526
(2) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(3) by inserting after subsection (d) the fol-
lowing new subsection (e): 
‘‘(e) AUTHORITY TO TRANSFER CERTAIN PROCEEDS 
TO SUPPORT MILITARY HOUSING PRIVATIZATION INITIA-
TIVE.—(1) The Secretary concerned may transfer family 
housing proceeds referred to in subsection (b)(3) to the 
Department of Defense Family Housing Improvement 
Fund established under section 2883(a)(1) of this title. 
‘‘(2) A transfer of proceeds under paragraph (1) may 
be made only after the end of the 30-day period beginning 
on the date the Secretary concerned submits written notice 
of, and justification for, the transfer to the appropriate 
committees of Congress or, if earlier, the end of the 14-
day period beginning on the date on which a copy of the 
notice and justification is provided in an electronic me-
dium pursuant to section 480 of this title.’’. 
(b) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (a), by inserting ‘‘ESTABLISH-
MENT.—’’ after ‘‘(a)’’; 
(2) in subsection (b), by inserting ‘‘CREDITS TO 
ACCOUNT.—’’ after ‘‘(b)’’;
527
(3) in subsection (c), by inserting ‘‘AVAIL-
ABILITY OF AMOUNTS IN ACCOUNT.—’’ after ‘‘(c)’’; 
and 
(4) in subsection (d), by inserting ‘‘USE OF AC-
COUNT.—’’ after ‘‘(d)’’. 
(c) CONFORMING AMENDMENT.—Section 2883(c)(1) 
of such title is amended by adding at the end the following 
new subparagraph: 
‘‘(G) Proceeds of the handling and the disposal 
of family housing of a military department that the 
Secretary concerned transfers to that Fund pursu-
ant to section 2831(e) of this title.’’. 
SEC. 2804. REPEAL OF SPECIAL REQUIREMENT FOR MILI-
TARY CONSTRUCTION CONTRACTS ON GUAM. 
(a) REPEAL.—Section 2864 of title 10, United States 
Code, is repealed. 
(b) CLERICAL AMENDMENT.—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 
2864.
528
SEC. 2805. CONGRESSIONAL NOTIFICATION OF CANCELLA-
TION CEILING FOR DEPARTMENT OF DE-
FENSE 
ENERGY 
SAVINGS 
PERFORMANCE 
CONTRACTS. 
Section 2865 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(g) CONGRESSIONAL NOTIFICATION OF CANCELLA-
TION CEILING
FOR ENERGY SAVINGS PERFORMANCE 
CONTRACTS.—When a decision is made to award an en-
ergy savings performance contract that contains a clause 
setting forth a cancellation ceiling in excess of $7,000,000, 
the Secretary of Defense shall submit to the appropriate 
committees of Congress written notification of the pro-
posed contract and of the proposed cancellation ceiling for 
the contract. The notification shall include the justifica-
tion for the proposed cancellation ceiling. The contract 
may then be awarded only after the end of the 30-day 
period beginning on the date the notification is received 
by such committees or, if earlier, the end of the 15-day 
period beginning on the date on which a copy of the notifi-
cation is provided in an electronic medium pursuant to 
section 480 of this title.’’.
529
SEC. 2806. EXPANSION OF AUTHORITY TO CONVEY PROP-
ERTY AT MILITARY INSTALLATIONS TO SUP-
PORT MILITARY CONSTRUCTION. 
(a) INCLUSION OF ALL MILITARY INSTALLATIONS.—
Subsection (a) of section 2869 of title 10, United States 
Code, is amended—
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(2) by inserting ‘‘(1)’’ before ‘‘The Secretary 
concerned’’; 
(3) by striking ‘‘located on a military installa-
tion that is closed or realigned under a base closure 
law’’ and inserting ‘‘described in paragraph (2)’’; 
and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) Paragraph (1) applies with respect to real prop-
erty under the jurisdiction of the Secretary concerned 
that—
‘‘(A) is located on a military installation that is 
closed or realigned under a base closure law; or 
‘‘(B) is determined to be excess to the needs of 
the Department of Defense.’’. 
(b) USE OF AUTHORITY TO SUPPORT AGREEMENTS 
TO LIMIT ENCROACHMENTS.—Subparagraph (A) of para-
graph (1) of subsection (a) of such section, as redesig-
530
nated and amended by subsection (a), is further amended 
by striking ‘‘land acquisition’’ and inserting ‘‘land acquisi-
tion, including a land acquisition under an agreement en-
tered into under section 2684a of this title to limit en-
croachments and other constraints on military training, 
testing, and operations’’. 
(c) ADVANCE NOTICE OF USE OF AUTHORITY; CON-
TENT
OF NOTICE.—Subsection (d) of such section is 
amended—
(1) in paragraph (1), by striking ‘‘closed or re-
aligned under the base closure laws is to be con-
veyed’’ and inserting ‘‘is proposed for conveyance’’; 
(2) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) The Secretary concerned may not enter into an 
agreement under subsection (a) for the conveyance of real 
property until—
‘‘(A) the Secretary submits to Congress notice 
of the conveyance, including—
‘‘(i) a description of the military construc-
tion project, land acquisition, military family 
housing, or military unaccompanied housing to 
be carried out under the agreement in exchange 
for the conveyance of the property; and
531
‘‘(ii) the amount of any payment to be 
made under subsection (b) or under section 
2684a(d) of this title to equalize the fair mar-
ket values of the property to be conveyed and 
the military construction project, land acquisi-
tion, military family housing, or military unac-
companied 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 pe-
riod of 14 days has elapsed from the date on which 
a copy of the notice is provided in an electronic me-
dium 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 Sec-
retary concerned shall deposit funds received under sub-
section (b) in the appropriation ‘Foreign Currency Fluc-
tuations, Construction, 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
532
currency exchange rates. The use of such funds for this 
purpose does not relieve the Secretary concerned from the 
duty 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 sec-
tion.’’. 
(e) ANNUAL REPORTS; EFFECT
OF FAILURE
TO 
SUBMIT.—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 
SUBMIT.—(1) Not later than March 15 of each year, the 
Secretary of Defense shall submit to Congress a report 
detailing the following:’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(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-
533
section (a) after that date for the conveyance of real prop-
erty until the date on which the report is finally sub-
mitted.’’. 
(f) CLERICAL AMENDMENTS.—
(1) SECTION HEADING.—The heading of such 
section 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—
534
(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 
property, or an interest in real property, under para-
graph (1)(B)’’ and inserting ‘‘under subparagraph 
(A), either through the contribution of funds or ex-
cess 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 inserting ‘‘2011’’.
535
(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 
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 
inserting 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 commit-
tees of Congress or, if earlier, the end of the 30-day period 
beginning 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
536
Code, as redesignated by section 2803(a)(2), is amend-
ed—
(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 
(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 
converted (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,
537
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 sec-
tor standards.’’. 
(b) CONFORMING AMENDMENT.—The heading of 
such subsection is amended by striking ‘‘COST OF’’. 
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 Au-
thorization 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’’.
538
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)—
(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, Com-
monwealth, or possession,’’ and inserting ‘‘the 
Secretary’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 
advisable’’. 
(b) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended—