338 
Under Secretary of the Navy and Marine Corps, the 
Assistant Secretaries of the Navy and Marine Corps, 
and the General Counsel of the Department of the 
Navy and Marine Corps, respectively. 
(c) CONFORMING AMENDMENTS TO TITLE 10, UNITED 
STATES CODE.— 
(1) DEFINITION OF ‘‘MILITARY DEPARTMENT’’.— 
Paragraph (8) of section 101(a) of title 10, United 
States Code, is amended to read as follows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the Navy 
and Marine Corps, and the Department of the Air 
Force.’’. 
(2) ORGANIZATION OF DEPARTMENT.—The text 
of section 5011 of such title is amended to read as fol-
lows: ‘‘The Department of the Navy and Marine 
Corps is separately organized under the Secretary of 
the Navy and Marine Corps.’’. 
(3) 
POSITION
OF
SECRETARY.—Section 
5013(a)(1) of such title is amended by striking ‘‘There 
is a Secretary of the Navy’’ and inserting ‘‘There is 
a Secretary of the Navy and Marine Corps’’. 
(4) CHAPTER HEADINGS.— 
(A) The heading of chapter 503 of such title 
is amended to read as follows:
339 
‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(B) The heading of chapter 507 of such title 
is amended to read as follows: 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(5) OTHER AMENDMENTS.— 
(A) Title 10, United States Code, is amend-
ed by striking ‘‘Department of the Navy’’ and 
‘‘Secretary of the Navy’’ each place they appear 
other than as specified in paragraphs (1), (2), 
(3), and (4) (including in section headings, sub-
section captions, tables of chapters, and tables of 
sections) and inserting ‘‘Department of the Navy 
and Marine Corps’’ and ‘‘Secretary of the Navy 
and Marine Corps’’, respectively, in each case 
with the matter inserted to be in the same type-
face and typestyle as the matter stricken. 
(B)(i) Sections 5013(f), 5014(b)(2), 5016(a), 
5017(2), 5032(a), and 5042(a) of such title are 
amended by striking ‘‘Assistant Secretaries of the 
Navy’’ and inserting ‘‘Assistant Secretaries of 
the Navy and Marine Corps’’.
340 
(ii) The heading of section 5016 of such 
title, and the item relating to such section in the 
table of sections at the beginning of chapter 503 
of such title, are each amended by inserting ‘‘and 
Marine Corps’’ after ‘‘of the Navy’’, with the 
matter inserted in each case to be in the same 
typeface and typestyle as the matter amended. 
(d) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘Department 
of the Navy’’ and ‘‘Secretary of the Navy’’ each place they 
appear and inserting ‘‘Department of the Navy and Marine 
Corps’’ and ‘‘Secretary of the Navy and Marine Corps’’, 
respectively. 
(e) OTHER REFERENCES.—Any reference in any law 
other than in title 10 or title 37, United States Code, or 
in any regulation, document, record, or other paper of the 
United States, to the Department of the Navy shall be con-
sidered to be a reference to the Department of the Navy and 
Marine Corps. Any such reference to an office specified in 
subsection (b)(2) shall be considered to be a reference to that 
office as redesignated by that subsection. 
(f) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first day 
of the first month beginning more than 60 days after the 
date of the enactment of this Act.
341 
Subtitle B—Space Activities 
SEC. 911. SPACE SITUATIONAL AWARENESS STRATEGY. 
(a) FINDINGS.—The Congress finds that— 
(1) the Department of Defense has the responsi-
bility, within the executive branch, for developing the 
strategy and the systems of the United States for en-
suring freedom to operate United States space assets 
affecting national security; and 
(2) the foundation of any credible strategy for 
ensuring freedom to operate United States space as-
sets is a comprehensive system for space situational 
awareness. 
(b) SPACE SITUATIONAL AWARENESS STRATEGY.— 
(1) REQUIREMENT.—The Secretary of Defense 
shall develop a strategy, to be known as the ‘‘Space 
Situational Awareness Strategy’’, for ensuring free-
dom to operate United States space assets affecting 
national security. The Secretary shall submit that 
strategy to Congress not later than April 15, 2006. 
The Secretary shall submit to Congress an updated, 
current version of the Space Situational Awareness 
Strategy not later than April 15 of every even-num-
bered year thereafter.
342 
(2) TIME
PERIOD.—The Space Situational 
Awareness Strategy shall cover the 20-year period 
from 2006 through 2025. 
(3) MATTERS TO BE INCLUDED.—The Space Sit-
uational Awareness Strategy shall include the fol-
lowing (set forth for the 20-year period specified in 
paragraph (2) and separately for each successive five- 
year period beginning with 2006): 
(A) A threat assessment describing the per-
ceived threats to United States space assets af-
fecting national security. 
(B) Details for a coherent and comprehen-
sive strategy for the United States for space situ-
ational awareness, together with a description of 
the systems architecture to implement that strat-
egy in light of the threat assessment under sub-
paragraph (A). 
(C) A description of each of the individual 
program concepts that will make up the systems 
architecture described pursuant to subparagraph 
(B) and, for each such program concept, a de-
scription of the specific capabilities to be 
achieved and the threats to be abated. 
(c) SPACE SITUATIONAL AWARENESS CAPABILITIES 
ROADMAP.—
343 
(1) REQUIREMENT.—The Secretary of the Air 
Force shall develop a roadmap, to be known as the 
‘‘space situational awareness capabilities roadmap’’, 
for the development of the systems architecture de-
scribed pursuant to subsection (b)(3)(B). 
