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mitting or review process. The Secretary may use such
conveyances, with the restrictions set forth in subsection
(b), to establish mitigation banks outside the context of
being a condition imposed by any Federal, State, or local
regulatory body for granting a permit, completion of re-
view, or otherwise granting permission for a proposed mili-
tary action other than establishment of a mitigation bank.
‘‘(e) CONSIDERATION.—In fixing the consideration
for the property or in determining the amount of any re-
duction of the fair market value owed for the release of
the covenant under subsection (c), the Secretary of the
military department shall take into consideration any ben-
efit that has accrued or may accrue to the United States
from the use of such property for the conservation of nat-
ural resources.
‘‘(f) REAL PROPERTY DECLARED SURPLUS AS A RE-
SULT OF A BASE CLOSURE LAW.—The Secretary con-
cerned may not dispose of any real property declared sur-
plus as a result of a base closure law under this section
in a manner inconsistent with the requirements and pref-
erences established under a base closure law.
‘‘(g) DEFINITIONS.—(1) The term ‘States’ as used
in this section includes the District of Columbia, the Com-
monwealth of Puerto Rico, the Commonwealth of the
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Northern Marianas and the territories and possessions of
the United States.
‘‘(2) The term ‘‘base closure law’’ means the Defense
Authorization Amendments and Base Closure and Re-
alignment Act of 1988 (Public Law 100–526), the De-
fense Base Closure and Realignment Act of 1990 (Public
Law 101–510), or similar base closure authority.’’.
(b) AGREEMENTS WITH NONPROFIT CONSERVATION
NATURAL RESOURCE ORGANIZATIONS.—Section 2701(d)
of such title 10 is amended—
(1) in paragraph (1), by inserting ‘‘or nonprofit
conservation organization’’ after ‘‘any Indian tribe’’;
(2) in paragraph (3), by adding at the end the
following sentence: ‘‘The term conservation organiza-
tion as used in this section means non-governmental
nonprofit organizations that exist for the primary
purpose of conserving open space or natural re-
sources.’’.
(c) ACCEPTANCE OF FUNDS TO COVER ADMINISTRA-
TIVE EXPENSES.—Section 2695(b) of such title 10 is
amended by adding at the end the following new para-
graph:
‘‘(4) The conveyance of real property under sec-
tion 2669a of this title.’’.
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(d) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter 159 is amended by insert-
ing after the item relating to section 2669 the following
new item:
‘‘2669a. Conveyance of surplus real property for natural resource conservation
purposes.’’.
SEC. 2804. LEASING OF MILITARY FAMILY HOUSING IN
KOREA.
Section 2828 (e)(3) is amended—
(1) by striking 800 units and inserting 1,175
units; and
(2) by adding at the end the following new sen-
tence: ‘‘Additionally, the Secretary of the Army may
lease not more than 2,400 units of family housing
in Korea subject to a maximum amount of
$35,000.’’.
SEC. 2805. PROGRAM ON REDUCTION IN LONG-TERM FACIL-
ITY MAINTENANCE COSTS.
(a) DEMONSTRATION PROGRAM.—The Secretary of
Defense may conduct a demonstration program to assess
the feasibility and desirability of including facilities main-
tenance requirements in construction contracts for mili-
tary construction projects. The purpose of the demonstra-
tion program is to determine if such requirements facili-
tate reductions in the long-term maintenance costs of the
Military Departments.
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(b) CONTRACTS.—The demonstration program au-
thorized in subsection (a) is limited to 12 contracts en-
tered into on or after the date of enactment of this Act.
(c) EFFECTIVE PERIOD OF MAINTENANCE REQUIRE-
MENTS.—A maintenance requirement that is included in
a construction contract under the authority of this section
shall not exceed five years.
(d) EXPIRATION.—The authority under subsection
(a) to include maintenance requirements in construction
contracts under the demonstration program shall expire
on September 30, 2006.
(e) FUNDING.—Amounts authorized to be appro-
priated for the Secretary of Defense for a fiscal year for
military construction shall be available for the demonstra-
tion program under this section in such fiscal year.
SEC. 2806. BOUNDARY CHANNEL DRIVE SITE LAND ACQUI-
SITION, ARLINGTON, VIRGINIA.
(a) ACQUISITION AUTHORIZED.—Using amounts ap-
propriated pursuant to the authorization of appropriations
in section 2401, the Secretary of Defense may acquire all
right, title, and interest to a parcel of real property, in-
cluding any improvements thereon, consisting of approxi-
mately 7.2 acres known as the Boundary Channel Drive
Site in Arlington County, Virginia. The site is located
southeast of Interstate 395 at the end of Boundary Chan-
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nel Drive and was most recently occupied by the Twin
Bridges Marriott.
(b) DESCRIPTION OF PROPERTY.—The exact acreage
and legal description of the real property to be acquired
under subsection (a) shall be determined by a survey satis-
factory to the Secretary. Upon acquisition, this property
shall be included in the Pentagon Reservation as defined
in section 2674(f) of title 10, United States Code.
(c) TERMS AND CONDITIONS.—The Secretary may
require such terms and conditions in connection with the
acquisition under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.
Subtitle C—Other Matters
SEC. 2810. ENVIRONMENTAL RESTORATION PROJECT.
(a) IN GENERAL.—Section 2810 of title 10, United
States Code, is amended to read as follows:
‘‘§ 2810. Environmental restoration projects
‘‘(a) ENVIRONMENTAL RESTORATION PROJECTS.—
Subject to subsection (c), the Secretary concerned may
carry out an environmental restoration project if the Sec-
retary concerned determines that the project is necessary
to carry out a response action under chapter 160 of this
title or under the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9601 et seq.).
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‘‘(b) LIMITATION OF FUND SOURCE.—Funds author-
ized for deposit in an account established under subsection
(a) of section 2703 of this title shall be the only source
of funds to conduct an environmental restoration project
under this section.
‘‘(c) DEFINITIONS.—In this section—
‘‘(1) the term ‘‘response action’’ has the mean-
ing given that term in section 101 of the Com-
prehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601);
‘‘(2) 
the 
term 
‘‘environmental 
restoration
project’’ includes construction, development, conver-
sion, or extension of a structure or installation of
equipment in direct support of a response action.
When included in an environmental restoration project,
such construction, development, conversion, extension, or
installation shall not be considered as military construc-
tion as that term is defined in section 2801 of this title.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 169 is amended by amending
the item related to section 2810 to read as follows:
‘‘2810. Environmental restoration project.’’.
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