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[House Report 113-115]
[From the U.S. Government Printing Office]


113th Congress    }                                 {    Rept. 113-115
                  }     HOUSE OF REPRESENTATIVES    { 
 1st Session                                                   Part 1
======================================================================
 
  AMENDING THE SIKES ACT TO PROMOTE THE USE OF COOPERATIVE AGREEMENTS 
  UNDER SUCH ACT FOR LAND MANAGEMENT RELATED TO DEPARTMENT OF DEFENSE 
  READINESS ACTIVITIES AND TO AMEND TITLE 10, UNITED STATES CODE, TO 
FACILITATE INTERAGENCY COOPERATION IN CONSERVATION PROGRAMS TO AVOID OR 
        REDUCE ADVERSE IMPACTS ON MILITARY READINESS ACTIVITIES

                                _______
                                

                 June 17, 2013.--Ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1080]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 1080) to amend the Sikes Act to promote the use 
of cooperative agreements under such Act for land management 
related to Department of Defense readiness activities and to 
amend title 10, United States Code, to facilitate interagency 
cooperation in conservation programs to avoid or reduce adverse 
impacts on military readiness activities, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. COOPERATIVE AGREEMENTS UNDER SIKES ACT FOR LAND MANAGEMENT 
                    RELATED TO DEPARTMENT OF DEFENSE READINESS 
                    ACTIVITIES.

  (a) Multiyear Agreements To Fund Long-Term Management.--Subsection 
(b) of section 103A of the Sikes Act (16 U.S.C. 670c-1) is amended--
          (1) by inserting ``(1)'' before ``Funds''; and
          (2) by adding at the end the following new paragraph:
  ``(2) In the case of a cooperative agreement under subsection (a)(2), 
funds referred to in paragraph (1)--
          ``(A) may be paid in a lump sum and include an amount 
        intended to cover the future costs of the natural resource 
        maintenance and improvement activities provided for under the 
        agreement; and
          ``(B) may be invested by the recipient in accordance with the 
        recipient's own guidelines for the management and investment of 
        financial assets, and any interest or income derived from such 
        investment may be applied for the same purposes as the 
        principal.''.
  (b) Availability of Funds and Relation to Other Laws.--Subsection (c) 
of such section is amended to read as follows:
  ``(c) Availability of Funds and Relation to Other Laws.--(1) 
Cooperative agreements and interagency agreements entered into under 
this section shall be subject to the availability of funds.
  ``(2) Notwithstanding chapter 63 of title 31, United States Code, a 
cooperative agreement under this section may be used to acquire 
property or services for the direct benefit or use of the United States 
Government.
  ``(3) Amounts available to the Department of Defense that are 
provided to any Federal, State, local, or nongovernmental entity for 
conservation and rehabilitation of natural resources in an area that is 
not on a military installation--
          ``(A) may only be used for payment of direct costs associated 
        with the management of such area; and
          ``(B) may be used to pay not more than 3 percent of total 
        project administrative costs, fees, and management charges.
  ``(4) Amounts available to the Department of Defense may not be used 
under this Act to acquire fee title interest in real property for 
natural resources projects that are not on a military installation.''.
  (c) Annual Audits.--Section 103A of the Sikes Act (16 U.S.C. 670c-1) 
is amended by adding at the end the following:
  ``(d) Annual Audits.--The Inspector General of the Department of 
Defense shall annually audit each natural resources project funded with 
amounts available to the Department of Defense under this Act that is 
not on a military installation.''.

SEC. 2. FACILITATION OF INTERAGENCY COOPERATION IN CONSERVATION 
                    PROGRAMS OF THE DEPARTMENTS OF DEFENSE, 
                    AGRICULTURE, AND INTERIOR TO AVOID OR REDUCE 
                    ADVERSE IMPACTS ON MILITARY READINESS ACTIVITIES.