(2) MATTERS TO BE INCLUDED.— The space sit-
uational awareness capabilities roadmap shall in-
clude— 
(A) capabilities of all systems deployed as of 
mid-2005 or planned for modernization or ac-
quisition from 2006 to 2015; and 
(B) a description of recommended solutions 
for inadequacies in the architecture to address 
threats identified under subsection (b)(3)(A). 
SEC. 912. MILITARY SATELLITE COMMUNICATIONS. 
(a) FINDINGS.—Congress finds the following: 
(1) Military requirements for satellite commu-
nications exceed the capability of on-orbit assets as of 
mid-2005. 
(2) To meet future military requirements for sat-
ellite communications, the Secretary of the Air Force 
has initiated a highly complex and revolutionary pro-
gram called the Transformational Satellite Commu-
nications System (TSAT).
344 
(3) If the program referred to in paragraph (2) 
experiences setbacks that prolong the development and 
deployment of the capability to be provided by that 
program, the Secretary of the Air Force must be pre-
pared to implement contingency programs to achieve 
interim improvements in the capabilities of satellite 
communications 
to 
meet 
military 
requirements 
through upgrades to current systems. 
(b) DEVELOPMENT OF OPTIONS.—In order to prepare 
for the contingency referred to in subsection (a)(3), the Di-
rector of the National Security Space Office of the Depart-
ment of Defense shall provide for an assessment, to be con-
ducted by an entity outside the Department of Defense, to 
develop and compare options for individual acquisition, 
and block acquisition, of the Advanced Extremely High Fre-
quency space vehicles numbered 4 and 5, in conjunction 
with modifications to the current Wideband Gapfiller Sys-
tem program, that will accomplish the following: 
(1) Minimize nonrecurring costs. 
(2) Improve communications-on-the-move capa-
bilities. 
(3) Increase net centricity for communications. 
(4) Increase satellite throughput. 
(5) Increase user connectivity. 
(6) Improve airborne communications support.
345 
(c) ANALYSIS OF ALTERNATIVES REPORT.—Not later 
than February 28, 2006, the Director of the National Secu-
rity Space Office shall submit to Congress a report pro-
viding an analysis of alternatives with respect to the op-
tions developed pursuant to subsection (b). The analysis of 
alternatives shall be prepared taking into consideration the 
findings and recommendations of the independent assess-
ment conducted under subsection (b). 
SEC. 913. OPERATIONALLY RESPONSIVE SPACE. 
(a) JOINT OPERATIONALLY RESPONSIVE SPACE PAY-
LOAD TECHNOLOGY ORGANIZATION.— 
(1) IN GENERAL.—The Secretary of Defense shall 
establish or designate an organization in the Depart-
ment of Defense to coordinate joint operationally re-
sponsive space payload technology. 
(2) MASTER PLAN.—The organization established 
or designated under paragraph (1) shall produce an 
annual master plan for coordination of operationally 
responsive space payload technology and shall coordi-
nate resources provided to stimulate technical develop-
ment of small satellite payloads. The annual master 
plan shall describe focus areas for development of 
operationally responsive space payload technology, in-
cluding—
346 
(A) miniaturization technology for satellite 
payloads; 
(B) increased sensor acuity; 
(C) concept of operations exploration; 
(D) increased processor capability; and 
(E) such additional matters as the head of 
that organization determines appropriate. 
(3) REQUESTS FOR PROPOSALS.—The Secretary 
of Defense, acting through the Director of the Office 
of Force Transformation, shall award contracts, from 
amounts available for that purpose for any fiscal 
year, for technology projects that support the focus 
areas set out in the master plan for development of 
operationally responsive space payload technology. 
(4) ASSESSMENT
FACTORS.—In assessing any 
proposal submitted for a contract under paragraph 
(3), the Secretary shall consider — 
(A) how the proposal correlates to the goals 
articulated in the master plan under paragraph 
(2) and to the National Security Space Architec-
ture; and 
(B) the probability, for the project for which 
the proposal is submitted, of eventual transition 
either to a laboratory of one of the military de-
347 
partments for continued development or to a 
joint program office for operational deployment. 
(b) REPORT
ON
JOINT
PROGRAM
OFFICE
FOR 
TACSAT.—Not later than February 28, 2006, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report providing a plan for the creation of 
a joint program office for the Tactical Satellite program 
and for transition of that program out of the Office of Force 
Transformation and to the administration of the joint pro-
gram office. The report shall be prepared in conjunction 
with the Department of Defense executive agent for space. 
(c) JOINT REPORT ON CERTAIN SPACE AND MISSILE 
DEFENSE ACTIVITIES.—Not later than February 28, 2006, 
the Department of Defense executive agent for space and 
the Director of the Missile Defense Agency shall submit to 
the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representa-
tives a joint report on the value of each of the following: 
(1) Increased use of the Rocket Systems Launch 
Program for the respective missions of the Depart-
ment of the Air Force and the Missile Defense Agency. 
(2) An agreement between the Director of the 
Missile Defense Agency and the Secretary of the Air 
Force for eventual transition of operational control of
348 
small satellite demonstrations from the Missile De-
fense Agency to the Department of the Air Force. 
