1980, P.L. 96-480, as

amended (15 U.S.C. 3710(i)) (Donation of research equipment to educational

institutions and non-profit organizations).

Executive Order 12999 (Donation of personal property; e.g., computers, to

further math and science education).

4.4.2 Lease s

Personal property associated with a lease will typically be included in the

leasehold (see Chapter 5 of this Manual for additional information on leasing).

4.4.3 Public airport conveyances

Surplus personal property may be transferred as part of an airport conveyance.

Persoml property that is desirable for developing, improving, operating, or

maintaining a public airport or is needed for developing sources of revenue from

non-aviation businesses at a public airport (and the interest is not best suited for

industrial use) can be transferred by the Military Department by gift. The

Federal Aviation Administration (FAA) must approve all public airport transfers.

4.4.4 Public benefit conveyances and similar approved, sponsored, or

requested conveyances

When personal property is required for the reuse of real property subject to a

public benefit conveyance (PBC), the personal property maybe related and

treated as part of the real property conveyance. These transfers can be further

categorized as follows:

Sponsored public benefit conveyances. These include PBCS for education,

public health, public park or recreation, and port facility purposes. Surplus

personal property may be transferred by the sponsoring Federal Agency in

accordance witA its rules implementing its authorized programs. The terms and

conditions attached to the reuse and the value (or the discount allowed) of the

personal property are determined by the Federal sponsoring Agency. In this

type of conveyance, the Military Deparbnent assigns the real, related, and other

qualifying related personal property to the Federal sponsoring Agency for

transfer to the sponsored applicant.

Approved public benefit conveyances. These include PBCS for non-Federal

correctional facilities, historic monuments, and power transmission lines. The

terms and conditions attached to the reuse are determined by the Military

Department. The Military Department transfers the qualifying personal property

directly to the approved PBC recipient.

4.4.5 Homeless assistance conveyances

Personal property may be transferred to an LRA or to a homeless assistance

provider for homeless assistance purposes under the Base Closure Community

Redevelopment and Homeless Assistance Act of 1994 (see also Chapter 3 of this

Manual). Property transferred under this authority may be used by a homeless

assistance provider either on or off the installation.

4-10 December 1997
DoD Base Reuse Implementation Manual

After providing the LRA with the personal property inventory, the installation

commander or designate should recommend to the L&4 that the following

strategy be used for identifying and transferring personal property intended for

use by homeless assistance providers:

. Coordinate with the proposed provider(s) to identify any personal property to

be conveyed.

. Incorporate the agreed-to disposition of any identified personal property in

any binding contract(s) negotiated between the LR4 and any selected

homeless provider(s).

s Include identification and intended use of the personal property in the

homeless assistance portion(s) of the adopted redevelopment plan.

4.4.6 Economic development conveyances

G ENERAL INFORMATIO N

II How is personal

● Under an Economic Development Conveyance (EDC), the Military property included in

Department can convey land and buildings to the LRA for consideration at or

below fak market wdue, at no cost, or for other consideration that may be

subject to recoupment. Such conveyances can be made when the Military II

Department determines that the installation, or significant portions of it,

cannot be conveyed under other authorities to rapidly create new jobs.

Personal property may be transferred as part of an EDC of the real property

(see also Chapter 7 of this Manual).

. Personal property may also be transferred without real property under a

separate EDC, referred to in this Manual as a “Personal Property EDC,” if

(1) the transfer is necessary for the effective implementation of the

redevelopment plan for the installation, and (2) carmot be transferred under

other authorities. However, by completing an application in which the

personal property is identified using inventory information already provided

to the I&4 by the Military Department (e.g., inventory summaries), Personal

Property EDCs are relatively straightforward to execute.

. Personal Property EDCS can be made only to the LR4.

● Personal Property EDCS are not subject to the provisions of the Federal

Property and Administrative Services Act of 1949 (40 U.S.C. $$ 483-484),

which governs property disposal.

. To approve a Personal Property EDC, the Military Department must provide

an explanation why the transfer cannot be carried out in accordance with the

other personal property conveyance authorities listed in this Chapter.

. Personal property may not be acquired by the LIU4 under an EDC solely for

the purpose of immediately leasing or re-selling it to finance base reuse.

However, the LRA may provide the property to others for use in accordance

with the redevelopment plan for the installation.

an economic

development

conveyance ?

Does personal

property in an EDC

always have to be

conveyed with real

property?

When should a

Personai Propetiy

EDC be used?

December 1997 4-11
Personal Property

APPLYING FOR A PERSONAL PROPERTY EDC

This subsection describes the process by which an W can apply for a separate

(from real property) Personal Property EDC.

