338 
Subtitle C—Chemical 
Demilitarization Program 
SEC. 921. TRANSFER TO SECRETARY OF THE ARMY OF RE-
SPONSIBILITY 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 organi-
zation within the Department of the Army specified in sec-
tion 1412(e) of Public Law 99–145 (50 U.S.C. 1521(e)). 
‘‘(b) CONTINUED IMPLEMENTATION OF PREVIOUSLY 
SELECTED ALTERNATIVE TECHNOLOGIES.—(1) In car-
rying out the destruction of lethal chemical munitions at 
Pueblo Chemical Depot, Colorado, the Secretary of the 
Army shall continue to implement fully the alternative tech-
nology for such destruction at that depot selected by the 
Under Secretary of Defense for Acquisition, Technology, 
and Logistics on July 16, 2002. 
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‘‘(2) In carrying out the destruction of lethal chemical 
munitions at Blue Grass Army Depot, Kentucky, the Sec-
retary of the Army shall continue to implement fully the 
alternative technology for such destruction at that depot se-
lected by the Under Secretary of Defense for Acquisition, 
Technology, and Logistics on February 3, 2003.’’. 
SEC. 922. COMPTROLLER GENERAL REVIEW OF COST-BEN-
EFIT ANALYSIS OF OFF-SITE VERSUS ON-SITE 
TREATMENT AND DISPOSAL OF HYDROLY-
SATE 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 pre-
pared by the Secretary of the Army entitled ‘‘Cost-Benefit 
Analysis of Off-Site Versus On-Site Treatment and Dis-
posal 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 hydrol-
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ysate 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 pre-
sented for the three technologies considered. 
(c) DELAY PENDING REPORT.—The Secretary of the 
Army shall not proceed with any action to transport or re-
locate neutralized bulk nerve agent (other than those small 
quantities necessary for laboratory evaluation of the dis-
posal process) from the Newport Chemical Depot until— 
(1) the report required by subsection (a) is sub-
mitted; and 
(2) a period of 60 days expires after the submis-
sion of the report. 
SEC. 923. SENSE OF CONGRESS REGARDING THE SAFE AND 
EXPEDITIOUS DISPOSAL OF CHEMICAL WEAP-
ONS. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The disposal of chemical weapons needs to be 
accomplished as safely and expeditiously as possible. 
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(2) It is apparent, however, that any disposal 
method for chemical weapons that involves the trans-
portation 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 ap-
proving military installations for closure or realign-
ment should be considered. 
Subtitle D—Intelligence-Related 
Matters 
SEC. 931. REPEAL OF TERMINATION OF AUTHORITY OF SEC-
RETARY OF DEFENSE TO ENGAGE IN COM-
MERCIAL ACTIVITIES AS SECURITY FOR IN-
TELLIGENCE 
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. 
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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 Depart-
ment 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 Depart-
ment 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 De-
fense 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 Re-
view 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. 
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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 De-
partment of Defense in this division for fiscal year 
2007 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—The total amount of author-
izations 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 sec-
tion 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. 
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(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized 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 sub-
section (a). 
SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPRO-
PRIATIONS FOR FISCAL YEAR 2006. 
Amounts authorized to be appropriated to the Depart-
ment 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 ad-
justed, with respect to any such authorized amount, by the 
amount by which appropriations pursuant to such author-
ization 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 TRANS-
FER AUTHORITY. 
Section 1001(a)(2) of the National Defense Authoriza-
tion Act for Fiscal Year 2006 (Public Law 109–163; 119 
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345 
Stat. 3418) is amended by striking ‘‘$3,500,000,000’’ and 
inserting ‘‘$3,750,000,000’’. 
SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COM-
MON-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 speci-
fied 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 author-
ized 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: 
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(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 Or-
ganization (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 giv-
ing the advice and consent of the Senate to the ratifi-
cation 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 res-
olution), approved by the Senate on April 30, 1998. 
SEC. 1005. REPORT ON BUDGETING FOR FLUCTUATIONS IN 
FUEL COST RATES. 
(a) SECRETARY OF DEFENSE REPORT.— 
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347 
(1) REPORT
ON
BUDGETING
FOR
FUEL
COST 
FLUCTUATIONS.—Not later than January 15, 2007, 
the Secretary of Defense shall submit to the Com-
mittee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representa-
tives a report on the fuel rate and cost projection used 
in the annual Department of Defense budget presen-
tation. 