(3) A partnership between the Missile Defense 
Agency and the Department of the Air Force in the 
development of common high-altitude and near-space 
assets for the respective missions of the Missile De-
fense Agency and the Department of the Air Force. 
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, 2006, 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-
349 
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. 
‘‘(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. CLARIFICATION OF COOPERATIVE AGREEMENT 
AUTHORITY 
UNDER 
CHEMICAL 
DEMILI-
TARIZATION PROGRAM. 
(a) AGREEMENTS WITH FEDERALLY RECOGNIZED IN-
DIAN TRIBAL GOVERNMENTS.—Section 1412(c)(4) of the 
Department of Defense Authorization Act, 1986 (50 U.S.C 
1521(c)(4)) is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(4)’’; 
(2) in the first sentence— 
(A) by inserting ‘‘and to tribal organiza-
tions of Indian tribes’’ after ‘‘to State and local 
governments’’; and
350 
(B) by inserting ‘‘and organizations’’ after 
‘‘assist those governments’’ 
(3) by designating the text beginning ‘‘Addition-
ally, the Secretary ’’ as subparagraph (B); 
(4) in the first sentence of subparagraph (B), as 
designated by paragraph (2), by inserting ‘‘, and 
with tribal organizations of Indian tribes,’’ after 
‘‘with State and local governments’’; and 
(5) by adding at the end the following new sub-
paragraph: 
‘‘(C) In this subparagraph, the terms ‘tribal organiza-
tion’ and ‘Indian tribes’ have the meanings given those 
terms in subsections (e) and (l), respectively, of section 4 
of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b).’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect as of December 5, 1991, and 
shall apply with respect to cooperative agreements entered 
into on or after that date. 
Subtitle D—Intelligence-Related 
Matters 
SEC. 931. DEPARTMENT OF DEFENSE STRATEGY FOR OPEN- 
SOURCE INTELLIGENCE. 
(a) FINDINGS.—Congress makes the following findings:
351 
(1) Open-source intelligence (OSINT) is intel-
ligence that is produced from publicly available infor-
mation collected, exploited, and disseminated in a 
timely manner to an appropriate audience for the 
purpose of addressing a specific intelligence require-
ment. 
(2) With the Information Revolution, the 
amount, significance, and accessibility of open-source 
information has exploded, but the Intelligence Com-
munity has not expanded its exploitation efforts and 
systems to produce open-source intelligence. 
(3) The production of open-source intelligence is 
a valuable intelligence discipline that must be inte-
grated in the intelligence cycle to ensure that United 
States policymakers are fully and completely in-
formed. 
(4) The dissemination and use of validated open- 
source intelligence inherently enables information 
sharing as it is produced without the use of sensitive 
sources and methods. Open-source intelligence prod-
ucts can be shared with the American public and for-
eign allies because of its unclassified nature. 
(5) The National Commission on Terrorist At-
tacks Upon the United States, in its Final Report re-
leased on July 22, 2004, identified shortfalls in the
352 
ability of the United States to employ all-source intel-
ligence, a large component of which is open-source in-
telligence. 
(6) The Intelligence Reform and Terrorism Pre-
vention Act of 2004 (Public Law 108–458) advocates 
for coordination of the collection, analysis, produc-
tion, and dissemination of open-source intelligence. 
(7) The Commission on the Intelligence Capa-
bilities of the United States Regarding Weapons of 
Mass Destruction, in its report to the President re-
leased on March 31, 2005, found ‘‘that the need for 
exploiting open-source material is greater now than 
ever before,’’ but that ‘‘the Intelligence Community’s 
open source programs have not expanded commensu-
rate with either the increase in available information 
or with the growing importance of open source data 
to today’s problems’’. 
(b) STRATEGY FOR OPEN-SOURCE INTELLIGENCE.— 
(1) DEVELOPMENT
OF
STRATEGY.—The Sec-
retary of Defense shall develop a strategy, to be known 
as the ‘‘Strategy for Open-Source Intelligence’’, to be 
incorporated within the larger military intelligence 
strategy, for the purpose of integrating open-source 
intelligence into the military intelligence cycle.
353 
(2) SUBMISSION.—The Secretary shall submit 
the Strategy for Open-Source Intelligence to Congress 
not later than January 31, 2006. 
(3) MATTERS TO BE INCLUDED.—The Strategy 
for Open-Source Intelligence shall include the fol-
lowing: 
(A) An investment strategy for the develop-
ment of a robust open-source intelligence capa-
bility, with particular emphasis on exploitation 
and dissemination. 
(B) A description of how management of 
open-source intelligence collection is currently 
performed at the Department level and how it 
can be improved in the future. 
(C) A description of the tools, systems, cen-
ters, personnel, and procedures that will be used 
to perform open-source intelligence tasking, col-
lection, exploitation, and dissemination. 
(D) A description of proven tradecraft for 
effective open-source intelligence exploitation, to 
include consideration of operational security. 
(E) A detailed description on how open- 
source intelligence will be fused with all other in-
telligence sources across the Department of De-
fense.
354 
(F) A description of open-source intelligence 
training plan and guidance for Department of 
Defense and service intelligence personnel. 
(G) A plan to incorporate the open-source 
intelligence oversight function into the Office of 
the Undersecretary of Defense for Intelligence 
and into service intelligence organizations. 
(H) A plan to incorporate and identify an 
open-source intelligence specialty into Depart-
ment and service personnel systems. 