The Personal Property EDC application should be comprehensive with regard to

any and all property requested at the installation. It should also explain why a

Personal Property EDC is necessary for economic redevelopment and job

creation. It will probably be necessary for the LRA to ask the Military

Department for assistance while completing the transfer order described below.

If necessary, the Military Department may ask the LRA for additional

information. The application should contain the following elements:

● A narrative including the fo~owing:

— Identification of the personal property requested. Copies of the personal

property inventories prepared for the LILA’s use, as described in

Section 4.1, may be used to identify the personal property requested. This

list may be amended during the redevelopment planning process, as long

as the use of the additional property is consistent with the overall

economic redevelopment goals described in the application package.

— A statement of how a Personal Property EDC will support the

installation’s redevelopment.

● A statement describing why other authorities, including sale or donation,

cannot be used to acquire the personal property.

● If the transfer is requested for less than fair market value, a statement

justifying why a discount should be provided. The inventory record will state

the Standard Cost of the property. The Military Department will estimate the

fair market value of the property for the purposes of the transaction.

● A statement of the LIL4’s legal authority to acquire the personal property.

After receiving the application, it will be subject to Military Department review,

using criteria similar to those for real property EDCS. These criteria are fully

described in Chapter 7 of this Manual.

After an application is approved, a completed Transfer Order for Surplus

Personal Property at a Closing or Realigning Installation (which can be found at

the end of this Chapter), should be prepared under the direction of the

installation commander in consultation with the LIU Copies of the personal

property inventories prepared for the LRA’s use, as described in Section 4.1, may

be attached to the Transfer Order. The Transfer Order will state the Standard

Cost of the property.

Are there conditions II C ONDITIONS PLACED ON P ERSONAL P ROPERTY EDC S

on Personal At a minimum, the Military Department shall place the following conditions and

Property EDCS? limitations on personal property transferred under an EDC.

4-12 December 1997
DoD Base Reuse lmrYementation Manual

● The LRA must make an application for personal property within the

application period established by the Military Department. This period may

begin after the Military Department receives an adopted redevelopment plan

and may conclude as soon as 90 days later.

. The Military Department can require the LIL4 to take custody of and become

accountable for the requested personal property 60 days after receiving notice

that the application for personal property has been approved by the Secretary

of the Military Department.

● The Military Department may screen personal property for military

reutilization and report any surplus items to the DRMO for screening and

disposal if the LRA decides not to accept the personal property.

● The Military Department and the LIVI are not required to account for a nonaccountable item with a Standard Cost of less than $500. The Military

Department is, however, required to provide an estimate of the total value of

all such items. Office furniture with a Standard Cost of more than $300 is

considered accountable.

● Non-accountable items with an individual Standard Cost of less than $500

may be accounted for in aggregate if the total value of all like items with a

remaining economic or serviceable life of more than three years is greater than

$5,000.

● The use of personal property must support base redevelopment. The

redevelopment plan should generally identify how the property will be used.

● A recipient LRA shall certify its compliance with the conditions of the transfer

of personal property. These certifications will be made at the end of each

calendar year and may be subject to random audits by the Government.

. As a general rule, the Military Departments will restrict the LRA’s ability to

acquire personal property at less than fair market value solely for the purpose

of leasing or reselling it. This limitation, however, does not preclude the LIU4

from subsequently leasing or selling personal property to entities who will

place it into productive use in accordance with the redevelopment plan for the

installation.

. Typically, if the Military Department leases or sells an item of personal

property for less than fair market value, or leases or conveys an item of

personal property under a no-cost EDC, it will require the LR4 to use or hold

that item for one year. If the item is valued at more than $5,000, the LRA

must use or hold that item for two years.

● Any proceeds from subsequent leases or sales of usable items must be used to

pay for protection, maintenance, repair, or redevelopment of the base.

Can the LRA lease

or sell the personal

prope~ acquired

under a Personal

Prope~ EDC?

These restrictions will be a condition of lease, sale, or transfer of the personal

property transferred under an EDC.

December 1997 4-13
What other ways can

personal property be

transferred? II

4.4.7 Negotiated sales of related personal property to public entities

Under a negotiated sale, related personal property should be valued with the

realty as an economic unit. Negotiated sales, however, are at no less than fair

market value.

4.4.8 Public sales of personal property with real property

Under a public sale, personal property is sold and conveyed as an economic unit

with the realty to the highest bidder at no less than fair market value. The

Federal disposal agent is not obligated to accept less than fair market value bids.

4.4.9 Leases in furtherance of conveyance

Personal property associated with a lease in furtherance of conveyance (as

defined in Chapter 5 of this Manual) will typically be conveyed to the recipient at

the inception of the lease.

