`[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5122 Reported in House (RH)]


                                                 Union Calendar No. 253
109th CONGRESS
  2d Session
                                H. R. 5122

                          [Report No. 109-452]

     To authorize appropriations for fiscal year 2007 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2007, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2006

 Mr. Hunter (for himself and Mr. Skelton) (both by request) introduced 
   the following bill; which was referred to the Committee on Armed 
                                Services

                              May 5, 2006

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on April 
                                6, 2006]

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 2007 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2007, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 2007''.

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.

            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.

                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Family of Medium Tactical 
                            Vehicles.
Sec. 112. Multiyear procurement authority for MH-60R helicopters and 
                            mission equipment.
Sec. 113. Funding profile for Modular Force Initiative of the Army.
Sec. 114. Bridge to Future Networks program.

                       Subtitle C--Navy Programs

Sec. 121. Attack submarine force structure.
Sec. 122. Adherence to Navy cost estimates for CVN-21 class of aircraft 
                            carriers.
Sec. 123. Adherence to Navy cost estimates for LHA Replacement 
                            amphibious assault ship program.
Sec. 124. Adherence to Navy cost estimates for San Antonio (LPD-17) 
                            class amphibious ship program.
Sec. 125. Multiyear procurement authority for V-22 tiltrotor aircraft 
                            program.
Sec. 126. Quality control in procurement of ship critical safety items 
                            and related services.
Sec. 127. DD(X) Next-Generation Destroyer program.
Sec. 128. Sense of Congress that the Navy make greater use of nuclear-
                            powered propulsion systems in its future 
                            fleet of surface combatants.

                     Subtitle D--Air Force Programs

Sec. 131. Requirement for B-52 force structure.
Sec. 132. Strategic airlift force structure.
Sec. 133. Limitation on retirement of U-2 aircraft.
Sec. 134. Multiyear procurement authority for F-22A Raptor fighter 
                            aircraft.
Sec. 135. Limitation on retirement of KC-135E aircraft during fiscal 
                            year 2007.
Sec. 136. Limitation on retirement of F-117A aircraft during fiscal 
                            year 2007.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Alternate engine for Joint Strike Fighter.
Sec. 212. Extension of authority to award prizes for advanced 
                            technology achievements.
Sec. 213. Extension of Defense Acquisition Challenge Program.
Sec. 214. Future Combat Systems milestone review.
Sec. 215. Independent cost analyses for Joint Strike Fighter engine 
                            program.
Sec. 216. Dedicated amounts for implementing or evaluating DD(X) and 
                            CVN-21 proposals under Defense Acquisition 
                            Challenge Program.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.

                       Subtitle D--Other Matters

Sec. 231. Review of test and evaluation policies and practices to 
                            address emerging acquisition approaches.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense Programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program 
                            manager.
Sec. 312. Identification and monitoring of military munitions disposal 
                            sites in ocean waters extending from United 
                            States coast to outer boundary of outer 
                            Continental Shelf.
Sec. 313. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with Moses Lake 
                            Wellfield Superfund Site, Moses Lake, 
                            Washington.
Sec. 314. Funding of cooperative agreements under environmental 
                            restoration program.
Sec. 315. Analysis and report regarding contamination and remediation 
                            responsibility for Norwalk Defense Fuel 
                            Supply Point, Norwalk, California.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Extension of exclusion of certain expenditures from 
                            percentage limitation on contracting for 
                            depot-level maintenance.
Sec. 322. Minimum capital investment for Air Force depots.
Sec. 323. Extension of temporary authority for contractor performance 
                            of security guard functions.

                          Subtitle D--Reports

Sec. 331. Report on Nuclear Attack Submarine Depot Maintenance.
Sec. 332. Report on Navy Fleet Response Plan.
Sec. 333. Report on Navy surface ship rotational crew programs.
Sec. 334. Report on Army live-fire ranges in Hawaii.
Sec. 335. Comptroller General report on joint standards and protocols 
                            for access control systems at Department of 
                            Defense installations.
Sec. 336. Report on Personnel Security Investigations for Industry and 
                            National Industrial Security Program.

                       Subtitle E--Other Matters

Sec. 341. Department of Defense strategic policy on prepositioning of 
                            materiel and equipment.
Sec. 342. Authority to make Department of Defense horses available for 
                            adoption at end of useful working life.
Sec. 343. Sale and use of proceeds of recyclable munitions materials.
Sec. 344. Capital security cost sharing.
Sec. 345. Prioritization of funds within Navy mission operations, ship 
                            maintenance, combat support forces, and 
                            weapons system support.
Sec. 346. Prioritization of funds within Army reconstitution and 
                            transformation.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum 
                            levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
                            active duty end strengths for fiscal years 
                            2008 and 2009.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserve components.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2007 limitation on number of non-dual status 
                            technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on 
                            active duty for operational support.

              Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Authorized strength of Navy Reserve flag officers.
Sec. 502. Standardization of grade of senior dental officer of the Air 
                            Force with that of senior dental officer of 
                            the Army.
Sec. 503. Management of chief warrant officers.
Sec. 504. Reduction in time-in-grade requirement for promotion to 
                            captain in the Army, Air Force, and Marine 
                            Corps and lieutenant in the Navy.
Sec. 505. Military status of officers serving in certain Intelligence 
                            Community positions.

                Subtitle B--Reserve Component Management

Sec. 511. Revisions to reserve call-up authority.
Sec. 512. Military retirement credit for certain service by National 
                            Guard members performed while in a State 
                            duty status immediately after the terrorist 
                            attacks of September 11, 2001.
Sec. 513. Report on private-sector promotion and constructive 
                            termination of members of the reserve 
                            components called or ordered to active 
                            service.

                   Subtitle C--Education and Training

Sec. 521. Authority to permit members who participate in the guaranteed 
                            reserve forces duty scholarship program to 
                            participate in the health professions 
                            scholarship program and serve on active 
                            duty.
Sec. 522. Junior Reserve Officers' Training Corps instruction 
                            eligibility expansion.
Sec. 523. Authority for United States Military Academy and United 
                            States Air Force Academy permanent military 
                            professors to assume command positions 
                            while on periods of sabbatical.
Sec. 524. Expansion of service academy exchange programs with foreign 
                            military academies.
Sec. 525. Review of legal status of Junior ROTC program.

                Subtitle D--General Service Authorities

Sec. 531. Test of utility of test preparation guides and education 
                            programs in enhancing recruit candidate 
                            performance on the Armed Services 
                            Vocational Aptitude Battery (ASVAB) and 
                            Armed Forces Qualification Test (AFQT).
Sec. 532. Nondisclosure of selection board proceedings.
Sec. 533. Report on extent of provision of timely notice of long-term 
                            deployments.

       Subtitle E--Authorities Relating to Guard and Reserve Duty

Sec. 541. Title 10 definition of Active Guard and Reserve duty.
Sec. 542. Authority for Active Guard and Reserve duties to include 
                            support of operational missions assigned to 
                            the reserve components and instruction and 
                            training of active-duty personnel.
Sec. 543. Governor's authority to order members to Active Guard and 
                            Reserve duty.
Sec. 544. National Guard officers authority to command.
Sec. 545. Expansion of operations of civil support teams.

                   Subtitle F--Decorations and Awards

Sec. 551. Authority for presentation of Medal of Honor Flag to living 
                            Medal of Honor recipients and to living 
                            primary next-of-kin of deceased Medal of 
                            Honor recipients.
Sec. 552. Cold War Victory Medal.
Sec. 553. Posthumous award of Purple Heart for prisoners of war who die 
                            in or due to captivity.
Sec. 554. Advancement on the retired list of certain decorated retired 
                            Navy and Marine Corps officers.
Sec. 555. Report on Department of Defense process for awarding 
                            decorations.

               Subtitle G--Matters Relating to Casualties

Sec. 561. Criteria for removal of member from temporary disability 
                            retired list.
Sec. 562. Department of Defense computer/electronic accommodations 
                            program for severely wounded members.
Sec. 563. Transportation of remains of casualties dying in a theater of 
                            combat operations.
Sec. 564. Annual budget display of funds for POW/MIA activities of 
                            Department of Defense.

   Subtitle H--Assistance to Local Educational Agencies for Defense 
                          Dependents Education

Sec. 571. Continuation of authority to assist local educational 
                            agencies that benefit dependents of members 
                            of the Armed Forces and Department of 
                            Defense civilian employees.
Sec. 572. Enrollment in defense dependents' education system of 
                            dependents of foreign military members 
                            assigned to Supreme Headquarters Allied 
                            Powers, Europe.

                      Subtitle I--Postal Benefits

Sec. 575. Postal benefits program for members of the Armed Forces.
Sec. 576. Funding.
Sec. 577. Duration.

                       Subtitle J--Other Matters

Sec. 581. Reduction in Department of Defense accrual contributions to 
                            Department of Defense Military Retirement 
                            Fund.
Sec. 582. Dental Corps of the Bureau of Medicine and Surgery.
Sec. 583. Permanent authority for presentation of recognition items for 
                            recruitment and retention purposes.
Sec. 584. Report on feasibility of establishment of Military Entrance 
                            Processing Command station on Guam.
Sec. 585. Persons authorized to administer enlistment and appointment 
                            oaths.
Sec. 586. Repeal of requirement for periodic Department of Defense 
                            Inspector General assessments of voting 
                            assistance compliance at military 
                            installations.
Sec. 587. Physical evaluation boards.
Sec. 588. Department of Labor transitional assistance program.
Sec. 589. Revision in Government contributions to Medicare-Eligible 
                            Retiree Health Care Fund.
Sec. 590. Military chaplains.
Sec. 591. Report on personnel requirements for airborne assets 
                            identified as Low-Density, High-Demand 
                            Airborne Assets.
Sec. 592. Entrepreneurial Service Members Empowerment Task Force.
Sec. 593. Comptroller General report on military conscientious 
                            objectors.
Sec. 594. Commission on the National Guard and Reserves.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2007.
Sec. 602. Targeted increase in basic pay rates.
Sec. 603. Conforming change in general and flag officer pay cap to 
                            reflect increase in pay cap for Senior 
                            Executive Service personnel.
Sec. 604. Availability of second basic allowance for housing for 
                            certain reserve component or retired 
                            members serving in support of contingency 
                            operations.
Sec. 605. Extension of temporary continuation of housing allowance for 
                            dependents of members dying on active duty 
                            to spouses who are also members.
Sec. 606. Clarification of effective date of prohibition on 
                            compensation for correspondence courses.
Sec. 607. Payment of full premium for coverage under Servicemembers' 
                            Group Life Insurance program during service 
                            in Operation Enduring Freedom or Operation 
                            Iraqi Freedom.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
                            reserve forces.
Sec. 612. Extension of bonus and special pay authorities for health 
                            care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
                            officers.
Sec. 614. Extension of other bonus, special pay, and separation pay 
                            authorities.
Sec. 615. Expansion of eligibility of dental officers for additional 
                            special pay.
Sec. 616. Increase in maximum annual rate of special pay for Selected 
                            Reserve health care professionals in 
                            critically short wartime specialties.
Sec. 617. Authority to provide lump sum payment of nuclear officer 
                            incentive pay.
Sec. 618. Increase in maximum amount of nuclear career accession bonus.
Sec. 619. Increase in maximum amount of incentive bonus for transfer 
                            between armed forces.
Sec. 620. Clarification regarding members of the Army eligible for 
                            bonus for referring other persons for 
                            enlistment in the Army.
Sec. 621. Pilot program for recruitment bonus for critical health care 
                            specialties.
Sec. 622. Enhancement of temporary program of voluntary separation pay 
                            and benefits.
Sec. 623. Additional authorities and incentives to encourage retired 
                            members and reserve component members to 
                            volunteer to serve on active duty in high-
                            demand, low-density assignments.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Authority to pay costs associated with delivery of motor 
                            vehicle to storage location selected by 
                            member and subsequent removal of vehicle.
Sec. 632. Transportation of additional motor vehicle of members on 
                            change of permanent station to or from 
                            nonforeign areas outside the continental 
                            United States.
Sec. 633. Travel and transportation allowances for transportation of 
                            family members incident to illness or 
                            injury of members.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Military Survivor Benefit Plan beneficiaries under insurable 
                            interest coverage.
Sec. 642. Retroactive payment of additional death gratuity for certain 
                            members not previously covered.
Sec. 643. Equity in computation of disability retired pay for reserve 
                            component members wounded in action.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Treatment of price surcharges of tobacco products and certain 
                            other merchandise sold at commissary 
                            stores.
Sec. 652. Limitation on use of Department of Defense lease authority to 
                            undermine commissaries and exchanges and 
                            other morale, welfare, and recreation 
                            programs and nonappropriated fund 
                            instrumentalities.
Sec. 653. Use of nonappropriated funds to supplement or replace 
                            appropriated funds for construction of 
                            facilities of exchange stores system and 
                            other nonappropriated fund 
                            instrumentalities, military lodging 
                            facilities, and community facilities.
Sec. 654. Report on cost effectiveness of purchasing commercial 
                            insurance for commissary and exchange 
                            facilities and facilities of other morale, 
                            welfare, and recreation programs and 
                            nonappropriated fund instrumentalities.

                       Subtitle F--Other Matters

Sec. 661. Repeal of annual reporting requirement regarding effects of 
                            recruitment and retention initiatives.
Sec. 662. Pilot project regarding providing golf carts accessible for 
                            disabled persons at military golf courses.
Sec. 663. Enhanced authority to remit or cancel indebtedness of members 
                            of the Armed Forces incurred on active 
                            duty.

                   TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual 
                            assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care 
                            for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening.
Sec. 704. Prohibition on increases in certain health care costs for 
                            members of the uniformed services.
Sec. 705. Services of mental health counselors.
Sec. 706. Demonstration project on coverage of selected over-the-
                            counter medications under the pharmacy 
                            benefit program.
Sec. 707. Requirement to reimburse certain travel expenses of certain 
                            beneficiaries covered by TRICARE for life.
Sec. 708. Inflation adjustment of differential payments to children's 
                            hospitals participating in TRICARE program.
Sec. 709. Expanded eligibility of Selected Reserve members under 
                            TRICARE program.
Sec. 710. Extension to TRICARE of medicare prohibition of financial 
                            incentives not to enroll in group health 
                            plan.

                    Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military 
                            health care.
Sec. 712. Study and plan relating to chiropractic health care services.
Sec. 713. Comptroller General study and report on Defense Health 
                            Program.
Sec. 714. Transfer of custody of the Air Force Health Study assets to 
                            Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of Reserve 
                            Components to retain civilian health care 
                            coverage.

                       Subtitle C--Other Matters

Sec. 721. Costs of incentive payments to employees for TRICARE 
                            enrollment made unallowable for 
                            contractors.
Sec. 722. Requirement for military medical personnel to be trained in 
                            preservation of remains.

           Subtitle D--Pharmacy Benefits Program Improvements

Sec. 731. TRICARE pharmacy program cost-share requirements.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements Management Certification Training Program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report 
                            requirements.
Sec. 804. Quarterly updates on implementation of acquisition reform in 
                            the Department of Defense.
Sec. 805. Establishment of defense challenge process for critical cost 
                            growth threshold breaches in major defense 
                            acquisition programs.
Sec. 806. Market research required for major defense acquisition 
                            programs before proceeding to Milestone B.

             Subtitle B--Acquisition Policy and Management

Sec. 811. Applicability of statutory executive compensation cap made 
                            prospective.
Sec. 812. Prohibition on procurement from beneficiaries of foreign 
                            subsidies.
Sec. 813. Time-certain development for Department of Defense 
                            information technology business systems.
Sec. 814. Establishment of Panel on Contracting Integrity.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 821. Extension of special temporary contract closeout authority.
Sec. 822. Limitation on contracts for the acquisition of certain 
                            services.
Sec. 823. Use of Federal supply schedules by State and local 
                            governments for goods and services for 
                            recovery from natural disasters, terrorism, 
                            or nuclear, biological, chemical, or 
                            radiological attack.
Sec. 824. Waivers to extend task order contracts for advisory and 
                            assistance services.
Sec. 825. Enhanced access for small business.
Sec. 826. Procurement goal for Hispanic-serving institutions.
Sec. 827. Prohibition on defense contractors requiring licenses or fees 
                            for use of military likenesses and 
                            designations.

      Subtitle D--United States Defense Industrial Base Provisions

Sec. 831. Protection of strategic materials critical to national 
                            security.
Sec. 832. Strategic Materials Protection Board.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Standardization of statutory references to ``national 
                            security system'' within laws applicable to 
                            Department of Defense.
Sec. 902. Correction of reference to predecessor of Defense Information 
                            Systems Agency.
Sec. 903. Addition to membership of specified council.
Sec. 904. Consolidation and standardization of authorities relating to 
                            Department of Defense Regional Centers for 
                            Security Studies.
Sec. 905. Redesignation of the Department of the Navy as the Department 
                            of the Navy and Marine Corps.

                      Subtitle B--Space Activities

Sec. 911. Designation of successor organizations for the disestablished 
                            Interagency Global Positioning Executive 
                            Board.
Sec. 912. Extension of authority for pilot program for provision of 
                            space surveillance network services to non-
                            United States Government entities.
Sec. 913. Operationally Responsive Space.

             Subtitle C--Chemical Demilitarization Program

Sec. 921. Transfer to Secretary of the Army of responsibility for 
                            Assembled Chemical Weapons Alternatives 
                            Program.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
                            site versus on-site treatment and disposal 
                            of hydrolysate derived from neutralization 
                            of VX nerve gas at Newport Chemical Depot, 
                            Indiana.
Sec. 923. Sense of Congress regarding the safe and expeditious disposal 
                            of chemical weapons.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Repeal of termination of authority of Secretary of Defense to 
                            engage in commercial activities as security 
                            for intelligence collection activities 
                            abroad.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
                            2006.
Sec. 1003. Increase in fiscal year 2006 general transfer authority.
Sec. 1004. United States contribution to NATO common-funded budgets in 
                            fiscal year 2007.
Sec. 1005. Report on budgeting for fluctuations in fuel cost rates.
Sec. 1006. Reduction in authorizations due to savings resulting from 
                            lower-than-expected inflation.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Transfer of naval vessels to foreign nations based upon 
                            vessel class.
Sec. 1012. Overhaul, repair, and maintenance of vessels in foreign 
                            shipyards.
Sec. 1013. Report on options for future lease arrangement for Guam 
                            Shipyard.
Sec. 1014. Shipbuilding Industrial Base Improvement Program.
Sec. 1015. Transfer of operational control of certain patrol coastal 
                            ships to Coast Guard.
Sec. 1016. Limitation on leasing of foreign-built vessels.
Sec. 1017. Overhaul, repair, and maintenance of vessels carrying 
                            Department of Defense cargo.
Sec. 1018. Riding gang member documentation requirement.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Restatement in title 10, United States Code, and revision of 
                            Department of Defense authority to provide 
                            support for counter-drug activities of 
                            Federal, State, local, and foreign law 
                            enforcement agencies.
Sec. 1022. Restatement in title 10, United States Code, and revision of 
                            Department of Defense authority to provide 
                            support for counter-drug activities of 
                            certain foreign governments.
Sec. 1023. Extension of authority to support unified counterdrug and 
                            counterterrorism campaign in Colombia.
Sec. 1024. Continuation of reporting requirement regarding Department 
                            of Defense expenditures to support foreign 
                            counter-drug activities.
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan 
                            and South and Central Asian regions.

                       Subtitle D--Other Matters

Sec. 1031. Revision to authorities relating to Commission on the 
                            implementation of the New Strategic Posture 
                            of the United States.
Sec. 1032. Enhancement to authority to pay rewards for assistance in 
                            combating terrorism.
Sec. 1033. Report on assessment process of Chairman of the Joint Chiefs 
                            of Staff relating to Global War on 
                            Terrorism.
Sec. 1034. Presidential report on improving interagency support for 
                            United States 21st century national 
                            security missions.
Sec. 1035. Quarterly reports on implementation of 2006 Quadrennial 
                            Defense Review Report.
Sec. 1036. Increased hunting and fishing opportunities for members of 
                            the Armed Forces, retired members, and 
                            disabled veterans .
Sec. 1037. Technical and clerical amendments.
Sec. 1038. Database of emergency response capabilities.
Sec. 1039. Information on certain criminal investigations and 
                            prosecutions.
Sec. 1040. Date for final report of EMP Commission.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Increase in authorized number of defense intelligence senior 
                            executive service employees.
Sec. 1102. Authority for Department of Defense to pay full replacement 
                            value for personal property claims of 
                            civilians.
Sec. 1103. Accrual of annual leave for members of the uniformed 
                            services performing dual employment.
Sec. 1104. Death gratuity authorized for Federal employees.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined 
                            operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing 
                            agreements to lend certain military 
                            equipment to foreign forces in Iraq and 
                            Afghanistan for personnel protection and 
                            survivability.
Sec. 1203. Recodification and revision to law relating to Department of 
                            Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism 
                            Fellowship Program.
Sec. 1205. Capstone overseas field studies trips to People's Republic 
                            of China and Republic of China on Taiwan.
Sec. 1206. Military educational exchanges between senior officers and 
                            officials of the United States and Taiwan.

     Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. Procurement restrictions against foreign persons that 
                            transfer certain defense articles and 
                            services to the People's Republic of China.

                       Subtitle C--Other Matters

Sec. 1221. Execution of the President's policy to make available to 
                            Taiwan diesel electric submarines.

  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. Temporary authority to waive limitation on funding for 
                            chemical weapons destruction facility in 
                            Russia.
Sec. 1304. National Academy of Sciences study.

            TITLE XIV--HOMELAND DEFENSE TECHNOLOGY TRANSFER

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Creation of Homeland Defense Technology Transfer Consortium.

  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            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.

                            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 
                            2004 and 2005 projects.

                         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.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Family housing.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorized base closure and realignment activities funded 
                            through Department of Defense Base Closure 
                            Account 2005.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Modification of authority to carry out certain fiscal year 
                            2006 projects.

   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 FORCES 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. Effective date.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Sec. 2801. Increase in maximum annual amount authorized to be obligated 
                            for emergency military construction.
Sec. 2802. Applicability of local comparability of room pattern and 
                            floor area requirements to construction, 
                            acquisition, and improvement to military 
                            unaccompanied housing.
Sec. 2803. Authority to use proceeds from sale of military family 
                            housing to support military housing 
                            privatization initiative.
Sec. 2804. Repeal of special requirement for military construction 
                            contracts on Guam.
Sec. 2805. Congressional notification of cancellation ceiling for 
                            Department of Defense energy savings 
                            performance contracts.
Sec. 2806. Expansion of authority to convey property at military 
                            installations to support military 
                            construction.
Sec. 2807. Pilot projects for acquisition or construction of military 
                            unaccompanied housing.
Sec. 2808. Consideration of alternative and more efficient uses for 
                            general officer and flag officer quarters 
                            in excess of 6,000 square feet.
Sec. 2809. Repeal of temporary minor military construction program.
Sec. 2810. One-year extension of temporary, limited authority to use 
                            operation and maintenance funds for 
                            construction projects outside the United 
                            States.

        Subtitle B--Real Property and Facilities Administration

Sec. 2821. Consolidation of Department of Defense authorities regarding 
                            granting of easements for rights-of-way.
Sec. 2822. Authority to grant restrictive easements in connection with 
                            land conveyances.
Sec. 2823. Maximum term of leases for structures and real property 
                            relating to structures in foreign countries 
                            needed for purposes other than family 
                            housing.
Sec. 2824. Consolidation of laws relating to transfer of Department of 
                            Defense real property within the department 
                            and to other Federal agencies.
Sec. 2825. Congressional notice requirements in advance of acquisition 
                            of land by condemnation for military 
                            purposes.

                Subtitle C--Base Closure and Realignment

Sec. 2831. Treatment of lease proceeds from military installations 
                            approved for closure or realignment after 
                            January 1, 2005.

                      Subtitle D--Land Conveyances

Sec. 2841. Land conveyance, Naval Air Station, Barbers Point, Hawaii.
Sec. 2842. Modification of land acquisition authority, Perquimans 
                            County, North Carolina.
Sec. 2843. Land conveyance, Radford Army Ammunition Plant, Pulaski 
                            County, Virginia.

                       Subtitle E--Other Matters

Sec. 2851. Availability of community planning assistance relating to 
                            encroachment of civilian communities on 
                            military facilities used for training by 
                            the Armed Forces.
Sec. 2852. Prohibitions against making certain military airfields or 
                            facilities available for use by civil 
                            aircraft.
Sec. 2853. Naming housing facility at Fort Carson, Colorado, in honor 
                            of Joel Hefley, a member of the House of 
                            Representatives.
Sec. 2854. Naming Navy and Marine Corps Reserve Center at Rock Island, 
                            Illinois, in honor of Lane Evans, a member 
                            of the House of Representatives.
Sec. 2855. Naming of research laboratory at Air Force Rome Research 
                            Site, Rome, New York, in honor of Sherwood 
                            L. Boehlert, a member of the House of 
                            Representatives.

 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 cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Plan for transformation of National Nuclear Security 
                            Administration nuclear weapons complex.
Sec. 3112. Extension of Facilities and Infrastructure Recapitalization 
                            Program.
Sec. 3113. Utilization of contributions to Global Threat Reduction 
                            Initiative.
Sec. 3114. Utilization of contributions to Second Line of Defense 
                            program.
Sec. 3115. Two-year extension of authority for appointment of certain 
                            scientific, engineering, and technical 
                            personnel.
Sec. 3116. National Academy of Sciences study of quantification of 
                            margins and uncertainty methodology for 
                            assessing and certifying the safety and 
                            reliability of the nuclear stockpile.
Sec. 3117. Consolidation of counterintelligence programs of Department 
                            of Energy and National Nuclear Security 
                            Administration.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously 
                            authorized disposals from National Defense 
                            Stockpile.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2007.
Sec. 3502. Limitation on transfer of Maritime Security Fleet operating 
                            agreements.
Sec. 3503. Applicability to certain Maritime Administration vessels of 
                            limitations on overhaul, repair, and 
                            maintenance of vessels in foreign 
                            shipyards.
Sec. 3504. Vessel transfer authority.
Sec. 3505. United States Merchant Marine Academy graduates: alternate 
                            service requirements.
Sec. 3506. United States Merchant Marine Academy graduates: service 
                            obligation performance reporting 
                            requirement.
Sec. 3507. Temporary authority to transfer obsolete combatant vessels 
                            to Navy for disposal.
Sec. 3508. Temporary requirement to maintain Ready Reserve Force.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

    For purposes of this Act, the term ``congressional defense 
committees'' has the meaning given that term in section 101(a)(16) of 
title 10, United States Code.

            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.

                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Family of Medium Tactical 
                            Vehicles.
Sec. 112. Multiyear procurement authority for MH-60R helicopters and 
                            mission equipment.
Sec. 113. Funding profile for Modular Force Initiative of the Army.
Sec. 114. Bridge to Future Networks program.

                       Subtitle C--Navy Programs

Sec. 121. Attack submarine force structure.
Sec. 122. Adherence to Navy cost estimates for CVN-21 class of aircraft 
                            carriers.
Sec. 123. Adherence to Navy cost estimates for LHA Replacement 
                            amphibious assault ship program.
Sec. 124. Adherence to Navy cost estimates for San Antonio (LPD-17) 
                            class amphibious ship program.
Sec. 125. Multiyear procurement authority for V-22 tiltrotor aircraft 
                            program.
Sec. 126. Quality control in procurement of ship critical safety items 
                            and related services.
Sec. 127. DD(X) Next-Generation Destroyer program.
Sec. 128. Sense of Congress that the Navy make greater use of nuclear-
                            powered propulsion systems in its future 
                            fleet of surface combatants.

                     Subtitle D--Air Force Programs

Sec. 131. Requirement for B-52 force structure.
Sec. 132. Strategic airlift force structure.
Sec. 133. Limitation on retirement of U-2 aircraft.
Sec. 134. Multiyear procurement authority for F-22A Raptor fighter 
                            aircraft.
Sec. 135. Limitation on retirement of KC-135E aircraft during fiscal 
                            year 2007.
Sec. 136. Limitation on retirement of F-117A aircraft during fiscal 
                            year 2007.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for procurement for the Army as follows:
            (1) For aircraft, $3,714,783,000.
            (2) For missiles, $1,490,898,000.
            (3) For weapons and tracked combat vehicles, 
        $2,335,004,000.
            (4) For ammunition, $1,691,475,000.
            (5) For other procurement, $6,970,079,000.
            (6) For National Guard Equipment, $318,000,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2007 for procurement for the Navy as follows:
            (1) For aircraft, $10,760,671,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,517,020,000.
            (3) For shipbuilding and conversion, $11,183,153,000.
            (4) For other procurement, $5,042,766,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2007 for procurement for the Marine Corps in the amount 
of $1,223,813,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2007 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $758,793,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for procurement for the Air Force as follows:
            (1) For aircraft, $13,042,630,000.
            (2) For ammunition, $1,076,749,000.
            (3) For missiles, $4,171,495,000.
            (4) For other procurement, $15,428,636,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for Defense-wide procurement in the amount of $2,856,461,000.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR FAMILY OF MEDIUM TACTICAL 
              VEHICLES.

    (a) Authority.--The Secretary of the Army may, in accordance with 
section 2306b of title 10, United States Code, enter into a multiyear 
contract for the Family of Medium Tactical Vehicles (FMTV) program 
beginning with the fiscal year 2008 program year.
    (b) Contract Requirement.--Any multiyear contract or extension 
entered into under this section for procurement under the Family of 
Medium Tactical Vehicles program shall provide for incorporation of 
improvements in the areas of performance capability and survivability 
from lessons learned from operations involving the Global War on 
Terrorism (as well as from product improvement programs carried out for 
the Family of Medium Tactical Vehicles program)..
    (c) Limitation on Term of Contract.--Notwithstanding subsection (k) 
of section 2306b of title 10, United States Code, a contract or 
extension under this section may not be for a period in excess of three 
program years.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR MH-60R HELICOPTERS AND 
              MISSION EQUIPMENT.

    (a) MH-60R Helicopter.--Subject to subsection (c), the Secretary of 
the Army, acting as executive agent for the Department of the Navy, may 
enter into a multiyear contract for the procurement of 144 MH-60R 
helicopters.
    (b) MH-60R Helicopter Mission Equipment.--Subject to subsection 
(c), the Secretary of the Army, acting as executive agent for the 
Department of the Navy, may enter into a multiyear contract for the 
procurement of MH-60R helicopter mission equipment for the helicopters 
covered by a multiyear contract under subsection (a).
    (c) Contract Requirements.--Any multiyear contract under this 
section--
            (1) shall be entered into in accordance with section 2306b 
        of title 10, United States Code, and shall commence with the 
        fiscal year 2007 program year; and
            (2) shall provide that any obligation of the United States 
        to make a payment under the contract is subject to the 
        availability of appropriations for that purpose.
    (d) Cost Limitation.--The combined value for the contracts 
authorized by subsections (a) and (b) may not exceed $2,600,000,000, 
and the average unit cost per helicopter under those contracts may not 
exceed $37,790,000.

SEC. 113. FUNDING PROFILE FOR MODULAR FORCE INITIATIVE OF THE ARMY.

    The Secretary of the Army shall set forth in the budget 
presentation materials of the Army submitted to Congress in support of 
the President's budget for any fiscal year after fiscal year 2007, and 
in other relevant materials submitted to Congress with respect to the 
budget of the Army for any such fiscal year, all amounts for 
procurement for the M1A2 Abrams tank System Enhancement Program (SEP) 
and for the Bradley A3 fighting vehicle as elements within the amounts 
requested for the Modular Force Initiative of the Army, in accordance 
with the report of the Army titled ``The Army Modular Force 
Initiative'', submitted to Congress in March 2006.

SEC. 114. BRIDGE TO FUTURE NETWORKS PROGRAM.

    (a) Limitation on Fiscal Year 2007 Amount.--Of the amount 
authorized to be appropriated for the Army for fiscal year 2007 for 
Other Procurement, Army, that is available for the program of the Army 
designated as the Bridge to Future Networks, not more than 70 percent 
shall be made available for obligation until the Secretary of the Army 
submits to the congressional defense committees a report on that 
program that includes the matters specified in subsection (b).
    (b) Matters to Be Included.--The report under subsection (a) shall 
include the following:
            (1) An analysis of how the Joint Network Node (JNN) element 
        of the Bridge to Future Networks program and the Warfighter 
        Information Network-Tactical (WIN-T) program will fit together, 
        including an analysis of whether there are opportunities to 
        leverage technologies and equipment from the Joint Network Node 
        program as part of the development of the Warfighter 
        Information Network-Tactical program.
            (2) A description of the extent to which components of the 
        Joint Network Node and the Warfighter Information Network-
        Tactical programs could be used together as elements of a 
        single tactical network.
            (3) A description of the strategy of the Army for 
        completing the systems engineering necessary to ensure the end-
        to-end interoperability of a single tactical network referred 
        to in paragraph (2).

                       Subtitle C--Navy Programs

SEC. 121. ATTACK SUBMARINE FORCE STRUCTURE.

    Section 5062 of title 10, United States Code, is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) The naval combat forces of the Navy shall include not less 
than 48 operational attack submarines. For purposes of this subsection, 
an operational attack submarine includes an attack submarine that is 
temporarily unavailable for worldwide deployment due to routine or 
scheduled maintenance or repair.''.

SEC. 122. ADHERENCE TO NAVY COST ESTIMATES FOR CVN-21 CLASS OF AIRCRAFT 
              CARRIERS.

    (a) Limitation.--
            (1) Lead ship.--The total amount obligated or expended from 
        funds appropriated or otherwise made available for Shipbuilding 
        and Conversion, Navy, or for any other procurement account, for 
        the aircraft carrier designated as CVN-21 may not exceed 
        $10,500,000,000 (as adjusted pursuant to subsection (b)).
            (2) Follow-on ships.--The total amount obligated or 
        expended from funds appropriated or otherwise made available 
        for Shipbuilding and Conversion, Navy, or for any other 
        procurement account, for the construction of any ship that is 
        constructed in the CVN-21 class of aircraft carriers after the 
        lead ship of that class may not exceed $8,100,000,000 (as 
        adjusted pursuant to subsection (b)).
    (b) Adjustment of Limitation Amount.--The Secretary of the Navy may 
adjust the amount set forth in subsection (a) for any ship constructed 
in the CVN-21 class of aircraft carriers by the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, State, or 
        local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-delivery costs 
        incurred for that ship.
            (4) The amounts of increases or decreases in costs of that 
        ship that are attributable to insertion of new technology into 
        that ship, as compared to the technology baseline as it was 
        defined in the approved acquisition program baseline estimate 
        of December 2005.
    (c) Limitation on Technology Insertion Cost Adjustment.--The 
Secretary of the Navy may use the authority under paragraph (4) of 
subsection (b) to adjust the amount set forth in subsection (a) for a 
ship referred to in that subsection with respect to insertion of new 
technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology would lower the life-cycle cost of the ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology is required to meet an emerging threat and the 
        Secretary of Defense certifies to those committees that such 
        threat poses grave harm to national security.
    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall submit to 
        the congressional defense committees each year, at the same 
        time that the budget is submitted under section 1105(a) of 
        title 31, United States Code, for the next fiscal year, written 
        notice of any change in the amount set forth in subsection (a) 
        during the preceding fiscal year that the Secretary has 
        determined to be associated with a cost referred to in 
        subsection (b).
            (2) Effective date.--The requirement in paragraph (1) shall 
        become effective with the budget request for the year of 
        procurement of the first ship referred to in subsection (a).

SEC. 123. ADHERENCE TO NAVY COST ESTIMATES FOR LHA REPLACEMENT 
              AMPHIBIOUS ASSAULT SHIP PROGRAM.

    (a) Limitation.--The total amount obligated or expended from funds 
appropriated or otherwise made available for Shipbuilding and 
Conversion, Navy, or for any other procurement account, for procurement 
of any ship that is constructed under the LHA Replacement (LHA(R)) 
amphibious assault ship program may not exceed $2,813,600,000 (as 
adjusted pursuant to subsection (b)).
    (b) Adjustment of Limitation Amount.--The Secretary of the Navy may 
adjust the amount set forth in subsection (a) for any ship constructed 
under the LHA Replacement amphibious assault ship program by the 
following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, State, or 
        local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-delivery costs 
        incurred for that ship.
            (4) The amounts of increases or decreases in costs of that 
        ship that are attributable to insertion of new technology into 
        that ship, as compared to the technology baseline as it was 
        defined at the development stage referred to as Milestone B.
    (c) Limitation on Technology Insertion Cost Adjustment.--The 
Secretary of the Navy may use the authority under paragraph (4) of 
subsection (b) to adjust the amount set forth in subsection (a) for a 
ship referred to in that subsection with respect to insertion of new 
technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology would lower the life-cycle cost of the ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology is required to meet an emerging threat and the 
        Secretary of Defense certifies to those committees that such 
        threat poses grave harm to national security.
    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall submit to 
        the congressional defense committees each year, at the same 
        time that the budget is submitted under section 1105(a) of 
        title 31, United States Code, for the next fiscal year, written 
        notice of any change in the amount set forth in subsection (a) 
        during the preceding fiscal year that the Secretary has 
        determined to be associated with a cost referred to in 
        subsection (b).
            (2) Effective date.--The requirement in paragraph (1) shall 
        become effective with the budget request for the year of 
        procurement of the first ship referred to in subsection (a).

SEC. 124. ADHERENCE TO NAVY COST ESTIMATES FOR SAN ANTONIO (LPD-17) 
              CLASS AMPHIBIOUS SHIP PROGRAM.

    (a) Limitation.--
            (1) Procurement cost.--The total amount obligated or 
        expended from funds appropriated or otherwise made available 
        for Shipbuilding and Conversion, Navy, or for any other 
        procurement account, for the San Antonio-class amphibious ships 
        designated as LPD-18, LPD-19, LPD-20, LPD-21, LPD-22, LPD-23, 
        LPD-24, and LPD-25 may not exceed the amount for each such 
        vessel specified in paragraph (2) (those specified amounts 
        being the estimated total procurement end cost of those 
        vessels, respectively, in the fiscal year 2007 budget):
            (2) Specified cost limit by vessel.--The limitation under 
        this subsection for each vessel specified in paragraph (1) is 
        the following:
                    (A) For the LPD-18 ship, $1,111,310,000 (as 
                adjusted pursuant to subsection (b)).
                    (B) For the LPD-19 ship, $1,137,400,000 (as 
                adjusted pursuant to subsection (b)).
                    (C) For the LPD-20 ship, $1,004,600,000 (as 
                adjusted pursuant to subsection (b)).
                    (D) For the LPD-21 ship, $1,126,966,000 (as 
                adjusted pursuant to subsection (b)).
                    (E) For the LPD-22 ship, $1,246,736,000 (as 
                adjusted pursuant to subsection (b)).
                    (F) For the LPD-23 ship, $1,191,230,000 (as 
                adjusted pursuant to subsection (b)).
                    (G) For the LPD-24 ship, $1,333,001,000 (as 
                adjusted pursuant to subsection (b)).
                    (H) For the LPD-25 ship, $1,671,800,000 (as 
                adjusted pursuant to subsection (b)).
    (b) Adjustment of Limitation Amounts.--The Secretary of the Navy 
may adjust the amount set forth in subsection (a) for any ship 
specified in that subsection by the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, State, or 
        local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-delivery costs 
        incurred for that ship.
            (4) The amounts of increases or decreases in costs of that 
        ship that are attributable to insertion of new technology into 
        that ship, as compared to the technology built into the U.S.S. 
        San Antonio (LPD-17), the lead ship of the LPD-17 class.
    (c) Limitation on Technology Insertion Cost Adjustment.--The 
Secretary of the Navy may use the authority under paragraph (4) of 
subsection (b) to adjust the amount set forth in subsection (a) for any 
LPD-17 class ship with respect to insertion of new technology into that 
ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology would lower the life-cycle cost of the ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology is required to meet an emerging threat and the 
        Secretary of Defense certifies to those committees that such 
        threat poses grave harm to national security.
    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall submit to 
        the congressional defense committees each year, at the same 
        time that the budget is submitted under section 1105(a) of 
        title 31, United States Code, for the next fiscal year, written 
        notice of any change in the amount set forth in subsection (a) 
        during the preceding fiscal year that the Secretary has 
        determined to be associated with a cost referred to in 
        subsection (b).
            (2) Effective date.--The requirement in paragraph (1) shall 
        become effective with the budget request for the year of 
        procurement of the first ship referred to in subsection (a).

SEC. 125. MULTIYEAR PROCUREMENT AUTHORITY FOR V-22 TILTROTOR AIRCRAFT 
              PROGRAM.

    The Secretary of the Navy, in accordance with section 2306b of 
title 10, United States Code, and acting as executive agent for the 
Secretary of the Air Force and the commander of the United States 
Special Operations Command, may enter into a multiyear contract, 
beginning with the fiscal year 2008 program year, for procurement of V-
22 tiltrotor aircraft. The total number of aircraft procured through a 
multiyear contract under this section may not exceed 211, of which not 
more than 185 may be in the MV-22 configuration and not more than 26 
may be in the CV-22 configuration.

SEC. 126. QUALITY CONTROL IN PROCUREMENT OF SHIP CRITICAL SAFETY ITEMS 
              AND RELATED SERVICES.

    (a) In General.--
            (1) Quality control policy.--Chapter 633 of title 10, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 7317. Ship critical safety items and related services: quality 
              control in procurement
    ``(a) Quality Control Policy.--The Secretary of Defense shall 
prescribe in regulations a quality control policy for the procurement 
of--
            ``(1) ship critical safety items; and
            ``(2) modifications, repair, and overhaul of ship critical 
        safety items.
    ``(b) Content of Regulations.--The policy set forth in the 
regulations under subsection (a) shall include the following 
requirements:
            ``(1) That the head of the design control activity for ship 
        critical safety items establish processes to identify and 
        manage the procurement, modification, repair, and overhaul of 
        ship critical safety items.
            ``(2) That the head of the contracting activity for a ship 
        critical safety item enter into a contract for the procurement, 
        modification, repair, or overhaul of such item only with a 
        source that is on a qualified manufacturers list or is approved 
        by the design control activity in accordance with section 2319 
        of this title.
            ``(3) That the ship critical safety items delivered, and 
        the services performed with respect to ship critical safety 
        items, meet all technical and quality requirements specified by 
        the design control activity.
    ``(c) Definitions.--In this section:
            ``(1) The term `ship critical safety item' means any part, 
        assembly, or support equipment of a vessel that contains a 
        critical characteristic the failure, malfunction, or absence of 
        which may cause a catastrophic or critical failure resulting in 
        loss or serious damage to the vessel or unacceptable risk of 
        personal injury or loss of life.
            ``(2) The term `design control activity', with respect to a 
        ship critical safety item, means the systems command of a 
        military department that is specifically responsible for 
        ensuring the seaworthiness of a ship system or equipment in 
        which the item is to be used.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``7317.  Ship critical safety items and related services: quality 
                            control in procurement.''.
    (b) Conforming Amendments.--Section 2319 of title 10, United States 
Code, is amended--
            (1) in subsection (c)(3), by inserting ``or ship critical 
        safety item'' after ``aviation critical safety item''; and
            (2) In subsection (g)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3);
                    (B) by inserting after paragraph (1) the following 
                new paragraph (2):
            ``(2) The term `ship critical safety item' has the meaning 
        given that term in section 7317(c) of this title.''; and
                    (C) in paragraph (3) (as redesignated)--
                            (i) by inserting ``or a ship critical 
                        safety item'' after ``aviation critical safety 
                        item'' the first place it appears; and
                            (ii) by inserting ``, or the seaworthiness 
                        of a ship system or equipment,'' after 
                        ``equipment''.

SEC. 127. DD(X) NEXT-GENERATION DESTROYER PROGRAM.

    (a) Funding Authorized.--Of the amount authorized to be 
appropriated by section 102(a)(3) for fiscal year 2007 for Shipbuilding 
and Conversion, Navy, $2,568,000,000 is available for the DD(X) Next-
Generation Destroyer program.
    (b) Contract Authority.--The Secretary of the Navy may enter into 
two contracts during fiscal year 2007 for the DD(X) Next-Generation 
Destroyer program. The contracts shall be entered into with two 
different shipbuilders. One such contract shall provide for procurement 
of a DD(X) Next-Generation destroyer, including detail design and 
construction. The other contract shall provide only for detail design 
of a DD(X) Next-Generation destroyer. The two contracts shall be 
awarded simultaneously.

SEC. 128. SENSE OF CONGRESS THAT THE NAVY MAKE GREATER USE OF NUCLEAR-
              POWERED PROPULSION SYSTEMS IN ITS FUTURE FLEET OF SURFACE 
              COMBATANTS.

    (a) Findings.--Congress makes the following findings:
            (1) Securing and maintaining access to affordable and 
        plentiful sources of energy is a vital national security 
        interest for the United States. 
            (2) The Nation's dependence upon foreign oil is a threat to 
        national security due to the inherently volatile nature of the 
        global oil market and the political instability of some of the 
        world's largest oil producing states.
            (3) Given the recent increase in the cost of crude oil, 
        which cannot realistically be expected to improve over the long 
        term, other energy sources must be seriously considered.
    (b) Sense of Congress.--In light of the findings in subsection (a), 
it is the sense of Congress that the Navy should make greater use of 
alternative technologies, including nuclear power, as a means of vessel 
propulsion for its future fleet of surface combatants. 

                     Subtitle D--Air Force Programs

SEC. 131. REQUIREMENT FOR B-52 FORCE STRUCTURE.

    (a) Requirement.--Before the date specified in subsection (b), the 
Secretary of the Air Force--
            (1) may not retire any B-52 aircraft, other than the 
        aircraft with tail number 61-0025; and
            (2) shall maintain not less than 44 such aircraft as 
        combat-coded aircraft.
    (b) Termination.--For purposes of subsection (a), the date 
specified in this subsection is the earlier of--
            (1) January 1, 2018; and
            (2) the date as of which a long-range strike replacement 
        aircraft with equal or greater capability than the B-52H model 
        aircraft has attained initial operational capability status.

SEC. 132. STRATEGIC AIRLIFT FORCE STRUCTURE.

    (a) Required Force Structure.--
            (1) Minimum number of aircraft.--Effective October 1, 2008, 
        the Secretary of the Air Force shall maintain a total aircraft 
        inventory of strategic airlift aircraft of not less than 299 
        aircraft.
            (2) Definitions.--For purposes of this subsection:
                    (A) The term ``strategic airlift aircraft'' means 
                an aircraft that has a cargo capacity of at least 
                150,000 pounds and that is capable of transporting 
                outsized cargo an unrefueled range of at least 2,400 
                nautical miles.
                    (B) The term ``outsized cargo'' means any single 
                item of equipment that exceeds 1,090 inches in length, 
                117 inches in width, or 105 inches in height.
    (b) Repeal of Limitation on Retirement of C-5 Aircraft.--Section 
132 of the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136; 117 Stat. 1411) is repealed.

SEC. 133. LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

    (a) Fiscal Year 2007.-- The Secretary of the Air Force may not 
retire any U-2 aircraft of the Air Force in fiscal year 2007.
    (b) Years After Fiscal Year 2007.--After fiscal year 2007, the 
Secretary of the Air Force may retire a U-2 aircraft only if the 
Secretary of Defense certifies to Congress that the U-2 intelligence, 
surveillance, and reconnaissance (ISR) capability provided by the U-2 
aircraft no longer contributes to mitigating any gaps in ISR 
capabilities identified in the 2006 Quadrennial Defense Review. No 
action may be taken by the Department of Defense to retire (or to 
prepare to retire) any U-2 aircraft--
            (1) before such a certification is submitted to Congress; 
        or
            (2) during the 60-day period beginning on the date on which 
        such a certification is submitted.

SEC. 134. MULTIYEAR PROCUREMENT AUTHORITY FOR F-22A RAPTOR FIGHTER 
              AIRCRAFT.

    (a) Multiyear Authority.--The Secretary of the Air Force may enter 
into a multiyear contract for the procurement of up to 60 F-22A Raptor 
fighter aircraft beginning with the 2007 program year,
    (b) Compliance With Law Applicable to Multiyear Contracts.--A 
contract under subsection (a) for the procurement of F-22A aircraft 
shall be entered into in accordance with section 2306b of title 10, 
United States Code, except that, notwithstanding subsection (k) of that 
section, such a contract may not be for a period in excess of three 
program years.
    (c) Required Certifications.--In the case of a contract under 
subsection (a) for the procurement of F-22A aircraft, 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.
    (d) Notice-and-Wait Requirement.--Upon submission to Congress of a 
certification referred to in subsection (c) with respect to a proposed 
contract under subsection (a) for the procurement of F-22A aircraft, 
the contract may then be entered into only after a period of 30 days 
has elapsed after the date of the submission of the certification.

SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AIRCRAFT DURING FISCAL 
              YEAR 2007.

    (a) Limitation.--The number of KC-135E aircraft retired by the 
Secretary of the Air Force during fiscal year 2007 may not exceed 29.
    (b) Treatment of Retired Aircraft.--The Secretary of the Air Force 
shall maintain each KC-135E aircraft that is retired by the Secretary 
after September 30, 2006, in a condition that would allow recall of 
that aircraft to future service in the Air Force Reserve, Air National 
Guard, or active forces aerial refueling force structure.

SEC. 136. LIMITATION ON RETIREMENT OF F-117A AIRCRAFT DURING FISCAL 
              YEAR 2007.

    (a) Limitation.--The number of F-117A aircraft retired by the 
Secretary of the Air Force during fiscal year 2007 may not exceed 10.
    (b) Treatment of Retired Aircraft.--The Secretary of the Air Force 
shall maintain each F-117A aircraft that is retired by the Secretary 
after September 30, 2006, in a condition that would allow recall of 
that aircraft to future service.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Alternate engine for Joint Strike Fighter.
Sec. 212. Extension of authority to award prizes for advanced 
                            technology achievements.
Sec. 213. Extension of Defense Acquisition Challenge Program.
Sec. 214. Future Combat Systems milestone review.
Sec. 215. Independent cost analyses for Joint Strike Fighter engine 
                            program.
Sec. 216. Dedicated amounts for implementing or evaluating DD(X) and 
                            CVN-21 proposals under Defense Acquisition 
                            Challenge Program.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.

                       Subtitle D--Other Matters

Sec. 231. Review of test and evaluation policies and practices to 
                            address emerging acquisition approaches.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $10,932,209,000.
            (2) For the Navy, $17,377,769,000.
            (3) For the Air Force, $24,810,041,000.
            (4) For Defense-wide activities, $20,944,559,000, of which 
        $181,520,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2007.--Of the amounts authorized to be appropriated 
by section 201, $11,735,555,000 shall be available for the Defense 
Science and Technology Program, including basic research, applied 
research, and advanced technology development projects.
    (b) Basic Research, Applied Research, and Advanced Technology 
Development Defined.--For purposes of this section, the term ``basic 
research, applied research, and advanced technology development'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1, 6.2, or 6.3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. ALTERNATE ENGINE FOR JOINT STRIKE FIGHTER.

    Of the funds authorized to be appropriated for the Departments of 
the Navy and Air Force for the system development and demonstration 
program for the Joint Strike Fighter, not less than $408,000,000 shall 
be obligated for continued development of an alternate engine for the 
Joint Strike Fighter.

SEC. 212. EXTENSION OF AUTHORITY TO AWARD PRIZES FOR ADVANCED 
              TECHNOLOGY ACHIEVEMENTS.

    Section 2374a(f) of title 10, United States Code, is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2010''.

SEC. 213. EXTENSION OF DEFENSE ACQUISITION CHALLENGE PROGRAM.

    (a) Extension.--Section 2359b of title 10, United States Code, is 
amended by striking subsection (j).
    (b) Confidentiality.--Such section is further amended in subsection 
(g)--
            (1) by amending the heading to read as follows: ``Conflicts 
        of Interest and Confidentiality.--''; and
            (2) by inserting before the period at the end the 
        following: ``and that the identity of any person or activity 
        submitting a challenge proposal is not disclosed outside the 
        Federal Government without the consent of the person or 
        activity''.

SEC. 214. FUTURE COMBAT SYSTEMS MILESTONE REVIEW.

    (a) Milestone Review Required.--After the preliminary design review 
of the Future Combat Systems program, but in no event later than the 
end of fiscal year 2008, the Secretary of Defense shall carry out a 
Defense Acquisition Board milestone review of the Future Combat Systems 
program. The milestone review shall include an assessment as to each of 
the following:
            (1) Whether the warfighter's needs are valid and can be 
        best met with the concept of the program.
            (2) Whether the concept of the program can be developed and 
        produced within existing resources.
            (3) Whether the program should continue.
    (b) Determinations to Be Made in Assessing Whether Program Should 
Continue.--In making the assessment required by subsection (a)(3), the 
Secretary shall make a determination with respect to each of the 
following:
            (1) Whether each critical technology for the program is at 
        least Technical Readiness Level 6.
            (2) For each system and network component of the program, 
        what the key design and technology risks are, based on System 
        Functional Reviews, Preliminary Design Reviews, and Technical 
        Readiness Levels.
            (3) Whether actual demonstrations, rather than simulations, 
        have shown that the concept of the program will work.
            (4) Whether actual demonstrations, rather than plans, have 
        shown that the software for the program is functional.
            (5) What the cost estimate for the program is.
            (6) What the affordability assessment for the program is, 
        based on that cost estimate.
    (c) Report.--The Secretary shall submit to the congressional 
defense committees a report on the findings and conclusions of the 
milestone review required by subsection (a). The report shall include, 
and display, each of the assessments required by subsection (a) and 
each of the determinations required by subsection (b).
    (d) Restriction on Funds Effective Fiscal 2009.--For fiscal years 
beginning with 2009, the Secretary may not obligate any funds for the 
Future Combat Systems program until after the report required by 
subsection (c) is submitted.

SEC. 215. INDEPENDENT COST ANALYSES FOR JOINT STRIKE FIGHTER ENGINE 
              PROGRAM.

    (a) Independent Cost Analyses.--A comprehensive and detailed cost 
analysis of the Joint Strike Fighter engine program shall be 
independently performed by the Comptroller General and by the Secretary 
of Defense, acting through the Cost Analysis Improvement Group of the 
Office of the Secretary of Defense. The cost analysis shall cover--
            (1) an alternative under which the aircraft are capable of 
        using the F135 engine only;
            (2) an alternative under which the aircraft are capable of 
        using either the F135 engine or the F136 engine, and is carried 
        out on a competitive basis; and
            (3) any other alternative, whether competitive or sole 
        source, that would reduce total life-cycle cost, improve 
        program schedule, or both.
    (b) Reports.--Not later than March 15, 2007, each official 
specified in subsection (a) shall independently submit to the 
congressional defense committees a report on the cost analysis carried 
out by that official under subsection (a). Each report shall include 
each of the following matters:
            (1) The key assumptions used in carrying out the cost 
        analysis.
            (2) The methodology and techniques used in carrying out the 
        cost analysis.
            (3) For each alternative under subsection (a)--
                    (A) a comparison of the life-cycle costs, including 
                costs in current and constant collars and a net-
                present-value analysis; and
                    (B) estimates of--
                            (i) supply, maintenance, and other 
                        operations manpower required to support the 
                        alternative;
                            (ii) the number of flight hours required to 
                        achieve engine maturity and in what year that 
                        is expected to be achieved; and
                            (iii) the total number of engines expected 
                        to be procured over the lifetime of the Joint 
                        Strike Fighter program.
            (4) The acquisition strategies that were used for, and the 
        experience with respect to cost, schedule, and performance 
        under past acquisition programs for engines for tactical 
        fighter aircraft, including the F-15, F-16, F-18, and F-22.
            (5) A comparison of the experiences under past engine 
        acquisition programs carried out on a sole-source basis, and 
        those carried out on a competitive basis, with respect to 
        performance, savings, maintainability, reliability, and 
        technical innovation.
            (6) Conclusions and recommendations.
    (c) Certification by Comptroller General.--In submitting the report 
required by subsection (b), the Comptroller General shall also submit a 
certification as to whether the Comptroller General had access to 
sufficient information to enable the Comptroller General to make 
informed judgments on the matters required to be included in the 
report.
    (d) Life-Cycle Costs Defined.--In this section, the term ``life-
cycle costs'' includes those elements of cost that would be considered 
for a life-cycle cost analysis for a major defense acquisition program, 
such as procurement of engines, procurement of spare engines, and 
procurement of engine components and parts, and also includes good-
faith estimates of routine engine costs, such as performance upgrades 
and component improvement, that historically have occurred in tactical 
fighter engine programs.

SEC. 216. DEDICATED AMOUNTS FOR IMPLEMENTING OR EVALUATING DD(X) AND 
              CVN-21 PROPOSALS UNDER DEFENSE ACQUISITION CHALLENGE 
              PROGRAM.

    (a) Amounts Required.--Of the amounts appropriated pursuant to the 
authorization of appropriations in section 201(4) for research, 
development, test, and evaluation, Defense-wide, $4,000,000 shall be 
available only to implement or evaluate challenge proposals specified 
in subsection (b).
    (b) Challenge Proposals Covered.--A challenge proposal referred to 
in subsection (a) is a proposal under the Defense Acquisition Challenge 
Program established by section 2359b of title 10, United States Code, 
that relates to--
            (1) the DD(X) next-generation destroyer program; or
            (2) the CVN-21 next-generation aircraft carrier program.

                 Subtitle C--Ballistic Missile Defense

SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

    Upon approval by the Secretary of Defense, funds authorized to be 
appropriated for fiscal years 2007 and 2008 for research, development, 
test, and evaluation for the Missile Defense Agency may be used for the 
development and fielding of ballistic missile defense capabilities.

SEC. 222. LIMITATION ON USE OF FUNDS FOR SPACE-BASED INTERCEPTOR.

    (a) Limitation.--No funds appropriated or other wise made available 
to the Department of Defense may be obligated or expended for the 
testing or deployment of a space-based interceptor until 90 days after 
the date on which a report described in subsection (c) is submitted.
    (b) Space-Based Interceptor Defined.--For purposes of this section, 
the term ``space-based interceptor'' means a kinetic or directed energy 
weapon that is stationed on a satellite or orbiting platform and that 
is intended to destroy another satellite in orbit or a ballistic 
missile launched from earth.
    (c) Report.--A report described in this subsection is a report 
prepared by the Director of the Missile Defense Agency and submitted to 
the congressional defense committees containing the following:
            (1) A description of the essential components of a proposed 
        space-based interceptor system, including a description of how 
        the system proposed would enhance or complement other missile 
        defense systems.
            (2) An estimate of the acquisition and life-cycle cost of 
        the system described under paragraph (1), including lift cost 
        and periodic replacement cost due to depreciation and 
        attrition.
            (3) An analysis of the vulnerability of such a system to 
        counter-measures, including direct ascent and co-orbital 
        interceptors, and an analysis of the functionality of such a 
        system in the aftermath of a nuclear detonation in space.
            (4) A projection of the foreign policy and national 
        security implications of a space-based interceptor program, 
        including the probable response of United States adversaries 
        and United States allies.

                       Subtitle D--Other Matters

SEC. 231. REVIEW OF TEST AND EVALUATION POLICIES AND PRACTICES TO 
              ADDRESS EMERGING ACQUISITION APPROACHES.

    (a) Revision to Report Requirement.--Section 2399(b)(2)(B) of title 
10, United States Code, is amended by striking ``tested are effective 
and suitable for combat'' and inserting the following: ``tested--
                    ``(i) are effective and suitable for combat in 
                accordance with the users' standards for effectiveness 
                and suitability as reflected in the requirements 
                process; or
                    ``(ii) are operationally acceptable under certain 
                restricted conditions, as delineated by the 
                Director.''.
    (b) Review of Test and Evaluation Policies.--
            (1) In general.--The Under Secretary of Defense for 
        Acquisition, Technology, and Logistics, in coordination with 
        the Director of Operational Test and Evaluation and the 
        Director of the Defense Test Resource Management Center, shall 
        conduct a review of test and evaluation policies and practices 
        of the Department of Defense and issue such new or revised 
        guidance as may be necessary to address emerging acquisition 
        approaches.
            (2) Issues to be addressed.--The issues to be addressed by 
        the Under Secretary in the review under paragraph (1) shall 
        include, at a minimum, appropriate polices and practices for--
                    (A) ensuring the adequacy and the expediency of 
                test and evaluation activities with regard to--
                            (i) items that are acquired pursuant to the 
                        rapid acquisition authority in section 806 of 
                        the Bob Stump National Defense Authorization 
                        Act for Fiscal Year 2003 (10 U.S.C. 2302 note);
                            (ii) programs that are conducted pursuant 
                        to the spiral development authority in section 
                        803 of the Bob Stump National Defense 
                        Authorization Act for Fiscal Year 2003 (10 
                        U.S.C. 2430 note) (or other authority for the 
                        conduct of incremental acquisition programs) ;
                            (iii) systems that are acquired pursuant to 
                        other emerging acquisition approaches, as 
                        approved by the Under Secretary; and
                            (iv) materiel that is not subject to the 
                        operational test and evaluation requirements in 
                        sections 2366 and 2399 of title 10, United 
                        States Code, but which may require limited 
                        operational test and evaluation for the 
                        purposes of ensuring the safety and realistic 
                        survivability of the materiel and the personnel 
                        using the materiel; and
                    (B) the appropriate use, if any, of operational 
                test and evaluation resources to assess technology 
                readiness levels for purposes of section 2366a of title 
                10, United States Code, and other applicable technology 
                readiness requirements.
    (c) Inclusion of Testing Needs in Strategic Plan.--The Director of 
the Defense Test Resource Management Center shall ensure that the 
strategic plan for Department of Defense test and evaluation resources 
required by section 196 of title 10, United States Code--
            (1) reflects any testing needs of the Department of Defense 
        that are identified in the review under paragraph (1); and
            (2) includes an assessment of the test and evaluation 
        facilities, resources, and budgets that will be required to 
        meet such needs.
    (d) Report.--Not later than nine months after the date of the 
enactment of this Act, the Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall submit to the congressional defense 
committees a report on the review conducted, and any new or revised 
guidance issued, pursuant to subsection (b).

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense Programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program 
                            manager.
Sec. 312. Identification and monitoring of military munitions disposal 
                            sites in ocean waters extending from United 
                            States coast to outer boundary of outer 
                            Continental Shelf.
Sec. 313. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with Moses Lake 
                            Wellfield Superfund Site, Moses Lake, 
                            Washington.
Sec. 314. Funding of cooperative agreements under environmental 
                            restoration program.
Sec. 315. Analysis and report regarding contamination and remediation 
                            responsibility for Norwalk Defense Fuel 
                            Supply Point, Norwalk, California.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Extension of exclusion of certain expenditures from 
                            percentage limitation on contracting for 
                            depot-level maintenance.
Sec. 322. Minimum capital investment for Air Force depots.
Sec. 323. Extension of temporary authority for contractor performance 
                            of security guard functions.

                          Subtitle D--Reports

Sec. 331. Report on Nuclear Attack Submarine Depot Maintenance.
Sec. 332. Report on Navy Fleet Response Plan.
Sec. 333. Report on Navy surface ship rotational crew programs.
Sec. 334. Report on Army live-fire ranges in Hawaii.
Sec. 335. Comptroller General report on joint standards and protocols 
                            for access control systems at Department of 
                            Defense installations.
Sec. 336. Report on Personnel Security Investigations for Industry and 
                            National Industrial Security Program.

                       Subtitle E--Other Matters

Sec. 341. Department of Defense strategic policy on prepositioning of 
                            materiel and equipment.
Sec. 342. Authority to make Department of Defense horses available for 
                            adoption at end of useful working life.
Sec. 343. Sale and use of proceeds of recyclable munitions materials.
Sec. 344. Capital security cost sharing.
Sec. 345. Prioritization of funds within Navy mission operations, ship 
                            maintenance, combat support forces, and 
                            weapons system support.
Sec. 346. Prioritization of funds within Army reconstitution and 
                            transformation.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
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, $24,920,735,000.
            (2) For the Navy, $31,089,075,000.
            (3) For the Marine Corps, $3,974,081,000.
            (4) For the Air Force, $31,098,957,000.
            (5) For Defense-wide activities, $19,876,763,000.
            (6) For the Army Reserve, $2,300,102,000.
            (7) For the Naval Reserve, $1,288,764,000.
            (8) For the Marine Corps Reserve, $211,911,000.
            (9) For the Air Force Reserve, $2,723,800,000.
            (10) For the Army National Guard, $5,089,565,000.
            (11) For the Air National Guard, $5,336,017,000.
            (12) For the United States Court of Appeals for the Armed 
        Forces, $11,721,000.
            (13) For Environmental Restoration, Army, $413,794,000.
            (14) For Environmental Restoration, Navy, $304,409,000.
            (15) For Environmental Restoration, Air Force, 
        $423,871,000.
            (16) For Environmental Restoration, Defense-wide, 
        $18,431,000.
            (17) For Environmental Restoration, Formerly Used Defense 
        Sites, $242,790,000.
            (18) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $63,204,000.
            (19) For Cooperative Threat Reduction programs, 
        $372,128,000.
            (20) For the Overseas Contingency Operations Transfer Fund, 
        $10,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
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, $180,498,000.
            (2) For the National Defense Sealift Fund, $1,138,732,000.
            (3) For the Defense Working Capital Fund, Defense 
        Commissary, $1,184,000,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2007 for 
expenses, not otherwise provided for, for the Defense Health Program, 
in the amount of $21,226,521,000, of which--
            (1) $20,699,563,000 is for Operation and Maintenance;
            (2) $130,603,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $396,355,000 is for Procurement.
    (b) Drug Interdiction and Counter-Drug Activities, Defense-Wide.--
Funds are hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2007 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, in the 
amount of $926,890,000.
    (c) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2007 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, in the amount of $216,297,000, of 
which--
            (1) $214,897,000 is for Operation and Maintenance;
            (2) $1,400,000 is for Procurement; and
            (3) $0 is for Research, Development, Test, and Evaluation.

                  Subtitle B--Environmental Provisions

SEC. 311. REVISION OF REQUIREMENT FOR UNEXPLODED ORDNANCE PROGRAM 
              MANAGER.

    Section 2701(k) of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``establish'' and inserting 
                ``designate'';
                    (B) by inserting ``research,'' after 
                ``characterization,''; and
                    (C) by adding at the end the following: ``The 
                position of program manager shall be filled by--
            ``(A) in the case of an employee, an employee in a position 
        that is equivalent to pay grade O-6 or above; or
            ``(B) in the case of a member of the armed forces, a 
        commissioned officer of the Army, Navy, Air Force, or Marine 
        Corps who is serving in the grade of colonel, or in the case of 
        the Navy, captain, or a higher grade.''; and
            (2) by striking paragraph (2) and inserting the following:
    ``(2) The program manager shall report to the Deputy Under 
Secretary of Defense for Installations and Environment.''.

SEC. 312. IDENTIFICATION AND MONITORING OF MILITARY MUNITIONS DISPOSAL 
              SITES IN OCEAN WATERS EXTENDING FROM UNITED STATES COAST 
              TO OUTER BOUNDARY OF OUTER CONTINENTAL SHELF.

    (a) Identification of Military Munitions Disposal Sites.--
            (1) Review of historical records.--The Secretary of Defense 
        shall conduct a review of historical records to determine--
                    (A) the number and probable locations of sites 
                where the Armed Forces disposed of military munitions 
                within covered United States ocean waters;
                    (B) the size of the disposal sites; and
                    (C) the types and quantities of military munitions 
                disposed of at the sites.
            (2) Cooperation.--The Secretary shall request the 
        assistance of the Coast Guard, the National Oceanic and 
        Atmospheric Administration, and other relevant Federal agencies 
        in conducting the review required by this subsection.
            (3) Release of information.--The Secretary shall 
        periodically release, but no less often than annually, 
        information obtained during the review conducted under this 
        subsection. The Secretary may withhold from public release 
        information about the exact nature and location of a disposal 
        site if the Secretary determines that the potential 
        unauthorized retrieval of military munitions at the site could 
        pose a significant threat to national defense or public safety.
            (4) Reporting requirements.--The Secretary shall include 
        the information obtained during a year through the review 
        conducted under this subsection in the report submitted to 
        Congress under section 2706(a) of title 10, United States Code, 
        for the same year.
    (b) Identification of Navigational and Safety Hazards.--
            (1) Information for nautical charts and other navigational 
        materials.--The Secretary shall share information obtained 
        through the review conducted under subsection (a) with the 
        Secretary of Commerce to assist the National Oceanic and 
        Atmospheric Administration in preparing nautical charts and 
        other navigational materials for covered United States ocean 
        waters to identify known or probable hazards from disposed 
        military munitions.
            (2) Information for users.--The Secretary shall continue 
        activities to inform potentially affected users of the ocean 
        environment, and particularly fishing operations, of the 
        possible hazards from contact with military munitions and the 
        proper methods to mitigate such hazards.
    (c) Research.--
            (1) In general.--The Secretary shall conduct research on 
        the effects of military munitions disposed of in covered United 
        States ocean waters.
            (2) Specified research efforts.--The research conducted 
        under this subsection shall include the following:
                    (A) The sampling and analysis of ocean waters and 
                seabeds at or adjacent to the military munitions 
                disposal sites selected by the Secretary under 
                paragraph (4).
                    (B) The investigation into the long-term effects of 
                seawater exposure on military munitions, particularly 
                chemical munitions.
                    (C) The development of effective safety measures 
                when dealing with military munitions disposed of in 
                seawater.
            (3) Research methods.--In conducting research under this 
        subsection, the Secretary may make grants to, and enter into 
        cooperative agreements with, qualified research entities, as 
        determined by the Secretary.
            (4) Research locations.--In conducting research under this 
        subsection, the Secretary shall ensure that the sampling, 
        analysis, and investigations are conducted at reasonably 
        representative sites applying factors such as depth, water 
        temperature, nature of the military munitions present, and 
        relative proximity to shore populations. The Secretary shall 
        select at least two representative sites from each of the 
        following areas:
                    (A) Along the Atlantic coast.
                    (B) Along the Pacific coast (including the coast of 
                Alaska).
                    (C) Off the shore of the Hawaiian Islands.
    (d) Monitoring.--If research conducted under subsection (c) at a 
military munitions disposal site indicates that the disposed military 
munitions have caused or may be causing contamination of ocean waters 
or seabeds, the Secretary shall institute appropriate monitoring 
mechanisms at that site to recognize and track the potential release of 
contamination into the ocean waters from military munitions.
    (e) Definitions.--In this Act:
            (1) The term ``coast line'' has the same meaning given that 
        term in section 2 of the Submerged Lands Act (43 U.S.C. 1301).
            (2) The term ``covered United States ocean waters'' means 
        that part of the ocean extending from the coast line to the 
        outer boundary of the outer Continental Shelf.
            (3) The term ``military munitions'' has the same meaning 
        given that term in section 101(e) of title 10, United States 
        Code.
            (4) The term ``outer Continental Shelf'' has the same 
        meaning given that term in section 2 of the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1331).
            (5) The term ``Secretary'' means the Secretary of Defense.

SEC. 313. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND 
              SITE, MOSES LAKE, WASHINGTON.

    (a) Authority to Reimburse.--Using funds described in subsection 
(b), the Secretary of Defense may transfer not more than $111,114.03 to 
the Moses Lake Wellfield Superfund Site 10-6J Special Account to 
reimburse the Environmental Protection Agency for the costs incurred by 
the Environmental Protection Agency in overseeing a remedial 
investigation and feasibility study performed by the Department of the 
Army under the Defense Environmental Restoration Program at the former 
Larson Air Force Base, Moses Lake Wellfield Superfund Site, Moses Lake, 
Washington. This reimbursement is provided for in the March 1999 
interagency agreement entered into by the Department of the Army and 
the Environmental Protection Agency for the Moses Lake Wellfield 
Superfund Site.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(17) for 
operation and maintenance for Environmental Restoration, Formerly Used 
Defense Sites.

SEC. 314. FUNDING OF COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL 
              RESTORATION PROGRAM.

    Section 2701(d)(2) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``This two-year 
limitation does not apply to an agreement funded using amounts in the 
Department of Defense Base Closure Account 1990 or the Department of 
Defense Base Closure Account 2005 established under sections 2906 and 
2906A 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).''.

SEC. 315. ANALYSIS AND REPORT REGARDING CONTAMINATION AND REMEDIATION 
              RESPONSIBILITY FOR NORWALK DEFENSE FUEL SUPPLY POINT, 
              NORWALK, CALIFORNIA.

    (a) Analysis Required.--The Secretary of the Air Force shall 
conduct a comprehensive analysis on the contamination and remediation 
costs of the Norwalk Defense Fuel Supply Point in Norwalk, California. 
As part of the analysis, the Secretary shall--
            (1) characterize the contamination at the Norwalk Defense 
        Fuel Supply Point;
            (2) prepare a plan for the remediation of the Norwalk 
        Defense Fuel Supply Point;
            (3) prepare an estimate of anticipated costs to responsible 
        parties;
            (4) prepare a timeline for implementation and completion of 
        the remediation at the Norwalk Defense Fuel Supply Point;
            (5) describe the status of efforts to reach an allocation 
        agreement of responsibility for remediation of the Norwalk 
        Defense Fuel Supply Point with all entities that have 
        contributed to the contamination of the property; and
            (6) prepare a plan for removal or conveyance of 
        infrastructure at the Norwalk Defense Fuel Supply Point, 
        including costs and responsibility for those costs of elements 
        of that plan.
    (b) Report Required.--Not later than January 30, 2007, the 
Secretary shall submit to Congress a report containing the results of 
the analysis conducted under subsection (a) and addressing each of the 
matters specified in paragraphs (1) through (6) of such subsection.
    (c) Conveyance Requirements.--The Secretary shall not convey 
property by public auction at the Norwalk Defense Fuel Supply Point 
before such time as the Secretary has--
            (1) pursued a fair market transfer of the property to the 
        City of Norwalk, California, taking into consideration all 
        contamination of the property;
            (2) submitted the report required by subsection (b); and
            (3) submitted an additional report to Congress explaining 
        the efforts undertaken by the Secretary to reach agreement with 
        the City on the sale of the property, including the reasons 
        that those efforts were not successful, and 30-days have 
        elapsed after this report is submitted.

                 Subtitle C--Workplace and Depot Issues

SEC. 321. EXTENSION OF EXCLUSION OF CERTAIN EXPENDITURES FROM 
              PERCENTAGE LIMITATION ON CONTRACTING FOR DEPOT-LEVEL 
              MAINTENANCE.

    Section 2474(f)(1) of title 10, United States Code, is amended by 
striking ``fiscal years 2003 through 2009'' and inserting ``fiscal 
years 2003 through 2014''.

SEC. 322. MINIMUM CAPITAL INVESTMENT FOR AIR FORCE DEPOTS.

    (a) Investment Required.--Chapter 803 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 8025. Minimum capital investment in Air Force depots
    ``(a) Minimum Investment Requirement.--Each fiscal year, the 
Secretary of the Air Force shall invest in the capital budgets of the 
depots of the Air Force a total amount equal to not less than six 
percent of the total combined revenue of all the depots of the Air 
Force for the preceding fiscal year.
    ``(b) Waiver.--The Secretary of the Air Force may waive the 
requirement under subsection (a) if the Secretary determines that the 
waiver is necessary for reasons of national security and notifies the 
congressional defense committees.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``8025. Minimum capital investment for Air Force depots.''.
    (c) Effective Date.--Section 8025 of title 10, United States Code, 
shall apply with respect to fiscal years beginning after the date of 
the enactment of this Act.

SEC. 323. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE 
              OF SECURITY GUARD FUNCTIONS.

    (a) One-Year Extension.--Section 332(c) of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) is 
amended by striking ``September 30, 2007'' both places it appears and 
inserting ``September 30, 2008''.
    (b) Report on Contractor Performance of Security-Guard Functions.--
Not later than February 1, 2007, 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 contractor 
performance of security guard functions under section 332 of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314). The report shall include the following:
            (1) An explanation of progress made toward implementing 
        each of the seven recommendations in the Comptroller General 
        report entitled ``Contract Security Guards: Army's Guard 
        Program Requires Greater Oversight and Reassessment of 
        Acquisition Approach'' (GAO-06-284).
            (2) An assessment, taking into considerations the 
        observations made by the GAO on the report of the Department of 
        Defense of November 2005 that is entitled ``Department of 
        Defense Installation Security Guard Requirement Assessment and 
        Plan'', of the following:
                    (A) The cost-effectiveness of using contractors 
                rather than Department of Defense employees to perform 
                security-guard functions.
                    (B) The performance of contractors employed as 
                security guards compared with the performance of 
                military personnel who have served as security guards.
                    (C) Specific results of on-site visits made by 
                officials designated by the Secretary of Defense to 
                military installations using contractors to perform 
                security-guard functions.
    (c) Contract Limitation.--No contract may be entered into under 
section 332 of the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107-314) after September 30, 2007, until 
the report required under subsection (b) is submitted.

                          Subtitle D--Reports

SEC. 331. REPORT ON NUCLEAR ATTACK SUBMARINE DEPOT MAINTENANCE.

    (a) Report Required.--Not later than February 1, 2007, 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 describing the criteria used when a nuclear 
attack submarine is sent to a facility other than a facility located 
within 200 miles of the homeport of the submarine for maintenance 
described in subsection (d) when there is a public or private facility 
located within 200 miles of the homeport at which the maintenance 
required could be conducted.
    (b) Contents of Report.--The report required under subsection (a) 
shall include the following:
            (1) An assessment of the cost of housing for the crew of 
        the submarine.
            (2) The costs associated with traveling to the homeport of 
        the submarine for official duty.
            (3) The treatment of crew time while the submarine is 
        undergoing nondeployed maintenance work away from the homeport.
            (4) An assessment of the effect that maintenance conducted 
        away from the homeport of a submarine has on the families of 
        the members stationed on that submarine.
            (5) An analysis of the retention of officers and enlisted 
        members stationed on the submarine.
            (6) An analysis of the use of fixed maintenance crews or 
        semi-permanent engineering crews for maintenance availabilities 
        that exceed 13 months.
    (c) Restriction on Maintenance Away From Homeport.--
            (1) Restriction.--During fiscal year 2007, the Secretary of 
        the Navy may not conduct maintenance described in subsection 
        (d) on a nuclear attack submarine at a facility other than a 
        facility located within 200 miles of the homeport of that 
        submarine if there is a public or private facility located 
        within 200 miles of the homeport at which the maintenance 
        required could be conducted without adversely affecting 
        operational deployment schedules.
            (2) Notification required.--Not later than five days before 
        maintenance restricted under paragraph (1) is conducted due to 
        operation deployment schedules, the Secretary of the Navy shall 
        provide to the congressional defense committees written notice 
        of the maintenance that is to be conducted and the 
        justification for conducting that maintenance.
    (d) Covered Maintenance.--Maintenance described in this subsection 
is any of the following:
            (1) Maintenance referred to as selected restricted 
        availability maintenance.
            (2) Maintenance referred to as preinactivation restricted 
        availability maintenance.
            (3) Maintenance referred to as extended selected restricted 
        availability maintenance.
            (4) Maintenance referred to as interim dry dock 
        availabilities.

SEC. 332. REPORT ON NAVY FLEET RESPONSE PLAN.

    (a) Report Required.--Not later than December 1, 2006, 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 on the program of the Navy referred to as the 
Fleet Response Plan. The report shall include the following:
            (1) A directive that provides guidance for the conduct of 
        the Plan and standardizes terms and definitions.
            (2) Performance measures for evaluation of the Plan.
            (3) Costs and resources needed to achieve objectives of the 
        Plan.
            (4) Operational tests, exercises, war games, experiments, 
        and deployments used to test performance.
            (5) A collection and synthesis of lessons learned from the 
        implementation of the Plan as of the date on which the report 
        is submitted.
            (6) Evaluation of each of the following with respect to 
        each ship participating in the Plan:
                    (A) Combat Readiness.
                    (B) Ship material condition.
                    (C) Number of maintenance deficiencies.
                    (D) Amount of maintenance accomplished while 
                underway.
                    (E) Amount of maintenance accomplished at pier 
                dockings.
                    (F) Number of voyage repairs during each 
                deployment.
                    (G) Combat skills training requirements 
                accomplished during a deployment and at the home 
                station.
                    (H) Professional development training requirements 
                accomplished during a deployment and at home station.
                    (I) Crew retention statistics.
            (7) Any proposed changes to the Surface Force Training 
        Manual.
            (8) The amount of funding required to effectively implement 
        the operations and maintenance requirements of the Plan and the 
        effect of providing funding in an amount less than that amount.
            (9) Any recommendations of the Secretary of the Navy with 
        respect to expanding the Plan to include Expeditionary Strike 
        Groups.
    (b) Comptroller General Report.--Not later than March 15, 2007, the 
Comptroller General shall submit to the congressional defense 
committees a report containing a review of the Navy report required 
under subsection (a). The report shall include the following:
            (1) An examination of the management approaches of the Navy 
        in implementing the Fleet Response Plan.
            (2) An assessment of the adequacy of Navy directives and 
        guidance with respect to maintenance and training requirements 
        and procedures.
            (3) An analysis and assessment of the adequacy of the 
        Navy's test, exercises, and evaluation criteria.
            (4) An evaluation of Navy data on aircraft carriers, 
        destroyers, and cruisers that participated in the Fleet 
        Response Plan with respect to readiness, response time, and 
        availability for routine or unforeseen deployments.
            (5) An assessment of the Navy's progress in identifying the 
        amount of funding required to effectively implement the 
        operations and maintenance requirements of the Fleet Response 
        Plan and the effect of providing funding in an amount less than 
        that amount.
            (6) Any recommendations of the Comptroller General with 
        respect to expanding the Fleet Response Plan to include 
        Expeditionary Strike Groups.
    (c) Postponement of Expansion.--The Secretary of the Navy may not 
expand the implementation of the Fleet Response Plan beyond the Carrier 
Strike Groups until October 1, 2007.

SEC. 333. REPORT ON NAVY SURFACE SHIP ROTATIONAL CREW PROGRAMS.

    (a) Report Required.--Not later than April 1, 2007, 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 on the ship rotational crew experiment 
referred to in subsection (c)(1). The report shall include the 
following:
            (1) A comparison between the three destroyers participating 
        in that experiment and destroyers not participating in the 
        experiment that takes into consideration each of the following:
                    (A) Cost-effectiveness, including a comparison of 
                travel and per diem expenses, maintenance costs, and 
                other costs.
                    (B) Maintenance procedures, impacts, and 
                deficiencies, including the number and characterization 
                of maintenance deficiencies, the extent of voyage 
                repairs, post-deployment assessments of the material 
                condition of the ships, and the extent to which work 
                levels were maintained.
                    (C) Mission training requirements.
                    (D) Professional development requirements and 
                opportunities.
                    (E) Liberty port of call opportunities.
                    (F) Movement and transportation of crew.
                    (G) Inventory and property accountability.
                    (H) Policies and procedures for assigning billets 
                for rotating crews.
                    (I) Crew retention statistics.
                    (J) Readiness and mission capability data.
            (2) Results from surveys administered or focus groups held 
        to obtain representative views from commanding officers, 
        officers, and enlisted members on the effects of rotational 
        crew experiments on quality of life, training, professional 
        development, maintenance, mission effectiveness, and other 
        issues.
            (3) The extent to which standard policies and procedures 
        were developed and used for participating ships.
            (4) Lessons learned from the destroyer experiment.
            (5) An assessment from the combatant commanders on the crew 
        mission performance when deployed.
            (6) An assessment from the commander of the Fleet Forces 
        Command on the material condition, maintenance, and crew 
        training of each participating ship.
            (7) Any recommendations of the Secretary of the Navy with 
        respect to the extension of the ship rotational crew experiment 
        or the implementation of the experiment for other surface 
        vessels.
    (b) Postponement of Implementation.--The Secretary of the Navy may 
not begin implementation of any new surface ship rotational crew 
experiment or program during the period beginning on the date of the 
enactment of this Act and ending on October 1, 2009.
    (c) Treatment of Existing Experiments.--
            (1) Destroyer experiment.--Not later than January 1, 2007, 
        the Secretary of the Navy shall terminate the existing ship 
        rotational crew experiment involving the U.S.S. Gonzalez (DDG-
        66), the U.S.S. Stout (DDG-55), and the U.S.S. Laboon (DDG-58) 
        that is known as the ``sea swap''.
            (2) Patrol coastal class ship experiment.--The Secretary of 
        the Navy may continue the existing ship rotational crew program 
        that is currently in use by overseas-based Patrol Coastal class 
        ships.
    (d) Comptroller General Report.--Not later than July 15, 2007, 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 ship rotational crew experiment 
referred to in subsection (c)(1). The report shall include the 
following:
            (1) A review of the report submitted by the Secretary of 
        the Navy under subsection (a) and an assessment of the extent 
        to which the Secretary fully addressed costs, quality of life, 
        training, maintenance, and mission effectiveness, and other 
        relevant issues in that report.
            (2) An assessment of the extent to which the Secretary 
        established and applied a comprehensive framework for assessing 
        the use of ship rotational crew experiments, including formal 
        objectives, metrics, and methodology for assessing the cost-
        effectiveness of such experiments.
            (3) An assessment of the extent to which the Secretary 
        established effective guidance for the use of ship rotational 
        crew experiments.
            (4) Lessons learned from recent ship rotational crew 
        experiments and an assessment of the extent to which the Navy 
        systematically collects and shares lessons learned.
    (e) Congressional Budget Office Report.--Not later than July 15, 
2007, the Director of the Congressional Budget Office shall submit a 
report to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives on the 
long-term implications of the use of crew rotation on Navy ships on the 
degree of forward presence provided by Navy ships. The report shall 
include the following:
            (1) An analysis of different approaches to crew rotation 
        and the degree of forward presence each approach would provide.
            (2) A comparison of the degree of forward presence provided 
        by the fleet under the long-term shipbuilding plan of the Navy 
        with and without the widespread use of crew rotation.
            (3) The long-term benefits and costs of using crew rotation 
        on Navy ships.

SEC. 334. REPORT ON ARMY LIVE-FIRE RANGES IN HAWAII.

    Not later than March 1, 2007, the Secretary of the Army shall 
submit to Congress a report on the adequacy of the live-fire ranges of 
the Army in the State of Hawaii with respect to current and future 
training requirements. The report shall include the following:
            (1) An evaluation of the capacity of the existing live-fire 
        ranges to meet the training requirements of the Army, including 
        the training requirements of Stryker Brigade Combat Teams.
            (2) A description of any existing plan to modify or expand 
        any range in Hawaii for the purpose of meeting anticipated 
        live-fire training requirements.
            (3) A description of the current live-fire restrictions at 
        the Makua Valley range and the effect of these restrictions on 
        unit readiness.
            (4) Cost and schedule estimates for the construction of new 
        ranges or the modification of existing ranges that are 
        necessary to support future training requirements if existing 
        restrictions on training at the Makua Valley range remain in 
        place.

SEC. 335. COMPTROLLER GENERAL REPORT ON JOINT STANDARDS AND PROTOCOLS 
              FOR ACCESS CONTROL SYSTEMS AT DEPARTMENT OF DEFENSE 
              INSTALLATIONS.

    (a) Report Required.--Not later than one year 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 containing the 
assessment of the Comptroller General of--
            (1) the extent to which consistency exists in standards, 
        protocols, and procedures for access control across 
        installations of the Department of Defense; and
            (2) whether the establishment of joint standards and 
        protocols for access control at such installations would be 
        likely to--
                    (A) address any need of the Department identified 
                by the Comptroller General; or
                    (B) improve access control across the installations 
                by providing greater consistency and improved force 
                protection.
    (b) Issues to Be Assessed.--In conducting the assessment required 
by subsection (a), the Comptroller General shall assess the extent to 
which each installation of the Department of Defense has or would 
benefit from having an access control system with the ability to--
            (1) electronically check any identification card issued by 
        any Federal agency or any State or local government within the 
        United States, including any identification card of a visitor 
        to the installation who is a citizen or legal resident of the 
        United States;
            (2) verify that an identification card used to obtain 
        access to the installation was legitimately issued and has not 
        been reported lost or stolen;
            (3) check on a real-time basis all relevant watch lists 
        maintained by the Government, including terrorist watch lists 
        and lists of persons wanted by State, local, or Federal law 
        enforcement authorities;
            (4) maintain a log of individuals seeking access to the 
        installation and of individuals who are denied access to the 
        installation; and
            (5) exchange information with any installation with a 
        system that complies with the joint standards and protocols.

SEC. 336. REPORT ON PERSONNEL SECURITY INVESTIGATIONS FOR INDUSTRY AND 
              NATIONAL INDUSTRIAL SECURITY PROGRAM.

    (a) Reports Required.--Not later than 90 days after the date of the 
enactment of this Act and every six months thereafter, the Secretary of 
Defense shall submit to the congressional defense committees, the 
Committee on Homeland Security and Governmental Affairs of the Senate, 
and the Committee on Government Reform of the House of Representatives, 
a report on the future requirements of the Department of Defense with 
respect to the Personnel Security Investigations for Industry and the 
National Industrial Security Program of the Defense Security Service.
    (b) Contents of Reports.--
            (1) Initial report.--The initial report required under 
        subsection (a) shall include each of the following:
                    (A) The number of personnel security clearance 
                investigations conducted during the period beginning on 
                October 1, 1999, and ending on September 30, 2006.
                    (B) The number of each type of security clearance 
                granted during that period.
                    (C) The unit cost to the Department of Defense of 
                each security clearance granted during that period.
                    (D) The amount of any fee or surcharge paid to the 
                Office of Personnel Management as a result of 
                conducting a personnel security clearance 
                investigation.
                    (E) A description of the procedures used by the 
                Secretary of Defense to estimate the number of 
                personnel security clearance investigations to be 
                conducted during a fiscal year.
                    (F) A description of any effect of delays and 
                backlogs in the personnel security clearance 
                investigation process on the national security of the 
                United States.
                    (G) A description of any effect of delays and 
                backlogs in the personnel security clearance 
                investigation process on the defense industrial base 
                assets of the United States.
                    (H) A plan developed by the Secretary of Defense to 
                reduce such delays and backlogs.
                    (I) A plan developed by the Secretary of Defense to 
                adequately fund the personnel security clearance 
                investigation process.
                    (J) A plan developed by the Secretary of Defense to 
                establish a more stable and effective Personnel 
                Security Investigations Program.
                    (K) A plan developed by the Secretary of Defense to 
                involve external sources, including defense 
                contractors, in the plans of the Secretary of Defense 
                under subparagraphs (H), (I), and (J).
            (2) Subsequent reports.--Each report required to be 
        submitted under subsection (a) after the submission of the 
        initial report shall include each of the following:
                    (A) The funding requirements of the personnel 
                security clearance investigation program and ability of 
                the Secretary of Defense to fund the program.
                    (B) The size of the personnel security clearance 
                investigation process backlog.
                    (C) The length of the average delay for an 
                individual case pending in the personnel security 
                clearance investigation process.
                    (D) Any progress made by the Secretary of Defense 
                during the six months preceding the date on which the 
                report is submitted toward implementing planned changes 
                in the personnel security clearance investigation 
                process.
                    (E) A determination certified by the Secretary of 
                Defense of whether the personnel security clearance 
                investigation process has improved during the six 
                months preceding the date on which the report is 
                submitted.
    (c) Comptroller General Report.--As soon as practicable after the 
Secretary of Defense submits the initial report required under 
subsection (a), the Comptroller General shall submit a report to 
Congress that contains a review of such initial report.
    (d) Sense of Congress on Improving the Personnel Security 
Investigations Program.--
            (1) Findings.--Congress finds the following:
                    (A) Since fiscal year 2000, the General 
                Accountability Office has listed the Personnel Security 
                Investigations Program of the Department of Defense as 
                a systemic weakness that affects more than one 
                component of the Department and may jeopardize the 
                operations of the Department.
                    (B) In 2005, the Government Accountability Office 
                designated the Personnel Security Investigations 
                Program as a high-risk area because delays by the 
                Program in issuing security clearances can affect 
                national security.
                    (C) In 2005, the Government Accountability Office 
                found that the Department of Defense continues to face 
                sizeable security clearance backlogs.
                    (D) The Government Accountability Office also 
                reported in 2005 that security clearance delays 
                increase national security risks, delay the start of 
                classified work, hamper employers from hiring the best 
                qualified workers, and increase the cost to the 
                Government of national security-related contracts.
                    (E) These security clearance backlogs and delays 
                continue in 2006, and have brought the security 
                clearance program to a reported standstill.
            (2) Sense of congress.--It is the sense of Congress that--
                    (A) the delays and backlogs associated with the 
                Personnel Security Investigations Program threaten the 
                national security of the United States and key defense 
                industrial assets; and
                    (B) the Secretary of Defense should take such steps 
                as are necessary to eliminate the backlogs of 
                applications for security clearance and the delays 
                associated with the security clearance application 
                process and make systemic improvements to the Personnel 
                Security Investigations Program.

                       Subtitle E--Other Matters

SEC. 341. DEPARTMENT OF DEFENSE STRATEGIC POLICY ON PREPOSITIONING OF 
              MATERIEL AND EQUIPMENT.

    (a) Strategic Policy Required.--Chapter 131 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2229. Strategic policy on prepositioning of materiel and 
              equipment
    ``(a) Policy Required.--The Secretary of Defense shall maintain a 
strategic policy on the programs of the Department of Defense for the 
prepositioning of materiel and equipment. Such policy shall take into 
account national security threats, strategic mobility, and service 
requirements.
    ``(b) Limitation of Diversion of Prepositioned Materiel.--The 
Secretary of a military department may not divert materiel or equipment 
from prepositioned stocks except--
            ``(1) in accordance with a change made by the Secretary of 
        Defense to the policy maintained under subsection (a); or
            ``(2) for the purpose of supporting a contingency 
        operation.
    ``(c) Congressional Notification.--The Secretary of Defense may not 
implement or change the policy required under subsection (a) until the 
Secretary submits to the congressional defense committees a report 
describing the policy or change to the policy.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2229. Strategic policy on prepositioning of materiel and 
                            equipment.''.
    (c) Deadline for Establishment of Policy.--
            (1) Deadline.--Not later than six months after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        establish the strategic policy on the programs of the 
        Department of Defense for the prepositioning of materiel and 
        equipment required under section 2229 of title 10, United 
        States Code, as added by subsection (a).
            (2) Limitation on diversion of prepositioned materiel.--
        During the period beginning on the date of the enactment of 
        this Act and ending on the date on which the Secretary of 
        Defense submits the report required under section 2229(c) of 
        title 10, United States Code, on the policy established under 
        paragraph (1), the Secretary of a military department may not 
        divert materiel or equipment from prepositioned stocks except 
        for the purpose of supporting a contingency operation.

SEC. 342. AUTHORITY TO MAKE DEPARTMENT OF DEFENSE HORSES AVAILABLE FOR 
              ADOPTION AT END OF USEFUL WORKING LIFE.

    (a) Inclusion of Department of Defense Horses in Existing 
Authority.--Section 2583 of title 10, United States Code, is amended--
            (1) in the section heading, by striking ``working dogs'' 
        and inserting ``animals'';
            (2) by striking ``working'' each place it appears;
            (3) by striking ``dog'' and ``dogs'' each place they appear 
        and inserting ``animal'' and ``animals'', respectively;
            (4) by striking ``dog's'' in paragraphs (1) and (2) of 
        subsection (a) and inserting ``animal's'';
            (5) by striking ``a dog's adoptability'' in subsection (b) 
        and inserting ``the adoptability of the animal''; and
            (6) by adding at the end the following new subsection:
    ``(g) Military Animal Defined.--In this section, the term `military 
animal' means the following:
            ``(1) A military working dog.
            ``(2) A horse owned by the Department of Defense.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 153 of such title is 
amended to read as follows:

``2583. Military animals: transfer and adoption at end of useful 
                            working life.''.

SEC. 343. SALE AND USE OF PROCEEDS OF RECYCLABLE MUNITIONS MATERIALS.

    (a) Establishment of Program.--Chapter 443 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 4690. Recyclable munitions materials: sale; use of proceeds
    ``(a) Authority for Program.--Notwithstanding section 2577 of this 
title, the Secretary of the Army may carry out a program to sell 
recyclable munitions materials resulting from the demilitarization of 
conventional military munitions without regard to chapter 5 of title 40 
and use any proceeds in accordance with subsection (c).
    ``(b) Method of Sale.--The Secretary shall use competitive 
procedures to sell recyclable munitions materials under this section in 
accordance with Federal procurement laws and regulations.
    ``(c) Proceeds.--(1) Proceeds from the sale of recyclable munitions 
materials under this section shall be credited to an account that is 
specified as being for Army ammunition demilitarization from funds made 
available for the procurement of ammunition, to be available only for 
reclamation, recycling, and reuse of conventional military munitions 
(including research and development and equipment purchased for such 
purpose).
    ``(2) Amounts credited under this subsection shall be available for 
obligation for the fiscal year during which the funds are so credited 
and for three subsequent fiscal years.
    ``(d) Regulations.--The Secretary shall prescribe regulations to 
carry out the program established under this section. Such regulations 
shall be consistent and in compliance with the Solid Waste Disposal Act 
(42 U.S.C. 6901 et seq.) and the regulations implementing that Act.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``4690. Recyclable munitions materials: sale; use of proceeds.''.

SEC. 344. CAPITAL SECURITY COST SHARING.

    (a) Reconciliation Required.--For each fiscal year, the Secretary 
of Defense shall reconcile (1) the estimate of overseas presence of the 
Secretary of Defense under subsection (b) for that fiscal year, with 
(2) the determination of the Secretary of State under section 604(e)(1) 
of the Secure Embassy Construction and Counterterrorism Act of 1999 (22 
U.S.C. 4865 note) of the total overseas presence of the Department of 
Defense for that fiscal year.
    (b) Annual Estimate of Overseas Presence.--Not later than February 
1 of each year, the Secretary of Defense shall submit to the 
congressional defense committees an estimate of the total number of 
Department of Defense overseas personnel subject to chief of mission 
authority pursuant to section 207 of the Foreign Service Act of 1980 
(22 U.S.C. 3927) during the fiscal year that begins on October 1 of 
that year.

SEC. 345. PRIORITIZATION OF FUNDS WITHIN NAVY MISSION OPERATIONS, SHIP 
              MAINTENANCE, COMBAT SUPPORT FORCES, AND WEAPONS SYSTEM 
              SUPPORT.

    (a) In General.--The Secretary of the Navy shall take such steps as 
necessary through the planning, programming, budgeting, and execution 
systems of the Department of the Navy to ensure that financial 
resources are provided for each fiscal year as necessary to enable the 
Navy to fund the following requirements of the Navy for that fiscal 
year:
            (1) 100 percent of the requirements for steaming days per 
        quarter for deployed ship operations.
            (2) 100 percent of the requirements for steaming days per 
        quarter for non-deployed ship operations.
            (3) 100 percent of the projected ship and air depot 
        maintenance.
    (b) Limitation of Funds for Navy Expeditionary Combat Command.--Of 
the funds appropriated for the Department of Navy for any fiscal year 
after fiscal year 2006, no operation and maintenance funds may be 
expended for the Navy Expeditionary Combat Command until the funding 
priorities in subsection (a) are met for that fiscal year.
    (c) Annual Report.--The Secretary of Navy shall submit to the 
congressional defense committees an annual report, to be submitted each 
year with the annual operation and maintenance justification of 
estimates material for the next fiscal year, that certifies that the 
requirements in subsection (a) are satisfied for the fiscal year for 
which that material is submitted.

SEC. 346. PRIORITIZATION OF FUNDS WITHIN ARMY RECONSTITUTION AND 
              TRANSFORMATION.

    (a) In General.--The Secretary of the Army shall take such steps as 
necessary through the planning, programming, budgeting, and execution 
systems of the Department of the Army to ensure that financial 
resources are provided for each fiscal year as necessary to enable the 
Army to meet its requirements in that fiscal year for each of the 
following:
            (1) The repair, recapitalization, and replacement of 
        equipment used in the Global War on Terrorism, based on 
        implementation of requirements based on a cost estimate for 
        such purposes of at least $72,300,000,000 over the period of 
        the five fiscal years beginning with fiscal year 2008.
            (2) The fulfillment of equipment requirements of units 
        transforming to modularity in accordance with the Modular Force 
        Initiative report submitted to Congress in March 2006, based on 
        implementation of requirements based on a cost estimate for 
        such purposes of $47,600,000,000 over the period of the five 
        fiscal years beginning with fiscal year 2008.
            (3) The reconstitution of equipment and materiel in 
        prepositioned stocks by 2012 in accordance with requirements 
        under the Army Prepositioned Stocks Strategy 2012 or a 
        subsequent strategy implemented under the guidelines in section 
        2229 of title 10, United States Code.
    (b) Annual Report.--The Secretary of the Army shall submit to the 
congressional defense committees an annual report, until the 
requirements of subsection (a) have been met, setting forth the 
progress toward meeting those requirements. Any information required to 
be included in the report concerning funding priorities under paragraph 
(1) or (2) of subsection (a) shall be itemized by active duty component 
and reserve component. The report for any year shall be submitted at 
the time the budget of the President for the next fiscal year is 
submitted to Congress. Each such report shall include the following:
            (1) A complete itemization of the requirements for the 
        funding priorities in subsection (a), including an itemization 
        for all types of modular brigades for both active and reserve 
        components.
            (2) A list of any shortfalls that exist between available 
        funding, equipment, supplies, and industrial capacity and 
        required funding, equipment, supplies, and industrial capacity 
        in accordance with the funding priorities in subsection (a).
            (3) A list of the requirements for the funding priorities 
        in subsection (a) that the Army has included in the budget for 
        that fiscal year, including a detailed listing of the type, 
        quantity, and cost of the equipment the Army plans to repair, 
        recapitalize, or procure, set forth by appropriations account 
        and Army component.
            (4) An assessment of the progress made during that fiscal 
        year toward meeting the overall requirements of the funding 
        priorities in subsection (a).
            (5) A description of how the Army defines costs associated 
        with modularity versus the costs associated with modernizing 
        equipment platforms and repairing, recapitalizing, and 
        replacing equipment used during the global war on terrorism.
            (6) The results of Army assessments of modular force 
        capabilities, including lessons learned from existing modular 
        units and any modifications that have been made to modularity.
            (7) The assessment of each of the Chief of the National 
        Guard Bureau and the Chief of the Army Reserve of each of the 
        items described in paragraphs (1) through (6).
    (c) Limitation on Funds for Future Combat Systems.--Of the funds 
appropriated for the Army for any fiscal year after fiscal year 2007, 
not more than $2,850,000,000 may be expended for the Future Combat 
Systems until the funding priorities in subsection (a) are met for that 
fiscal year.
    (d) Use of Excess Funds for Future Combat Systems.--Any funds 
appropriated for the Future Combat Systems for any fiscal year not 
expended in accordance with subsection (c) shall be used for programs 
specified in subsection (a).

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum 
                            levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
                            active duty end strengths for fiscal years 
                            2008 and 2009.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserve components.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2007 limitation on number of non-dual status 
                            technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on 
                            active duty for operational support.

              Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) In General.--The Armed Forces are authorized strengths for 
active duty personnel as of September 30, 2007, as follows:
            (1) The Army, 512,400.
            (2) The Navy, 340,700.
            (3) The Marine Corps, 180,000.
            (4) The Air Force, 334,200.
    (b) Limitation.--
            (1) Army.--The authorized strength for the Army provided in 
        paragraph (1) of subsection (a) for active duty personnel for 
        fiscal year 2007 is subject to the condition that costs of 
        active duty personnel of the Army for that fiscal year in 
        excess of 482,400 shall be paid out of funds authorized to be 
        appropriated for that fiscal year for a contingent emergency 
        reserve fund or as an emergency supplemental appropriation.
            (2) Marine corps.--The authorized strength for the Marine 
        Corps provided in paragraph (3) of subsection (a) for active 
        duty personnel for fiscal year 2007 is subject to the condition 
        that costs of active duty personnel of the Marine Corps for 
        that fiscal year in excess of 175,000 shall be paid out of 
        funds authorized to be appropriated for that fiscal year for a 
        contingent emergency reserve fund or as an emergency 
        supplemental appropriation.

SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM 
              LEVELS.

    Section 691(b) of title 10, United States Code, is amended by 
striking paragraphs (1) through (4) and inserting the following:
            ``(1) For the Army, 504,400.
            ``(2) For the Navy, 340,700.
            ``(3) For the Marine Corps, 180,000.
            ``(4) For the Air Force, 334,200.''.

SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS 
              ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2008 AND 2009.

    Effective October 1, 2007, the text of section 403 of the Ronald W. 
Reagan National Defense Authorization Act for Fiscal Year 2005 (Public 
Law 108-375; 118 Stat. 1863) is amended to read as follows:
    ``(a) Authority.--
            ``(1) Army.--For each of fiscal years 2008 and 2009, the 
        Secretary of Defense may, as the Secretary determines necessary 
        for the purposes specified in paragraph (3), establish the 
        active-duty end strength for the Army at a number greater than 
        the number otherwise authorized by law up to the number equal 
        to the fiscal-year 2007 baseline plus 20,000.
            ``(2) Marine corps.--For each of fiscal years 2008 and 
        2009, the Secretary of Defense may, as the Secretary determines 
        necessary for the purposes specified in paragraph (3), 
        establish the active-duty end strength for the Marine Corps at 
        a number greater than the number otherwise authorized by law up 
        to the number equal to the fiscal-year 2007 baseline plus 
        4,000.
            ``(3) Purpose of increases.--The purposes for which 
        increases may be made in Army and Marine Corps active duty end 
        strengths under paragraphs (1) and (2) are--
                    ``(A) to support operational missions; and
                    ``(B) to achieve transformational reorganization 
                objectives, including objectives for increased numbers 
                of combat brigades and battalions, increased unit 
                manning, force stabilization and shaping, and 
                rebalancing of the active and reserve component forces.
            ``(4) Fiscal-year 2007 baseline.--In this subsection, the 
        term `fiscal-year 2007 baseline', with respect to the Army and 
        Marine Corps, means the active-duty end strength authorized for 
        those services in section 401 of the National Defense 
        Authorization Act for Fiscal Year 2007.
            ``(5) Active-duty end strength.--In this subsection, the 
        term `active-duty end strength' means the strength for active-
        duty personnel of one of the Armed Forces as of the last day of 
        a fiscal year.
    ``(b) Relationship to Presidential Waiver Authority.--Nothing in 
this section shall be construed to limit the President's authority 
under section 123a of title 10, United States Code, to waive any 
statutory end strength in a time of war or national emergency.
    ``(c) Relationship to Other Variance Authority.--The authority 
under subsection (a) is in addition to the authority to vary authorized 
end strengths that is provided in subsections (e) and (f) of section 
115 of title 10, United States Code.
    ``(d) Budget Treatment.--
            ``(1) Fiscal year 2008 budget.--The budget for the 
        Department of Defense for fiscal year 2008 as submitted to 
        Congress shall comply, with respect to funding, with 
        subsections (c) and (d) of section 691 of title 10, United 
        States Code.
            ``(2) Other increases.--If the Secretary of Defense plans 
        to increase the Army or Marine Corps active duty end strength 
        for a fiscal year under subsection (a), then the budget for the 
        Department of Defense for that fiscal year as submitted to 
        Congress shall include the amounts necessary for funding that 
        active duty end strength in excess of the fiscal year 2007 
        active duty end strength authorized for that service under 
        section 401 of the National Defense Authorization Act for 
        Fiscal Year 2007.''.

                       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, 2007, as follows:
            (1) The Army National Guard of the United States, 350,000.
            (2) The Army Reserve, 200,000.
            (3) The Navy Reserve, 71,300.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 107,000.
            (6) The Air Force Reserve, 74,900.
            (7) The Coast Guard Reserve, 10,000.
    (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 
increased proportionately 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 
              RESERVE COMPONENTS.

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2007, 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, 28,165.
            (2) The Army Reserve, 15,416.
            (3) The Navy Reserve, 12,564.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 13,291.
            (6) The Air Force Reserve, 2,707.

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 2007 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, 7,912.
            (2) For the Army National Guard of the United States, 
        27,615.
            (3) For the Air Force Reserve, 10,124.
            (4) For the Air National Guard of the United States, 
        23,255.

SEC. 414. FISCAL YEAR 2007 LIMITATION ON NUMBER OF NON-DUAL STATUS 
              TECHNICIANS.

    (a) Limitations.--
            (1) National guard.--Within the limitation provided in 
        section 10217(c)(2) of title 10, United States Code, the number 
        of non-dual status technicians employed by the National Guard 
        as of September 30, 2007, may not exceed the following:
                    (A) For the Army National Guard of the United 
                States, 1,600
                    (B) For the Air National Guard of the United 
                States, 350.
            (2) Army reserve.--The number of non-dual status 
        technicians employed by the Army Reserve as of September 30, 
        2007, may not exceed 595.
            (3) Air force reserve.--The number of non-dual status 
        technicians employed by the Air Force Reserve as of September 
        30, 2007, may not exceed 90.
    (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. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON 
              ACTIVE DUTY FOR OPERATIONAL SUPPORT.

    During fiscal year 2007, the maximum number of members of the 
reserve components of the Armed Forces who may be serving at any time 
on full-time operational support duty under section 115(b) of title 10, 
United States Code, is the following:
            (1) The Army National Guard of the United States, 17,000.
            (2) The Army Reserve, 13,000.
            (3) The Navy Reserve, 6,200.
            (4) The Marine Corps Reserve, 3,000.
            (5) The Air National Guard of the United States, 16,000.
            (6) The Air Force Reserve, 14,000.

              Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2007 a total of 
$109,820,468,000. The authorization in the preceding sentence 
supersedes any other authorization of appropriations (definite or 
indefinite) for such purpose for fiscal year 2007.

SEC. 422. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2007 
from the Armed Forces Retirement Home Trust Fund the sum of $54,846,000 
for the operation of the Armed Forces Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Authorized strength of Navy Reserve flag officers.
Sec. 502. Standardization of grade of senior dental officer of the Air 
                            Force with that of senior dental officer of 
                            the Army.
Sec. 503. Management of chief warrant officers.
Sec. 504. Reduction in time-in-grade requirement for promotion to 
                            captain in the Army, Air Force, and Marine 
                            Corps and lieutenant in the Navy.
Sec. 505. Military status of officers serving in certain Intelligence 
                            Community positions.

                Subtitle B--Reserve Component Management

Sec. 511. Revisions to reserve call-up authority.
Sec. 512. Military retirement credit for certain service by National 
                            Guard members performed while in a State 
                            duty status immediately after the terrorist 
                            attacks of September 11, 2001.
Sec. 513. Report on private-sector promotion and constructive 
                            termination of members of the reserve 
                            components called or ordered to active 
                            service.

                   Subtitle C--Education and Training

Sec. 521. Authority to permit members who participate in the guaranteed 
                            reserve forces duty scholarship program to 
                            participate in the health professions 
                            scholarship program and serve on active 
                            duty.
Sec. 522. Junior Reserve Officers' Training Corps instruction 
                            eligibility expansion.
Sec. 523. Authority for United States Military Academy and United 
                            States Air Force Academy permanent military 
                            professors to assume command positions 
                            while on periods of sabbatical.
Sec. 524. Expansion of service academy exchange programs with foreign 
                            military academies.
Sec. 525. Review of legal status of Junior ROTC program.

                Subtitle D--General Service Authorities

Sec. 531. Test of utility of test preparation guides and education 
                            programs in enhancing recruit candidate 
                            performance on the Armed Services 
                            Vocational Aptitude Battery (ASVAB) and 
                            Armed Forces Qualification Test (AFQT).
Sec. 532. Nondisclosure of selection board proceedings.
Sec. 533. Report on extent of provision of timely notice of long-term 
                            deployments.

       Subtitle E--Authorities Relating to Guard and Reserve Duty

Sec. 541. Title 10 definition of Active Guard and Reserve duty.
Sec. 542. Authority for Active Guard and Reserve duties to include 
                            support of operational missions assigned to 
                            the reserve components and instruction and 
                            training of active-duty personnel.
Sec. 543. Governor's authority to order members to Active Guard and 
                            Reserve duty.
Sec. 544. National Guard officers authority to command.
Sec. 545. Expansion of operations of civil support teams.

                   Subtitle F--Decorations and Awards

Sec. 551. Authority for presentation of Medal of Honor Flag to living 
                            Medal of Honor recipients and to living 
                            primary next-of-kin of deceased Medal of 
                            Honor recipients.
Sec. 552. Cold War Victory Medal.
Sec. 553. Posthumous award of Purple Heart for prisoners of war who die 
                            in or due to captivity.
Sec. 554. Advancement on the retired list of certain decorated retired 
                            Navy and Marine Corps officers.
Sec. 555. Report on Department of Defense process for awarding 
                            decorations.

               Subtitle G--Matters Relating to Casualties

Sec. 561. Criteria for removal of member from temporary disability 
                            retired list.
Sec. 562. Department of Defense computer/electronic accommodations 
                            program for severely wounded members.
Sec. 563. Transportation of remains of casualties dying in a theater of 
                            combat operations.
Sec. 564. Annual budget display of funds for POW/MIA activities of 
                            Department of Defense.

   Subtitle H--Assistance to Local Educational Agencies for Defense 
                          Dependents Education

Sec. 571. Continuation of authority to assist local educational 
                            agencies that benefit dependents of members 
                            of the Armed Forces and Department of 
                            Defense civilian employees.
Sec. 572. Enrollment in defense dependents' education system of 
                            dependents of foreign military members 
                            assigned to Supreme Headquarters Allied 
                            Powers, Europe.

                      Subtitle I--Postal Benefits

Sec. 575. Postal benefits program for members of the Armed Forces.
Sec. 576. Funding.
Sec. 577. Duration.

                       Subtitle J--Other Matters

Sec. 581. Reduction in Department of Defense accrual contributions to 
                            Department of Defense Military Retirement 
                            Fund.
Sec. 582. Dental Corps of the Bureau of Medicine and Surgery.
Sec. 583. Permanent authority for presentation of recognition items for 
                            recruitment and retention purposes.
Sec. 584. Report on feasibility of establishment of Military Entrance 
                            Processing Command station on Guam.
Sec. 585. Persons authorized to administer enlistment and appointment 
                            oaths.
Sec. 586. Repeal of requirement for periodic Department of Defense 
                            Inspector General assessments of voting 
                            assistance compliance at military 
                            installations.
Sec. 587. Physical evaluation boards.
Sec. 588. Department of Labor transitional assistance program.
Sec. 589. Revision in Government contributions to Medicare-Eligible 
                            Retiree Health Care Fund.
Sec. 590. Military chaplains.
Sec. 591. Report on personnel requirements for airborne assets 
                            identified as Low-Density, High-Demand 
                            Airborne Assets.
Sec. 592. Entrepreneurial Service Members Empowerment Task Force.
Sec. 593. Comptroller General report on military conscientious 
                            objectors.
Sec. 594. Commission on the National Guard and Reserves.

                  Subtitle A--Officer Personnel Policy

SEC. 501. AUTHORIZED STRENGTH OF NAVY RESERVE FLAG OFFICERS.

    (a) Simplification of Counting of Navy Reserve Flag Officers.--
Subsection (c) of section 12004 of title 10, United States Code, is 
amended to read as follows:
    ``(c) The authorized strength of the Navy under subsection (a) is 
exclusive of officers counted under section 526 of this title.''.
    (b) Conforming Amendment.--Subsection (d) of such section is 
amended by striking ``of those'' and inserting ``of officers''.

SEC. 502. STANDARDIZATION OF GRADE OF SENIOR DENTAL OFFICER OF THE AIR 
              FORCE WITH THAT OF SENIOR DENTAL OFFICER OF THE ARMY.

    (a) Air Force Assistant Surgeon General for Dental Services.--
Section 8081 of title 10, United States Code, is amended by striking 
``brigadier general'' in the second sentence and inserting ``major 
general''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the occurrence of the next vacancy in the 
position of Assistant Surgeon General for Dental Services in the Air 
Force that occurs after the date of the enactment of this Act or, if 
earlier, on the date of the appointment to the grade of major general 
of the officer who is the incumbent in that position on the date of the 
enactment of the Act.

SEC. 503. MANAGEMENT OF CHIEF WARRANT OFFICERS.

    (a) Retention of Chief Warrant Officers, W-4, Who Have Twice Failed 
of Selection for Promotion.--Section 580(e)(1) of title 10, United 
States Code, is amended by striking ``continued on active duty if'' and 
all that follows and inserting ``continued on active duty if--
            ``(A) in the case of a warrant officer in the grade of 
        chief warrant officer, W-2, or chief warrant officer, W-3, the 
        warrant officer is selected for continuation on active duty by 
        a selection board convened under section 573(c) of this title; 
        and
            ``(B) in the case of a warrant officer in the grade of 
        chief warrant officer, W-4, the warrant officer is selected for 
        continuation on active duty by the Secretary concerned under 
        such procedures as the Secretary may prescribe.''.
    (b) Mandatory Retirement for Length of Service.--Section 1305(a) of 
such title is amended--
            (1) by striking ``(1) Except as'' and all the follows 
        through ``W-5)'' and inserting ``A regular warrant officer'';
            (2) by inserting ``as a warrant officer'' after ``years of 
        active service'';
            (3) by inserting ``the date on which'' after ``60 days 
        after''; and
            (4) by striking paragraph (2).

SEC. 504. REDUCTION IN TIME-IN-GRADE REQUIREMENT FOR PROMOTION TO 
              CAPTAIN IN THE ARMY, AIR FORCE, AND MARINE CORPS AND 
              LIEUTENANT IN THE NAVY.

    Section 619(a)(1) of title 10, United States Code, is amended by 
striking ``he has completed'' in the matter preceding subparagraph (A) 
and all that follows through the period at the end of subparagraph (B) 
and inserting ``the officer has completed 18 months of service in the 
grade in which the officer holds a permanent appointment''.

SEC. 505. MILITARY STATUS OF OFFICERS SERVING IN CERTAIN INTELLIGENCE 
              COMMUNITY POSITIONS.

    (a) Clarification of Military Status.--Section 528 of title 10, 
United States Code, is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) Military Status.--An officer of the armed forces, while 
serving in a position covered by this section--
            ``(1) shall not be subject to supervision or control by the 
        Secretary of Defense or any other officer or employee of the 
        Department of Defense, except as directed by the Secretary of 
        Defense concerning reassignment from such position; and
            ``(2) may not exercise, by reason of the officer's status 
        as an officer, any supervision or control with respect to any 
        of the military or civilian personnel of the Department of 
        Defense except as otherwise authorized by law.
    ``(b) Director and Deputy Director of CIA.--When the position of 
Director or Deputy Director of the Central Intelligence Agency is held 
by an officer of the armed forces, the officer serving in that 
position, while so serving, shall be excluded from the limitations in 
sections 525 and 526 of this title. However, if both such positions are 
held by an officer of the armed forces, only one such officer may be 
excluded from those limitation while so serving.''; and
            (2) by adding at the end the following new subsections:
    ``(e) Effect of Appointment.--Except as provided in subsection (a), 
the appointment or assignment of an officer of the armed forces to a 
position covered by this section shall not affect--
            ``(1) the status, position, rank, or grade of such officer 
        in the armed forces; or
            ``(2) any emolument, perquisite, right, privilege, or 
        benefit incident to or arising out of such status, position, 
        rank, or grade.
    ``(f) Military Pay and Allowances.--An officer of the armed forces 
on active duty who is appointed or assigned to a position covered by 
this section shall, while serving in such position and while remaining 
on active duty, continue to receive military pay and allowances and 
shall not receive the pay prescribed for such position. Funds from 
which such military pay and allowances are paid to such officer while 
so serving shall be reimbursed from funds available to the Director of 
the Central Intelligence Agency (for an officer serving in a position 
within the Central Intelligence Agency) or from funds available to the 
Director of National Intelligence (for an officer serving in a position 
within the Office of the Director of National Intelligence).
    ``(g) Covered Positions.--The positions covered by this section are 
the positions specified in subsections (b) and (c) and the positions 
designated under subsection (d).''.
    (b) Clerical Amendments.--
            (1) The heading of such section is amended to read as 
        follows:
``Sec. 528. Officers serving in certain intelligence positions: 
              military status; exclusion from distribution and strength 
              limitations; pay and allowances''.
            (2) The table of sections at the beginning of chapter 32 of 
        such title is amended to read as follows:

``528. Officers serving in certain intelligence positions: military 
                            status; exclusion from distribution and 
                            strength limitations; pay and 
                            allowances.''.

                Subtitle B--Reserve Component Management

SEC. 511. REVISIONS TO RESERVE CALL-UP AUTHORITY.

    (a) Maximum Number of Days.--Subsection (a) of section 12304 of 
title 10, United States Code, is amended by striking ``270 days'' and 
inserting ``365.''
    (b) Support for Disasters.--Such section is further amended--
            (1) in subsection (b)--
                    (A) by striking ``or'' at the end of paragraph (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) a serious natural or manmade disaster, accident, or 
        catastrophe that occurs in the United States, its territories 
        and possessions, or Puerto Rico.''; and
            (2) in subsection (c)(1)--
                    (A) by striking ``title or,'' and inserting 
                ``title,''; and
                    (B) by striking ``, to provide'' and all that 
                follows through the end and inserting a period.
    (c) Fair Treatment.--Such section is further amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following new 
        subsection (i):
    ``(i) Considerations for Involuntary Order to Active Duty.--(1) In 
determining which members of the Selected Reserve and Individual Ready 
Reserve will be ordered to duty without their consent under this 
section, appropriate consideration shall be given to--
            ``(A) the length and nature of previous service, to assure 
        such sharing of exposure to hazards as the national security 
        and military requirements will reasonably allow;
            ``(B) family responsibilities; and
            ``(C) employment necessary to maintain the national health, 
        safety, or interest.
    ``(2) The Secretary of Defense shall prescribe such policies and 
procedures as the Secretary considers necessary to carry out this 
subsection.''.

SEC. 512. MILITARY RETIREMENT CREDIT FOR CERTAIN SERVICE BY NATIONAL 
              GUARD MEMBERS PERFORMED WHILE IN A STATE DUTY STATUS 
              IMMEDIATELY AFTER THE TERRORIST ATTACKS OF SEPTEMBER 11, 
              2001.

    Subsection (c) of section 514 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3232) is 
amended by adding at the end the following new paragraph:
            ``(3) In the State of New Jersey: Bergen, Hudson, Union, 
        and Middlesex.''.

SEC. 513. REPORT ON PRIVATE-SECTOR PROMOTION AND CONSTRUCTIVE 
              TERMINATION OF MEMBERS OF THE RESERVE COMPONENTS CALLED 
              OR ORDERED TO ACTIVE SERVICE.

    (a) Report Required.--Not later than March 1, 2007, 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 promotion and constructive termination 
by private-sector employers of members of the reserve components called 
or ordered to active service.
    (b) Collection of Information.--The Secretary of Defense shall base 
the report required under subsection (a) on information submitted 
voluntarily by members of the reserve components.
    (c) Constructive Termination.--In this section, the term 
``constructive termination'' means the voluntary resignation of an 
employee because of working conditions the employee finds unbearable.

                   Subtitle C--Education and Training

SEC. 521. AUTHORITY TO PERMIT MEMBERS WHO PARTICIPATE IN THE GUARANTEED 
              RESERVE FORCES DUTY SCHOLARSHIP PROGRAM TO PARTICIPATE IN 
              THE HEALTH PROFESSIONS SCHOLARSHIP PROGRAM AND SERVE ON 
              ACTIVE DUTY.

    Paragraph (3) of section 2107a(b) of title 10, United States Code, 
is amended--
            (1) by inserting ``or a cadet or former cadet under this 
        section who signs an agreement under section 2122 of this 
        title,'' after ``military junior college,''; and
            (2) by inserting ``, or former cadet,'' after ``consent of 
        the cadet'' and after ``submitted by the cadet''.

SEC. 522. JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTION 
              ELIGIBILITY EXPANSION.

     Section 2031 of title 10, United States Code, is amended--
            (1) in subsection (d)(1), by inserting ``who are receiving 
        retired or retainer pay,'' after ``Fleet Marine Corps 
        Reserve,''; and
            (2) by adding at the end the following new subsection (e):
    ``(e) Instead of, or in addition to, the detailing of active-duty 
officers and noncommissioned officers under subsection (c)(1), and the 
employment of retired officers and noncommissioned officers and members 
of the Fleet Reserve or Fleet Marine Corps Reserve under subsection 
(d), the Secretary of the military department concerned may authorize 
qualified institutions to employ as administrators and instructors in 
the program, retired officers and noncommissioned officers who qualify 
for retired pay for nonregular service under the provisions of chapter 
1223 of this title but for being under the age specified in section 
12731(a)(1) of this title for eligibility for such retired pay, whose 
qualifications are approved by the Secretary and the institution 
concerned, and who request such employment, subject to the following:
            ``(1) The compensation package for officers and 
        noncommissioned officers employed under this subsection shall 
        not be coupled with either active duty pay or retired pay, but 
        instead shall be at a rate contracted individually and 
        determined by the Secretary of the military department 
        concerned. The Secretary may pay the institution an amount the 
        Secretary determined to be appropriate, but the amount may not 
        be more than the amount that would be paid on behalf of an 
        equivalent retiree or member of the Fleet Reserve or Fleet 
        Marine Corps Reserve under the provisions of subsection (d)(1). 
        The Secretary may continue to pay individuals employed under 
        this subsection pre-determined compensation packages, even 
        after they reach the age of 60. Payments by the Secretary 
        concerned under this paragraph shall be made from funds 
        appropriated for that purpose.
            ``(2) Such a retired member is not, while so employed, 
        considered to be on active duty or inactive duty training for 
        any purpose.''.

SEC. 523. AUTHORITY FOR UNITED STATES MILITARY ACADEMY AND UNITED 
              STATES AIR FORCE ACADEMY PERMANENT MILITARY PROFESSORS TO 
              ASSUME COMMAND POSITIONS WHILE ON PERIODS OF SABBATICAL.

    (a) United States Military Academy.--Section 4334(d) of title 10, 
United States Code, is amended--
            (1) by striking ``permanent professors and the'';
            (2) by striking ``exercise'' and inserting ``exercises''; 
        and
            (3) by adding at the end the following new sentence: ``The 
        permanent professors exercise command only in the academic 
        department of the Academy and, at the discretion of the 
        Secretary of the Army, within Army units to which they are 
        assigned.''.
    (b) United States Air Force Academy.--Section 9334(b) of such title 
is amended--
            (1) by striking ``permanent professors and the''; and
            (2) by striking ``exercise'' and inserting ``exercises''; 
        and
            (3) by adding at the end the following new sentence: ``The 
        permanent professors exercise command only in the academic 
        department of the Academy and, at the discretion of the 
        Secretary of the Air Force, within Air Force units to which 
        they are assigned.''.

SEC. 524. EXPANSION OF SERVICE ACADEMY EXCHANGE PROGRAMS WITH FOREIGN 
              MILITARY ACADEMIES.

    (a) United States Military Academy.--
            (1) Number of participants in exchange program.--Subsection 
        (b) of section 4345 of title 10, United States Code, is amended 
        by striking ``24'' and inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such section is 
        amended--
                    (A) by striking ``for the Academy'' in paragraph 
                (3) and all that follows in that paragraph and 
                inserting ``for the Academy and such additional funds 
                as may be available to the Academy from a source other 
                than appropriated funds to support cultural immersion, 
                regional awareness, or foreign language training 
                activities in connection with the exchange program.''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) Expenditures in support of the exchange program from funds 
appropriated for the Academy may not exceed $1,000,000 during any 
fiscal year.''.
    (b) United States Naval Academy.--
            (1) Number of participants in exchange program.--Subsection 
        (b) of section 6957a of title 10, United States Code, is 
        amended by striking ``24'' and inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such section is 
        amended--
                    (A) by striking ``for the Academy'' in paragraph 
                (3) and all that follows in that paragraph and 
                inserting ``for the Academy and such additional funds 
                as may be available to the Academy from a source other 
                than appropriated funds to support cultural immersion, 
                regional awareness, or foreign language training 
                activities in connection with the exchange program.''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) Expenditures in support of the exchange program from funds 
appropriated for the Naval Academy may not exceed $1,000,000 during any 
fiscal year.''.
    (c) United States Air Force Academy.--
            (1) Number of participants in exchange program.--Subsection 
        (b) of section 9345 of title 10, United States Code, is amended 
        by striking ``24'' and inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such section is 
        amended--
                    (A) by striking ``for the Academy'' in paragraph 
                (3) and all that follows in that paragraph and 
                inserting ``for the Academy and such additional funds 
                as may be available to the Academy from a source other 
                than appropriated funds to support cultural immersion, 
                regional awareness, or foreign language training 
                activities in connection with the exchange program.''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) Expenditures in support of the exchange program from funds 
appropriated for the Academy may not exceed $1,000,000 during any 
fiscal year.''.
    (d) Effective Dates.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act. The amendments 
made by subsections (b) and (c) shall take effect on October 1, 2008.

SEC. 525. REVIEW OF LEGAL STATUS OF JUNIOR ROTC PROGRAM.

    (a) Review.--The Secretary of Defense shall conduct a review of the 
1976 legal opinion issued by the General Counsel of the Department of 
Defense regarding instruction of non-host unit students participating 
in Junior Reserve Officers' Training Corps programs. The review shall 
consider whether changes to law after the issuance of that opinion 
allow in certain circumstances for the arrangement for assignment of 
instructors that provides for the travel of an instructor from one 
educational institution to another once during the regular school day 
for the purposes of the Junior Reserve Officers' Training Corps program 
as an authorized arrangement that enhances administrative efficiency in 
the management of the program. If the Secretary, as a result of the 
review, determines that such authority is not available, the Secretary 
should also consider whether such authority should be available and 
whether there should be authority to waive the restrictions under 
certain circumstances.
    (b) Report.--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 containing the results of the review not 
later than 180 days after the date of the enactment of this Act.
    (c) Interim Authority.--A current institution that has more than 70 
students and is providing support to another educational institutional 
with more than 70 students and has been providing for the assignment of 
instructors from one school to the other may continue to provide such 
support until 180 days following receipt of the report under subsection 
(b).

                Subtitle D--General Service Authorities

SEC. 531. TEST OF UTILITY OF TEST PREPARATION GUIDES AND EDUCATION 
              PROGRAMS IN ENHANCING RECRUIT CANDIDATE PERFORMANCE ON 
              THE ARMED SERVICES VOCATIONAL APTITUDE BATTERY (ASVAB) 
              AND ARMED FORCES QUALIFICATION TEST (AFQT).

    (a) Requirement for Test.--The Secretary of Defense shall conduct a 
test of the utility of commercially available test preparation guides 
and education programs designed to assist recruit candidates achieve 
scores on military recruit qualification testing that better reflect 
the full potential of those recruit candidates in terms of aptitude and 
mental category. The test shall be conducted through the Secretaries of 
the Army, Navy and Air Force.
    (b) Assessment of Commercially Available Guides and Programs.--The 
test shall assess commercially available test preparation guides and 
education programs designed to enhance test performance. The test 
preparation guides assessed shall test both written formats and self-
paced computer-assisted programs. Education programs assessed may test 
both self-study textbook and computer-assisted courses and instructor-
led courses.
    (c) Objectives.--The objectives of the test are to determine the 
following:
            (1) The degree to which test preparation assistance 
        degrades test reliability and accuracy.
            (2) The degree to which test preparation assistance allows 
        more accurate testing of skill aptitudes and mental capability.
            (3) The degree to which test preparation assistance allows 
        individuals to achieve higher scores without sacrificing 
        reliability and accuracy.
            (4) What role is recommended for test preparation 
        assistance in military recruiting.
    (d) Control Group.--As part of the test, the Secretary shall 
identify a population of recruit candidates who will not receive test 
preparation assistance and will serve as a control group for the test. 
Data from recruit candidates participating in the test and data from 
recruit candidates in the control group shall be compared in terms of 
both (1) test performance, and (2) subsequent duty performance in 
training and unit settings following entry on active duty.
    (e) Number of Participants.--The Secretary shall provide test 
preparation assistance to a minimum of 2,000 recruit candidates and 
shall identify an equal number to be established as the control group 
population.
    (f) Duration of Test.--The Secretary shall begin the test not later 
than nine months after the date of the enactment of this Act. The test 
shall identify participants over a one-year period from the start of 
the test and shall assess duty performance for each participant for 18 
months following entry on active duty. The last participant shall be 
identified, but other participants may not be identified.
    (g) Report on Findings.--Not later than six months after completion 
of the duty performance assessment of the last identified participant 
in the test, the Secretary of Defense shall submit to the Committee on 
Armed Services in the Senate and the Committee on Armed Services of the 
House of Representatives a report providing the findings of the 
Secretary with respect to each of the objectives specified in 
subsection (c) and the Secretary's recommendations.

SEC. 532. NONDISCLOSURE OF SELECTION BOARD PROCEEDINGS.

    (a) Active-Duty Selection Board Proceedings.--
            (1) Extension to all active-duty boards.--Chapter 36 of 
        title 10, United States Code, is amended by inserting after 
        section 613 the following new section:
``Sec. 613a. Nondisclosure of board proceedings
    ``(a) Nondisclosure.--The proceedings of a selection board convened 
under section 611 this title may not be disclosed to any person not a 
member of the board.
    ``(b) Prohibited Uses of Board Records.--The discussions and 
deliberations of such a selection board and any written or documentary 
record of such discussions and deliberations--
            ``(1) are immune from legal process;
            ``(2) may not be admitted as evidence; and
            ``(3) may not be used for any purpose in any action, suit, 
        or judicial or administrative proceeding without the consent of 
        the Secretary of the military department concerned.
    ``(c) Applicability.--The section shall apply with respect to the 
proceedings of all selection boards convened under section 611 of this 
title, including selection boards convened before the date of the 
enactment of this section.''.
            (2) Conforming amendment.--Section 618 of such title is 
        amended by striking subsection (f).
    (b) Reserve Selection Board Proceedings.--Section 14104 of such 
title is amended to read as follows:
``Sec. 14104. Nondisclosure of board proceedings
    ``(a) Nondisclosure.--The proceedings of a selection board convened 
under section 14101of this title may not be disclosed to any person not 
a member of the board.
    ``(b) Prohibited Uses of Board Records.--The discussions and 
deliberations of such a selection board and any written or documentary 
record of such discussions and deliberations--
            ``(1) are immune from legal process;
            ``(2) may not be admitted as evidence; and
            ``(3) may not be used for any purpose in any action, suit, 
        or judicial or administrative proceeding without the consent of 
        the Secretary of the military department concerned.
    ``(c) Applicability.--The section shall apply with respect to the 
proceedings of all selection boards convened under section 14101 of 
this title, including selection boards convened before the date of the 
enactment of this section.''.
    (c) Clerical Amendments.--
            (1) The table of sections at the beginning of subchapter I 
        of chapter 36 of such title is amended by inserting after the 
        item relating to section 613 the following new item:

``14104. Nondisclosure of board proceedings.''.
            (2) The item relating to section 14104 in the table of 
        sections at the beginning of chapter 1403 of such title is 
        amended to read as follows:

``14104. Nondisclosure of board proceedings.''.

SEC. 533. REPORT ON EXTENT OF PROVISION OF TIMELY NOTICE OF LONG-TERM 
              DEPLOYMENTS.

    Not later than March 1, 2007, 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 number 
of members of the Armed Forces (shown by service and within each 
service by reserve component and active component) who, since September 
11, 2001, have not received at least 30 days notice (in the form of an 
official order) before a deployment that will last 180 days or more. 
With respect to members of the reserve components, the report shall 
describe the degree of compliance (or noncompliance) with Department of 
Defense policy concerning the amount of notice to be provided before 
long-term mobilizations or deployments.

       Subtitle E--Authorities Relating to Guard and Reserve Duty

SEC. 541. TITLE 10 DEFINITION OF ACTIVE GUARD AND RESERVE DUTY.

    Section 101 of title 10, United States Code, is amended--
            (1) by adding at the end of subsection (b) the following 
        new paragraph:
            ``(16) The term `Active Guard and Reserve' means a member 
        of a reserve component who is on active duty pursuant to 
        section 12301(d) of this title or, if a member of the Army 
        National Guard or Air National Guard, is on full-time National 
        Guard duty pursuant to section 502(f) of title 32, and who is 
        performing Active Guard and Reserve duty.''; and
            (2) in paragraph (6)(A) of subsection (d)--
                    (A) by striking ``or full-time National Guard 
                duty'' after ``means active duty''; and
                    (B) by striking ``, pursuant to an order to active 
                duty or full-time National Guard duty'' and inserting 
                ``pursuant to an order to full-time National Guard 
                duty,''.

SEC. 542. AUTHORITY FOR ACTIVE GUARD AND RESERVE DUTIES TO INCLUDE 
              SUPPORT OF OPERATIONAL MISSIONS ASSIGNED TO THE RESERVE 
              COMPONENTS AND INSTRUCTION AND TRAINING OF ACTIVE-DUTY 
              PERSONNEL.

    (a) AGR Duty Under Title 10.--Subsections (a) and (b) of section 
12310 of title 10, United States Code, are amended to read as follows:
    ``(a) Authority.--(1) The Secretary concerned may order a member of 
a reserve component under the Secretary's jurisdiction to active duty 
pursuant to section 12301(d) of this title to perform Active Guard and 
Reserve duty organizing, administering, recruiting, instructing, or 
training the reserve components.
    ``(2) A Reserve ordered to active duty under paragraph (1) shall be 
ordered in the Reserve's reserve grade. While so serving, the Reserve 
continues to be eligible for promotion as a Reserve, if otherwise 
qualified.
    ``(b) Duties.--A Reserve on active duty under subsection (a) may 
perform the following duties in addition to (and not in lieu of) the 
Reserve's primary Active Guard and Reserve duties described in 
subsection (a)(1):
            ``(1) Supporting operations or missions assigned in whole 
        or in part to the reserve components.
            ``(2) Supporting operations or missions performed or to be 
        performed by--
                    ``(A) a unit composed of elements from more than 
                one component of the same armed force; or
                    ``(B) a joint forces unit that includes--
                            ``(i) one or more reserve component units; 
                        or
                            ``(ii) a member of a reserve component 
                        whose reserve component assignment is in a 
                        position in an element of the joint forces 
                        unit.
            ``(3) Advising the Secretary of Defense, the Secretaries of 
        the military departments, the Joint Chiefs of Staff, and the 
        commanders of the unified combatant command regarding reserve 
        component matters.
            ``(4) Instructing or training in the United States or the 
        Commonwealth of Puerto Rico or possessions of the United States 
        of--
                    ``(A) active-duty members of the armed forces;
                    ``(B) members of foreign military forces (under the 
                same authorities and restrictions applicable to active-
                duty members providing such instruction or training);
                    ``(C) Department of Defense contractor personnel; 
                or
                    ``(D) Department of Defense civilian employees.''.
    (b) Military Technicians Under Title 10.--Section 10216(a) of such 
title is amended--
            (1) in paragraph (1)(C), by striking ``administration and'' 
        and inserting ``organizing, administering, instructing, or''; 
        and
            (2) by adding at the end the following new paragraph:
    ``(3) A military technician (dual status) who is employed under 
section 3101 of title 5 may perform the following duties in addition to 
(and not in lieu of) those primary duties described in paragraph (1):
            ``(A) Supporting operations or missions assigned in whole 
        or in part to the technician's unit;
            ``(B) Supporting operations or missions performed or to be 
        performed by--
                    ``(i) a unit composed of elements from more than 
                one component of the technician's armed force; or
                    ``(ii) a joint forces unit that includes--
                            ``(I) one or more units of the technician's 
                        component; or
                            ``(II) a member of the technician's 
                        component whose reserve component assignment is 
                        in a position in an element of the joint forces 
                        unit.
            ``(C) Instructing or training in the United States or the 
        Commonwealth of Puerto Rico or possessions of the United States 
        of--
                    ``(i) active-duty members of the armed forces;
                    ``(ii) members of foreign military forces (under 
                the same authorities and restrictions applicable to 
                active-duty members providing such instruction or 
                training);
                    ``(iii) Department of Defense contractor personnel; 
                or
                    ``(iv) Department of Defense civilian employees.''.
    (c) National Guard Title 32 Training Duty.--Section 502(f) of title 
32, United States Code, title is amended--
            (1) by inserting ``(1)'' before ``Under regulations'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (3) by striking the last sentence and inserting the 
        following:
    ``(2) The training or duty ordered to be performed under paragraph 
(1) may include the following:
            ``(A) Support of operations or missions undertaken by the 
        member's unit at the request of the President or Secretary of 
        Defense.
            ``(B) Support of training operations and training missions 
        assigned in whole or in part to the National Guard by the 
        Secretary concerned, but only to the extent that such training 
        missions and training operations--
                    ``(i) are performed in the territorial limits of 
                the United States, its territories and possessions, the 
                District of Columbia, and the Commonwealth of Puerto 
                Rico; and
                    ``(ii) are only to instruct active duty military, 
                foreign military (under the same authorities and 
                restrictions applicable to active duty troops), 
                Department of Defense contractor personnel, or 
                Department of Defense civilian employees.
    ``(3) Duty without pay shall be considered for all purposes as if 
it were duty with pay.''.
    (d) National Guard Technicians Under Title 32.--Section 709(a) of 
title 32, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``administration and'' and 
                inserting ``organizing, administering, instructing, 
                or''; and
                    (B) by striking ``and'' at the end of such 
                paragraph;
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) the performance of the following duties in addition 
        to (and not in lieu of) those duties described by paragraphs 
        (1) and (2):
                    ``(A) Support of operations or missions undertaken 
                by the technician's unit at the request of the 
                President or the Secretary of Defense.
                    ``(B) Support of Federal training operations or 
                Federal training missions assigned in whole or in part 
                to the technician's unit.
                    ``(C) Instructing or training in the United States 
                or the Commonwealth of Puerto Rico or possessions of 
                the United States of--
                            ``(i) active-duty members of the armed 
                        forces;
                            ``(ii) members of foreign military forces 
                        (under the same authorities and restrictions 
                        applicable to active-duty members providing 
                        such instruction or training);
                            ``(iii) Department of Defense contractor 
                        personnel; or
                            ``(iv) Department of Defense civilian 
                        employees.''.
    (e) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``328. Active Guard and Reserve duty: Governor's authority.''.

SEC. 543. GOVERNOR'S AUTHORITY TO ORDER MEMBERS TO ACTIVE GUARD AND 
              RESERVE DUTY.

    (a) In General.--Chapter 3 of title 32, United States Code, is 
amended by adding at the end the following new section:
``Sec. 328. Active Guard and Reserve duty: Governor's authority
    ``(a) Authority.--The Governor of a State or the Commonwealth of 
Puerto Rico, Guam, or the Virgin Islands, or the commanding general of 
the District of Columbia National Guard, as the case may be, with the 
consent of the Secretary concerned, may order a member of the National 
Guard to perform Active Guard and Reserve duty, as defined by section 
101(d)(6) of title 10, pursuant to section 502(f) of this title.
    ``(b) Duties.--A member of the National Guard performing duty under 
subsection (a) may perform the following duties in addition to (and not 
in lieu of) that member's primary Active Guard and Reserve duties of 
organizing, administering, recruiting, instructing, and training the 
reserve components:
            ``(1) Support of operations or missions undertaken by the 
        member's unit at the request of the President or the Secretary 
        of Defense.
            ``(2) Support of training operations and training missions 
        assigned in whole or in part by the Secretary concerned to the 
        National Guard, but only to the extent that such training 
        operation and training missions--
                    ``(A) are performed in the territorial limits of 
                the United States, its territories and possessions, and 
                the Commonwealth of Puerto Rico; and
                    ``(B) are only to instruct--
                            ``(i) active-duty members of the armed 
                        forces;
                            ``(ii) members of foreign military forces 
                        (under the same authorities and restrictions 
                        applicable to active-duty members providing 
                        such instruction or training);
                            ``(iii) Department of Defense contractor 
                        personnel; or
                            ``(iv) Department of Defense civilian 
                        employees.''.

SEC. 544. NATIONAL GUARD OFFICERS AUTHORITY TO COMMAND.

    Section 325 of title 32, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``in command of a 
        National Guard unit'';
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Advance Authorization and Consent.--The President and 
Governor of the State or Commonwealth of Puerto Rico, Guam, or the 
Virgin Islands, or the commanding general of the District of Columbia 
National Guard, as the case may be, respectively, may give the 
authorization and consent required by subsection (a)(2), in advance, 
for the purpose of establishing the succession of command of a unit.''; 
and
            (4) by adding at the end the following new subsection:
    ``(d) National Guard Duties.--An officer who is not relieved from 
duty in the National Guard while serving on active duty pursuant to 
subsection (a)(2) may perform any duty authorized to be performed by 
the laws of that officer's State or the laws of the Commonwealth of 
Puerto Rico, Guam, the Virgin Islands, or the District of Columbia, as 
the case may be, to be performed by the National Guard without regard 
to the limitations imposed by section 1385 of title 18.''.

SEC. 545. EXPANSION OF OPERATIONS OF CIVIL SUPPORT TEAMS.

    (a) In General.--Section 12310(c) of title 10, United States Code, 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``involving--'' and inserting 
                ``involving any of the following:''; and
                    (B) by striking subparagraphs (A) and (B) and 
                inserting the following:
            ``(A) The use or threatened use of a weapon of mass 
        destruction (as defined in section 12304(i)(2) of this title) 
        in the United States.
            ``(B) A terrorist attack or threatened terrorist attack in 
        the United States that results, or could result, in 
        catastrophic loss of life or property.
            ``(C) The intentional or unintentional release of nuclear, 
        biological, radiological, or toxic or poisonous chemical 
        materials in the United States that results, or could result, 
        in catastrophic loss of life or property.
            ``(D) A natural or manmade disaster in the United States 
        that results in, or could result in, catastrophic loss of life 
        or property.'';
            (2) by amending paragraph (3) to read as follows:
    ``(3) A Reserve may perform duty described in paragraph (1) only 
while assigned to a reserve component weapons of mass destruction civil 
support team.''; and
            (3) by adding at the end the following new paragraph:
    ``(7) In this subsection, the term `United States' includes the 
Commonwealth of Puerto Rico, Guam, and the Virgin Islands.''.
    (b) Technical and Conforming Amendments.--Such section is further 
amended--
            (1) by striking the subsection heading and inserting 
        ``Operations Relating to Defense Against Weapons of Mass 
        Destruction and Terrorist Attacks.--'';
            (2) in paragraph (5), by striking ``rapid assessment 
        element team'' and inserting ``weapons of mass destruction 
        civil support team''; and
            (3) in paragraph (6)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``paragraph (3)'' and inserting ``paragraphs 
                (1) and (3)''; and
                    (B) in subparagraph (B), by striking ``paragraph 
                (3)(B)'' and inserting ``paragraph (3)''.

                   Subtitle F--Decorations and Awards

SEC. 551. AUTHORITY FOR PRESENTATION OF MEDAL OF HONOR FLAG TO LIVING 
              MEDAL OF HONOR RECIPIENTS AND TO LIVING PRIMARY NEXT-OF-
              KIN OF DECEASED MEDAL OF HONOR RECIPIENTS.

    (a) Army.--Section 3755 of title 10, United States Code, is 
amended--
            (1) by striking ``after October 23, 2002''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of a posthumous presentation of the medal, the flag 
        shall be presented to the person to whom the medal is 
        presented''.
    (b) Navy.--Section 6257 of such title is amended--
            (1) by striking ``after October 23, 2002''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of a posthumous presentation of the medal, the flag 
        shall be presented to the person to whom the medal is 
        presented''.
    (c) Air Force.--Section 8755 of such title is amended--
            (1) by striking ``after October 23, 2002''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of a posthumous presentation of the medal, the flag 
        shall be presented to the person to whom the medal is 
        presented''.
    (d) Coast Guard.--Section 505 of title 14, United States Code, is 
amended--
            (1) by striking ``after October 23, 2002''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of a posthumous presentation of the medal, the flag 
        shall be presented to the person to whom the medal is 
        presented''.
    (e) Presentation of Flag for Prior Recipients of Medal of Honor.--
            (1) Living recipients.--The President shall provide for the 
        presentation of the Medal of Honor Flag as expeditiously as 
        possible after the date of the enactment of this Act to each 
        living recipient of the Medal of Honor who was awarded the 
        Medal of Honor before that date.
            (2) Survivors of deceased recipients.--The President shall 
        provide for posthumous presentation of the Medal of Honor Flag, 
        upon written application therefor, to the primary next of kin 
        of any recipient of the Medal of Honor who was awarded the 
        Medal of Honor before the date of the enactment of this Act and 
        who is deceased as of such date (or who dies after such date 
        and before the presentation required by paragraph (1)). For 
        purposes of this paragraph, the primary next-of-kin is the 
        person who would be entitled to receive the award of the Medal 
        of Honor for such deceased individual if the award were being 
        made posthumously at the time of the presentation of the Medal 
        of Honor Flag.
            (3) Medal of honor flag.--In this subsection, the term 
        ``Medal of Honor Flag'' means the flag designated under section 
        903 of title 36, United States Code.

SEC. 552. COLD WAR VICTORY MEDAL.

    (a) Authority.--Chapter 57 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1135. Cold War Victory Medal
    ``(a) Medal Authorized.--The Secretary concerned shall issue a 
service medal, to be known as the `Cold War Victory Medal', to persons 
eligible to receive the medal under subsection (b). The Cold War 
Victory Medal shall be of an appropriate design approved by the 
Secretary of Defense, with ribbons, lapel pins, and other 
appurtenances.
    ``(b) Eligible Persons.--The following persons are eligible to 
receive the Cold War Victory Medal:
            ``(1) A person who--
                    ``(A) performed active duty or inactive duty 
                training as an enlisted member during the Cold War;
                    ``(B) completed the person's initial term of 
                enlistment or, if discharged before completion of such 
                initial term of enlistment, was honorably discharged 
                after completion of not less than 180 days of service 
                on active duty; and
                    ``(C) has not received a discharge less favorable 
                than an honorable discharge or a release from active 
                duty with a characterization of service less favorable 
                than honorable.
            ``(2) A person who--
                    ``(A) performed active duty or inactive duty 
                training as a commissioned officer or warrant officer 
                during the Cold War;
                    ``(B) completed the person's initial service 
                obligation as an officer or, if discharged or separated 
                before completion of such initial service obligation, 
                was honorably discharged after completion of not less 
                than 180 days of service on active duty; and
                    ``(C) has not been released from active duty with a 
                characterization of service less favorable than 
                honorable and has not received a discharge or 
                separation less favorable than an honorable discharge.
    ``(c) One Award Authorized.--Not more than one Cold War Victory 
Medal may be issued to any person.
    ``(d) Issuance to Representative of Deceased.--If a person 
described in subsection (b) dies before being issued the Cold War 
Victory Medal, the medal shall be issued to the person's 
representative, as designated by the Secretary concerned.
    ``(e) Replacement.--Under regulations prescribed by the Secretary 
concerned, a Cold War Victory Medal that is lost, destroyed, or 
rendered unfit for use without fault or neglect on the part of the 
person to whom it was issued may be replaced without charge.
    ``(f) Application for Medal.--The Cold War Victory Medal shall be 
issued upon receipt by the Secretary concerned of an application for 
such medal, submitted in accordance with such regulations as the 
Secretary prescribes.
    ``(g) Uniform Regulations.--The Secretary of Defense shall ensure 
that regulations prescribed by the Secretaries of the military 
departments under this section are uniform so far as is practicable.
    ``(h) Definition.--In this section, the term `Cold War' means the 
period beginning on September 2, 1945, and ending at the end of 
December 26, 1991.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1135. Cold War Victory Medal.''.

SEC. 553. POSTHUMOUS AWARD OF PURPLE HEART FOR PRISONERS OF WAR WHO DIE 
              IN OR DUE TO CAPTIVITY.

    (a) Deceased POWs Not Otherwise Eligible for Purple Heart.--Chapter 
57 of title 10, United States Code, is amended by adding after section 
1135, as added by section 552(a), the following new section:
``Sec. 1136. Purple Heart: posthumous award for prisoners of war or 
              former prisoners of war dying in or due to captivity
    ``(a) For purposes of the award of the Purple Heart, the Secretary 
concerned shall treat a death described in subsection (b) in the same 
manner as the death of a member of the armed forces in action as the 
result of an act of an enemy of the United States.
    ``(b) A death described in this subsection is either of the 
following:
            ``(1) The death of a member of the armed forces who dies in 
        captivity under circumstances establishing eligibility for the 
        prisoner-of-war medal under section 1128 of this title but 
        under circumstances not otherwise establishing eligibility for 
        the Purple Heart.
            ``(2) The death of a member or former member of the armed 
        forces who following captivity as a prisoner of war is issued 
        the prisoner-of-war medal under section 1128 of this title and 
        who dies due to a disease or disability that was incurred 
        during that captivity, unless the member or former member 
        received a Purple Heart due to the injury or conditions 
        resulting in that disease or disability.
    ``(c) The Secretary of Defense shall prescribe regulations for 
determining eligibility for the Purple Heart under this section. Such 
regulations shall include criteria for the determination under 
paragraph (2) of subsection (b) of whether a death is due to a disease 
or disability incurred while a prisoner of war.
    ``(d) This section applies to any member of the armed forces who is 
held as a prisoner of war after December 7, 1941. ''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
1135, as added by section 552(b), the following new item:

``1136. Purple Heart: posthumous award for prisoners of war or former 
                            prisoners of war dying in or due to 
                            captivity.''.
    (c) Retroactive Awards.--In the case of a member or former member 
of the Armed Forces covered by section 1135 of title 10, United States 
Code, whose death is before the date of the enactment of this Act, the 
Secretary concerned shall award the Purple Heart under that section 
upon receipt of an application that is made to the Secretary in such 
manner, and containing such information, as the Secretary requires.

SEC. 554. ADVANCEMENT ON THE RETIRED LIST OF CERTAIN DECORATED RETIRED 
              NAVY AND MARINE CORPS OFFICERS.

    (a) Advancement on Retired List.--The Secretary of the Navy shall, 
upon receipt of a qualifying application, advance on the retired list 
of the Navy or Marine Corps, as applicable, any retired officer of the 
Navy or Marine Corps described in subsection (b). Each such officer 
shall be advanced to the next higher grade above the officer's retired 
grade as of the day before the date of the enactment of this Act.
    (b) Covered Officers.--Subsection (a) applies to any retired 
officer of the Navy or Marine Corps--
            (1) who was eligible to retire before November 1, 1959, but 
        who retired on or after that date; and
            (2) who, under the provisions of law in effect before 
        November 1, 1959, would have been eligible, by reason of having 
        been specifically commended for performance of duty in actual 
        combat, to have been retired in the next higher grade if the 
        officer had retired before that date.
    (c) Qualifying Application.--A qualifying application is an 
application from an officer described in subsection (b) or, in the case 
of a deceased officer, the surviving spouse or another immediate family 
member (as determined by the Secretary) of the officer, that--
            (1) requests advancement on the retired list under this 
        section; and
            (2) provides such information as the Secretary may require.
    (d) Effect of Advancement on Retired List.--The advancement of an 
officer on the retired list pursuant to subsection (a) shall not 
affect--
            (1) in the case of a retired office who is living as of the 
        date of the enactment of this Act, the retired pay or other 
        benefits of the officer or the grade in which the officer could 
        be ordered or recalled to active duty; and
            (2) any benefit to which any other person is or may become 
        entitled based upon the officer's service.

SEC. 555. REPORT ON DEPARTMENT OF DEFENSE PROCESS FOR AWARDING 
              DECORATIONS.

    (a) Review.-- The Secretary of Defense shall conduct a review of 
the policy, procedures, and processes of the military departments for 
awarding decorations to members of the Armed Forces.
    (b) Time Periods.--As part of the review, the Secretary shall 
determine how long the award process takes--
            (1) from the time a recommendation for the award of a 
        decoration is submitted until the time the award of the 
        decoration is approved; and
            (2) from the time award of a decoration is approved until 
        the time when the decoration is presented to the recipient.
    (c) Reserve Components.--In conducting the review, the Secretary 
shall ensure that the timeliness of the awards process for members of 
the reserve components is the same or similar as that for members of 
the active components.
    (d) Report.--Not later than 90 days after the date of the enactment 
of this Act, 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 containing the Secretary's findings as a 
result of the review under subsection (a), together with a plan for 
implementing whatever changes are determined to be appropriate to the 
process for awarding decorations in order to ensure that decorations 
are awarded in a timely manner, to the extent practicable.

               Subtitle G--Matters Relating to Casualties

SEC. 561. CRITERIA FOR REMOVAL OF MEMBER FROM TEMPORARY DISABILITY 
              RETIRED LIST.

    (a) Criteria.--Section 1210(e) of title 10, United States Code, is 
amended by inserting ``of a permanent nature and stable and is'' after 
``physical disability''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to any case received for consideration by a physical evaluation 
board after the date of the enactment of this Act.

SEC. 562. DEPARTMENT OF DEFENSE COMPUTER/ELECTRONIC ACCOMMODATIONS 
              PROGRAM FOR SEVERELY WOUNDED MEMBERS.

    (a) In General.--Chapter 58 of title 10, United States Code, is 
amended by inserting after section 1150 the following new section:
``Sec. 1151. Severely wounded members: assistive technology and 
              services
    ``(a) Authority.--The Secretary of Defense may provide assistive 
technology, assistive technology devices, and assistive technology 
services, as those terms are defined in section 3 of the Assistive 
Technology Act of 1998 (29 U.S.C. 3002), to a member of the armed 
forces who has sustained a severe or debilitating illness or injury 
while serving in support of a contingency operation.
    ``(b) Duration and Provision of Technology and Services.--The 
Secretary may provide technology and services authorized by subsection 
(a) for an indefinite period, without regard to whether the person 
assisted continues to be a member of the armed forces.
    ``(c) Authority to Allow Retention of Devices, etc.--Upon the 
separation from active service of a member who has been provided 
assistance as specified in subsection (a), the Secretary may allow the 
member to retain any assistive technology, device, or service provided 
to the member before the member's separation.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1150 the following new item:

``1151. Severely wounded members: assistive technology and services.''.

SEC. 563. TRANSPORTATION OF REMAINS OF CASUALTIES DYING IN A THEATER OF 
              COMBAT OPERATIONS.

    (a) In General.--The Secretary concerned shall provide 
transportation of the remains of a member of the Armed Forces who dies 
in a combat theater of operations and whose remains are returned to the 
United States through the mortuary facility at Dover Air Force Base, 
Delaware, in accordance with section 1482(a)(8) of title 10, United 
States Code, and this section.
    (b) Escort.--The Secretary concerned shall ensure that such remains 
are escorted under that section at all times by at least one person, 
who shall be a member of the Armed Forces of appropriate grade.
    (c) Air Transportation From Dover AFB.--
            (1) Use of military aircraft.--If transportation of remains 
        described in subsection (a) from Dover Air Force Base to the 
        escorted remains destination includes transportation by 
        aircraft, such transportation by aircraft (unless otherwise 
        directed by the next-of-kin) shall be made by military aircraft 
        or military-contracted aircraft to the military airfield that 
        is closest to the escorted remains destination. In the case of 
        any such flight, the exclusive mission of the flight shall be 
        the transportation of those remains.
            (2) Escorted remains destination.--In this subsection, the 
        term ``escorted remains destination'' means the place to which 
        remains are to be transported pursuant to section 1482(a)(8) of 
        title 10, United States Code.
    (d) Honor Guard Escort.--In a case of the transportation of remains 
covered by subsection (a), there shall be a military escort (in 
addition to the escort under subsection (b)) that either travels with 
the remains from Dover Air Force Base or meets the remains at the place 
to which transportation by air (or by rail or motor vehicle, if 
applicable) is made. Such escort shall be of sufficient number to 
transfer the casket containing the remains from the aircraft (or other 
means of transportation to that place) to a hearse for local 
transportation. Such escort shall remain with the remains until the 
remains are delivered to the next-of-kin. Such escort shall consist of 
members of the Armed Forces on active duty or in the Ready Reserve.

SEC. 564. ANNUAL BUDGET DISPLAY OF FUNDS FOR POW/MIA ACTIVITIES OF 
              DEPARTMENT OF DEFENSE.

    (a) Consolidated Budget Justification.--Chapter 9 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 234. POW/MIA activities: display of budget information
    ``(a) Submission With Annual Budget Justification Documents.--The 
Secretary of Defense shall submit to Congress, as a part of the defense 
budget materials for a fiscal year, a consolidated budget justification 
display, in classified and unclassified form, that covers all programs 
and activities of Department of Defense POW/MIA accounting and recovery 
organizations.
    ``(b) Requirements for Budget Display.--The budget display under 
subsection (a) for a fiscal year shall include the following for each 
such organization:
            ``(1) The amount, by appropriation and functional area, 
        originally requested by that organization for that fiscal year, 
        with the supporting narrative describing the rationale for the 
        requested funding level.
            ``(2) A summary of actual or estimated expenditures by that 
        organization for the fiscal year during which the budget is 
        submitted and for the fiscal year preceding that year.
            ``(3) The amount in the budget for that organization.
            ``(4) A detailed explanation of any inconsistencies between 
        the amount originally requested by the organization (shown 
        pursuant to paragraph (1)) and the amount in the budget for 
        that organization (shown pursuant to paragraph (3)).
            ``(5) The budget estimate for that organization for the 
        next five fiscal years after the fiscal year for which the 
        budget is submitted.
    ``(c) Department of Defense POW/MIA Accounting and Recovery 
Organizations.--In this section, the term `Department of Defense POW/
MIA accounting and recovery organization' means any of the following 
(and any successor organization):
            ``(1) The Defense Prisoner of War/Missing Personnel Office 
        (DPMO).
            ``(2) The Joint POW/MIA Accounting Command (JPAC).
            ``(3) The Armed Forces DNA Identification Laboratory 
        (AFDIL).
            ``(4) The Life Sciences Equipment Laboratory (LSEL) of the 
        Air Force.
            ``(5) Any other element of the Department of Defense the 
        mission of which (as designated by the Secretary of Defense) 
        involves the accounting for and recovery of members of the 
        armed forces who are missing in action or prisoners of war or 
        who are unaccounted for.
    ``(d) Other Definitions.--In this section:
            ``(1) The term `budget', with respect to a fiscal year, 
        means the budget for that fiscal year that is submitted to 
        Congress by the President under section 1105(a) of title 31.
            ``(2) The term `defense budget materials', with respect to 
        a fiscal year, means the materials submitted to Congress by the 
        Secretary of Defense in support of the budget for that fiscal 
        year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``234. POW/MIA activities: display of budget information.''.

   Subtitle H--Assistance to Local Educational Agencies for Defense 
                          Dependents Education

SEC. 571. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
              AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
              FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Assistance to Schools With Significant Numbers of Military 
Dependent Students.--Of the amount authorized to be appropriated 
pursuant to section 301(5) for operation and maintenance for Defense-
wide activities, $50,000,000 shall be available only for the purpose of 
providing assistance to local educational agencies under subsection (a) 
of section 572 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 7703b).
    (b) Assistance to Schools With Enrollment Changes Due to Base 
Closures, Force Structure Changes, or Force Relocations.--Of the amount 
authorized to be appropriated pursuant to section 301(5) for operation 
and maintenance for Defense-wide activities, $15,000,000 shall be 
available only for the purpose of providing assistance to local 
educational agencies under subsection (b) of such section 572.
    (c) Local Educational Agency Defined.--In this section, 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. 572. ENROLLMENT IN DEFENSE DEPENDENTS' EDUCATION SYSTEM OF 
              DEPENDENTS OF FOREIGN MILITARY MEMBERS ASSIGNED TO 
              SUPREME HEADQUARTERS ALLIED POWERS, EUROPE.

    Section 1404A of the Defense Dependents' Education Act of 1978 (20 
U.S.C. 923a) is amended--
            (1) in subsection (a)--
                    (A) by striking ``of the children'' and inserting 
                ``of--
    ``(1) the children'';
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) the children of a foreign military member assigned to 
        the Supreme Headquarters Allied Powers, Europe, but only in a 
        school of the defense dependents' education system in Mons, 
        Belgium.''; and
            (2) by adding at the end the following new subsection:
    ``(c) Special Rules Regarding Enrollment of Dependents of Foreign 
Military Members Assigned to Supreme Headquarters Allied Powers, 
Europe.--(1) In the regulations required by subsection (a), the 
Secretary shall prescribe a methodology based on the estimated total 
number of dependents of sponsors under section 1414(2) enrolled in 
schools of the defense dependents' education system in Mons, Belgium, 
to determine the number of children described in paragraph (2) of 
subsection (a) who will be authorized to enroll under such subsection.
    ``(2) If the number of children described in paragraph (2) of 
subsection (a) who seek enrollment in schools of the defense 
dependents' education system in Mons, Belgium, exceeds the number 
authorized by the Secretary under paragraph (1), the Secretary may 
enroll the additional children on a space-available, tuition-free basis 
notwithstanding section 1404(d)(2).''.

                      Subtitle I--Postal Benefits

SEC. 575. POSTAL BENEFITS PROGRAM FOR MEMBERS OF THE ARMED FORCES.

    (a) In General.--The Secretary of Defense, in consultation with the 
United States Postal Service, shall provide for a program under which 
postal benefits shall be provided to qualified individuals in 
accordance with this subtitle.
    (b) Qualified Individual.--For purposes of this subtitle, the term 
``qualified individual'' means an individual--
            (1) who is a member of the Armed Forces on active duty (as 
        defined in section 101 of title 10, United States Code); and
            (2) who is--
                    (A) serving in Iraq or Afghanistan; or
                    (B) hospitalized at a facility under the 
                jurisdiction of the Armed Forces as a result of a 
                disease or injury incurred as a result of service in 
                Iraq or Afghanistan.
    (c) Postal Benefits Described.--
            (1) In general.--The postal benefits provided under this 
        subtitle shall consist of such coupons or other similar 
        evidence of credit (whether in printed, electronic, or other 
        format, and hereinafter in this subtitle referred to as 
        ``vouchers'') as the Secretary of Defense (in consultation with 
        the Postal Service) shall determine, entitling the bearer or 
        user to make qualified mailings free of postage.
            (2) Qualified mailing.--For purposes of this subtitle, the 
        term ``qualified mailing'' means the mailing of any mail matter 
        which--
                    (A) is described in subparagraph (A), (B), (C), or 
                (D) of paragraph (3);
                    (B) is sent from within an area served by a United 
                States post office; and
                    (C) is addressed to a qualified individual.
            (3) Mail matter described.--The mail matter described in 
        this paragraph is--
                    (A) any letter mail not exceeding 13 ounces in 
                weight and having the character of personal 
                correspondence;
                    (B) any sound- or video-recorded communications not 
                exceeding 15 pounds in weight and having the character 
                of personal correspondence;
                    (C) any ground parcel not exceeding 15 pounds in 
                weight; and
                    (D) any bound printed matter not exceeding 15 
                pounds in weight.
            (4) Limitations.--
                    (A) Number.--An individual shall be eligible for 
                one voucher for each month in which such individual is 
                a qualified individual.
                    (B) Use.--Any such voucher may not be used--
                            (i) for more than a single qualified 
                        mailing; or
                            (ii) after the earlier of--
                                    (I) the expiration date of such 
                                voucher, as designated by the Secretary 
                                of Defense; or
                                    (II) the last day of the one-year 
                                period referred to in section 577.
            (5) Coordination rule.--Postal benefits under this subtitle 
        shall be in addition to, and not in lieu of, any reduced rates 
        of postage or other similar benefits which might otherwise be 
        available by or under law, including any rates of postage 
        resulting from the application of section 3401(b) of title 39, 
        United States Code.
    (d) Regulations.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Defense (in consultation with 
the Postal Service) shall prescribe any regulations necessary to carry 
out this subtitle, including--
            (1) procedures by which vouchers will be provided or made 
        available (including measures to allow vouchers to reach, in a 
        timely manner, the persons selected by qualified individuals to 
        use the vouchers); and
            (2) procedures to ensure that the number of vouchers 
        provided or made available with respect to any qualified 
        individual complies with subsection (c)(4)(A).

SEC. 576. FUNDING.

    (a) In General.--Funding for the expenses incurred by the 
Department of Defense for any fiscal year in providing postal benefits 
under this subtitle shall be paid out of funds authorized to be 
appropriated for that fiscal year for a contingent emergency reserve 
fund or as an emergency supplemental appropriations.
    (b) Transfers to Postal Service.--
            (1) Based on estimates.--The Secretary of Defense shall 
        transfer to the Postal Service, out of any amount so 
        appropriated and in advance of each calendar quarter during 
        which postal benefits under this subtitle may be used, an 
        amount equal to the amount of postal benefits that the 
        Secretary of Defense estimates will be used during such 
        quarter, reduced or increased (as the case may be) by any 
        amounts by which the Secretary finds that a determination under 
        this subtitle for a prior quarter was greater than or less than 
        the amount finally determined for such quarter.
            (2) Based on final determination.--A final determination of 
        the amount necessary to correct any previous determination 
        under this section, and any transfer of amounts between the 
        Postal Service and the Department of Defense based on that 
        final determination, shall be made not later than six months 
        after the end of the one-year period referred to in section 
        577.
    (c) Consultation Required.--All estimates and determinations under 
this section of the amount of postal benefits under this subtitle used 
in any period shall be made by the Secretary of Defense in consultation 
with the Postal Service.

SEC. 577. DURATION.

    The postal benefits under this subtitle shall apply with respect to 
mail matter sent during the one-year period beginning on the date on 
which the regulations under section 575(d) take effect.

                       Subtitle J--Other Matters

SEC. 581. REDUCTION IN DEPARTMENT OF DEFENSE ACCRUAL CONTRIBUTIONS TO 
              DEPARTMENT OF DEFENSE MILITARY RETIREMENT FUND.

    (a) Determination of Contributions to the Fund.--
            (1) Calculation of annual department of defense 
        contribution.--Subsection (b)(1) of section 1465 of title 10, 
        United States Code, is amended--
                    (A) in subparagraph (A)(ii), by striking ``to 
                members of '' and all that follows and inserting ``for 
                active duty (other than the Coast Guard) and for full-
                time National Guard duty (other than full-time National 
                Guard duty for training only), but excluding any duty 
                that would be excluded for active-duty end strength 
                purposes by section 115(i) of this title.''; and
                    (B) in subparagraph (B)(ii)--
                            (i) by striking ``Ready Reserve'' and 
                        inserting ``Selected Reserve''; and
                            (ii) by striking ``Coast Guard and other 
                        than members on full-time National Guard duty 
                        other than for training) who are'' and 
                        inserting ``Coast Guard) for service''.
            (2) Quadrennial actuarial valuation.--Subsection (c)(1) of 
        such section is amended --
                    (A) in subparagraph (A), by striking ``for members 
                of the armed forces'' and all that follows through 
                ``for training only)'' and inserting ``for active duty 
                (other than the Coast Guard) and for full-time National 
                Guard duty (other than full-time National Guard duty 
                for training only), but excluding any duty that would 
                be excluded for active-duty end strength purposes by 
                section 115(i) of this title''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``Ready Reserve'' and 
                        inserting ``Selected Reserve''; and
                            (ii) by striking ``Coast Guard and other 
                        than members on full-time National Guard duty 
                        other than for training) who are'' and 
                        inserting ``Coast Guard) for service''.
    (b) Payments Into the Fund.--Section 1466(a) of such title is 
amended--
            (1) in paragraph (1)(B), by striking ``by members'' and all 
        that follows and inserting ``for active duty (other than the 
        Coast Guard) and for full-time National Guard duty (other than 
        full-time National Guard duty for training only), but excluding 
        any duty that would be excluded for active-duty end strength 
        purposes by section 115(i) of this title''; and
            (2) in paragraph (2)(B)--
                    (A) by striking ``Ready'' and inserting 
                ``Selected''; and
                    (B) by striking ``Coast Guard and other than 
                members on full-time National Guard duty other than for 
                training) who are'' and inserting ``Coast Guard) for 
                service''.

SEC. 582. DENTAL CORPS OF THE BUREAU OF MEDICINE AND SURGERY.

    (a) Deletion of References to Dental Division.--Section 5138 of 
title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking the first sentence; and
                    (B) by striking ``Dental Division'' and inserting 
                ``Dental Corps'' in the second sentence;
            (2) in subsection (b), by striking ``Dental Division'' and 
        inserting ``Dental Corps'';
            (3) in subsection (c)--
                    (A) by striking ``so'' in the first sentence;
                    (B) by striking ``, that all such'' in the first 
                sentence and all that follows through ``Dental 
                Division''; and
                    (C) by striking the second sentence.; and
    (b) Functions of Chief of Dental Corps.--Subsection (d) of such 
section is amended to read as follows:
    ``(d) The Chief of the Dental Corps shall serve as the advisor to 
the Surgeon General on all matters relating directly to dentistry, 
including professional standards and policies for dental practice.''.
    (c) Clerical Amendments.--
            (1) The heading of such section is amended to read as 
        follows:
``Sec. 5138. Bureau of Medicine and Surgery: Dental Corps; Chief''.
            (2) The item relating to section 5138 in the table of 
        sections at the beginning of chapter 513 of such title is 
        amended to read as follows:

``5138. Bureau of Medicine and Surgery: Dental Corps; Chief.''.

SEC. 583. PERMANENT AUTHORITY FOR PRESENTATION OF RECOGNITION ITEMS FOR 
              RECRUITMENT AND RETENTION PURPOSES.

    Section 2261 of title 10, United States Code, is amended by 
striking subsection (d).

SEC. 584. REPORT ON FEASIBILITY OF ESTABLISHMENT OF MILITARY ENTRANCE 
              PROCESSING COMMAND STATION ON GUAM.

    (a) Review.--The Secretary of Defense shall review the feasibility 
and cost effectiveness of establishing on Guam a station of the 
Military Entrance Processing Command to process new recruits for the 
Armed Forces who are drawn from the western Pacific region. For the 
purposes of the review, the cost effectiveness of establishing such a 
facility on Guam shall be measured, in part, against the system in 
effect in early 2006 of using Hawaii and other locations for the 
processing of new recruits from Guam and other locations in the western 
Pacific region.
    (b) Report.--Not later than June 1, 2007, 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 
providing the results of the study under subsection (a).

SEC. 585. PERSONS AUTHORIZED TO ADMINISTER ENLISTMENT AND APPOINTMENT 
              OATHS.

    (a) Enlistment Oath.--Section 502 of title 10, United States Code, 
is amended--
            (1) by inserting ``(a) Enlistment Oath.--'' before ``Each 
        person enlisting'';
            (2) by striking the last sentence; and
            (3) by adding at the end the following:
    ``(b) Who May Administer.--The oath may be taken before the 
President, the Vice-President, the Secretary of Defense, any 
commissioned officer, or any other person designated under regulations 
prescribed by the Secretary of Defense.''.
    (b) Oaths Generally.--Section 1031 of such title is amended by 
striking ``Any commissioned officer of any component of an armed force, 
whether or not on active duty, may administer any oath'' and inserting 
``The President, the Vice-President, the Secretary of Defense, any 
commissioned officer, and any other person designated under regulations 
prescribed by the Secretary of Defense may administer any oath''.

SEC. 586. REPEAL OF REQUIREMENT FOR PERIODIC DEPARTMENT OF DEFENSE 
              INSPECTOR GENERAL ASSESSMENTS OF VOTING ASSISTANCE 
              COMPLIANCE AT MILITARY INSTALLATIONS.

    (a) Repeal of Duplicative Assessment Requirement.--Section 1566 of 
title 10, United States Code, is amended by striking subsection (d).
    (b) Repeal of Expired Provision.--Subsection (g)(2) of such section 
is amended by striking the last sentence.

SEC. 587. PHYSICAL EVALUATION BOARDS.

    (a) In General.--
            (1) Procedural requirements.--Chapter 61 of title 10, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 1222. Physical evaluation boards
    ``(a) Response to Applications and Appeals.--The Secretary of each 
military department shall ensure, in the case of any member of the 
armed forces appearing before a physical evaluation board under that 
Secretary's supervision, that documents announcing a decision of the 
board in the case convey the findings and conclusions of the board in 
an orderly and itemized fashion with specific attention to each issue 
presented by the member in regard to that member's case. The 
requirement under the preceding sentence applies to a case both during 
initial consideration and upon subsequent consideration due to appeal 
by the member or other circumstance.
    ``(b) Liaison Officer (PEBLO) Requirements and Training.--(1) The 
Secretary of Defense shall prescribe regulations establishing --
            ``(A) a requirement for the Secretary of each military 
        department to make available to members of the armed forces 
        appearing before physical evaluation boards operated by that 
        Secretary employees, designated as physical evaluation board 
        liaison officers, to provide advice, counsel, and general 
        information to such members on the operation of physical 
        evaluation boards operated by that Secretary; and
            ``(B) standards and guidelines concerning the training of 
        such physical evaluation board liaison officers.
    ``(2) The Secretary shall assess compliance by the Secretary of 
each military department with physical evaluation board liaison officer 
requirements and training standards and guidelines at least once every 
three years.
    ``(c) Standardized Staff Training and Operations.--(1) The 
Secretary of Defense shall prescribe regulations on standards and 
guidelines concerning the physical evaluation board operated by each of 
the Secretaries of the military departments with regard to--
            ``(A) assignment and training of staff;
            ``(B) operating procedures; and
            ``(C) consistency and timeliness of board decisions.
    ``(2) The Secretary shall assess compliance with standards and 
guidelines prescribed under paragraph (1) by each physical evaluation 
board at least once every three years.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``1222.  Physical evaluation boards.''.
    (b) Effective Date.--Section 1222 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to decisions 
rendered on cases commenced more than 120 days after the date of the 
enactment of this Act.

SEC. 588. DEPARTMENT OF LABOR TRANSITIONAL ASSISTANCE PROGRAM.

    (a) Required Participation for Certain Members.--Subsection (c) of 
section 1144 of title 10, United States Code, is amended to read as 
follows:
    ``(c) Participation.--(1) Except as provided in paragraph (2), the 
Secretary of Defense shall require participation by members of the 
armed forces eligible for assistance under the program carried out 
under this section.
    ``(2) The Secretary of Defense need not require, but shall 
encourage and otherwise promote, participation in the program by the 
following members described in paragraph (1):
            ``(A) A member who has previously participated in the 
        program.
            ``(B) A member who, upon discharge or release from active 
        duty, is returning to--
                    ``(i) a position of employment; or
                    ``(ii) pursuit of an academic degree or other 
                educational or occupational training objective that the 
                members was pursuing when called or ordered to such 
                active duty.
    ``(3) Members of the armed forces eligible for assistance under 
this section include--
            ``(A) members of the reserve components being separated 
        from service on active duty for a period of more than 30 days; 
        and
            ``(B) members of the National Guard being separated from 
        full-time National Guard duty.
    ``(4) The Secretary concerned shall ensure that commanders of 
members who are required to be provided assistance under this section 
authorize the members to be provided such assistance during duty 
time.''.
    (b) Required Updating of Materials.--Such section is further 
amended by adding at the end the following new subsection:
    ``(e) Updating of Materials.--The Secretary concerned shall, on a 
continuing basis, update the content of the materials used by the 
National Veterans Training Institute of the Department of Labor and the 
Secretary's other materials that provide direct training support to 
personnel who carry out the program established in this section.''.

SEC. 589. REVISION IN GOVERNMENT CONTRIBUTIONS TO MEDICARE-ELIGIBLE 
              RETIREE HEALTH CARE FUND.

    (a) Medicare Eligible Retiree Health Care Fund.--Section 1111 of 
title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``of the Department of 
        Defense'';
            (2) in subsection (b), by adding at the end of the 
        following new paragraph:
            ``(5) The term `members of the uniformed services on active 
        duty' does not include a cadet at the United States Military 
        Academy, the United States Air Force Academy, or the Coast 
        Guard Academy or a midshipman at the United States Naval 
        Academy.''; and
            (3) in the last sentence of subsection (c)--
                    (A) by striking ``Secretary of Defense'' and 
                inserting ``Secretary of the Treasury''; and
                    (B) by striking ``section 1116(a)'' and inserting 
                ``section 1116 of this title''.
    (b) Determination of Contributions to the Fund.--Section 1115 of 
such title is amended--
            (1) in the last sentence of subsection (a)--
                    (A) by inserting ``by the Secretary of the 
                Treasury'' after ``Contributions to the Fund''; and
                    (B) by striking ``section 1116(c)'' and inserting 
                ``section 1116(a)(1)''.
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking the first sentence and inserting the 
                following: ``The Secretary of the Treasury, based on 
                data provided by the Secretary of Defense, shall 
                determine, before the beginning of each fiscal year, 
                the amount that the Secretary of the Treasury shall 
                contribute to the Fund during that fiscal year under 
                section 1116(a)(2) of this title.'';
                    (B) in paragraph (1)(B), by inserting before the 
                period at the end the following: ``, but excluding any 
                member who would be excluded for active-duty end 
                strength purposes by section 115(I) of this title''; 
                and
                    (C) in paragraph (2)(B)--
                            (I) by striking ``Ready Reserve'' and 
                        inserting ``Selected Reserve''; and
                            (ii) by striking ``(other than members on 
                        full-time National Guard duty other than for 
                        training)''; and
            (3) in subsection (c)--
                    (A) in paragraph (1)(A), by inserting before the 
                semicolon the following: ``, but excluding any member 
                who would be excluded for active-duty end strength 
                purposes by section 115(I) of this title'';
                    (B) in paragraph (1)(B)--
                            (I) by striking ``Ready Reserve'' and 
                        inserting ``Selected Reserve''; and
                            (ii) by striking ``(other than members on 
                        full-time National Guard duty other than for 
                        training)''; and
                    (C) in paragraph (5), by inserting after ``(5)'' 
                the following new sentence: ``The Secretary of Defense, 
                before the beginning of each fiscal year, shall 
                promptly provide data to the Secretary of the Treasury 
                regarding the actuarial valuations conducted under this 
                subsection that would affect the contributions of the 
                Secretary of the Treasury to the Fund for that fiscal 
                year.''.
    (c) Payments Into the Fund.--Section 1116 of such title is 
amended--
            (1) in the matter in subsection (a) preceding paragraph 
        (1)--
                    (A) by striking ``after September 30, 2005''; and
                    (B) by striking ``Treasury--'' and inserting 
                ``Treasury the following:'';
            (2) by redesignating paragraph (2) of subsection (a) as 
        paragraph (3);
            (3) by striking paragraph (1) of subsection (a) and 
        inserting the following:
            ``(1) The amount determined to be required as the 
        contribution to the Fund under subsection (a) of section 1115 
        of this title.
            ``(2) The amount determined to be required as the 
        contribution to the Fund under subsection (b) of section 1115 
        of this title.'';
            (4) in paragraph (3) of subsection (a) (as redesignated by 
        paragraph (2)), by capitalizing the first letter of the first 
        word;
            (5) by transferring paragraphs (3), (4), and (5) of 
        subsection (b) to the end of subsection (a) and redesignating 
        those paragraphs as paragraphs (4), (5), and (6), respectively; 
        and
            (6) by striking subsection (b) (as amended by paragraph 
        (5)) and subsections (c) and (d) and inserting the following 
        new subsection (b):
    ``(b) No funds authorized or appropriated to the Department of 
Defense may be used to fund, or otherwise provide for, the payments 
required by this section.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect with respect to payments under chapter 56 of title 10, United 
States Code, beginning with fiscal year 2008.

SEC. 590. MILITARY CHAPLAINS.

    (a) United States Army.--Section 3547 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(c) Each chaplain shall have the prerogative to pray according to 
the dictates of the chaplain's own conscience, except as must be 
limited by military necessity, with any such limitation being imposed 
in the least restrictive manner feasible.''.
    (b) United States Military Academy.--Section 4337 of such title is 
amended--
            (1) by inserting ``(a)'' before ``There''; and
            (2) by adding at the end the following new subsection:
    ``(b) The Chaplain shall have the prerogative to pray according to 
the dictates of the Chaplain's conscience, except as must be limited by 
military necessity, with any such limitation being imposed in the least 
restrictive manner feasible.''.
    (c) United States Navy and Marine Corps.--Section 6031 of such 
title is amended by adding at the end the following new subsection:
    ``(d) Each chaplain shall have the prerogative to pray according to 
the dictates of the chaplain's own conscience, except as must be 
limited by military necessity, with any such limitation being imposed 
in the least restrictive manner feasible.''.
    (d) United States Air Force.--Section 8547 of such title is amended 
by adding at the end the following new subsection:
    ``(c) Each chaplain shall have the prerogative to pray according to 
the dictates of the chaplain's own conscience, except as must be 
limited by military necessity, with any such limitation being imposed 
in the least restrictive manner feasible.''.
    (e) United States Air Force Academy.--Section 9337 of such title is 
amended--
            (1) by inserting ``(a)'' before ``There''; and
            (2) by adding at the end the following new subsection:
    ``(b) The Chaplain shall have the prerogative to pray according to 
the dictates of the Chaplain's conscience, except as must be limited by 
military necessity, with any such limitation being imposed in the least 
restrictive manner feasible.''.

SEC. 591. REPORT ON PERSONNEL REQUIREMENTS FOR AIRBORNE ASSETS 
              IDENTIFIED AS LOW-DENSITY, HIGH-DEMAND AIRBORNE ASSETS.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, 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 personnel 
requirements for airborne assets identified as Low-Density, High-Demand 
Airborne Assets based on combatant commander requirements to conduct 
and sustain operations for the global war on terrorism.
    (b) Matter to Be Included.--The report shall include the following 
for each airborne asset identified as a Low-Density, High-Demand 
Airborne Asset:
            (1) The numbers of operations and maintenance crews to meet 
        tasking contemplated to conduct operations for the global war 
        on terrorism.
            (2) The current numbers of operations and maintenance 
        crews.
            (3) If applicable, shortages of operations and maintenance 
        crews.
            (4) Whether such shortages are addressed in the future-
        years defense program.
            (5) Whether end-strength increases are required to meet any 
        such shortages.
            (6) Costs of personnel needed to address shortfalls.
            (7) If applicable, the number and types of equipment needed 
        to address training shortfalls.

SEC. 592. ENTREPRENEURIAL SERVICE MEMBERS EMPOWERMENT TASK FORCE.

    (a) Establishment.--The Secretary of Defense, in coordination with 
the Administrator of the Small Business Administration, shall establish 
a task force to provide timely input to the Secretary and the 
Administrator with respect to--
            (1) measures that would improve the programs and activities 
        of the Department and the Administration that are designed to 
        address the economic concerns, as well as the business 
        challenges and opportunities, of entrepreneurial service 
        members; and
            (2) measures that would improve the coordination of the 
        programs and activities relating to entrepreneurial service 
        members conducted by--
                    (A) the National Committee for Employer Support of 
                the National Guard and Reserve;
                    (B) Veterans Business Outreach Centers;
                    (C) Federal procurement entities; and
                    (D) any other elements within, or affiliates of, 
                the Department of Defense or the Small Business 
                Administration.
    (b) Plan.--The task force shall develop within 90 days after its 
first meeting, and revise as appropriate thereafter, a plan for 
carrying out the duty under subsection (a).
    (c) Consultation.--In carrying out the duty under subsection (a), 
the task force shall consult with appropriate Federal, State, and local 
agencies and appropriate elements of the private sector, including 
academic institutions and industry representatives.
    (d) Composition.--
            (1) Co-chairs.--The task force shall have two co-chairs, 
        one an officer or employee of the Department of Defense 
        assigned by the Secretary, and one an officer or employee of 
        the Small Business Administration assigned by the 
        Administrator. The initial assignments shall be made within 60 
        days after the date of the enactment of this Act.
            (2) Other members.--The Secretary, in coordination with the 
        Administrator, shall appoint the remaining task force members, 
        numbering not less than 8 and not more than 15. The selections 
        shall be made within 120 days after the date of the enactment 
        of this Act. The Secretary, in coordination with the 
        Administrator, shall ensure that the task force includes 
        individuals from both public service and the private sector, 
        and that each of the following groups is represented on the 
        task force:
                    (A) Entrepreneurial service members who are owners 
                of small businesses.
                    (B) Small businesses that employ entrepreneurial 
                service members as essential employees.
                    (C) Associations that further the interests of 
                small businesses, members of the reserve components of 
                the Armed Forces, or both.
                    (D) Any other entities that the Secretary, in 
                coordination with the Administrator, considers 
                appropriate.
            (3) Compensation.--An individual serving as a member of the 
        task force shall not receive compensation by reason of that 
        service.
    (e) Meetings.--
            (1) Frequency.--The task force shall meet not less 
        frequently than twice per year. The initial meeting shall be 
        held within 150 days after the date of the enactment of this 
        Act.
            (2) Quorum.--A majority of the members of the task force 
        shall constitute a quorum.
    (f) Reports.--The task force shall provide to the Secretary and the 
Administrator not only the minutes of each meeting, but also a report 
of its findings and recommendations, should there be any, within 90 
days of each meeting. Not later than 60 days after the receipt of such 
a report--
            (1) the Secretary shall submit a copy of the report to the 
        Committee on Armed Services of the House of Representatives and 
        the Committee on Armed Services of the Senate; and
            (2) the Administrator shall submit a copy of the report to 
        the Committee on Small Business of the House of Representatives 
        and the Committee on Small Business and Entrepreneurship of the 
        Senate.
    (g) Detail of Certain Federal Employees.--The Secretary may detail 
an officer or employee of the Department of Defense, and the 
Administrator may detail an officer or employee of the Small Business 
Administration, to the task force without additional reimbursement and 
without interruption or loss of civil status or privilege.
    (h) Expenses.--The Department of Defense and the Small Business 
Administration shall share equally in the cost of supporting the task 
force.
    (i) Definition.--In this section, the term ``entrepreneurial 
service member'' means an individual who is both--
            (1) an actual or prospective owner of, or an essential 
        employee of, a small business; and
            (2) a member of a reserve component of the Armed Forces.
    (j) Termination.--The task force shall terminate September 30, 
2009.

SEC. 593. COMPTROLLER GENERAL REPORT ON MILITARY CONSCIENTIOUS 
              OBJECTORS.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall submit to Congress 
a report concerning the frequency and consequences of members of the 
Armed Forces claiming status as a military conscientious objector 
between January 1, 1989, and December 31, 2006.
    (b) Content of Report.--The report shall specifically address the 
following:
            (1) The number of all applications for status as a military 
        conscientious objector, even if the application was not acted 
        on or other discharge given, broken down by military branch, 
        including the Coast Guard, and regular and reserve components.
            (2) Number of discharges or reassignments given.
            (3) The process used to consider applications, including 
        average time frame and any reassignment to non-combatant duties 
        while claim pending.
            (4) Reasons for approval or disapproval of applications.
            (5) Any difference in benefits upon discharge as a military 
        conscientious objector compared to other discharges.
            (6) The effect of stop loss provisions in First Gulf War 
        and currently, cancellation of orders to combat or rear 
        attachment duty while claim pending.
            (7) Pre-war statistical comparisons.

SEC. 594. COMMISSION ON THE NATIONAL GUARD AND RESERVES.

    (a) Six-Month Extension of Commission.--Subsection (f)(2) of 
section 513 of the Ronald W. Reagan National Defense Authorization Act 
for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1882) is amended by 
striking ``one year'' and inserting ``18 months''.
    (b) Additional Matters to Be Reviewed by Commission.--The 
Commission on the National Guard and Reserves shall include among the 
matters it studies (in addition to the matters specified in subsection 
(c) of such section 513) the following:
            (1) Provisions of h.r. 5200, 109th congress.--The 
        advisability and feasibility of implementing the provisions of 
        H.R. 5200 of the 109th Congress, as introduced in the House of 
        Representatives on April 26, 2006.
            (2) Chief of national guard bureau.--As an alternative to 
        implementation of the provisions of the bill specified in 
        paragraph (1) that provide for the Chief of the National Guard 
        Bureau to be a member of the Joint Chiefs of Staff and to hold 
        the grade of general, the advisability and feasibility of 
        providing for the Chief of the National Guard Bureau to hold 
        the grade of general in the performance of the current duties 
        of that office.
            (3) National guard equipment and funding requirements.--The 
        adequacy of the Department of Defense processes for defining 
        the equipment and funding necessary for the National Guard to 
        conduct both its responsibilities under title 10, United States 
        Code, and its responsibilities under title 32, United States 
        Code, including homeland defense and related homeland missions, 
        including as part of such study--
                    (A) consideration of the extent to which those 
                processes should be developed taking into consideration 
                the views of the Chief of the National Guard Bureau, as 
                well as the views of the 54 Adjutant Generals and the 
                views of the Chiefs of the Army National Guard and the 
                Air Guard; and
                    (B) whether there should be an improved means by 
                which National Guard equipment requirements are 
                validated by the Joint Chiefs of Staff and are 
                considered for funding by the Secretaries of the Army 
                and Air Force.
    (c) Priority Review and Report.--
            (1) Priority review.--The Commission on the National Guard 
        and Reserves shall carry out its study of the matters specified 
        in paragraphs (1) and (2) of subsection (b) on a priority 
        basis, with a higher priority for matters under those 
        paragraphs relating to the grade and functions of the Chief of 
        the National Guard Bureau.
            (2) Report.--In addition to the reports required under 
        subsection (f) of section 513 of the Ronald W. Reagan National 
        Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
        375; 118 Stat. 1882), the Commission shall submit to the 
        Committee on Armed Services of the Senate and the Committee on 
        Armed Services of the House of Representatives an interim 
        report, not later than March 1, 2007, specifically on the 
        matters covered by paragraph (1). In such report, the 
        Commission shall set forth its findings and any recommendations 
        it considers appropriate with respect to those matters.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2007.
Sec. 602. Targeted increase in basic pay rates.
Sec. 603. Conforming change in general and flag officer pay cap to 
                            reflect increase in pay cap for Senior 
                            Executive Service personnel.
Sec. 604. Availability of second basic allowance for housing for 
                            certain reserve component or retired 
                            members serving in support of contingency 
                            operations.
Sec. 605. Extension of temporary continuation of housing allowance for 
                            dependents of members dying on active duty 
                            to spouses who are also members.
Sec. 606. Clarification of effective date of prohibition on 
                            compensation for correspondence courses.
Sec. 607. Payment of full premium for coverage under Servicemembers' 
                            Group Life Insurance program during service 
                            in Operation Enduring Freedom or Operation 
                            Iraqi Freedom.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
                            reserve forces.
Sec. 612. Extension of bonus and special pay authorities for health 
                            care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
                            officers.
Sec. 614. Extension of other bonus, special pay, and separation pay 
                            authorities.
Sec. 615. Expansion of eligibility of dental officers for additional 
                            special pay.
Sec. 616. Increase in maximum annual rate of special pay for Selected 
                            Reserve health care professionals in 
                            critically short wartime specialties.
Sec. 617. Authority to provide lump sum payment of nuclear officer 
                            incentive pay.
Sec. 618. Increase in maximum amount of nuclear career accession bonus.
Sec. 619. Increase in maximum amount of incentive bonus for transfer 
                            between armed forces.
Sec. 620. Clarification regarding members of the Army eligible for 
                            bonus for referring other persons for 
                            enlistment in the Army.
Sec. 621. Pilot program for recruitment bonus for critical health care 
                            specialties.
Sec. 622. Enhancement of temporary program of voluntary separation pay 
                            and benefits.
Sec. 623. Additional authorities and incentives to encourage retired 
                            members and reserve component members to 
                            volunteer to serve on active duty in high-
                            demand, low-density assignments.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Authority to pay costs associated with delivery of motor 
                            vehicle to storage location selected by 
                            member and subsequent removal of vehicle.
Sec. 632. Transportation of additional motor vehicle of members on 
                            change of permanent station to or from 
                            nonforeign areas outside the continental 
                            United States.
Sec. 633. Travel and transportation allowances for transportation of 
                            family members incident to illness or 
                            injury of members.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Military Survivor Benefit Plan beneficiaries under insurable 
                            interest coverage.
Sec. 642. Retroactive payment of additional death gratuity for certain 
                            members not previously covered.
Sec. 643. Equity in computation of disability retired pay for reserve 
                            component members wounded in action.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Treatment of price surcharges of tobacco products and certain 
                            other merchandise sold at commissary 
                            stores.
Sec. 652. Limitation on use of Department of Defense lease authority to 
                            undermine commissaries and exchanges and 
                            other morale, welfare, and recreation 
                            programs and nonappropriated fund 
                            instrumentalities.
Sec. 653. Use of nonappropriated funds to supplement or replace 
                            appropriated funds for construction of 
                            facilities of exchange stores system and 
                            other nonappropriated fund 
                            instrumentalities, military lodging 
                            facilities, and community facilities.
Sec. 654. Report on cost effectiveness of purchasing commercial 
                            insurance for commissary and exchange 
                            facilities and facilities of other morale, 
                            welfare, and recreation programs and 
                            nonappropriated fund instrumentalities.