(I) A plan to use reserve component intel-
ligence personnel to augment and support the 
open-source intelligence mission. 
(J) A plan for the use of the Open-Source 
Information System for the purpose of exploi-
tation and dissemination. 
SEC. 932. COMPREHENSIVE INVENTORY OF DEPARTMENT 
OF 
DEFENSE 
INTELLIGENCE 
AND 
INTEL-
LIGENCE-RELATED 
PROGRAMS 
AND 
PROJECTS. 
(a) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional committees specified in sub-
section (b) a report providing a comprehensive inventory 
of Department of Defense intelligence and intelligence-re-
355 
lated programs and projects. The Secretary shall prepare 
the inventory in consultation with the Director of National 
Intelligence, as appropriate. 
(b) COMMITTEES.—The congressional committees re-
ferred to in subsection (a) are the following: 
(1) The Committee on Armed Services and the 
Select Committee on Intelligence of the Senate. 
(2) The Committee on Armed Services and the 
Permanent Select Committee on Intelligence of the 
House of Representatives. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial matters 
1001. Transfer authority. 
1002. Authorization of supplemental appropriations for fiscal year 2005. 
1003. Increase in fiscal year 2005 general transfer authority. 
1004. Reports on feasibility and desirability of capital budgeting for major de-
fense acquisition programs. 
Subtitle B—Naval Vessels and Shipyards 
1011. Conveyance, Navy drydock, Seattle, Washington. 
1012. Conveyance, Navy drydock, Jacksonville, Florida. 
1013. Conveyance, Navy drydock, Port Arthur, Texas. 
1014. Transfer of U.S.S. IOWA. 
1015. Transfer of ex-U.S.S. Forrest Sherman. 
1016. Limitation on leasing of foreign-built vessels. 
Subtitle C—Counter-Drug Activities 
1021. Extension of Department of Defense authority to support counter-drug ac-
tivities. 
1022. Resumption of reporting requirement regarding Department of Defense ex-
penditures to support foreign counter-drug activities. 
1023. Clarification of authority for joint task forces to support law enforcement 
agencies conducting counter-terrorism activities. 
Subtitle D—Matters Related to Homeland Security 
1031. Responsibilities of Assistant Secretary of Defense for Homeland Defense re-
lating to nuclear, chemical, and biological emergency response. 
1032. Testing of preparedness for emergencies involving nuclear, radiological, 
chemical, biological, and high-yield explosives weapons.
356 
1033. Department of Defense chemical, biological, radiological, nuclear, and high- 
yield explosives response teams. 
1034. Repeal of Department of Defense emergency response assistance program. 
Subtitle E—Other Matters 
1041. Commission on the Long-Term Implementation of the New Strategic Pos-
ture of the United States. 
1042. Reestablishment of EMP Commission. 
1043. Modernization of authority relating to security of defense property and fa-
cilities. 
1044. Revision of Department of Defense counterintelligence polygraph program. 
1045. Repeal of requirement for report to Congress regarding global strike capa-
bility. 
1046. Technical and clerical amendments. 
1047. Deletion of obsolete definitions in titles 10 and 32, United States Code. 
Subtitle A—Financial Matters 
SEC. 1001. 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 
2006 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 
$4,000,000,000.
357 
(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. 
(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 2005. 
Amounts authorized to be appropriated to the Depart-
ment of Defense and the Department of Energy for fiscal 
year 2005 in the Ronald W. Reagan National Defense Au-
thorization Act for Fiscal Year 2005 (Public Law 108–375) 
are hereby adjusted, with respect to any such authorized 
amount, by the amount by which appropriations pursuant 
to such authorization are increased by a supplemental ap-
propriation or decreased by a rescission, or both, or are in-
358 
creased by a transfer of funds, pursuant to title I and chap-
ter 2 of title IV of division A of the Emergency Supple-
mental Appropriations Act for Defense, the Global War on 
Terror, and Tsunami Relief, 2005 (Public Law 109–13). 
SEC. 1003. INCREASE IN FISCAL YEAR 2005 GENERAL TRANS-
FER AUTHORITY. 
Section 1001(a)(2) of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public 
Law 108–375; 118 Stat. 2037) is amended by striking 
‘‘$3,500,000,000’’ and inserting ‘‘$6,185,000,000’’. 
SEC. 1004. REPORTS ON FEASIBILITY AND DESIRABILITY OF 
CAPITAL BUDGETING FOR MAJOR DEFENSE 
ACQUISITION PROGRAMS. 
(a) CAPITAL BUDGETING DEFINED.—For the purposes 
of this section, the term ‘‘capital budgeting’’ means a budget 
process that— 
(1) identifies large capital outlays that are ex-
pected to be made in future years, together with iden-
tification of the proposed means to finance those out-
lays and the expected benefits of those outlays; 
(2) separately identifies revenues and outlays for 
capital assets from revenues and outlays for an oper-
ating budget; 
(3) allows for the issue of long-term debt to fi-
nance capital investments; and
359 
(4) provides the budget authority for acquiring a 
capital asset over several fiscal years (rather than in 
a single fiscal year at the beginning of such acquisi-
tion). 
(b) REPORTS REQUIRED.—Not later than July 1, 
2006, the Secretary of Defense and the Secretary of each 
military department shall each submit to Congress a report 
analyzing the feasibility and desirability of using a capital 
budgeting system for the financing of major defense acquisi-
tion programs. Each such report shall address the following 
matters: 
(1) The potential long-term effect on the defense 
industrial base of the United States of continuing 
with the current full up-front funding system for 
major defense acquisition programs. 
