H. R. 6523—272 
(B) the percentage of the total cost of establishing 
and operating the center the funds described in subpara-
graph (A) will cover. 
SEC. 1304. PLAN FOR NONPROLIFERATION, PROLIFERATION PREVEN-
TION, AND THREAT REDUCTION ACTIVITIES WITH THE 
PEOPLE’S REPUBLIC OF CHINA. 
(a) IN GENERAL.—Not later than April 1, 2011, the Secretary 
of Defense and the Secretary of Energy shall jointly submit to 
the congressional defense committees a plan to carry out activities 
of the Department of Defense Cooperative Threat Reduction Pro-
gram and the Department of Energy Defense Nuclear Nonprolifera-
tion program relating to nonproliferation, proliferation prevention, 
and threat reduction with the Government of the People’s Republic 
of China during fiscal years 2011 through 2016. 
(b) ELEMENTS.—The plan required by subsection (a) shall 
include the following: 
(1) A description of the activities to be carried out under 
the plan. 
(2) A description of milestones and goals for such activities. 
(3) An estimate of the annual cost of such activities. 
(4) An estimate of the amount of the total cost of such 
activities to be provided by the Government of the People’s 
Republic of China. 
TITLE XIV—OTHER AUTHORIZATIONS 
Subtitle A—Military Programs 
Sec. 1401. Working capital funds. 
Sec. 1402. Study on working capital fund cash balances. 
Sec. 1403. Modification of certain working capital fund requirements. 
Sec. 1404. Reduction of unobligated balances within the Pentagon Reservation 
Maintenance Revolving Fund. 
Sec. 1405. National Defense Sealift Fund. 
Sec. 1406. Chemical Agents and Munitions Destruction, Defense. 
Sec. 1407. Drug Interdiction and Counter-Drug Activities, Defense-wide. 
Sec. 1408. Defense Inspector General. 
Sec. 1409. Defense Health Program. 
Subtitle B—National Defense Stockpile 
Sec. 1411. Authorized uses of National Defense Stockpile funds. 
Sec. 1412. Revision to required receipt objectives for previously authorized dis-
posals from the National Defense Stockpile. 
Subtitle C—Chemical Demilitarization Matters 
Sec. 1421. Consolidation and reorganization of statutory authority for destruction 
of United States stockpile of lethal chemical agents and munitions. 
Subtitle D—Other Matters 
Sec. 1431. Authorization of appropriations for Armed Forces Retirement Home. 
Sec. 1432. Authority for transfer of funds to Joint Department of Defense–Depart-
ment of Veterans Affairs Medical Facility Demonstration Fund for Cap-
tain James A. Lovell Health Care Center, Illinois. 
Subtitle A—Military Programs 
SEC. 1401. WORKING CAPITAL FUNDS. 
Funds are hereby authorized to be appropriated for fiscal year 
2011 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:
H. R. 6523—273 
(1) For the Defense Working Capital Funds, $160,965,000. 
(2) For the Defense Working Capital Fund, Defense Com-
missary, $1,273,571,000. 
SEC. 1402. STUDY ON WORKING CAPITAL FUND CASH BALANCES. 
(a) STUDY REQUIRED.—Not later than 30 days after the date 
of the enactment of this Act, the Secretary of Defense shall seek 
to enter into a contract with a federally funded research and 
development center with appropriate expertise in revolving fund 
financial management to carry out a study to determine a sufficient 
operational level of cash that each revolving fund of the Department 
of Defense should maintain in order to sustain a single rate or 
price throughout the fiscal year. 