4.4.10 Special transfer categories

N O N- APPROPRIATED F UND (NAF) PERSONAL PROPERT Y

If the NAF personal property owner(s) makes personal property available for

disposal, the LR4 or other interested parties may negotiate purchase terms

directly with the property owner.

D EFENSE W ORKING C APITAL F UND (DWCF) EQUIPMEN T

Available equipment of this type is sold at fair market value unless:

● It is included in an EDC to the LRA.

. It is determined to be related personal property and valued with the real

property (e.g., shop equipment or dry dock cranes).

. The Military Department determines the DWCF equipment has an actual cash

value below $500 per item, with all like items having a total value of less than

$5,000.

. The Military Deparbnent determines a no-cost or discounted conveyance is

desirable. Below-cost conveyances for DWCF equipment having an original

cost of more than $25,000 must be accompanied by a written justification

approved by the Secretary of the Military Department.

4.4.11 Sale and donation of surplus personal property

Personal property not needed by the LRA in support of its redevelopment plan

can be redistributed within the Military Department. If it is not claimed by the

Military Deparhnent, it will be reported to the DRMO, the DoD personal

property disposal agent.

Surplus personal property may be disposed of by the DRMO by either donation

or sale. Priority for donation should be given to either the U or the local

community.

4-14 December 1997
DoD Base Reuse Implementation Manual

●

●

●

●

●

Federal law authorizes the Federal Government to allocate Federal surplus

personal property for transfer to State agencies, which in turn distribute such

property for public purposes to eligible recipient agencies.

The major categories of eligible recipients are:

— Public agencies.

— Nonprofit educational and public health activities.

— Nonprofit and public programs for the elderly.

— Educational activities of special interest to the Armed Forces.

— Public airports.

— Homeless assistance providers.

Under this donation program, communities and LRAs may ask for personal

property that did not qualify for an EDC. Such community or LIU4 requests

for property must be made through the closing base installation commander

or other authorized official to the appropriate State Agency for Surplus

Property (SASP).

— Personal Property donated under this procedure must meet the usage and

control requirements of the applicable SASP.

— Property subsequently not needed by the LRA or community shall be

disposed of as required by the SASP.

The DRMO will dispose of surplus property not selected through the

donation program.

Under speaal circumstances, property maybe sold by negotiation. Such

sales, typically for property valued at less than $15,000, are infrequent and

must be justified in advance by the DRMO to the Secretary of Defense.

4.5 F UNCTIONALLY E QUIVALENT PERSONAL P ROPERT Y

4.5.1 Substitution of functionally equivalent similar items Can the Military

● The Military Department or Defense Agency may substitute an item of Depatiment

personal property similar to one requested by the LRA. substitute similar

items of personal

● It is the Military Department or Defense Agency’s responsibility to ensure that

property for those

the substitute item is functionally equivalent to the requested item.

requested by the

LRA?

● Should a dispute arise about the suitability of a substitute item, the original

item in question should not be removed from the base until the disagreement

process described in Section 4.3.1 is complete.

December 1997 4-15
Personal ProDertv

What are Clean Air

Act Emission

Trading Programs? 1

What tradable or

transfersb/e

emissions programs

impact base reuse

implementation ?

4.5.2 Definition of “similar”

In the context of substituted items of personal property, “similar” means that the

original item and the proposed substitute item have the same functional

capability and that the substitute item is serviceable for the same intended use.

4.6 AIR EMISSION RIGHTS TRADING GUIDANCE

4.6.1 Clean Air Act

The Clean Air Act Amendments of 1990 (CAAA) require reduction in emissions

by activities all over the nation, both military and civilian, in order to meet the

national ambient air quality standards for clean air. The amendments introduced

the marketplace into emission control regulations. To further reductions through

market tiading, the CAAA and implementing State regulations may allow

movement or transfer of emission rights between parties at the same site, to other

locations within the State, or, in some instances, to other States.

●

●

●

Non-attainment-The CAAA designates acceptable ambient levels of

selected (“criteria”) pollutants. Areas that exceed those levels are designated

as “non-attainment” areas and the State’s control plan (“State Implementation

Plan” or “SIP”) must be adequate to reach attainment within a specified time.

The required reduction controls and the time required to achieve those

reductions depend on the severity of the air pollution problem.

Economic Incentive Programs-To encourage innovative approaches to

reduce air pollution, the CAAA authorized development of programs to trade

emission rights-rights to emit specific amounts of criteria pollutants.

Various State trading programs have been developed such as cap-and-trade

allocation and emission reduction credit (ERC) banking. In addition, some

States have entered into agreements with other States which allow interstate

trades.