(2) Whether use of a capital budgeting system 
could create a more effective decisionmaking process 
for long-term investments in major defense acquisi-
tion programs. 
(3) The manner in which a capital budgeting 
system for major defense acquisition programs would 
affect the budget planning and formulation process of 
the military departments.
360 
(4) The types of financial mechanisms that 
would be needed to provide funds for such a capital 
budgeting system. 
Subtitle B—Naval Vessels and 
Shipyards 
SEC. 1011. CONVEYANCE, NAVY DRYDOCK, SEATTLE, WASH-
INGTON. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the 
Navy is authorized to sell the yard floating drydock YFD– 
70, located in Seattle, Washington, to Todd Pacific Ship-
yards Corporation, that company being the current user of 
the drydock. 
(b) CONDITION OF CONVEYANCE.—The Secretary shall 
require as a condition of the conveyance under subsection 
(a) that the drydock remain at the facilities of Todd Pacific 
Shipyards Corporation until at least September 30, 2010. 
(c) CONSIDERATION.—As consideration for the convey-
ance of the drydock under subsection (a), the purchaser shall 
pay to the United States an amount equal to the fair mar-
ket value of the drydock, as determined by the Secretary. 
(d) TRANSFERS AT NO COST TO UNITED STATES.— 
The provisions of section 7306(c) of title 10, United States 
Code, shall apply to the conveyance under this section. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions
361 
in connection with the conveyance under subsection (a) as 
the Secretary considers appropriate to protect the interests 
of the United States. 
SEC. 1012. CONVEYANCE, NAVY DRYDOCK, JACKSONVILLE, 
FLORIDA. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the 
Navy is authorized to sell the medium auxiliary floating 
drydock SUSTAIN (AFDM–7), located in Duval County, 
Florida, to Atlantic Marine Property Holding Company, 
that company being the current user of the drydock. 
(b) CONDITION OF CONVEYANCE.—The Secretary shall 
require as a condition of the conveyance under subsection 
(a) that the drydock remain at the facilities of Atlantic Ma-
rine Property Holding Company until at least September 
30, 2010. 
(c) CONSIDERATION.—As consideration for the convey-
ance of the drydock under subsection (a), the purchaser shall 
pay to the United States an amount equal to the fair mar-
ket value of the drydock, as determined by the Secretary. 
(d) TRANSFERS AT NO COST TO UNITED STATES.— 
The provisions of section 7306(c) of title 10, United States 
Code, shall apply to the conveyance under this section. 
(d) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions 
in connection with the conveyance under subsection (a) as
362 
the Secretary considers appropriate to protect the interests 
of the United States. 
SEC. 1013. CONVEYANCE, NAVY DRYDOCK, PORT ARTHUR, 
TEXAS. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the 
Navy is authorized to convey, without consideration, to the 
port authority of the city of Port Arthur, Texas, the inactive 
medium auxiliary floating drydock designated as AFDM– 
2, currently administered through the National Defense Re-
serve Fleet. 
(b) CONDITION OF CONVEYANCE.—The Secretary shall 
require as a condition of the conveyance under subsection 
(a) that the drydock remain at the facilities of the port au-
thority named in subsection (a). 
(d) TRANSFERS AT NO COST TO UNITED STATES.— 
The provisions of section 7306(c) of title 10, United States 
Code, shall apply to the conveyance under this section. 
(c) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions 
in connection with the conveyance under subsection (a) as 
the Secretary considers appropriate to protect the interests 
of the United States. 
SEC. 1014. TRANSFER OF U.S.S. IOWA. 
(a) WAIVER OF REQUIREMENT FOR CONTINUED LIST-
ING ON NAVAL VESSEL REGISTER.—The provisions of the
363 
following laws do not apply with respect to the U.S.S. 
IOWA (BB–61): 
(1) Section 1011 of the National Defense Author-
ization Act for Fiscal Year 1996 (Public Law 104– 
106; 110 Stat. 421). 
(2) Section 1011 of the Strom Thurmond Na-
tional Defense Authorization Act for Fiscal Year 1999 
(Public Law 105–261; 112 Stat. 2118). 
(b) TRANSFER.—The Secretary of the Navy shall— 
(1) strike the U.S.S. IOWA (BB–61) from the 
Naval Vessel Register; and 
(2) subject to the submission of a donation appli-
cation for that vessel that is satisfactory to the Sec-
retary, transfer that vessel to the Port of Stockton, 
California, subject to subsections (b) and (c) of section 
7306 of title 10, United States Code. 
SEC. 1015. TRANSFER OF EX-U.S.S. FORREST SHERMAN. 
(a) TRANSFER.—The Secretary of the Navy shall 
transfer the decommissioned destroyer ex-U.S.S. Forrest 
Sherman (DD–931) to the USS Forrest Sherman DD–931 
Foundation, Inc., a nonprofit organization under the laws 
of the State of Maryland, subject to the submission of a do-
nation application for that vessel that is satisfactory to the 
Secretary.
364 
(b) APPLICABLE LAW.—The transfer under this section 
is subject to subsections (b) and (c) of section 7306 of title 
10, United States Code. Subsection (d) of that section is 
hereby waived with respect to such transfer. 