  Section 2684a of title 10, United States Code, is amended--
          (1) by redesignating subsections (h) and (i) as subsections 
        (i) and (j); and
          (2) by inserting after subsection (g) the following new 
        subsection (h):
  ``(h) Interagency Cooperation in Conservation Programs To Avoid or 
Reduce Adverse Impacts on Military Readiness Activities.--In order to 
facilitate interagency cooperation and enhance the effectiveness of 
actions that will protect both the environment and military readiness, 
the recipient of funds provided pursuant an agreement under this 
section or under the Sikes Act (16 U.S.C. et seq.) may, with regard to 
the lands and waters within the scope of the agreement, use such funds 
to satisfy any matching funds or cost-sharing requirement of any 
conservation program of the Department of Agriculture or the Department 
of the Interior notwithstanding any limitation of such program on the 
source of matching or cost-sharing funds.''.

SEC. 3. SUNSET.

  This Act and the provisions of law enacted by the amendments made by 
this Act shall expire on October 1, 2019, except that any cooperative 
agreement referred to in such provisions that is entered into on or 
before September 30, 2019, shall continue according to its terms and 
conditions as if this Act has not expired.

                          Purpose of the Bill

    The purpose of H.R. 1080, as ordered reported, is to amend 
the Sikes Act to promote the use of cooperative agreements 
under such Act for land management related to Department of 
Defense readiness activities and to amend title 10, United 
States Code, to facilitate interagency cooperation in 
conservation programs to avoid or reduce adverse impacts on 
military readiness activities.

                  Background and Need for Legislation

    The Department of Defense (DOD) controls over 28 million 
acres of valuable fish and wildlife habitat at 511 military 
installations nationwide. These lands contain a wealth of plant 
and animal life, wetlands for migratory birds and 420 federally 
listed species. Enacted in 1960, the Sikes Act (16 U.S.C. 670 
et seq.) has been extended a number of times with the most 
recent effort in the National Defense Authorization Act for 
Fiscal Year 2010. Under Public Law 111-84, Title I of the Sikes 
Act was extended until September 30, 2014, and the existing 
annual funding levels of $1.5 million for DOD and $3 million 
for the Department of the Interior through the Fish and 
Wildlife Service (FWS) were retained. However, neither DOD nor 
FWS receives a direct appropriation for this program. Instead, 
the nearly $60 million that has been spent during the past ten 
fiscal years in support of Sikes Act activities has been 
consistently funded through general administrative funds.
    Under current law, DOD has the authority to perform natural 
resource conservation projects on off-installation lands where 
it does not have a real property interest. However, the DOD 
does not have the authority to make long-term financial 
obligations to an off-site project. The primary purpose of 
these projects is to obtain `credit' from the FWS for these 
efforts and corresponding relief from some Endangered Species 
Act (ESA) obligations on military installations throughout this 
country. The lack of a long-term commitment has made it 
difficult to obtain `credit' from FWS and, therefore, creates 
uncertainty in the type of military training and readiness 
activities that can be planned in the future.
    DOD is particularly concerned that over the next four years 
the FWS has set deadlines to make final listing and critical 
habitat decisions on as many as 779 candidate species under the 
ESA, as part of the Interior Department's 2011 ESA multi-
species settlements with the Center for Biological Diversity 
and the WildEarth Guardians. These settlements were negotiated 
without input from affected states or other entities and are 
costing millions to implement, just for paperwork. Based on its 
analysis, 110 of these species will affect military bases. In 
fact, eight species could cause severe impacts to military 
readiness and 29 species would cause a moderate amount of 
problems. Among the bases that are most likely to be 
significantly affected by these listings are Fork Polk, 
Louisiana; Hawthorne Army Depot, Nevada; Joint Base Lewis 
McChord, Washington; Marine Corps Base Camp Lejeune, North 
Carolina; and Melrose Range, New Mexico.
    Under H.R. 1080, the ability of DOD to obtain ``credit'' 
from the FWS is enhanced by amending the Sikes Act to allow DOD 
to make long-term financial commitments through cooperative 
agreements for natural resource conservation projects. 
Furthermore, DOD will be able to use funds provided to it under 
the Readiness and Environmental Protection Initiative and the 
Sikes Act to qualify as matching or cost-sharing funds in 
connection with certain conservation programs of FWS, the U.S. 
Forest Service, the Natural Resources Conservation Service, the 
States and private landowners. Under the U.S. Department of 
Agriculture Farm and Rangeland Protection Program and other 
conservation programs, private landowners and the States are 
generally required to provide a matching amount of money equal 
to 20 percent of a project. The provision would allow DOD to 
use its money to serve as the match in those instances where 
the other partner lacks the resources to complete the project.
    With the enactment of these provisions, the DOD is 
confident that these mitigation credits will be forthcoming. 
This belief is reinforced by the precedent of two current off-
installation projects at Fort Hood, Texas, and Marine Corps 
Base Camp Lejeune, North Carolina. While these are not Sikes 
Act projects, FWS has indicated that the U.S. Army could 
``bank'' credits for new on-base training activities as a 
result of DOD efforts to assist in the recovery of the golden-
cheeked warbler. In the case of Camp Lejeune, FWS has 
apparently pledged to relax the Marine Corps' on-base recovery 
goals for the red-cockaded woodpecker because of the Corps' 
efforts to protect and restore Longleaf pine habitat essential 
to the survival of these birds in this region.
    During Full Natural Resources Committee consideration of H. 
R. 1080, the Committee adopted four amendments offered by 
Congressman John Fleming (R-LA). These amendments significantly 
improved the underlying bill by prohibiting the use of Sikes 
Act funds for the acquisition of fee title land; limited the 
payment of administrative fees or costs to 3 percent of the 
total project cost; required an annual audit of all funds spent 
on off-installation natural resources projects; and stipulated 
that this authority will sunset on September 30, 2019.