(2) MATTERS TO BE INCLUDED.—In the report 
under paragraph (1), the Secretary shall— 
(A) identify alternative approaches for se-
lecting fuel rates that would produce more real-
istic estimates of amounts required to be appro-
priated or otherwise made available for the De-
partment of Defense to accommodate fuel rate 
fluctuations; 
(B) discuss the advantages and disadvan-
tages of each approach identified pursuant to 
subparagraph (A); and 
(C) identify the Secretary’s preferred ap-
proach among the alternative identified pursu-
ant to subparagraph (A) and provide the Sec-
retary’s rationale for preferring that approach. 
(3) 
IDENTIFICATION
OF
ALTERNATIVE
AP-
PROACHES.—In identifying alternative approaches 
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348 
pursuant to paragraph (2)(A), the Secretary shall ex-
amine— 
(A) approaches used by other Federal de-
partments 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 sub-
section (a), including the basis for the Secretary’s conclu-
sions 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 SAV-
INGS 
RESULTING 
FROM 
LOWER-THAN-EX-
PECTED 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 appro-
priated 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. 
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(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 NA-
TIONS BASED UPON VESSEL CLASS. 
Section 7307(a) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘disposition of that vessel is ap-
proved’’ 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 sen-
tences: ‘‘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 au-
thorization by law for the disposal of vessels of a spec-
ified class, the Secretary may dispose of vessels of that 
class pursuant to that authorization only in the num-
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ber of such vessels specified in that law as being au-
thorized for disposal.’’. 
SEC. 1012. OVERHAUL, REPAIR, AND MAINTENANCE OF VES-
SELS IN FOREIGN SHIPYARDS. 
(a) IN GENERAL.—Section 7310 of title 10, United 
States Code, is amended to read as follows: 
‘‘§ 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 over-
hauled, 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. 
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‘‘(B) The Secretary of the Navy shall submit to the 
congressional defense committees each year a written certifi-
cation of those vessels that are excluded from this section. 
The certification shall be submitted each year with the an-
nual 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 nau-
tical 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 reas-
signment 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 
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‘‘(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 rea-
sons 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 de-
ploy, to continue on a deployment, or to comply 
with regulatory requirements. 
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353 
‘‘(ii) Standard maintenance, but only to the 
extent that such maintenance is absolutely nec-
essary to ensure machinery and equipment oper-
ational reliability or to comply with regulatory 
requirements. 
‘‘(iii) Repair or maintenance that is not ex-
ecuted 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 with-
out 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 Puer-
to 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. 
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354 
(c) LIMITATION ON APPLICATION TO VESSEL OPER-
ATING 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 AR-
RANGEMENT FOR GUAM SHIPYARD. 
(a) REPORT REQUIRED.— Not later than December 
15, 2006, the Secretary of the Navy shall submit to the Com-
mittee 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 enti-
ties 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 op-
tions with respect to the Guam Shipyard lease: 
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355 
(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 ap-
proximately 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 govern-
ment-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 Sec-
retary of the Navy shall include an evaluation of each of 
the following: 
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(1) The anticipated future military vessel repair 
and workload on Guam in relation to the 2006 Quad-
rennial 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 Mari-
time 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 ten-
der the U.S.S. Frank Cable (AS–40) is decommis-
sioned. 
(5) The estimated reacquisition costs of trans-
ferred 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 avail-
abilities and mid-term availability for attack 
submarines. 
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(B) Dry-docking phased maintenance avail-
abilities for amphibious vessels, including to am-
phibious assault ships, dock landing ships, and 
amphibious transport dock ships. 
(C) Dry-docking phased maintenance avail-
abilities for surface combatants, including cruis-
ers, destroyers, and frigates. 
(7) Commercial opportunities for development to 
expand commercial ship repair and general indus-
trial services, given anti-terrorism force protection re-
quirements at the current facility. 
(8) Estimates from three contractors for the 
maintenance and repair costs associated with exe-
cuting 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 Mili-
tary 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 sub-
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section (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 Ship-
yard 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
OBJEC-
TIVES.—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 Ac-
quisition Regulation, shall award contracts to the Guam 
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Shipyard in amounts equal to the average amount of the 
mandays contracts awarded to the Guam Shipyard for fis-
cal 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 IMPROVE-
MENT PROGRAM. 
(a) PROGRAM FOR UNITED STATES PRIVATE SHIP-
YARDS.—The Secretary of the Navy shall establish a pro-
gram, to be known as the Shipbuilding Industrial Base Im-
provement 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 ship-
building infrastructure; and 
(2) shall provide loan guarantees for qualifying 
shipyards to facilitate the acquisition by such ship-
yards of technologies, processes, and infrastructure to 
improve their productivity and cost effectiveness. 
(b) PURPOSES OF PROGRAM.—The purposes of the pro-
gram established under subsection (a) are— 
(1) to improve the efficiency and cost-effective-
ness of the construction of naval vessels for the United 
States; 
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(2) to enhance the quality of naval vessel con-
struction; 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
FUND-
ING.—An entity requesting a grant under subsection 
(a)(1) to develop new design or production tech-
nologies or processes for naval vessels or to improve 
shipbuilding infrastructure shall submit to the Sec-
retary of the Navy an application that describes the 
proposal of the entity and provides evidence of its ca-
pability to develop one or more of the following: 
(A) Numerically controlled machine tools, 
robots, automated process control equipment, 
computerized flexible manufacturing systems, as-
sociated computer software, and other technology 
designed to improve shipbuilding and related in-
dustrial productivity. 
(B) Novel techniques and processes designed 
to improve shipbuilding quality, productivity, 
and practice on a broad and sustained basis, in-
cluding in such areas as engineering design, 
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quality assurance, concurrent engineering, con-
tinuous process production technology, employee 
skills enhancement, and management of cus-
tomers 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 innova-
tive technologies, processes, and infrastructure to al-
leviate areas of shipyard construction inefficiencies as 
determined through the assessment described in sub-
section (f). 
(d) MATCHING REQUIREMENT FOR GRANTS.— 
(1) FEDERAL FUNDING.—Except as provided in 
paragraph (2), Federal funds from a grant under sub-
section (a)(1) for any purpose shall not exceed 75 per-
cent 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 
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indexed to the consumer price index and modi-
fied each fiscal year after the annual publication 
of the consumer price index. 
(B) REDUCTION
IN
MATCHING
REQUIRE-
MENT.—If the Secretary of the Navy determines 
that a proposed project merits support and can-
not 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 para-
graph (1). 
(e) LOAN GUARANTEES FOR SHIPYARD USE OF DE-
VELOPED TECHNOLOGIES, PROCESSES, AND INFRASTRUC-
TURE.— 
(1) IN GENERAL.—Upon making a determina-
tion 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 con-
struction, the Secretary of the Navy may provide a 
loan guarantee under subsection (a)(2) for a quali-
fying shipyard to facilitate the purchase by such ship-
yard of such technology, process, or infrastructure im-
provement. 
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(2) PAYMENT OF COST OF LOAN GUARANTEE.— 
The cost of a guarantee under this subsection shall be 
paid for with amounts made available in appropria-
tions Acts. 
(3) PERCENTAGE
LIMITATION; TERM.—A loan 
guarantee under this subsection may apply— 
(A) to up to 87.5 percent of the loan prin-
cipal; and 
(B) for a term of up to 30 years. 
(4) 
AUTHORITIES, 
PROCEDURES, 
REQUIRE-
MENTS, AND
RESTRICTIONS.—The Secretary of the 
Navy, subject to the other provisions of this section— 
(A) in implementing this section, may exer-
cise authorities that are similar to the authori-
ties 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 require-
ments for loan guarantees under this section as 
the Secretary determines to be necessary to mini-
mize the cost of such guarantees. 
(5) LIMITATION
ON
TOTAL
AMOUNT
OF
LOAN 
GUARANTEES.—The total amount of loans for which 
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364 
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 con-
tracts. 
(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 author-
ity of the Secretary of the Navy to provide loan guar-
antees under this subsection expires at the close of 
September 30, 2011. 
(f) ASSESSMENTS OF NAVAL VESSEL CONSTRUCTION 
INEFFICIENCIES.— 
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365 
(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 de-
sign and production technologies, processes, and in-
frastructure can be developed to alleviate such ineffi-
ciencies: 
(A) Program design, engineering, and pro-
duction 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 Na-
tional 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 
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366 
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 author-
ized 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, de-
velopment, test, and evaluation for the Navy that are in-
tended to be made available for the National Shipbuilding 
Research Program shall be separately identified and set 
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367 
forth in budget justification materials submitted to Con-
gress 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 construc-
tion, repair, and maintenance of United States naval ves-
sels. 
SEC. 1015. TRANSFER OF OPERATIONAL CONTROL OF CER-
TAIN PATROL COASTAL SHIPS TO COAST 
GUARD. 
Not later than September 30, 2008, the Secretary of 
the Navy shall enter into an agreement with the Com-
mandant of the Coast Guard for the transfer by the Sec-
retary 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: 
‘‘§ 2401b. Limitation on lease of foreign-built vessels 
‘‘(a) LIMITATION.—The Secretary of a military de-
partment may not make a contract for a lease or charter 
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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 deter-
mines 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 chap-
ter 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. 
