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SEC. 312. REIMBURSEMENT OF ENVIRONMENTAL PROTEC-
TION AGENCY FOR CERTAIN COSTS IN CON-
NECTION WITH ARCTIC SURPLUS SUPER-
FUND SITE, FAIRBANKS, ALASKA. 
(a) AUTHORITY TO REIMBURSE.—Notwithstanding 
section 2215 of title 10, United States Code, the Secretary 
of Defense may transfer not more than $186,625.38 to 
the Hazardous Substance Superfund to reimburse the En-
vironmental Protection Agency for costs incurred pursu-
ant to the agreement known as ‘‘In the Matter of Arctic 
Surplus Superfund Site, U.S. EPA Docket Number 
CERCLA–10–2003–0114: Administrative Order on Con-
sent for Remedial Design and Remedial Action’’ and en-
tered into by the Department of Defense and the Environ-
mental Protection Agency on December 11, 2003. 
(b) SOURCE OF FUNDS.—Any payment under sub-
section (a) shall be made using funds authorized to be ap-
propriated by section 301(16) for environmental restora-
tion, defense-wide. 
SEC. 313. PAYMENT TO ENVIRONMENTAL PROTECTION 
AGENCY OF STIPULATED PENALTY IN CON-
NECTION WITH JACKSON PARK HOUSING 
COMPLEX, WASHINGTON. 
(a) PAYMENT REQUIRED.—Notwithstanding section 
2215 of title 10, United States Code, the Secretary of the 
Navy may transfer not more than $40,000.00 to the Haz-
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ardous Substance Superfund to pay a stipulated penalty 
assessed by the Environmental Protection Agency on Oc-
tober 25, 2005, against the Jackson Park Housing Com-
plex, Washington, for the failure of the Department of the 
Navy to timely submit a draft final Phase II Remedial 
Investigation Work Plan for the Jackson Park Housing 
Complex Operable Unit (OU–3T–JPHC) pursuant to a 
schedule included in an agreement entered into by the De-
partment of the Navy and the Environmental Protection 
Agency (U.S. EPA Docket Number CERCLA–10–2005– 
0023). 
(b) SOURCE OF FUNDS.—Any payment under sub-
section (a) shall be made using funds authorized to be ap-
propriated by section 301(14) for environmental restora-
tion, Navy. 
Subtitle C—Workplace and Depot 
Issues 
SEC. 321. INCREASE IN THRESHOLD AMOUNT FOR CON-
TRACTS FOR PROCUREMENT OF CAPITAL AS-
SETS IN ADVANCE OF AVAILABILITY OF 
WORKING-CAPITAL FUNDS FOR THE PRO-
CUREMENT. 
Section 2208(k)(2) of title 10, United States Code, 
is amended by striking ‘‘$100,000’’ and inserting 
‘‘$250,000’’.
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SEC. 322. AUTHORIZATION OF AVAILABILITY OF WORKING- 
CAPITAL FUNDS FOR CERTAIN PRODUCT IM-
PROVEMENTS. 
Section 2208 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(s) PRODUCT IMPROVEMENT.—(1) An engineering 
service, manufacturing effort, developmental testing, or 
operational test and evaluation effort for product improve-
ment of a weapon system platform, major end item, com-
ponent of a major end item, or article that is financed 
by a working-capital fund may be performed or acquired, 
if— 
‘‘(A) the combined cost of the engineering serv-
ices, manufacturing efforts, development testings, 
and operational test and evaluation efforts for the 
product improvements that are financed by the 
working-capital fund is less than $15,000,000; 
‘‘(B) the unit cost of the platform, item, compo-
nent, or article is less than $1,000,000; and 
‘‘(C) the product improvement would improve 
the reliability and maintainability, extend the useful 
life, enhance safety, lower maintenance costs, pro-
vide performance enhancement, or expand the per-
formance capability of the weapon system platform 
or major end item.