                            Committee Action

    H.R. 1080 was introduced on March 12, 2013, by Delegate 
Madeleine Bordallo (D-GU). The bill was referred primarily to 
the Committee on Armed Services, and in addition to the 
Committee on Natural Resources. Within the Committee on Natural 
Resources, the bill was referred to the Subcommittee on 
Fisheries, Wildlife, Oceans and Insular Affairs. On March 21, 
2013, the Subcommittee held a hearing on the bill. On May 15, 
2013, the Full Natural Resources Committee met to consider the 
bill. The Subcommittee on Fisheries, Wildlife, Oceans and 
Insular Affairs was discharged by unanimous consent. 
Congressman John Fleming (R-LA) offered an en bloc amendment 
consisting of amendments .003, .004, .005 and .007 to the bill; 
the en bloc amendment was adopted by voice vote. The bill, as 
amended, was then adopted and ordered favorably reported to the 
House of Representatives by voice vote.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(2)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
403 of the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for this bill from the 
Director of the Congressional Budget Office:

H.R. 1080--A bill to amend the Sikes Act to promote the use of 
        cooperative agreements under such act for land management 
        related to Department of Defense readiness activities and to 
        amend title 10, United States Code, to facilitate interagency 
        cooperation in conservation programs to avoid or reduce adverse 
        impacts on military readiness activities

    H.R. 1080 would amend the Sikes Act to allow the Department 
of Defense (DoD) to provide lump-sum payments to nonfederal 
entities that enter into cooperative agreements to maintain and 
improve natural resources at certain military sites. The bill 
also would allow those entities to invest funds provided to 
carry out those activities and to use such funds to meet the 
cost-sharing requirements for certain federal conservation 
programs. Finally, the bill would require DoD to conduct annual 
audits of each project carried out under the Sikes Act.
    CBO estimates that changing the method of payment to 
nonfederal entities and allowing additional uses for funds 
provided to such entities under the Sikes Act would have no 
significant impact on the federal budget. Based on information 
regarding the number of projects carried out under the Sikes 
Act each year, CBO also estimates that performing the annual 
audits of those projects would cost less than $500,000 a year. 
Enacting H.R. 1080 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    H.R. 1080 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Jeff LaFave. The 
estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of Congressional Budget Act. As required 
by clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a) of the Congressional Budget 
Act of 1974, this bill does not contain any new budget 
authority, spending authority, credit authority, or an increase 
or decrease in revenues or tax expenditures. CBO estimates that 
changing the method of payment to nonfederal entities and 
allowing additional uses for funds provided to such entities 
under the Sikes Act would have no significant impact on the 
federal budget. Based on information regarding the number of 
projects carried out under the Sikes Act each year, CBO also 
estimates that performing the annual audits of those projects 
would cost less than $500,000 a year.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill, as ordered reported, is to amend the 
Sikes Act to promote the use of cooperative agreements under 
such Act for land management related to Department of Defense 
readiness activities and to amend title 10, United States Code, 
to facilitate interagency cooperation in conservation programs 
to avoid or reduce adverse impacts on military readiness 
activities.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                       Compliance With H. Res. 5