(b) CONTENTS OF STUDY.—In carrying out a study pursuant 
to a contract entered into under subsection (a), the federally funded 
research and development center shall— 
(1) qualitatively analyze the operational requirements and 
inherent risks associated with maintaining a specific level of 
cash within each revolving fund of the Department; 
(2) for each such revolving fund, take into consideration 
any effects on appropriation accounts that have occurred due 
to changes made in the rates charged by the fund during 
a fiscal year; 
(3) take into consideration direct input from the Secretary 
of Defense and officials of each of the military departments 
with leadership responsibility for financial management; 
(4) examine the guidance provided and regulations pre-
scribed by the Secretary of Defense and the Secretary of each 
of the military departments, as in effect on the date of the 
enactment of this Act, including such guidance with respect 
to programming and budgeting and the annual budget displays 
provided to Congress; 
(5) examine the effects on appropriations accounts that 
have occurred due to congressional adjustments relating to 
excess cash balances in revolving funds; 
(6) identify best business practices from the private sector 
relating to sufficient cash balance reserves; 
(7) examine any relevant applicable laws, including the 
relevant body of work performed by the Government Account-
ability Office; and 
(8) address— 
(A) instances where the fiscal policy of the Department 
of Defense directly follows the law, as in effect on the 
date of the enactment of this Act, and instances where 
such policy is more restrictive with respect to the fiscal 
management of revolving funds than such law requires; 
(B) instances where current Department fiscal policy 
restricts the capability of a revolving fund to achieve the 
most economical and efficient organization and operation 
of activities; 
(C) fiscal policy adjustments required to comply with 
recommendations provided in the study, including proposed 
adjustments to— 
(i) the Department of Defense Financial Manage-
ment Regulation; 
(ii) published service regulations and instructions; 
and
H. R. 6523—274 
(iii) major command fiscal guidance; and 
(D) such other matters as determined relevant by the 
center carrying out the study. 
(c) AVAILABILITY OF INFORMATION.—The Secretary of Defense 
and the Secretary of each of the military departments shall make 
available to a federally funded research and development center 
carrying out a study pursuant to a contract entered into under 
subsection (a) all necessary and relevant information to allow the 
center to conduct the study in a quantitative and analytical manner. 
(d) REPORT.—Any contract entered into under subsection (a) 
shall provide that not later than 9 months after the date on which 
the Secretary of Defense enters into the contract, the chief executive 
officer of the entity that carries out the study pursuant to the 
contract shall submit to the Committees on Armed Services of 
the Senate and House of Representatives and the Secretary of 
Defense a final report on the study. The report shall include each 
of the following: 
(1) A description of the revolving fund environment, as 
of the date of the conclusion of the study, and the anticipated 
future environment, together with the quantitative data used 
in conducting the assessment of such environments under the 
study. 
(2) Recommended fiscal policy adjustments to support the 
initiatives identified in the study, including adjustments to— 
(A) the Department of Defense Financial Management 
Regulation; 
(B) published service regulations and instructions; and 
(C) major command fiscal guidance. 
(3) Recommendations with respect to any changes to any 
applicable law that would be appropriate to support the initia-
tives identified in the study. 
(e) SUBMITTAL OF COMMENTS.—Not later than 90 days after 
the date of the submittal of the report under subsection (d), the 
Secretary of Defense and the Secretaries of each of the military 
departments shall submit to the Committees on Armed Services 
of the Senate and House of Representatives comments on the 
findings and recommendations contained in the report. 
SEC. 1403. MODIFICATION OF CERTAIN WORKING CAPITAL FUND 
REQUIREMENTS. 
Section 2208 of title 10, United States Code, is amended— 
(1) in subsection (c)(1), by inserting before the semicolon 
the following: ‘‘, including the cost of the procurement and 
qualification of technology-enhanced maintenance capabilities 
that improve either reliability, maintainability, sustainability, 
or supportability and have, at a minimum, been demonstrated 
to be functional in an actual system application or operational 
environment’’; and 
(2) in subsection (k)(2), by striking ‘‘$100,000’’ and inserting 
‘‘$250,000’’. 
SEC. 1404. REDUCTION OF UNOBLIGATED BALANCES WITHIN THE PEN-
TAGON RESERVATION MAINTENANCE REVOLVING FUND. 