Emissions Trading Programs-There is a variety of individual trading

programs through&t h-e country. Current pro~ams allow trading

reductions from stationary, mobile, and area sources and may allow intrastate

and interstate trading. Local, State, or regional programs for

trading/ transfening ERCS, allowances, or other economic incentives must

first be approved by EPA and then incorporated into the SIP(s). ERCS must

be surplus (i.e., go beyond existing CAAA requirements), enforceable,

permanent (source of pollution must be permanently reduced), and

quantifiable. ERCS, allowances, or similar tradable incentives are issued or

available only when there is an approved SIP in the area where generated.

Generally, if there is an approved program, when an owner permanently

shuts down an emission source, ERCS can be created by submitting an

application and fee to the State or air quality control region (AQCR). The

AQCR may discount or retain some of the ERCS as part of a reserve bank to

support future economic growth or to meet attainment requirements. Even in

States that do not have a formal program for ERCS (including mobile source

emission reductions), DoD has successfully quantified and traded these

“offsets” to other DoD Components or other Federal Agencies to support

conformity requirements. Because programs differ from State to State, and

regulatory changes are frequent, consultation with experts within the Military

4-16 December 1997
DoD Base Reuse Implementation Manual

Departments is strongly encouraged. The trading and transfers of mobile

source emissions raise speaal considerations, including transfers that support

conformity, and should be referred to the Secretary of the Military

Department.

. Permit Transfers-Stationary sources may be issued air permits by the State

or AQCRS to emit specific levels of criteria pollutants during a year.

Regulators usually allow the transfer of these air permits with transfer of the

stationary source.

. General Conformity-The CAAA requires a Federal Agency to demonstrate

that a new Federal action, or a Federally approved or supported action, will

not cause deterioration of air quality or impact attainment status in a nonattairunent or maintenance (former non-attainment) area. Because military

bases gaining units, functions, or weapons systems as a result of a BRAC

action are required to comply with conformity, gaining facilities need to

determine whether emission reductions or offsets which are needed to

demonstrate conformity can be transferred from closing or realigning bases.

4.6.2 Guidance and implementation

Emission rights are important to both the military and the community.

Consistent with full protection of national defense imperatives, distribution of II What is DOD’s

emission rights from closing bases (if available under applicable law) should general guidance

reasonably accommodate military needs, community redevelopment needs, and regarding emission

State and local air quality attainment goals. Decisions on the distribution of any rights?

such emission rights will be made by the Secretary of the Military Department

only after full consultation with the LRA, the local AQCR, and other Military

Departments with vital needs.

All DoD installations being closed should first consult with the AQCR or State to

obtain current information on local air quality conditions (attainment status);

conformity rules; conditions for permit transfer; status of approved trading

programs; and availability of community bank credits for redevelopment. All

DoD installations being closed should also inventory all existing emission

sources, including all stationary and mobile sources and existing air permits with

expiration dates. The goal of the inventory is to have complete and accurate

information for discussions with the LRA, the local AQCR, neighboring DoD

installations, and other Federal Agenaes. After completing the inventory, the

installation should enter into discussions with the LIU, the AQCR, other Military

Departments, DoD Components, or Federal Agencies. The LR4 should be

encouraged to identify emission rights reasonably needed to support planned

economic development. Where allowed by local rule, transfer of existing permits

with transfer of ownership of the emission source should be considered.

When a receiving installation is located in an area that could receive credits,

offsets, or allowances from a closing installation, the receiving installation should

determine its emission needs as early as possible. Every effort should be made to

reduce or spread out the need for aedits, offsets, or allowances. If additional

emission rights are needed, the receiving installation should advise the closing

installation immediately in writing with a specific emission transfer/trading

request and justification. Special consideration to the receiving installation’s

needs should be given in the distribution decision.

December 1997 4-17
Personal Property

ro (Name and address of redevelopment authority) Personal property EDC type

(check on+

O Full fair maxket value (standard cost)

Cl Less than fair market value

Cl Donation

From (Militay organization and address) Total acquisition cost

Conditions for transfer

(List the transfer conditions here or attach a separate sheet of paper with the list of transf~ conditions)

Property Listi

(It is not necessary to complete this section fan inventory list containing the required information is attached)

Identification Description Standard Cost

Numbers Demil Cond. Quantitylhit

Code Code of Issue unit Total

Transferee Action Transferee (Flame and address of Signature and title (Representative of Date

Transferee certifies and redevelopment authority): redevelopment authority)

agrees that transfera

and donations are

made in accordance

with 32 CFR Part 175

Administrative Determining Officer (as detenninai Signature of determining officer Date

Action &y Militay Department>

[ certify that the Approving officer (as determined by Signature of approving officer Date

administrative action Militay Department):

pertinent to this order

is in accordance with

32 CFR Part 175

4-18 December 1997