                       Subtitle F--Other Matters

Sec. 661. Repeal of annual reporting requirement regarding effects of 
                            recruitment and retention initiatives.
Sec. 662. Pilot project regarding providing golf carts accessible for 
                            disabled persons at military golf courses.
Sec. 663. Enhanced authority to remit or cancel indebtedness of members 
                            of the Armed Forces incurred on active 
                            duty.

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2007.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2007 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, 2007, the rates 
of monthly basic pay for members of the uniformed services are 
increased by 2.7 percent.

SEC. 602. TARGETED INCREASE IN BASIC PAY RATES.

    Effective on April 1, 2007, the rates of monthly basic pay for 
members of the uniformed services within each pay grade are as follows:


                                             COMMISSIONED OFFICERS1
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-102                                              $0.00         $0.00         $0.00         $0.00         $0.00
O-9                                                 0.00          0.00          0.00          0.00          0.00
O-8                                             8,494.20      8,772.60      8,957.10      9,008.70      9,239.10
O-7                                             7,058.40      7,386.00      7,538.10      7,658.40      7,876.80
O-6                                             5,231.40      5,747.40      6,124.50      6,124.50      6,147.60
O-5                                             4,361.10      4,912.80      5,253.00      5,316.90      5,529.00
O-4                                             3,762.90      4,356.00      4,646.40      4,711.50      4,981.20
O-33                                            3,308.40      3,750.60      4,048.20      4,413.60      4,624.50
O-23                                            2,858.10      3,255.60      3,749.70      3,876.30      3,956.10
O-13                                            2,481.30      2,582.40      3,121.80      3,121.80      3,121.80
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
O-102                                              $0.00         $0.00         $0.00         $0.00         $0.00
O-9                                                 0.00          0.00          0.00          0.00          0.00
O-8                                             9,624.00      9,713.40     10,079.10     10,183.80     10,498.80
O-7                                             8,092.20      8,341.80      8,590.80      8,840.40      9,624.00
O-6                                             6,411.30      6,446.10      6,446.10      6,812.40      7,460.10
O-5                                             5,656.20      5,935.20      6,140.10      6,404.40      6,809.70
O-4                                             5,270.40      5,630.10      5,911.20      6,105.90      6,217.80
O-33                                            4,856.70      5,007.00      5,253.90      5,382.30      5,382.30
O-23                                            3,956.10      3,956.10      3,956.10      3,956.10      3,956.10
O-13                                            3,121.80      3,121.80      3,121.80      3,121.80      3,121.80
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
O-102                                              $0.00    $13,725.90    $13,793.10    $14,079.90    $14,579.70
O-9                                                 0.00     12,005.10     12,177.60     12,427.80     12,863.70
O-8                                            10,954.20     11,374.50     11,655.00     11,655.00     11,655.00
O-7                                            10,286.10     10,286.10     10,286.10     10,286.10     10,338.30
O-6                                             7,840.20      8,220.00      8,436.30      8,655.00      9,080.10
O-5                                             7,002.30      7,192.80      7,409.10      7,409.10      7,409.10
O-4                                             6,282.90      6,282.90      6,282.90      6,282.90      6,282.90
O-33                                            5,382.30      5,382.30      5,382.30      5,382.30      5,382.30
O-23                                            3,956.10      3,956.10      3,956.10      3,956.10      3,956.10
O-13                                            3,121.80      3,121.80      3,121.80      3,121.80      3,121.80
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
  oficers in pay grades 0-7 through 0-10 may not exceed the rate of pay for level II 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, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as
  defined in section 161(c) of title 10, United States Code, basic pay for this grade is $16,037.40, 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 Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-3E                                               $0.00         $0.00         $0.00     $4,413.60     $4,624.50
O-2E                                                0.00          0.00          0.00      3,876.30      3,956.10
O-1E                                                0.00          0.00          0.00      3,121.80      3,333.90
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
0-3E                                           $4,856.70     $5,007.00     $5,253.90     $5,462.10     $5,581.20
0-2E                                            4,082.10      4,294.20     4,458.90.      4,581.00      4,581.00
0-1E                                            3,456.90      3,582.90      3,706.80      3,876.30      3,876.30
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
0-3E                                           $5,743.80     $5,743.80     $5,743.80     $5,743.80     $5,743.80
0-2E                                            4,581.00      4,581.00      4,581.00      4,581.00      4,581.00
0-1E                                            3,876.30      3,876.30      3,876.30      3,876.30      3,876.30
----------------------------------------------------------------------------------------------------------------



                                                WARRANT OFFICERS1
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             3,418.80      3,677.70      3,783.60      3,887.40      4,066.20
W-3                                             3,122.10      3,252.30      3,385.50      3,429.60      3,569.40
W-2                                             2,762.70       3023.40      3,104.40      3,159.90      3,338.70
W-1                                             2,425.20      2,685.00      2,756.40      2,904.30      3,080.10
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             4,242.90      4,422.30      4,691.40      4,927.80       5152.80
W-3                                             3,843.90      4,130.10      4,265.40      4,421.40      4,582.20
W-2                                             3,616.80      3,754.80      3,890.70      4,056.60      4,186.20
W-1                                             3,337.80      3,458.40      3,627.00      3,792.90      3,922.80
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
W-5                                                $0.00     $6,078.30     $6,386.10     $6,615.60     $6,869.70
W-4                                             5,336.40      5,516.10      5,779.50      5,995.80      6,242.70
W-3                                             4,870.50      5,065.80      5,181.90      5,306.40      5,475.30
W-2                                             4,303.80      4,444.20      4,536.90      4,611.30      4,611.30
W-1                                             4,042.80      4,188.90      4,188.90      4,188.90      4,188.90
----------------------------------------------------------------------------------------------------------------
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 MEMBERS1
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
E-92                                               $0.00         $0.00         $0.00         $0.00         $0.00
E-8                                                 0.00          0.00          0.00          0.00          0.00
E-7                                             2,350.50      2,565.60      2,663.70      2,794.20      2,895.60
E-6                                             2,033.10      2,236.80      2,335.80      2,431.50      2,531.70
E-5                                             1,863.00      1,987.50      2,083.50      2,181.90      2,335.20
E-4                                             1,707.90      1,795.20      1,892.40      1,988.10      2,073.00
E-3                                             1,541.70      1,638.90      1,737.60      1,737.60      1,737.60
E-2                                             1,465.80      1,465.80      1,465.80      1,465.80      1,465.80
E-13                                            1,308.00      1,308.00      1,308.00      1,308.00      1,308.00
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
E-92                                               $0.00     $4,130.70     $4,224.30     $4,342.50     $4,481.40
E-8                                             3,381.30      3,531.00      3,623.70      3,734.40      3,854.70
E-7                                             3,070.20      3,168.30      3,326.70      3,471.00      3,569.70
E-6                                             2,757.60      2,845.20      3,000.00      3,051.90      3,089.70
E-5                                             2,483.70      2,613.90      2,630.10      2,630.10      2,630.10
E-4                                             2,073.00      2,073.00      2,073.00      2,073.00      2,073.00
E-3                                             1,737.60      1,737.60      1,737.60      1,737.60      1,737.60
E-2                                             1,465.80      1,465.80      1,465.80      1,465.80      1,465.80
E-13                                            1,308.00      1,308.00      1,308.00      1,308.00      1,308.00
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
E-92                                           $4,620.90     $4,845.30     $5,034.60     $5,234.70     $5,539.50
E-8                                             4,071.60      4,181.40      4,368.60      4,472.40      4,727.70
E-7                                             3,674.40      3,715.50      3,852.00      3,944.40      4,224.60
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,073.00      2,073.00      2,073.00      2,073.00      2,073.00
E-3                                             1,737.60      1,737.60      1,737.60      1,737.60      1,737.60
E-2                                             1,465.80      1,465.80      1,465.80      1,465.80      1,465.80
E-13                                            1,308.00      1,308.00      1,308.00      1,308.00      1,308.00
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the pay rates specified in this table, the actual 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, the rate of basic pay for an enlisted member in this grade 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, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor
  to the Chairman of the Joint Chiefs of Statff is $6,675.00, 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 $1,209.90.

SEC. 603. CONFORMING CHANGE IN GENERAL AND FLAG OFFICER PAY CAP TO 
              REFLECT INCREASE IN PAY CAP FOR SENIOR EXECUTIVE SERVICE 
              PERSONNEL.

    (a) Increase.--Section 203(a)(2) of title 37, United States Code, 
is amended by striking ``level III of the Executive Schedule'' and 
inserting ``level II of the Executive Schedule''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2006.

SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE FOR HOUSING FOR 
              CERTAIN RESERVE COMPONENT OR RETIRED MEMBERS SERVING IN 
              SUPPORT OF CONTINGENCY OPERATIONS.

    Section 403(g) of title 37, United States Code, is amended--
            (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively;
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The Secretary concerned may provide a basic allowance for 
housing to a member described in paragraph (1) at a monthly rate equal 
to the rate of the basic allowance for housing established under 
subsection (b) or the overseas basic allowance for housing established 
under subsection (c), whichever applies to the location at which the 
member is serving, for members in the same grade at that location 
without dependents. The member may receive both a basic allowance for 
housing under paragraph (1) and under this paragraph for the same 
month, but may not receive the portion of the allowance authorized 
under section 404 of this title, if any, for lodging expenses if a 
basic allowance for housing is provided under this paragraph.''; and
            (3) in paragraph (3), as so redesignated, by striking 
        ``Paragraph (1)'' and inserting ``Paragraphs (1) and (2)''.

SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING ALLOWANCE FOR 
              DEPENDENTS OF MEMBERS DYING ON ACTIVE DUTY TO SPOUSES WHO 
              ARE ALSO MEMBERS.

    (a) Extension.--Section 403(l) of title 37, United States Code, is 
amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
    ``(3) An allowance may be paid under paragraph (2) to the spouse of 
the deceased member even though the spouse is also a member of the 
uniformed services. The allowance paid under such paragraph is in 
addition to any other pay and allowances to which the spouse is 
entitled as a member.''.
    (b) Effective Date.--
            (1) General rule.--The amendments made by subsection (a) 
        shall take effect on October 1, 2006.
            (2) Transitional rule.--After October 1, 2006, the 
        Secretary of Defense, and the Secretary of Homeland Security in 
        the case of the Coast Guard, may pay the allowance authorized 
        by section 403(l)(2) of title 37, United States Code, to a 
        member of the uniformed services who is the spouse of a member 
        who died on active duty during the one-year period ending on 
        that date, except that the payment of the allowance must 
        terminate within 365 days after the date of the member's death.

SEC. 606. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON 
              COMPENSATION FOR CORRESPONDENCE COURSES.

    Section 206(d) of title 37, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) The prohibition in paragraph (1), including the prohibition 
as it relates to a member of the National Guard while not in Federal 
service, applies to--
            ``(A) any work or study performed on or after September 7, 
        1962, unless that work or study is specifically covered by the 
        exception in paragraph (2); and
            ``(B) any claim based on that work or study arising after 
        that date.''.

SEC. 607. PAYMENT OF FULL PREMIUM FOR COVERAGE UNDER SERVICEMEMBERS' 
              GROUP LIFE INSURANCE PROGRAM DURING SERVICE IN OPERATION 
              ENDURING FREEDOM OR OPERATION IRAQI FREEDOM.

    (a) Enhanced Allowance to Cover SGLI Deductions.--Subsection (a)(1) 
of section 437 of title 37, United States Code, is amended by striking 
``for the first $150,000'' and all that follows through ``of such 
title'' and inserting ``for the amount of Servicemembers' Group Life 
Insurance coverage held by the member under section 1967 of such 
title''.
    (b) Conforming Amendments.--Such section is further amended--
            (1) in subsection (a)--
                    (A) by striking ``(1)'' before ``in the case of''; 
                and
                    (B) by striking paragraph (2);
            (2) by striking subsection (b); and
            (3) by redesignating subsection (c) as subsection (b) and 
        in paragraph (2) of that subsection by striking ``coverage 
        amount specified in subsection (a)(1) or in effect pursuant to 
        subsection (b),'' and inserting ``maximum coverage amount 
        available for such insurance,''.
    (c) Clerical Amendments.--The heading for such section, and the 
item relating to such section in the table of sections at the beginning 
of chapter 7 of such title, are each amended by striking the fourth and 
fifth words.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first month beginning on or after the 
date of the enactment of this Act and shall apply with respect to 
service by members of the Armed Forces in the theater of operations for 
Operation Enduring Freedom or Operation Iraqi Freedom for months 
beginning on or after that date.
    (e) Funding Source.--Of the amounts authorized to be appropriated 
to the Department of Defense for military personnel accounts as 
emergency supplemental appropriations for fiscal years 2006 and 2007 to 
provide funds for additional costs due to Operation Iraqi Freedom and 
Operation Enduring Freedom, $31,000,000 shall be available to cover the 
additional costs incurred to implement the amendments made by this 
section.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR 
              RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) of title 
37, United States Code, is amended by striking ``December 31, 2006'' 
and inserting ``December 31, 2007''.
    (b) Selected Reserve Affiliation or Enlistment Bonus.--Section 
308c(i) of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (c) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2007''.
    (d) Ready Reserve Enlistment Bonus for Persons Without Prior 
Service.--Section 308g(h)(2) of such title is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2007''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus for Persons 
With Prior Service.--Section 308h(e) of such title is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 2007''.
    (f) Selected Reserve Enlistment Bonus for Persons With Prior 
Service.--Section 308i(f) of such title is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2007''.

SEC. 612. EXTENSION OF BONUS AND SPECIAL PAY AUTHORITIES FOR HEALTH 
              CARE PROFESSIONALS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``January 1, 2007'' and inserting ``January 1, 
2008''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2006'' 
and inserting ``December 31, 2007''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section 302g(e) of such title is 
amended by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such 
title is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.

SEC. 613. 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 title 37, United States Code, is 
amended by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2006'' and inserting ``December 
31, 2007''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.

SEC. 614. EXTENSION OF OTHER BONUS, SPECIAL PAY, AND SEPARATION PAY 
              AUTHORITIES.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (b) Assignment Incentive Pay.--Section 307a(g) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (c) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (d) Enlistment Bonus for Active Members.--Section 309(e) of such 
title is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (e) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (f) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (g) Military Occupational Specialty Conversion Incentive Bonus.--
Section 326(g) of such title is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (h) Transfer Between Armed Forces Incentive Bonus.--Section 327(h) 
of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.

SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFICERS FOR ADDITIONAL 
              SPECIAL PAY.

    (a) Repeal of Internship and Residency Exception.--Section 
302b(a)(4) of title 37, United States Code, is amended by striking the 
first sentence and inserting the following new sentence: ``An officer 
who is entitled to variable special pay under paragraph (2) or (3) is 
also entitled to additional special pay for any 12-month period during 
which an agreement executed under subsection (b) is in effect with 
respect to the officer.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2006.

SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPECIAL PAY FOR SELECTED 
              RESERVE HEALTH CARE PROFESSIONALS IN CRITICALLY SHORT 
              WARTIME SPECIALTIES.

    (a) Increase.--Section 302g(a) of title 37, United States Code, is 
amended by striking ``$10,000'' and inserting ``$25,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2006.

SEC. 617. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF NUCLEAR OFFICER 
              INCENTIVE PAY.

    (a) Lump Sum Payment Option.--Subsection (a) of section 312 of 
title 37, United States Code, is amended in the matter after paragraph 
(3)--
            (1) by striking ``in equal annual installments'' and 
        inserting ``in a single lump-sum or in annual installments of 
        equal or different amounts''; and
            (2) by striking ``with the number of installments being 
        equal to the number of years covered by the contract plus one'' 
        and inserting ``and, if the special pay will be paid in annual 
        installments, the number of installments may not exceed the 
        number of years covered by the agreement plus one''.
    (b) Clerical and Conforming Amendments.--Such section is further 
amended--
            (1) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively;
            (2) in subsection (a)--
                    (A) by striking ``an officer'' in the matter before 
                paragraph (1) and inserting ``the Secretary may pay 
                special pay under subsection (b) to an officer'';
                    (B) by striking the semicolon at the end of 
                paragraph (3) and inserting a period;
                    (C) by striking ``may, upon'' and all that follows 
                through ``The Secretary of the Navy shall'' and 
                inserting the following:
    ``(b) Payment Amount; Payment Options.--(1) The total amount paid 
to an officer under an agreement under subsection (a) or (e)(1) may not 
exceed $30,000 for each year of the active-service agreement. Amounts 
paid under the agreement are in addition to all other compensation to 
which the officer is entitled.
    ``(2) The Secretary shall'';
                    (D) by striking ``Upon acceptance of the agreement 
                by the Secretary or his designee'' and inserting the 
                following:
    ``(3) Upon acceptance of an agreement under subsection (a) or 
(e)(1) by the Secretary '';
                    (E) by striking ``The Secretary (or his designee)'' 
                and inserting the following:
    ``(4) The Secretary'';
            (3) in subsection (c), as redesignated by paragraph (1), by 
        striking ``subsection (a) or subsection (d)(1)'' and inserting 
        ``subsection (b) or (e)(1)''; and
            (4) in the first sentence of subsection (e)(1), as 
        redesignated by paragraph (1)--
                    (A) by striking ``such subsection'' and inserting 
                ``subsection (b)''; and
                    (B) by striking ``that subsection'' and inserting 
                ``this subsection''.
    (c) Stylistic Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Special Pay 
        Authorized; Eligibility.--'' after ``(a)'';
            (2) in subsection (c), as redesignated by subsection 
        (b)(1), by inserting ``Repayment.--'' after ``(c)'';
            (3) in subsection (d), as redesignated by subsection 
        (b)(1), by inserting ``Relation to Service Obligation.--'' 
        after ``(d)'';
            (4) in subsection (e), as redesignated by subsection 
        (b)(1), by inserting ``New Agreement.--'' after ``(e)''; and
            (5) in subsection (f), as redesignated by subsection 
        (b)(1), by inserting ``Duration of Authority.--'' after 
        ``(f)''.

SEC. 618. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CAREER ACCESSION BONUS.

    (a) Increase.--Section 312b(a)(1) of title 37, United States Code, 
is amended by striking ``$20,000'' and inserting ``$30,000''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2006.

SEC. 619. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE BONUS FOR TRANSFER 
              BETWEEN ARMED FORCES.

    (a) Increase.--Section 327(d)(1) of title 37, United States Code, 
is amended by striking ``$2,500'' and inserting ``$10,000''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2006.

SEC. 620. CLARIFICATION REGARDING MEMBERS OF THE ARMY ELIGIBLE FOR 
              BONUS FOR REFERRING OTHER PERSONS FOR ENLISTMENT IN THE 
              ARMY.

    Section 645(a) of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3310) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary'';
            (2) by striking ``, whether in the regular component of the 
        Army or in the Army National Guard or Army Reserve,'' and 
        inserting ``described in paragraph (2)''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Members eligible for bonus.--Subject to subsection 
        (c), the following members of the Army are eligible for a 
        referral bonus under this section:
                    ``(A) A member in the regular component of the 
                Army.
                    ``(B) A member of the Army National Guard.
                    ``(C) A member of the Army Reserve.
                    ``(D) A member of the Army in a retired status, 
                including a member under 60 years of age who, but for 
                age, would be eligible for retired pay.''.

SEC. 621. PILOT PROGRAM FOR RECRUITMENT BONUS FOR CRITICAL HEALTH CARE 
              SPECIALTIES.

    (a) Pilot Program.--Section 2121 of title 10, United States Code, 
is amended by adding at the end the following new subsection:
    ``(e)(1) The Secretary of Defense may carry out a pilot program for 
payment of a recruitment incentive bonus to increase participation in 
the program. The Secretary shall prescribe regulations specifying the 
amount and terms of the bonus. The bonus shall be used to improve 
recruitment for critical health care specialties. A bonus under the 
pilot program shall be in addition to the stipend under subsection (d).
    ``(2) The amount prescribed under paragraph (1) for the bonus under 
the pilot program shall be determined by the Secretary.
    ``(3) The scope of the pilot program shall be limited to no more 
than 100 total participants in no more than five critical medical 
specialties. The program shall last no more than two years, beginning 
on the earlier of the date the first participant is selected or January 
1, 2010. ''.
    (b) Reports.--The Secretary of Defense shall prepare a mid-term 
report and a final report on the findings and recommendations resulting 
from the pilot program. The Secretary shall submit those reports to the 
Committees on Armed Services of the Senate and the House of 
Representatives.

SEC. 622. ENHANCEMENT OF TEMPORARY PROGRAM OF VOLUNTARY SEPARATION PAY 
              AND BENEFITS.

    (a) One-Year Extension of Authority.--Section 1175a(k)(1) of title 
10, United States Code, is amended by striking ``December 31, 2008,'' 
and inserting ``December 31, 2009''.
    (b) Expansion of Eligible Members.--Section 643 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3306) is amended by striking subsection (b).

SEC. 623. ADDITIONAL AUTHORITIES AND INCENTIVES TO ENCOURAGE RETIRED 
              MEMBERS AND RESERVE COMPONENT MEMBERS TO VOLUNTEER TO 
              SERVE ON ACTIVE DUTY IN HIGH-DEMAND, LOW-DENSITY 
              ASSIGNMENTS.

    (a) Authority to Offer Incentive Bonus.--Chapter 5 of title 37, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 329. Incentive bonus: retired members and reserve component 
              members volunteering for high-demand, low-density 
              assignments
    ``(a) Incentive Bonus Authorized.--The Secretary of Defense may pay 
a bonus under this section to a retired member or former member of the 
Army, Navy, Air Force, or Marine Corps or to a member of a reserve 
component of the Army, Navy, Air Force, or Marine Corps (who is not 
otherwise serving on active duty) who executes a written agreement to 
serve on active duty for a period specified in the agreement in an 
assignment intended to alleviate a high-demand, low-density military 
capability or in any other specialty designated by the Secretary as 
critical to meet wartime or peacetime requirements.
    ``(b) Maximum Amount of Bonus.--A bonus under subsection (a) and 
any incentive developed under subsection (d) may not exceed $50,000.
    ``(c) Methods of Payment.--At the election of the Secretary, a 
bonus under subsection (a) and any incentive developed under subsection 
(d) shall be paid or provided--
            ``(1) when the member commences service on active duty; or
            ``(2) in annual installments in such amounts as may be 
        determined by the Secretary.
    ``(d) Development of Additional Incentives.--(1) The Secretary may 
develop and provide to members referred to in subsection (a) additional 
incentives to encourage such members to return to active duty in 
assignments intended to alleviate a high-demand, low-density military 
capability or in others specialties designated by the Secretary as 
critical to meet wartime or peacetime requirements.
    ``(2) The provision of any incentive developed under this 
subsection shall be subject to an agreement, as required for bonuses 
under subsection (a).
    ``(3) Not later than 30 days before first offering any incentive 
developed under this subsection, the Secretary shall submit to the 
congressional defense committees a report that contains a description 
of that incentive and an explanation why a bonus under subsection (a) 
or other pay and allowances are not sufficient to alleviate the high-
demand, low-density military capability or otherwise fill critical 
military specialties.
    ``(e) Relationship to Other Pay and Allowances.--A bonus or other 
incentive paid or provided to a member under this section is in 
addition to any other pay and allowances to which the member is 
entitled.
    ``(f) Repayment.--A member who does not complete the period of 
active duty specified in the agreement executed under subsection (a) or 
(d) shall be subject to the repayment provisions of section 303a(e) of 
this title.
    ``(g) High-Demand, Low-Density Assignment Defined.--In this 
section, the term `high-demand, low-density military capability' means 
a combat, combat support or service support capability, unit, system, 
or occupational specialty that the Secretary determines has funding, 
equipment, or personnel levels that are substantially below the levels 
required to fully meet or sustain actual or expected operational 
requirements set by regional commanders.
    ``(h) Regulations.--The Secretary of Defense may prescribe such 
regulations as the Secretary considers necessary to carry out this 
section.
    ``(i) Termination of Authority.--No agreement under subsection (a) 
or (d) may be entered into after December 31, 2010.''.
    (b) Temporary Authority to Order Retired Members to Active Duty in 
High-Demand, Low-Density Assignments.--Section 688a of title 10, United 
States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking the first sentence and inserting 
                the following new sentence: ``The Secretary of a 
                military department may order to active duty a retired 
                member who agrees to serve on active duty in an 
                assignment intended to alleviate a high-demand, low-
                density military capability or in any other specialty 
                designated by the Secretary as critical to meet wartime 
                or peacetime requirements.''; and
                    (B) in the second sentence, by striking ``officer'' 
                both places it appears and inserting ``member'';
            (2) in subsection (b), by striking ``an officer'' and 
        inserting ``a member'';
            (3) in subsection (c), by striking ``500 officers'' and 
        inserting ``1,000 members'';
            (4) in subsection (d), by striking ``officer'' and 
        inserting ``member'';
            (5) in subsection (e), by striking ``Officers'' and 
        inserting ``Retired members'';
            (6) in subsection (f)--
                    (A) by striking ``An officer'' and inserting ``A 
                retired member''; and
                    (B) by striking ``September 30, 2008'' and 
                inserting ``December 31, 2010''; and
            (7) by adding at the end the following new subsection:
    ``(g) High-Demand, Low-Density Assignment Defined.--In this 
section, the term `high-demand, low-density military capability' means 
a combat, combat support or service support capability, unit, system, 
or occupational specialty that the Secretary of Defense determines has 
funding, equipment, or personnel levels that are substantially below 
the levels required to fully meet or sustain actual or expected 
operational requirements set by regional commanders.''.
    (c) Clerical Amendments.--
            (1) Title 37.--The table of sections at the beginning of 
        chapter 5 of title 37, United States Code, is amended by adding 
        at the end the following new item:

``329. Incentive bonus: retired members and reserve component members 
                            volunteering for high-demand, low-density 
                            assignments.''.
            (2) Title 10.--(A) The heading of section 688a of title 10, 
        United States Code, is amended to read as follows:
``Sec. 688a. Retired members: temporary authority to order to active 
              duty in high-demand, low-density assignments''.
            (B) The table of sections at the beginning of chapter 39 of 
        such title is amended by striking the item relating to section 
        688a and inserting the following new item:

``688a. Retired members: temporary authority to order to active duty in 
                            high-demand, low-density assignments.''.
    (d) Effective Date.--No agreement may be entered into under section 
329 of title 37, United States Code, as added by subsection (a), before 
October 1, 2006.
    (e) Limitation on Fiscal Year 2007 Obligations.--During fiscal year 
2007, obligations incurred under section 329 of title 37, United States 
Code, as added by subsection (a), to provide bonuses or other 
incentives to retired members and former members of the Army, Navy, Air 
Force, or Marine Corps or to members of the reserve components of the 
Army, Navy, Air Force, and Marine Corps may not exceed $5,000,000.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. AUTHORITY TO PAY COSTS ASSOCIATED WITH DELIVERY OF MOTOR 
              VEHICLE TO STORAGE LOCATION SELECTED BY MEMBER AND 
              SUBSEQUENT REMOVAL OF VEHICLE.

    Subsection (b) of section 2634 of title 10, United States Code, is 
amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
    ``(4) If a member elects to have a motor vehicle described in 
subsection (a) stored at a location other than a storage location 
approved by the Secretary concerned, the delivery and removal costs 
described in paragraph (3) are the only costs that may be paid by the 
Secretary. The delivery or removal costs paid by the Secretary under 
this paragraph may not exceed the total cost that would have been 
incurred by the United States had the storage location approved by the 
Secretary been used to store the motor vehicle. The United States is 
not responsible for any costs associated with the actual storage of the 
motor vehicle at the unapproved location.''.

SEC. 632. TRANSPORTATION OF ADDITIONAL MOTOR VEHICLE OF MEMBERS ON 
              CHANGE OF PERMANENT STATION TO OR FROM NONFOREIGN AREAS 
              OUTSIDE THE CONTINENTAL UNITED STATES.

    (a) Authority to Transport Additional Motor Vehicle.--Subsection 
(a) of section 2634 of title 10, United States Code, is amended--
            (1) by striking the sentence following paragraph (4);
            (2) by redesignating paragraphs (1), (2), (3), and (4) as 
        subparagraphs (A), (B), (C), and (D), respectively;
            (3) by inserting ``(1)'' after ``(a)''; and
            (4) by adding at the end the following new paragraph:
    ``(2) One additional motor vehicle of a member (or a dependent of 
the member) may be transported as provided in paragraph (1) if--
            ``(A) the member is ordered to make a change of permanent 
        station to or from a nonforeign area outside the continental 
        United States and the member has at least one dependent of 
        driving age who will use the motor vehicle; or
            ``(B) the Secretary concerned determines that a replacement 
        for the motor vehicle transported under paragraph (1) is 
        necessary for reasons beyond the control of the member and is 
        in the interest of the United States and the Secretary approves 
        the transportation in advance.''.
    (b) Technical and Conforming Amendments.--Such subsection is 
further amended--
            (1) by striking ``his dependents'' and inserting ``a 
        dependent of the member'';
            (2) by striking ``him'' and inserting ``the member'';
            (3) by striking ``his)'' and inserting ``the member)'';
            (4) by striking ``his new'' and inserting ``the member's 
        new''; and
            (5) in paragraph (1)(C), as redesignated by subsection (a), 
        by striking ``clauses (1) and (2)'' and inserting 
        ``subparagraphs (A) and (B)''.
    (c) Effective Date.--Paragraph (2)(A) of subsection (a) of section 
2634 of title 10, United States Code, as added by subsection (a)(4), 
shall apply with respect to orders issued on or after the date of the 
enactment of this Act for members of the Armed Forces to make a change 
of permanent station to or from nonforeign areas outside the 
continental United States.

SEC. 633. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRANSPORTATION OF 
              FAMILY MEMBERS INCIDENT TO ILLNESS OR INJURY OF MEMBERS.

    Section 411h(b)(1) of title 37, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(E) a person related to the member as described in 
        subparagraph (A), (B), (C), or (D) who is also a member of the 
        uniformed services.''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. MILITARY SURVIVOR BENEFIT PLAN BENEFICIARIES UNDER INSURABLE 
              INTEREST COVERAGE.

    (a) Authority to Elect New Beneficiary.--Section 1448(b)(1) of 
title 10, United States Code, is amended--
            (1) by inserting ``or under subparagraph (G) of this 
        paragraph'' in the second sentence of subparagraph (E) before 
        the period at the end; and
            (2) by adding at the end the following new subparagraph:
                    ``(G) Election of new beneficiary upon death of 
                previous beneficiary.--
                            ``(i) Authority for election.--If the 
                        reason for discontinuation in the Plan is the 
                        death of the beneficiary, the participant in 
                        the Plan may elect a new beneficiary. Any such 
                        beneficiary must be a natural person with an 
                        insurable interest in the participant. Such an 
                        election may be made only during the 180-day 
                        period beginning on the date of the death of 
                        the previous beneficiary.
                            ``(ii) Procedures.--Such an election shall 
                        be in writing, signed by the participant, and 
                        made in such form and manner as the Secretary 
                        concerned may prescribe. Such an election shall 
                        be effective the first day of the first month 
                        following the month in which the election is 
                        received by the Secretary.
                            ``(iii) Vitiation of election by 
                        participant who dies within two years of 
                        election.--If a person providing an annuity 
                        under a election under clause (i) dies before 
                        the end of the two-year period beginning on the 
                        effective date of the election--
                                    ``(I) the election is vitiated; and
                                    ``(II) the amount by which the 
                                person's retired pay was reduced under 
                                section 1452 of this title that is 
                                attributable to the election shall be 
                                paid in a lump sum to the person who 
                                would have been the deceased person's 
                                beneficiary under the vitiated election 
                                if the deceased person had died after 
                                the end of such two-year period.''.
    (b) Change in Premium for Coverage of New Beneficiary.--Section 
1452(c) of such title is amended by adding at the end the following new 
paragraph:
            ``(5) Rule for designation of new insurable interest 
        beneficiary following death of original beneficiary.--The 
        Secretary of Defense shall prescribe in regulations premiums 
        which a participant making an election under section 
        1448(b)(1)(G) of this title shall be required to pay for 
        participating in the Plan pursuant to that election. The total 
        amount of the premiums to be paid by a participant under the 
        regulations shall be equal to the sum of the following:
                    ``(A) The total additional amount by which the 
                retired pay of the participant would have been reduced 
                before the effective date of the election if the 
                original beneficiary (i) had not died and had been 
                covered under the Plan through the date of the 
                election, and (ii) had been the same number of years 
                younger than the participant (if any) as the new 
                beneficiary designated under the election.
                    ``(B) Interest on the amounts by which the retired 
                pay of the participant would have been so reduced, 
                computed from the dates on which the retired pay would 
                have been so reduced at such rate or rates and 
                according to such methodology as the Secretary of 
                Defense determines reasonable.
                    ``(C) Any additional amount that the Secretary 
                determines necessary to protect the actuarial soundness 
                of the Department of Defense Military Retirement Fund 
                against any increased risk for the fund that is 
                associated with the election.''.
    (c) Transition.--
            (1) Transition period.--In the case of a participant in the 
        Survivor Benefit Plan who made a covered insurable-interest 
        election (as defined in paragraph (2)) and whose designated 
        beneficiary under that election dies before the date of the 
        enactment of this Act or during the 18-month period beginning 
        on such date, the time period applicable for purposes of the 
        limitation in the third sentence of subparagraph (G)(i) of 
        section 1448(b)(1) of title 10, United States Code, as added by 
        subsection (a), shall be the two-year period beginning on the 
        date of the enactment of this Act (rather than the 180-day 
        period specified in that sentence).
            (2) Covered insurable-interest elections.--For purposes of 
        paragraph (1), a covered insurable-interest election is an 
        election under section 1448(b)(1) of title 10, United States 
        Code, made before the date of the enactment of this Act, or 
        during the 18-month period beginning on such date, by a 
        participant in the Survivor Benefit Plan to provide an annuity 
        under that plan to a natural person with an insurable interest 
        in that person.
            (3) Survivor benefit plan.--For purposes of this 
        subsection, the term ``Survivor Benefit Plan'' means the 
        program under subchapter II of chapter 73 of title 10, United 
        States Code.

SEC. 642. RETROACTIVE PAYMENT OF ADDITIONAL DEATH GRATUITY FOR CERTAIN 
              MEMBERS NOT PREVIOUSLY COVERED.

    (a) Specification of Additional Members Covered.--Section 
1478(d)(2) of title 10, United States Code, is amended by striking 
``May 11, 2005'' and inserting ``August 31, 2005''.
    (b) Funding.--Amounts for payments under section 1478(d) of title 
10, United States Code, as amended by subsection (a), with respect to 
deaths during the period beginning on May 12, 2005, and ending on 
August 31, 2005, may be derived from appropriations available to for 
the Department of Defense for fiscal year 2006 or fiscal year 2007.

SEC. 643. EQUITY IN COMPUTATION OF DISABILITY RETIRED PAY FOR RESERVE 
              COMPONENT MEMBERS WOUNDED IN ACTION.

    Section 1208(b) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``However, in the case of 
such a member who is retired under this chapter, or whose name is 
placed on the temporary disability retired list under this chapter, 
because of a disability incurred after the date of the enactment of 
this sentence for which the member is awarded the Purple Heart, the 
member shall be credited, for the purposes of this chapter, with the 
number of years of service that would be counted if computing the 
member's years of service under section 12732 of this title.''.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

SEC. 651. TREATMENT OF PRICE SURCHARGES OF TOBACCO PRODUCTS AND CERTAIN 
              OTHER MERCHANDISE SOLD AT COMMISSARY STORES.

    (a) Merchandise Procured From Exchanges.--Subsection (c)(3) of 
section 2484 of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by striking ``Subsections'' and inserting ``Except as 
        provided in subparagraph (B), subsections''; and
            (3) by adding at the end the following new subparagraph:
    ``(B) When a military exchange is the vendor of tobacco products or 
other merchandise authorized for sale in a commissary store under 
paragraph (1), any revenue above the cost of procuring the merchandise 
shall be allocated as if the revenue were a uniform sales price 
surcharge described in subsection (d).''.
    (b) Merchandise Treated as Noncommissary Store Inventory.--
Subsection (g) of such section is amended--
            (1) by inserting ``(1)'' before ``Notwithstanding'';
            (2) by striking ``Subsections'' and inserting ``Except as 
        provided in paragraph (2), subsections''; and
            (3) by adding at the end the following new paragraph:
    ``(2) When tobacco products are authorized for sale in a commissary 
store as noncommissary store inventory, any revenue above the cost of 
procuring the tobacco products shall be allocated as if the revenue 
were a uniform sales price surcharge described in subsection (d).''.

SEC. 652. LIMITATION ON USE OF DEPARTMENT OF DEFENSE LEASE AUTHORITY TO 
              UNDERMINE COMMISSARIES AND EXCHANGES AND OTHER MORALE, 
              WELFARE, AND RECREATION PROGRAMS AND NONAPPROPRIATED FUND 
              INSTRUMENTALITIES.

    Section 2667(f) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(5) Except in the case of a lease under this subsection, a lease 
of real property may not be entered into under this section to 
fascilitate the establishment or operation of an ancillary supporting 
facility (as defined in section 2871 of this title) if, as determined 
by the Secretary concerned, the facility is to be used for providing 
merchandise or services in direct competition with--
            ``(A) the Army and Air Force Exchange Service;
            ``(B) the Navy Exchange Service Command;
            ``(C) a Marine Corps exchange;
            ``(D) the Defense Commissary Agency; or
            ``(E) any nonappropriated fund activity of the Department 
        of Defense for the morale, welfare, and recreation of members 
        of the armed forces.''.

SEC. 653. USE OF NONAPPROPRIATED FUNDS TO SUPPLEMENT OR REPLACE 
              APPROPRIATED FUNDS FOR CONSTRUCTION OF FACILITIES OF 
              EXCHANGE STORES SYSTEM AND OTHER NONAPPROPRIATED FUND 
              INSTRUMENTALITIES, MILITARY LODGING FACILITIES, AND 
              COMMUNITY FACILITIES.

    (a) In General.--Subchapter III of chapter 147 of title 10, United 
States Code, is amended by inserting after section 2491c the following 
new section:
``Sec. 2491d. Use of nonappropriated funds to supplement or replace 
              appropriated funds for construction of facilities of 
              exchange stores system and other nonappropriated fund 
              instrumentalities, military lodging facilities, and 
              community facilities
    ``(a) Use of Nonappropriated Funds.--The Secretary of Defense may 
authorize the use of nonappropriated funds in lieu of or to supplement 
funds appropriated to the Department of Defense for the construction of 
the following:
            ``(1) Facilities of the exchange stores system and other 
        revenue-generating facilities operated by nonappropriated fund 
        instrumentalities of the Department of Defense for the morale, 
        welfare, and recreation of members of the armed forces.
            ``(2) Facilities of other nonappropriated fund 
        instrumentalities of the Department of Defense for the morale, 
        welfare, and recreation of members of the armed forces.
            ``(3) Military lodging facilities used to provide temporary 
        lodging to authorized members of the armed forces, including 
        temporary duty lodging, permanent change of station lodging, 
        recreational lodging, and military treatment facility lodging.
            ``(4) Community facilities intended to supplement mission 
        activities, such as military museums and service academy extra-
        curricular activities, or to facilitate private organizations 
        or enterprises, such as financial services, memorials, and 
        thrift shop facilities, on military installations.
    ``(b) Use Criteria.--The Secretary of Defense may prescribe by 
regulation the criteria under which nonappropriated funds may be used 
under subsection (a).
    ``(c) Congressional Notification.--When a decision is made to use 
nonappropriated funds under subsection (a), the Secretary of Defense 
shall submit a report to the congressional defense committees 
containing the reasons for using nonappropriated funds in lieu of or to 
supplement appropriated funds and the amount of nonappropriated funds 
to be used. The nonappropriated funds may be used only after the end of 
the 21-day period beginning on the date the report is received by such 
committees or, if earlier, the end of the 14-day period beginning on 
the date on which a copy of the report is provided in an electronic 
medium pursuant to section 480 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by inserting after the item relating to 
section 2491c the end the following new item:

``2491d. Use of nonappropriated funds to supplement or replace 
                            appropriated funds for construction of 
                            facilities of exchange stores system and 
                            other nonappropriated fund 
                            instrumentalities, military lodging 
                            facilities, and community facilities.''.

SEC. 654. REPORT ON COST EFFECTIVENESS OF PURCHASING COMMERCIAL 
              INSURANCE FOR COMMISSARY AND EXCHANGE FACILITIES AND 
              FACILITIES OF OTHER MORALE, WELFARE, AND RECREATION 
              PROGRAMS AND NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Report Required.--Not later than July 31, 2007, the Secretary 
of Defense shall submit to Congress a report evaluating the cost 
effectiveness of the Defense Commissary Agency and the nonappropriated 
fund activities specified in subsection (b) purchasing commercial 
insurance to protect financial interests in facilities operated by the 
Defense Commissary Agency or those nonappropriated fund activities.
    (b) Covered Nonappropriated Fund Activities.--The report shall 
apply with respect to--
            (1) the Army and Air Force Exchange Service;
            (2) the Navy Exchange Service Command;
            (3) a Marine Corps exchange; and
            (4) any nonappropriated fund activity of the Department of 
        Defense for the morale, welfare, and recreation of members of 
        the armed forces.

                       Subtitle F--Other Matters

SEC. 661. REPEAL OF ANNUAL REPORTING REQUIREMENT REGARDING EFFECTS OF 
              RECRUITMENT AND RETENTION INITIATIVES.

    (a) Repeal.--Section 1015 of title 37, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 19 of title 37, United States Code, is amended by striking the 
item relating to section 1015.

SEC. 662. PILOT PROJECT REGARDING PROVIDING GOLF CARTS ACCESSIBLE FOR 
              DISABLED PERSONS AT MILITARY GOLF COURSES.

    (a) Pilot Project Required.--The Secretary of Defense shall conduct 
a pilot project at not less than three military golf courses to 
evaluate the cost effectiveness and utility of making available at 
military golf courses golf carts that are accessible for disabled 
persons authorized to use such courses and the demand among disabled 
persons authorized to use such courses for accessible golf carts. The 
Secretary shall provide at least two accessible golf carts at each 
pilot project location.
    (b) Pilot Project Locations.--The military golf courses selected to 
participate in the pilot project shall be geographically dispersed, 
except that one of the military golf courses shall be in the Washington 
metropolitan area.
    (c) Duration.--The Secretary shall conduct the pilot project for a 
minimum of one year.
    (d) Report Required.--Not later than 180 days after the conclusion 
of the pilot project, the Secretary shall submit a report to Congress 
containing the results of the project and such recommendations as the 
Secretary considers appropriate regarding providing golf carts 
accessible to disabled persons.

SEC. 663. ENHANCED AUTHORITY TO REMIT OR CANCEL INDEBTEDNESS OF MEMBERS 
              OF THE ARMED FORCES INCURRED ON ACTIVE DUTY.

    (a) Period of Exercise of Service Secretary Authority After 
Separation From Active Duty.--Sections 4837(b), 6161(b), and 9837(b) of 
title 10, United States Code, are each amended by striking ``one-year 
period'' each place it appears and inserting ``five-year period''.
    (b) Two-Year Extension of Enhanced Authority.--Subsections (a)(3), 
(b)(3), and (c)(3) of section 683 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3322) are 
amended by striking ``December 31, 2007'' in the first sentence and 
inserting ``December 31, 2009''.

                   TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual 
                            assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care 
                            for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening.
Sec. 704. Prohibition on increases in certain health care costs for 
                            members of the uniformed services.
Sec. 705. Services of mental health counselors.
Sec. 706. Demonstration project on coverage of selected over-the-
                            counter medications under the pharmacy 
                            benefit program.
Sec. 707. Requirement to reimburse certain travel expenses of certain 
                            beneficiaries covered by TRICARE for life.
Sec. 708. Inflation adjustment of differential payments to children's 
                            hospitals participating in TRICARE program.
Sec. 709. Expanded eligibility of Selected Reserve members under 
                            TRICARE program.
Sec. 710. Extension to TRICARE of medicare prohibition of financial 
                            incentives not to enroll in group health 
                            plan.

                    Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military 
                            health care.
Sec. 712. Study and plan relating to chiropractic health care services.
Sec. 713. Comptroller General study and report on Defense Health 
                            Program.
Sec. 714. Transfer of custody of the Air Force Health Study assets to 
                            Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of Reserve 
                            Components to retain civilian health care 
                            coverage.

                       Subtitle C--Other Matters

Sec. 721. Costs of incentive payments to employees for TRICARE 
                            enrollment made unallowable for 
                            contractors.
Sec. 722. Requirement for military medical personnel to be trained in 
                            preservation of remains.

           Subtitle D--Pharmacy Benefits Program Improvements

Sec. 731. TRICARE pharmacy program cost-share requirements.

                Subtitle A--TRICARE Program Improvements

SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINATION FOLLOWING SEXUAL 
              ASSAULT OR DOMESTIC VIOLENCE.

    Section 1079(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(17) Forensic examinations following a sexual assault or 
        domestic violence may be provided.''.

SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER COSTS FOR DENTAL CARE 
              FOR CHILDREN AND CERTAIN OTHER PATIENTS.

    Section 1079(a)(1) of title 10, United States Code, is amended to 
read as follows:
            ``(1) With respect to dental care--
                    ``(A) except as provided in subparagraph (B), only 
                that care required as a necessary adjunct to medical or 
                surgical treatment may be provided; and
                    ``(B) in connection with dental treatment for 
                patients with developmental, mental, or physical 
                disabilities or for pediatric patients age 5 or under, 
                only institutional and anesthesia services may be 
                provided.''.

SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER SCREENING.

    (a) Terms Related to Primary and Preventive Health Care Services 
for Women.--Section 1074d(b) of title 10, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``Papanicolaou tests (pap 
        smear)'' and inserting ``Cervical cancer screening''; and
            (2) in paragraph (2), by striking ``Breast examinations and 
        mammography'' and inserting ``Breast cancer screening''.
    (b) Terms Related to Contracts for Medical Care for Spouses and 
Children.--Section 1079(a)(2) of such title is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``the schedule of pap smears and mammograms'' and inserting 
        ``the schedule and method of breast and cervical cancer 
        screenings''; and
            (2) in subparagraph (B), by striking ``pap smears and 
        mammograms or'' and inserting ``cervical, breast,''.

SEC. 704. PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE COSTS FOR 
              MEMBERS OF THE UNIFORMED SERVICES.

    (a) Prohibition on Increase in Charges Under Contracts for Medical 
Care.--Section 1097(e) of title 10, United States Code, is amended by 
adding at the end the following: ``A premium, deductible, copayment, or 
other charge prescribed by the Secretary under this subsection may not 
be increased during the period beginning on April 1, 2006, and ending 
on December 31, 2007.''.
    (b) Prohibition on Increase in Charges for Inpatient Care.--Section 
1086(b)(3) of title 10, United States Code, is amended by inserting 
after ``charges for inpatient care'' the following: ``, except that in 
no case may the charges for inpatient care for a patient exceed $535 
per day during the period beginning on April 1, 2006, and ending on 
December 31, 2007.''.
    (c) Prohibition on Increase in Premiums Under TRICARE Coverage for 
Certain Members in the Selected Reserve.--Section 1076d(d)(3) of title 
10, United States Code, is amended by adding at the end the following: 
``During the period beginning on April 1, 2006, and ending on December 
31, 2007, the monthly amount of the premium may not be increased above 
the amount in effect for the month of March 2006.''.
    (d) Prohibition on Increase in Premiums Under TRICARE Coverage for 
Members of the Ready Reserve.--Section 1076b(e)(3) of title 10, United 
States Code, is amended by adding at the end the following: ``During 
the period beginning on April 1, 2006, and ending on December 31, 2007, 
the monthly amount of a premium under paragraph (2) may not be 
increased above the amount in effect for the first month health care is 
provided under this section as amended by Public Law 109-163.''.

SEC. 705. SERVICES OF MENTAL HEALTH COUNSELORS.

    (a) Reimbursement of Mental Health Counselors Under TRICARE.--
            (1)  reimbursement under tricare.--Section 1079(a)(8) of 
        title 10, United States Code, is amended--
                    (A) by inserting ``or licensed or certified mental 
                health counselors'' after ``certified marriage and 
                family therapists'' both places it appears; and
                    (B) by inserting ``or licensed or certified mental 
                health counselors'' after ``that the therapists.''
            (2) Authority to assess medical or psychological necessity 
        of service or supply.--Section 1079(a)(13) of such title is 
        amended by inserting ``, licensed or certified mental health 
        counselor, '' after ``certified marriage and family 
        therapist''.
    (b) Services of Mental Health Counselors.--
            (1) Authority to enter into personal services contracts.--
        Section 704(c)(2) of the National Defense Authorization Act for 
        Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2799; 10 U.S.C. 
        1091 note) is amended by inserting ``mental health 
        counselors,'' after ``psychologists,''.
            (2) Applicability of licensure requirement for health-care 
        professionals.--Section 1094 (e)(2) of title 10, United States 
        Code, is amended by inserting ``mental health counselor,'' 
        after ``psychologist,''.

SEC. 706. DEMONSTRATION PROJECT ON COVERAGE OF SELECTED OVER-THE-
              COUNTER MEDICATIONS UNDER THE PHARMACY BENEFIT PROGRAM.

    (a) Requirement to Conduct Demonstration.--The Secretary of Defense 
shall conduct a demonstration project under section 1092 of title 10, 
United States Code, to allow particular over-the-counter medications to 
be included on the uniform formulary under section 1074g of such title.
    (b) Elements of Demonstration Project.--
            (1) Inclusion of certain over-the-counter medications.--As 
        part of the demonstration project, the Secretary shall modify 
        uniform formulary specifications under section 1074g(a)(2) of 
        such title to include on the uniform formulary any 
        pharmaceutical agent that does not require a prescription 
        (commonly referred to as an over-the-counter medication) if the 
        Pharmacy and Therapeutics Committee finds that the over-the-
        counter medication is a clinically effective and cost-effective 
        alternative to a pharmaceutical agent that requires a 
        prescription. If the Pharmacy and Therapeutics Committee makes 
        such a finding, the over-the-counter medication shall be 
        considered to be in the same therapeutic class of 
        pharmaceutical agents that the agent requiring a prescription 
        is in, and to the same extent as any agent in the class that 
        requires a prescription. Such an over-the-counter medication 
        shall be made available to a beneficiary through the 
        demonstration program only if the medication is in place of a 
        pharmaceutical agent requiring a prescription and the 
        beneficiary has a prescription for that pharmaceutical agent.
            (2) Conduct through military facilities, retail pharmacies, 
        or mail order program.--The Secretary shall conduct the 
        demonstration project through at least two of the means 
        described in subparagraph (E) of section 1074g(a)(2) through 
        which over-the-counter medications are provided and may conduct 
        the demonstration project throughout the entire pharmacy 
        benefits program or at a limited number of sites. If the 
        project is conducted at a limited number of sites, the number 
        of sites shall be not less than five in each TRICARE region for 
        each of the two means described in such subparagraph (E).
            (3) Period of demonstration.--The Secretary shall provide 
        for conducting the demonstration project for a period of time 
        necessary to evaluate the feasibility and cost effectiveness of 
        the demonstration. Such period shall be at least as long as the 
        period covered by pharmacy contracts in existence on the date 
        of the enactment of this Act (including any extensions of the 
        contracts), or five years, whichever is shorter.
            (4) Implementation deadline.-- Implementation of the 
        demonstration project shall begin not later than May 1, 2007.
    (c) Report.--Not later than 60 days before the end of the 
demonstration project, the Secretary shall submit to the Committees on 
Armed Services of the House of Representatives and the Senate a report 
on the demonstration project. The report shall contain an evaluation by 
the Secretary of the costs and benefits of the project, and 
recommendations on whether permanent authority should be provided to 
cover over-the-counter medications under the pharmacy benefits program.
    (d) Continuation of Demonstration Project.--If the Secretary 
recommends in the report under subsection (c) that permanent authority 
should be provided, the Secretary may continue the demonstration 
project for up to one year after submitting the report.

SEC. 707. REQUIREMENT TO REIMBURSE CERTAIN TRAVEL EXPENSES OF CERTAIN 
              BENEFICIARIES COVERED BY TRICARE FOR LIFE.

    (a) Requirement.--Section 1074i of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) TRICARE for Life Beneficiaries.--
            ``(1) An eligible TRICARE for Life beneficiary shall be 
        provided reimbursement for travel expenses to a military 
        medical treatment facility if--
                    ``(A) the purpose of the travel is for a follow-up 
                appointment for medical treatment of a condition of the 
                beneficiary; and
                    ``(B) the initial appointment for medical treatment 
                of the condition was at the same facility.
            ``(2) Reimbursement under this subsection shall, as nearly 
        as practicable, be under the same terms and conditions, and 
        shall be at the same rate, as apply to beneficiary travel 
        reimbursement provided under subsection (a), except that 
        reimbursement shall be provided--
                    ``(A) for no more than 3 follow-up appointments; 
                and
                    ``(B) only if adequate follow-up medical treatment, 
                as determined under the TRICARE program, cannot be 
                obtained within 100 miles of the residence of the 
                beneficiary.
            ``(3) In this subsection, the term `eligible TRICARE for 
        Life beneficiary' means a person--
                    ``(A) who is eligible for health benefits under 
                section 1086 of this title by reason of subsection 
                (d)(2)(A) of that section;
                    ``(B) who attained age 65 after an initial 
                appointment for medical treatment at a military medical 
                treatment facility; and
                    ``(C) who resides more than 100 miles from the 
                military medical treatment facility and was referred to 
                such facility for treatment by a specialty care 
                provider.''.
    (b) Effective Date.--Subsection (c) of section 1074i of title 10, 
United States Code, as added by subsection (a), shall apply with 
respect to beneficiaries who attain age 65 after the date of the 
enactment of this Act.

SEC. 708. INFLATION ADJUSTMENT OF DIFFERENTIAL PAYMENTS TO CHILDREN'S 
              HOSPITALS PARTICIPATING IN TRICARE PROGRAM.

    (a) Annual Inflation Adjustment.--Beginning in fiscal year 2007, 
the Secretary of Defense shall annually adjust for inflation the 
TRICARE children's hospital differential payment rate. The adjustment 
for a fiscal year shall be the same as the applicable percentage 
increase defined under section 1886(d)(3)(B)(i) of the Social Security 
Act (42 U.S.C. 1395ww(d)(3)(B)(i)) for that fiscal year for hospitals 
located in large urban areas.
    (b) TRICARE Children's Hospital Differential Payment Rate.--In this 
section, the term ``TRICARE children's hospital differential payment 
rate'' means the differential payment rate by the Department of Defense 
to children's hospitals for health care services for dependent children 
of members of the uniformed services under the TRICARE program.

SEC. 709. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER 
              TRICARE PROGRAM.

    (a) General Eligibility.--Subsection (a) of section 1076d of title 
10, United States Code, is amended--
            (1) by striking ``(a) Eligibility.--A member'' and 
        inserting ``(a) Eligibility.--(1) Except as provided in 
        paragraph (2), a member'';
            (2) by striking ``after the member completes'' and all that 
        follows through ``one or more whole years following such 
        date''; and
            (3) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) does not apply to a member who is enrolled, or 
is eligible to enroll, in a health benefits plan under chapter 89 of 
title 5.''.
    (b) Condition for Termination of Eligibility.--Subsection (b) of 
such section is amended--
            (1) by striking ``(b) Period of Coverage.--(1) TRICARE 
        Standard'' and all that follows through ``(4) Eligibility'' and 
        inserting ``(b) Termination of Eligibility Upon Termination of 
        Service.--Eligibility''; and
            (2) by striking paragraph (5).
    (c) Conforming Amendments.--
            (1) Such section is further amended--
                    (A) by striking subsection (e);
                    (B) by redesignating subsection (g) as subsection 
                (e) and transferring such subsection within such 
                section so as to appear following subsection (d); and
                    (C) by striking paragraph (3) of subsection (f).
            (2) The heading for such section is amended to read as 
        follows:
``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of 
              the Selected Reserve''.
    (d) Repeal of Obsolete Provision.--Section 1076b of title 10, 
United States Code, is repealed.
    (e) Clerical Amendments.--The table of sections at the beginning of 
chapter 55 of title 10, United States Code, is amended--
            (1) by striking the item relating to section 1076b; and
            (2) by striking the item relating to section 1076d and 
        inserting the following:

``1076d. TRICARE program: TRICARE Standard coverage for members of the 
                            Selected Reserve.''.
    (f) Savings Provision.--Enrollments in TRICARE Standard that are in 
effect on the day before the date of the enactment of this Act under 
section 1076d of title 10, United States Code, as in effect on such 
day, shall be continued until terminated after such day under such 
section 1076d as amended by this section.
    (g) Effective Date.--The Secretary of Defense shall ensure that 
health care under TRICARE Standard is provided under section 1076d of 
title 10, United States Code, as amended by this section, beginning not 
later than October 1, 2007.

SEC. 710. EXTENSION TO TRICARE OF MEDICARE PROHIBITION OF FINANCIAL 
              INCENTIVES NOT TO ENROLL IN GROUP HEALTH PLAN.

    (a) In General.--Section 1097b of title 10, United States Code, is 
amended by redesignating subsection (c) as subsection (d) and by adding 
the following after subsection (b):
    ``(c) Prohibition of Financial Incentives not to Enroll in a Group 
Health Plan.--(1) Except as provided in this subsection, the provisions 
of section 1862(b)(3)(C) of the Social Security Act shall apply with 
respect to financial or other incentives for an individual eligible for 
benefits under section 1086 of this title not to enroll (or to 
terminate enrollment) under a health plan which would (in the case of 
such enrollment) be a primary plan under sections 1079(j)(1) and 
1086(g) of this title in the same manner as such section 1862(b)(3)(C) 
applies to financial or other incentives for an individual entitled to 
benefits under title XVIII of the Social Security Act not to enroll (or 
to terminate enrollment) under a group health plan or a large group 
health plan which would (in the case of enrollment) be a primary plan 
(as defined in section 1862(b)(2)(A) of such Act).
    ``(2)(A) The Secretary of Defense may by regulation adopt such 
exceptions to the prohibition referenced and applied under paragraph 
(1) as the Secretary deems appropriate and such paragraph (1) shall be 
implemented taking into account the adoption of such exceptions.
    ``(B) The Secretary of Defense and the Secretary of Health and 
Human Services are authorized to enter into agreements for carrying out 
this subsection. Any such agreement shall provide that any expenses 
incurred by the Secretary of Health and Human Services pertaining to 
carrying out this subsection shall be reimbursed by the Secretary of 
Defense.
    ``(C) Authorities of the Inspector General of the Department of 
Defense shall be available for oversight and investigations of 
responsibilities of employers and other entities under this subsection.
    ``(D) Information obtained under section 1095(k) of this title may 
be used in carrying out this subsection in the same manner as 
information obtained under section 1862(b)(5) may be used in carrying 
out section 1862(b).
    ``(E) Any amounts collected in carrying out paragraph (1) shall be 
handled in accordance with section 1079a of this title.
    ``(3) In addition to any penalty applied under the authority of 
paragraph (1), the Secretary of Defense may by regulation provide that 
repeated violations by an employer or other entity of the prohibition 
referenced and applied under paragraph (1) are grounds for exclusion of 
the employer or other entity from any contract or subcontract to 
provide goods or services to, or any financial assistance from, the 
Department of Defense.''.
    (b) Conforming Amendment.--Section 1095(k)(5) of such title is 
amended by striking ``and 1086(d)'' and inserting ``, 1086(d), and 
1097b(c)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect January 1, 2008.

                    Subtitle B--Studies and Reports

SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE FUTURE OF MILITARY 
              HEALTH CARE.

    (a) Requirement to Establish.--The Secretary of Defense shall 
establish within the Department of Defense a task force to examine 
matters relating to the future of military health care.
    (b) Composition.--
            (1) Members.--The task force shall consist of not more than 
        14 members appointed by the Secretary of Defense from among 
        individuals described in paragraph (2) who have demonstrated 
        expertise in the area of health care programs and costs.
            (2) Range of members.--The individuals appointed to the 
        task force shall include--
                    (A) at least one member of each of the Medical 
                Departments of the Army, Navy, and Air Force;
                    (B) a number of persons from outside the Department 
                of Defense equal to the total number of personnel from 
                within the Department of Defense (whether members of 
                the Armed Forces or civilian personnel) who are 
                appointed to the task force;
                    (C) persons who have experience in--
                            (i) health care actuarial forecasting;
                            (ii) health care program development;
                            (iii) health care budget management;
                            (iv) evidence-based medicine;
                            (v) health care performance measurement;
                            (vi) health care quality improvement; and
                            (vii) academic institute research in health 
                        care services;
                    (D) at least one member from the Institute of 
                Medicine;
                    (E) at least one member from the Defense Business 
                Board; and
                    (F) at least one representative from a military or 
                veterans service organization who has experience in 
                health care.
            (3) Individuals appointed outside the department of 
        defense.--
                    (A) Individuals appointed to the task force from 
                outside the Department of Defense may include officers 
                or employees of other departments or agencies of the 
                Federal Government, officers or employees of State and 
                local governments, or individuals from the private 
                sector.
                    (B) Individuals appointed to the task force from 
                outside the Department of Defense shall include--
                            (i) an officer or employee of the 
                        Department of Veterans Affairs; and
                            (ii) an officer or employee of the 
                        Department of Health and Human Services.
            (4) Deadline for appointment.--All appointments of 
        individuals to the task force shall be made not later than 90 
        days after the date of the enactment of this Act.
            (5) Co-chairs of task force.--There shall be two co-chairs 
        of the task force. One of the co-chairs shall be designated by 
        the Secretary of Defense at the time of appointment from among 
        the Department of Defense personnel appointed to the task 
        force. The other co-chair shall be selected from among the 
        members appointed from outside the Department of Defense by 
        members so appointed.
    (c) Assessment and Recommendations on the Future of Military Health 
Care.--
            (1) In general.--Not later than 12 months after the date on 
        which all members of the task force have been appointed, the 
        task force shall submit to the Secretary a report containing an 
        assessment of, and recommendations for, sustaining the military 
        health care services being provided to members of the Armed 
        Forces, retirees, and their families.
            (2) Utilization of other efforts.--In preparing the report, 
        the task force shall take into consideration the findings and 
        recommendation included in the Healthcare for Military Retirees 
        Task Group of the Defense Business Board, previous Government 
        Accountability Office reports, studies and reviews by the 
        Assistant Secretary of Defense for Health Affairs, and any 
        other studies or research conducted by organizations regarding 
        improvements to sustain the military health care system.
            (3) Elements.--The assessment and recommendations 
        (including recommendations for legislative or administrative 
        action) shall include measures to improve the following:
                    (A) Wellness initiatives and disease management 
                programs of the Department of Defense, including health 
                risk tracking and the use of rewards for wellness.
                    (B) Education programs focused on prevention 
                awareness and patient-initiated health care.
                    (C) The ability to account for the true and 
                accurate cost of health care in the military health 
                system.
                    (D) Alternative health care initiatives to manage 
                patient behavior and costs.
                    (E) The appropriate command and control structure 
                within the Department of Defense and the Armed Forces 
                to manage the military health system.
                    (F) The adequacy of the military health care 
                procurement system, including methods to streamline 
                existing procurement activities.
                    (G) The appropriate mix of military and civilian 
                personnel to meet future readiness and high-quality 
                health care service requirements.
                    (H) The beneficiary and Government cost sharing 
                structure required to sustain the military health 
                benefits over the long term.
                    (I) Programs focused on managing the health care 
                needs of Medicare-eligible military beneficiaries.
                    (J) Efficient and cost effective contracts for 
                health care services, including performance-based 
                requirements for health care provider reimbursement.
    (c) Administrative Matters.--
            (1) Compensation.--Each member of the task force who is a 
        member of the Armed Forces or a civilian officer or employee of 
        the United States shall serve without compensation (other than 
        compensation to which entitled as a member of the Armed Forces 
        or an officer or employee of the United States, as the case may 
        be). Other members of the task force shall be treated for 
        purposes of section 3161 of title 5, United States Code, as 
        having been appointed under subsection (b) of such section.
            (2) Oversight.--The Under Secretary of Defense for 
        Personnel and Readiness shall oversee the activities of the 
        task force.
            (3) Administrative support.--The Washington Headquarters 
        Services of the Department of Defense shall provide the task 
        force with personnel, facilities, and other administrative 
        support as necessary for the performance of the duties of the 
        task force.
            (4) Access to facilities.--The Under Secretary of Defense 
        for Personnel and Readiness shall, in coordination with the 
        Secretaries of the military departments, ensure appropriate 
        access by the task force to military installations and 
        facilities for purposes of the discharge of the duties of the 
        task force.
    (e) Report.--
            (1) In general.--The task force shall submit to the 
        Secretary of Defense a report on its activities under this 
        section. The report shall include--
                    (A) a description of the activities of the task 
                force;
                    (B) the assessment and recommendations required by 
                subsection (c); and
                    (C) such other matters relating to the activities 
                of the task force that the task force considers 
                appropriate.
            (2) Transmittal to congress.--Not later than 90 days after 
        receipt of the report under paragraph (1), the Secretary shall 
        transmit the report to the Committees on Armed Services of the 
        Senate and the House of Representatives. The Secretary may 
        include in the transmittal such comments on the report as the 
        Secretary considers appropriate.
    (f) Plan Required.--Not later than 6 months after receipt of the 
report from the task force under subsection (e)(1), the Secretary of 
Defense shall develop a plan based on the recommendations of the task 
force and submit the plan to the Committees on Armed Services of the 
Senate and the House of Representatives.
    (g) Termination.--The task force shall terminate 90 days after the 
date on which the report of the task force is submitted to Congress 
under subsection (e)(2).