Not later than 60 days after the date of the enactment of 
this Act, the Secretary of Defense shall transfer $53,000,000 from 
the unobligated balances of the Pentagon Reservation Maintenance 
Revolving Fund established under section 2674(e) of title 10, United
H. R. 6523—275 
States Code, to the Miscellaneous Receipts Fund of the United 
States Treasury. 
SEC. 1405. NATIONAL DEFENSE SEALIFT FUND. 
Funds are hereby authorized to be appropriated for the fiscal 
year 2011 for the National Defense Sealift Fund in the amount 
of $934,866,000. 
SEC. 1406. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, 
DEFENSE. 
(a) AUTHORIZATION
OF APPROPRIATIONS.—Funds are hereby 
authorized to be appropriated for the Department of Defense for 
fiscal year 2011 for expenses, not otherwise provided for, for Chem-
ical Agents and Munitions Destruction, Defense, in the amount 
of $1,467,307,000, of which— 
(1) $1,067,364,000 is for Operation and Maintenance; 
(2) $392,811,000 is for Research, Development, Test, and 
Evaluation; and 
(3) $7,132,000 is for Procurement. 
(b) USE.—Amounts authorized to be appropriated under sub-
section (a) are authorized for— 
(1) the destruction of lethal chemical agents and munitions 
in accordance with section 1412 of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521), as amended by section 
1421 of this Act; and 
(2) the destruction of chemical warfare materiel of the 
United States that is not covered by section 1412 of such 
Act. 
SEC. 1407. DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, 
DEFENSE-WIDE. 
Funds are hereby authorized to be appropriated for the Depart-
ment of Defense for fiscal year 2011 for expenses, not otherwise 
provided for, for Drug Interdiction and Counter-Drug Activities, 
Defense-wide, in the amount of $1,160,851,000. 
SEC. 1408. DEFENSE INSPECTOR GENERAL. 
Funds are hereby authorized to be appropriated for the Depart-
ment of Defense for fiscal year 2011 for expenses, not otherwise 
provided for, for the Office of the Inspector General of the Depart-
ment of Defense, in the amount of $317,154,000. 
SEC. 1409. DEFENSE HEALTH PROGRAM. 
Funds are hereby authorized to be appropriated for the Depart-
ment of Defense for fiscal year 2011 for expenses, not otherwise 
provided for, for the Defense Health Program, in the amount of 
$30,959,611,000. 
Subtitle B—National Defense Stockpile 
SEC. 1411. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE 
FUNDS. 
(a) OBLIGATION OF STOCKPILE FUNDS.—During fiscal year 2011, 
the National Defense Stockpile Manager may obligate up to 
$41,181,000 of the funds in the National Defense Stockpile Trans-
action Fund established under subsection (a) of section 9 of the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h)
H. R. 6523—276 
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. 1412. REVISION TO REQUIRED RECEIPT OBJECTIVES FOR PRE-
VIOUSLY AUTHORIZED DISPOSALS FROM THE NATIONAL 
DEFENSE STOCKPILE. 
Section 3402(b)(5) of the National Defense Authorization Act 
for Fiscal Year 2000 (50 U.S.C. 98d note), as most recently amended 
by section 1412(a) of the National Defense Authorization Act for 
Fiscal Year 2008 (Public Law 110–181; 122 Stat. 418), is amended 
by striking ‘‘$710,000,000’’ and inserting ‘‘$730,000,000’’. 
Subtitle C—Chemical Demilitarization 
Matters 
SEC. 1421. CONSOLIDATION AND REORGANIZATION OF STATUTORY 
AUTHORITY FOR DESTRUCTION OF UNITED STATES 
STOCKPILE OF LETHAL CHEMICAL AGENTS AND MUNI-
TIONS. 
(a) RESTATEMENT OF STATUTORY AUTHORITY WITH CONSOLIDA-
TION AND REORGANIZATION.—Section 1412 of the National Defense 
Authorization Act, 1986 (50 U.S.C. 1521) is amended to read as 
follows: 
‘‘SEC. 1412. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEM-
ICAL AGENTS AND MUNITIONS. 