    Directed Rule Making. The Chairman does not believe that 
this bill directs any executive branch official to conduct any 
specific rule-making proceedings.
    Duplication of Existing Programs. This bill does establish 
a program of the federal government known to be duplicative of 
another federal program. Such program was identified in the 
most recent Catalog of Federal Domestic Assistance publish 
pursuant to the Federal Program Information Act (Public Law 95-
220, as amended by Public Law 98-169) as relating to other 
programs. More specifically under the general category of Fish 
and Wildlife Management Assistance by the U.S. Fish and 
Wildlife Service, the Sikes Act was grouped with seven other 
federal laws that provide funding for this activity, including 
the Fish and Wildlife Act of 1956, the Fish and Wildlife 
Coordination Act of 1958, the Alaska National Interest Lands 
Conservation Act, the Marine Mammal Protection Act of 1972, the 
Fish and Wildlife Conservation Act of 1980, the Non indigenous 
Aquatic Nuisance Prevention and Control Act of 1990, and the 
Lacey Act. Related programs were identified as Sport Fish 
Restoration Program and the Partners for Fish and Wildlife. In 
addition, under the category of Recovery Act Fund--Habitat 
Enhancement, Restoration and Improvement by the U.S. Fish and 
Wildlife Service, the Sikes Act was grouped with nine other 
statutes. In addition to many of the laws listed for Fish and 
Wildlife Management Assistance, this list also included the 
American Recovery and Reinvestment Act of 2009, the Great Lakes 
Fish and Wildlife Restoration Act, the Partners for Fish and 
Wildlife Act, and the Endangered Species Act. Related programs 
for this activity were identified as Sport Fish Restoration 
program, Fish and Wildlife Management Assistance, Coastal 
Program, Partners for Fish and Wildlife and Pollution 
Prevention Grants Program. However, as explained in the 
background and need portion of this report, Congress does not 
provide specific appropriations to implement the Sikes Act, but 
rather the Fish and Wildlife Service takes general funds for 
these activities, from other statutes and programs described in 
this section, and uses to meet the goals of the Sikes Act.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

SIKES ACT

           *       *       *       *       *       *       *



TITLE I--CONSERVATION PROGRAMS ON MILITARY INSTALLATIONS

           *       *       *       *       *       *       *



SEC. 103A. COOPERATIVE AND INTERAGENCY AGREEMENTS FOR LAND MANAGEMENT 
                    ON INSTALLATIONS.

  (a) Authority of Secretary of Military Department.--The 
Secretary of a military department may enter into cooperative 
agreements with States, local governments, Indian tribes, 
nongovernmental organizations, and individuals, and into 
interagency agreements with the heads of other Federal 
departments and agencies, to provide for the following:
          (1) The maintenance and improvement of natural 
        resources on, or to benefit natural and historic 
        research on, military installations and State-owned 
        National Guard installations.
          (2) The maintenance and improvement of natural 
        resources located off of a military installation or 
        State-owned National Guard installation if the purpose 
        of the cooperative agreement or interagency agreement 
        is to relieve or eliminate current or anticipated 
        challenges that could restrict, impede, or otherwise 
        interfere with, whether directly or indirectly, current 
        or anticipated military activities.
  (b) Multiyear Agreements.--(1) Funds appropriated to the 
Department of Defense for a fiscal year may be obligated to 
cover the cost of goods and services provided under a 
cooperative agreement or interagency agreement entered into 
under subsection (a) or through an agency agreement under 
section 1535 of title 31, United States Code, during any 18-
month period beginning in that fiscal year, without regard to 
whether the agreement crosses fiscal years.
  (2) In the case of a cooperative agreement under subsection 
(a)(2), funds referred to in paragraph (1)--
          (A) may be paid in a lump sum and include an amount 
        intended to cover the future costs of the natural 
        resource maintenance and improvement activities 
        provided for under the agreement; and
          (B) may be invested by the recipient in accordance 
        with the recipient's own guidelines for the management 
        and investment of financial assets, and any interest or 
        income derived from such investment may be applied for 
        the same purposes as the principal.
  [(c) Availability of Funds; Agreements Under Other Laws.--
Cooperative agreements and interagency agreements entered into 
under this section shall be subject to the availability of 
funds and shall not be considered, nor be treated as, 
cooperative agreements to which chapter 63 of title 31, United 
States Code, applies.]
  (c) Availability of Funds and Relation to Other Laws.--(1) 
Cooperative agreements and interagency agreements entered into 
under this section shall be subject to the availability of 
funds.
  (2) Notwithstanding chapter 63 of title 31, United States 
Code, a cooperative agreement under this section may be used to 
acquire property or services for the direct benefit or use of 
the United States Government.
  (3) Amounts available to the Department of Defense that are 
provided to any Federal, State, local, or nongovernmental 
entity for conservation and rehabilitation of natural resources 
in an area that is not on a military installation--
          (A) may only be used for payment of direct costs 
        associated with the management of such area; and
          (B) may be used to pay not more than 3 percent of 
        total project administrative costs, fees, and 
        management charges.
  (4) Amounts available to the Department of Defense may not be 
used under this Act to acquire fee title interest in real 
property for natural resources projects that are not on a 
military installation.
  (d) Annual Audits.--The Inspector General of the Department 
of Defense shall annually audit each natural resources project 
funded with amounts available to the Department of Defense 
under this Act that is not on a military installation.