(c) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions 
in connection with the transfer under subsection (a) as the 
Secretary considers appropriate. 
(d) EXPIRATION
OF
AUTHORITY.—The authority 
granted by subsection (a) shall expire at the end of the five- 
year period beginning on the date of the enactment of this 
Act. 
SEC. 1016. LIMITATION ON LEASING OF FOREIGN-BUILT 
VESSELS. 
(a) IN GENERAL.— 
(1) CONTRACTS FOR LEASES FOR MORE THAN 24 
MONTHS.—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 
of a vessel for a term of more than 24 months (including 
all options to renew or extend the contract) if the hull, or
365 
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) CLERICAL 
AMENDMENT.—The table of sections at the beginning of such 
chapter is amended by inserting after the item relating to 
section 2401a the following new item: 
‘‘2401b. Limitation on lease of foreign-built vessels.’’. 
(b) EFFECTIVE DATE.—Section 2401b of title 10, 
United States Code, as added by subsection (a), shall apply 
with respect to contracts entered into after the date of the 
enactment of this Act. 
Subtitle C—Counter-Drug Activities 
SEC. 1021. EXTENSION OF DEPARTMENT OF DEFENSE AU-
THORITY TO SUPPORT COUNTER-DRUG AC-
TIVITIES. 
Section 1004(a) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C.
366 
374 note), as amended by section 1021 of the National De-
fense Authorization Act for Fiscal Year 2002 (Public Law 
107–107; 115 Stat. 1212), is amended by striking ‘‘2006’’ 
and inserting ‘‘2011’’. 
SEC. 1022. RESUMPTION OF REPORTING REQUIREMENT RE-
GARDING 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), is further 
amended by striking ‘‘January 1, 2001, and April 15, 
2002,’’ and inserting ‘‘April 15, 2006,’’. 
(b) ADDITIONAL INFORMATION REQUIRED.—Such sec-
tion is further amended— 
(1) by redesignating paragraph (3) as para-
graph (4); and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3): 
‘‘(3) A description of each base of operation or 
training facility established, constructed, or operated 
using the assistance, including any minor construc-
367 
tion projects carried out using such assistance, and 
the amount of assistance expended on base of oper-
ations and training facilities.’’. 
SEC. 1023. CLARIFICATION OF AUTHORITY FOR JOINT TASK 
FORCES TO SUPPORT LAW ENFORCEMENT 
AGENCIES 
CONDUCTING 
COUNTER-TER-
RORISM ACTIVITIES. 
Section 1022 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 
1594) is amended— 
(1) by redesignating subsection (b) as subsection 
(c); and 
(2) by inserting after subsection (a) the following 
new subsection (b): 
‘‘(b) AVAILABILITY OF FUNDS.—Funds available to a 
joint task force to support counter-drug activities may also 
be used to provide the counter-terrorism support authorized 
by subsection (a).’’.
368 
Subtitle D—Matters Related to 
Homeland Security 
SEC. 1031. RESPONSIBILITIES OF ASSISTANT SECRETARY 
OF DEFENSE FOR HOMELAND DEFENSE RE-
LATING TO NUCLEAR, CHEMICAL, AND BIO-
LOGICAL EMERGENCY RESPONSE. 
Subsection (a) of section 1413 of the Defense Against 
Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2313) 
is amended to read as follows: 
‘‘(a) DEPARTMENT OF DEFENSE.—The Assistant Sec-
retary of Defense for Homeland Defense is responsible for 
the coordination of Department of Defense assistance to 
Federal, State, and local officials in responding to threats 
involving nuclear, radiological, biological, chemical weap-
ons, or high-yield explosives or related materials or tech-
nologies, including assistance in identifying, neutralizing, 
dismantling, and disposing of nuclear, radiological, biologi-
cal, chemical weapons, and high-yield explosives and re-
lated materials and technologies.’’.
369 
SEC. 1032. TESTING OF PREPAREDNESS FOR EMERGENCIES 
INVOLVING NUCLEAR, RADIOLOGICAL, CHEM-
ICAL, BIOLOGICAL, AND HIGH-YIELD EXPLO-
SIVES WEAPONS. 
(a) SECRETARY
OF HOMELAND SECURITY FUNC-
TIONS.—Subsection (a) of section 1415 of the Defense 
Against Weapons of Mass Destruction Act of 1996 (50 
U.S.C. 2315) is amended— 
(1) in the subsection heading, by striking 
‘‘CHEMICAL OR’’ and inserting ‘‘NUCLEAR, RADIO-
LOGICAL, CHEMICAL, OR’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘Secretary of Defense’’ and 
inserting ‘‘Secretary of Homeland Security’’; 
and 
(B) by striking ‘‘biological weapons and re-
lated materials and emergencies involving ’’ and 
inserting ‘‘nuclear, radiological, biological, and’’; 
(3) in paragraph (2), by striking ‘‘during each 
of fiscal years 1997 through 2013’’ and inserting ‘‘in 
accordance with sections 102(c) and 430(c)(1) of the 
Homeland Security Act of 2002 (6 U.S.C. 112(c), 
238(c)(1))’’; and 
(4) in paragraph (3)—
370 
(A) by inserting ‘‘the Secretary of Defense,’’ 
before ‘‘the Director of the Federal Bureau of In-
vestigation’’; and 
(B) by striking ‘‘the Director of the Federal 
Emergency Management Agency,’’. 