‘‘(a) IN GENERAL.—The Secretary of Defense shall, in accordance 
with the provisions of this section, carry out the destruction of 
the United States’ stockpile of lethal chemical agents and munitions 
that exists on November 8, 1985. 
‘‘(b) DATE FOR COMPLETION.—(1) The destruction of such stock-
pile shall be completed by the stockpile elimination deadline. 
‘‘(2) If the Secretary of Defense determines at any time that 
there will be a delay in meeting the requirement in paragraph 
(1) for the completion of the destruction of chemical weapons by 
the stockpile elimination deadline, the Secretary shall immediately 
notify the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives 
of that projected delay. 
‘‘(3) For purposes of this section, the term ‘stockpile elimination 
deadline’ means the deadline established by the Chemical Weapons 
Convention, but not later than December 31, 2017. 
‘‘(c) INITIATION OF DEMILITARIZATION OPERATIONS.—The Sec-
retary of Defense may not initiate destruction of the chemical
H. R. 6523—277 
munitions stockpile stored at a site until the following support 
measures are in place: 
‘‘(1) Support measures that are required by Department 
of Defense and Army chemical surety and security program 
regulations. 
‘‘(2) Support measures that are required by the general 
and site chemical munitions demilitarization plans specific to 
that installation. 
‘‘(3) Support measures that are required by the permits 
required by the Solid Waste Disposal Act (42 U.S.C. 6901 
et seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.) for 
chemical munitions demilitarization operations at that installa-
tion, as approved by the appropriate State regulatory agencies. 
‘‘(d) ENVIRONMENTAL PROTECTION AND USE OF FACILITIES.— 
(1) In carrying out the requirement of subsection (a), the Secretary 
of Defense shall provide for— 
‘‘(A) maximum protection for the environment, the general 
public, and the personnel who are involved in the destruction 
of the lethal chemical agents and munitions referred to in 
subsection (a), including but not limited to the use of tech-
nologies and procedures that will minimize risk to the public 
at each site; and 
‘‘(B) adequate and safe facilities designed solely for the 
destruction of lethal chemical agents and munitions. 
‘‘(2) Facilities constructed to carry out this section shall, when 
no longer needed for the purposes for which they were constructed, 
be disposed of in accordance with applicable laws and regulations 
and mutual agreements between the Secretary of the Army and 
the Governor of the State in which the facility is located. 
‘‘(3)(A) Facilities constructed to carry out this section may not 
be used for a purpose other than the destruction of the stockpile 
of lethal chemical agents and munitions that exists on November 
8, 1985. 
‘‘(B) The prohibition in subparagraph (A) shall not apply with 
respect to items designated by the Secretary of Defense as lethal 
chemical agents, munitions, or related materials after November 
8, 1985, if the State in which a destruction facility is located 
issues the appropriate permit or permits for the destruction of 
such items at the facility. 
‘‘(e) GRANTS AND COOPERATIVE AGREEMENTS.—(1)(A) In order 
to carry out subsection (d)(1)(A), the Secretary of Defense may 
make grants to State and local governments and to tribal organiza-
tions (either directly or through the Federal Emergency Manage-
ment Agency) to assist those governments and tribal organizations 
in carrying out functions relating to emergency preparedness and 
response in connection with the disposal of the lethal chemical 
agents and munitions referred to in subsection (a). Funds available 
to the Department of Defense for the purpose of carrying out this 
section may be used for such grants. 
‘‘(B) Additionally, the Secretary may provide funds through 
cooperative agreements with State and local governments, and with 
tribal organizations, for the purpose of assisting them in processing, 
approving, and overseeing permits and licenses necessary for the 
construction and operation of facilities to carry out this section. 
The Secretary shall ensure that funds provided through such a 
cooperative agreement are used only for the purpose set forth 
in the preceding sentence.
H. R. 6523—278 
‘‘(C) In this paragraph, the term ‘tribal organization’ has the 
meaning given that term in section 4(l) of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 450b(l)). 