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369 
SEC. 1017. OVERHAUL, REPAIR, AND MAINTENANCE OF VES-
SELS 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 mainte-
nance 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 per-
formed on the vessel in a shipyard located outside the 
United States during the period covered by the report. 
SEC. 1018. RIDING GANG MEMBER DOCUMENTATION RE-
QUIREMENT. 
(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 docu-
ment issued under chapter 73 of title 46, United States 
Code. 
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(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 equip-
ment (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 Sec-
retary 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.— 
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(1) VESSEL OPERATING UNDER EXISTING CHAR-
TER OR CONTRACT.—This section does not apply with 
respect to a vessel operating under a charter or con-
tract in effect on the date of the enactment of this sec-
tion, 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 regula-
tions shall include a requirement that a riding 
gang member must pass a background check be-
fore performing work under such an exemption. 
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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 FED-
ERAL, STATE, LOCAL, AND FOREIGN LAW EN-
FORCEMENT 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: 
‘‘§ 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 ‘‘sec-
tion 376 of this title,’’. 
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373 
(C) In subsection (f), by deleting the par-
enthetical phrase beginning ‘‘(including train-
ing’’ 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.—Sec-
tion 1004 of the National Defense Authorization Act for Fis-
cal 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 
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374 
inserting after section 383, as added by section 1021, a new 
section 384 consisting of— 
(1) a heading as follows: 
‘‘§ 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), re-
vised 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 para-
graphs (1), (2), and (3) with the following new 
paragraphs: 
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‘‘(1) The transfer of nonlethal protective and 
utility personnel equipment. 
‘‘(2) The transfer of the following nonlethal spe-
cialized 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, acces-
sories, attachments, parts (including ground support 
equipment), firmware, and software and repair 
equipment related to the equipment specified in para-
graph (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 ammu-
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376 
nition for such weapons for counter-narcotics security 
forces.’’. 
(D) In subsection (d), by replacing ‘‘the 
provisions of section 1004 of the National De-
fense 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 fol-
lowing 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 para-
graphs (3) and (4) with the following new para-
graph: 
‘‘(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 
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377 
International Relations of the House of Representa-
tives.’’. 
(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 con-
gressional committees not later than Decem-
ber 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 sub-
section (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.—Sec-
tion 1033 of the National Defense Authorization Act for Fis-
cal Year 1998 (Public Law 105–85; 111 Stat. 1881) is re-
pealed. 
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SEC. 1023. EXTENSION OF AUTHORITY TO SUPPORT UNI-
FIED 
COUNTERDRUG 
AND 
COUNTERTERRORISM CAMPAIGN IN COLOM-
BIA. 
Section 1021 of the Ronald W. Reagan National De-
fense 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 EX-
PENDITURES 
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 sec-
tion 1021 of the National Defense Authorization Act for Fis-
cal Year 2006 (Public Law 109–163; 119 Stat. 3426), is 
further amended by inserting ‘‘and February 15, 2007,’’ 
after ‘‘April 15, 2006,’’. 
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(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 pe-
riod 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-NAR-
COTICS 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 congres-
sional 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 Na-
tional Defense Authorization Act for Fiscal Year 1998 (Pub-
lic 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 
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Development, and the Director of the Drug Enforcement Ad-
ministration. 
(c) MATTERS TO BE INCLUDED.—The report shall in-
clude 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 depart-
ment 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 success-
fully complete its counter-narcotics efforts in Afghani-
stan 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 COM-
MISSION 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— 
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381 
(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 submis-
sion of its report’’. 
SEC. 1032. ENHANCEMENT TO AUTHORITY TO PAY RE-
WARDS FOR ASSISTANCE IN COMBATING TER-
RORISM. 
(a) INCREASE IN DELEGATION LIMITATION.—Para-
graph (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 COM-
BATANT 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 di-
rectly subordinate to that commander,’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘Such a delegation may be made to the com-
mander of a command directly subordinate to the 
commander of a combatant command only with the 
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382 
approval of the Secretary of Defense, the Deputy Sec-
retary of Defense, or an Under Secretary of Defense 
designated by the Secretary.’’. 
SEC. 1033. REPORT ON ASSESSMENT PROCESS OF CHAIR-
MAN OF THE JOINT CHIEFS OF STAFF RELAT-
ING 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 semi-
annual 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 INTER-
AGENCY 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 integra-
tion 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 
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maximum extent practicable, the report shall be unclassi-
fied, 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, includ-
ing recruiting, retention, training, education, 
promotion, awards, employment, deployment, 
and retirement. 
(F) Acquisition authorities. 
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