(b) REPEAL OF SECRETARY OF ENERGY FUNCTIONS.— 
Such section is further amended by striking subsection (b). 
(c) CONFORMING AMENDMENTS.—Subsection (c) of 
such section— 
(1) is redesignated as subsection (b); and 
(2) is amended— 
(A) in the first sentence, by striking ‘‘The 
official responsible for carrying out a program 
developed under subsection (a) or (b) shall revise 
the program’’ and inserting ‘‘The Secretary of 
Homeland Security shall revise the program de-
veloped under subsection (a)’’; and 
(B) in the second sentence, by striking ‘‘the 
official’’ and inserting ‘‘the Secretary’’. 
(d) REPEAL OF OBSOLETE PROVISIONS.—Such section 
is further amended by striking subsections (d) and (e).
371 
SEC. 1033. DEPARTMENT OF DEFENSE CHEMICAL, BIOLOGI-
CAL, RADIOLOGICAL, NUCLEAR, AND HIGH- 
YIELD EXPLOSIVES RESPONSE TEAMS. 
Section 1414 of the Defense Against Weapons of Mass 
Destruction Act of 1996 (50 U.S.C. 2314) is amended as 
follows: 
(1) The heading of such section is amended to 
read as follows: 
‘‘SEC. 1414. CHEMICAL, BIOLOGICAL, RADIOLOGICAL, NU-
CLEAR, AND HIGH-YIELD EXPLOSIVES RE-
SPONSE TEAM.’’. 
(2) Subsection (a) of such section is amended by 
striking ‘‘or related materials’’ and inserting ‘‘radio-
logical, nuclear, and high-yield explosives’’. 
(3) Subsection (b) of such section is amended— 
(A) in the subsection heading, by striking 
‘‘PLAN’’ and inserting ‘‘PLANS’’; 
(B) in the first sentence, by striking ‘‘Not 
later than’’ and all that follows through ‘‘re-
sponse plans and’’ and inserting ‘‘The Secretary 
of Homeland Security shall incorporate into the 
National Response Plan prepared pursuant to 
section 502(6) of the Homeland Security Act of 
2002 (6 U.S.C. 312(6)), other existing Federal 
emergency response plans, and’’; and 
(C) in the second sentence—
372 
(i) by striking ‘‘Director’’ and insert-
ing ‘‘Secretary of Homeland Security’’; and 
(ii) by striking ‘‘consultation’’and in-
serting ‘‘coordination’’. 
SEC. 1034. REPEAL OF DEPARTMENT OF DEFENSE EMER-
GENCY RESPONSE ASSISTANCE PROGRAM. 
Section 1412 of the Defense Against Weapons of Mass 
Destruction Act of 1996 (50 U.S.C. 2312) is repealed. 
Subtitle E—Other Matters 
SEC. 1041. COMMISSION ON THE LONG-TERM IMPLEMENTA-
TION OF THE NEW STRATEGIC POSTURE OF 
THE UNITED STATES. 
(a) ESTABLISHMENT OF COMMISSION.— 
(1) ESTABLISHMENT.—There is hereby estab-
lished a commission to be known as the ‘‘Commission 
on the Long-Term Implementation of the New Stra-
tegic Posture of the United States’’. The Secretary of 
Defense shall enter into a contract with a federally 
funded research and development center to provide for 
the organization, management, and support of the 
Commission. Such contract shall be entered into in 
consultation with the Secretary of Energy. The selec-
tion of the federally funded research and development 
center shall be subject to the approval of the chairman 
of the Commission.
373 
(2) COMPOSITION.—(A) The Commission shall be 
composed of 12 members who shall be appointed by 
the Secretary of Defense. In selecting individuals for 
appointment to the Commission, the Secretary of De-
fense shall consult with the chairman and ranking 
minority member of the Committee on Armed Services 
of the Senate and the chairman and ranking minor-
ity member of the Committee on Armed Services of 
the House of Representatives. 
(B) Members of the Commission shall be ap-
pointed from among private United States citizens 
with knowledge and expertise in the political, mili-
tary, operational, and technical aspects of nuclear 
strategy. 
(3) CHAIRMAN OF THE COMMISSION.—The Sec-
retary of Defense shall designate one of the members 
of the Commission to serve as chairman of the Com-
mission. 
(4) PERIOD
OF
APPOINTMENT; VACANCIES.— 
Members shall be appointed for the life of the Com-
mission. Any vacancy in the Commission shall be 
filled in the same manner as the original appoint-
ment.
374 
(5) SECURITY CLEARANCES.—All members of the 
Commission shall hold appropriate security clear-
ances. 
(b) DUTIES OF COMMISSION.— 
(1) REVIEW OF LONG-TERM IMPLEMENTATION OF 
THE NUCLEAR POSTURE REVIEW.—The Commission 
shall examine long-term programmatic requirements 
to achieve the goals set forth in the report of the Sec-
retary of Defense submitted to Congress on December 
31, 2001, providing the results of the Nuclear Posture 
Review conducted pursuant to section 1041 of the 
Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (as enacted into law by Public 
Law 106–398; 114 Stat. 1654, 1654A–262) and re-
sults of periodic assessments of the Nuclear Posture 
Review. Matters examined by the Commission shall 
include the following: 
(A) The process of establishing requirements 
for strategic forces and how that process accom-
modates employment of nonnuclear strike plat-
forms and munitions in a strategic role. 