‘‘(2)(A) In coordination with the Secretary of the Army and 
in accordance with agreements between the Secretary of the Army 
and the Administrator of the Federal Emergency Management 
Agency, the Administrator shall carry out a program to provide 
assistance to State and local governments in developing capabilities 
to respond to emergencies involving risks to the public health 
or safety within their jurisdictions that are identified by the Sec-
retary as being risks resulting from— 
‘‘(i) the storage of lethal chemical agents and munitions 
referred to in subsection (a) at military installations in the 
continental United States; or 
‘‘(ii) the destruction of such agents and munitions at facili-
ties referred to in subsection (d)(1)(B). 
‘‘(B) Assistance may be provided under this paragraph for 
capabilities to respond to emergencies involving an installation 
or facility as described in subparagraph (A) until the earlier of 
the following: 
‘‘(i) The date of the completion of all grants and cooperative 
agreements with respect to the installation or facility for pur-
poses of this paragraph between the Federal Emergency 
Management Agency and the State and local governments con-
cerned. 
‘‘(ii) The date that is 180 days after the date of the comple-
tion of the destruction of lethal chemical agents and munitions 
at the installation or facility. 
‘‘(C) Not later than December 15 of each year, the Administrator 
shall transmit a report to Congress on the activities carried out 
under this paragraph during the fiscal year preceding the fiscal 
year in which the report is submitted. 
‘‘(f) REQUIREMENT FOR STRATEGIC PLAN.—(1) The Under Sec-
retary of Defense for Acquisition, Technology, and Logistics and 
the Secretary of the Army shall jointly prepare, and from time 
to time shall update as appropriate, a strategic plan for future 
activities for destruction of the United States’ stockpile of lethal 
chemical agents and munitions. 
‘‘(2) The plan shall include, at a minimum, the following consid-
erations: 
‘‘(A) Realistic budgeting for stockpile destruction and 
related support programs. 
‘‘(B) Contingency planning for foreseeable or anticipated 
problems. 
‘‘(C) A management approach and associated actions that 
address compliance with the obligations of the United States 
under the Chemical Weapons Convention and that take full 
advantage of opportunities to accelerate destruction of the 
stockpile. 
‘‘(3) The Secretary of Defense shall each year submit to the 
Committee on the Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives the strategic 
plan as most recently prepared and updated under paragraph (1). 
Such submission shall be made each year at the time of the submis-
sion to the Congress that year of the President’s budget for the 
next fiscal year.
H. R. 6523—279 
‘‘(g) MANAGEMENT ORGANIZATION.—(1) In carrying out this sec-
tion, the Secretary of Defense shall provide for a management 
organization within the Department of the Army. The Secretary 
of the Army shall be responsible for management of the destruction 
of agents and munitions at all sites except Blue Grass Army Depot, 
Kentucky, and Pueblo Chemical Depot, Colorado 
‘‘(2) The program manager for the Assembled Chemical 
Weapons Alternative Program shall be responsible for management 
of the construction, operation, and closure, and any contracting 
relating thereto, of chemical demilitarization activities at Blue 
Grass Army Depot, Kentucky, and Pueblo Army Depot, Colorado, 
including management of the pilot-scale facility phase of the alter-
native technology selected for the destruction of lethal chemical 
munitions. In performing such management, the program manager 
shall act independently of the Army program manager for Chemical 
Demilitarization and shall report to the Under Secretary of Defense 
for Acquisition, Technology, and Logistics 
‘‘(3) The Secretary of Defense shall designate a general officer 
or civilian equivalent as the director of the management organiza-
tion established under paragraph (1). Such officer shall have— 
‘‘(A) experience in the acquisition, storage, and destruction 
of chemical agents and munitions; and 
‘‘(B) outstanding qualifications regarding safety in handling 
chemical agents and munitions. 
‘‘(h) IDENTIFICATION
OF FUNDS.—(1) Funds for carrying out 
this section, including funds for military construction projects nec-
essary to carry out this section, shall be set forth in the budget 
of the Department of Defense for any fiscal year as a separate 
account. Such funds shall not be included in the budget accounts 
for any military department. 
