485 
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 unaccom-
panied 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, Con-
struction, 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 pur-
pose does not relieve the Secretary concerned from the duty 
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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 SUB-
MIT.—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 installa-
tions’’; 
(3) by striking ‘‘(f)’’ and all that follows through 
‘‘the following:’’ and inserting the following: 
‘‘(f) ANNUAL REPORTS; EFFECT OF FAILURE TO SUB-
MIT.—(1) Not later than March 15 of each year, the Sec-
retary of Defense shall submit to Congress a report detailing 
the following:’’; and 
(4) by adding at the end the following new para-
graph: 
‘‘(2) If the report for a year is not submitted to Con-
gress by the date specified in paragraph (1), the Secretary 
concerned may not enter into an agreement under sub-
section (a) after that date for the conveyance of real prop-
erty until the date on which the report is finally sub-
mitted.’’. 
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487 
(f) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such sec-
tion is amended to read as follows: 
‘‘§ 2869. Conveyance of property at military installa-
tions 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 con-
struction 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 
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488 
property, or an interest in real property, under para-
graph (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 fol-
lowing 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 sec-
tion.’’. 
SEC. 2807. PILOT PROJECTS FOR ACQUISITION OR CON-
STRUCTION 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 in-
serting ‘‘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.—Sub-
section (d)(2) of such section is amended by striking ‘‘90 
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days prior notification’’ and inserting ‘‘45 days prior noti-
fication, 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 in-
serting 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 begin-
ning 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 insert-
ing ‘‘identified under subparagraph (A)’’; and 
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(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 sub-
paragraphs: 
‘‘(C) identifying each family housing unit in ex-
cess 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 con-
verted (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 sub-
paragraph (A) or new construction costs are antici-
pated 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 stand-
ards.’’. 
(b) CONFORMING AMENDMENT.—The heading of such 
subsection is amended by striking ‘‘COST OF’’. 
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491 
SEC. 2809. REPEAL OF TEMPORARY MINOR MILITARY CON-
STRUCTION PROGRAM. 
Section 2810 of the Military Construction Authoriza-
tion 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 MAIN-
TENANCE 
FUNDS 
FOR 
CONSTRUCTION 
PROJECTS OUTSIDE THE UNITED STATES. 
Section 2808(a) of the Military Construction Author-
ization 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 Authoriza-
tion 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)— 
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492 
(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 sub-
division thereof, or to a citizen, association, 
partnership, or corporation of a State, Common-
wealth, or possession,’’ and inserting ‘‘the Sec-
retary’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 ad-
visable’’. 
(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 ‘‘TERMI-
NATION.—’’ after ‘‘(c)’’; 
(4) in subsection (d), by inserting ‘‘NOTICE TO 
DEPARTMENT OF THE INTERIOR.—’’ after ‘‘(d)’’; and 
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(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 EASE-
MENTS IN CONNECTION WITH LAND CONVEY-
ANCES. 
(a) RESTRICTIVE EASEMENTS.—Chapter 159 of title 
10, United States Code, is amended by inserting after sec-
tion 2668 the following new section: 
‘‘§ 2668a. Restrictive easements: granting easement in 
connection with land conveyances 
‘‘(a) AUTHORITY TO INCLUDE RESTRICTIVE EASE-
MENT.—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 fu-
ture uses of the conveyed real property for a conservation 
purpose consistent with section 170(h)(4)(A)(iv) of the In-
ternal 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 gov-
ernment or a qualified organization, as that term is used 
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494 
in section 170(h) of the Internal Revenue Code of 1986 (26 
U.S.C. 170(h)). 
‘‘(c) LIMITATION ON USE OF CONSERVATION EASE-
MENTS.—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 govern-
ment whose jurisdiction encompasses the property re-
garding 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 ease-
ment 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 convey-
ances.’’. 
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495 
SEC. 2823. MAXIMUM TERM OF LEASES FOR STRUCTURES 
AND REAL PROPERTY RELATING TO STRUC-
TURES 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 TRANS-
FER 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 redes-
ignated, the following new subsection: 
‘‘(a) TRANSFERS BETWEEN ARMED FORCES.—If ei-
ther of the Secretaries concerned requests it and the other 
approves, real property may be transferred, without com-
pensation, 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 PRO-
GRAM.—The text of section 2693 of such title is amended— 
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496 
(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), respec-
tively, and in such subparagraph (B), as so redesig-
nated, by striking ‘‘this section’’ and inserting ‘‘para-
graph (1)’’; 
(3) by striking ‘‘(a) Except as provided in sub-
section (b)’’ and inserting ‘‘(f) DEPARTMENT OF JUS-
TICE CORRECTIONAL OPTIONS PROGRAM.—(1) Except 
as provided in paragraph (2)’’; 
(4) by striking ‘‘(b) The provisions of this sec-
tion’’ 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— 
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(A) in subsection (b), as redesignated by 
subsection (a)(1), by striking ‘‘SCREENING RE-
QUIREMENT.—’’ and inserting ‘‘SCREENING RE-
QUIREMENTS 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 ‘‘sub-
section (b)(1)’’ and inserting ‘‘subsection (c)(1)’’; 
and 
(D) in subsection (e), by striking ‘‘this sec-
tion’’ 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: 
‘‘§ 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 fol-
lowing 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 fol-
lows: 
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498 
‘‘§ 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 re-
quirements for other Federal use.’’. 
SEC. 2825. CONGRESSIONAL NOTICE REQUIREMENTS IN AD-
VANCE OF ACQUISITION OF LAND BY CON-
DEMNATION FOR MILITARY PURPOSES. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that the Secretary of Defense, when acquiring land for mili-
tary purposes, should make every effort to do so by means 
of purchases from willing sellers and should employ con-
demnation, eminent domain, or seizure procedures only as 
a measure of last resort in cases of compelling national se-
curity 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, includ-
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499 
ing land for temporary use, under this subsection, the Sec-
retary of Defense or the Secretary of the military depart-
ment concerned shall submit to the congressional defense 
committees a report that includes certification that the Sec-
retary has made every effort to acquire the property without 
use of such procedures, explains the compelling require-
ments 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 MILI-
TARY INSTALLATIONS APPROVED FOR CLO-
SURE 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 
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be closed or realigned under a base closure law shall be de-
posited— 
‘‘(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 ap-
proved 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 ap-
proved for closure or realignment after January 1, 
2005.’’. 
Subtitle D—Land Conveyances 
SEC. 2841. LAND CONVEYANCE, NAVAL AIR STATION, BAR-
BERS POINT, HAWAII. 
(a) CONVEYANCE OF PROPERTY.—Not later than Sep-
tember 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 improve-
ments thereon, consisting of approximately 499 acres lo-
cated at the former Naval Air Station, Barbers Point, 
Oahu, Hawaii, that are subject to the Ford Island Master 
Development Agreement developed pursuant to section 
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501 
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 convey-
ance and lease authorities provided to the Secretary by sub-
sections (b) and (c) of section 2814 of title 10, United States 
Code, for the purpose of developing or facilitating the devel-
opment 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 Sec-
retary 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 AUTHOR-
ITY, PERQUIMANS COUNTY, NORTH CARO-
LINA. 
Section 2846 of the Military Construction Authoriza-
tion 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) 
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