(B) How strategic intelligence, reconnais-
sance, and surveillance requirements differ from 
nuclear intelligence, reconnaissance, and surveil-
lance requirements.
375 
(C) The ability of a limited number of stra-
tegic platforms to carry out a growing range of 
nonnuclear strategic strike missions. 
(D) The limits of tactical systems to per-
form nonnuclear global strategic missions in a 
prompt manner. 
(E) An assessment of the ability of the cur-
rent nuclear stockpile to address the evolving 
strategic threat environment through 2025. 
(2) RECOMMENDATIONS.—The Commission shall 
include in its report recommendations with respect to 
the following: 
(A) Changes to the requirements process to 
employ nonnuclear strike platforms and muni-
tions in a strategic role. 
(B) Changes to the nuclear stockpile and in-
frastructure required to preserve a nuclear capa-
bility commensurate with the changes to the stra-
tegic threat environment through 2025. 
(C) Actions the Secretary of Defense and the 
Secretary of Energy can take to preserve flexi-
bility of the defense nuclear complex while reduc-
ing the cost of a Cold War strategic infrastruc-
ture.
376 
(D) Identify shortfalls in the strategic mod-
ernization programs of the United States that 
would undermine the ability of the United States 
to develop new nonnuclear strategic strike capa-
bilities. 
(3) COOPERATION
FROM
GOVERNMENT
OFFI-
CIALS.—(A) In carrying out its duties, the Commis-
sion shall receive the full and timely cooperation of 
the Secretary of Defense, the Secretary of Energy, and 
any other United States Government official in pro-
viding the Commission with analyses, briefings, and 
other information necessary for the fulfillment of its 
responsibilities. 
(B) The Secretary of Energy and the Secretary 
of Defense shall each designate at least one officer or 
employee of the Department of Energy and the De-
partment of Defense, respectively, to serve as a liaison 
officer between the department and the Commission. 
(c) REPORTS.— 
(1) COMMISSION
REPORT.—The Commission 
shall submit to the Secretary of Defense and the Com-
mittees on Armed Services of the Senate and House 
of Representatives a report on the Commission’s find-
ings and conclusions. Such report shall be submitted
377 
not later that 28 months after the date of the first 
meeting of the Commission. 
(2) SECRETARY
OF
DEFENSE
RESPONSE.—Not 
later than one year after the date on which the Com-
mission submits its report under paragraph (1), the 
Secretary of Defense shall submit to Congress a re-
port— 
(A) commenting on the Commission’s find-
ings and conclusions; and 
(B) explaining what actions, if any, the 
Secretary intends to take to implement the rec-
ommendations of the Commission and, with re-
spect to each such recommendation, the Sec-
retary’s reasons for implementing, or not imple-
menting, the recommendation. 
(d) HEARINGS AND PROCEDURES.— 
(1) HEARINGS.—The Commission may, for the 
purpose of carrying out the purposes of this section, 
hold hearings and take testimony. 
(2) PROCEDURES.—The federally funded re-
search and development center with which a contract 
is entered into under subsection (a)(1) shall be re-
sponsible for establishing appropriate procedures for 
the Commission.
378 
(3) DETAIL
OF
GOVERNMENT
EMPLOYEES.— 
Upon request of the chairman of the Commission, the 
head of any Federal department or agency may de-
tail, on a nonreimbursable basis, personnel of that de-
partment or agency to the Commission to assist it in 
carrying out its duties. 
(e) FUNDING.—Funds for activities of the Commission 
shall be provided from amounts appropriated for the De-
partment of Defense. 
(f) TERMINATION OF COMMISSION.—The Commission 
shall terminate 60 days after the date of the submission of 
its report under subsection (c)(1). 
(g) IMPLEMENTATION.— 
(1) FFRDC CONTRACT.—The Secretary of De-
fense shall enter into the contract required under sub-
section (a)(1) not later that 60 days after the date of 
the enactment of this Act. 
(2) FIRST MEETING.—The Commission shall con-
vene its first meeting not later than 60 days after the 
date as of which all members of the Commission have 
been appointed. 
SEC. 1042. REESTABLISHMENT OF EMP COMMISSION. 
(a) REESTABLISHMENT.—The commission established 
pursuant to title XIV of the Floyd D. Spence National De-
fense Authorization Act for Fiscal Year 2001 (as enacted
379 
into law by Public Law 106–398; 114 Stat. 1654A–345), 
known as the Commission to Assess the Threat to the United 
States from Electromagnetic Pulse Attack, is hereby reestab-
lished. 
(b) MEMBERSHIP.—The Commission as reestablished 
shall have the same membership as the Commission had as 
of the date of the submission of the report of the Commission 
pursuant to section 1403(a) of such Act, as in effect before 
the date of the enactment of this Act. Service on the Com-
mission is voluntary, and Commissioners may elect to ter-
minate their service on the Commission. 
(c) COMMISSION CHARTER DEFINED.—In this section, 
the term ‘‘Commission charter’’ means title XIV of the 
Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106– 
398; 114 Stat. 1654A–345 et seq.). 
(d) ESTABLISHMENT AND PURPOSE.—Section 1401 of 
the Commission charter (114 Stat. 1654A–345) is amend-
ed— 
(1) by striking subsections (e) and (g); 
(2) by redesignating subsections (b), (c), and (d) 
as subsections (c), (d), and (e), respectively; 
(3) by inserting after subsection (a) the following 
new subsection (b):