SEC. 712. STUDY AND PLAN RELATING TO CHIROPRACTIC HEALTH CARE SERVICES.

    (a) Study Required.--
            (1) Groups covered.--The Secretary of Defense shall conduct 
        a study of providing chiropractic health care services and 
        benefits to the following groups:
                    (A) All members of the uniformed services on active 
                duty and entitled to care under section 1074(a) of 
                title 10, United States Code.
                    (B) All members described in subparagraph (A) and 
                their eligible dependents, and all members of reserve 
                components of the uniformed services and their eligible 
                dependents.
                    (C) All members or former members of the uniformed 
                services who are entitled to retired or retainer pay or 
                equivalent pay and their eligible dependents.
            (2) Matters examined.--
                    (A) For each group listed in subparagraphs (A), 
                (B), and (C) of paragraph (1), the study shall examine 
                the following with respect to chiropractic health care 
                services and benefits:
                            (i) The cost of providing such services and 
                        benefits.
                            (ii) The feasibility of providing such 
                        services and benefits.
                            (iii) An assessment of the health care 
                        benefits of providing such services and 
                        benefits.
                            (iv) An estimate of the potential cost 
                        savings of providing such services and benefits 
                        in lieu of other medical services.
                            (v) The identification of existing and 
                        planned health care infrastructure, including 
                        personnel, equipment, and facilities, to 
                        accommodate the provision of chiropractic 
                        health care services.
                    (B) For the members of the group listed in 
                subparagraph (A) of paragraph (1), the study shall 
                examine the effects of providing chiropractic health 
                care services and benefits--
                            (i) on the readiness of such members; and
                            (ii) on the acceleration of the return to 
                        duty of such members following an identified 
                        injury or other malady that can be 
                        appropriately treated with chiropractic health 
                        care services.
            (3) Space available costs.--The study shall also include a 
        detailed analysis of the projected costs of providing 
        chiropractic health care services on a space available basis in 
        the military treatment facilities currently providing 
        chiropractic care under section 702 of the Floyd D. Spence 
        National Defense Authorization Act of Fiscal Year 2001 (as 
        enacted by Public Law 106-398; 10 U.S.C. 1092 note).
            (4) Eligible dependents defined.--In this section, the term 
        ``eligible dependent'' has the meaning given that term in 
        section 1076a(k) of title 10, United States Code.
    (b) Plan Required.--Not later than March 31, 2007, the Secretary of 
Defense shall revise the plan required under section 702 of the Floyd 
D. Spence National Defense Authorization Act of Fiscal Year 2001 (as 
enacted by Public Law 106-398; 10 U.S.C. 1092 note), including a 
detailed analysis of the projected costs, to provide chiropractic 
health care services and benefits as a permanent part of the Defense 
Health Program (including the TRICARE program) as required under that 
section.
    (c) Report Required.--Not later than March 31, 2007, the Secretary 
of Defense shall submit a report on the study required under subsection 
(a), together with the plan required under subsection (b), to the 
Committees on Armed Services of the Senate and the House of 
Representatives.

SEC. 713. COMPTROLLER GENERAL STUDY AND REPORT ON DEFENSE HEALTH 
              PROGRAM.

    (a) Study Required.--The Comptroller General, in cooperation with 
the Congressional Budget Office, shall conduct a study of the projected 
cost savings to the Defense Health Program included in the fiscal year 
2007 budget request.
    (b) Elements.--The study required by subsection (a) shall include 
the following:
            (1) An evaluation of the rationale for calculations made by 
        the Department of Defense for the portion of total health care 
        costs paid by beneficiaries in 1995 and in 2005, including 
        issues such as--
                    (A) the rationale for the Department's stated costs 
                of providing the benefit in 1995 and in 2005;
                    (B) the basis for the Department's calculations of 
                increases in cost between 1995 and 2005; and
                    (C) the amounts paid by beneficiaries for health 
                care in 1995 and 2005.
            (2) An evaluation of the rationale for calculations and 
        assumptions made by the Department of Defense for the estimated 
        savings associated with the implementation of its cost share 
        increases.
            (3) A review of the annual rate of medical inflation of the 
        Department of Defense and how it compares with the annual rates 
        of increase in health care premiums in the Federal Employee 
        Health Benefit Program and other health care programs as well 
        as other health care indexes for the past 5 years.
            (4) An assessment of the rationale for the cost share 
        increase amounts made by the Department of Defense.
    (c) Independent Experts.--To ensure the availability of appropriate 
expertise in addressing the elements of the study required under this 
section, the Comptroller General may use independent experts, such as 
actuaries, if needed.
    (d) Report.--The Comptroller General shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives a 
report on the study required by subsection (a) not later than June 1, 
2007.

SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY ASSETS TO 
              MEDICAL FOLLOW-UP AGENCY.

    (a) Transfer.--
            (1) Notification of participants.--The Secretary of the Air 
        Force shall notify the participants of the Air Force Health 
        Study that the study as currently constituted is ending as of 
        September 30, 2006. In consultation with the Medical Follow-up 
        Agency (in this section referred to as the ``Agency'') of the 
        Institute of Medicine of the National Academy of Sciences, the 
        Secretary of the Air Force shall request the written consent of 
        the participants to transfer their data and biological 
        specimens to the Agency during fiscal year 2007 and written 
        consent for the Agency to maintain the data and specimens and 
        make them available for additional studies.
            (2) Completion of transfer.--Custodianship of the Air Force 
        Health Study shall be completely transferred to the Agency on 
        or before September 30, 2007. Assets to be transferred shall 
        include electronic data files and biological specimens of all 
        the study participants.
            (3) Copies to archives.--The Air Force shall send paper 
        copies of all study documents to the National Archives.
    (b) Report on Transfer.--
            (1) Requirement.--Not later than 30 days after completion 
        of the transfer of the assets of the Air Force Health Study 
        under subsection (a), the Secretary of the Air Force shall 
        submit to the Committees on Armed Services of the Senate and 
        the House of Representatives a report on the transfer.
            (2) Matters covered.--At a minimum, the report shall 
        include information on the number of study participants whose 
        data and biological specimens were not transferred, the efforts 
        that were taken to contact such participants, and the reasons 
        why the transfer of their data and specimens did not occur.
    (c) Disposition of Assets Not Transferred.--The Secretary of the 
Air Force may not destroy any data or biological specimens not 
transferred under subsection (a) until the expiration of the one-year 
period following submission of the report under subsection (b).
    (d) Funding.--
            (1) Costs of transfer.--The Secretary of Defense shall make 
        available to the Air Force $850,000 for preparation, transfer 
        of the assets of the Air Force Health Study and shipment of 
        data and specimens to the Medical Follow-up Agency and the 
        National Archives during fiscal year 2007 from amounts 
        available from the Department of Defense for that year. The 
        Secretary of Defense is authorized to transfer the freezers and 
        other physical assets assigned to the Air Force Health Study to 
        the Agency without charge.
            (2) Costs of collaboration.--The Secretary of Defense may 
        reimburse the National Academy of Sciences up to $200,000 for 
        costs of the Medical Follow-up Agency to collaborate with the 
        Air Force in the transfer and receipt of the assets of the Air 
        Force Health Study to the Agency during fiscal year 2007 from 
        amounts available from the Department of Defense for that year.

SEC. 715. STUDY ON ALLOWING DEPENDENTS OF ACTIVATED MEMBERS OF RESERVE 
              COMPONENTS TO RETAIN CIVILIAN HEALTH CARE COVERAGE.

    (a) Study Requirement.--The Secretary of Defense shall conduct a 
study on the feasibility of allowing family members of members of the 
Reserve Components who are called or ordered to active duty to continue 
health care coverage under a civilian health care program and provide 
reimbursement for such health care.
    (b) Elements.--The study required by subsection (a) shall include 
the following:
            (1) An assessment of the number of military dependents with 
        special health care needs (such as ongoing chemotherapy or 
        physical therapy) who would benefit from continued coverage 
        under the member's civilian health care plan instead of 
        enrolling in the TRICARE program.
            (2) An assessment of the feasibility of providing 
        reimbursement to the member or the sponsor of the civilian 
        health coverage.
            (3) A recommendation on the appropriate rate of 
        reimbursement for civilian employers or members.
            (4) The feasibility of including dependents who do not have 
        access to health care providers that accept payment under the 
        TRICARE program (such as those in rural areas).
    (c) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the study required under subsection (a).

                       Subtitle C--Other Matters

SEC. 721. COSTS OF INCENTIVE PAYMENTS TO EMPLOYEES FOR TRICARE 
              ENROLLMENT MADE UNALLOWABLE FOR CONTRACTORS.

    (a) Defense Contracts.--Section 2324(e)(1) of title 10, United 
States Code, is amended by adding at the end the following new 
subparagraph:
            ``(Q) Costs incurred by a contractor for incentive payments 
        to employees to encourage enrollment in the TRICARE program 
        under chapter 55 of this title or any other Government-
        sponsored health care program, except that this subparagraph 
        does not apply to such costs incurred by a contractor 
        performing a contract to which any of the following applies:
                    ``(i) The Services Contract Act of 1965 (41 U.S.C. 
                351 et seq.).
                    ``(ii) Any other law or labor agreement that 
                requires a company to compensate its employees for 
                health care whether or not the employee participates in 
                a company health plan.''.
    (b) Civilian Agency Contracts.--Section 306(e)(1) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 256(e)(1)) 
is amended by adding at the end the following new subparagraph:
            ``(P) Costs incurred by a contractor for incentive payments 
        to employees to encourage enrollment in the TRICARE program 
        under chapter 55 of title 10, United States Code, or any other 
        Government-sponsored health care program, except that this 
        subparagraph does not apply to such costs incurred by a 
        contractor performing a contract to which any of the following 
        applies:
                    ``(i) The Services Contract Act of 1965 (41 U.S.C. 
                351 et seq.).
                    ``(ii) Any other law or labor agreement that 
                requires a company to compensate its employees for 
                health care whether or not the employee participates in 
                a company health plan.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to contracts entered into after the date occurring 
180 days after the date of the enactment of this Act.

SEC. 722. REQUIREMENT FOR MILITARY MEDICAL PERSONNEL TO BE TRAINED IN 
              PRESERVATION OF REMAINS.

    (a) Requirement.--The Secretary of Defense shall develop a program 
requiring each military department to include training in the 
preservation of remains for health care professionals under the 
department's jurisdiction. The training shall be provided before a 
health care professional is deployed into a theater of operation and 
periodically thereafter as determined necessary for refresher training.
    (b) Matters Covered by Training.--The training shall include, at a 
minimum--
            (1) best practices and procedures for the preservation of 
        the remains of a member of the Armed Forces after death, taking 
        into account the needs, sensitivities, and potential wishes of 
        the family of the decedent, including the return of the remains 
        to the family in the best possible condition; and
            (2) practical case studies to illustrate the objectives of 
        paragraph (1) and provide a real world perspective.
    (c) Health Care Professional.--In this section, the term ``health 
care professional'' means a physician, dentist, clinical psychologist, 
nurse, nurse practitioner, or physician assistant and any other person 
providing direct patient care as may be designated by the Secretary of 
Defense in regulations.

           Subtitle D--Pharmacy Benefits Program Improvements

SEC. 731. TRICARE PHARMACY PROGRAM COST-SHARE REQUIREMENTS.

    Paragraph (6) of section 1074g(a) of title 10, United States Code, 
is amended to read as follows:
    ``(6)(A) The Secretary, in regulations prescribed under subsection 
(g), may establish cost-sharing requirements (which may be established 
as a percentage or fixed dollar amount) under the pharmacy benefits 
program for generic, formulary, and nonformulary agents.
    ``(B)(i) With respect to agents available through the national 
mail-order pharmacy program, the Secretary of Defense may not establish 
requirements for cost sharing for generic and formulary agents that are 
in excess of cost sharing requirements for generic and formulary agents 
available through facilities of the uniformed services.
    ``(ii) With respect to agents available through retail pharmacies, 
the Secretary of Defense may not establish cost sharing in excess of--
            ``(I) $6 for generic agents;
            ``(II) $16 for formulary agents; and
            ``(III) $22 for nonformulary agents.
    ``(iii) The cost sharing requirements of this subparagraph shall be 
in effect during the period beginning 90 days after the date of the 
enactment of the National Defense Authorization Act for Fiscal Year 
2007 and ending on December 31, 2007.''.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements Management Certification Training Program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report 
                            requirements.
Sec. 804. Quarterly updates on implementation of acquisition reform in 
                            the Department of Defense.
Sec. 805. Establishment of defense challenge process for critical cost 
                            growth threshold breaches in major defense 
                            acquisition programs.
Sec. 806. Market research required for major defense acquisition 
                            programs before proceeding to Milestone B.

             Subtitle B--Acquisition Policy and Management

Sec. 811. Applicability of statutory executive compensation cap made 
                            prospective.
Sec. 812. Prohibition on procurement from beneficiaries of foreign 
                            subsidies.
Sec. 813. Time-certain development for Department of Defense 
                            information technology business systems.
Sec. 814. Establishment of Panel on Contracting Integrity.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 821. Extension of special temporary contract closeout authority.
Sec. 822. Limitation on contracts for the acquisition of certain 
                            services.
Sec. 823. Use of Federal supply schedules by State and local 
                            governments for goods and services for 
                            recovery from natural disasters, terrorism, 
                            or nuclear, biological, chemical, or 
                            radiological attack.
Sec. 824. Waivers to extend task order contracts for advisory and 
                            assistance services.
Sec. 825. Enhanced access for small business.
Sec. 826. Procurement goal for Hispanic-serving institutions.
Sec. 827. Prohibition on defense contractors requiring licenses or fees 
                            for use of military likenesses and 
                            designations.

      Subtitle D--United States Defense Industrial Base Provisions

Sec. 831. Protection of strategic materials critical to national 
                            security.
Sec. 832. Strategic Materials Protection Board.

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

SEC. 801. REQUIREMENTS MANAGEMENT CERTIFICATION TRAINING PROGRAM.

    (a) Training Program.--
            (1) Requirement.--The Under Secretary of Defense for 
        Acquisition, Technology, and Logistics, in consultation with 
        the Defense Acquisition University, shall develop a training 
        program to certify civilian and military personnel of the 
        Department of Defense with responsibility for generating 
        requirements for major defense acquisition programs (as defined 
        in section 2430 of title 10, United States Code).
            (2) Competency and other requirements.--The Under Secretary 
        shall establish competency requirements for the personnel 
        undergoing the training program. The Under Secretary shall 
        define the target population for such training program by 
        identifying which civilian and military personnel should have 
        responsibility for generating requirements. The Under Secretary 
        also may establish other training programs for personnel not 
        subject to chapter 87 of title 10, United States Code, and who 
        contribute significantly to other types of acquisitions by the 
        Department of Defense.
            (3) Matters covered.--At a minimum, the training program 
        shall, with respect to a major defense acquisition program--
                    (A) provide instruction on the interrelationship 
                among the requirements generation process, the budget 
                process, and the acquisition process within the 
                Department of Defense for such a program;
                    (B) stress the importance of generating 
                requirements for such a program that result in joint 
                applications to the maximum extent possible;
                    (C) provide instruction on the effects of 
                introducing new requirements for such a program--
                            (i) both before and after the commencement 
                        of system development and demonstration; and
                            (ii) during initial operational test and 
                        evaluation;
                    (D) ensure that requirements for such a program are 
                derived primarily from capability shortfalls in the 
                program identified by a commander of a combatant 
                command;
                    (E) ensure that requirements for such a program are 
                informed by a sound analysis of alternatives, by 
                realistic technical assessments based on technology 
                readiness levels, and by fiscal guidance, including 
                consultation with production engineers on the cost, 
                schedule and technical feasibility of the requirements;
                    (F) ensure that, for the introduction of any 
                changes to requirements for such a program, an 
                engineering feasibility assessment that weighs 
                technology readiness, integration, cost, and schedule 
                impacts is conducted after Milestone B approval at the 
                latest, and before Milestone B approval to the maximum 
                extent practicable;
                    (G) stress the importance of introducing 
                requirements for such a program that are 
                technologically mature, feasible, and achievable 
                without schedule risk; and
                    (H) stress the importance of stable requirements 
                for such a program to provide the baseline for 
                successful execution of the program.
            (4) Availability.--The training program shall be made 
        available on the Internet to ensure the widest dissemination 
        possible.
    (b) Applicability.--Effective on and after September 30, 2007, a 
member of the Armed Forces or an employee of the Department of Defense 
with authority to generate requirements for a major defense acquisition 
program may not continue to participate in the requirements generation 
process unless the member or employee successfully completes the 
certification training program developed under this section.

SEC. 802. ADDITIONAL REQUIREMENTS RELATING TO TECHNICAL DATA RIGHTS.

    (a) Additional Requirements Relating to Technical Data Rights .--
Section 2320 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(e) Additional Regulations.--(1) Regulations prescribed under 
subsection (a) shall ensure, at a minimum, that--
            ``(A) in the case of a major system that is developed 
        exclusively with Federal funds, in part with Federal funds and 
        in part at private expense, or exclusively at private expense, 
        rights are acquired in full by the United States to technical 
        data necessary to support competition for contracts required 
        for sustainment of the system; and
            ``(B) any contract for a major system includes price and 
        delivery options for acquiring, at any point during the life 
        cycle of the system, major elements of technical data not 
        acquired at the time of initial contract award.
    ``(2) Regulations prescribed under subsection (a) also shall 
establish a standard for acquiring rights in technical data that 
supports the purchase of data rights appropriate to minimize life cycle 
costs.
    ``(3) The Under Secretary of Defense for Acquisition, Technology, 
and Logistics shall ensure that members of the acquisition workforce 
working with any contract in an amount greater than $5,000,000 and 
involving the acquisition of rights in technical data be provided 
information and formal training sufficient to carry out the regulations 
prescribed under subsection (a) to implement this subsection.''.
    (b) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall revise 
regulations under section 2320 of title 10, United States Code, to 
implement subsection (e) of such section (as added by this section).

SEC. 803. STUDY AND REPORT ON REVISIONS TO SELECTED ACQUISITION REPORT 
              REQUIREMENTS.

    (a) Study Requirement.--The Secretary of Defense, acting through 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics in coordination with the service acquisition executives of 
each military department, shall conduct a study on revisions to 
requirements relating to Selected Acquisition Reports, as set forth in 
section 2432 of title 10, United States Code.
    (b) Matters Covered.--The study required under subsection (a) 
shall--
            (1) focus on incorporating into the Selected Acquisition 
        Report those elements of program progress that the Department 
        of Defense considers most relevant to evaluating the 
        performance and progress of major defense acquisition programs, 
        with particular reference to the cost estimates and program 
        schedule established when a major defense acquisition program 
        receives Milestone B approval; and
            (2) include any recommendations to eliminate elements of 
        the Selected Acquisition Report that the Department believes 
        are no longer needed (other than the elimination of any unit 
        cost information).
    (c)  Report.--Not later than March 1, 2007, the Secretary shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the results of the study, including such 
recommendations as the Secretary considers appropriate.

SEC. 804. QUARTERLY UPDATES ON IMPLEMENTATION OF ACQUISITION REFORM IN 
              THE DEPARTMENT OF DEFENSE.

    (a) Quarterly Updates Requirement.--Not later than 45 days after 
the date of the enactment of this Act, and on the first day of each 
calendar quarter thereafter, the Secretary of Defense shall provide an 
update to the Committees on Armed Services of the Senate and the House 
of Representatives on the implementation of plans to reform the 
acquisition system in the Department of Defense.
    (b) Matters Covered.--Each update provided under subsection (a) 
shall cover the implementation of reforms of the processes for 
acquisition, including generation of requirements, award of contracts, 
and financial management. At a minimum, the updates shall take into 
account the recommendations made by the following:
            (1) The Defense Acquisition Performance Assessment Panel.
            (2) The Defense Science Board Summer Study on 
        Transformation, issued in February 2006.
            (3) The Beyond Goldwater-Nichols Study of the Center for 
        Strategic and International Studies.
            (4) The Quadrennial Defense Review, issued February 6, 
        2006.
            (5) The Committee Defense Review of the Committee on Armed 
        Services of the House of Representatives (when available).
    (c) Recommendations.--Each report submitted under subsection (a) 
shall include such recommendations as the Secretary considers 
appropriate, and implementation plans for the recommendations.
    (d) Termination of Report Requirement.--The requirement to submit 
reports under subsection (a) shall terminate on the first day of the 
calendar quarter following the first calendar quarter in which the 
Selected Acquisition Report submitted to Congress under section 2432 of 
title 10, United States Code, does not indicate that there has been an 
increase by a percentage equal to or greater than the significant cost 
growth threshold or the critical cost growth threshold in any major 
defense acquisition program (as such thresholds are defined in section 
2433(a) of such title).

SEC. 805. ESTABLISHMENT OF DEFENSE CHALLENGE PROCESS FOR CRITICAL COST 
              GROWTH THRESHOLD BREACHES IN MAJOR DEFENSE ACQUISITION 
              PROGRAMS.

    (a) Preliminary Evaluation of Challenge Proposals for Critical Cost 
Breaches.--
            (1) Submission of challenge proposals.--Section 2359b(c)) 
        of title 10, United States Code, is amended--
                    (A) in paragraph (1), by striking ``Panel,'' and 
                all that follows through the end and inserting the 
                following: ``Panel--
            ``(A) through the unsolicited proposal process;
            ``(B) in response to a broad agency announcement; or
            ``(C) in response to a solicitation issued as a result of a 
        critical cost growth threshold breach (as defined in paragraph 
        (4)).'';
                    (B) by redesignating paragraphs (4), (5), and (6) 
                as paragraphs (5), (7), and (8), respectively;
                    (C) by inserting after paragraph (3) the following 
                new paragraph (4):
            ``(4)(A) If the program acquisition unit cost or 
        procurement unit cost of a major defense acquisition program 
        increases by a percentage equal to or greater than the critical 
        cost growth threshold for the program, as determined by the 
        Secretary concerned under section 2433(d) of this title (in 
        this section referred to as a `critical cost growth threshold 
        breach'), the Under Secretary shall issue a solicitation for 
        challenge proposals that would result in improvements in 
        affordability of the program. The solicitation shall 
        specifically identify (i) the cost and schedule variances, and 
        (ii) the design, engineering, manufacturing, or technology 
        integration issues, contributing to the breach.
            ``(B) A solicitation referred to in subparagraph (A) shall 
        be made public before the end of the 14-day period beginning on 
        the day the Selected Acquisition Report containing the 
        information described in section 2433(g) of this title is 
        required to be submitted under section 2432(f) of this title.
            ``(C) A solicitation referred to in subparagraph (A) shall 
        require any challenge proposals responding to the solicitation 
        to be submitted within 30 days after the date of issuance of 
        the solicitation.'';
                    (D) in paragraph (5) (as so redesignated) in the 
                matter preceding subparagraph (A)--
                            (i) by striking ``or submitted'' and 
                        inserting ``submitted''; and
                            (ii) by inserting after ``paragraph (2),'' 
                        the following: ``or submitted in response to a 
                        solicitation issued as a result of a critical 
                        cost growth threshold breach''; and
                    (E) by inserting after paragraph (5) (as so 
                redesignated) the following new paragraph (6):
            ``(6) A panel shall complete a preliminary evaluation of 
        challenge proposals submitted in response to a solicitation 
        issued as a result of a critical cost growth threshold breach 
        before the end of the 60-day period beginning on the day the 
        Selected Acquisition Report referred to in paragraph (4)(B) is 
        submitted to Congress and shall inform the Secretary of Defense 
        of the results of the evaluation to aid in the completion of 
        the Secretary's certification under section 2433(e)(2)(B) of 
        this title.''.
    (b) Action Upon Favorable Full Review and Evaluation of Challenge 
Proposals for Critical Cost Breaches.--Section 2359b(e) of such title 
is amended by adding at the end the following new paragraph:
            ``(3) In the case of a challenge proposal referred to in 
        paragraph (1) that was submitted in response to a solicitation 
        issued as a result of a critical cost growth threshold breach, 
        the costs of the proposal shall be borne by the major defense 
        acquisition program with respect to which the breach 
        occurred.''.
    (c) Action Upon Unfavorable Full Review and Evaluation of Challenge 
Proposals for Critical Cost Breaches.--Section 2359b of such title, as 
amended by section 213, is further amended--
            (1) by redesignating subsections (f), (g), (h), and (i) as 
        subsections (g), (h), (i), and (j), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Action Upon Unfavorable Full Review and Evaluation of 
Critical Cost Breach Solicitations.--In the case of a challenge 
proposal that was submitted in response to a solicitation issued as a 
result of a critical cost growth threshold breach and that is not 
determined under a full review and evaluation to satisfy each of the 
criteria specified in subsection (c)(5), the following provisions 
apply:
            ``(1) The office carrying out the full review and 
        evaluation shall provide to the Panel that conducted the 
        preliminary evaluation a statement containing a summary of the 
        rationale for the unfavorable evaluation.
            ``(2) If the Panel disagrees with the rationale provided 
        under paragraph (1), the Panel may return the challenge 
        proposal to the office for further consideration.
            ``(3) The full review and evaluation, including a further 
        consideration of the review and evaluation under paragraph (2), 
        shall be completed not later than the expiration of the 60-day 
        period beginning on the date of completion of the preliminary 
        evaluation of the proposal by a Panel under subsection (c).
            ``(4) After a full review and evaluation of all such 
        challenge proposals submitted for such review and evaluation 
        are completed, including further consideration under paragraph 
        (2), the Under Secretary shall submit to the congressional 
        defense committees a report containing a list of each challenge 
        proposal with an unfavorable evaluation, including an 
        identification of each such challenge proposal returned to an 
        office for further consideration, and a detailed rationale for 
        the unfavorable evaluations upon both initial and further 
        consideration (if any). Such report shall be submitted not 
        later than the expiration of the 60-day period beginning on the 
        date of completion of the last preliminary evaluation of the 
        proposals by a Panel under subsection (c).''.
    (d) Amendments to Unit Cost Reports Provisions.--
            (1) Additional assessment required upon breach of critical 
        cost growth threshold.--Section 2433(e)(2)(A) of title 10, 
        United States Code, is amended--
                    (A) by striking ``and'' at the end of clause (ii);
                    (B) by inserting ``and'' at the end of clause 
                (iii); and
                    (C) by adding at the end the following new clause:
                    ``(iv) the availability of components, subsystems, 
                or systems that may result in near-term improvements in 
                affordability of the program, as identified under the 
                Defense Acquisition Challenge Program through a 
                solicitation issued pursuant to section 2359b(c)(1)(C) 
                of this title;''.
            (2) Additional certification required upon breach of 
        critical cost growth threshold.--Section 2433(e)(2)(B) of such 
        title is amended--
                    (A) by redesignating clauses (iii) and (iv) as 
                clauses (iv) and (v), respectively; and
                    (B) by inserting after clause (ii) the following 
                new clause (iii):
                    ``(iii) the Panel conducting preliminary evaluation 
                of challenge proposals submitted in response to the 
                solicitation issued under the Defense Acquisition 
                Challenge Program pursuant to section 2359b(c)(1)(C) of 
                this title has identified no promising proposals 
                meriting full review and evaluation;''.
            (3) Additional information in certain report required.--
        Section 2433(g)(1)(P)(vi) of such title is amended by inserting 
        after ``of the program'' the following: ``and design, 
        engineering, manufacturing, or technology integration issues''.
    (e) Additional Conforming Amendments.--Section 2359b of such title 
is further amended--
            (1) in subsection (c)(8), as redesignated by subsection 
        (a), by striking ``paragraph (4)'' and inserting ``paragraph 
        (5)'';
            (2) in subsection (d)(1), by striking ``subsection (c)(6)'' 
        and inserting ``subsection (c)(8)'';
            (3) in subsection (d)(2), by striking ``subsection (c)(4)'' 
        and inserting ``subsection (c)(5)''; and
            (4) in subsection (e)(1), by striking ``subsection (c)(4)'' 
        and inserting ``subsection (c)(5)''.

SEC. 806. MARKET RESEARCH REQUIRED FOR MAJOR DEFENSE ACQUISITION 
              PROGRAMS BEFORE PROCEEDING TO MILESTONE B.

     Section 2366a(a) of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (1) through (7) as 
        paragraphs (2) through (8), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph (1):
            ``(1) market research has been conducted prior to 
        technology development to reduce duplication of existing 
        technology and products;''.

             Subtitle B--Acquisition Policy and Management

SEC. 811. APPLICABILITY OF STATUTORY EXECUTIVE COMPENSATION CAP MADE 
              PROSPECTIVE.

    (a) Prospective Applicability of Executive Compensation Cap.--
Section 808(e)(2) of Public Law 105-85 (41 U.S.C. 435 note; 111 Stat. 
1838) is amended by striking ``before, on,'' and inserting ``on''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply as if included in Public Law 105-85 as enacted.

SEC. 812. PROHIBITION ON PROCUREMENT FROM BENEFICIARIES OF FOREIGN 
              SUBSIDIES.

    (a) Prohibition.--The Secretary of Defense may not enter into a 
contract for the procurement of goods or services from any foreign 
person to which the government of a foreign country that is a member of 
the World Trade Organization has provided a subsidy if--
            (1) the United States has requested consultations with that 
        foreign country under the Agreement on Subsidies and 
        Countervailing Measures on the basis that the subsidy is a 
        prohibited subsidy under that Agreement; and
            (2) either--
                    (A) the issue before the World Trade Organization 
                has not been resolved; or
                    (B) the World Trade Organization has ruled that the 
                subsidy provided by the foreign country is a prohibited 
                subsidy under the Agreement on Subsidies and 
                Countervailing Measures.
    (b) Joint Ventures.--The prohibition under subsection (a) with 
respect to a foreign person also applies to any joint venture, 
cooperative organization, partnership, or contracting team of which 
that foreign person is a member.
    (c) Subcontracts and Task Orders.--The prohibition under subsection 
(a) with respect to a contract also applies to any subcontracts at any 
tier entered into under the contract and any task orders at any tier 
issued under the contract.
    (d) Definitions.--In this section:
            (1) The term ``Agreement on Subsidies and Countervailing 
        Measures'' means the agreement described in section 101(d)(12) 
        of the Uruguay Round Agreements Act (19 U.S.C. 3501(d)(12)).
            (2) The term ``foreign person'' means--
                    (A) an individual who is not a United States person 
                or an alien lawfully admitted for permanent residence 
                into the United States; or
                    (B) a corporation, partnership, or other 
                nongovernmental entity which is not a United States 
                person.
            (3) The term ``United States person'' means--
                    (A) a natural person who is a citizen of the United 
                States or who owes permanent allegiance to the United 
                States; and
                    (B) a corporation or other legal entity which is 
                organized under the laws of the United States, any 
                State or territory thereof, or the District of 
                Columbia, if natural persons described in subparagraph 
                (A) own, directly or indirectly, more than 50 percent 
                of the outstanding capital stock or other beneficial 
                interest in such legal entity.
    (e) Applicability.--
            (1) Programs with milestone b approval not covered.--The 
        prohibition under subsection (a) shall not apply to any 
        contract under a major defense acquisition program that has 
        received Milestone B approval as of the date of the enactment 
        of this Act.
            (2) Definitions.--In this subsection:
                    (A) The term ``major defense acquisition program'' 
                means a Department of Defense acquisition program that 
                is a major defense acquisition program for purposes of 
                section 2430 of title 10, United States Code.
                    (B) The term ``Milestone B approval'' has the 
                meaning provided that term in section 2366(e)(7) of 
                such title.

SEC. 813. TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT OF DEFENSE 
              INFORMATION TECHNOLOGY BUSINESS SYSTEMS.

    (a) Milestone a Limitation.--The Department of Defense executive or 
entity that is the milestone decision authority for an information 
system described in subsection (c) may not provide Milestone A approval 
for the system unless, as part of the decision process for such 
approval, that authority determines that the system will achieve 
initial operational capability within five years of such approval.
    (b) Initial Operational Capability Limitation.--Funds appropriated 
or otherwise available to the Department of Defense may not be 
obligated or expended for an information system described in subsection 
(c) if the system, having received Milestone A approval, has not 
achieved initial operational capability within five years of the date 
of such approval.
    (c) Covered Systems.--An information system described in this 
subsection is any Department of Defense information technology business 
system that is not a national security system, as defined in 3542(b)(2) 
of title 44, United States Code.
    (d) Applicability to Existing Programs.--
            (1) Waiver authority for existing programs in 
        development.--The Secretary of Defense may waive the 
        applicability of subsection (b) in the case of a program 
        described in subsection (c) that as of the date of the 
        enactment of this Act has received Milestone A approval but has 
        not as of such date achieved initial operational capability.
            (2) Inapplicability to programs through development.--This 
        section does not apply to an information system that achieved 
        initial operational capability before the date of the enactment 
        of this Act.
    (e) Definitions.--In this section:
            (1) Milestone decision authority.--The term ``milestone 
        decision authority'' has the meaning given that term in 
        Department of Defense Instruction 5000.2, dated May 12, 2003.
            (2) Milestone a.--The term ``Milestone A'' has the meaning 
        given that term in Department of Defense Instruction 5000.2, 
        dated May 12, 2003.

SEC. 814. ESTABLISHMENT OF PANEL ON CONTRACTING INTEGRITY.

    (a) Establishment.--
            (1) In general.--The Secretary of Defense shall establish a 
        panel to be known as the ``Panel on Contracting Integrity''.
            (2) Composition.--The panel shall be composed of the 
        following:
                    (A) The Deputy Secretary of Defense, who shall be 
                the chairman of the panel.
                    (B) The service acquisition executive of each 
                military department.
                    (C) The Inspector General of the Department of 
                Defense.
                    (D) The Director of the Defense Logistics Agency.
                    (E) The Director of the Defense Contract Management 
                Agency.
                    (F) The Director of the Defense Contract Audit 
                Agency.
                    (G) Such other members as determined appropriate by 
                the Secretary of Defense.
    (b) Duties.--In addition to other matters assigned to it by the 
Secretary of Defense, the panel shall--
            (1) conduct reviews of progress made by the Department of 
        Defense to eliminate areas of vulnerability of the defense 
        contracting system that allow fraud, waste, and abuse to occur;
            (2) review the report by the Comptroller General required 
        by section 841 of the National Defense Authorization Act for 
        Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3389), relating 
        to areas of vulnerability of Department of Defense contracts to 
        fraud, waste, and abuse; and
            (3) recommend changes in law, regulations, and policy that 
        it determines necessary to eliminate such areas of 
        vulnerability.
    (c) Meetings.--The panel shall meet as determined necessary by the 
Secretary of Defense but not less often than once every six months.
    (d) Report.--
            (1) Requirement.--The panel shall prepare and submit to the 
        congressional defense committees an annual report on its 
        activities. The report shall contain a summary of its findings 
        and recommendations for the year covered by the report.
            (2) First report.--The first report under this subsection 
        shall be submitted not later than 180 days after the date of 
        the enactment of this Act and shall contain an examination of 
        the current structure in the Department of Defense for 
        personnel accountability relating to the contracting system and 
        recommendations for any changes needed to the system of 
        administrative safeguards and disciplinary actions to ensure 
        accountability at the appropriate level for any violations of 
        appropriate standards of behavior in contracting.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

SEC. 821. EXTENSION OF SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

    Section 804 of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1541) is amended in subsection 
(d) by striking ``September 30, 2006'' and inserting ``September 30, 
2007''.

SEC. 822. LIMITATION ON CONTRACTS FOR THE ACQUISITION OF CERTAIN 
              SERVICES.

    (a) Limitation.--Except as provided in subsection (b), the 
Secretary of Defense may not enter into a contract for covered services 
if the amount of the contract--
            (1) exceeds 75 percent of the estimated value of any asset 
        required for the provision of services under the contract, as 
        of the date on which contract performance begins; or
            (2) exceeds $150,000,000 in payments over the life of the 
        contract assuming all options to extend the contract are 
        exercised.
    (b) Waiver.--The Secretary of Defense may waive subsection (a) with 
respect to a contract for covered services if the Secretary--
            (1) determines that a waiver is necessary for national 
        security purposes; and
            (2) provides to the congressional defense committees an 
        economic analysis as described in subsection (c) at least 30 
        days before the waiver takes effect.
    (c) Economic Analysis.--The economic analysis provided under 
subsection (b) shall include, at a minimum, the following:
            (1) A clear explanation of the need for the contract for 
        covered services.
            (2) An examination of at least two alternatives for 
        fulfilling the requirements that the contract is meant to 
        fulfill, including the following with respect to each 
        alternative:
                    (A) A rationale for including the alternative.
                    (B) A cost estimate of the alternative and an 
                analysis of the quality of each cost estimate.
                    (C) A discussion of the benefits to be realized 
                from the alternative.
                    (D) A best value determination of each alternative 
                and a detailed explanation of the life-cycle cost 
                calculations used in the determination.
    (d) Covered Services.--The limitation in subsection (a) applies to 
any contract for the following types of services:
            (1) Operation, maintenance, or support of facilities or 
        installations, or construction of facilities needed for 
        performing the contract.
            (2) Maintenance or modification of aircraft, ships, 
        vehicles, or other highly complex military equipment, or the 
        provision of aircraft, ships, vehicles, or other highly complex 
        military equipment needed for performing the contract.
            (3) Specialized training necessitating high quality 
        instructor skills (for example, pilot and air crew members; 
        foreign language training).
            (4) Base services (for example, ground maintenance, in-
        plane refueling; bus transportation; refuse collection and 
        disposal).

SEC. 823. USE OF FEDERAL SUPPLY SCHEDULES BY STATE AND LOCAL 
              GOVERNMENTS FOR GOODS AND SERVICES FOR RECOVERY FROM 
              NATURAL DISASTERS, TERRORISM, OR NUCLEAR, BIOLOGICAL, 
              CHEMICAL, OR RADIOLOGICAL ATTACK.

    (a) Authority to Use Supply Schedules for Certain Goods and 
Services.--Section 502 of title 40, United States Code, is amended by 
adding at the end the following new subsection:
    ``(d) Use of Supply Schedules for Certain Goods and Services.--
            ``(1) In general.--The Administrator may provide for the 
        use by State or local governments of Federal supply schedules 
        of the General Services Administration for goods or services 
        that are to be used to facilitate recovery from a major 
        disaster declared by the President under the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
        seq.) or to facilitate recovery from terrorism or nuclear, 
        biological, chemical, or radiological attack.
            ``(2) Determination by secretary of homeland security.--The 
        Secretary of Homeland Security shall determine which goods and 
        services qualify as goods and services described in paragraph 
        (1) before the Administrator provides for the use of the 
        Federal supply schedule relating to such goods and services.
            ``(3) Voluntary use.--In the case of the use by a State or 
        local government of a Federal supply schedule pursuant to 
        paragraph (1), participation by a firm that sells to the 
        Federal Government through the supply schedule shall be 
        voluntary with respect to a sale to the State or local 
        government through such supply schedule.
            ``(4) Definitions.--The definitions in subsection (c)(3) 
        shall apply for purposes of this subsection.''.
    (b) Procedures.--Not later than 30 days after the date of the 
enactment of this Act, the Administrator of General Services shall 
establish procedures to implement section 502(d) of title 40, United 
States Code (as added by subsection (a)).

SEC. 824. WAIVERS TO EXTEND TASK ORDER CONTRACTS FOR ADVISORY AND 
              ASSISTANCE SERVICES.

    (a) Defense Contracts.--Section 2304b(b) of title 10, United States 
Code, is amended--
            (1) by inserting ``(1)'' before ``The period'';
            (2) by inserting before the period the following: ``or a 
        waiver is issued under paragraph (2)''; and
            (3) by adding at the end the following new paragraph:
            ``(2) The head of an agency may issue a waiver to extend a 
        task order contract entered into under this section for a 
        period not exceeding 10 years, through five one-year options, 
        if the head of the agency determines in writing--
                    ``(A) that the contract provides engineering or 
                technical services of such a unique and substantial 
                technical nature that award of a new contract would be 
                harmful to the continuity of the program for which the 
                services are performed;
                    ``(B) that award of a new contract would create a 
                large disruption in services provided to the Department 
                of Defense; and
                    ``(C) the Department of Defense would endure 
                program risk during critical program stages due to loss 
                of program corporate knowledge of ongoing program 
                activities.''.
    (b) Civilian Agency Contracts.--Section 303I(b) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253i) is 
amended--
            (1) by inserting ``(1)'' before ``The period'';
            (2) by inserting before the period the following: ``or a 
        waiver is issued under paragraph (2)''; and
            (3) by adding at the end the following new paragraph:
    ``(2) An executive agency may issue a waiver to extend a task order 
contract entered into under this section for a period not exceeding 10 
years, through five one-year options, if the head of the agency 
determines in writing--
            ``(A) that the contract provides engineering or technical 
        services of such a unique and substantial technical nature that 
        award of a new contract would be harmful to the continuity of 
        the program for which the services are performed;
            ``(B) that award of a new contract would create a large 
        disruption in services provided to the executive agency; and
            ``(C) the executive agency would endure program risk during 
        critical program stages due to loss of program corporate 
        knowledge of ongoing program activities.''.
    (c) Report.--Not later than April 1, 2007, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on advisory and assistance services. 
The report shall include the following information:
            (1) The methods used by the Department of Defense to 
        identify a contract as an advisory and assistance services 
        contract, as defined in section 2304b of title 10, United 
        States Code.
            (2) The number of such contracts awarded by the Department 
        during the five-year period preceding the date of enactment of 
        this Act.
            (3) The average annual expenditures by the Department for 
        such contracts.
            (4) The average length of such contracts.
            (5) The number of such contracts recompeted and awarded to 
        the previous award winner.
            (6) The number of contractors performing such contracts 
        that previously qualified as a small business but no longer 
        qualify as a small business for a recompetition.
            (7) The number of such contracts required for a period of 
        greater than five years and a justification of why those 
        services are required for greater than five years, including 
        the rationale for not performing the services inside the 
        Department of Defense.
            (8) The percentage of such contracts awarded by the 
        Department during the five-year period preceding the date of 
        the enactment of this Act for assistance in the introduction 
        and transfer of engineering and technical knowledge for fielded 
        systems, equipment, and components.
            (9) The actions taken by the Department to prevent 
        organizational conflicts of interest in the use of such 
        contracts.
    (d) Prohibition on Use of Authority by Department of Defense If 
Report Not Submitted.--The head of an agency may not issue a waiver 
under 2304b(b)(2) of title 10, United States Code, as added by 
subsection (a), if the report required by subsection (c) is not 
submitted by the date set forth in that subsection.

SEC. 825. ENHANCED ACCESS FOR SMALL BUSINESS.

     Section 9(a) of the Contract Disputes Act of 1978 (41 U.S.C. 608) 
is amended by striking the period at the end of the first sentence and 
inserting the following: ``or, in the case of a small business concern 
(as defined in the Small Business Act and regulations under that Act), 
$150,000 or less.''.

SEC. 826. PROCUREMENT GOAL FOR HISPANIC-SERVING INSTITUTIONS.

    Section 2323 of title 10, United States Code, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) Hispanic-serving institutions, as designated 
                by the Department of Education.'';
            (2) in subsection (a)(2)--
                    (A) by inserting after ``historically Black 
                colleges and universities'' the following: ``, 
                Hispanic-serving institutions,''; and
                    (B) by inserting after ``such colleges and 
                universities'' the following: ``and institutions'';
            (3) in subsection (c)(1), by inserting after ``historically 
        Black colleges and universities'' the following: ``, Hispanic-
        serving institutions,''; and
            (4) in subsection (c)(3), by inserting after ``historically 
        Black colleges and universities'' the following: ``, to 
        Hispanic-serving institutions,''.

SEC. 827. PROHIBITION ON DEFENSE CONTRACTORS REQUIRING LICENSES OR FEES 
              FOR USE OF MILITARY LIKENESSES AND DESIGNATIONS.

    The Secretary of Defense shall require that any contract entered 
into or renewed by the Department of Defense include a provision 
prohibiting the contractor from requiring toy and hobby manufacturers, 
distributors, or merchants to obtain licenses from or pay fees to the 
contractor for the use of military likenesses or designations on items 
provided under the contract.

      Subtitle D--United States Defense Industrial Base Provisions

SEC. 831. PROTECTION OF STRATEGIC MATERIALS CRITICAL TO NATIONAL 
              SECURITY.

    (a) Requirement to Buy From American Sources.--
            (1) In general.--Chapter 148 of title 10, United States 
        Code, is amended by inserting after section 2533a the following 
        new section:
``Sec. 2533b. Requirement to buy strategic materials critical to 
              national security 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 reprocessed, reused, or produced in 
the United States.
    ``(b) Covered Items.--An item referred to in subsection (a) is any 
of the following:
            ``(1) A specialty metal.
            ``(2) An item critical to national security, as determined 
        by the Strategic Materials Protection Board.
    ``(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 item described in subsection (b) cannot be 
procured as and when needed.
    ``(d) Exception for Certain Procurements.--Subsection (a) does not 
apply to the following:
            ``(1) Procurements outside the United States in support of 
        combat operations or in support of contingency operations.
            ``(2) Procurements by vessels in foreign waters for use of 
        the item.
            ``(3) Procurements for which the use of procedures other 
        than competitive procedures has been approved on the basis of 
        section 2304(c)(2) of this title, relating to unusual and 
        compelling urgency of need.
    ``(e) Exception Relating to Agreements With Foreign Governments.--
Subsection (a) does not preclude the procurement of an item described 
in subsection (b) if--
            ``(1) the 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;
            ``(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; and
            ``(3) the item is grown, produced, or manufactured in the 
        United States or in the country from which it is procured.
    ``(f) Exception for Commissaries, Exchanges, and Other 
Nonappropriated Fund Instrumentalities.--Subsection (a) does not apply 
to items purchased for resale purposes in commissaries, exchanges, and 
nonappropriated fund instrumentalities operated by the Department of 
Defense.
    ``(g) Exception for Small Purchases.--Subsection (a) does not apply 
to procurements in amounts not greater than the simplified acquisition 
threshold referred to in section 2304(g) of this title.
    ``(h) Applicability to Procurements of Commercial Items.--This 
section applies to procurements of commercial items notwithstanding 
section 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 
430).
    ``(i) Applicability to Subcontracts.--This section applies to 
subcontracts at any tier under a prime contract.
    ``(j) Applicability to Noncompliant Components.--A procurement 
subject to subsection (a) shall not be considered to be in compliance 
with subsection (a) if noncompliant components are delivered under the 
procurement without charge to the Federal Government. In this 
subsection, the term `noncompliant component' means a component that is 
not reprocessed, reused, or produced in the United States.
    ``(k) Specialty Metal Defined.--In this section, the term 
`specialty metal' means any of the following:
            ``(1) Steel--
                    ``(A) with a maximum alloy content exceeding one or 
                more of the following limits: manganese, 1.65 percent; 
                silicon, 0.60 percent; or copper, 0.60 percent; or
                    ``(B) containing more than 0.25 percent of any of 
                the following elements: aluminum, chromium, cobalt, 
                columbium, molybdenum, nickel, titanium, tungsten, or 
                vanadium.
            ``(2) Metal alloys consisting of nickel, iron-nickel, and 
        cobalt base alloys containing a total of other alloying metals 
        (except iron) in excess of 10 percent.
            ``(3) Titanium and titanium alloys.
            ``(4) Zirconium and zirconium base alloys.
            ``(5) A metal determined by the Strategic Materials 
        Protection Board (established under section 187 of this title) 
        to be a specialty metal critical to national security.
    ``(l) Additional Definitions.--In this section:
            ``(1) The term `United States' includes possessions of the 
        United States.
            ``(2) The term `micropurchase' means a procurement in an 
        amount not greater than the micropurchase threshold, as defined 
        by section 32(f) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 428).
            ``(3) The term `component' has the meaning provided in 
        section 4 of such Act (41 U.S.C. 403).''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``2533b. Requirement to buy strategic materials critical to national 
                            security from American sources; 
                            exceptions.''.
            (3) Conforming amendments.--Section 2533a of title 10, 
        United States Code, is amended--
                    (A) by striking paragraph (2) of subsection (b);
                    (B) in subsection (c), by striking ``or specialty 
                metals (including stainless steel flatware)''; and
                    (C) in subsection (e)--
                            (i) by striking ``Specialty Metals And'' in 
                        the heading; and
                            (ii) by striking ``specialty metals or''.
            (4) Effective dates.--
                    (A) Section 2533b of title 10, United States Code, 
                as added by paragraph (1), shall apply with respect to 
                contracts entered into after the date occurring 30 days 
                after the date of the enactment of this Act.
                    (B) The amendments made by paragraph (3) shall take 
                effect on the date occurring 30 days after the date of 
                the enactment of this Act.
    (b) One-Time Inadvertent Micropurchase Waiver of Specialty Metals 
Domestic Source Requirement.--
            (1) Notice of noncompliance.--In the case of a contract 
        with the Department of Defense in effect before the date of the 
        enactment of this Act with respect to which the contracting 
        officer for the contract determines the contractor is not in 
        compliance with section 2533a of title 10, United States Code 
        (as in effect before such date of enactment) with respect to 
        specialty metals, the contracting officer shall--
                    (A) post a notice on FedBizOpps.gov that the 
                contractor is not in compliance with such section;
                    (B) notify the contractor (and any subcontractor 
                under the prime contract that is also noncompliant) in 
                writing that the contractor (or subcontractor) is not 
                in compliance with such section; and
                    (C) require the contractor and any subcontractor 
                notified under subparagraph (B) to submit to the 
                contracting officer a compliance plan for becoming 
                compliant with such section.
            (2) Waiver authority.--In the case of a contract described 
        in paragraph (1), the contracting officer for the contract may 
        waive the applicability to the contract of section 2533a of 
        title 10, United States Code (as in effect before such date of 
        enactment) with respect to specialty metals if--
                    (A) the procurement is a micropurchase of 
                components (whether in a prime contract or a 
                subcontract under such contract) and the aggregate 
                value of all such procurements in the prime contract 
                and all the subcontracts under such contract does not 
                exceed 1 percent of the amount of the contract or 
                $100,000, whichever is less;
                    (B) the contracting officer determines in writing 
                that the contractor was and continues to be 
                inadvertently not in compliance with such section with 
                respect to such metals and the contractor has submitted 
                a compliance plan under paragraph (1)(C); and
                    (C) the Secretary of the military department 
                concerned approves the waiver.
            (3) Notice.--Not later than 15 days after a contracting 
        officer makes a determination under paragraph (2)(B) with 
        respect to a contract, the contracting officer shall post a 
        notice on FedBizOpps.gov that a waiver has been granted for the 
        contract under this subsection. The notice shall include 
        information about the applicability of section 1001 of title 
        18, United States Code (relating to criminal penalties for 
        false statements).
            (4) Challenge period.--
                    (A) During the 15-day period beginning on the date 
                of the posting of a notice of a waiver under paragraph 
                (3) for a contract (in this subsection referred to as 
                the ``challenge period''), the contracting officer 
                shall accept challenges submitted with respect to the 
                contract.
                    (B) For purposes of this paragraph, a challenge, 
                with respect to a contract for which a waiver has been 
                granted under this subsection, is a submission of 
                information by an entity (referred to as a 
                ``challenger'' in this section) stating that the 
                challenger can provide the specialty metals needed for 
                performance of the contract and can certify in writing 
                that the metals are reprocessed, reused, or produced in 
                the United States. The information shall be submitted 
                to the contracting officer in such form and manner as 
                may be prescribed by the Under Secretary of Defense for 
                Acquisition, Technology, and Logistics.
            (5) Determination by contracting officer.--During the 15-
        day period beginning on the day after the end of the challenge 
        period with respect to a contract, if any challenge has been 
        submitted to the contracting officer, the contracting officer 
        shall make a determination regarding whether the challenger can 
        provide the specialty metals for the components concerned in 
        sufficient quantity, of satisfactory quality, within a 
        reasonable time, and at a cost that is not unreasonable.
            (6) Rescission of waiver.--(A) Except as provided in 
        subparagraph (B), if the determination under paragraph (5) is 
        in the affirmative, the contracting officer shall--
                    (i) rescind the waiver granted with respect to the 
                contract under this subsection; and
                    (ii) require the contractor to comply with 
                subsection (a) by purchasing specialty metals from the 
                challenger.
            (B) If the contracting officer makes a determination in the 
        affirmative under paragraph (5) with respect to two or more 
        challengers, the contracting officer shall select or require 
        the contractor to select, in such manner as the contracting 
        officer considers appropriate, the challenger to provide 
        specialty metals under the contract.
            (7) Definitions.--In this subsection:
                    (A) The term ``micropurchase'' means a procurement 
                in an amount not greater than the micropurchase 
                threshold, as defined by section 32(f) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 428).
                    (B) The term ``component'' has the meaning provided 
                in section 4 of such Act (41 U.S.C. 403).
                    (C) The term ``FedBizOpps.gov'' means the website 
                maintained by the General Services Administration known 
                as FedBizOpps.gov (or any successor site).
            (8) Termination of waiver authority.--A contracting officer 
        may exercise the waiver authority under this subsection only 
        after the date of the enactment of this Act and before July 1, 
        2008.

SEC. 832. STRATEGIC MATERIALS PROTECTION BOARD.

    (a) In General.--Chapter 7 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 187. Strategic Materials Protection Board
    ``(a) Establishment.--(1) The Secretary of Defense shall establish 
a Strategic Materials Protection Board.
    ``(2) The Board shall be composed of the following:
            ``(A) The Secretary of Defense, who shall be the chairman 
        of the Board.
            ``(B) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
            ``(C) The Under Secretary of Defense for Intelligence.
            ``(D) The Secretary of the Army.
            ``(E) The Secretary of the Navy.
            ``(F) The Secretary of the Air Force.
    ``(b) Duties.--In addition to other matters assigned to it by the 
Secretary of Defense, the Board shall--
            ``(1) determine the need to provide a long term domestic 
        supply of items designated as critical to national security to 
        ensure that national defense needs are met;
            ``(2) analyze the risk associated with each item designated 
        as critical to national security and the affect on national 
        defense that the nonavailability of such item from a domestic 
        source would have;
            ``(3) recommend a strategy to the President to ensure the 
        domestic availability of items designated as critical to 
        national security;
            ``(4) recommend such other strategies to the President as 
        the Board considers appropriate to strengthen the industrial 
        base with respect to items critical to national security; and
            ``(5) publish, not less frequently than once every two 
        years, in the Federal Register a list of items determined to be 
        critical to national security, including a list of specialty 
        metals determined to be critical to national security for 
        purposes of section 2533b of this title (and referred to in 
        section 2533b(l)((1)(5) of such title).
    ``(c) Meetings.--The Board shall meet as determined necessary by 
the Secretary of Defense but not less frequently than once every two 
years to--
            ``(1) determine and publish a list of items critical to 
        national security as described in subsection (b)(5); and
            ``(2) review items previously determined by the Board to be 
        critical to national security, including specialty metals 
        critical to national security for purposes of section 2533b of 
        this title, to determine the appropriateness of their 
        continuing classification as critical to national security.
    ``(d) Reports.--After each meeting of the Board, the Board shall 
prepare and submit to Congress a report containing the results of the 
meeting and such recommendations as the Board determines appropriate.
    ``(e) Removal of Items From List.--The Board may not remove from 
the list referred to in subsection (b)(5) an item previously determined 
to be critical to national security by the Board until a period of 30 
days expires after the Board submits to the congressional defense 
committees a written notification of the removal.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``187. Strategic Materials Protection Board.''.
    (c) First Meeting of Board.--The first meeting of the Strategic 
Materials Protection Board, established by section 187 of title 10, 
United States Code (as added by paragraph (1)) shall be not later than 
180 days after the date of the enactment of this Act.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Standardization of statutory references to ``national 
                            security system'' within laws applicable to 
                            Department of Defense.
Sec. 902. Correction of reference to predecessor of Defense Information 
                            Systems Agency.
Sec. 903. Addition to membership of specified council.
Sec. 904. Consolidation and standardization of authorities relating to 
                            Department of Defense Regional Centers for 
                            Security Studies.
Sec. 905. Redesignation of the Department of the Navy as the Department 
                            of the Navy and Marine Corps.

                      Subtitle B--Space Activities

Sec. 911. Designation of successor organizations for the disestablished 
                            Interagency Global Positioning Executive 
                            Board.
Sec. 912. Extension of authority for pilot program for provision of 
                            space surveillance network services to non-
                            United States Government entities.
Sec. 913. Operationally Responsive Space.

             Subtitle C--Chemical Demilitarization Program

Sec. 921. Transfer to Secretary of the Army of responsibility for 
                            Assembled Chemical Weapons Alternatives 
                            Program.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
                            site versus on-site treatment and disposal 
                            of hydrolysate derived from neutralization 
                            of VX nerve gas at Newport Chemical Depot, 
                            Indiana.
Sec. 923. Sense of Congress regarding the safe and expeditious disposal 
                            of chemical weapons.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Repeal of termination of authority of Secretary of Defense to 
                            engage in commercial activities as security 
                            for intelligence collection activities 
                            abroad.

              Subtitle A--Department of Defense Management

SEC. 901. STANDARDIZATION OF STATUTORY REFERENCES TO ``NATIONAL 
              SECURITY SYSTEM'' WITHIN LAWS APPLICABLE TO DEPARTMENT OF 
              DEFENSE.

    (a) Defense Business Systems.--Section 2222(j)(6) of title 10, 
United States Code, is amended by striking ``in section 2315 of this 
title'' and inserting ``in section 3542(b)(2) of title 44''.
    (b) Chief Information Officer Responsibilities.--Section 2223(c)(3) 
of such title is amended by striking ``section 11103 of title 40'' and 
inserting ``section 3542(b)(2) of title 44''.
    (c) Procurement of Automatic Data Processing Equipment and 
Services.--The text of section 2315 of such title is amended to read as 
follows:
    ``For purposes of subtitle III of title 40, the term `national 
security system', with respect to a telecommunications and information 
system operated by the Department of Defense, has the meaning given 
that term by section 3542(b)(2) of title 44.''.

SEC. 902. CORRECTION OF REFERENCE TO PREDECESSOR OF DEFENSE INFORMATION 
              SYSTEMS AGENCY.

    Paragraph (1) of section 193(f) of title 10, United States Code, is 
amended to read as follows:
            ``(1) The Defense Information Systems Agency.''.

SEC. 903. ADDITION TO MEMBERSHIP OF SPECIFIED COUNCIL.

    Section 179(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(5) The commander of the United States Strategic 
        Command.''.

SEC. 904. CONSOLIDATION AND STANDARDIZATION OF AUTHORITIES RELATING TO 
              DEPARTMENT OF DEFENSE REGIONAL CENTERS FOR SECURITY 
              STUDIES.

    (a) Basic Authorities for Regional Centers.--
            (1) In general.--Section 184 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 184. Regional Centers for Security Studies
    ``(a) In General.--The Secretary of Defense shall administer the 
Department of Defense Regional Centers for Security Studies in 
accordance with this section as international venues for bilateral and 
multilateral research, communication, and exchange of ideas involving 
military and civilian participants.
    ``(b) Regional Centers Specified.--(1) A Department of Defense 
Regional Center for Security Studies is a Department of Defense 
institution that--
            ``(A) is operated, and designated as such, by the Secretary 
        of Defense for the study of security issues relating to a 
        specified geographic region of the world; and
            ``(B) serves as a forum for bilateral and multilateral 
        research, communication, and exchange of ideas involving 
        military and civilian participants.
    ``(2) The Department of Defense Regional Centers for Security 
Studies are the following:
            ``(A) The George C. Marshall European Center for Security 
        Studies, established in 1993 and located in Garmisch-
        Partenkirchen, Germany.
            ``(B) The Asia-Pacific Center for Security Studies, 
        established in 1995 and located in Honolulu, Hawaii.
            ``(C) The Center for Hemispheric Defense Studies, 
        established in 1997 and located in Washington, D.C.
            ``(D) The Africa Center for Strategic Studies, established 
        in 1999 and located in Washington, D.C.
            ``(E) The Near East South Asia Center for Strategic 
        Studies, established in 2000 and located in Washington, D.C.
    ``(3) No institution or element of the Department of Defense may be 
designated as a Department of Defense Regional Center for Security 
Studies for purposes of this section, other than the institutions 
specified in paragraph (2), except as specifically provided by law 
after the date of the enactment of this section.
    ``(c) Regulations.--The administration of the Regional Centers 
under this section shall be carried out under regulations prescribed by 
the Secretary.
    ``(d) Participation.--Participants in activities of the Regional 
Centers may include United States military and civilian personnel, 
governmental and nongovernmental personnel, and foreign military and 
civilian, governmental and nongovernmental personnel.
    ``(e) Employment and Compensation of Faculty.--At each Regional 
Center, the Secretary may, subject to appropriations--
            ``(1) employ a Director, a Deputy Director, and as many 
        civilians as professors, instructors, and lecturers as the 
        Secretary considers necessary; and
            ``(2) prescribe the compensation of such persons, in 
        accordance with Federal guidelines.
    ``(f) Payment of Costs.--(1) Participation in activities of a 
Regional Center shall be on a reimbursable basis (or by payment in 
advance), except in a case in which reimbursement is waived in 
accordance with paragraph (3).
    ``(2) For a foreign national participant, payment of costs may be 
made by the participant, the participant's own government, by a 
Department or agency of the United States other than the Department of 
Defense, or by a gift or donation on behalf of one or more Regional 
Centers accepted under section 2611 of this title on behalf of the 
participant's government.
    ``(3) The Secretary of Defense may waive reimbursement of the costs 
of activities of the Regional Centers for foreign military officers and 
foreign defense and security civilian government officials from a 
developing country if the Secretary determines that attendance of such 
personnel without reimbursement is in the national security interest of 
the United States. Costs for which reimbursement is waived pursuant to 
this paragraph shall be paid from appropriations available to the 
Regional Centers.
    ``(4) Funds accepted for the payment of costs shall be credited to 
the appropriation then currently available to the Department of Defense 
for the Regional Center that incurred the costs. Funds so credited 
shall be merged with the appropriation to which credited and shall be 
available to that Regional Center for the same purposes and same period 
as the appropriation with which merged.
    ``(5) Funds available for the payment of personnel expenses under 
the Latin American cooperation authority set forth in section 1050 of 
this title are also available for the costs of the operation of the 
Center for Hemispheric Defense Studies.
    ``(g) Support to Other Agencies.--The Director of a Regional Center 
may enter into agreements with the Secretaries of the military 
departments, the heads of the Defense Agencies, and, with the 
concurrence of the Secretary of Defense, the heads of other Federal 
departments and agencies for the provision of services by that Regional 
Center under this section. Any such participating department and agency 
shall transfer to the Regional Center funds to pay the full costs of 
the services received.
    ``(h) Annual Report.--Not later than February 1 of each year, 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 operation of the Regional Centers for 
security studies during the preceding fiscal year. The annual report 
shall include, for each Regional Center, the following information:
            ``(1) The status and objectives of the center.
            ``(2) The budget of the center, including the costs of 
        operating the center.
            ``(3) A description of the extent of the international 
        participation in the programs of the center, including the 
        costs incurred by the United States for the participation of 
        each foreign nation.
            ``(4) A description of the foreign gifts and donations, if 
        any, accepted under section 2611 of this title.''.
            (2) Clerical amendment.--The item relating to such section 
        in the table of sections at the beginning of chapter 7 of such 
        title is amended to read as follows:

``184. Regional Centers for Security Studies.''.
    (b) Conforming Amendments.--
            (1) Employment and compensation authority for civilian 
        faculty.--Section 1595 of title 10, United States Code, is 
        amended--
                    (A) in subsection (c)--
                            (i) by striking paragraphs (3) and (5); and
                            (ii) by redesignating paragraphs (4) and 
                        (6) as paragraphs (3) and (4), respectively; 
                        and
                    (B) by striking subsection (e).
            (2) Status of center for hemispheric defense studies.--
        Section 2165 of title 10, United States Code, is amended--
                    (A) in subsection (b)--
                            (i) by striking paragraph (6); and
                            (ii) by redesignating paragraph (7) as 
                        paragraph (6); and
                    (B) by striking subsection (c).