‘‘(2) Amounts appropriated to the Secretary of Defense for the 
purpose of carrying out subsection (e) shall be promptly made 
available to the Administrator of the Federal Emergency Manage-
ment Agency. 
‘‘(i) ANNUAL REPORTS.—(1) Except as provided by paragraph 
(3), the Secretary of Defense shall transmit, by December 15 each 
year, a report to Congress on the activities carried out under this 
section during the fiscal year ending on September 30 of the cal-
endar year in which the report is to be made. 
‘‘(2) Each annual report shall include the following: 
‘‘(A) A site-by-site description of the construction, equip-
ment, operation, and dismantling of facilities (during the fiscal 
year for which the report is made) used to carry out the destruc-
tion of agents and munitions under this section, including any 
accidents or other unplanned occurrences associated with such 
construction and operation. 
‘‘(B) A site-by-site description of actions taken to assist 
State and local governments (either directly or through the 
Federal Emergency Management Agency) in carrying out func-
tions relating to emergency preparedness and response in 
accordance with subsection (e). 
‘‘(C) An accounting of all funds expended (during such 
fiscal year) for activities carried out under this section, with 
a separate accounting for amounts expended for— 
‘‘(i) the construction of and equipment for facilities 
used for the destruction of agents and munitions; 
‘‘(ii) the operation of such facilities;
H. R. 6523—280 
‘‘(iii) the dismantling or other closure of such facilities; 
‘‘(iv) research and development; 
‘‘(v) program management; 
‘‘(vi) travel and associated travel costs for Citizens’ 
Advisory Commissioners under subsection (m)(7); and 
‘‘(vii) grants to State and local governments to assist 
those governments in carrying out functions relating to 
emergency preparedness and response in accordance with 
subsection (e). 
‘‘(D) An assessment of the safety status and the integrity 
of the stockpile of lethal chemical agents and munitions subject 
to this section, including— 
‘‘(i) an estimate on how much longer that stockpile 
can continue to be stored safely; 
‘‘(ii) a site-by-site assessment of the safety of those 
agents and munitions; and 
‘‘(iii) a description of the steps taken (to the date of 
the report) to monitor the safety status of the stockpile 
and to mitigate any further deterioration of that status. 
‘‘(3) The Secretary shall transmit the final report under para-
graph (1) not later than 120 days following the completion of activi-
ties under this section. 
‘‘(j) SEMIANNUAL REPORTS.—(1) Not later than March 1 and 
September 1 each year until the year in which the United States 
completes the destruction of its entire stockpile of chemical weapons 
under the terms of the Chemical Weapons Convention, the Secretary 
of Defense shall submit to the members and committees of Congress 
referred to in paragraph (3) a report on the implementation by 
the United States of its chemical weapons destruction obligations 
under the Chemical Weapons Convention. 
‘‘(2) Each report under paragraph (1) shall include the following: 
‘‘(A) The anticipated schedule at the time of such report 
for the completion of destruction of chemical agents, munitions, 
and materiel at each chemical weapons demilitarization facility 
in the United States. 
‘‘(B) A description of the options and alternatives for accel-
erating the completion of chemical weapons destruction at each 
such facility, particularly in time to meet the stockpile elimi-
nation deadline. 
‘‘(C) A description of the funding required to achieve each 
of the options for destruction described under subparagraph 
(B), and a detailed life-cycle cost estimate for each of the 
affected facilities included in each such funding profile. 
‘‘(D) A description of all actions being taken by the United 
States to accelerate the destruction of its entire stockpile of 
chemical weapons, agents, and materiel in order to meet the 
current stockpile elimination deadline under the Chemical 
Weapons Convention of April 29, 2012, or as soon thereafter 
as possible. 
‘‘(3) The members and committees of Congress referred to in 
this paragraph are— 
‘‘(A) the majority leader and the minority leader of the 
Senate and the Committee on Armed Services and the Com-
mittee on Appropriations of the Senate; and