           *       *       *       *       *       *       *

                              ----------                              


                      TITLE 10, UNITED STATES CODE



           *       *       *       *       *       *       *
SUBTITLE A--GENERAL MILITARY LAW

           *       *       *       *       *       *       *


PART IV--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *


  CHAPTER 159--REAL PROPERTY; RELATED PERSONAL PROPERTY; AND LEASE OF 
NON-EXCESS PROPERTY

           *       *       *       *       *       *       *


Sec. 2684a. Agreements to limit encroachments and other constraints on 
                    military training, testing, and operations

  (a) Agreements Authorized.--The Secretary of Defense or the 
Secretary of a military department may enter into an agreement 
with an eligible entity or entities described in subsection (b) 
to address the use or development of real property in the 
vicinity of, or ecologically related to, a military 
installation or military airspace for purposes of--
          (1) limiting any development or use of the property 
        that would be incompatible with the mission of the 
        installation;
          (2) preserving habitat on the property in a manner 
        that--
                  (A) is compatible with environmental 
                requirements; and
                  (B) may eliminate or relieve current or 
                anticipated environmental restrictions that 
                would or might otherwise restrict, impede, or 
                otherwise interfere, whether directly or 
                indirectly, with current or anticipated 
                military training, testing, or operations on 
                the installation; or
          (3) protecting Clear Zone Areas from use or 
        encroachment that is incompatible with the mission of 
        the installation.
  (b) Eligible Entities.--An agreement under this section may 
be entered into with any of the following:
          (1) A State or political subdivision of a State.
          (2) A private entity that has as its stated principal 
        organizational purpose or goal the conservation, 
        restoration, or preservation of land and natural 
        resources, or a similar purpose or goal, as determined 
        by the Secretary concerned.
  (c) Inapplicability of Certain Contract Requirements.--
Notwithstanding chapter 63 of title 31, an agreement under this 
section that is a cooperative agreement or a grant may be used 
to acquire property or services for the direct benefit or use 
of the United States Government.
  (d) Acquisition and Acceptance of Property and Interests.--
(1) An agreement with an eligible entity or entities under this 
section shall provide for--
          (A) the acquisition by the entity or entities of all 
        right, title, and interest in and to any real property, 
        or any lesser interest in the property, as may be 
        appropriate for purposes of this section; and
          (B) the sharing by the United States and the entity 
        or entities of the acquisition costs in accordance with 
        paragraph (3).
  (2) Property or interests may not be acquired pursuant to the 
agreement unless the owner of the property or interests 
consents to the acquisition.
  (3) An agreement with an eligible entity under this section 
may provide for the management of natural resources on, and the 
monitoring and enforcement of any right, title, or interest in, 
real property in which the Secretary concerned acquires any 
right, title, or interest in accordance with this subsection 
and for the payment by the United States of all or a portion of 
the costs of such natural resource management and monitoring 
and enforcement if the Secretary concerned determines that 
there is a demonstrated need to preserve or restore habitat for 
the purpose described in subsection (a)(2). Any such payment by 
the United States--
          (A) may be paid in a lump sum and include an amount 
        intended to cover the future costs of natural resource 
        management and monitoring and enforcement; and
          (B) may be placed by the eligible entity in an 
        interest- bearing account, and any interest shall be 
        applied for the same purposes as the principal.
  (4)(A) The Secretary concerned shall determine the 
appropriate portion of the acquisition costs to be borne by the 
United States in the sharing of acquisition costs of real 
property, or an interest in real property, under paragraph 
(1)(B).
  (B) In lieu of or in addition to making a monetary 
contribution toward the cost of acquiring a parcel of real 
property, or an interest therein, pursuant to an agreement 
under this section, the Secretary concerned may convey, using 
the authority provided by section 2869 of this title, real 