SEC. 905. REDESIGNATION OF THE DEPARTMENT OF THE NAVY AS THE DEPARTMENT 
              OF THE NAVY AND MARINE CORPS.

    (a) Redesignation of Military Department.--The military department 
designated as the Department of the Navy is redesignated as the 
Department of the Navy and Marine Corps.
    (b) Redesignation of Secretary and Other Statutory Offices.--
            (1) Secretary.--The position of the Secretary of the Navy 
        is redesignated as the Secretary of the Navy and Marine Corps.
            (2) Other statutory offices.--The positions of the Under 
        Secretary of the Navy, the four Assistant Secretaries of the 
        Navy, and the General Counsel of the Department of the Navy are 
        redesignated as the Under Secretary of the Navy and Marine 
        Corps, the Assistant Secretaries of the Navy and Marine Corps, 
        and the General Counsel of the Department of the Navy and 
        Marine Corps, respectively.
    (c) Conforming Amendments to Title 10, United States Code.--
            (1) Definition of ``military department''.--Paragraph (8) 
        of section 101(a) of title 10, United States Code, is amended 
        to read as follows:
            ``(8) The term `military department' means the Department 
        of the Army, the Department of the Navy and Marine Corps, and 
        the Department of the Air Force.''.
            (2) Organization of department.--The text of section 5011 
        of such title is amended to read as follows: ``The Department 
        of the Navy and Marine Corps is separately organized under the 
        Secretary of the Navy and Marine Corps.''.
            (3) Position of secretary.--Section 5013(a)(1) of such 
        title is amended by striking ``There is a Secretary of the 
        Navy'' and inserting ``There is a Secretary of the Navy and 
        Marine Corps''.
            (4) Chapter headings.--
                    (A) The heading of chapter 503 of such title is 
                amended to read as follows:

       ``CHAPTER 503--DEPARTMENT OF THE NAVY AND MARINE CORPS''.

                    (B) The heading of chapter 507 of such title is 
                amended to read as follows:

  ``CHAPTER 507--COMPOSITION OF THE DEPARTMENT OF THE NAVY AND MARINE 
                                CORPS''.

            (5) Other amendments.--
                    (A) Title 10, United States Code, is amended by 
                striking ``Department of the Navy'' and ``Secretary of 
                the Navy'' each place they appear other than as 
                specified in paragraphs (1), (2), (3), and (4) 
                (including in section headings, subsection captions, 
                tables of chapters, and tables of sections) and 
                inserting ``Department of the Navy and Marine Corps'' 
                and ``Secretary of the Navy and Marine Corps'', 
                respectively, in each case with the matter inserted to 
                be in the same typeface and typestyle as the matter 
                stricken.
                    (B)(i) Sections 5013(f), 5014(b)(2), 5016(a), 
                5017(2), 5032(a), and 5042(a) of such title are amended 
                by striking ``Assistant Secretaries of the Navy'' and 
                inserting ``Assistant Secretaries of the Navy and 
                Marine Corps''.
                    (ii) The heading of section 5016 of such title, and 
                the item relating to such section in the table of 
                sections at the beginning of chapter 503 of such title, 
                are each amended by inserting ``and Marine Corps'' 
                after ``of the Navy'', with the matter inserted in each 
                case to be in the same typeface and typestyle as the 
                matter amended.
    (d) Title 37, United States Code.--Title 37, United States Code, is 
amended by striking ``Department of the Navy'' and ``Secretary of the 
Navy'' each place they appear and inserting ``Department of the Navy 
and Marine Corps'' and ``Secretary of the Navy and Marine Corps'', 
respectively.
    (e) Other References.--Any reference in any law other than in title 
10 or title 37, United States Code, or in any regulation, document, 
record, or other paper of the United States, to the Department of the 
Navy shall be considered to be a reference to the Department of the 
Navy and Marine Corps. Any such reference to an office specified in 
subsection (b)(2) shall be considered to be a reference to that office 
as redesignated by that subsection.
    (f) Effective Date.--This section and the amendments made by this 
section shall take effect on the first day of the first month beginning 
more than 60 days after the date of the enactment of this Act.

                      Subtitle B--Space Activities

SEC. 911. DESIGNATION OF SUCCESSOR ORGANIZATIONS FOR THE DISESTABLISHED 
              INTERAGENCY GLOBAL POSITIONING EXECUTIVE BOARD.

    (a) Successor Organizations.-- Section 8 of the Commercial Space 
Transportation Competitiveness Act of 2000 (10 U.S.C. 2281 note) is 
amended by striking ``by Congress'' and all that follows and inserting 
``for the functions and activities of the following organizations 
established pursuant to the national security presidential directive 
issued December 8, 2004 (and any successor organization, to the extent 
the successor organization performs the functions of the specified 
organization):
            ``(1) The interagency committee known as the National 
        Space-Based Positioning, Navigation, and Timing Executive 
        Committee.
            ``(2) The support office for the committee specified in 
        paragraph (1) known as the National Space-Based Positioning, 
        Navigation, and Timing Coordination Office.
            ``(3) The Federal advisory committee known as the National 
        Space-Based Positioning, Navigation, and Timing Advisory 
        Board.''.
    (b) Clarification.--Such section is further amended by striking 
``interagency funding'' and inserting ``multi-agency funding''.

SEC. 912. EXTENSION OF AUTHORITY FOR PILOT PROGRAM FOR PROVISION OF 
              SPACE SURVEILLANCE NETWORK SERVICES TO NON-UNITED STATES 
              GOVERNMENT ENTITIES.

    Section 2274(i) of title 10, United States Code, is amended by 
striking ``shall be conducted'' and all that follows and inserting 
``may be conducted through September 30, 2009.''.

SEC. 913. OPERATIONALLY RESPONSIVE SPACE.

    (a) Operationally Responsive Space Program Office.--
            (1) Establishment of office.--Section 2273a of title 10, 
        United States Code, is amended to read as follows:
``Sec. 2273a. Operationally Responsive Space Program Office
    ``(a) Establishment of Office.--(1) The Secretary of Defense shall 
establish within the Department of Defense an office to be known as the 
Operationally Responsive Space Program Office.
    ``(2) The head of the Office shall be the official in the 
Department of Defense who is designated by the Secretary of Defense as 
the Department of Defense Executive Agent for Space.
    ``(b) Mission.--The mission of the Office shall be to contribute to 
the development of low-cost, rapid reaction payloads, spacelift, and 
launch control capabilities in order to fulfill joint military 
operational requirements for on-demand space support or reconstitution. 
The Office shall manage the program element required under subsection 
(g).
    ``(c) Organization.--The Office shall be organized into integrated 
and co-located elements that include the following:
            ``(1) A science and technology section, which shall perform 
        the functions specified in subsection (d).
            ``(2) An operations section, which shall perform the 
        functions specified in subsection (e).
            ``(3) An acquisition section, which shall perform the 
        functions specified in subsection (f).
    ``(d) Science and Technology.--As directed by the head of the 
Office, the science and technology section shall pursue innovative 
approaches to the development of capabilities for operationally 
responsive space through basic and applied research focused on (but not 
limited to) payloads, bus, and launch equipment.
    ``(e) Operations.--As directed by the head of the Office, the 
operations section shall serve as the primary intermediary between the 
Office and the combatant commands in order to--
    ``(1) ascertain the needs of the warfighter; and
    ``(2) integrate operationally responsive space capabilities into--
            ``(A) operations plans of the combatant commands;
            ``(B) techniques, tactics, and procedures of the military 
        departments; and
            ``(C) military exercises, demonstrations, and war games.
    ``(f) Acquisition.--(1) As directed by the head of the Office, the 
acquisition section shall undertake the acquisition of systems 
necessary to integrate, sustain, and launch assets for operationally 
responsive space.
    ``(2) In the case of any system or subsystem to be acquired by the 
Office, the acquisition may be carried out only after the commander of 
the United States Strategic Command has validated the system 
requirements for the system or subsystem to be acquired.
    ``(3) The commander of the United States Strategic Command shall 
participate in the approval of any acquisition program initiated by the 
Office.
    ``(g) Required Program Element.--(1) The Secretary of Defense shall 
ensure that, within budget program elements for space programs of the 
Department of Defense--
            ``(A) that there is a separate, dedicated program element 
        for operationally responsive national security payloads and 
        buses of the Department of Defense for space satellites; and
            ``(B) that programs and activities for such payloads and 
        buses are planned, programmed, and budgeted for through that 
        program element.
    ``(2) In this subsection, the term `operationally responsive', with 
respect to a national security payload and bus for a space satellite, 
means an experimental or operational payload and bus with a weight not 
in excess of 5,000 pounds that--
            ``(A) can be developed and acquired within 18 months after 
        authority to proceed with development is granted; and
            ``(B) is responsive to requirements for capabilities at the 
        operational and tactical levels of warfare.''.
            (2) Clerical amendment.--The item relating to that section 
        in the table of sections at the beginning of chapter 135 of 
        such title is amended to read as follows:

``2273a. Operationally Responsive Space Program Office.''.
    (b) Plan for Operationally Responsive Space.--
            (1) Plan required.--Not later than 180 days after the date 
        of the enactment of this Act, the Secretary of Defense shall 
        submit to the congressional defense committees a report setting 
        forth a plan for the acquisition by the Department of Defense 
        of capabilities for operationally responsive space to support 
        the warfighter.
            (2) Elements.--The plan required by paragraph (1) shall 
        include the following:
                    (A) An identification of the capabilities required 
                by the Department to fulfill the mission of the 
                Department with respect to operationally responsive 
                space.
                    (B) An identification of the roles and missions of 
                each military department, Defense Agency, and other 
                component or element of the Department of Defense for 
                the fulfillment of the mission of the Department with 
                respect to operationally responsive space.
                    (C) A description of the chain of command and 
                reporting structure of the Operationally Responsive 
                Space Program Office established under section 2273a of 
                title 10, United States Code, as amended by subsection 
                (a).
                    (D) A description of the classification of 
                information required for that Office in order to ensure 
                that the Office carries out its responsibilities in a 
                proper and efficient manner.
                    (E) A description of the acquisition policies and 
                procedures applicable to that Office, including a 
                description of any legislative or administrative action 
                necessary to provide the Office additional acquisition 
                authority to carry out its responsibilities.
                    (F) A complete schedule for the implementation of 
                the plan.
                    (G) The funding required to implement the plan over 
                the course of the future-years defense program under 
                section 221 of title 10, United States Code, in effect 
                as of the submission of the plan.
            (3) Definition.--In this subsection, the term 
        ``operationally responsive space'' means the development and 
        launch of space assets upon demand in a low-cost manner.

             Subtitle C--Chemical Demilitarization Program

SEC. 921. TRANSFER TO SECRETARY OF THE ARMY OF RESPONSIBILITY FOR 
              ASSEMBLED CHEMICAL WEAPONS ALTERNATIVES PROGRAM.

    Effective January 1, 2007, the text of section 142 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 50 U.S.C. 1521 note) is amended to read as 
follows:
    ``(a) Program Management.--(1) The program manager for the 
Assembled Chemical Weapons Alternatives program shall report to the 
Secretary of the Army.
    ``(2) The Secretary of the Army shall provide for that program to 
be managed as part of the management organization within the Department 
of the Army specified in section 1412(e) of Public Law 99-145 (50 
U.S.C. 1521(e)).
    ``(b) Continued Implementation of Previously Selected Alternative 
Technologies.--(1) In carrying out the destruction of lethal chemical 
munitions at Pueblo Chemical Depot, Colorado, the Secretary of the Army 
shall continue to implement fully the alternative technology for such 
destruction at that depot selected by the Under Secretary of Defense 
for Acquisition, Technology, and Logistics on July 16, 2002.
    ``(2) In carrying out the destruction of lethal chemical munitions 
at Blue Grass Army Depot, Kentucky, the Secretary of the Army shall 
continue to implement fully the alternative technology for such 
destruction at that depot selected by the Under Secretary of Defense 
for Acquisition, Technology, and Logistics on February 3, 2003.''.

SEC. 922. COMPTROLLER GENERAL REVIEW OF COST-BENEFIT ANALYSIS OF OFF-
              SITE VERSUS ON-SITE TREATMENT AND DISPOSAL OF HYDROLYSATE 
              DERIVED FROM NEUTRALIZATION OF VX NERVE GAS AT NEWPORT 
              CHEMICAL DEPOT, INDIANA.

    (a) Review Required.--Not later than December 1, 2006, the 
Comptroller General shall submit to Congress a report containing a 
review of the cost-benefit analysis prepared by the Secretary of the 
Army entitled ``Cost-Benefit Analysis of Off-Site Versus On-Site 
Treatment and Disposal of Newport Caustic Hydrolysate'' and dated April 
24, 2006.
    (b) Content of Review.--In conducting the review under subsection 
(a), the Comptroller General shall consider and assess at a minimum the 
following matters:
            (1) The adequacy of the rationale contained in the cost-
        benefit analysis referred to in subsection (a) in dismissing 
        five of the eight technologies for hydrolysate treatment 
        directed for consideration on page 116 of the the Report of the 
        Committee on Armed Services of the House of Representatives on 
        H.R. 1815 (House Report 109-89).
            (2) The rationale for the failure of the Secretary of the 
        Army to consider other technical solutions, such as 
        constructing a wastewater disposal system at the Newport 
        Chemical Depot.
            (3) The adequacy of the cost-benefit analysis presented for 
        the three technologies considered.
    (c) Delay Pending Report.--The Secretary of the Army shall not 
proceed with any action to transport or relocate neutralized bulk nerve 
agent (other than those small quantities necessary for laboratory 
evaluation of the disposal process) from the Newport Chemical Depot 
until--
            (1) the report required by subsection (a) is submitted; and
            (2) a period of 60 days expires after the submission of the 
        report.

SEC. 923. SENSE OF CONGRESS REGARDING THE SAFE AND EXPEDITIOUS DISPOSAL 
              OF CHEMICAL WEAPONS.

    (a) Findings.--Congress makes the following findings:
            (1) The disposal of chemical weapons needs to be 
        accomplished as safely and expeditiously as possible.
            (2) It is apparent, however, that any disposal method for 
        chemical weapons that involves the transportation of chemical 
        munitions or processed chemical munitions is difficult to 
        implement
    (b) Sense of Congress.--In light of these findings, it is the sense 
of Congress that, when chemical munitions or processed chemical 
munitions are proposed for treatment or disposal at a location remote 
from the location where the munitions are stored--
            (1) the method of actually selecting the disposal location 
        should be free from political interference; and
            (2) a process like that used for selecting and approving 
        military installations for closure or realignment should be 
        considered.

                Subtitle D--Intelligence-Related Matters

SEC. 931. REPEAL OF TERMINATION OF AUTHORITY OF SECRETARY OF DEFENSE TO 
              ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR 
              INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

    Section 431(a) of title 10, United States Code, is amended by 
striking the last sentence.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
                            2006.
Sec. 1003. Increase in fiscal year 2006 general transfer authority.
Sec. 1004. United States contribution to NATO common-funded budgets in 
                            fiscal year 2007.
Sec. 1005. Report on budgeting for fluctuations in fuel cost rates.
Sec. 1006. Reduction in authorizations due to savings resulting from 
                            lower-than-expected inflation.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Transfer of naval vessels to foreign nations based upon 
                            vessel class.
Sec. 1012. Overhaul, repair, and maintenance of vessels in foreign 
                            shipyards.
Sec. 1013. Report on options for future lease arrangement for Guam 
                            Shipyard.
Sec. 1014. Shipbuilding Industrial Base Improvement Program.
Sec. 1015. Transfer of operational control of certain patrol coastal 
                            ships to Coast Guard.
Sec. 1016. Limitation on leasing of foreign-built vessels.
Sec. 1017. Overhaul, repair, and maintenance of vessels carrying 
                            Department of Defense cargo.
Sec. 1018. Riding gang member documentation requirement.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Restatement in title 10, United States Code, and revision of 
                            Department of Defense authority to provide 
                            support for counter-drug activities of 
                            Federal, State, local, and foreign law 
                            enforcement agencies.
Sec. 1022. Restatement in title 10, United States Code, and revision of 
                            Department of Defense authority to provide 
                            support for counter-drug activities of 
                            certain foreign governments.
Sec. 1023. Extension of authority to support unified counterdrug and 
                            counterterrorism campaign in Colombia.
Sec. 1024. Continuation of reporting requirement regarding Department 
                            of Defense expenditures to support foreign 
                            counter-drug activities.
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan 
                            and South and Central Asian regions.

                       Subtitle D--Other Matters

Sec. 1031. Revision to authorities relating to Commission on the 
                            implementation of the New Strategic Posture 
                            of the United States.
Sec. 1032. Enhancement to authority to pay rewards for assistance in 
                            combating terrorism.
Sec. 1033. Report on assessment process of Chairman of the Joint Chiefs 
                            of Staff relating to Global War on 
                            Terrorism.
Sec. 1034. Presidential report on improving interagency support for 
                            United States 21st century national 
                            security missions.
Sec. 1035. Quarterly reports on implementation of 2006 Quadrennial 
                            Defense Review Report.
Sec. 1036. Increased hunting and fishing opportunities for members of 
                            the Armed Forces, retired members, and 
                            disabled veterans.
Sec. 1037. Technical and clerical amendments.
Sec. 1038. Database of emergency response capabilities.
Sec. 1039. Information on certain criminal investigations and 
                            prosecutions.
Sec. 1040. Date for final report of EMP Commission.

                     Subtitle A--Financial Matters

SEC. 1001. GENERAL TRANSFER AUTHORITY.

    (a) Authority to Transfer Authorizations.--
            (1) Authority.--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 2007 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) Limitation.--The total amount of authorizations that 
        the Secretary may transfer under the authority of this section 
        may not exceed $3,750,000,000.
    (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. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
              2006.

    Amounts authorized to be appropriated to the Department of Defense 
and the Department of Energy for fiscal year 2006 in the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) are 
hereby adjusted, with respect to any such authorized amount, by the 
amount by which appropriations pursuant to such authorization are 
increased by a supplemental appropriation or decreased by a rescission, 
or both, or are increased by a transfer of funds, pursuant to an 
emergency supplemental appropriations Act for 2006.

SEC. 1003. INCREASE IN FISCAL YEAR 2006 GENERAL TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3418) is amended by 
striking ``$3,500,000,000'' and inserting ``$3,750,000,000''.

SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2007.

    (a) Fiscal Year 2007 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2007 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 2006, of funds appropriated for fiscal years before 
        fiscal year 2007 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), $797,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $310,277,000 
        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. REPORT ON BUDGETING FOR FLUCTUATIONS IN FUEL COST RATES.

    (a) Secretary of Defense Report.--
            (1) Report on budgeting for fuel cost fluctuations.--Not 
        later than January 15, 2007, 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 fuel rate and cost projection used in the annual 
        Department of Defense budget presentation.
            (2) Matters to be included.--In the report under paragraph 
        (1), the Secretary shall--
                    (A) identify alternative approaches for selecting 
                fuel rates that would produce more realistic estimates 
                of amounts required to be appropriated or otherwise 
                made available for the Department of Defense to 
                accommodate fuel rate fluctuations;
                    (B) discuss the advantages and disadvantages of 
                each approach identified pursuant to subparagraph (A); 
                and
                    (C) identify the Secretary's preferred approach 
                among the alternative identified pursuant to 
                subparagraph (A) and provide the Secretary's rationale 
                for preferring that approach.
            (3) Identification of alternative approaches.--In 
        identifying alternative approaches pursuant to paragraph 
        (2)(A), the Secretary shall examine--
                    (A) approaches used by other Federal departments 
                and agencies; and
                    (B) the feasibility of using private economic 
                forecasting.
    (b) Comptroller General Review and Report.--The Comptroller General 
shall review the report under subsection (a), including the basis for 
the Secretary's conclusions stated in the report, and shall submit, not 
later than March 15, 2007, to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a report containing the results of that review.

SEC. 1006. REDUCTION IN AUTHORIZATIONS DUE TO SAVINGS RESULTING FROM 
              LOWER-THAN-EXPECTED INFLATION.

    (a) Reduction.--The total amount authorized to be appropriated by 
titles I, II, and III is the amount equal to the sum of the separate 
amounts authorized to be appropriated by those titles reduced by 
$1,583,000,000.
    (b) Source of Savings.--Reduction required in order to comply with 
subsection (a) shall be derived from savings resulting from lower-than-
expected inflation.
    (c) Allocation of Reduction.--The Secretary of Defense shall 
allocate the reduction required by subsection (a) among the amounts 
authorized to be appropriated for accounts in title I, II, and III to 
reflect the extent to which net savings from lower-than-expected 
inflation are allocable to amounts authorized to be appropriated to 
those accounts.

          Subtitle B--Policy Relating to Vessels and Shipyards

SEC. 1011. TRANSFER OF NAVAL VESSELS TO FOREIGN NATIONS BASED UPON 
              VESSEL CLASS.

    Section 7307(a) of title 10, United States Code, is amended--
            (1) by striking ``disposition of that vessel is approved'' 
        and inserting ``disposal of that vessel, or of a vessel of the 
        class of that vessel, is authorized''; and
            (2) by adding at the end the following new sentences: ``In 
        the case of an authorization by law for the disposal of such a 
        vessel that names a specific vessel as being authorized for 
        such disposal, the Secretary of Defense may substitute another 
        vessel of the same class, if the vessel substituted has 
        virtually identical capabilites as the named vessel. In the 
        case of an authorization by law for the disposal of vessels of 
        a specified class, the Secretary may dispose of vessels of that 
        class pursuant to that authorization only in the number of such 
        vessels specified in that law as being authorized for 
        disposal.''.

SEC. 1012. OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS IN FOREIGN 
              SHIPYARDS.

    (a) In General.--Section 7310 of title 10, United States Code, is 
amended to read as follows:
``Sec. 7310. Overhaul, repair, etc. of vessels in foreign shipyards
    ``(a) In General.--A vessel covered by this section the homeport of 
which is in the United States may not be overhauled, repaired, or 
maintained in a shipyard outside the United States, other than in the 
case of emergency voyage repairs.
    ``(b) Covered Vessels.--(1) Vessels covered by this section are the 
following:
            ``(A) Any naval vessel.
            ``(B) Any other vessel under the jurisdiction of the 
        Secretary of the Navy, including any vessel under the 
        jurisdiction of the Military Sealift Command that is owned or 
        chartered by the United States.
    ``(2)(A) Notwithstanding paragraph (1), a naval vessel or other 
vessel certified by the Secretary of the Navy that is deployed 
conducting special mission operations is not subject to this section.
    ``(B) The Secretary of the Navy shall submit to the congressional 
defense committees each year a written certification of those vessels 
that are excluded from this section. The certification shall be 
submitted each year with the annual submission of the Navy budget 
justification materials.
    ``(c) Certain Vessels to Be Considered to Be Homeported in United 
States.--In the case of a vessel that does not have a designated 
homeport, the vessel shall be considered to have a homeport in the 
United States for the purposes of this section if any of the following 
applies to the vessel during the preceding 12-month period:
            ``(1) The vessel has operated within 1,400 nautical miles 
        of the United States.
            ``(2) The vessel has returned to the United States more 
        than two times.
            ``(3) The vessel has made a port call or return to the 
        United States that exceeded seven days.
    ``(d) Vessel Changing Homeports.--(1) In the case of a vessel 
covered by this section the homeport of which is not in the United 
States, the Secretary of the Navy may not during the 15-month period 
preceding the planned reassignment of the vessel to a homeport in the 
United States begin any work for the overhaul, repair, or maintenance 
of the vessel that is scheduled to be for a period of more than six 
months
    ``(2) In the case of a vessel covered by this section the homeport 
of which is in the United States, the Secretary of the Navy shall--
            ``(A) not less than 60 days before designating a homeport 
        for that vessel at a location outside the United States, submit 
        to Congress notification in writing of the intent to designate 
        a homeport for that vessel outside the United States, together 
        with the reasons for that designation; and
            ``(B) during the 15-month period preceding the planned 
        reassignment of the vessel to a homeport not in the United 
        States, perform in the United States any work for the overhaul, 
        repair, or maintenance of the vessel that is scheduled--
                    ``(i) to begin during the 15-month period; and
                    ``(ii) to be for a period of more than six months.
    ``(e) Definitions.--In this section:
            ``(1)(A) The term `emergency voyage repair' means the 
        following:
                    ``(i) Repairs on mission-essential or safety-
                essential items that are needed for a vessel to deploy, 
                to continue on a deployment, or to comply with 
                regulatory requirements.
                    ``(ii) Standard maintenance, but only to the extent 
                that such maintenance is absolutely necessary to ensure 
                machinery and equipment operational reliability or to 
                comply with regulatory requirements.
                    ``(iii) Repair or maintenance that is not executed 
                with a contract request for proposal.
            ``(B) Such term does not include corrective maintenance 
        actions that may be deferred until the next scheduled regular 
        overhaul and dry docking availability at a shipyard in the 
        Unites States without degrading operational readiness, 
        habitability standards, or personnel safety or adversely 
        affecting regulatory compliance.
            ``(2) The term `United States', when used in a geographic 
        sense, includes the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, Guam, and the 
        Virgin Islands.''.
    (b) Effective Date.--Subsection (c) of section 7310 of title 10, 
United States Code, as amended by subsection (a), shall take effect on 
October 1, 2006, or the date of the enactment of this Act, whichever is 
later, and shall apply only with respect to events specified in 
paragraphs (1), (2), and (3) of that subsection occurring on or after 
that effective date.
    (c) Limitation on Application to Vessel Operating Under Existing 
Charter.--This section does not affect the application of section 7310 
of title 10, United States Code, to a vessel operating under a charter 
to the United States in effect on the date of the enactment of this 
Act, unless such charter is terminated or renewed after such date of 
enactment.

SEC. 1013. REPORT ON OPTIONS FOR FUTURE LEASE ARRANGEMENT FOR GUAM 
              SHIPYARD.

    (a) Report Required.-- Not later than December 15, 2006, the 
Secretary of the Navy shall submit to the Committee on Armed Services 
of the Senate and the Committee on Armed Service of the House of 
Representatives a report describing the options available with respect 
to the Guam Shipyard in Santa Rita, Guam.
    (b) Contents of Report.--The report required under subsection (a) 
shall include the following:
            (1) An evaluation of the performance of the entities that, 
        as of the date of the enactment of this Act, are the lessee and 
        operators of the Guam Shipyard under the terms of the lease in 
        effect on the date of the enactment of this Act.
            (2) An evaluation of each of the following options with 
        respect to the Guam Shipyard lease:
                    (A) Terminating the remaining term of the lease and 
                issuing a new 25 year lease with the same entity.
                    (B) Terminating the remaining term of the lease 
                with respect to the approximately 73 acres within the 
                Guam Shipyard that are required for mission 
                requirements and leaving the remaining term of the 
                lease in effect with respect to the approximately 27 
                acres within the Facility that are not required for 
                mission requirements.
                    (C) Terminating the remaining term of the lease and 
                negotiating a new use arrangement with a different 
                lessee or operator. The new use arrangement options 
                shall include:
                            (i) Government-owned and government-
                        operated facility.
                            (ii) Government-owned and contractor-
                        operated facility.
                            (iii) Government-leased property for 
                        contractor-owned and contractor-operated 
                        facility.
    (c) Options for New Use Arrangements.--In evaluating the options 
under subsection (b)(2)(C), the Secretary of the Navy shall include an 
evaluation of each of the following:
            (1) The anticipated future military vessel repair and 
        workload on Guam in relation to the 2006 Quadrennial Defense 
        Review, issued on February 6, 2006, pursuant to section 118 of 
        title 10, United States Code.
            (2) The anticipated military vessel repair and workload 
        attributable to vessels comprising the Maritime Prepositioning 
        Ship Squadron Three.
            (3) The anticipated military vessel repair and workload due 
        to a change in section 7310 of title 10, United States Code, 
        that would designate Guam as a United States homeport facility.
            (4) The expected workload if the submarine tender the 
        U.S.S. Frank Cable (AS-40) is decommissioned.
            (5) The estimated reacquisition costs of transferred 
        Government property.
            (6) Costs to improve floating dry dock mooring 
        certification and required nuclear certification for the 
        floating dry dock designated as AFDB-8 to conduct the following 
        maintenance:
                    (A) Dry-docking selected restricted availabilities 
                and mid-term availability for attack submarines.
                    (B) Dry-docking phased maintenance availabilities 
                for amphibious vessels, including to amphibious assault 
                ships, dock landing ships, and amphibious transport 
                dock ships.
                    (C) Dry-docking phased maintenance availabilities 
                for surface combatants, including cruisers, destroyers, 
                and frigates.
            (7) Commercial opportunities for development to expand 
        commercial ship repair and general industrial services, given 
        anti-terrorism force protection requirements at the current 
        facility.
            (8) Estimates from three contractors for the maintenance 
        and repair costs associated with executing a multiship, 
        multioption contract that would generate a minimum 60,000 
        manday commitment for the Department of the Navy and Military 
        Sealift Command vessels.
            (9) A projection of the maintenance and repair costs 
        associated with executing a minimum 60,000 mandays for the 
        Department of the Navy and Military Sealift Command vessels as 
        a Government-owned and Government-operated Navy ship repair 
        facility.
    (d) Input From Contractors.--In evaluating the options under 
clauses (ii) and (iii) of subsection (b)(2)(C) for the purposes of 
paragraphs (1), (2), and (3) of subsection (c), the Secretary of the 
Navy shall seek input from at least three contractors on the viability 
of operations based on the projected workload fiscal years 2008 through 
2013.
    (e) Recommendations.--The Secretary of the Navy shall include in 
the report the following:
            (1) The recommendations of the Secretary with respect to 
        continuation of the existing Guam Shipyard lease based on 
        evaluations conducted pursuant to subsection (b)(1).
            (2) The option under subsection (b)(2) that the Secretary 
        recommends for fiscal year 2008.
    (f) GAO Report.--Not later than March 1, 2007, the Comptroller 
General shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Service of the House of Representatives a 
report evaluating the report submitted by the Secretary of the Navy 
under subsection (a). The report shall include the option under 
subsection (b)(2) that the Secretary recommends for fiscal year 2008.
    (g) Support for National Strategic Objectives.--For fiscal year 
2007, the Secretary of the Navy, under the authority of section 
2304(c)(3) of title 10, United States Code, and section 6.302-
3(a)(2)(i) of the Federal Acquisition Regulation, shall award contracts 
to the Guam Shipyard in amounts equal to the average amount of the 
mandays contracts awarded to the Guam Shipyard for fiscal years 1998 
through 2006 for the purpose of maintaining the industrial base in case 
of a national emergency or to achieve industrial mobilization.

SEC. 1014. SHIPBUILDING INDUSTRIAL BASE IMPROVEMENT PROGRAM.

    (a) Program for United States Private Shipyards.--The Secretary of 
the Navy shall establish a program, to be known as the Shipbuilding 
Industrial Base Improvement Program, under which the Secretary--
            (1) shall make grants to qualified applicants to facilitate 
        the development of innovative design and production 
        technologies and processes for naval vessel construction and 
        the development of modernized shipbuilding infrastructure; and
            (2) shall provide loan guarantees for qualifying shipyards 
        to facilitate the acquisition by such shipyards of 
        technologies, processes, and infrastructure to improve their 
        productivity and cost effectiveness.
    (b) Purposes of Program.--The purposes of the program established 
under subsection (a) are--
            (1) to improve the efficiency and cost-effectiveness of the 
        construction of naval vessels for the United States;
            (2) to enhance the quality of naval vessel construction; 
        and
            (3) to promote the international competitiveness of United 
        States shipyards for the construction of commercial ships and 
        naval ships intended for sale to foreign governments.
    (c) Selection of Grant Recipients.--
            (1) Application for development funding.--An entity 
        requesting a grant under subsection (a)(1) to develop new 
        design or production technologies or processes for naval 
        vessels or to improve shipbuilding infrastructure shall submit 
        to the Secretary of the Navy an application that describes the 
        proposal of the entity and provides evidence of its capability 
        to develop one or more of the following:
                    (A) Numerically controlled machine tools, robots, 
                automated process control equipment, computerized 
                flexible manufacturing systems, associated computer 
                software, and other technology designed to improve 
                shipbuilding and related industrial productivity.
                    (B) Novel techniques and processes designed to 
                improve shipbuilding quality, productivity, and 
                practice on a broad and sustained basis, including in 
                such areas as engineering design, quality assurance, 
                concurrent engineering, continuous process production 
                technology, employee skills enhancement, and management 
                of customers and suppliers.
                    (C) Technology, techniques, and processes 
                appropriate to enhancing the productivity of shipyard 
                infrastructure.
            (2) Selection .--From applications submitted under 
        paragraph (1), the Secretary of the Navy shall select entities 
        to receive funds under subsection (a)(1) based on their ability 
        to research and develop innovative technologies, processes, and 
        infrastructure to alleviate areas of shipyard construction 
        inefficiencies as determined through the assessment described 
        in subsection (f).
    (d) Matching Requirement for Grants.--
            (1) Federal funding.--Except as provided in paragraph (2), 
        Federal funds from a grant under subsection (a)(1) for any 
        purpose shall not exceed 75 percent of the total cost.
            (2) Exceptions.--
                    (A) Small projects.--Paragraph (1) shall not apply 
                to grants under this section for stand-alone projects 
                costing not more than $25,000. The amount under this 
                subparagraph shall be indexed to the consumer price 
                index and modified each fiscal year after the annual 
                publication of the consumer price index.
                    (B) Reduction in matching requirement.--If the 
                Secretary of the Navy determines that a proposed 
                project merits support and cannot be undertaken without 
                a higher percentage of Federal financial assistance, 
                the Secretary may award a grant for such project with a 
                lesser matching requirement than is described in 
                paragraph (1).
    (e) Loan Guarantees for Shipyard Use of Developed Technologies, 
Processes, and Infrastructure.--
            (1) In general.--Upon making a determination that a 
        technology, a process, or an infrastructure improvement 
        (whether developed using a grant under subsection (a)(1), 
        through the National Shipbuilding Research Program, or 
        otherwise) will improve the productivity and cost-effectiveness 
        of naval vessel construction, the Secretary of the Navy may 
        provide a loan guarantee under subsection (a)(2) for a 
        qualifying shipyard to facilitate the purchase by such shipyard 
        of such technology, process, or infrastructure improvement.
            (2) Payment of cost of loan guarantee.--The cost of a 
        guarantee under this subsection shall be paid for with amounts 
        made available in appropriations Acts.
            (3) Percentage limitation; term.--A loan guarantee under 
        this subsection may apply--
                    (A) to up to 87.5 percent of the loan principal; 
                and
                    (B) for a term of up to 30 years.
            (4) Authorities, procedures, requirements, and 
        restrictions.--The Secretary of the Navy, subject to the other 
        provisions of this section--
                    (A) in implementing this section, may exercise 
                authorities that are similar to the authorities 
                available to the Secretary of Transportation under 
                title XI of the Merchant Marine Act, 1936 (46 App. 
                U.S.C. 1271 et seq.), with respect to loan guarantees 
                under that title; and
                    (B) may establish such additional requirements for 
                loan guarantees under this section as the Secretary 
                determines to be necessary to minimize the cost of such 
                guarantees.
            (5) Limitation on total amount of loan guarantees.--The 
        total amount of loans for which guarantees are provided under 
        this subsection may not exceed $1,000,000,000.
            (6) Definitions.--In this subsection:
                    (A) Qualifying shipyard.--The term ``qualifying 
                shipyard'', with respect to a loan guarantee under this 
                section, means a shipyard that, over the three years 
                preceding the year in which the loan guarantee is made, 
                derived less than 40 percent of its revenue either 
                directly or indirectly from United States Government 
                contracts.
                    (B) Cost.--The term ``cost'', with respect to a 
                loan guarantee under this section, has the meaning 
                given that term in section 502 of the Congressional 
                Budget and Impoundment Control Act of 1974 (2 U.S.C. 
                661a), with cost for that purpose calculated assuming 
                that the borrowing entity receives no revenue directly 
                or indirectly from United States Government contracts.
            (7) Termination of authority.--The authority of the 
        Secretary of the Navy to provide loan guarantees under this 
        subsection expires at the close of September 30, 2011.
    (f) Assessments of Naval Vessel Construction Inefficiencies.--
            (1) Periodic assessments required.--The Secretary of the 
        Navy shall conduct, in the third quarter of each fiscal year or 
        as often as necessary, an assessment of the following aspects 
        of naval vessel construction to determine where and to what 
        extent inefficiencies exist and to what extent innovative 
        design and production technologies, processes, and 
        infrastructure can be developed to alleviate such 
        inefficiencies:
                    (A) Program design, engineering, and production 
                engineering.
                    (B) Organization and operating systems.
                    (C) Steelwork production.
                    (D) Ship construction and outfitting.
            (2) Consideration of prior assessments.--In making the 
        assessments required by paragraph (1), the Secretary shall take 
        into consideration the results of--
                    (A) the study of the cost effectiveness of the ship 
                construction program of the Navy required by section 
                1014 of the Ronald W. Reagan National Defense 
                Authorization Act for Fiscal Year 2005 (Public Law 108-
                375; 118 Stat. 2041); and
                    (B) the assessment of the United States naval 
                shipbuilding industry required by section 254 of the 
                National Defense Authorization Act for Fiscal Year 2006 
                (Public Law 109-163; 119 Stat. 3180).
    (g) Availability of Funds.--
            (1) Authority subject to availability of appropriations.--
        The authority of the Secretary of the Navy to make grants and 
        provide loan guarantees under this section for any fiscal year 
        is subject to the availability of appropriations for that 
        purpose.
            (2) Fiscal year 2007.--Of the amount authorized to be 
        appropriated pursuant to section 201(2) for research, 
        development, test, and evaluation for the Navy for fiscal year 
        2007--
                    (A) $50,000,000 shall be available to the Secretary 
                of the Navy only to make grants under this section; and
                    (B) $50,000,000 shall be available only for the 
                cost (as defined in subsection (e)(6)(B)) of loan 
                guarantees under this section.
    (h) Identification in Budget of Annual Amount for Support of NSRP 
Activities.--Amounts in the budget of the President for any fiscal year 
for research, development, test, and evaluation for the Navy that are 
intended to be made available for the National Shipbuilding Research 
Program shall be separately identified and set forth in budget 
justification materials submitted to Congress for that fiscal year in 
support of that budget.
    (i) Definition of Shipyard.--In this section, the term ``shipyard'' 
means a private shipyard located in the United States the business of 
which includes the construction, repair, and maintenance of United 
States naval vessels.

SEC. 1015. TRANSFER OF OPERATIONAL CONTROL OF CERTAIN PATROL COASTAL 
              SHIPS TO COAST GUARD.

     Not later than September 30, 2008, the Secretary of the Navy shall 
enter into an agreement with the Commandant of the Coast Guard for the 
transfer by the Secretary of the Navy to the Coast Guard of operational 
control of not less than five 179-foot Cyclone-class patrol coastal 
ships for a period extending at least through September 30, 2012.

SEC. 1016. LIMITATION ON LEASING OF FOREIGN-BUILT VESSELS.

    (a) In General.--(1) Chapter 141 of title 10, United States Code, 
is amended by inserting after section 2401a the following new section:
``Sec. 2401b. Limitation on lease of foreign-built vessels
    ``(a) Limitation.--The Secretary of a military department may not 
make a contract for a lease or charter of a vessel for a term of more 
than 24 months (including all options to renew or extend the contract) 
if the hull, or a component of the hull and superstructure of the 
vessel, is constructed in a foreign shipyard.
    ``(b) Presidential Waiver for National Security Interest.--(1) The 
President may authorize exceptions to the limitation in subsection (a) 
when the President determines that it is in the national security 
interest of the United States to do so.
    ``(2) The President shall transmit notice to Congress of any such 
determination, and no contract may be made pursuant to the exception 
authorized until the end of the 30-day period beginning on the date on 
which the notice of the determination is received by Congress.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2401a the 
following new item:

``2401b. Limitation on lease of foreign-built vessels.''.
    (b) Effective Date.--Section 2401b of title 10, United States Code, 
as added by subsection (a), shall apply with respect to contracts 
entered into after the date of the enactment of this Act.

SEC. 1017. OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS CARRYING 
              DEPARTMENT OF DEFENSE CARGO.

    The Secretary of Defense may not award any contract for the 
carriage by vessel of cargo for the Department of Defense, unless the 
contract includes a requirement under which the contractor shall--
            (1) ensure that all overhaul, repair, and maintenance 
        performed on the vessel during the period of the contract is 
        performed in a shipyard located in the United States; or
            (2) report to the Secretary every fiscal year quarter all 
        overhaul, repair, and maintenance performed on the vessel in a 
        shipyard located outside the United States during the period 
        covered by the report.

SEC. 1018. RIDING GANG MEMBER DOCUMENTATION REQUIREMENT.

    (a) Requirement.--The Secretary of Defense may not award any 
charter of a vessel for the Department of Defense, or contract for the 
carriage of cargo by vessel for the Department of Defense, unless the 
charter or contract, respectively, requires that each riding gang 
member that performs any work on the vessel during the effective period 
of the charter or contract holds a merchant mariner's document issued 
under chapter 73 of title 46, United States Code.
    (b) Riding Gang Member Defined.--In this section the term ``riding 
gang member'' means an individual who--
            (1) does not perform--
                    (A) watchstanding, automated engine room duty 
                watch, or personnel safety functions; or
                    (B) cargo handling functions, including any 
                activity relating to the loading or unloading of cargo, 
                the operation of cargo-related equipment (whether or 
                not integral to the vessel), and the handling of 
                mooring lines on the dock when the vessel is made fast 
                or let go;
            (2) does not serve as part of the crew complement required 
        under section 8101 of title 46, United States Code;
            (3) is not a member of the steward's department; and
            (4) is not a citizen or temporary or permanent resident of 
        a country designated by the United States as a sponsor of 
        terrorism or any other country that the Secretary of Defense, 
        in consultation with the Secretary of State and the heads of 
        other appropriate United States agencies, determines to be a 
        security threat to the United States.
    (c) Limitations on Application.--
            (1) Vessel operating under existing charter or contract.--
        This section does not apply with respect to a vessel operating 
        under a charter or contract in effect on the date of the 
        enactment of this section, unless such charter or contract is 
        renewed after such date of enactment.
            (2) Exemptions by secretary of defense.--
                    (A) In general.--The Secretary of Defense may issue 
                regulations that exempt a riding gang member from 
                subsection (a) for the performance of specific 
                technical work on original equipment of a vessel.
                    (B) Background check.--Such regulations shall 
                include a requirement that a riding gang member must 
                pass a background check before performing work under 
                such an exemption.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. RESTATEMENT IN TITLE 10, UNITED STATES CODE, AND REVISION OF 
              DEPARTMENT OF DEFENSE AUTHORITY TO PROVIDE SUPPORT FOR 
              COUNTER-DRUG ACTIVITIES OF FEDERAL, STATE, LOCAL, AND 
              FOREIGN LAW ENFORCEMENT AGENCIES.

    (a) Restatement and Revision of Authority.--Chapter 18 of title 10, 
United States Code, is amended by adding at the end a new section 383 
consisting of--
            (1) a heading as follows:
``Sec. 383. Support for counter-drug activities: Federal, State, local, 
              and foreign law enforcement agencies''; and
            (2) a text consisting of the text of section 1004 of the 
        National Defense Authorization Act for Fiscal Year 1991 (Public 
        Law 101-510; 10 U.S.C. 374 note), revised as follows:
                    (A) In subsection (a), by replacing ``During fiscal 
                years 2002 through 2006, the'' with ``The''.
                    (B) In subsection (e), by replacing ``section 376 
                of title 10, United States Code,'' with ``section 376 
                of this title,''.
                    (C) In subsection (f), by deleting the 
                parenthetical phrase beginning ``(including training'' 
                and ending ``1564))''.
                    (D) In subsection (g)--
                            (i) in paragraph (1), by replacing 
                        ``chapter 18, United States Code'' with ``this 
                        chapter''; and
                            (ii) in paragraph (2), by replacing ``title 
                        10, United States Code'' with ``this title''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``383. Support for counter-drug activities: Federal, State, local, and 
                            foreign law enforcement agencies.''.
    (c) Repeal of Fiscal Year 1991 Authority.--Section 1004 of the 
National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 10 U.S.C. 374 note) is repealed.

SEC. 1022. RESTATEMENT IN TITLE 10, UNITED STATES CODE, AND REVISION OF 
              DEPARTMENT OF DEFENSE AUTHORITY TO PROVIDE SUPPORT FOR 
              COUNTER-DRUG ACTIVITIES OF CERTAIN FOREIGN GOVERNMENTS.

    (a) Restatement and Revision of Authority.--Chapter 18 of title 10, 
United States Code, is amended by inserting after section 383, as added 
by section 1021, a new section 384 consisting of--
            (1) a heading as follows:
``Sec. 384. Support for counter-drug activities: foreign governments''; 
              and
            (2) a text consisting of the text of section 1033 of the 
        National Defense Authorization Act for Fiscal Year 1998 (Public 
        Law 105-85; 111 Stat. 1881), revised as follows:
                    (A) In subsection (a)(2)--
                            (i) by deleting the first sentence; and
                            (ii) by replacing ``the governments'' with 
                        ``those governments''.
                    (B) In subsection (b), by adding at the end the 
                following new paragraphs:
            ``(10) The Government of Azerbaijan.
            ``(11) The Government of Kazakhstan.
            ``(12) The Government of Kyrgyzstan.
            ``(13) The Government of Guatemala.
            ``(14) The Government of Belize.
            ``(15) The Government of Panama.''.
                    (C) In subsection (c), by replacing paragraphs (1), 
                (2), and (3) with the following new paragraphs:
            ``(1) The transfer of nonlethal protective and utility 
        personnel equipment.
            ``(2) The transfer of the following nonlethal specialized 
        equipment:
                    ``(A) Navigation equipment.
                    ``(B) Secure and nonsecure communications 
                equipment.
                    ``(C) Photo equipment.
                    ``(D) Radar equipment.
                    ``(E) Night vision systems.
            ``(3) The transfer of nonlethal components, accessories, 
        attachments, parts (including ground support equipment), 
        firmware, and software and repair equipment related to the 
        equipment specified in paragraph (2).
            ``(4) The transfer of patrol boats, vehicles, and aircraft 
        and detection, interception, monitoring and testing equipment.
            ``(5) The maintenance and repair or upgrade of equipment of 
        the government that is used for counter-drug activities.
            ``(6) For fiscal years 2007 and 2008, for the Government of 
        Afghanistan only, individual and crew-served weapons of 50 
        caliber or less and ammunition for such weapons for counter-
        narcotics security forces.''.
                    (D) In subsection (d), by replacing ``the 
                provisions of section 1004 of the National Defense 
                Authorization Act for Fiscal Year 1991 (Public Law 101-
                510; 10 U.S.C. 374 note)'' with ``section 383 of this 
                title''.
                    (E) By replacing subsection (e) with the following 
                new subsection (e):
    ``(e) Limitation on Obligations.--Amounts made available to carry 
out this section shall remain available until expended, except that the 
total amount obligated and expended under this section may not exceed 
$40,000,000 during fiscal year 2006 or $60,000,000 during fiscal year 
2007 or fiscal year 2008.''.
                    (F) In subsection (f), by replacing paragraphs (3) 
                and (4) with the following new paragraph:
    ``(3) For purposes of this subsection and subsection (h), the term 
`congressional committees' means the following:
            ``(A) The Committee on Armed Services, the Committee on 
        Appropriations, and the Committee on Foreign Relations of the 
        Senate.
            ``(B) The Committee on Armed Services, the Committee on 
        Appropriations, and the Committee on International Relations of 
        the House of Representatives.''.
                    (G) In subsection (g)(1), by replacing ``United 
                States Armed Forces'' with ``armed forces''.
                    (H) In subsection (h)--
                            (i) in the first sentence, by replacing 
                        ``prepare for fiscal year 2004 (and revise as 
                        necessary for subsequent fiscal years) a 
                        counter-drug plan'' with ``submit to the 
                        congressional committees not later than 
                        December 31 of each fiscal year a counter-drug 
                        plan for the next fiscal year''; and
                            (ii) by adding at the end the following new 
                        paragraph:.
            ``(10) A copy of the certification required by subsection 
        (f)(1) with respect to the government.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
383, as added by section 1021, the following new item:

``384. Support for counter-drug activities: foreign governments.''.
    (c) Repeal of Fiscal Year 1998 Authority.--Section 1033 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1881) is repealed.

SEC. 1023. EXTENSION OF AUTHORITY TO SUPPORT UNIFIED COUNTERDRUG AND 
              COUNTERTERRORISM CAMPAIGN IN COLOMBIA.

    Section 1021 of the Ronald W. Reagan National Defense Authorization 
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2042) is 
amended--
            (1) in subsection (a)(1), by striking ``and 2006'' and 
        inserting ``through 2008''; and
            (2) in subsection (c), by striking ``and 2006'' and 
        inserting ``through 2008''.

SEC. 1024. CONTINUATION OF REPORTING REQUIREMENT REGARDING DEPARTMENT 
              OF DEFENSE EXPENDITURES TO SUPPORT FOREIGN COUNTER-DRUG 
              ACTIVITIES.

    (a) Additional Report Required.--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), as 
amended by section 1022 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1215) and section 1021 
of the National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3426), is further amended by inserting ``and 
February 15, 2007,'' after ``April 15, 2006,''.
    (b) Form of Report and Additional Information Required.--Such 
section is further amended--
            (1) in the first sentence, by inserting ``, in both 
        classified and unclassified form,'' after ``report''; and
            (2) in paragraph (2), by inserting before the period at the 
        end the following: ``and the amount of funds provided for each 
        type of counter-drug activity assisted''.

SEC. 1025. REPORT ON INTERAGENCY COUNTER-NARCOTICS PLAN FOR AFGHANISTAN 
              AND SOUTH AND CENTRAL ASIAN REGIONS.

    (a) Report Required.--Not later than December 31, 2006, the 
Secretary of Defense shall submit to the congressional defense 
committees a report updating the interagency counter-narcotics 
implementation plan for Afghanistan and the South and Central Asian 
regions, including Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, 
Kazakhstan, Iran, Azerbaijan, Pakistan, India, and China, originally 
prepared pursuant to section 1033 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881).
    (b) Consultation.--The report under this section shall be prepared 
in consultation with the Secretary of State, the Administrator of the 
Agency for International Development, and the Director of the Drug 
Enforcement Administration.
    (c) Matters to Be Included.--The report shall include the following 
for each foreign government covered by the report:
            (1) A consideration of what activities should be 
        reallocated among the United States and the foreign government 
        based on the capabilities of each department and agency 
        involved.
            (2) Any measures necessary to clarify the legal authority 
        required to complete the mission and the measures necessary for 
        the United States to successfully complete its counter-
        narcotics efforts in Afghanistan and the South and Central 
        Asian regions.
            (3) Current and proposed United States funding to support 
        counter-narcotics activities of the foreign government.

                       Subtitle D--Other Matters

SEC. 1031. REVISION TO AUTHORITIES RELATING TO COMMISSION ON THE 
              IMPLEMENTATION OF THE NEW STRATEGIC POSTURE OF THE UNITED 
              STATES.

    Section 1051 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3431) is amended--
            (1) in subsections (b)(1)(E) and (b)(2)(B), by striking 
        ``though 2008'' and inserting ``through 2025'';
            (2) in subsection (c)(1), by striking ``Not later than June 
        30, 2007'' and inserting ``Not later than 18 months after the 
        date of the Commission's first meeting''; and
            (3) in subsection (f), by striking ``July 30, 2007'' and 
        inserting ``60 days after the date of the submission of its 
        report''.

SEC. 1032. ENHANCEMENT TO AUTHORITY TO PAY REWARDS FOR ASSISTANCE IN 
              COMBATING TERRORISM.

    (a) Increase in Delegation Limitation.--Paragraph (2) of section 
127b(c) of title 10, United States Code, is amended by striking 
``$2,500'' and inserting ``$10,000''.
    (b) Expansion of Senior Officers to Whom Combatant Commander 
Authority May Be Delegated.--Such paragraph is further amended--
            (1) by inserting after ``deputy commander'' the following: 
        ``, or to the commander of a command directly subordinate to 
        that commander,''; and
            (2) by adding at the end the following new sentence: ``Such 
        a delegation may be made to the commander of a command directly 
        subordinate to the commander of a combatant command only with 
        the approval of the Secretary of Defense, the Deputy Secretary 
        of Defense, or an Under Secretary of Defense designated by the 
        Secretary.''.

SEC. 1033. REPORT ON ASSESSMENT PROCESS OF CHAIRMAN OF THE JOINT CHIEFS 
              OF STAFF RELATING TO GLOBAL WAR ON TERRORISM.

    Not later than March 1, 2007, 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 findings 
of the semiannual assessment process relating to the Global War on 
Terrorism that is described in the annex to the National Military 
Strategic Plan for the War on Terrorism, issued by the Secretary of 
Defense on February 1, 2006, that is designated as the Implementation 
and Assessment Annex (Annex R).

SEC. 1034. PRESIDENTIAL REPORT ON IMPROVING INTERAGENCY SUPPORT FOR 
              UNITED STATES 21ST CENTURY NATIONAL SECURITY MISSIONS.

    (a) Report Required.--Not later than February 1, 2007, the 
President shall submit to Congress a report on building interagency 
capacity and enhancing the integration of civilian capabilities of the 
executive branch with the capabilities of the Armed Forces as required 
to achieve United States national security goals and objectives. To the 
maximum extent practicable, the report shall be unclassified, with a 
classified annex if necessary.
    (b) Report Elements.--The report under subsection (a) shall include 
the following:
            (1) An assessment of the capabilities required within the 
        executive branch (other than the Armed Forces) to achieve the 
        full spectrum of United States national security goals and 
        objectives, to defend United States national security 
        interests, and, in particular, to coordinate with the efforts 
        of elements of the Armed Forces where deployed, including at 
        least in the following areas:
                    (A) Organizations and organizational structure.
                    (B) Planning and assessment capabilities.
                    (C) Information sharing policies, practices, and 
                systems.
                    (D) Leadership issues, including command and 
                control of forces and personnel in the field.
                    (E) Personnel policies and systems, including 
                recruiting, retention, training, education, promotion, 
                awards, employment, deployment, and retirement.
                    (F) Acquisition authorities.
            (2) The criteria and considerations used to evaluate 
        progress in each of the areas specified in paragraph (1) 
        towards building and integrating the interagency capacities 
        required to achieve United States national security goals and 
        objectives.
            (3) Recommendations for specific legislative proposals that 
        would improve interagency capacity and enhance the integration 
        of civilian capabilities with the capabilities of deployed 
        elements of the Armed Forces for each of the areas specified in 
        paragraph (1).

SEC. 1035. QUARTERLY REPORTS ON IMPLEMENTATION OF 2006 QUADRENNIAL 
              DEFENSE REVIEW REPORT.

    (a) Reports Required.--Not later than 30 days after the end of each 
fiscal-year quarter, 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 implementation 
of recommendations described in the Department of Defense 2006 
Quadrennial Defense Review Report.
    (b) Contents of Reports.--Each quarterly report under subsection 
(a) shall, at a minimum--
            (1) describe the processes and procedures established by 
        the Secretary of Defense to examine the various recommendations 
        referred to in subsection (a);
            (2) discuss implementation plans and strategies for each 
        area highlighted by the Quadrennial Defense Review Report;
            (3) provide relevant information about the status of such 
        implementation; and
            (4) indicate changes in the Secretary's assessment of the 
        defense strategies or capabilities required since the 
        publication of the 2006 Quadrennial Defense Review Report.
    (c) Initial Report.--The first report under subsection (a) shall be 
submitted not later than January 31, 2007.
    (d) Expiration of Requirement.--The reporting requirement in 
subsection (a) shall terminate upon the earlier of the following:
            (1) The date of the publication of the next Quadrennial 
        Defense Review Report after the date of the enactment of this 
        Act pursuant to section 118 of title 10, United States Code.
            (2) The date of transmission of a written notification by 
        the Secretary of Defense to the Committee on Armed Services of 
        the Senate and the Committee on Armed Services of the House of 
        Representatives that implementation of the recommendations of 
        the 2006 Quadrennial Defense Review is complete.

SEC. 1036. INCREASED HUNTING AND FISHING OPPORTUNITIES FOR MEMBERS OF 
              THE ARMED FORCES, RETIRED MEMBERS, AND DISABLED VETERANS.

    (a) Access for Members, Retired Members, and Disabled Veterans.--
Consistent with section 2671 of title 10, United States Code, and using 
such funds as are made available for this purpose, the Secretary of 
Defense shall ensure that members of the Armed Forces, retired members, 
disabled veterans, and persons assisting disabled veterans are able to 
utilize lands under the jurisdiction of the Department of Defense that 
are available for hunting or fishing.
    (b) Assessment.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
containing the results of an assessment of those lands under the 
jurisdiction of the Department of Defense and suitable for hunting or 
fishing and describing the actions necessary--
            (1) to further increase the acreage made available to 
        members of the Armed Forces, retired members, disabled 
        veterans, and persons assisting disabled veterans for hunting 
        and fishing; and
            (2) to make that acreage more accessible to disabled 
        veterans.
    (c) Recreational Activities on Santa Rosa Island.--The Secretary of 
the Interior shall immediately cease the plan, approved in the 
settlement agreement for case number 96-7412 WJR and case number 97-
4098 WJR, to exterminate the deer and elk on Santa Rosa Island, Channel 
Islands, California, by helicopter and shall not exterminate or nearly 
exterminate the deer and elk.

SEC. 1037. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) Section 1406(i)(3)(B)(vi) is amended by striking 
        ``Advisor for'' and inserting ``Advisor to''.
            (2) Section 2105 is amended by striking by adding a period 
        at the end of the last sentence.
            (3) Section 2703(h) is amended by striking ``subsection'' 
        in the first sentence and inserting ``section''.
    (b) Title 37, United States Code.--Title 37, United States Code, is 
amended as follows:
            (1) Section 210(c)(6) is amended by striking ``Advisor 
        for'' and inserting ``Advisor to''.
            (2) Section 308g(h) is amended by striking the second 
        period at the end.
            (3) Section 308j is amended by striking subsection (g) and 
        inserting the following new subsection:
    ``(g) Repayment.--A person who enters into an agreement under this 
section and receives all or part of the bonus under the agreement, but 
who does not accept a commission or an appointment as an officer or 
does not commence to participate or does not satisfactorily participate 
in the Selected Reserve for the total period of service specified in 
the agreement, shall be subject to the repayment provisions of section 
303a(e) of this title.''.
            (4) Section 414(c) is amended by striking ``, or the Senior 
        Enlisted Advisor for the Chairman of the Joint Chiefs of 
        Staff'' before the period at the end.
    (c) National Defense Authorization Act for Fiscal Year 2006.--
Effective as of January 6, 2006, and as if included therein as enacted, 
the National Defense Authorization Act for Fiscal Year 2006 (Public Law 
109-163) is amended as follows:
            (1) Section 608(b) (119 Stat. 3289) is amended--
                    (A) in paragraph (1), by striking ``the first 
                sentence'' and inserting ``the second sentence''; and
                    (B) in paragraph (2), by striking ``the second 
                sentence'' and inserting ``the third sentence''.
            (2) Section 683 (119 Stat. 3322) is amended--
                    (A) in subsection (a)(3), by striking ``section 
                4873'' and inserting ``section 4837'';
                    (B) in subsetion (c)(3), by striking ``section 
                9873'' and inserting ``section 9837''.
                    (C) in subsection (b)(2)--
                            (i) by striking ``by striking the 
                        penultimate word.'' and inserting ``to read as 
                        follows:''; and
                            (ii) by adding at the end the following:

``6161. Settlement of accounts: remission or cancellation of 
                            indebtedness of members.''.
            (3) Section 685(a) (119 Stat. 3325) is amended by striking 
        ``Advisor for'' both places it appears and inserting ``Advisor 
        to''.
            (4) Section 687(a)(2) (119 Stat. 3327) is amended by 
        striking ``subsection (a)'' and inserting ``subsection (e)''.
            (5) Section 687(b)(15) (119 Stat. 3330) is amended--
                    (A) by striking ``Subsection (d)'' and inserting 
                ``Subsection (e)''; and
                    (B) in the matter inserted by that section, by 
                striking ``(d) Repayment.--'' and inserting ``(e) 
                Repayment.--''.

SEC. 1038. DATABASE OF EMERGENCY RESPONSE CAPABILITIES.

    The Secretary of Defense shall ensure that a database of emergency 
response capabilities is maintained by the Department of Defense that 
includes the following:
            (1) The types of capabilities that each State's National 
        Guard will likely provide in response to domestic natural and 
        manmade disasters, both to their home States and under State-
        to-State mutual assistance agreements.
            (2) The types of capabilities that the Department of 
        Defense will likely provide in order to fulfill Department of 
        Defense responsibilities to provide support under the National 
        Response Plan's 15 Emergency Support Functions, as well as 
        identification of the units that provide those capabilities.

SEC. 1039. INFORMATION ON CERTAIN CRIMINAL INVESTIGATIONS AND 
              PROSECUTIONS.

    (a) Annual Report.--Subsection (c) of section 1093 of the Ronald W. 
Reagan National Defense Authorization Act for Fiscal Year 2005 (Public 
Law 108-375; 118 Stat. 2070) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``, or any prosecution on account 
                of,'' after ``Notice of any investigation into''; and
                    (B) by inserting before the period at the end the 
                following: ``, and, as to any such criminal 
                investigation or prosecution described in this 
                paragraph, a detailed and comprehensive description of 
                such investigation or prosecution and any resulting 
                judicial or nonjudicial punishment or other 
                disciplinary action''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Information about any officer nominated for command, 
        or nominated for promotion or appointment to a position 
        requiring the advice and consent of the Senate, who has been 
        subject to any investigation into, or prosecution of, a 
        violation of international obligations or laws of the United 
        States regarding the treatment of individuals detained by the 
        United States Armed Forces or by a person providing services to 
        the Department of Defense on a contractual basis, if the 
        inclusion of such information in the report will not compromise 
        any ongoing criminal or administrative investigation or 
        prosecution, and including the following:
                    ``(A) A description of any allegation of detainee 
                death, torture or abuse.
                    ``(B) The status of any investigation or 
                prosecution.
                    ``(C) Any judicial or nonjudicial punishment or 
                other disciplinary action.''.
    (b) Nomination Information.--Such section is further amended by 
adding at the end the following new subsection:
    ``(f) Nominations.--Information described in paragraph (3) of 
subsection (c), in addition to being included in the annual report 
under that subsection, shall be submitted to the Committee of Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives on a regular, timely basis in advance of any 
nomination described in that paragraph.''.

SEC. 1040. DATE FOR FINAL REPORT OF EMP COMMISSION.

    (a) Revised Deadline for Submission of Final Report.--The final 
report of the EMP Commission shall be submitted to Congress not later 
than the end of the 18-month period beginning on the date of the 
commission's first meeting after being reestablished pursuant to 
section 1052 of the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109-163; 119 Stat. 3434) (rather than the date 
prescribed in section 1403(a) of the Commisssion Charter).
    (b) Definitions.--For purposes of this section:
            (1) Emp commission.--The term ``EMP Commission'' means the 
        Commission to Assess the Threat to the United States from 
        Electromagnetic Pulse (EMP) Attack Commission, established 
        pursuant to title XIV 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-345 et seq.) and 
        reestablished pursuant to section 1052 of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
        Stat. 3434).
            (2) Commission charter.--The term ``Commission charter'' 
        means title XIV 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-345 et seq.), as amended by 
        section 1052 of the National Defense Authorization Act for 
        Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3434).

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Increase in authorized number of defense intelligence senior 
                            executive service employees.
Sec. 1102. Authority for Department of Defense to pay full replacement 
                            value for personal property claims of 
                            civilians.
Sec. 1103. Accrual of annual leave for members of the uniformed 
                            services performing dual employment.
Sec. 1104. Death gratuity authorized for Federal employees.

SEC. 1101. INCREASE IN AUTHORIZED NUMBER OF DEFENSE INTELLIGENCE SENIOR 
              EXECUTIVE SERVICE EMPLOYEES.

    Section 1606(a) of title 10, United States Code, is amended by 
striking ``594'' and inserting ``644''.

SEC. 1102. AUTHORITY FOR DEPARTMENT OF DEFENSE TO PAY FULL REPLACEMENT 
              VALUE FOR PERSONAL PROPERTY CLAIMS OF CIVILIANS.

    Section 2636a(a) of title 10, United States Code, is amended by 
striking ``of baggage and household effects for members of the armed 
forces at Government expense'' and inserting ``at Government expense of 
baggage and household effects for members of the armed forces or 
civilian employees of the Department of Defense (or both)''.