property described in paragraph (2) of subsection (a) of such 
section, subject to the limitation in paragraph (3) of such 
subsection.
  (C) The portion of acquisition costs borne by the United 
States under subparagraph (A), either through the contribution 
of funds or excess real property, or both, may not exceed an 
amount equal to, at the discretion of the Secretary concerned--
          (i) the fair market value of any property or interest 
        in property to be transferred to the United States upon 
        the request of the Secretary concerned under paragraph 
        (5); or
          (ii) the cumulative fair market value of all 
        properties or interests to be transferred to the United 
        States under paragraph (5) pursuant to an agreement 
        under subsection (a).
  (D) The portion of acquisition costs borne by the United 
States under subparagraph (A) may exceed the amount determined 
under subparagraph (C), but only if--
          (i) the Secretary concerned provides written notice 
        to the Committee on Armed Services of the Senate and 
        the Committee on Armed Services of the House of 
        Representatives containing--
                  (I) a certification by the Secretary that the 
                military value to the United States of the 
                property or interest to be acquired justifies a 
                payment in excess of the fair market value of 
                the property or interest; and
                  (II) a description of the military value to 
                be obtained; and
          (ii) the contribution toward the acquisition costs of 
        the property or interest is not made until at least 14 
        days after the date on which the notice is submitted 
        under clause (i) or, if earlier, at least 10 days after 
        the date on which a copy of the notice is provided in 
        an electronic medium pursuant to section 480 of this 
        title.
  (E) The contribution of an entity or entities to the 
acquisition costs of real property, or an interest in real 
property, under paragraph (1)(B) may include, with the approval 
of the Secretary concerned, the following or any combination of 
the following:
          (i) The provision of funds, including funds received 
        by such entity or entities from a Federal agency 
        outside the Department of Defense or a State or local 
        government in connection with a Federal, State, or 
        local program.
          (ii) The provision of in-kind services, including 
        services related to the acquisition or maintenance of 
        such real property or interest in real property.
          (iii) The exchange or donation of real property or 
        any interest in real property.
  (5)(A) The agreement shall require the entity or entities to 
transfer to the United States, upon the request of the 
Secretary concerned, all or a portion of the property or 
interest acquired under the agreement or a lesser interest 
therein. No such requirement need be included in the agreement 
if the property or interest is being transferred to a State, or 
the agreement requires it to be subsequently transferred to a 
State, and the Secretary concerned determines that the laws and 
regulations applicable to the future use of such property or 
interest provide adequate assurance that the property concerned 
will be developed and used in a manner appropriate for purposes 
of this section. The Secretary shall limit such transfer 
request to the minimum property or interests necessary to 
ensure that the property concerned is developed and used in a 
manner appropriate for purposes of this section.
  (B) Notwithstanding subparagraph (A), if all or a portion of 
the property or interest acquired under the agreement is 
subsequently transferred to the United States and 
administrative jurisdiction over the property is under a 
Federal official other than a Secretary concerned, the 
Secretary concerned and that Federal official shall enter into 
a memorandum of agreement providing, to the satisfaction of the 
Secretary concerned, for the management of the property or 
interest concerned in a manner appropriate for purposes of this 
section. Such memorandum of agreement shall also provide that, 
should it be proposed that the property or interest concerned 
be developed or used in a manner not appropriate for purposes 
of this section, including declaring the property to be excess 
to the agency's needs or proposing to exchange the property for 
other property, the Secretary concerned may request that 
administrative jurisdiction over the property be transferred to 
the Secretary concerned at no cost, and, upon such a request 
being made, the administrative jurisdiction over the property 
shall be transferred accordingly.
  (6) The Secretary concerned may accept on behalf of the 
United States any property or interest to be transferred to the 
United States under the agreement.
  (7) For purposes of the acceptance of property or interests 
under the agreement, the Secretary concerned may accept an 
appraisal or title documents prepared or adopted by a non-
Federal entity as satisfying the applicable requirements of 
section 301 of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (42 U.S.C. 4651) or 
section 3111 of title 40, if the Secretary concerned finds that 
the appraisal or title documents substantially comply with the 
requirements.
  (e) Acquisition of Water Rights.--The authority of the 
Secretary concerned to enter into an agreement under this 
section for the acquisition of real property (or an interest 
therein) includes the authority to support the purchase of 
water rights from any available source when necessary to 
support or protect the mission of a military installation.
  (f) Additional Terms and Conditions.--The Secretary concerned 
may require such additional terms and conditions in an 
agreement under this section as the Secretary considers 
appropriate to protect the interests of the United States.
  (g) Annual Reports.--(1) Not later than March 1 each year, 
the Secretary of Defense shall, in coordination with the 
Secretaries of the military departments and the Director of the 
Department of Defense Test Resource Management Center, submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the projects undertaken under 
agreements under this section.
  (2) Each report under paragraph (1) shall include the 
following:
          (A) A description of the status of the projects 
        undertaken under agreements under this section.
          (B) An assessment of the effectiveness of such 
        projects, and other actions taken pursuant to this 
        section, as part of a long-term strategy to ensure the 
        sustainability of military test and training ranges, 
        military installations, and associated airspace.
          (C) An evaluation of the methodology and criteria 
        used to select, and to establish priorities, for 
        projects undertaken under agreements under this 
        section.
          (D) A description of any sharing of costs by the 
        United States and eligible entities under subsection 
        (d) during the preceding year, including a description 
        of each agreement under this section providing for the 
        sharing of such costs and a statement of the eligible 
        entity or entities with which the United States is 
        sharing such costs.
          (E) Such recommendations as the Secretary of Defense 
        considers appropriate for legislative or administrative 
        action in order to improve the efficiency and 
        effectiveness of actions taken pursuant to agreements 
        under this section.
  (h) Interagency Cooperation in Conservation Programs To Avoid 
or Reduce Adverse Impacts on Military Readiness Activities.--In 
order to facilitate interagency cooperation and enhance the 
effectiveness of actions that will protect both the environment 
and military readiness, the recipient of funds provided 
pursuant an agreement under this section or under the Sikes Act 
(16 U.S.C. et seq.) may, with regard to the lands and waters 
within the scope of the agreement, use such funds to satisfy 
any matching funds or cost-sharing requirement of any 
conservation program of the Department of Agriculture or the 
Department of the Interior notwithstanding any limitation of 
such program on the source of matching or cost-sharing funds.
  [(h)] (i) Funding.--(1) Except as provided in paragraph (2), 
funds authorized to be appropriated for operation and 
maintenance of the Army, Navy, Marine Corps, Air Force, or 
Defense-wide activities may be used to enter into agreements 
under this section.
  (2) In the case of a military installation operated primarily 
with funds authorized to be appropriated for research, 
development, test, and evaluation, funds authorized to be 
appropriated for the Army, Navy, Marine Corps, Air Force, or 
Defense-wide activities for research, development, test, and 
evaluation may be used to enter into agreements under this 
section with respect to the installation.
  [(i)] (j) Definitions.--In this section:
          (1) The term ``Secretary concerned'' means the 
        Secretary of Defense or the Secretary of a military 
        department.
          (2) The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Marianas, and the 
        territories and possessions of the United States.
          (3) The term ``Clear Zone Area'' means an area 
        immediately beyond the end of the runway of an airfield 
        that is needed to ensure the safe and unrestricted 
        passage of aircraft in and over the area.

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