SEC. 1103. ACCRUAL OF ANNUAL LEAVE FOR MEMBERS OF THE UNIFORMED 
              SERVICES PERFORMING DUAL EMPLOYMENT.

    Section 5534a of title 5, United States Code, is amended by adding 
at the end the following new sentence: ``Such a member also is entitled 
to accrue annual leave with pay in the manner specified in section 
6303(a) of this title for a retired member of a uniformed service.''.

SEC. 1104. DEATH GRATUITY AUTHORIZED FOR FEDERAL EMPLOYEES.

    (a) Death Gratuity Authorized.--Chapter 81 of title 5, United 
States Code, is amended by inserting after section 8102 the following 
new section:
``Sec. 8102a. Death gratuity
    ``(a) Death Gratuity Authorized.--The United States shall pay a 
death gratuity of $100,000 to or for the survivor prescribed by 
subsection (d) immediately upon receiving official notification of the 
death of an employee who dies of injuries incurred in connection with 
the employee's service with an Armed Force in a contingency operation, 
or who dies of injuries incurred in connection with a terrorist 
incident occurring during the employee's service with an Armed Force.
    ``(b) Retroactive Payment in Certain Cases.--With respect to an 
employee who dies on or after October 7, 2001, as a result of wounds, 
injuries, or illnesses incurred in the performance of duty in the 
theater of operations of Operation Enduring Freedom or Operation Iraqi 
Freedom, subsection (a) also shall apply.
    ``(c) Other Benefits.--The death gratuity payable under this 
section is in addition to any death benefits otherwise provided for in 
law.
    ``(d) Eligible Survivors.--
            ``(1) A death gratuity payable upon the death of a person 
        covered by subsection (a) shall be paid to or for the living 
        survivor highest on the following list:
                    ``(A) The employee's surviving spouse.
                    ``(B) The employee's children, as prescribed by 
                paragraph (2), in equal shares.
                    ``(C) If designated by the employee, any one or 
                more of the following persons:
                            ``(i) The employee's parents or persons in 
                        loco parentis, as prescribed by paragraph (3).
                            ``(ii) The employee's brothers.
                            ``(iii) The employee's sisters.
                    ``(D) The employee's parents or persons in loco 
                parentis, as prescribed by paragraph (3), in equal 
                shares.
                    ``(E) The employee's brothers and sisters in equal 
                shares.
        Subparagraphs (C) and (E) of this paragraph include brothers 
        and sisters of the half blood and those through adoption.
            ``(2) Paragraph (1)(B) applies, without regard to age or 
        marital status, to--
                    ``(A) legitimate children;
                    ``(B) adopted children;
                    ``(C) stepchildren who were a part of the 
                decedent's household at the time of death;
                    ``(D) illegitimate children of a female decedent; 
                and
                    ``(E) illegitimate children of a male decedent--
                            ``(i) who have been acknowledged in writing 
                        signed by the decedent;
                            ``(ii) who have been judicially determined, 
                        before the decedent's death, to be his 
                        children;
                            ``(iii) who have been otherwise proved, by 
                        evidence satisfactory to the employing agency, 
                        to be children of the decedent; or
                            ``(iv) to whose support the decedent had 
                        been judicially ordered to contribute.
            ``(3) Subparagraphs (C) and (D) of paragraph (1), so far as 
        they apply to parents and persons in loco parentis, include 
        fathers and mothers through adoption, and persons who stood in 
        loco parentis to the decedent for a period of not less than one 
        year at any time before the decedent became an employee. 
        However, only one father and one mother, or their counterparts 
        in loco parentis, may be recognized in any case, and preference 
        shall be given to those who exercised a parental relationship 
        on the date, or most nearly before the date, on which the 
        decedent became an employee.
            ``(4) If an eligible survivor dies before he receives the 
        death gratuity, it shall be paid to the living survivor next in 
        the order prescribed by paragraph (1).
    ``(e) Definitions.--The term `contingency operation' has the 
meaning given to that term in section 1482a(c) of title 10, United 
States Code.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 81 of such title is amended by inserting after the item 
relating to section 8102 the following new item:

``8102a. Death gratuity.''.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined 
                            operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing 
                            agreements to lend certain military 
                            equipment to foreign forces in Iraq and 
                            Afghanistan for personnel protection and 
                            survivability.
Sec. 1203. Recodification and revision to law relating to Department of 
                            Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism 
                            Fellowship Program.
Sec. 1205. Capstone overseas field studies trips to People's Republic 
                            of China and Republic of China on Taiwan.
Sec. 1206. Military educational exchanges between senior officers and 
                            officials of the United States and Taiwan.

     Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. Procurement restrictions against foreign persons that 
                            transfer certain defense articles and 
                            services to the People's Republic of China.

                       Subtitle C--Other Matters

Sec. 1221. Execution of the President's policy to make available to 
                            Taiwan diesel electric submarines.

                  Subtitle A--Assistance and Training

SEC. 1201. LOGISTIC SUPPORT FOR ALLIED FORCES PARTICIPATING IN COMBINED 
              OPERATIONS.

    (a) Authority.--Chapter 3 of title 10, United States Code, is 
amended by inserting after section 127b the following new section:
``Sec. 127c. Allied forces participating in combined operations: 
              authority to provide logistic support, supplies, and 
              services
    ``(a) Authority.--Subject to subsections (b) and (c), the Secretary 
of Defense may provide logistic support, supplies, and services to 
allied forces participating in a combined operation with the armed 
forces. Provision of such support, supplies, and services to the forces 
of an allied nation may be made only with the concurrence of the 
Secretary of State.
    ``(b) Limitations.--The authority provided by subsection (a) may be 
used only--
            ``(1) in accordance with the Arms Export Control Act and 
        other export control laws of the United States; and
            ``(2) for a combined operation--
                    ``(A) that is carried out during active hostilities 
                or as part of a contingency operation or a noncombat 
                operation (including an operation in support of the 
                provision of humanitarian or foreign disaster 
                assistance, a country stabilization operation, or a 
                peacekeeping operation under chapter VI or VII of the 
                Charter of the United Nations); and
                    ``(B) in a case in which the Secretary of Defense 
                determines that the allied forces to be provided 
                logistic support, supplies, and services (i) are 
                essential to the success of the combined operation, and 
                (ii) would not be able to participate in the combined 
                operation but for the provision of such logistic 
                support, supplies, and services by the Secretary.
    ``(c) Limitation on Value.--The value of logistic support, 
supplies, and services provided under this section in any fiscal year 
may not exceed $100,000,000.
    ``(d) Definition.--In this section, the term `logistic support, 
supplies, and services' has the meaning given that term in section 
2350(1) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
127b the following new item:

``127c. Allied forces participating in combined operations: authority 
                            to provide logistic support, supplies, and 
                            services.''.

SEC. 1202. TEMPORARY AUTHORITY TO USE ACQUISITION AND CROSS-SERVICING 
              AGREEMENTS TO LEND CERTAIN MILITARY EQUIPMENT TO FOREIGN 
              FORCES IN IRAQ AND AFGHANISTAN FOR PERSONNEL PROTECTION 
              AND SURVIVABILITY.

    (a) Authority.--
            (1) In general.--Subject to paragraphs (2), (3), and (4), 
        the Secretary of Defense may treat covered military equipment 
        as logistic support, supplies, and services under subchapter I 
        of chapter 138 of title 10, United States Code, for the purpose 
        of providing for the use of such equipment by military forces 
        of a nation participating in combined operations with the 
        United States in Iraq or Afghanistan.
            (2) Required determinations.--Equipment may be provided to 
        the military forces of a nation under the authority of this 
        section only upon--
                    (A) a determination by the Secretary of Defense 
                that the United States forces in the combined operation 
                have no unfilled requirements for that equipment; and
                    (B) a determination by the Secretary of Defense, 
                with the concurrence of the Secretary of State, that it 
                is in the national security interest of the United 
                States to provide for the use of such equipment by the 
                military forces of that nation under this section.
            (3) Limitation on use of equipment.--Equipment provided to 
        the military forces of a nation under the authority of this 
        section may be used by those forces only in Iraq or Afghanistan 
        and only for personnel protection or to aid in the personnel 
        survivability of those forces.
            (4) Limitation on duration of provision of equipment.--
        Equipment provided to the military forces of a nation under the 
        authority of this section may be used by the military forces of 
        that nation for not longer than one year.
    (b) Semiannual Reports to Congressional Committees.--
            (1) Use of authority during first six months of fiscal 
        year.--If the authority provided in subsection (a) is exercised 
        during the first six months of a fiscal year, the Secretary of 
        Defense shall submit to the specified congressional committees 
        a report on that exercise of such authority not later than the 
        following April 30.
            (2) Use of authority during second six months of fiscal 
        year.--If the authority provided in subsection (a) is exercised 
        during the second six months of a fiscal year, the Secretary of 
        Defense shall submit to the specified congressional committees 
        a report on that exercise of such authority not later than the 
        following October 30.
            (3) Content.--Each report under paragraph (1) or (2) shall 
        include, with respect to each exercise of the authority 
        provided in subsection (a) during the period covered by the 
        report, the following:
                    (A) A description of the basis for the 
                determination of the Secretary of Defense that it is in 
                the national security interests of the United States to 
                provide for the use of covered military equipment in 
                the manner authorized in subsection (a).
                    (B) Identification of each foreign force that 
                receives such equipment.
                    (C) A description of the type, quantity, and value 
                of the equipment provided to each foreign force that 
                receives such equipment.
                    (D) A description of the terms and duration of the 
                provision of the equipment to each foreign force that 
                receives such equipment.
            (4) Coordination.--Each report under paragraph (1) or (2) 
        shall be prepared in coordination with the Secretary of State.
    (c) Limitations on Provision of Military Equipment.--The provision 
of military equipment under this section is subject to the provisions 
of the Arms Export Control Act (22 U.S.C. 2751 et seq.) and of any 
other export control process under laws relating to the transfer of 
military equipment and technology to foreign nations.
    (d) Definitions.--In this section:
            (1) The term ``covered military equipment'' means items 
        designated as significant military equipment in categories I, 
        II, III, and VII of the United States Munitions List under 
        section 38(a)(1) of the Arms Export Control Act (22 U.S.C. 
        2778(a)(1)).
            (2) The term ``specified congressional committees'' means--
                    (A) the Committee on Armed Services and the 
                Committee on Foreign Relations of the Senate; and
                    (B) the Committee on Armed Services and the 
                Committee on International Relations of the House of 
                Representatives.
    (e) Expiration.--The authority to provide military equipment to the 
military forces of a foreign nation under this section expires on 
September 30, 2008.

SEC. 1203. RECODIFICATION AND REVISION TO LAW RELATING TO DEPARTMENT OF 
              DEFENSE HUMANITARIAN DEMINING ASSISTANCE.

    (a) Repeal.--Section 401 of title 10, United States Code, is 
amended--
            (1) in subsection (a), by striking paragraph (4);
            (2) in subsection (b)--
                    (A) by striking ``(1)'' after ``(b)''; and
                    (B) by striking paragraph (2);
            (3) in subsection (c), by striking paragraphs (2) and (3); 
        and
            (4) in subsection (e), by striking paragraph (5).
    (b) Recodification and Revision.--
            (1) In general.--Chapter 20 of such title is amended by 
        adding at the end the following new section:
``Sec. 407. Humanitarian demining assistance: authority; limitations
    ``(a) Authority.--(1) Under regulations prescribed by the Secretary 
of Defense, the Secretary of a military department may carry out 
humanitarian demining assistance in conjunction with authorized 
military operations of the armed forces in a country if the Secretary 
concerned determines that the assistance will promote either--
            ``(A) the security interests of both the United States and 
        the country in which the activities are to be carried out; or
            ``(B) the specific operational readiness skills of the 
        members of the armed forces who participate in the activities.
    ``(2) Humanitarian demining assistance under this section shall 
complement, and may not duplicate, any other form of social or economic 
assistance which may be provided to the country concerned by any other 
department or agency of the United States.
    ``(3) The Secretary of Defense shall ensure that no member of the 
armed forces, while providing humanitarian demining assistance under 
this section--
            ``(A) engages in the physical detection, lifting, or 
        destroying of landmines or other explosive remnants of war 
        (unless the member does so for the concurrent purpose of 
        supporting a United States military operation); or
            ``(B) provides such assistance as part of a military 
        operation that does not involve the armed forces.
    ``(b) Limitations.--(1) Humanitarian demining assistance may not be 
provided under this section unless the Secretary of State specifically 
approves the provision of such assistance.
    ``(2) Any authority provided under any other provision of law to 
provide humanitarian demining assistance to a foreign country shall be 
carried out in accordance with, and subject to, the limitations 
prescribed in this section.
    ``(c) Expenses.--(1) Expenses incurred as a direct result of 
providing humanitarian demining assistance under this section to a 
foreign country shall be paid for out of funds specifically 
appropriated for the purpose of the provision by the Department of 
Defense of overseas humanitarian assistance.
    ``(2) Expenses covered by paragraph (1) include the following:
            ``(A) Travel, transportation, and subsistence expenses of 
        Department of Defense personnel providing such assistance.
            ``(B) The cost of any equipment, services, or supplies 
        acquired for the purpose of carrying out or supporting 
        humanitarian demining activities, including any nonlethal, 
        individual, or small-team equipment or supplies for clearing 
        landmines or other explosive remnants of war that are to be 
        transferred or otherwise furnished to a foreign country in 
        furtherance of the provision of assistance under this section.
    ``(3) The cost of equipment, services, and supplies provided in any 
fiscal year under this section may not exceed $10,000,000.
    ``(d) Annual Report.--The Secretary of Defense shall include in the 
annual report under section 401 of this title a separate discussion of 
activities carried out under this section during the preceding fiscal 
year, including--
            ``(1) a list of the countries in which humanitarian 
        demining assistance was carried out during the preceding fiscal 
        year; and
            ``(2) the amount expended in carrying out such assistance 
        in each such country during the preceding fiscal year.
    ``(e) Humanitarian Demining Assistance Defined.--In this section, 
the term `humanitarian demining assistance' means detection and 
clearance of landmines and other explosive remnants of war, including 
activities related to the furnishing of education, training, and 
technical assistance with respect to the detection and clearance of 
landmines and other explosive remnants of war.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``407. Humanitarian demining assistance: authority; limitations.''.

SEC. 1204. ENHANCEMENTS TO REGIONAL DEFENSE COMBATING TERRORISM 
              FELLOWSHIP PROGRAM.

    (a) Authorized Purposes.-- Subsection (a) of section 2249c of title 
10, United States Code, is amended by striking ``associated with'' and 
all that follows and inserting: ``associated with the education and 
training of foreign military officers, ministry of defense officials, 
or security officials at military or civilian educational institutions, 
regional centers, conferences, seminars, or other training programs 
conducted under the Regional Defense Combating Terrorism Fellowship 
Program. Costs for which payment may be made under this section include 
the costs of transportation and travel and subsistence costs.''.
    (b) Annual Limitation on Amount Obligated.--Subsection (b) of such 
section is amended by striking ``$20,000,000'' and inserting 
``$25,000,000''.
    (c) Expenditures Across Fiscal Years.--Such section is further 
amended by adding at the end the following new subsection:
    ``(d) Obligation of Funds Across Fiscal Years.--Funds made 
available for a fiscal year may be obligated for the total cost of an 
education or training program conducted under subsection (a) that 
begins in that fiscal year, including a program that begins in that 
fiscal year and ends in the next fiscal year, so long as the duration 
of the program does not exceed one year.''.
    (d) Clerical Amendments.--
            (1) Reference to program.--Subsection (c)(3) of such 
        section is amended by striking ``Regional Defense 
        Counterterrorism Fellowship Program'' and inserting ``program 
        referred to in subsection (a)''
            (2) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 2249c. Regional Defense Combating Terrorism Fellowship Program: 
              authority to use appropriated funds for costs associated 
              with education and training of foreign officials''.
            (3) Table of sections.--The item relating to such section 
        in the table of sections at the beginning of subchapter I of 
        chapter 134 of such title is amended to read as follows

``2249c. Regional Defense Combating Terrorism Fellowship Program: 
                            authority to use appropriated funds for 
                            costs associated with education and 
                            training of foreign officials.''.

SEC. 1205. CAPSTONE OVERSEAS FIELD STUDIES TRIPS TO PEOPLE'S REPUBLIC 
              OF CHINA AND REPUBLIC OF CHINA ON TAIWAN.

    Section 2153 of title 10, United States Code, is amended by adding 
at the end of the following new subsection:
    ``(c) Overseas Field Studies to China and Taiwan.--The Secretary of 
Defense shall direct the National Defense University to ensure that 
visits to China and Taiwan are an integral part of the field study 
programs conducted by the university as part of the military education 
course carried out pursuant to subsection (a) and that such field study 
programs include annually at least one class field study trip to the 
People's Republic of China and at least one class field study trip to 
the Republic of China on Taiwan.''.

SEC. 1206. MILITARY EDUCATIONAL EXCHANGES BETWEEN SENIOR OFFICERS AND 
              OFFICIALS OF THE UNITED STATES AND TAIWAN.

    (a) Defense Exchanges.--The Secretary of Defense shall undertake a 
program of senior military officer and senior official exchanges with 
Taiwan designed to improve Taiwan's defenses against the People's 
Liberation Army of the People's Republic of China.
    (b) Exchanges Described.--For purposes of this section, the term 
``exchange'' means an activity, exercise, event, or observation 
opportunity between Armed Forces personnel or Department of Defense 
officials of the United States and armed forces personnel and officials 
of Taiwan.
    (c) Focus of Exchanges.--The senior military officer and senior 
official exchanges undertaken pursuant to subsection (a) shall include 
exchanges focused on the following, especially as they relate to 
defending Taiwan against potential submarine attack and potential 
missile attack:
            (1) Threat analysis
            (2) Military doctrine
            (3) Force planning
            (4) Logistical support
            (5) Intelligence collection and analysis
            (6) Operational tactics, techniques, and procedures.
    (d) Civil-Military Affairs.--The senior military officer and senior 
official exchanges undertaken pursuant to subsection (a) shall include 
activities and exercises focused on civil-military relations, including 
parliamentary relations.
    (e) Location of Exchanges.--The senior military officer and senior 
official exchanges undertaken pursuant to subsection (a) shall be 
conducted in both the United States and Taiwan.
    (f) Definitions.--For purposes of this section:
            (1) The term ``senior military officer'' means a general or 
        flag officer of the Armed Forces on active duty.
            (2) The term ``senior official'' means a civilian official 
        of the Department of Defense at the level of Deputy Assistant 
        Secretary or above.

     Subtitle B--Nonproliferation Matters and Countries of Concern

SEC. 1211. PROCUREMENT RESTRICTIONS AGAINST FOREIGN PERSONS THAT 
              TRANSFER CERTAIN DEFENSE ARTICLES AND SERVICES TO THE 
              PEOPLE'S REPUBLIC OF CHINA.

    (a) Declaration of Policy.--Congress declares that it is the policy 
of the United States to deny the People's Republic of China such 
defense goods and defense technology that could be used to threaten the 
United States or undermine the security of Taiwan or the stability of 
the Western Pacific region.
    (b) Procurement Sanction.--(1) The Secretary of Defense may not 
procure, by contract or otherwise, any goods or services from--
            (A) any foreign person the Secretary of Defense determines 
        has, with actual knowledge, on or after the date of the 
        enactment of this Act, exported, transferred, or otherwise 
        provided to governmental or nongovernmental entities of the 
        People's Republic of China any item or class of items on the 
        United States Munitions List (or any item or class of items 
        that are identical, substantially identical, or directly 
        competitive to an item or class of items on the United States 
        Munitions List); or
                    (B) any foreign person the Secretary of Defense 
                determines--
                            (i) is a successor entity to a person 
                        referred to in paragraph (1):
                            (ii) is a parent or subsidiary of a person 
                        referred to in paragraph (1); or
                            (iii) is an affiliate of a person referred 
                        to in paragraph (1) if that affiliate is 
                        controlled in fact by such person.
            (2) The prohibition under paragraph (1) with respect to a 
        foreign person shall last for a period of five years after a 
        determination is made by the Secretary of Defense with respect 
        to that person under paragraph (1)(A).
    (c) Public Availability of List of Sanctioned Persons.--(1) The 
Secretary of Defense shall annually publish in the Federal Register a 
current list of any foreign persons sanctioned under subsection (b). 
The removal of foreign persons from, and the addition of foreign 
persons to, the list shall also be published.
            (2) The Secretary shall maintain the list published under 
        paragraph (1) on the internet website of the Department of 
        Defense.
    (c) Removal From List of Sanctioned Persons.--The Secretary of 
Defense may remove a person from the list of sanctioned persons 
referred to in subsection (c) only after the five-year prohibition 
period imposed under subsection (b) with respect to the person has 
expired.
    (d) Exceptions.--(1) Subsection (b) shall not apply
                    (A) to contracts, or subcontracts under such 
                contracts, in existence on the date of the enactment of 
                this Act, including options under such contracts;
                    (B) if the Secretary of Defense determines in 
                writing that the person to which the sanctions would 
                otherwise be applied is a sole source supplier of the 
                goods or services being procured, that the goods or 
                services are essential, and that alternative sources 
                are not readily or reasonably available;
                    (C) in the case of a contract for routine servicing 
                and maintenance, if the Secretary of Defense determines 
                in writing alternative sources for performing the 
                contract are not readily or reasonably available; or
                    (D) if the Secretary of Defense determines in 
                writing that goods or services proposed to be procured 
                under the contract are essential to the national 
                security of the United States.
            (2) Determinations under paragraph (1) shall be published 
        in the Federal Register.
    (f) Definitions.--In this section:
            (1) The term ``foreign person'' has the meaning given the 
        term in section 14 of the Iran and Libya Sanctions Act of 1996 
        (50 U.S.C. 1701 note).
            (2) The term ``United States Munitions List'' means the 
        list referred to in section 38(a)(1) of the Arms Export Control 
        Act (22 U.S.C. 2778 (a)(1)).

                       Subtitle C--Other Matters

SEC. 1221. EXECUTION OF THE PRESIDENT'S POLICY TO MAKE AVAILABLE TO 
              TAIWAN DIESEL ELECTRIC SUBMARINES.

    (a) Findings.--Congress makes the following findings:
            (1) It is the policy of the United States under the Taiwan 
        Relations Act of 1979 to ``make available to Taiwan such 
        defense articles and defense services in such quantity as may 
        be necessary to enable Taiwan to maintain a sufficient self-
        defense capability''.
            (2) In April 2001, the President of the United States 
        approved for sale eight diesel electric submarines to the 
        Republic of China on Taiwan.
            (3) The buildup of attack submarines by the People's 
        Republic of China threatens the stability in the Taiwan Strait 
        and longstanding United States national security interests in 
        the Western Pacific.
            (4) Taiwan has a legitimate defense need for diesel 
        electric submarines.
            (5) The sale of diesel electric submarines to Taiwan 
        supports stability in the Taiwan Strait and Western Pacific.
            (6) The Legislative Yuan of the Republic of China on Taiwan 
        should make every effort to support the President of Taiwan to 
        fund the acquisition of diesel electric submarines from the 
        United States.
            (7) The sale of diesel electric submarines to Taiwan is 
        beneficial to the health and wellbeing of the United States 
        shipbuilding industrial base and, therefore, United States 
        national security.
    (b) Policy of the United States.--It shall be the policy of the 
United States to make available to Taiwan plans and options for design 
work and construction work on future diesel electric submarines under 
the United States foreign military sales process. The availability of 
such design work and construction work shall be made in a manner 
consistent with United States national disclosure policy and is subject 
to the provisions of the Arms Export Control Act (22 U.S.C. 2751 et 
seq.) and any other export control law of the United States.
    (c) Report.--Not later than 30 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to the congressional 
defense committees a report on the present and future efforts of the 
Department of the Navy to execute the policy of the President to sell 
diesel electric submarines to the Republic of China on Taiwan. The 
report shall include the following:
            (1) Ongoing activities by the Navy International Programs 
        Office, in consultation with the Defense Security and 
        Cooperation Agency, to make the Government of Taiwan aware of 
        available Foreign Military Sales options.
            (2) Future activities planned by the Navy International 
        Programs Office, in consultation with the Defense Security and 
        Cooperation Agency, to make the Government of Taiwan aware of 
        available Foreign Military Sales options to acquire diesel 
        electric submarines from the United States.
    (d) Definitions.--In this section:
            (1) The term ``design work'' means the process by which a 
        submarine is designed.
            (2) The term ``construction work'' means the process by 
        which a submarine is constructed.
            (3) The term ``activities'' means all interactions between 
        the Government of the United States and the Government of 
        Taiwan.

  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. Temporary authority to waive limitation on funding for 
                            chemical weapons destruction facility in 
                            Russia.
Sec. 1304. National Academy of Sciences study.

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 2007 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2007 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 $372,128,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2007 in 
section 301(19) for Cooperative Threat Reduction programs, the 
following amount may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia, 
        $76,985,000.
            (2) For nuclear weapons storage security in Russia, 
        $87,100,000.
            (3) For nuclear weapons transportation security in Russia, 
        $33,000,000.
            (4) For weapons of mass destruction proliferation 
        prevention in the states of the former Soviet Union, 
        $37,486,000.
            (5) For biological weapons proliferation prevention in the 
        former Soviet Union, $68,357,000.
            (6) For chemical weapons destruction in Russia, 
        $42,700,000.
            (7) For defense and military contacts, $8,000,000.
            (8) For activities designated as Other Assessments/
        Administrative Support, $18,500,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2007 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (8) 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 2007 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) In general.--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 2007 for a 
        purpose listed in any of the paragraphs in subsection (a) in 
        excess of the specific amount authorized for that purpose.
            (2) Notice-and-wait required.--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) Restriction.--The Secretary may not, under the 
        authority provided in paragraph (1), obligate amounts for a 
        purpose stated in any of paragraphs (6) through (8) of 
        subsection (a) in excess of 125 percent of the specific amount 
        authorized for such purpose.

SEC. 1303. TEMPORARY AUTHORITY TO WAIVE LIMITATION ON FUNDING FOR 
              CHEMICAL WEAPONS DESTRUCTION FACILITY IN RUSSIA.

    Section 1303 of the Ronald W. Reagan National Defense Authorization 
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2094; 22 U.S.C. 
5952 note) is amended--
            (1) in subsection (b), by striking ``shall expire on 
        December 31, 2006, and no waiver shall remain in effect after 
        that date'' and inserting ``shall expire upon completion of the 
        Chemical Weapons Destruction Facility currently under 
        construction at Shchuch'ye in the Russian Federation, and no 
        waiver shall remain in effect after that date''; and
            (2) by adding at the end the following new subsection:
    ``(c) Report.--Not later than 30 days after completion of the 
facility referred to in subsection (b), the Secretary of Defense shall 
submit to Congress a written notification that specifies the date of 
completion.''.

SEC. 1304. NATIONAL ACADEMY OF SCIENCES STUDY.

    (a) Study Required.--The Secretary of Defense shall enter into an 
arrangement with the National Academy of Sciences under which the 
Academy shall carry out a study to analyze lessons learned, past and 
present challenges, and possible options in effectively managing and 
facilitating threat reduction and nonproliferation projects under the 
Cooperative Threat Reduction program. The study shall cover all 
existing Cooperative Threat Reduction projects for securing or 
eliminating nuclear, chemical, and biological weapons and related 
systems in the states of the former Soviet Union.
    (b) Report.--Not later than December 31, 2007, the Secretary shall 
submit to Committee on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives a report on the study 
carried out under subsection (a). The report shall include a review and 
evaluation of each of the following matters:
            (1) Project management.
            (2) Interagency interaction concerning threat reduction and 
        nonproliferation projects of other Federal departments or 
        agencies.
            (3) Public outreach and community involvement.
            (4) Cooperation of Russia and of other states of the former 
        Soviet Union (including site access, visa approval, and 
        contractor support).
            (5) Legal frameworks.
            (6) Transparency.
            (7) Adequacy of funding from the United States and any 
        Cooperative Threat Reduction program partner.
            (8) Interaction with threat reduction and nonproliferation 
        projects of Global Partnership countries.
    (c) Funding.--Of the amounts made available pursuant to the 
authorization of appropriations in section 301(19) for Cooperative 
Threat Reduction programs, not more than $2,000,000 shall be available 
only to carry out this section.

            TITLE XIV--HOMELAND DEFENSE TECHNOLOGY TRANSFER

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Creation of Homeland Defense Technology Transfer Consortium.

SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Homeland Defense Technology 
Transfer Act of 2006''.

SEC. 1402. FINDINGS.

    Congress finds the following:
            (1) The Federal Government funds billions of dollars for 
        research each year that has the potential to meet the needs of 
        Federal, State, and local first responders, yet examples of 
        successful technology transitions are few and far between.
            (2) Congress has made repeated efforts to authorize the 
        Department of Defense to effectively transfer its technologies 
        to Federal, State, and local first responders. However, while 
        progress has been made in implementing these authorities, this 
        process can be significantly improved.
            (3) Although the Department of Defense Strategy for 
        Homeland Defense and Civil Support calls for active 
        participation in an interagency process that improves 
        interoperability and compatibility with public safety 
        technologies and initiatives, greater participation is needed 
        to ensure that all technologies used by the Department of 
        Defense in their homeland defense mission are interoperable and 
        compatible with standards being developed for public safety 
        technologies.
            (4) Even when technologies with promise have been 
        identified, additional research and development efforts are 
        needed to adapt these technologies into readily available, 
        affordable products. No program with a sense of urgency to 
        quickly produce results exists to bridge this gap.
            (5) Tragedies such as Hurricanes Katrina and Rita 
        demonstrate the need for prompt, decisive action by Congress to 
        solve a problem that has eluded attempts by the Department of 
        Defense to solve.
            (6) Legislation is needed to codify the process for 
        effectively moving and adapting needed technologies from the 
        Department of Defense to Federal, State, and local first 
        responders so that the lives of the American public and 
        emergency responders are protected to the maximum extent 
        possible.

SEC. 1403. CREATION OF HOMELAND DEFENSE TECHNOLOGY TRANSFER CONSORTIUM.

    (a) Authorization of Consortium.--In order to improve the speed and 
effectiveness of identifying, evaluating, deploying, and transferring 
to Federal, State, and local first responders technology items and 
equipment in support of homeland security as required by section 1401 
of the Bob Stump National Defense Authorization Act for Fiscal Year 
2003 (Public Law 107-314; 50 U.S.C. 2312 note) and work towards 
interoperability and compatibility of inter-agency homeland defense and 
security technologies, it is urgent that the technology adaptation and 
transfer process be consistent within the Department of Defense. 
Towards that end, the Secretary of Defense is authorized to create a 
Homeland Defense Technology Transfer Consortium.
    (b) Composition of Consortium.--To contribute to the rapid 
development and adoption of new technologies needed to ensure the 
safety of the United States public and the welfare of emergency service 
providers, the Homeland Defense Technology Transfer Consortium shall be 
composed of--
            (1) organizations and entities working with the Department 
        of Defense;
            (2) Federal, State, and local first responders; and
            (3) other relevant Federal agencies with established 
        expertise in identifying, assessing, testing, evaluating, and 
        training emergency response and other public safety entities.
    (c) Authorities of Consortium.--
            (1) Process improvements.--The Homeland Defense Technology 
        Transfer Consortium shall systematize--
                    (A) the process for the identification, assessment, 
                adaptation, and transition of defense technologies that 
                have the potential to enhance public safety and improve 
                homeland security, thereby assisting the Department of 
                Defense in meeting its statutory obligation to 
                identify, evaluate, deploy, and transfer to Federal, 
                State, and local first responders technology items and 
                equipment of homeland security; and
                    (B) the process of coordinating and acting as 
                liaison on behalf of the Department of Defense with 
                other Federal agencies as appropriate to collect and 
                prioritize Federal, State, and local first responder 
                technology requirements already gathered by those 
                entities.
            (2) Funding recommendations.--The Consortium shall submit 
        recommendations to the Secretary of Defense for funding for the 
        development, adaptation, test and evaluation, or other needed 
        activities for any technology identified under paragraph (1) 
        with a high potential to benefit Federal, State, and local 
        first responders.
            (3) Technology integration.--The Consortium may assist in 
        the integration of new technologies into appropriate first 
        responder training exercises to maximize their rapid adoption 
        as well as disseminating best practices in the profession.
            (4) Interoperability and compatibility.--The Consortium, 
        under the direction of the Secretary of Defense, shall act as 
        liaison with relevant Federal agencies, as well as Federal, 
        State, and local first responders where appropriate, to work 
        towards ensuring that technologies used by the Department of 
        Defense in its homeland defense mission are interoperable and 
        compatible with standards being developed for technologies used 
        by Federal, State, and local first responders.
    (d) Annual Report of the Consortium.--The Homeland Defense 
Technology Transfer Consortium shall submit to the President and 
Congress an annual report on its activities. Each report shall include, 
at a minimum--
            (1) a listing of specific Department of Defense and related 
        technologies it has identified that appear to meet needs of 
        Federal, State, and local first responders;
            (2) the results of any tests and evaluations conducted on 
        particular technologies, except that no company proprietary 
        information may be disclosed in the report;
            (3) a listing of any recommendations the Consortium has 
        made to the Department of Defense that developmental, adaptive, 
        test and evaluation, or other funding be provided related to 
        the development and deployment of technologies identified by 
        the Consortium of particular interest for meeting the needs of 
        emergency response providers;
            (4) a listing of any technology development activities 
        undertaken under the authorities of subsection (c);
            (5) a listing of any technologies that have been 
        subsequently used by Federal, State, and local first responders 
        as a result of activities of the Consortium; and
            (6) any recommendations determined appropriate by the 
        Consortium on barriers to the prompt deployment of technologies 
        needed by Federal, State, and local first responders.
    (e) Annual Report by the Secretary of Defense.--The Secretary of 
Defense shall submit to the President and Congress an annual report on 
activities the Department of Defense has taken to identify, test and 
evaluate, or develop technologies with application to Federal, State, 
and local first responders. Each report shall include, at a minimum, a 
description of the activities the Department of Defense has taken 
pursuant to recommendations of the Homeland Defense Technology Transfer 
Consortium, including activities to fund development or testing and 
evaluation of technologies created under programs of the Department.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated $2,500,000 for the Department of Defense Office of 
Homeland Defense to fund the activities of the Homeland Defense 
Technology Transfer Consortium in each of fiscal years 2007 and 2008, 
for carrying out the duties of the Consortium under this section.

  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.

SEC. 1501. PURPOSE.

    The purpose of this title is to authorize estimated future 
emergency supplemental appropriations for the Department of Defense for 
fiscal year 2007 to provide funds for additional costs due to Operation 
Iraqi Freedom and Operation Enduring Freedom.

SEC. 1502. ARMY PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for procurement accounts of the Army in amounts as follows:
            (1) For aircraft procurement, $232,400,000.
            (2) For ammunition procurement, $328,341,000.
            (3) For weapons and tracked combat vehicles procurement, 
        $1,029,672,000.
            (4) For other procurement, $2,183,430,000.

SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2007 for procurement accounts for the Navy in amounts as 
follows:
            (1) For weapons procurement, $131,400,000.
            (2) For other procurement, $44,700,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2007 for the procurement account for the Marine Corps 
in the amount of $636,125,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2007 for the procurement account for 
ammunition for the Navy and the Marine Corps in the amount of 
$143,150,000.

SEC. 1504. AIR FORCE PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for procurement accounts for the Air Force in amounts as follows:
            (1) For aircraft procurement, $201,550,000.
            (2) For missile procurement, $32,650,000.
            (3) For other procurement, $62,650,000.

SEC. 1505. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

     Funds are hereby authorized to be appropriated for fiscal year 
2007 for the procurement account for Defense-wide in the amount of 
$140,200,000.

SEC. 1506. RESEARCH, DEVELOPMENT, TEST AND EVALUATION.

     Funds are hereby authorized to be appropriated for fiscal year 
2007 for the use of the Department of Defense for research, 
development, test and evaluation as follows:
            (1) For the Army, $25,500,000.
            (2) For Defense-wide activities, $5,000,000.
            (3) For the Air Force, $7,000,000.

SEC. 1507. OPERATION AND MAINTENANCE.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the use of the Armed Forces for expenses, not otherwise provided 
for, for operation and maintenance, in amounts as follows:
            (1) For the Army, $22,396,986,000.
            (2) For the Navy, $1,834,560,000.
            (3) For the Marine Corps, $1,485,920,000.
            (4) For the Air Force, $2,822,998,000.
            (5) For Defense-wide activities, $3,377,402,000.
            (6) For the Army National Guard, $50,000,000.
            (7) For the Air National Guard, $15,400,000.

SEC. 1508. DEFENSE HEALTH PROGRAM.

    Funds are hereby authorized to be appropriated for the Department 
of Defense for fiscal year 2007 for expenses, not otherwise provided 
for, the Defense Health Program, in the amount of $950,200,000 for 
operation and maintenance.

SEC. 1509. CLASSIFIED PROGRAMS.

    Funds are hereby authorized to be appropriated to the Department of 
Defense for fiscal year 2007 for Classified Programs, in the amount of 
$2,500,000,000.

SEC. 1510. MILITARY PERSONNEL.

     There is hereby authorized to be appropriated to the Department of 
Defense for military personnel accounts for fiscal year 2007 a total of 
$9,362,766,000.

SEC. 1511. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

    The amounts authorized to be appropriated by this title are in 
addition to amounts otherwise authorized to be appropriated by this 
Act.

SEC. 1512. TRANSFER AUTHORITY.

    (a) Authority to Transfer Authorizations.--
            (1) Authority.--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 title for fiscal 
        year 2007 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) Limitation.--The total amount of authorizations that 
        the Secretary may transfer under the authority of this section 
        may not exceed $3,000,000,000. The transfer authority provided 
        in this section is in addition to any other transfer authority 
        available to the Secretary of Defense.
    (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;
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress; and
            (3) may not be combined with the authority under section 
        1001.
    (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.--A transfer may be made under the authority 
of this section only after the Secretary of Defense--
            (1) consults with the chairmen and ranking members of the 
        congressional defense committees with respect to the proposed 
        transfer; and
            (2) after such consultation, notifies those committees in 
        writing of the proposed transfer not less than five days before 
        the transfer is made.

SEC. 1513. AVAILABILITY OF FUNDS.

    Funds in this title shall be made available for obligation to the 
Army, Navy, Marine Corps, Air Force, and Defense-wide components by the 
end of the second quarter of fiscal year 2007.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Joel Hefley Military 
Construction Authorization Act for Fiscal Year 2007''.

                             TITLE I--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. 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 or locations inside the 
United States, and in the amounts, set forth in the following table:

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                   State                                 Installation or Location                    Amount
----------------------------------------------------------------------------------------------------------------
Alabama...................................  Redstone Arsenal..................................        $4,300,000
Alaska....................................  Fort Richardson...................................       $70,656,000
California................................  Fort Irwin........................................       $18,200,000
Colorado..................................  Fort Carson.......................................       $30,800,000
Georgia...................................  Fort Gillem.......................................       $15,000,000
                                            Fort Stewart/Hunter Army Air Field................       $95,300,000
Hawaii....................................  Schofield Barracks................................       $54,500,000
Kansas....................................  Fort Leavenworth..................................       $23,200,000
                                            Fort Riley........................................       $37,200,000
Kentucky..................................  Blue Grass Army Depot.............................        $3,500,000
                                            Fort Campbell.....................................      $123,500,000
Louisiana.................................  Fort Polk.........................................        $6,100,000
Maryland..................................  Fort Detrick......................................       $12,400,000
Missouri..................................  Fort Leonard Wood.................................       $27,600,000
New Jersey................................  Picatinny Arsenal.................................        $9,900,000
New York..................................  Fort Drum.........................................      $218,600,000
North Carolina............................  Fort Bragg........................................       $89,000,000
                                            Sunny Point Military Ocean Terminal...............       $46,000,000
Oklahoma..................................  McAlester Army Ammunition Plant...................        $3,050,000
Texas.....................................  Corpus Christi Army Depot.........................       $12,200,000
                                            Fort Bliss........................................        $8,200,000
                                            Fort Hood.........................................       $93,000,000
Utah......................................  Dugway Proving Ground.............................       $14,400,000
Virginia..................................  Fort Lee..........................................        $4,150,000
Washington................................  Fort Lewis........................................      $502,600,000
----------------------------------------------------------------------------------------------------------------

    (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 installations or locations outside the 
United States, and in the amounts, set forth in the following table:

                     Army: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Grafenwoehr..............    $157,632,000
                               Vilseck..................     $19,000,000
Italy........................  Vicenza..................    $223,000,000
Japan........................  Camp Hansen..............      $7,150,000
Korea........................  Camp Humphreys...........     $77,000,000
                               Yongpyong................      $7,400,000
------------------------------------------------------------------------

    (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 unspecified installations or locations in the 
amount set forth in the following table:

                       Army: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Unspecified Worldwide....     $34,800,000
------------------------------------------------------------------------

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 and supporting 
facilities) at the installations or locations, in the number of units, 
and in the amounts set forth in the following table:

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                       Installation or Location             Units              Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Richardson................  162..................     $70,000,000
                                          Fort Wainwright................  234..................    $132,000,000
Arizona.................................  Fort Huachuca..................  119..................     $32,000,000
Arkansas................................  Pine Bluff Arsensal............  10...................      $2,900,000
Wisconsin...............................  Fort McCoy.....................  13...................      $4,900,000
----------------------------------------------------------------------------------------------------------------

    (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 $16,332,000.

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(6)(5)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $320,659,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal years beginning after September 30, 2006, 
for military construction, land acquisition, and military family 
housing functions of the Department of the Army in the total amount of 
$3,389,046,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $1,217,356,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $491,182,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2101(c), $34,800,000.
            (4) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $23,930,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $220,830,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $578,791,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $674,657,000.
            (7) For the construction of increment 2 of a barracks 
        complex at Fort Drum, New York, authorized by section 2101(a) 
        of the Military Construction Authorization Act for Fiscal Year 
        2006 (division B of Public Law 109-163; 119 Stat. 3485), 
        $16,500,000.
            (8) For the construction of increment 2 of a barracks 
        complex for the 2nd Brigade at Fort Bragg, North Carolina, 
        authorized by section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of Public 
        Law 109-163; 119 Stat. 3485), $31,000,000.
            (9) For the construction of increment 2 of a barracks 
        complex for the 3nd Brigade at Fort Bragg, North Carolina, 
        authorized by section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of Public 
        Law 109-163; 119 Stat. 3485), $50,000,000.
            (10) For the construction of increment 2 of a barracks 
        complex for divisional artillery at Fort Bragg, North Carolina, 
        authorized by section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of Public 
        Law 109-163; 119 Stat. 3485), $37,000,000.
            (11) For the construction of increment 2 of a defense 
        access road at Fort Belvoir, Virginia, authorized by section 
        2101(a) of the Military Construction Authorization Act for 
        Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
        3486), $13,000,000.
    (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 2101 of this 
Act may not exceed the sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1), (2), and (3) of subsection (a).
            (2) $306,000,000 (the balance of the amount authorized 
        under section 2101(a) for construction of a brigade complex for 
        Fort Lewis, Washington).

                             TITLE II--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 
                            2004 and 2005 projects.

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 or locations inside the 
United States, and in the amounts, set forth in the following table:

                                         Navy: Inside the United States
----------------------------------------------------------------------------------------------------------------
                   State                                 Installation or Location                    Amount
----------------------------------------------------------------------------------------------------------------
Arizona...................................  Marine Corps Air Station, Yuma....................        $5,966,000
California................................  Marine Corps Air Station, Camp Pendleton..........        $6,412,000
                                            Marine Corps Air Station, Miramar.................        $2,968,000
                                            Marine Corps Base, Camp Pendleton.................      $106,142,000
                                            Marine Corps Base, Twentynine Palms...............       $27,217,000
                                            Naval Air Station, North Island...................       $21,535,000
                                            Naval Support Activity, Monterey..................        $7,380,000
Connecticut...............................  Naval Submarine Base, New London..................        $9,580,000
Florida...................................  Naval Air Station, Pensacola......................       $13,486,000
Georgia...................................  Marine Corps Logistics Base, Albany...............       $70,540,000
                                            Naval Submarine Base, Kings Bay...................       $20,282,000
Hawaii....................................  Naval Base, Pearl Harbor..........................       $48,338,000
                                            Naval Magazine, Pearl Harbor......................        $6,010,000
Indiana...................................  Naval Support Activity, Crane.....................        $6,730,000
Maryland..................................  Naval Air Station, Patuxent River.................       $16,316,000
                                            National Maritime Intelligence Center, Suitland...       $67,939,000
North Carolina............................  Marine Corps Air Station, Cherry Point............        $2,790,000
                                            Marine Corps Air Station, New River...............       $21,500,000
                                            Marine Corps Base, Camp Lejeune...................      $160,904,000
South Carolina............................  Marine Corps Air Station, Beaufort................       $25,575,000
Virginia..................................  Marine Corps Base, Quantico.......................       $30,628,000
                                            Naval Shipyard, Norfolk...........................       $34,952,000
                                            Naval Station, Norfolk............................       $12,062,000
                                            Naval Support Activity, Norfolk...................       $41,712,000
Washington................................  Naval Base, Kitsap................................       $17,617,000
                                            Naval Air Station, Whidbey Island.................       $67,303,000
----------------------------------------------------------------------------------------------------------------

    (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 installations or locations outside the 
United States, and in the amounts, set forth in the following table:

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Diego Garcia.................  Diego Garcia.............     $37,473,000
Italy........................  Naval Air Station,            $13,051,000
                                Sigonella.
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2204(a)(3), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for unspecified installations or locations in the 
amount set forth in the following table:

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location                     Project               Amount
------------------------------------------------------------------------
                               Helicopter Support            $12,185,000
                                Facility.
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(6)(A), the Secretary of the Navy may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations, in the number of units, and in the 
amounts set forth in the following table:

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                Location                           Installation                    Units              Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Marine Corps Log. Base, Barstow  74...................     $27,851,000
Guam....................................   Naval Station, Guam...........  176..................     $98,174,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2204(a)(6)(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 $2,785,000.

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)(6)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $180,146,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal years beginning after September 30, 2006, 
for military construction, land acquisition, and military family 
housing functions of the Department of the Navy in the total amount of 
$2,037,953,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $764,572,000,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $50,524,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2201(c), $12,185,000.
            (4) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $8,939,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $72,857,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $308,956,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $509,126,000.
            (7) For the construction of increment 2 of a reclamation 
        and conveyance project for Marine Corps Base, Camp Pendleton, 
        California, authorized by section 2201(a) of the Military 
        Construction Authorization Act of Fiscal Year 2006 (division B 
        of Public Law 109-163; 119 Stat. 3490), $33,290,000.
            (8) For the construction of increment 2 of a helicopter 
        hangar replacement at Naval Air Station, Jacksonville, Florida, 
        authorized by section 2201(a) of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of Public 
        Law 109-163; 119 Stat. 3489), $43,250,000.
            (9) For the construction of increment 2 of recruit training 
        barracks infrastructure upgrades at Recruit Training Command, 
        Great Lakes, Illinois, authorized by section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3490), 
        $23,589,000.
            (10) For the construction of increment 2 of a field house 
        at the United States Naval Academy, Annapolis, Maryland, 
        authorized by section 2201(a) of the Military Construction 
        Authorization Act of Fiscal Year 2006 (division B of Public Law 
        109-163; 119 Stat. 3490), $21,685,000.
            (11) For the construction of increment 2 of the replacement 
        of Ship Repair Pier 3 at Naval Station, Norfolk, Virginia, 
        authorized by section 2201(a) of the Military Construction 
        Authorization Act of Fiscal Year 2006 (division B of Public Law 
        109-163; 119 Stat. 3490), $30,939,000.
            (12) For the construction of increment 2 of an addition to 
        Hockmuth Hall, Marine Corps Base, Quantico, Virginia, 
        authorized by section 2201(a) of the Military Construction 
        Authorization Act of Fiscal Year 2006 (division B of Public Law 
        109-163; 119 Stat. 3490), $10,159,000.
            (13) For the construction of increment 2 of wharf upgrades 
        at Naval Station Guam, Marianas Islands, authorized by section 
        2201(b) of the Military Construction Authorization Act for 
        Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
        3490), $29,772,000.
            (14) For the construction of increment 2 of wharf upgrades 
        at Yokosuka, Japan, authorized by section 2201(b) of the 
        Military Construction Authorization Act of Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3490), 
        $44,360,000.
            (15) For the construction of increment 2 of bachelor 
        quarters at Naval Station, Everett, Washington, authorized by 
        section 2201(a) of the Military Construction Authorization Act 
        of Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3490), $20,917,000.
            (16) For the construction of increment 3 of the limited 
        area production and storage complex at Strategic Weapons 
        Facility Pacific, Bangor, Washington, authorized by section 
        2201(a) of the Military Construction Authorization Act for 
        Fiscal Year 2005 (division B of Public Law 108-375; 118 Stat. 
        2105), as amended by section 2206 of this Act, $14,274,000.
            (17) For the construction of the next increment of the 
        outlaying landing field facilities at Washington County, North 
        Carolina, authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2004 (division B 
        of Public Law 108-136; 117 Stat. 1704), as amended by section 
        2205(a) of this Act, $7,926,000.
            (18) For the construction of increment 4 of pier 11 
        replacement at Naval Station, Norfolk, Virginia, authorized by 
        section 2201(a) of the Military Construction Authorization Act 
        for Fiscal Year 2004 (division B of Public Law 108-136; 117 
        Stat. 1704), $30,633,000.
    (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 the sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1), (2), and (3) of subsection (a).
            (2) $56,159,000 (the balance of the amount authorized under 
        section 2201(a) for construction of an addition to the National 
        Maritime Intelligence Center, Suitland, Maryland).
            (3) $31,153,000 (the balance of the amount authorized under 
        section 2201(a) to recapitalize Hangar 5 at Naval Air Station, 
        Whidbey Island, Washington).

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2004 AND 2005 PROJECTS.

    (a) Fiscal Year 2004 Inside the United States Project.--
            (1) Modification.--The table in section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 2004 
        (division B of Public Law 108-136; 117 Stat. 1704), as amended 
        by section 2205 of the Military Construction Authorization Act 
        for Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3492), is amended--
                    (A) at the end of the items relating to North 
                Carolina, by inserting a new item entitled ``Navy 
                Outlying Landing Field, Washington County'' in the 
                amount of ``$193,260,000'';
                    (B) by striking the item relating to Various 
                Locations, CONUS; and
                    (C) by striking the amount identified as the total 
                in the amount column and inserting ``$1,489,424,000''.
            (2) Conforming amendments.--Section 2204(b)(6) of that Act 
        (117 Stat. 1706) is amended--
                    (A) by striking ``$28,750,000'' and inserting 
                ``$165,650,000''; and
                    (B) by striking ``outlying landing field 
                facilities, various locations in the continental United 
                States'' and inserting ``an outlying landing field in 
                Washington County, North Carolina''.
    (b) Fiscal Year 2005 Inside the United States Project.--
            (1) Modification.--The table in section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 2005 
        (division B of Public Law 108-375; 118 Stat. 2105), as amended 
        by section 2206 of the Military Construction Authorization Act 
        for Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3493), is amended--
                    (A) by striking the item relating to Navy Outlying 
                Landing Field, Washington County, North Carolina; and
                    (B) by striking the amount identified as the total 
                in the amount column and inserting ``$825,479,000''.
            (2) Conforming amendments.--Section 2204 of that Act (118 
        Stat. 2107), as amended by section 2206 of the Military 
        Construction Authorization Act for Fiscal Year 2006 (division B 
        of Public Law 109-163; 119 Stat. 3493), is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking 
                        ``$752,927,000'' and inserting ``722,927,000''; 
                        and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(10) For the construction of increment 2 of the Navy 
        outlying landing field in Washington County, North Carolina, 
        authorized by section 2201(a) of the Military Construction 
        Authorization Act for Fiscal Year 2004 (division B of Public 
        Law 108-136; 117 Stat. 1704), as amended by section 2205(a) of 
        the Military Construction Authorization Act for Fiscal Year 
        2007, $30,000,000.''; and
                    (B) in subsection (b), by striking paragraph (3).

                          TITLE III--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. 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 or locations 
inside the United States, and in the amounts, set forth in the 
following table:

                                       Air Force: Inside the United States
----------------------------------------------------------------------------------------------------------------
                    State                                 Installation or Location                   Amount
----------------------------------------------------------------------------------------------------------------
Alaska......................................  Eielson Air Force Base..........................       $38,300,000
                                              Elmendorf Air Force Base........................       $56,100,000
Arizona.....................................  Davis-Monthan Air Force Base....................       $11,800,000
Arkansas....................................  Little Rock Air Force Base......................        $9,800,000
California..................................  Beale Air Force Base............................       $28,000,000
                                              Travis Air Force Base...........................       $73,900,000
Colorado....................................  Buckley Air Force Base..........................       $10,700,000
                                              Peterson Air Force Base.........................        $4,900,000
                                              Schriever Air Force Base........................       $21,000,000
Delaware....................................  Dover Air Force Base............................       $26,400,000
Florida.....................................  Eglin Air Force Base............................       $30,350,000
                                              Hurlburt Field..................................       $32,950,000
                                              MacDill Air Force Base..........................       $71,000,000
                                              Tyndall Air Force Base..........................        $8,200,000
Georgia.....................................  Robins Air Force Base...........................       $45,600,000
Hawaii......................................  Hickam Air Force Base...........................       $28,538,000
Illinois....................................  Scott Air Force Base............................       $20,000,000
Kansas......................................  McConnell Air Force Base........................        $3,875,000
Kentucky....................................  Fort Knox.......................................        $3,500,000
Montana.....................................  Malmstrom Air Force Base........................        $5,700,000
Nevada......................................  Indian Springs Auxiliary Field..................       $49,923,000
New Jersey..................................  McGuire Air Force Base..........................       $28,500,000
Oklahoma....................................  Altus Air Force Base............................        $1,500,000
                                               Tinker Air Force Base..........................        $5,700,000
South Carolina..............................  Shaw Air Force Base.............................       $31,500,000
South Dakota................................   Ellsworth Air Force Base.......................        $3,000,000
Texas.......................................  Fort Bliss......................................        $8,500,000
                                              Lackland Air Force Base.........................       $13,200,000
                                              Laughlin Air Force Base.........................       $12,600,000
                                              Sheppard Air Force Base.........................        $7,000,000
Utah........................................  Hill Air Force Base.............................       $53,400,000
Virginia....................................  Langley Air Force Base..........................       $57,700,000
Washington..................................   Fairchild Air Force Base.......................        $4,250,000
Wyoming.....................................  Francis E. Warren Air Force Base................       $11,000,000
----------------------------------------------------------------------------------------------------------------

    (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 or locations 
outside the United States, and in the amounts, set forth in the 
following table:

                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Base........     $53,150,000
Guam.........................  Andersen Air Base........     $80,800,000
Korea........................  Kunsan Air Base..........     $46,700,000
                               Osan Air Base............      $2,156,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using 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 unspecified installations or 
locations in the amount set forth in the following table:

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Unspecified Worldwide....     $35,677,000
------------------------------------------------------------------------

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 and supporting 
facilities) at the installations or locations, in the number of units, 
and in the amounts set forth in the following table:

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                   Installation or Location             Units             Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Eielson Air Force Base...........  129................     $87,414,000
Idaho...................................  Mountain Home Air Force Base.....  457................    $107,800,000
Missouri................................  Whiteman Air Force Base..........  116................     $39,270,000
Montana.................................  Malmstrom Air Force Base.........  493................    $140,252,000
North Carolina..........................  Seymour Johnson Air Force Base...  56.................     $22,956,000
North Dakota............................  Minot Air Force Base.............  575................    $171,188,000
Texas...................................  Dyess Air Force Base.............  199................     $49,215,000
Germany.................................  Ramstein Air Base................  101................     $59,488,000
                                          Spangdahlem Air Base.............  60.................     $39,294,000
United Kingdom..........................  Royal Air Force Lakenheath.......  74.................     $35,282,000
----------------------------------------------------------------------------------------------------------------

    (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 $13,202,000.

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 
$403,777,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal years beginning after September 30, 2006, 
for military construction, land acquisition, and military family 
housing functions of the Department of the Air Force in the total 
amount of $3,157,882,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $818,386,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $182,806,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2301(c), $35,677,000.
            (4) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $15,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $97,504,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $1,169,138,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $755,071,000.
            (7) For the construction of increment 2 of the C-17 
        maintenance complex at Elmendorf Air Force Base, Alaska, 
        authorized by section 2301(a) of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of Public 
        Law 109-163; 119 Stat. 3494), $30,000,000.
            (8) For the construction of increment 2 of the main base 
        runway at Edwards Air Force Base, California, authorized by 
        section 2301(a) of the Military Construction Authorization Act 
        for Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3494), $31,000,000.
            (9) For the construction of increment 2 of the CENTCOM 
        Joint Intelligence Center at MacDill Air Force Base, Florida, 
        authorized by section 2301(a) of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of Public 
        Law 109-163; 119 Stat. 3494), $23,300,000.
    (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 2301 of this 
Act may not exceed the total amount authorized to be appropriated under 
paragraphs (1), (2), and (3) of subsection (a).

                       TITLE IV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Family housing.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorized base closure and realignment activities funded 
                            through Department of Defense Base Closure 
                            Account 2005.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Modification of authority to carry out certain fiscal year 
                            2006 projects.

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 2405(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following tables:

                                           Defense Education Activity
----------------------------------------------------------------------------------------------------------------
                     State                                  Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Kentucky......................................  Fort Knox.......................................     $18,108,000
----------------------------------------------------------------------------------------------------------------


                        Defense Logistics Agency
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Arizona......................  Marine Corps Air Station,      $8,715,000
                                Yuma.
California...................  Beale Air Force Base.....      $9,000,000
Pennsylvania.................  Defense Distribution           $8,900,000
                                Depot, New Cumberland.
Viginia......................  Fort Belvoir.............      $5,500,000
Washington...................  Naval Air Station,            $26,000,000
                                Whidbey Island.
------------------------------------------------------------------------


                        National Security Agency
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Maryland.....................  Fort Meade...............      $4,517,000
------------------------------------------------------------------------


                       Special Operations Command
------------------------------------------------------------------------
            State              Installation or Location       Amount
------------------------------------------------------------------------
California..................  Marine Corps Base, Camp        $24,400,000
                               Pendleton.
Colorado....................  Fort Carson...............     $26,100,000
Florida.....................  Hurlburt Field............     $14,482,000
                              MacDill Air Force Base....     $27,300,000
Kentucky....................  Fort Campbell.............     $24,500,000
Mississippi.................  Stennis Space Center......     $10,200,000
North Carolina..............  Fort Bragg................     $67,044,000
                              Marine Corps Base, Camp        $51,600,000
                               Lejeune.
Virginia....................  Naval Air Base, Little         $22,000,000
                               Creek.
------------------------------------------------------------------------


                                           TRICARE Management Activity
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Alaska.......................................  Fort Richardson..................................     $37,200,000
California...................................  Fort Irwin.......................................      $6,050,000
Florida......................................  MacDill Air Force Base...........................     $92,000,000
                                               Naval Hospital, Jacksonville.....................     $16,000,000
Hawaii.......................................  Naval Base, Pearl Harbor.........................      $7,700,000
Illinois.....................................  Naval Hospital, Great Lakes......................     $20,000,000
Maryland.....................................  Fort Detrick.....................................    $550,000,000
New York.....................................  Fort Drum........................................      $9,700,000
Texas........................................  Fort Hood........................................     $18,000,000
----------------------------------------------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2405(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations or locations outside the 
United States, and in the amounts, set forth in the following tables:

                                           Defense Education Activity
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Italy.........................................  Vicenza.........................................     $47,210,000
Korea.........................................  Osan Air Base...................................      $4,589,000
Spain.........................................  Naval Station, Rota.............................     $23,048,000
----------------------------------------------------------------------------------------------------------------


                                            Defense Logistics Agency
----------------------------------------------------------------------------------------------------------------
           Country or Possession                           Installation or Location                   Amount
----------------------------------------------------------------------------------------------------------------
Japan......................................  Okinawa............................................      $5,000,000
Wake Island................................  ...................................................      $2,600,000
----------------------------------------------------------------------------------------------------------------


                       Special Operations Command
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Qatar........................  Al Udeid AB..............     $44,500,000
------------------------------------------------------------------------


                       TRICARE Management Activity
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Italy........................  Vicenza..................     $52,000,000
------------------------------------------------------------------------

SEC. 2402. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(9)(A), the Secretary of Defense may construct or acquire family 
housing units (including land acquisition and supporting facilities) at 
the location, in the number of units, and in the amount set forth in 
the following table:

                                    Defense Logistics Agency: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                               Location                     Units              Amount
----------------------------------------------------------------------------------------------------------------
Virginia................................  Richmond International Airport.  25...................      $7,840,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2405(a)(9)(A), the 
Secretary of Defense 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 $200,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(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 $55,000,000.

SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES FUNDED 
              THROUGH DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.

    (a) Authorized Activities.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2405(a)(8), the 
Secretary of Defense may carry out base closure and realignment 
activities, including real property acquisition and military 
construction projects, 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) and funded through the Department of Defense Base 
Closure Account 2005 established by section 2906A of such Act, in the 
amount of $5,902,723,000.
    (b) Conforming Amendments to Fiscal Year 2006 Authorizations.--
            (1) Authorized activities.--Title XXIV of the Military 
        Construction Authorization Act for Fiscal Year 2006 (division B 
        of Public Law 109-163; 119 Stat. 3496) is amended by adding at 
        the end the following new section:

``SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES FUNDED 
              THROUGH DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.

    ``Using amounts appropriated pursuant to the authorization of 
appropriations in section 2403(a)(7), the Secretary of Defense may 
carry out base closure and realignment activities, including real 
property acquisition and military construction projects, 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) and funded 
through the Department of Defense Base Closure Account 2005 established 
by section 2906A of such Act, in the amount of $2,035,466,000.''.
            (2) Authorization of appropriations and limitations.--
        Section 2403 of that Act (119 Stat. 3499) is amended--
                    (A) in subsection (a)(7)--
                            (i) by striking ``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)'' and inserting 
                        ``authorized by section 2404 of this Act''; and
                            (ii) by striking ``section 2906 of such 
                        Act'' and inserting ``section 2906A 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)'';
                    (B) by redesignating subsection (c) as subsection 
                (d); and
                    (C) by inserting after subsection (b) the following 
                new subsection (c):
    ``(c) Limitation on Total Cost of Base Closure and Realignment 
Activities.--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 base closure and realignment 
activities, including real property acquisition and military 
construction projects, carried out under section 2404 of this Act may 
not exceed the sum of the following:
            ``(1) The total amount authorized to be appropriated under 
        subsection (a)(7).
            ``(2) $531,000,000 (the balance of the amount authorized 
        under section 2404 for base closure and realignment 
        activities).''.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2006, 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 $7,160,356,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $537,616,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $163,197,000.
            (3) For unspecified minor military construction projects 
        under section 2805 of title 10, United States Code, 
        $21,672,000.
            (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, $172,950,000.
            (6) For energy conservation projects authorized by section 
        2403 of this Act, $55,000,000.
            (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) and funded through the Department of Defense Base 
        Closure Account 1990 established by section 2906 of such Act, 
        $191,220,000.
            (8) For base closure and realignment activities authorized 
        by section 2404 of this Act and funded through the Department 
        of Defense Base Closure Account 2005 established by section 
        2906A 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), $5,236,223,000.
            (9) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $8,808,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $48,506,000.
                    (C) For credit to the Department of Defense Family 
                Housing Improvement Fund established by section 
                2883(a)(1) of title 10, United States Code, $2,500,000
            (10) For the construction of increment 2 of the regional 
        security operations center at Augusta, Georgia, authorized by 
        section 2401(a) of the Military Construction Authorization Act 
        of Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3497), as amended by section 2406 of this Act, 
        $87,118,000.
            (11) For the construction of increment 2 of the regional 
        security operations center at Kunia, Hawaii, authorized by 
        section 2401(a) of the Military Construction Authorization Act 
        of Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3497), $47,016,000.
            (12) For the construction of increment 2 of the classified 
        material conversion facility at Fort Meade, Maryland, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act of Fiscal Year 2006 (division B of Public Law 
        109-163; 119 Stat. 3497), $11,151,000.
            (13) For the construction of increment 2 of an operations 
        building, Royal Air Force Menwith Hill Station, United Kingdom, 
        authorized by section 2401(b) of the Military Construction 
        Authorization Act of Fiscal Year 2006 (division B of Public Law 
        109-163; 119 Stat. 3498), as amended by section 2406 of this 
        Act, $46,386,000.
            (14) For the construction of the second increment of 
        certain base closure and realignment activities authorized by 
        section 2404 of the Military Construction Authorization Act of 
        Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
        3500), as added by section 2404(b) of this Act, $390,000,000.
            (15) For the construction of increment 7 of a munitions 
        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. 835), as amended by section 2405 of the 
        Military Construction Authorization Act of 2002 (division B of 
        Public Law 107-107; 115 Stat. 1298), and section 2405 of the 
        Military Construction Authorization Act for Fiscal Year 2003 
        (division B of Public Law 107-314; 116 Stat. 2698), 
        $89,157,000.
            (16) For the construction of increment 8 of a munitions 
        demilitarization facility at Pueblo Chemical Activity, 
        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), and 
        section 2407 of the Military Construction Authorization Act for 
        Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat. 
        2698), $41,836,000.
    (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 sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a).
            (2) $46,400,000 (the balance of the amount authorized under 
        section 2401(a) for construction of a health clinic at MacDill 
        Air Force Base, Florida).
            (3) $521,000,000 (the balance of the amount authorized 
        under section 2401(a) for stage 1 of the replacement of the 
        Army Medical Research Institute of Infectious Diseases at Fort 
        Detrick, Maryland).
    (c) Limitation on Total Cost of Base Closure and Realignment 
Activities.--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 base closure and realignment 
activities, including real property acquisition and military 
construction projects, carried out under section 2404(a) of this Act 
may not exceed the sum of the following:
            (1) The total amount authorized to be appropriated under 
        subsection (a)(8).
            (2) $666,500,000 (the balance of the amount authorized 
        under section 2404(a) for base closure and realignment 
        activities).
    (d) Notice and Wait Requirement Applicable to Obligation of Funds 
for Base Closure and Realignment Activities.--Funds appropriated 
pursuant to the authorization of appropriations in subsection (a)(8) 
may not be obligated until--
            (1) a period of 21 days has expired following the date on 
        which the Secretary of Defense submits to the congressional 
        defense committees a report describing the specific programs, 
        projects, and activities for which the funds are to be 
        obligated; or
            (2) if over sooner, a period of 14 days has expired 
        following the date on which a copy of the report is provided in 
        an electronic medium pursuant to section 480 of title 10, 
        United States Code.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2006 PROJECTS.

    (a) Modification of Inside the United States National Security 
Agency Projects.--The table relating to the National Security Agency in 
subsection (a) of section 2401 of the Military Construction 
Authorization Act for Fiscal Year 2006 (division B of Public Law 109-
163; 119 Stat. 3497) is amended--
            (1) in the item relating to Augusta, Georgia, by striking 
        ``$61,466,000'' in the amount column and inserting 
        ``$340,836,000''; and
            (2) in the item relating to Kunia, Hawaii, by striking 
        ``$305,000,000'' in the amount column and inserting 
        ``$350,490,000''.
    (b) Modification of Outside the United States National Security 
Agency Project.--The table relating to the National Security Agency in 
subsection (b) of such section (119 Stat. 3498) is amended in the item 
relating to Menwith Hill, United Kingdom, by striking ``$86,354,000'' 
in the amount column and inserting ``$87,752,000''.
    (c) Conforming Amendments.--Section 2403(b) of that Act (119 Stat. 
3500) is amended--
            (1) in paragraph (2), by striking ``$12,500,000'' and 
        inserting ``$291,870,000'';
            (2) in paragraph (3), by striking ``$256,034,000'' and 
        inserting ``$301,524,000''; and
            (3) in paragraph (5), by striking ``$44,657,000'' and 
        inserting ``$46,055,000''.

TITLE V--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, 2006, 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 $200,985,000.

             TITLE VI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
                            acquisition projects.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2006, 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), in the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the United 
                States, $518,403,000; and
                    (B) for the Army Reserve, $169,487,000.
            (2) For the Department of the Navy, for the Navy Reserve 
        and Marine Corps Reserve, $55,158,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United 
                States, $212,788,000; and
                    (B) for the Air Force Reserve, $56,836,000.

         TITLE VII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                            specified by law.
Sec. 2702. 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, 2009; or
            (2) the date of the enactment of an Act authorizing funds 
        for military construction for fiscal year 2010.
    (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, 2009; or
            (2) the date of the enactment of an Act authorizing funds 
        for fiscal year 2010 for military construction projects, land 
        acquisition, family housing projects and facilities, or 
        contributions to the North Atlantic Treaty Organization 
        Security Investment program.

SEC. 2702. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this Act shall take 
effect on the later of--
            (1) October 1, 2006; or
            (2) the date of the enactment of this Act.

          TITLE VIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Sec. 2801. Increase in maximum annual amount authorized to be obligated 
                            for emergency military construction.
Sec. 2802. Applicability of local comparability of room pattern and 
                            floor area requirements to construction, 
                            acquisition, and improvement to military 
                            unaccompanied housing.
Sec. 2803. Authority to use proceeds from sale of military family 
                            housing to support military housing 
                            privatization initiative.
Sec. 2804. Repeal of special requirement for military construction 
                            contracts on Guam.
Sec. 2805. Congressional notification of cancellation ceiling for 
                            Department of Defense energy savings 
                            performance contracts.
Sec. 2806. Expansion of authority to convey property at military 
                            installations to support military 
                            construction.
Sec. 2807. Pilot projects for acquisition or construction of military 
                            unaccompanied housing.
Sec. 2808. Consideration of alternative and more efficient uses for 
                            general officer and flag officer quarters 
                            in excess of 6,000 square feet.
Sec. 2809. Repeal of temporary minor military construction program.
Sec. 2810. One-year extension of temporary, limited authority to use 
                            operation and maintenance funds for 
                            construction projects outside the United 
                            States.

        Subtitle B--Real Property and Facilities Administration

Sec. 2821. Consolidation of Department of Defense authorities regarding 
                            granting of easements for rights-of-way.
Sec. 2822. Authority to grant restrictive easements in connection with 
                            land conveyances.
Sec. 2823. Maximum term of leases for structures and real property 
                            relating to structures in foreign countries 
                            needed for purposes other than family 
                            housing.
Sec. 2824. Consolidation of laws relating to transfer of Department of 
                            Defense real property within the department 
                            and to other Federal agencies.
Sec. 2825. Congressional notice requirements in advance of acquisition 
                            of land by condemnation for military 
                            purposes.

                Subtitle C--Base Closure and Realignment

Sec. 2831. Treatment of lease proceeds from military installations 
                            approved for closure or realignment after 
                            January 1, 2005.

                      Subtitle D--Land Conveyances

Sec. 2841. Land conveyance, Naval Air Station, Barbers Point, Hawaii.
Sec. 2842. Modification of land acquisition authority, Perquimans 
                            County, North Carolina.
Sec. 2843. Land conveyance, Radford Army Ammunition Plant, Pulaski 
                            County, Virginia.

                       Subtitle E--Other Matters

Sec. 2851. Availability of community planning assistance relating to 
                            encroachment of civilian communities on 
                            military facilities used for training by 
                            the Armed Forces.
Sec. 2852. Prohibitions against making certain military airfields or 
                            facilities available for use by civil 
                            aircraft.
Sec. 2853. Naming housing facility at Fort Carson, Colorado, in honor 
                            of Joel Hefley, a member of the House of 
                            Representatives.
Sec. 2854. Naming Navy and Marine Corps Reserve Center at Rock Island, 
                            Illinois, in honor of Lane Evans, a member 
                            of the House of Representatives.
Sec. 2855. Naming of research laboratory at Air Force Rome Research 
                            Site, Rome, New York, in honor of Sherwood 
                            L. Boehlert, a member of the House of 
                            Representatives.

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

SEC. 2801. INCREASE IN MAXIMUM ANNUAL AMOUNT AUTHORIZED TO BE OBLIGATED 
              FOR EMERGENCY MILITARY CONSTRUCTION.

    Section 2803(c)(1) of title 10, United States Code, is amended by 
striking ``$45,000,000'' and inserting ``$60,000,000''.

SEC. 2802. APPLICABILITY OF LOCAL COMPARABILITY OF ROOM PATTERN AND 
              FLOOR AREA REQUIREMENTS TO CONSTRUCTION, ACQUISITION, AND 
              IMPROVEMENT TO MILITARY UNACCOMPANIED HOUSING.

    (a) Application to Military Unaccompanied Housing.--Section 2826 of 
title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``or military unaccompanied 
                housing'' after ``military family housing'' the first 
                place it appears; and
                    (B) by striking ``military family housing'' the 
                second place it appears and inserting ``such housing''; 
                and
            (2) in subsection (b)--
                    (A) by striking ``Requests for Authority for 
                Military Family Housing'' and inserting ``Information 
                on Net Floor Areas of Proposed Units'';
                    (B) in paragraph (1)--
                            (i) by inserting ``or military 
                        unaccompanied housing'' after ``military family 
                        housing'' the first place it appears; and
                            (ii) by striking ``military family 
                        housing'' the second place it appears and 
                        inserting ``such housing''; and
                    (C) in paragraph (2), by striking ``military family 
                housing unit'' and inserting ``unit of military family 
                housing or military unaccompanied housing''.
    (b) Waiver Authority.--Such section is further amended by adding at 
the end the following new subsection:
    ``(c) Waiver Authority.--The Secretary concerned may waive the 
requirements of subsection (a) in the case of the construction, 
acquisition, or improvement of military unaccompanied housing on a 
case-by-case basis. The Secretary shall include the reasons for the 
waiver in the request submitted to Congress for authority to carry out 
the construction, acquisition, or improvement project.''.
    (c) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 2826. Local comparability of room patterns and floor areas''.
            (2) Table of sections.--The table of sections at the 
        beginning of subchapter II of chapter 169 of such title is 
        amended by striking the item relating to section 2826 and 
        inserting the following new item:

``2826. Local comparability of room patterns and floor areas.''.
    (d) Repeal of Superseded Provision.--
            (1) Repeal.--Section 2856 of such title is repealed.
            (2) 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 2856.
    (e) Conforming Amendments Regarding Alternative Acquisition and 
Improvement Authority.--Section 2880(b) of such title is amended--
            (1) by striking ``(1)'';
            (2) by inserting ``or military unaccompanied housing'' 
        after ``military family housing''; and
            (3) by striking paragraph (2).

SEC. 2803. AUTHORITY TO USE PROCEEDS FROM SALE OF MILITARY FAMILY 
              HOUSING TO SUPPORT MILITARY HOUSING PRIVATIZATION 
              INITIATIVE.

    (a) Transfer Flexibility.--Section 2831 of title 10, United States 
Code, is amended--
            (1) in subsection (b), by striking ``There'' and inserting 
        ``Except as provided in subsection (e), there'';
            (2) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (3) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) Authority to Transfer Certain Proceeds to Support Military 
Housing Privatization Initiative.--(1) The Secretary concerned may 
transfer family housing proceeds referred to in subsection (b)(3) to 
the Department of Defense Family Housing Improvement Fund established 
under section 2883(a)(1) of this title.
    ``(2) A transfer of proceeds under paragraph (1) may be made only 
after the end of the 30-day period beginning on the date the Secretary 
concerned submits written notice of, and justification for, the 
transfer to the appropriate committees of Congress or, if earlier, the 
end of the 14-day period beginning on the date on which a copy of the 
notice and justification is provided in an electronic medium pursuant 
to section 480 of this title.''.
    (b) Stylistic Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Establishment.--'' 
        after ``(a)'';
            (2) in subsection (b), by inserting ``Credits to Account.--
        '' after ``(b)'';
            (3) in subsection (c), by inserting ``Availability of 
        Amounts in Account.--'' after ``(c)''; and
            (4) in subsection (d), by inserting ``Use of Account.--'' 
        after ``(d)''.
    (c) Conforming Amendment.--Section 2883(c)(1) of such title is 
amended by adding at the end the following new subparagraph:
            ``(G) Proceeds of the handling and the disposal of family 
        housing of a military department that the Secretary concerned 
        transfers to that Fund pursuant to section 2831(e) of this 
        title.''.

SEC. 2804. REPEAL OF SPECIAL REQUIREMENT FOR MILITARY CONSTRUCTION 
              CONTRACTS ON GUAM.

    (a) Repeal.--Section 2864 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 2864.

SEC. 2805. CONGRESSIONAL NOTIFICATION OF CANCELLATION CEILING FOR 
              DEPARTMENT OF DEFENSE ENERGY SAVINGS PERFORMANCE 
              CONTRACTS.

    Section 2865 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) Congressional Notification of Cancellation Ceiling for Energy 
Savings Performance Contracts.--When a decision is made to award an 
energy savings performance contract that contains a clause setting 
forth a cancellation ceiling in excess of $7,000,000, the Secretary of 
Defense shall submit to the appropriate committees of Congress written 
notification of the proposed contract and of the proposed cancellation 
ceiling for the contract. The notification shall include the 
justification for the proposed cancellation ceiling. The contract may 
then be awarded only after the end of the 30-day period beginning on 
the date the notification is received by such committees or, if 
earlier, the end of the 15-day period beginning on the date on which a 
copy of the notification is provided in an electronic medium pursuant 
to section 480 of this title.''.

SEC. 2806. EXPANSION OF AUTHORITY TO CONVEY PROPERTY AT MILITARY 
              INSTALLATIONS TO SUPPORT MILITARY CONSTRUCTION.

    (a) Inclusion of All Military Installations.--Subsection (a) of 
section 2869 of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' before ``The Secretary 
        concerned'';
            (3) by striking ``located on a military installation that 
        is closed or realigned under a base closure law'' and inserting 
        ``described in paragraph (2)''; and
            (4) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) applies with respect to real property under the 
jurisdiction of the Secretary concerned that--
            ``(A) is located on a military installation that is closed 
        or realigned under a base closure law; or
            ``(B) is determined to be excess to the needs of the 
        Department of Defense.''.
    (b) Use of Authority to Support Agreements to Limit 
Encroachments.--Subparagraph (A) of paragraph (1) of subsection (a) of 
such section, as redesignated and amended by subsection (a), is further 
amended by striking ``land acquisition'' and inserting ``land 
acquisition, including a land acquisition under an agreement entered 
into under section 2684a of this title to limit encroachments and other 
constraints on military training, testing, and operations''.
    (c) Advance Notice of Use of Authority; Content of Notice.--
Subsection (d) of such section is amended--
            (1) in paragraph (1), by striking ``closed or realigned 
        under the base closure laws is to be conveyed'' and inserting 
        ``is proposed for conveyance'';
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
    ``(2) The Secretary concerned may not enter into an agreement under 
subsection (a) for the conveyance of real property until--
            ``(A) the Secretary submits to Congress notice of the 
        conveyance, including--
                    ``(i) a description of the military construction 
                project, land acquisition, military family housing, or 
                military unaccompanied housing to be carried out under 
                the agreement in exchange for the conveyance of the 
                property; and
                    ``(ii) the amount of any payment to be made under 
                subsection (b) or under section 2684a(d) of this title 
                to equalize the fair market values of the property to 
                be conveyed and the military construction project, land 
                acquisition, military family housing, or military 
                unaccompanied housing to be carried out under the 
                agreement in exchange for the conveyance of the 
                property; and
            ``(B) a period of 21 days has elapsed from the date of 
        receipt of the notice or, if over sooner, a period of 14 days 
        has elapsed from the date on which a copy of the notice is 
        provided in an electronic medium pursuant to section 480 of 
        this title.''.
    (d) Deposit and Use of Funds.--Subsection (e) of such section is 
amended to read as follows:
    ``(e) Deposit and Use of Funds.--(1) The Secretary concerned shall 
deposit funds received under subsection (b) in the appropriation 
`Foreign Currency Fluctuations, Construction, Defense'.
    ``(2) The funds deposited under paragraph (1) shall be available, 
in such amounts as provided in appropriation Acts, for the purpose of 
paying increased costs of overseas military construction and family 
housing construction or improvement associated with unfavorable 
fluctuations in currency exchange rates. The use of such funds for this 
purpose does not relieve the Secretary concerned from the duty to 
provide advance notice to Congress under section 2853(c) of this title 
whenever the Secretary approves an increase in the cost of an overseas 
project under such section.''.
    (e) Annual Reports; Effect of Failure to Submit.--Subsection (f) of 
such section is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively;
            (2) in subparagraph (C), as so redesignated, by inserting 
        before the period at the end the following: ``and of excess 
        real property at military installations'';
            (3) by striking ``(f)'' and all that follows through ``the 
        following:'' and inserting the following:
    ``(f) Annual Reports; Effect of Failure to Submit.--(1) Not later 
than March 15 of each year, the Secretary of Defense shall submit to 
Congress a report detailing the following:''; and
            (4) by adding at the end the following new paragraph:
    ``(2) If the report for a year is not submitted to Congress by the 
date specified in paragraph (1), the Secretary concerned may not enter 
into an agreement under subsection (a) after that date for the 
conveyance of real property until the date on which the report is 
finally submitted.''.
    (f) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 2869. Conveyance of property at military installations to 
              support military construction or limit encroachment''.
            (2) Table of sections.--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 2869 and 
        inserting the following new item:

``2869. Conveyance of property at military installations to support 
                            military construction or limit 
                            encroachment.''.
    (g) Conforming Amendments to Department of Defense Housing Funds.--
Section 2883(c) of such title is amended--
            (1) in paragraph (1), by striking subparagraph (F); and
            (2) in paragraph (2), by striking subparagraph (F).
    (h) Conforming Amendments to Authority to Limit Encroachments.--
Subsection (d)(3) of section 2684a of such title is amended--
            (1) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively;
            (2) in subparagraph (C), as so redesignated, by striking 
        ``in the sharing of acquisition costs of real property, or an 
        interest in real property, under paragraph (1)(B)'' and 
        inserting ``under subparagraph (A), either through the 
        contribution of funds or excess real property, or both,''; and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph (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 subsection (a)(2) of such 
section.''.

SEC. 2807. PILOT PROJECTS FOR ACQUISITION OR CONSTRUCTION OF MILITARY 
              UNACCOMPANIED HOUSING.

    (a) Extension of Authority to Carry Out Pilot Projects.--Subsection 
(f) of section 2881a of title 10, United States Code, is amended by 
striking ``2007'' and inserting ``2011''.
    (b) Authorized Projects.--Subsection (a) of such section is amended 
by striking ``three pilot projects'' and inserting ``six pilot 
projects''.
    (c) Notification of Funding Transfers.--Subsection (d)(2) of such 
section is amended by striking ``90 days prior notification'' and 
inserting ``45 days prior notification, or 30 days if the notification 
is provided in an electronic medium pursuant to section 480 of this 
title,''.
    (d) Report Submission.--Subsection (e)(2) of such section is 
amended by striking the second sentence and inserting the following new 
sentence: ``The Secretary may then issue the contract solicitation or 
offer the conveyance or lease after the end of the 45-day period 
beginning on the date the report is received by the appropriate 
committees of Congress or, if earlier, the end of the 30-day period 
beginning on the date on which a copy of the report is provided in an 
electronic medium pursuant to section 480 of this title.''.

SEC. 2808. CONSIDERATION OF ALTERNATIVE AND MORE EFFICIENT USES FOR 
              GENERAL OFFICER AND FLAG OFFICER QUARTERS IN EXCESS OF 
              6,000 SQUARE FEET.

    (a) Reporting Requirements.--Paragraph (1) of subsection (f) of 
section 2831 of title 10, United States Code, as redesignated by 
section 2803(a)(2), is amended--
            (1) in subparagraph (A), by striking ``and'' at the end of 
        the subparagraph;
            (2) in subparagraph (B)--
                    (A) by striking ``so identified'' and inserting 
                ``identified under subparagraph (A)''; and
                    (B) by striking the period at the end of the 
                subparagraph and inserting a semicolon; and
            (3) by adding at the end the following new subparagraphs:
            ``(C) identifying each family housing unit in excess of 
        6,000 square feet used, or intended for use, as quarters for a 
        general officer or flag officer;
            ``(D) for each family housing unit identified under 
        subparagraph (C), specifying any alternative and more efficient 
        use to which the unit could be converted (which would include 
        any costs necessary to convert the unit) and containing an 
        explanation of the reasons why the unit is not being converted 
        to the alternative use; and
            ``(E) for each family housing unit identified under 
        subparagraph (C) for which costs under subparagraph (A) or new 
        construction costs are anticipated to exceed $100,000 in the 
        next fiscal year, specifying any alternative use to which the 
        unit could be converted (which would include any costs 
        necessary to convert the unit) and an estimate of the costs to 
        demolish and rebuild the unit to private sector standards.''.
    (b) Conforming Amendment.--The heading of such subsection is 
amended by striking ``Cost Of''.

SEC. 2809. REPEAL OF TEMPORARY MINOR MILITARY CONSTRUCTION PROGRAM.

    Section 2810 of the Military Construction Authorization Act for 
Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 3509) is 
repealed.

SEC. 2810. ONE-YEAR EXTENSION OF TEMPORARY, LIMITED AUTHORITY TO USE 
              OPERATION AND MAINTENANCE FUNDS FOR CONSTRUCTION PROJECTS 
              OUTSIDE THE UNITED STATES.

    Section 2808(a) of the Military Construction Authorization Act for 
Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat. 1723), as 
amended by section 2810 of the Military Construction Authorization Act 
for Fiscal Year 2005 (division B of Public Law 108-375; 118 Stat. 2128) 
and section 2809 of the Military Construction Authorization Act for 
Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 3508), is 
further amended by striking ``and 2006'' and inserting ``through 
2007''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2821. CONSOLIDATION OF DEPARTMENT OF DEFENSE AUTHORITIES REGARDING 
              GRANTING OF EASEMENTS FOR RIGHTS-OF-WAY.

    (a) Consolidation.--Subsection (a) of section 2668 of title 10, 
United States Code, is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``he'' both places it appears and 
                inserting ``the Secretary''; and
                    (B) by striking ``his control, to a State, 
                Commonwealth, or possession, or political subdivision 
                thereof, or to a citizen, association, partnership, or 
                corporation of a State, Commonwealth, or possession,'' 
                and inserting ``the Secretary's control'';
            (2) in paragraph (2), by striking ``oil pipe lines'' and 
        inserting ``gas, water, sewer, and oil pipe lines''; and
            (3) in paragraph (13), by striking ``he considers 
        advisable, except a purpose covered by section 2669 of this 
        title'' and inserting ``the Secretary considers advisable''.
    (b) Stylistic Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Authorized Types of 
        Easements.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Limitation on Size of 
        Easement.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Termination.--'' 
        after ``(c)'';
            (4) in subsection (d), by inserting ``Notice to Department 
        of the Interior.--'' after ``(d)''; and
            (5) in subsection (e), by inserting ``Disposition of 
        Consideration.--'' after ``(e)''.
    (c) Conforming Repeal.--Section 2669 of such title is repealed.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 159 of such title is amended by striking the item related to 
section 2669.

SEC. 2822. AUTHORITY TO GRANT RESTRICTIVE EASEMENTS IN CONNECTION WITH 
              LAND CONVEYANCES.

    (a) Restrictive Easements.--Chapter 159 of title 10, United States 
Code, is amended by inserting after section 2668 the following new 
section:
``Sec. 2668a. Restrictive easements: granting easement in connection 
              with land conveyances
    ``(a) Authority to Include Restrictive Easement.--In connection 
with the conveyance of real property by the Secretary concerned under 
any provision of law, the Secretary concerned may grant an easement 
restricting future uses of the conveyed real property for a 
conservation purpose consistent with section 170(h)(4)(A)(iv) of the 
Internal Revenue Code of 1986 (26 U.S.C. 170(h)(4)(A)(iv)).
    ``(b) Authorized Recipients.--An easement under subsection (a) may 
be granted only to a State or local government or a qualified 
organization, as that term is used in section 170(h) of the Internal 
Revenue Code of 1986 (26 U.S.C. 170(h)).
    ``(c) Limitation on Use of Conservation Easements.--An easement 
under subsection (a) may not be granted unless--
            ``(1) the Secretary concerned determines that the 
        conservation purpose to be promoted by the easement cannot be 
        effectively achieved through the application of State law by 
        the State or a local government;
            ``(2) the Secretary consults with the local government 
        whose jurisdiction encompasses the property regarding the grant 
        of the easement; and
            ``(3) the Secretary can give or assign to a third party the 
        responsibility for monitoring and enforcing the easement.
    ``(d) Acreage Limitation.--No easement granted under this section 
may include more land than is necessary for the easement.
    ``(e) Terms and Conditions.--The grant of an easement under this 
section shall be subject to such terms and conditions as the Secretary 
considers advisable.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2668 the following new item:

``2668a. Restrictive easements: granting easement in connection with 
                            land conveyances.''.

SEC. 2823. MAXIMUM TERM OF LEASES FOR STRUCTURES AND REAL PROPERTY 
              RELATING TO STRUCTURES IN FOREIGN COUNTRIES NEEDED FOR 
              PURPOSES OTHER THAN FAMILY HOUSING.

    Section 2675(a) of title 10, United States Code, is amended by 
striking ``five years'' and inserting ``10 years''.

SEC. 2824. CONSOLIDATION OF LAWS RELATING TO TRANSFER OF DEPARTMENT OF 
              DEFENSE REAL PROPERTY WITHIN THE DEPARTMENT AND TO OTHER 
              FEDERAL AGENCIES.

    (a) Inclusion of Transfer Authority Between Armed Forces.--Section 
2696 of title 10, United States Code, is amended--
            (1) by redesignating subsections (a) and (b) as subsections 
        (b) and (c), respectively; and
            (2) by inserting before subsection (b), as so redesignated, 
        the following new subsection:
    ``(a) Transfers Between Armed Forces.--If either of the Secretaries 
concerned requests it and the other approves, real property may be 
transferred, without compensation, from one armed force to another. 
Section 2571(d) of this title shall apply to the transfer of real 
property under this subsection.''.
    (b) Inclusion of Department of Justice Program.--The text of 
section 2693 of such title is amended--
            (1) by redesignating paragraphs (1), (2), and (3) of 
        subsection (a) as subparagraphs (A), (B), and (C), 
        respectively;
            (2) by redesignating paragraphs (1) and (2) of subsection 
        (b) as subparagraphs (A) and (B), respectively, and in such 
        subparagraph (B), as so redesignated, by striking ``this 
        section'' and inserting ``paragraph (1)'';
            (3) by striking ``(a) Except as provided in subsection 
        (b)'' and inserting ``(f) Department of Justice Correctional 
        Options Program.--(1) Except as provided in paragraph (2)'';
            (4) by striking ``(b) The provisions of this section'' and 
        inserting ``(2) Paragraph (1)''; and
            (5) by transferring the text, as so redesignated and 
        amended, to appear as a new subsection (f) at the end of 
        section 2696 of such title.
    (c) Conforming Amendments.--
            (1) Section 2571.--Section 2571(a) of such title is amended 
        by striking ``and real estate''.
            (2) Section 2693.--Section 2693 of such title is repealed.
            (3) Section 2696.--Section 2696 of such title is amended--
                    (A) in subsection (b), as redesignated by 
                subsection (a)(1), by striking ``Screening 
                Requirement.--'' and inserting ``Screening Requirements 
                for Additional Federal Use.--'';
                    (B) in subsection (c)(1), as redesignated by 
                subsection (a)(1), by striking ``subsection (a)'' in 
                the first sentence and inserting ``subsection (b)'';
                    (C) in subsection (d), by striking ``subsection 
                (b)(1)'' and inserting ``subsection (c)(1)''; and
                    (D) in subsection (e), by striking ``this section'' 
                and inserting ``subsection (b)''.
    (d) Clerical Amendments.--
            (1) Section 2571.--(A) The heading of section 2571 of such 
        title is amended to read as follows:
``Sec. 2571. Interchange of supplies and services''.
            (B) The table of sections at the beginning of chapter 153 
        of such title is amended by striking the item relating to 
        section 2571 and inserting the following new item:

``2571. Interchange of supplies and services.''.
            (2) Sections 2693 and 2696.--(A) The heading of section 
        2696 of such title is amended to read as follows:
``Sec. 2696. Transfers and disposals: interchange among armed forces 
              and screening requirements for other Federal use''.
            (B) The table of sections at the beginning of chapter 159 
        of such title is amended--
                    (i) by striking the item relating to section 2693; 
                and
                    (ii) by striking the item relating to section 2696 
                and inserting the following new item:

``2696. Transfers and disposals: interchange among armed forces and 
                            screening requirements for other Federal 
                            use.''.

SEC. 2825. CONGRESSIONAL NOTICE REQUIREMENTS IN ADVANCE OF ACQUISITION 
              OF LAND BY CONDEMNATION FOR MILITARY PURPOSES.

    (a) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense, when acquiring land for military purposes, should 
make every effort to do so by means of purchases from willing sellers 
and should employ condemnation, eminent domain, or seizure procedures 
only as a measure of last resort in cases of compelling national 
security requirements.
    (b) Congressional Notice.--Section 2663(a) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
    ``(3) Before using condemnation, eminent domain, or seizure 
procedures to acquire any interest in land, including land for 
temporary use, under this subsection, the Secretary of Defense or the 
Secretary of the military department concerned shall submit to the 
congressional defense committees a report that includes certification 
that the Secretary has made every effort to acquire the property 
without use of such procedures, explains the compelling requirements 
for the acquisition and why alternative acquisition strategies, such as 
purchases of easements, are inadequate, and describes the property for 
which the procedures will be employed. Proceedings may be brought with 
respect to the land only after the end of the 14-day period beginning 
on the date on which the report is received by the committees or, if 
over sooner, a period of 10 days elapses from the date on which a copy 
of the report is provided in an electronic medium pursuant to section 
480 of this title.''.

                Subtitle C--Base Closure and Realignment

SEC. 2831. TREATMENT OF LEASE PROCEEDS FROM MILITARY INSTALLATIONS 
              APPROVED FOR CLOSURE OR REALIGNMENT AFTER JANUARY 1, 
              2005.

    Paragraph (5) of section 2667(d) of title 10, United States Code, 
is amended to read as follows:
    ``(5) Money rentals received by the United States from a lease 
under subsection (f) at a military installation to be closed or 
realigned under a base closure law shall be deposited--
            ``(A) into the account established under section 2906(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), if the 
        installation was approved for closure or realignment before 
        January 1, 2005; or
            ``(B) into the account established under section 2906A(a) 
        of such Act, if the installation was approved for closure or 
        realignment after January 1, 2005.''.

                      Subtitle D--Land Conveyances

SEC. 2841. LAND CONVEYANCE, NAVAL AIR STATION, BARBERS POINT, HAWAII.

    (a) Conveyance of Property.--Not later than September 30, 2008, the 
Secretary of the Navy shall convey, by sale, lease, or a combination 
thereof, to any public or private person or entity outside the 
Department of Defense certain parcels of real property, including any 
improvements thereon, consisting of approximately 499 acres located at 
the former Naval Air Station, Barbers Point, Oahu, Hawaii, that are 
subject to the Ford Island Master Development Agreement developed 
pursuant to section 2814(a)(2) of title 10, United States Code, for the 
purpose of promoting the beneficial development of the real property.
    (b) Use of Existing Authority.--To implement subsection (a), the 
Secretary may utilize the special conveyance and lease authorities 
provided to the Secretary by subsections (b) and (c) of section 2814 of 
title 10, United States Code, for the purpose of developing or 
facilitating the development of Ford Island, Hawaii.
    (c) Description of Property.--The exact acreage and legal 
description of real property to be conveyed under subsection (a) shall 
be determined by a survey satisfactory to the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with a conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2842. MODIFICATION OF LAND ACQUISITION AUTHORITY, PERQUIMANS 
              COUNTY, NORTH CAROLINA.

    Section 2846 of the Military Construction Authorization Act for 
Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 1320), as 
amended by section 2865 of the Military Construction Authorization Act 
for Fiscal Year 2005 (division B of Public Law 108-375; 118 Stat. 2149) 
is further amended by striking ``840 acres'' and inserting ``1,540 
acres''.

SEC. 2843. LAND CONVEYANCE, RADFORD ARMY AMMUNITION PLANT, PULASKI 
              COUNTY, VIRGINIA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Department of Veterans' Services of the 
Commonwealth of Virginia (in this section referred to as the 
``Department'') all right, title, and interest of the United States in 
and to a parcel of real property, including any improvements thereon, 
consisting of approximately 85 acres at the Radford Army Ammunition 
Plant in Pulaski County, Virginia, for the purpose of permitting the 
Department to establish and operate a State-run cemetery for veterans 
of the Armed Forces.
    (b) Reversionary Interest.--If the Secretary determines at any time 
that the real property conveyed under subsection (a) is not being used 
in accordance with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the property shall 
revert, at the option of the Secretary, to the United States, and the 
United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection 
shall be made on the record after an opportunity for a hearing.
    (c) Payment of Costs of Conveyance.--
            (1) Payment required.--The Secretary shall require the 
        Department to cover costs to be incurred by the Secretary, or 
        to reimburse the Secretary for costs incurred by the Secretary, 
        to carry out the conveyance under subsection (a), including 
        survey costs, costs related to environmental documentation, and 
        other administrative costs related to the conveyance. If 
        amounts are collected from the Department in advance of the 
        Secretary incurring the actual costs, and the amount collected 
        exceeds the costs actually incurred by the Secretary to carry 
        out the conveyance, the Secretary shall refund the excess 
        amount to the Department.
            (2) Treatment of amounts received.--Amounts received as 
        reimbursement under paragraph (1) shall be credited to the fund 
        or account that was used to cover the costs incurred by the 
        Secretary in carrying out the conveyance. Amounts so credited 
        shall be merged with amounts in such fund or account and shall 
        be available for the same purposes, and subject to the same 
        conditions and limitations, as amounts in such fund or account.
    (d) Description of Real 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.
    (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.

                       Subtitle E--Other Matters

SEC. 2851. AVAILABILITY OF COMMUNITY PLANNING ASSISTANCE RELATING TO 
              ENCROACHMENT OF CIVILIAN COMMUNITIES ON MILITARY 
              FACILITIES USED FOR TRAINING BY THE ARMED FORCES.

     Section 2391(d)(1) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``For purposes of 
subsection (b)(1)(D), the term `military installation' includes a 
military facility owned and operated by any of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, Guam, or the 
Virgin Islands, even though the facility is not under the jurisdiction 
of the Department of Defense, if the Secretary of Defense determines 
that the military facility is subject to significant use for training 
by the armed forces.''.

SEC. 2852. PROHIBITIONS AGAINST MAKING CERTAIN MILITARY AIRFIELDS OR 
              FACILITIES AVAILABLE FOR USE BY CIVIL AIRCRAFT.

    (a) Prohibitions.--The Secretary of the Navy may not enter into any 
agreement concerning a military installation specified in subsection 
(b) that would--
            (1) authorize civil aircraft to regularly use an airfield 
        or any other property at the installation;
            (2) convey any real property at the installation, including 
        any airfield at the installation, for the purpose of permitting 
        the use of the property by civil aircraft.
    (b) Covered Installations.--The prohibitions in subsection (a) 
apply with respect to the following military installations:
            (1) Marine Corps Air Station, Camp Pendleton, California.
            (2) Marine Corps Air Station, Miramar, California.
            (3) Marine Corps Base, Camp Pendleton, California.
            (4) Naval Air Station, North Island, California.
    (c) Repeal of Existing Limited Prohibition.--Section 2894 of the 
Military Construction Authorization Act for Fiscal Year 1996 (division 
B of Public Law 104-106; 110 Stat. 592) is repealed.

SEC. 2853. NAMING HOUSING FACILITY AT FORT CARSON, COLORADO, IN HONOR 
              OF JOEL HEFLEY, A MEMBER OF THE HOUSE OF REPRESENTATIVES.

    (a) Findings.--Congress makes the following findings:
            (1) Representative Joel Hefley was elected to represent 
        Colorado's 5th Congressional district in 1986 and has served in 
        the House of Representatives since that time with distinction, 
        class, integrity, and honor.
            (2) Representative Hefley has served on the Committee on 
        Armed Services of the House of Representatives for 18 years, 
        including service as Chairman of the Subcommittee on Military 
        Installations and Facilities from 1995 through 2000 and, since 
        2001, as Chairman of the Subcommittee on Readiness.
            (3) Representative Hefley's colleagues know him to be a 
        fair and effective lawmaker who works for the national interest 
        while never forgetting his Western roots.
            (4) Representative Hefley's efforts on the Committee on 
        Armed Services have been instrumental to the military value of, 
        and quality of life at, installations in the State of Colorado, 
        including Fort Carson, Cheyenne Mountain, Peterson Air Force 
        Base, Schriever Air Force Base, Buckley Air Force Base, and the 
        United States Air Force Academy.
            (5) Representative Hefley was a leader in efforts to retain 
        and expand Fort Carson as an essential part of the national 
        defense system during the Defense Base Closure and Realignment 
        process.
            (6) Representative Hefley has consistently advocated for 
        providing members of the Armed Forces and their families with 
        quality, safe, and affordable housing and supportive 
        communities.
            (7) Representative Hefley spearheaded the Military Housing 
        Privatization Initiative to eliminate inadequate housing on 
        military installations, with the first pilot program located at 
        Fort Carson.
            (8) Representative Hefley's leadership on the Military 
        Housing Privatization Initiative has allowed for the 
        privatization of more than 121,000 units of military family 
        housing, which brought meaningful improvements to living 
        conditions for thousands of members of the Armed Forces and 
        their spouses and children at installations throughout the 
        United States.
            (9) It is fitting and proper that an appropriate military 
        family housing area or structure at Fort Carson be designated 
        in honor of Representative Hefley, and it is further 
        appropriate that division B of this Act, which authorizes funds 
        for fiscal year 2007 for military construction projects, land 
        acquisition, and family housing projects and facilities, be 
        designated in honor of Representative Hefley.
    (b) Designation.--The Secretary of the Army shall designate one of 
the military family housing areas or facilities constructed for Fort 
Carson, Colorado, using the authority provided by subchapter IV of 
chapter 169 of title 10, United States Code, as the ``Joel Hefley 
Village''.

SEC. 2854. NAMING NAVY AND MARINE CORPS RESERVE CENTER AT ROCK ISLAND, 
              ILLINOIS, IN HONOR OF LANE EVANS, A MEMBER OF THE HOUSE 
              OF REPRESENTATIVES.

    (a) Findings.--Congress makes the following findings:
            (1) Representative Lane Evans was elected to the House of 
        Representatives in 1982 and is now in his 12th term 
        representing the people of Illinois' 17th Congressional 
        district.
            (2) As a member of the Committee on Armed Services of the 
        House of Representatives, Representative Evans has worked to 
        bring common sense priorities to defense spending and 
        strengthen the military's conventional readiness.
            (3) Representative Evans has been a tireless advocate for 
        military veterans, ensuring that veterans receive the medical 
        care they need and advocating for individuals suffering from 
        post-traumatic stress disorder and Gulf War Syndrome.
            (4) Representative Evans' efforts to improve the transition 
        of individuals from military service to the care of the 
        Department of Veterans Affairs will continue to benefit 
        generations of veterans long into the future.
            (5) Representative Evans is credited with bringing new 
        services to veterans living in his Congressional district, 
        including outpatient clinics in the Quad Cities and Quincy and 
        the Quad-Cities Vet Center.
            (6) Representative Evans has worked with local leaders to 
        promote the Rock Island Arsenal and has seen it win new jobs 
        and missions through his support.
            (7) In honor of his service in the Marine Corps and to his 
        district and the United States, it is fitting and proper that 
        the Navy and Marine Corps Reserve Center at Rock Island Arsenal 
        be named in honor of Representative Evans.
    (b) Designation.--The Navy and Marine Corps Reserve Center at Rock 
Island Arsenal, Illinois, shall be known and designated as the ``Lane 
Evans Navy and Marine Corps Reserve Center''. Any reference in a law, 
map, regulation, document, paper, or other record of the United States 
to the Navy and Marine Corps Reserve Center at Rock Island Arsenal 
shall be deemed to be a reference to the Lane Evans Navy and Marine 
Corps Reserve Center.

SEC. 2855. NAMING OF RESEARCH LABORATORY AT AIR FORCE ROME RESEARCH 
              SITE, ROME, NEW YORK, IN HONOR OF SHERWOOD L. BOEHLERT, A 
              MEMBER OF THE HOUSE OF REPRESENTATIVES.

    The new laboratory building at the Air Force Rome Research Site, 
Rome, New York, shall be known and designated as the ``Sherwood L. 
Boehlert Engineering Center''. Any reference in a law, map, regulation, 
document, paper, or other record of the United States to such 
laboratory facility shall be deemed to be a reference to the Sherwood 
L. Boehlert Engineering Center.

 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 cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Plan for transformation of National Nuclear Security 
                            Administration nuclear weapons complex.
Sec. 3112. Extension of Facilities and Infrastructure Recapitalization 
                            Program.
Sec. 3113. Utilization of contributions to Global Threat Reduction 
                            Initiative.
Sec. 3114. Utilization of contributions to Second Line of Defense 
                            program.
Sec. 3115. Two-year extension of authority for appointment of certain 
                            scientific, engineering, and technical 
                            personnel.
Sec. 3116. National Academy of Sciences study of quantification of 
                            margins and uncertainty methodology for 
                            assessing and certifying the safety and 
                            reliability of the nuclear stockpile.
Sec. 3117. Consolidation of counterintelligence programs of Department 
                            of Energy and National Nuclear Security 
                            Administration.

         Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated to the Department of Energy for fiscal year 2007 for 
the activities of the National Nuclear Security Administration in 
carrying out programs necessary for national security in the amount of 
$9,265,811,000 to be allocated as follows:
            (1) For weapons activities, $6,467,889,000.
            (2) For defense nuclear nonproliferation activities, 
        $1,616,213,000.
            (3) For naval reactors, $795,133,000.
            (4) For the Office of the Administrator for Nuclear 
        Security, $386,576,000.
    (b) Authorization of New Plant Projects.--From funds referred to in 
subsection (a) that are available for carrying out plant projects, the 
Secretary of Energy may carry out the following new plant projects:
            (1) For weapons activities:
                    Project 07-D-140, project engineering and design, 
                various locations, $4,977,000.
                    Project 07-D-220, Radioactive Liquid Waste 
                Treatment Facility upgrade, Los Alamos National 
                Laboratory, $14,828,000.
                    Project 07-D-253, TA-1 Heating Systems 
                Modernization, Facilities and Infrastructure 
                Recapitalization Program, $14,500,000.
            (2) For defense nuclear nonproliferation activities:
                    Project 07-SC-05, Physical Sciences Facility, 
                Pacific Northwest National Laboratory, $4,220,000.
            (3) For naval reactors:
                    Project 07-D-190, project engineering and design, 
                Materials Research Technology Complex, $1,485,000.

SEC. 3102. DEFENSE ENVIRONMENTAL CLEANUP.

     Funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 2007 for defense environmental cleanup 
activities in carrying out programs necessary for national security in 
the amount of $5,440,312,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

     Funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 2007 for other defense activities in carrying 
out programs necessary for national security in the amount of 
$717,788,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

     Funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 2007 for defense nuclear waste disposal 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 
$388,080,000.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3111. PLAN FOR TRANSFORMATION OF NATIONAL NUCLEAR SECURITY 
              ADMINISTRATION NUCLEAR WEAPONS COMPLEX.

    (a) Plan Required.--Subtitle A of title XLII of the Atomic Energy 
Defense Act (division D of Public Law 107-314) is amended by inserting 
after section 4213 (50 U.S.C. 2533) the following new section:

``SEC. 4214. PLAN FOR TRANSFORMATION OF NATIONAL NUCLEAR SECURITY 
              ADMINISTRATION NUCLEAR WEAPONS COMPLEX.

    ``(a) Plan Required.--The Secretary of Energy and the Secretary of 
Defense shall develop a plan to transform the nuclear weapons complex 
so as to achieve a responsive infrastructure by 2030. The plan shall be 
designed to accomplish the following objectives:
            ``(1) To maintain the safety, reliability, and security of 
        the United States nuclear weapons stockpile.
            ``(2) To continue Stockpile Life Extension Programs that 
        the Nuclear Weapons Council considers necessary.
            ``(3) To prepare to produce replacement warheads under the 
        Reliable Replacement Warhead program at a rate necessary to 
        meet future stockpile requirements, commencing with a first 
        production unit in 2012 and achieving steady-state production 
        using modern manufacturing processes by 2025.
            ``(4) To eliminate, within the nuclear weapons complex, 
        duplication of production capability except to the extent 
        required to ensure the safety, reliability, and security of the 
        stockpile.
            ``(5) To maintain the current philosophy within the 
        national security laboratories of peer review of nuclear 
        weapons designs while eliminating duplication of laboratory 
        capabilities except to the extent required to ensure the 
        safety, reliability, and security of the stockpile.
            ``(6) To maintain the national security mission, and in 
        particular the science-based Stockpile Stewardship Program, as 
        the primary mission of the national security laboratories while 
        optimizing the work-for-others activities of those laboratories 
        to support other national security objectives in fields such as 
        intelligence and homeland security.
            ``(7) To consolidate to the maximum extent practicable, and 
        to provide for the ultimate disposition of, special nuclear 
        material throughout the nuclear weapons complex, with the 
        ultimate goal of eliminating Category I and II special nuclear 
        material from the national security laboratories no later than 
        March 1, 2010, so as to further reduce the footprint of the 
        nuclear weapons complex, reduce security costs, and reduce 
        transportation costs for special nuclear material.
            ``(8) To employ a risk-based approach to ensure compliance 
        with Design Basis Threat security requirements.
            ``(9) To expeditiously dismantle inactive nuclear weapons 
        to reduce the size of the stockpile to the lowest level 
        required by the Nuclear Weapons Council.
            ``(10) To operate the nuclear weapons complex in a more 
        cost-effective manner.
    ``(b) Report.--Not later than February 1, 2007, the Secretary of 
Energy and Secretary of Defense shall submit to the congressional 
defense committees a report on the transformation plan required by 
subsection (a). The report shall address each of the objectives 
required by subsection (c) and also include each of the following:
            ``(1) A comprehensive list of the capabilities, facilities, 
        and project staffing that the National Nuclear Security 
        Administration will need to have in place at the nuclear 
        weapons complex as of 2030 to meet the requirements of the 
        transformation plan.
            ``(2) a comprehensive list of the capabilities and 
        facilities that the National Nuclear Security Administration 
        currently has in place at the nuclear weapons complex that will 
        not be needed as of 2030 to meet the requirements of the 
        transformation plan.
            ``(3) A plan for implementing the transformation plan, 
        including a schedule with incremental milestones.
    ``(c) Consultation.--The Secretary of Energy and the Secretary of 
Defense shall develop the transformation plan required by subsection 
(a) in consultation with the Nuclear Weapons Council.
    ``(d) Definition.--In this section, the term `national security 
laboratory' has the meaning given such term in section 3281 of the 
National Nuclear Security Administration Act (50 U.S.C. 2471).''.
    (b) Inclusion in Future-Years Nuclear Security Program.--Section 
3253 of the National Nuclear Security Administration Act (50 U.S.C. 
2453) is amended in subsection (b) by adding at the end the following 
new paragraph:
            ``(5) A statement of proposed budget authority, estimated 
        expenditures, and proposed appropriations necessary to support 
        the programs required to implement the plan to transform the 
        nuclear weapons complex under section 4214 of the Atomic Energy 
        Defense Act, together with a detailed description of how the 
        funds identified for each program element specified pursuant to 
        paragraph (1) in the budget for the Administration for each 
        fiscal year during that five-fiscal-year period will help 
        ensure that those programs are implemented. The statement shall 
        assume year-to-year funding profiles that account for increases 
        only for projected inflation.''.

SEC. 3112. EXTENSION OF FACILITIES AND INFRASTRUCTURE RECAPITALIZATION 
              PROGRAM.

    Section 3114 of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 50 U.S.C. 2453 note), as amended by 
section 3113 of the Ronald W. Reagan National Defense Authorization Act 
for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2160), is amended--
            (1) in subsection (a)(3)(F), by striking ``2011'' and 
        inserting ``2013''; and
            (2) in subsection (b), by striking ``2011'' and inserting 
        ``2013''.

SEC. 3113. UTILIZATION OF CONTRIBUTIONS TO GLOBAL THREAT REDUCTION 
              INITIATIVE.

    Section 3132 of the Ronald W. Reagan National Defense Authorization 
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2166; 50 U.S.C. 
2569) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by adding after subsection (e) the following new 
        subsection:
    ``(f) Participation by Other Governments and Organizations.--
            ``(1) In general.--The Secretary of Energy may, with the 
        concurrence of the Secretary of State, enter into one or more 
        agreements with any person (including a foreign government, 
        international organization, or multinational entity) that the 
        Secretary of Energy considers appropriate under which the 
        person contributes funds for purposes of the program under this 
        section.
            ``(2) Retention and use of amounts.--The Secretary of 
        Energy may retain and use amounts contributed under an 
        agreement under paragraph (1) for purposes of the program under 
        this section. Amounts so contributed shall be retained in a 
        separate fund established in the Treasury for such purposes and 
        shall be available until expended, without further 
        appropriation, for such purposes.''.

SEC. 3114. UTILIZATION OF CONTRIBUTIONS TO SECOND LINE OF DEFENSE 
              PROGRAM.

    (a) In General.--The Secretary of Energy may, with the concurrence 
of the Secretary of State, enter into one or more agreements with any 
person (including a foreign government, international organization, or 
multinational entity) that the Secretary of Energy considers 
appropriate under which the person contributes funds for purposes of 
the Second Line of Defense program of the National Nuclear Security 
Administration.
    (b) Retention and Use of Amounts.--The Secretary of Energy may 
retain and use amounts contributed under an agreement under subsection 
(a) for purposes of the Second Line of Defense program. Amounts so 
contributed shall be retained in a separate fund established in the 
Treasury for such purposes and shall be available until expended, 
without further appropriation, for such purposes.
    (c) Termination of Authority.--The authority to accept 
contributions under subsection (a) terminates December 31, 2013.

SEC. 3115. TWO-YEAR EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN 
              SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.

    Section 4601(c)(1) of the Atomic Energy Defense Act (50 U.S.C. 
2701(c)(1)) is amended by striking ``September 30, 2006'' and inserting 
``September 30, 2008''.

SEC. 3116. NATIONAL ACADEMY OF SCIENCES STUDY OF QUANTIFICATION OF 
              MARGINS AND UNCERTAINTY METHODOLOGY FOR ASSESSING AND 
              CERTIFYING THE SAFETY AND RELIABILITY OF THE NUCLEAR 
              STOCKPILE.

    (a) Study Required.--The Secretary of Energy shall, as soon as 
practicable and no later than 120 days after the date of the enactment 
of this Act, enter into an arrangement with the National Research 
Council of the National Academy of Sciences for the Council to carry 
out a study of the quantification of margins and uncertainty 
methodology used by the national security laboratories for assessing 
and certifying the safety and reliability of the nuclear stockpile.
    (b) Matters Included.--The study required by subsection (a) shall 
evaluate the following:
            (1) The use of the quantification of margins and 
        uncertainty methodology by the national security laboratories, 
        including underlying assumptions of weapons performance and the 
        ability of modeling and simulation tools to predict nuclear 
        explosive package characteristics.
            (2) The manner in which that methodology is used to conduct 
        the annual assessments of the nuclear weapons stockpile.
            (3) How the use of that methodology compares and contrasts 
        between the national security laboratories.
            (4) The process by which conflicts between the national 
        security laboratories in the application of that methodology 
        are resolved.
            (5) An assessment of whether the application of the 
        quantification of margins and uncertainty used for annual 
        assessments and certification of the nuclear weapons stockpile 
        can be applied to the planned Reliable Replacement Warhead 
        program so as to carry out the objective of that program to 
        reduce the likelihood of the resumption of underground testing 
        of nuclear weapons.
    (c) Report.--
            (1) In general.--Not later than one year after the date on 
        which the arrangement required by subsection (a) is entered 
        into, the National Research Council shall submit to the 
        Secretary of Energy and the congressional committees specified 
        in paragraph (2), a report on the study that addresses the 
        matters listed in subsection (b) and any other matters 
        considered by the National Research Council to be relevant to 
        the use of the quantification of margins and uncertainty 
        methodology in assessing the current or future nuclear weapons 
        stockpile.
            (2) Specified committees.--The congressional committees 
        referred to in paragraph (1) are the following:
                    (A) The Committee on Armed Services of the Senate.
                    (B) The Committee on Armed Services of the House of 
                Representatives.
    (d) Provision of Information.--The Secretary of Energy shall, in a 
timely manner, make available to the National Research Council all 
information that the National Research Council considers necessary to 
carry out its responsibilities under this section.
    (e) Funding.--Of the amounts made available to the Department of 
Energy pursuant to the authorization of appropriations in section 3101, 
$2,000,000 shall be available only for carrying out the study required 
by this section.

SEC. 3117. CONSOLIDATION OF COUNTERINTELLIGENCE PROGRAMS OF DEPARTMENT 
              OF ENERGY AND NATIONAL NUCLEAR SECURITY ADMINISTRATION.

    (a) Transfer of Functions.--The functions, personnel, funds, 
assets, and other resources of the Office of Defense Nuclear 
Counterintelligence of the National Nuclear Security Administration are 
transferred to the Secretary of Energy, to be administered (except to 
any extent otherwise directed by the Secretary) by the Director of the 
Office of Counterintelligence of the Department of Energy.
    (b) NNSA Counterintelligence Office Abolished.--
            (1) In general.--Section 3232 of the National Nuclear 
        Security Administration Act (50 U.S.C. 3232) is amended--
                    (A) by amending the heading to read as follows:

``SEC. 3232. OFFICE OF DEFENSE NUCLEAR SECURITY.'';

                    (B) by striking subsection (a) and inserting the 
                following new subsection (a):
    ``(a) Establishment.--There is within the Administration an Office 
of Defense Nuclear Security, headed by a Chief appointed by the 
Secretary of Energy. The Administrator shall recommend to the Secretary 
suitable candidates for such position.'';
                    (C) by striking subsection (b); and
                    (D) by redesignating subsection (c) as subsection 
                (b).
            (2) Conforming amendment.--The table of sections at the 
        beginning of the National Nuclear Security Administration Act 
        is amended by striking the item relating to section 3232 and 
        inserting the following new item:

``Sec. 3232. Office of Defense Nuclear Security.''.
    (c) Counterintelligence Programs at NNSA Facilities.--Section 3233 
of the National Nuclear Security Administration Act (50 U.S.C. 2423) is 
amended--
            (1) in each of subsections (a) and (b), by striking ``The 
        Administrator shall'' and inserting ``The Secretary of Energy 
        shall''; and
            (2) in subsection (b), by striking ``Office of Defense 
        Nuclear Counterintelligence'' and inserting ``Office of 
        Counterintelligence of the Department of Energy''.
    (d) Status of NNSA Intelligence and Counterintelligence 
Personnel.--Section 3220 of the National Nuclear Security 
Administration Act (50 U.S.C. 2410) is amended by adding at the end the 
following new subsection:
    ``(e) Status of Intelligence and Counterintelligence Personnel.--
Notwithstanding the restrictions of subsections (a) and (b), each 
officer or employee of the Administration, or of a contractor of the 
Administration, who is carrying out activities related to intelligence 
or counterintelligence shall, in carrying out those activities, be 
subject to the authority, direction, and control of the Secretary of 
Energy or the Secretary's delegate.''.
    (e) Service From Which DOE Intelligence Director and 
Counterintelligence Director Appointed.--Section 215(b)(1) (42 U.S.C. 
7144b(b)(1)) and section 216(b)(1) (42 U.S.C. 7144c(b)(1)) of the 
Department of Energy Organization Act are each amended by striking 
``which shall be a position in the Senior Executive Service'' and 
inserting ``who shall be an employee in the Senior Executive Service, 
the Senior Intelligence Service, the Senior National Intelligence 
Service, or any other Service that the Secretary, in coordination with 
the Director of National Intelligence, considers appropriate''.
    (f) Intelligence Executive Committee; Budget for Intelligence and 
Counterintelligence.--Section 214 of the Department of Energy 
Organization Act (42 U.S.C. 7144a) is amended--
            (1) by inserting ``(a)'' before ``The Secretary shall be 
        responsible''; and
            (2) by adding at the end the following:
    ``(b)(1) There is within the Department an Intelligence Executive 
Committee. The Committee shall consist of the Deputy Secretary of 
Energy, who shall chair the Committee, and each Under Secretary of 
Energy.
    ``(2) The Committee shall be staffed by the Director of the Office 
of Intelligence and the Director of the Office of Counterintelligence.
    ``(3) The Secretary shall use the Committee to assist in developing 
and promulgating the counterintelligence and intelligence policies, 
requirements, and priorities of the Department.
    ``(c) In the budget justification materials submitted to Congress 
in support of each budget submitted by the President to Congress under 
title 31, United States Code, the amounts requested for the Department 
for intelligence functions and the amounts requested for the Department 
for counterintelligence functions shall each be specified in 
appropriately classified individual, dedicated program elements. Within 
the amounts requested for counterintelligence functions, the amounts 
requested for the National Nuclear Security Administration shall be 
specified separately from the amounts requested for other elements of 
the Department.''.
    (g) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Inspector General of the Department of Energy shall 
submit to Congress a report on the implementation of this section and 
of the amendments required by this section. The report shall include 
the Inspector General's evaluation of that implementation.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

     There are authorized to be appropriated for fiscal year 2007, 
$22,260,000 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. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously 
                            authorized disposals from National Defense 
                            Stockpile.

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 2007, the 
National Defense Stockpile Manager may obligate up to $52,132,000 of 
the funds in the National Defense Stockpile Transaction Fund 
established under subsection (a) of section 9 of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98h) for the authorized 
uses of such funds under subsection (b)(2) of such section, 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. 3302. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR PREVIOUSLY 
              AUTHORIZED DISPOSALS FROM NATIONAL DEFENSE STOCKPILE.

    (a) Fiscal Year 1999 Disposal Authority.--Section 3303(a) of the 
Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 50 U.S.C. 98d note), as amended by section 3302 of 
the Ronald W. Reagan National Defense Authorization Act for Year 2005 
(Public Law 108-375; 118 Stat. 2193) and section 3302 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3545), is amended--
            (1) by striking ``and'' at the end of paragraph (5); and
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(7) $1,365,000,000 by the end of fiscal year 2014.''.
    (b) Fiscal Year 1998 Disposal Authority.--Section 3305(a)(5) of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 50 U.S.C. 98d note), as amended by section 3305 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1390), is amended by striking ``2006'' and inserting ``2008''.
    (c) Fiscal Year 1997 Disposal Authority.--Section 3303 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 50 U.S.C. 98d note), as amended by section 3402(f) of the 
National Defense Authorization Act for Year 2000 (Public Law 106-65; 
113 Stat. 973) and section 3304(c) of the National Defense 
Authorization Act for 2002 (Public Law 107-107; 115 Stat. 1390), is 
amended--
            (1) in subsection (a), by striking paragraph (2) and 
        inserting the following new paragraph (2):
            ``(2) $720,000,000 during the 12-fiscal year period ending 
        September 30, 2008.''; and
            (2) in subsection (b)(2), by striking ``the 10-fiscal year 
        period'' and inserting ``the period''.

                 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 $18,810,000 for fiscal year 2007 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 2007.

    Funds are hereby authorized to be appropriated for fiscal year 
2007, 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, $138,647,000, of which $19,500,000 shall be 
        available only for paying reimbursement under section 3517 of 
        the Maritime Security Act of 2003 (46 U.S.C. 53101 note).
            (2) For expenses to dispose of obsolete vessels in the 
        National Defense Reserve Fleet, including provision of 
        assistance under section 7 of Public Law 92-402, $25,740,000.

SEC. 3502. LIMITATION ON TRANSFER OF MARITIME SECURITY FLEET OPERATING 
              AGREEMENTS.

    Section 53105(e) of title 46, United States Code, is amended--
            (1) by inserting ``(1) In General.--'' before the first 
        sentence;
            (2) by moving paragraph (1) (as designated by the amendment 
        made by paragraph (1) of this subsection) so as to appear 
        immediately below the heading for such subsection, and 2 ems to 
        the right; and
            (3) by adding at the end the following:
            ``(2) Limitation.--The Secretary of Defense may not approve 
        under paragraph (1) transfer of an operating agreement to a 
        person that is not a citizen of the United States under section 
        2 of the Shipping Act, 1916 (46 U.S.C. App. 802), unless the 
        Secretary of Defense determines that there is no person who is 
        a citizen under such section and is interested in obtaining the 
        operating agreement for a vessel that is otherwise eligible to 
        be included in the Fleet under section 53102(b).''.

SEC. 3503. APPLICABILITY TO CERTAIN MARITIME ADMINISTRATION VESSELS OF 
              LIMITATIONS ON OVERHAUL, REPAIR, AND MAINTENANCE OF 
              VESSELS IN FOREIGN SHIPYARDS.

    Section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 
1744) is amended by inserting after subsection (c) the following:
    ``(d) Applicability of Limitations on Overhaul, Repair, and 
Maintenance in Foreign Shipyards.--
            ``(1) Application of limitation.--The provisions of section 
        7310 of title 10, United States Code, shall apply to vessels 
        specified in subsection (b), and to the Secretary of 
        Transportation with respect to those vessels, in the same 
        manner as those provisions apply to vessels specified in 
        subsection (b) of such section, and to the Secretary of the 
        Navy, respectively.
            ``(2) Covered vessels.--Vessels specified in this paragraph 
        are vessels maintained by the Secretary of Transportation in 
        support of the Department of Defense, including any vessel 
        assigned by the Secretary of Transportation to the Ready 
        Reserve Force that is owned by the United States.''.

SEC. 3504. VESSEL TRANSFER AUTHORITY.

    The Secretary of Transportation may transfer or otherwise make 
available without reimbursement to any other department a vessel under 
the jurisdiction of the Department of Transportation, upon request by 
the Secretary of the department that receives the vessel.

SEC. 3505. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES: ALTERNATE 
              SERVICE REQUIREMENTS.

    (a) Service on Active Duty.--Section 1303(e) of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1295b(e)) is amended by adding at the end the 
following:
    ``(6)(A) An individual who for the 5-year period following 
graduation from the Academy, serves as a commissioned officer on active 
duty in an armed force of the United States or as a commissioned 
officer in the National Oceanic and Atmospheric Administration shall be 
excused from the requirements of subparagraphs (C), (D), and (E) of 
paragraph (1).
    ``(B) The Secretary may modify or waive any of the terms and 
conditions set forth in paragraph (1) through the imposition of 
alternative service requirements.''.
    (b) Application.--Paragraph (6) of section 1303(e) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1295b(e)), as added by this 
subsection, applies only to an individual who enrolls as a cadet at the 
United States Merchant Marine Academy, and signs an agreement under 
section paragraph (1) of that section, after the date of the enactment 
of this Act.

SEC. 3506. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES: SERVICE 
              OBLIGATION PERFORMANCE REPORTING REQUIREMENT.

    (a) In General.--Section 1303(e) of the Merchant Marine Act, 1936 
(46 U.S.C. App. 1295b(e)) is further amended by adding at the end the 
following:
    ``(7)(A) Subject to any otherwise applicable restrictions on 
disclosure in section 552a of title 5, United States Code, the 
Secretary of Defense or the Secretary of the department in which the 
Coast Guard is operating, and the Administrator of the National Oceanic 
and Atmospheric Administration--
                    ``(i) shall report the status of obligated service 
                of an individual graduate of the Academy upon request 
                of the Secretary; and
                    ``(ii) may, in their discretion, notify the 
                Secretary of any failure of the graduate to perform the 
                graduate's duties, either on active duty or in the 
                Ready Reserve component of their respective service, or 
                as a commissioned officer of the National Oceanic and 
                Atmospheric Administration, respectively.
    ``(B) A report or notice under subparagraph (A) shall identify any 
graduate determined to have failed to comply with service obligation 
requirements and provide all required information as to why such 
graduate failed to comply.
    ``(C) Upon receipt of such a report or notice, such graduate may be 
considered to be in default of the graduate's service obligations by 
the Secretary, and subject to all remedies the Secretary may have with 
respect to such a default.''.
    (b) Application.--The amendment made by this section does not apply 
with respect to an agreement entered into under section 1303(e) of the 
Merchant Marine Act, 1936 (46 U.S.C. 1295b(e)) before the date of the 
enactment of this Act.

SEC. 3507. TEMPORARY AUTHORITY TO TRANSFER OBSOLETE COMBATANT VESSELS 
              TO NAVY FOR DISPOSAL.

    The Secretary of Transportation shall, subject to the availability 
of appropriations and consistent with section 1535 of title 31, United 
States Code, popularly known as the Economy Act, transfer to the 
Secretary of the Navy during fiscal year 2006 for disposal by the Navy, 
no fewer than 6 combatant vessels in the nonretention fleet of the 
Maritime Administration that are acceptable to the Secretary of the 
Navy.

SEC. 3508. TEMPORARY REQUIREMENT TO MAINTAIN READY RESERVE FORCE.

    (a) Report to Congress.--The Secretary of Defense, in consultation 
with the Secretary of Transportation, shall submit to Congress by not 
later than March 1, 2007, a report describing a five-year plan for 
maintaining the capability of the Ready Reserve Force of the National 
Defense Reserve Fleet necessary to support Department of Defense 
wartime missions and support to civil authority missions.
    (b) Requirement to Maintain the Ready Reserve Force at Current 
Strength.--The Secretary of Transportation shall maintain 58 vessels in 
the Ready Reserve Force of the National Defense Reserve Fleet until the 
end of the 45-day period beginning on the date the report required 
under subsection (a) is submitted to Congress.
            Amend the title so as to read: ``A bill to authorize 
        appropriations for fiscal year 2007 for military activities of 
        the Department of Defense, for military construction, and for 
        defense activities of the Department of Energy, to prescribe 
        military personnel strengths for such fiscal year, and for 
        other purposes.''.
                                                 Union Calendar No. 253

109th CONGRESS

  2d Session

                               H. R. 5122

                          [Report No. 109-452]

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 2007 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2007, and for other purposes.

_______________________________________________________________________

                              May 5, 2006

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed`