CREW: Department of Defense: Department of The Air Force: Regarding Perchlorate: Scanned Perchlorate October 2008 X

H. R.
1588-334
(b) CLERICAL AMENDMENTS.-(l) Such section is further
amended
(A) in subsection (a), by inserting "ACQUISITION
AUTHORITY.-" before "(1)";
(B) in subsection (b), as redesignated by subsection (a)(l),
by inserting "ACQUISITION OF MULTIPLE PARCELS.-" before
"This section"; and
(C) in subsection (c), as redesignated by subsection (a)(l),
by inserting "SURVEY AND ACQUISITION METHODS.-" before
"The authority".
(2) The heading of such section is amended to read as follows:
"§ 2672. Authority to acquire low-cost interests in land".
(3) The item relating to section 2672 in the table of sections
at the beginning of chapter 159 of such title is amended to read
as follows:
"2672. Authority to acquire low-cost interests in land.".
SEC. 2812. RETENTION AND AVAILABILITY OF AMOUNTS REALIZED
FROM ENERGY COST SAVINGS.
(a) IN GENERAL.-Section 2865(b) of title 10, United States
Code, is amended
(1) in paragraph (1), by striking "Two-thirds of the portion
of the funds appropriated" and inserting "An amount of the
funds appropriated";
(2) in paragraph (2), by striking "The Secretary" and
inserting "The Secretary of Defense"; and
(3) by adding at the end the following new paragraph:
"(4) The Secretary of Defense shall include in the budget mate
rial submitted to Congress in connection with the submission of
the budget for a fiscal year pursuant to section 1105 of title 31
a separate statement of the amounts available for obligation under
this subsection in such fiscal year.".
(b) EFFECTIVE DATE.-The amendment made by subsection
(a)(l) shall not apply to funds appropriated for a fiscal year before
fiscal year 2004.
SEC. 2813. ACCEPTANCE OF IN-KIND CONSIDERATION FOR EASE
MENTS.
(a) EASEMENTS FOR RIGHTS-OF-WAY.--8ection 2668(e) of title
10, United States Code, is amended
(1) by striking "Subsection (d)" and inserting "Subsections
(c) and (d)";
(2) by inserting "in-kind consideration and" before "pro
ceeds"; and
(3) by striking "subsection applies to" and inserting "sub
sections apply to in-pnd consideration and".
(b) EASEMENTS FOR UTILITY LINEs.--8ection 2669(e) of such
title is amended
(1) by striking "Subsection (d)" and inserting "Subsections
(c) and (d)";
(2) by inserting "in-kind consideration and" before "pro
ceeds"· and
(3) by striking "subsection applies to" and inserting "sub
sections apply to in-kind consideration and".
H. R. 1588-335
Subtitle C-Base Closure and Realignment

SEC. 2821. CONSIDERATION OF PUBUC·ACCES8-ROAD ISSUES
RELATED TO BASE CLOSURE, REALIGNMENT, OR PLACE·
MENT IN INACTIVE STATUS.
Section 2905(b)(2) of the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX. of Public Law 101-510; 10
U.S.C. 2687 note) is amended by adding at the end the following
new subparagraph:
"(E) If a military installation to be closed, realigned, or placed
in an inactive status under this part includes a road used for
public access through, into, or around the installation, the Secretary
of Defense shall consult with the Governor of the State and the
heads of the local governments concerned for the purpose of consid
ering the continued availability of the road for public use after
the installation is closed, realigned, or placed in an inactive status.".
SEC. 2822. CONSIDERATION OF SURGE REQUIREMENTS IN 2005 ROUND
OF BASE REALIGNMENTS AND CLOSURES.
(a) DETERMINATION OF SURGE REQUlREMENTs.-The Secretary
of Defense shall assess the probable threats to national security
and, as part of such assessment, determine the potential, prudent,
surge requirements to meet those threats.
(b) USE OF DETERMINATION.-The Secretary shall use the surge
requirements determination made under subsection (a) in the base
realignment and closure process under the Defense Base Closure
and Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note), as amended by title XXX of the
National Defense Authorization Act for Fiscal Year 2002 (Public
Law 107-107; 115 Stat. 1342).
Subtitle D-Land Conveyances

PART I-ARMY CONVEYANCES
SEC. 2831. TERMINATION OF LEASE AND CONVEYANCE OF ARMY
RESERVE FACIUTY, CONWAY, ARKANSAS.
(a) TERMINATION OF LEASE.-Upon the completion of the
replacement facility authorized for the Army Reserve facility located
in Conway, Arkansas, the Secretary of the Army may terminate
the 99-year lease between the Secretary and the University of
Central Arkansas for the property on which the old facility is
located.
(b) CONVEYANCE OF FACILITY.-As part of the termination of
the lease under subsection (a), the Secretary may convey, without
consideration, to the University of Central Arkansas all right, title,
and interest of the United States in and to the Army Reserve
facility located on the leased property.
(c) AsSUMPTION OF LIABILITY.-The University of Central
Arkansas shall expressly accept any and all liability pertaining
to the physical condition of the Army Reserve facility conveyed
under subsection (b) and shall hold the United States harmless
from any and all liability arising from the facility's physical condi
tion.
H. R. 1588-336
SEC. 2832. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY AND TEN·
NESSEE.
(a) CONVEYANCE AUTHORIZED.-The Secretary of the Army may
convey to the department of transportation of the State of Tennessee
all right, title, and interest of the United States in and to a parcel
of real property (right-of-way), including any improvements thereon,
located at Fort Campbell, Kentucky and Tennessee, for the purpose
of realigning and upgrading United States Highway 79 from a
two-lane highway to a four-lane highway.
(b) CONSIDERATION.-(1) As consideration for the conveyance
under subsection (a), the department of transportation of the State
of Tennessee shall pay from any source (including Federal funds
made available to the State from the Highway Trust Fund) all
of the costs of the Secretary incurred
(A) to convey the property, including costs related to the
preparation of documents under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), surveys (including
all surveys required under subsection (c», cultural reviews,
and administrative oversight;
(B) to relocate a cemetery to permit the highway realign
ment and upgrading;
(C) to acquire approximately 200 acres of mission-essential
replacement property required to support the training mission
at Fort Campbell; and
(D) to dispose of residual Federal property located south
of the realigned highway.
(2) The Secretary of the Army may accept funds under this
subsection from the State of Tennessee or transferred by the Sec
retary of Transportation at the request of the State from Federal
aid highway funds made available to the State to pay costs described
in paragraph (1) and credit them to the appropriate Department
of the Army accounts for the purpose of paying such costs.
(3) All funds made available from the Highway Trust Fund
to pay costs described in paragraph (1) shall be provided subject
to the requirements of section 120(b) of title 23, United States
Code, relating to the Federal share payable on account of a project
or activity.
(4) All funds accepted by the Secretary under this subsection
shall remain available until expended.
(c) DESCRIPTION OF PROPERTY.-The exact acreage and legal
description of the property to be conveyed under subsection (a)
or acquired and disposed of under subsection (b) shall be determined
by surveys satisfactory to the Secretary.
(d) ADDITIONAL TERMS AND CONDITIONS.-The Secretary 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. 2833. LAND CONVEYANCE, FORT KNOX, KENlUCKY.
(a) CONVEYANCE AUTHORIZED.-The Secretary of the Army may
convey, without consideration, to the Department of Veterans
Affairs of the Commonwealth of Kentucky (in this section referred
to as the "Department") all right, title, and interest of the United
States in and to a parcel of real property, including any improve
ments thereon, consisting of approximately 93 acres at Fort Knox,
Kentucky, for the purpose of permitting the Department to establish
and operate a State-run cemetery for veterans of the Armed Forces.
H. R.1588-337
(b) REIMBURSEMENT FOR COSTS OF CONVEYANCE.-(l) The
Department shall reimburse the Secretary for any costs incurred
by the Secretary in making the conveyance under subsection (a),
including costs related to environmental documentation and other
administrative costs. This paragraph does not apply to costs associ
ated with the environmental remediation of the property to be
conveyed.
(2) Amounts received as reimbursement under paragraph (1)
shall be credited to the fund or account that was used to cover
the costs incurred by the Secretary in carrying out the conveyance.
Amounts so credited shall be merged with amounts in such fund
or account, and shall be available for the same purposes, and
subject to the same conditions and limitations, as amounts in such
fund or account.
(c) DESCRIPTION OF PROPERTY.-The exact acreage and legal
description of the real property to be conveyed under subsection
(a) shall be determined by a survey satisfactory to the Secretary.
(d) ADDITIONAL TERMS AND CONDITIONS.-The Secretary may
require f;luch additional terms and conditions in connection with
SEC. 2834. ARMY NATIONAL GUARD ARMORY, PIERCE CITY. MISSOURI.
(a) CONTRIBUTION AUTHORIZED.-The Secretary of the Army
may make a contribution under section 18233(a) of title 10, United
States Code, for a facility for a new Army National Guard armory
in Pierce City, Missouri, in excess of the contribution otherwise
authorized by section 18236(b)(2) of such title, if the Secretary
determines that
(1) there is a compelling and immediate need for the
construction of the facility;
(2) the requirement for the facility was unanticipated and
results from a natural disaster;
(3) failure to construct the facility immediately would have
an adverse impact on the mission of the unit assigned to
the facility; and
(4) the real property for the facility will be provided by
the State of Missouri.
(b) LIMITATION.-The amount of the additional contribution
provided pursuant to subsection (a), which would otherwise be
required by section 18236(b)(2) of title 10, United States Code,
from the State of Missouri for the construction of the facility,
may not exceed the amount specified in section 18233a(a)(1) of
such title.
(c) AUTHORITY TO ACCEPT REAL PROPERTY FROM STATE.-The
Secretary may accept from the State of Missouri the donation
of real property, in addition to the real property required to be
contributed by the State under subsection (a)(4). that is acceptable
to the Secretary and has a market value not in excess of the
amount of the additional contribution provided pursuant to sub
section (a).
SEC. 2835. LAND EXCHANGE. FORT BELVOIR, VIRGINIA.
(a) LAND EXCHANGE AUTHORIZED.-Upon receipt of the consid
eration referred to in subsection (b). the Secretary of the Army
may convey to the Fairfax County Park Authority of Fairfax County,
Virginia (in this section referred to as the "Authority"), all right,
title, and interest of the United States in and to a parcel of real
H. R. 1588-338
property, including any improvements thereon, consisting of
approximately 12 acres at Fort Belvoir, Virginia.
(b) CONSIDERATION.-As consideration for the conveyance of
the property under subsection (a), the Authority shall convey to
the United States all right, title, and interest of the Authority
in and to a parcel of real property acceptable to the Secretary.
The Secretary shall have administrative jurisdiction over the real
property received under this subsection.
(c) COSTS OF CONVEYANCE.-(l) The Secretary may collect funds
from the Authority to cover costs incurred or to be incurred by
the Secretary to carry out a conveyance under this section, including
survey costs, costs related to environmental documentation, and
other administrative costs related to the conveyance. If amounts
are collected from the Authority in advance of the Secretary incur
ring the actual costs, and the amount collected exceeds the costs
actually incurred by the Secretary to carry out the conveyance,
the Secretary shall refund the excess amount to the Authority.
(2) Amounts collected under paragraph (1) to cover costs pre
viously incurred by the Secretary shall be credited to the fund
or account that was used to cover the costs. Amounts so credited
shall be merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the same condi
tions and limitations, as amounts in such fund or account.
(d) DESCRIPTION OF PROPERTY.-The exact acreage and legal
description of the parcels of real property to be conveyed under
this section shall be determined by surveys satisfactory to the
Secretary.
(e) ADDITIONAL TERMS AND CONDITIONS.-The Secretary may
the conveyances under this section as the Secretary considers appro
priate to protect the interests of the United States.
PART II-NAVY CONVEYANCES

SEC. 2841. LAND CONVEYANCE, NAVY PROPERTY, DIXON, CALIFORNIA.
(a) CONVEYANCE AUTHORIZED.-The Secretary of the Navy may
convey, without consideration, to the Housing Authority of the
City of DixO'n, California, (in this section referred to as the "Housing
Authority"), all right, title, and interest of the United States in
and to a parcel of real property, including improvements thereon,
that consists of approximately 40.41 acres located at 7290 Radio
Station Road in Dixon, California, and is currently used by the
Housing Authority as the site for the Fred H. Rehman Dixon
Migrant Center for the purpose ofpermitting the Housing Authority
to continue to provide suitable housing and support services to
migrant workers.
(b) PAYMENT OF COSTS OF CONVEYANCE.-(l) The Secretary
shall require the Housing Authority to cover costs to be incurred
by the Secretary after the date of the enactment of this Act, or
to reimburse the Secretary for costs incurred by the Secretary
after such date, to carry out the conveyance under subsection (a),
including any survey costs, costs related to environmental docu
mentation, and other administrative costs related to the conveyance.
If amounts are collected from the Housing Authority in advance
of the Secretary incurring the actual costs, and the amount collected
exceeds the costs actually incurred by the Secretary to carry out
H. R. 1588-339
the conveyance, the Secretary shall refund the excess amount to
the Housing Authority.
fund or account.
(c) EXEMPTION FROM FEDERAL SCREENING.-The conveyance
authorized by subsection (a) is exempt from the requirement to
screen the property for other Federal use pursuant to sections
2693 and 2696 of title 10, United States Code.
description of the property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
SEC. 2842. LAND CONVEYANCE, MARINE CORPS LOGISTICS BASE,
ALBANY, GEORGIA.
(a) CONVEYANCE AUTHORIZED.~The Secretary of the Navy may
convey through negotiated sale to the Preferred Development Group
Corporation, a corporation incorporated in the State of Georgia
and authorized to do business in the State of Georgia (in this
section referred to as the "Corporation"), all right, title, and interest
of the United States in and to a parcel of real property, including
any improvements thereon, consisting of approximately 10.44 acres
located at Turner Field Road and McAdams Road in Albany,
Georgia, for the purpose of permitting the Corporation to use the
property for economic development.
(b) CONDITIONS OF CONVEYANCE.-The conveyance under sub
section (a) shall be subject to the following conditions:
(1) That the Corporation accept the real property in its
condition at the time of the conveyance, commonly known as
conveyance "as is".
(2) 'That the Corporation bear all costs related to the use
and redevelopment of the real property.
(c) CONSIDERATION.-(l) As consideration for the conveyance
under subsection (a), the Corporation shall pay to the United States
an amount, determined pursuant to negotiations between the Sec
retary and the Corporation and based upon the fair market value
of the property (as determined pursuant to an appraisal acceptable
to the Secretary), that is appropriate for the property.
(2) The consideration received under this subsection shall be
deposited in the Department of Defense Base Closure Account 1990
established by section 2906 of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX. of Public Law
101-510; 10 U.S.C. 2687 note).
(d) PAYMENT OF COSTS OF CONVEYANCE.-(l) The Secretary
may require the Corporation to cover costs to be incurred by the
Secretary, or to reimburse the Secretary for costs incurred by the
Secretary, to carry out the conveyance under subsection (a),
including survey costs, costs related to environmental documenta
tion, and other administrative costs related to the conveyance.
H. R. 1588-340
If amounts are collected from the Corporation in advance of the
Secretary incurring the actual costs, and the amount collected
exceeds the costs actually incurred by the Secretary to carry out
the conveyance, the Secretary shall refund the excess amount to
the Corporation.
fund or account.
(e) EXEMPTION FROM FEDERAL SCREENING.-The conveyance
under subsection (a) is exempt from the requirement to screen
the property for other Federal use pursuant to sections 2693 and
2696 of title 10, United States Code.
m DESCRIPTION OF PROPERTY.-The exact acreage and legal
(g) ADDITIONAL TERMS AND CONDITIONS.-The Secretary may
appropriate to protect the interests ofthe United States.
SEC. 2843. LAND EXCHANGE, NAVAL AND MARINE CORPS RESERVE
CENTER, PORTLAND, OREGON.
convey to the United Parcel Service, Inc. (in this section referred
to as "UPS"), all right, title, and interest of the United States
in and to a parcel of real property, including improvements thereon,
consisting of approximately 14 acres in Portland, Oregon, and com
prising the Naval and Marine Corps Reserve Center for the purpose
of facilitating the expansion of the UPS main distribution complex
in Portland.
(b) PROPERTY RECEIVED IN EXCHANGE.-(1) As consideration
for the conveyance under subsection (a), UPS shall
(A) convey to the United States a parcel of real property
determined to be suitable by the Secretary; and
(B) design, construct, and convey to the United States
such replacement facilities on that property as the Secretary
considers appropriate. .
(2) The value of the real property and replacement facilities
received by the Secretary under this subsection shall be at least
equal to the fair market value of the real property conveyed under
subsection (a), as determined by the Secretary.
(c) PAYMENT OF COSTS OF CONVEYANCE.-(1) The Secretary
may require UPS to cover costs to be incurred by the Secretary,
or to reimburse the Secretary for costs incurred by the Secretary,
to carry out the conveyance under subsection (a), including survey
costs, costs related to environmental documentation, relocation
expenses incurred under subsection (b), and other administrative
costs related to the conveyance. If amounts are collected from UPS
in advance of the Secretary incurring the actual costs, and the
amount collected exceeds the costs actually incurred by the Sec
retary to carry out the conveyance, the Secretary shall refund
the excess amount to UPS.
H. R. 1588-341
fund or account.
(d) CONDITION OF CONVEYANCE.-The Secretary may not make
the conveyance authorized by subsection (a) until the Secretary
determines that the replacement facilities required by subsection
(b) are suitable and available for the relocation of the operations
of the Naval and Marine Corps Reserve Center.
(f) DESCRIPTION OF PROPERTY.-The exact acreage and legal
description of the property to be conveyed under this section shall
be determined by surveys satisfactory to the Secretary.
(g) ADDITIONAL TERMS AND CONDITIONS.-The Secretary may
the conveyances under this section as the Secretary considers appro
priate to protect the interests of the United States.
SEC. 2844. LAND CONVEYANCE, NAVAL RESERVE CENTER, ORANGE,
TEXAS.
convey to the City of Orange, Texas (in this section referred to
as the "City"), all right, title, and interest of the United States
in and to a parcel of unimproved real property consisting of approxi
mately 2.5 acres at Naval Reserve Center, Orange, Texas, for the
purpose of permitting the City to use the property for road construc
tion, economic development, and other public purposes.
(b) CONSIDERATION.-As consideration for the conveyance under
subsection (a), the City shall provide the United States, whether
by cash payment, in-kind contribution, or a combination thereof,
an amount that is not less than the fair market value, as determined
by the Secretary, of the property conveyed under such subsection.
(c) PAYMENT OF COSTS OF CONVEYANCE.-(l) The Secretary
may require the City to cover costs to be incurred by the Secretary,
costs, costs related to environmental documentation, and other
administrative costs related to the conveyance. If amounts are
collected from the City in advance of the Secretary incurring the
actual costs, and the amount collected exceeds the costs actually
incurred by the Secretary to carry out the conveyance, the Secretary
shall refund the excess amount to the City.
fund or account.
(d) EXEMPTION FROM FEDERAL SCREENING.-The conveyance
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(e) DESCRIPTION OF PROPERTY.-The exact acreage and legal
(f) ADDITIONAL TERMS AND CONDITIONS.-The Secretary may
SEC. 2845. LAND CONVEYANCE, PUGET SOUND NAVAL SHIPYARD,
BREMERTON, WASHINGTON.
convey to the City of Bremerton, Washington (in this section
referred to as the "City"), all right, title, and interest of the United
States in and to a parcel of real property, including any improve
ments thereon, consisting of approximately 2.8 acres at the eastern
end of the Puget Sound Naval Shipyard, Bremerton, Washington,
immediately adjacent to the Bremerton Transportation Center.
subsection (a), the City, directly or through an agreement with
another entity, shall replace administrative space on the parcel
to be conveyed by renovating for new occupancy approximately
7,500 square feet of existing space in Building 433 at Naval Station,
Bremerton, Washington, at no cost to the United States, in accord
ance with plans and specifications acceptable to the Secretary.
In lieu of any portion of such renovation, the Secretary may accept
other facility alteration or repair of not less than equal value.
(c) PAYMENT OF COSTS OF CONVEYANCE.--(l) The Secretary
shall require the City to cover costs to be incurred by the Secretary,
costs, costs related to environmental documentation, and other
administrative costs related to the conveyance. If amounts are
collected from the City in advance of the Secretary incurring the
actual costs, and the amount collected exceeds the costs actually
incurred by the Secretary to carry out the conveyance, the Secretary
shall refund the excess amount to the City.
fund or account.
(d) ENVIRONMENTAL CONDITIONs.-The Secretary may use
funds available in the Environmental Restoration Account, Navy
to carry out the environmental remediation of the real property
to be conveyed under subsection (a). Such environmental remedi
ation shall be conducted in a manner consistent with section 120
of the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9620), including the requirement
to consider the anticipated future land use of the parcel.
H. R. 1588--343
(f) DESCRIPTION OF PROPERTY.-The exact acreage and legal
(g) ADDITIONAL TERMS AND CONDlTlONS.-The Secretary may
PART III-AIR FORCE CONVEYANCES
SEC. 2851. LAND EXCHANGE, MARCH AIR RESERVE BASE, CALIFORNIA.
(a) EXCHANGE AUTHORIZED.-(I) The Secretary of the Army
may convey to the March Joint Powers Authority of Moreno Valley,
California (in this section referred to as the "JPA"), all right,
title, and interest of the United States in and to five parcels of
real property, including any improvements thereon, located at
March Air Reserve Base, California (former March Air Force Base),
and consisting of approximately 36.74 total acres.
(2) The Secretary of the Navy may convey to JPA all right,
title, and interest of the United States in and to two parcels of
real property, including any improvements thereon, located at
March Air Reserve Base and consisting of approximately 10.181
total acres.
(b) CONSIDERATlON.-As consideration for the conveyances
under subsection (a), JPA shall release any interest it may have
in two contiguous parcels of real property located at March Air
Reserve Base and consisting of approximately 20 acres and 28
acres, respectively.
(c) TRANSFER OF JURISDICTION.-The Secretary of the Air Force
shall transfer, without reimbursement, to the administrative juris
diction of the Secretary of the Army the parcels of real property
described in subsection (b).
description of the parcels of real property to be conveyed under
this section shall be determined by surveys satisfactory to the
Secretaries concerned.
(e) ADDITIONAL TERMS AND CONDITIONS.-The Secretaries con
cerned may require such additional terms and conditions in connec
tion with the conveyances under this section as the Secretaries
consider appropriate to protect the interests of the United States.
SEC. 2852. ACTIONS TO QUIET TITLE, FALLIN WATERS SUBDMSION,
EGLIN AIR FORCE BASE, FLORIDA.
(a) AUTHORITY TO QUIET TITLE.-(I) Notwithstanding the res
toration provisions under the heading "QUARTERMASTER CORPS" in
the Second Deficiency Appropriation Act, 1940 (Act of June 27,
1940; chapter 437; 54 Stat. 655), the Secretary of the Air Force
may take appropriate action to quiet title to tracts of land referred
to in paragraph (2) on, at, adjacent to, adjoining, or near Eglin
Air Force Base, Florida. The Secretary may take such action in
order to resolve encroachments upon private property by the United
States and upon property of the United States by private parties,
which resulted from reliance on inaccurate surveys.
(2) The tracts of land referred to in paragraph (1) are generally
described as south of United States Highway 98 and bisecting
the north/south section line of sections 13 and 14, township 2
south, range 25 west, located in the platted subdivision of Fallin
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Waters, Okaloosa County, Florida. The exact acreage and legal
description of such tracts of land shall be determined by a survey
satisfactory to the Secretary.
(b) AUTHORIZED ACTIONS.-In carrying out subsection (a),
appropriate action by the Secretary may include any of the fol
lowing:
(1) Disclaiming, on behalf of the United States, any intent
by the United States to acquire by prescription any property
at or in the vicinity of Eglin Air Force Base.
(2) Disposing of tracts of land owned by the United States.
(3) Acquiring tracts of land by purchase, by donation, or
by exchange for tracts of land owned by the United States
at or adjacent to Eglin Air Force Base.
(c) ACREAGE LIMITATIONS.-Individual tracts of land acquired
or conveyed by the Secretary under ~aragraph (2) or (3) of sub
section (b) may not exceed .10 acres. The total acreage so acquired
may not exceed two acres.
(d) CONSIDERATION.-Any conveyance by the Secretary under
this section may be made, at the discretion of the Secretary, without
consideration, or by exchange for tracts of land adjoining Eglin
Air Force Base in possession of private parties who mistakenly
believed that they had acquired title to such tracts.
SEC. 2853. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE
BASE, FLORIDA.
(a) MODIFICATION.-Public Law 91-347 (84 Stat. 447) is
amended
(1) in the fIrst section, by inserting "or for other public
purposes" before the period at the end; and
(2) in section 3(1)
(A) by inserting "or for other public purposes" after
"schools"; and
(B) by striking "such purpose" and inserting "such
a purpose".
(b) ALTERATION OF LEGAL INSTRUMENT.-The Secretary of the
Air Force shall execute and file in the appropriate office an amended
deed or other appropriate instrument effectuating the modifIcation
of the reversionary interest retained by the United States in connec
tion with the conveyance made pursuant to Public Law 91-347.
PART IV-OTHER CONVEYANCES

SEC. 2861. LAND CONVEYANCE, AIR FORCE AND ARMY EXCHANGE
SERVICE PROPERTY, DAlLAS, TEXAS.
(a) CONVEYANCE AUTHORIZED.-The Secretary of Defense may
authorize the Army and Air Force Exchange Service, a non
appropriated fund instrumentality of the United States, to convey,
by sale, all right, title, and interest of the United States in and
to a parcel of real property, including any improvements thereon,
consisting of approximately 7.5 acres located at 1515 Roundtable
Drive in Dallas, Texas.
subsection (a), the purchaser shall pay the United States, in a
single lump sum payment, an amount equal to the fair market
value of the real property, determined pursuant to an appraisal
acceptable to the Secretary.
H. R.1588-345
(c) TREATMENT OF CONSIDERATION.-Section 574(a) of title 40,
United States Code, shall apply to the consideration received under
subsection (b), except that 10 the application of such section, all
of the proceeds shall be credited to the Army and Air Force
Exchange Service.
The cost of the survey shall be borne by the purchaser.
SEC. 2862. LAND CONVEYANCE, UMNAK ISLAND, ALASKA.
(a) DEFINITIONs.-In this section
(1) The term "Aleut Corporation" means the regional cor
poration established under the Alaska Native Claims Settle
ment Act (43 U.S.C. 1601 et seq.) for the region in which
the Native Village of Nikolski, Alaska, is located.
(2) The term "Chaluka Corporation" means the village cor
poration established under the Alaska Native Claims Settle
ment Act (43 U.S.C. 1601 et seq.) for the Native Village of
Nikolski, Alaska.
(3) The term "former Nikolski Radio Relay Site" means
the portions of Tracts A, B, and C of Public Land Order 2374
that are surveyed as Tracts 37, 37A, 38, 39, 39A, and 40
of township 83 south, range 136 west, Seward meridian, Alaska,
and Tract B of United States Survey 4904, Alaska, except
(A) lots 1, 2, 5, 6, and 9 of Tract B of Amended
United States Survey 4904; and
(B) the Nikolski powerhouse land.
(4) The term "Nikolski powerhouse land" means the parcel
of land upon which is located the power generation building
for supplying power to the Native Village of Nikolski, the
boundaries of which are described generally as follows:
(A) Beginning at the point at which the southerly
boundary of Tract 39 of township 83 south, range 136
west, Seward meridian, Alaska, intersects the easterly
boundary of the road that connects the Native Village
of Nikolski and the airfield at Nikolski.
(B) Then meandering in a northeasterly direction along
the easterly boundary of that road until the road intersects
the westerly boundary of the road that connects Umnak
Lake and the airfield.
(C) Then meandering in a southerly direction along
the western boundary of that Umnak Lake road until that
western boundary intersects the southern boundary of such
Tract 39.
(D) Then proceeding eastward along the southern
boundary of such Tract 39 to the beginning point.
(5) The term "Phase I lands" means Tract 39 of township
83 south, range 136 west, Seward meridian, excluding the
Nikolski powerhouse land.
(6) The term "Phase II lands" means the portion of the
former Nikolski Radio Relay Site not conveyed as Phase I
lands.
H. R. 1588-346
(7) The term "Public Land Order 2374" refers to the Public
Land Order issued in 1961 under which the Department of
the Interior withdrew public domain lands in the vicinity of
the Native Village of Nikolski on Umnak Island, Alaska, for
use by the Department of the Air Force as a radio relay site.
(b) OFFER OF CONVEYANCE.-Subject to the requirements of
this section, the Chaluka Corporation is hereby offered ownership
of the surface estate in the former Nikolski Radio Relay Site on
Umnak Island, Alaska, and the Aleut Corporation is hereby offered
the subsurface estate of the former Nikolski Radio Relay Site,
in exchange for relinquishment by the Chaluka Corporation and
the Aleut Corporation of lot 1, section 14, township 81 south,
range 133 west, Seward meridian, Alaska.
(c) ACCEPTANCE AND RELINQUISHMENT.-(l) The Secretary of
the Interior shall convey the former Nikolski Radio Relay Site
as provided in subsection (d), if the Chaluka Corporation takes
the actions specified in paragraph (2) and the Aleut Corporation
takes the actions specified in paragraph (3).
(2) As a condition for conveyance under subsection (d), the
Chaluka Corporation shall notify the Secretary of the Interior,
within 180 days after the date of the enactment of this Act, that,
by means of a legally binding resolution of its board of directors
(accompanied by the written legal opinion of counsel as to the
legal sufficiency of the board of directors' action), the Chaluka
Corporation
(A) accepts the offer under subsection (b);
(B) confirms that the area surveyed by the Bureau of
Land Management for the purpose of fulfIlling the Chaluka
Corporation's final entitlements under section 12(a) and (b)
of the Alaska Native Claims Settlement Act (43 U.S.C. 16ll(a)
and (b», identified as Group Survey Number 773, accurately
represents the Chaluka Corporation's final, irrevocable Alaska
Native Claims Settlement Act priorities and entitlements,
unless any tract in Group Survey Number 773 is ultimately
not conveyed as the result of an appeal; and
(C) relinquishes lot 1, section 14, township 81 south, range
133 west, Seward meridian, Alaska, which will be charged
against-the Chaluka Corporation's final entitlement under sec
tion l2(b) of the Alaska Native Claims Settlement Act (43
U.S.C. l6U(b».
(3) As a condition for the conveyance under subsection (d),
the Aleut Corporation shall notify the Secretary of the Interior,
within 180 days after the date of the enactment of this Act, that,
by means of a legally binding resolution of its board of directors
(accompanied by the written legal opinion of counsel as to the
legal sufficiency of the board of directors' action), the Aleut
Corporation
(A) accepts the offer under subsection (b); and
(B) relinquishes all rights to lot 1, section 14, township
81 south, range 133 west, Seward meridian, Alaska.
(d) CONVEYANCE.-(I) Upon receipt from the Chaluka Corpora
tion and from the Aleut Corporation of 'their acceptances and
relinquishments under subsection (c), the Secretary of the Interior
shall convey to the Chaluka Corporation the surface estate, and
to the Aleut Corporation the subsurface estate, of
(A) Phase I lands as soon as practicable; and
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(B) each parcel of Phase II lands upon completion by the
Department of the Air Force of environmental restoration of
Phase II lands in accordance with applicable law.
(2) Upon conveyance of a parcel of land under this section,
the Secretary of the Interior shall terminate the corresponding
portion of Public Land Order 2374 relating to that parcel. Upon
conveyance of all Phase I and Phase II lands under this section,
the Secretary of the Interior shall terminate all remaining portions
of Public Land Order 2374 as it pertains to Umnak Island, Alaska.
(e) ENVIRONMENTAL RESTORATION.-Nothing in this section
affects the requirements and responsibilities of the United States
under section 120(h) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9620(h» or other applicable law. If a hazardous substance, as that
term is defined in section 101 of such Act (42 U.S.C. 9601), is
discovered on the Phase I lands subsequent to transfer, but the
hazardous substance was present on the lands before transfer and
the presence of the hazardous substance on the lands was not
the result of actions by the Chaluka Corporation or the Aleut
Corporation, the United States shall perform such response action
as is required by such Act with regard to that hazardous substance.
(f) TREATMENT AS ANCSA LANDS.-The conveyances made
under subsection (d) shall be considered to be conveyances under
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.),
and are subject to the provisions of that Act, except paragraphs
(3) and (4) of section 14(c) and section 17(b)(3) (43 U.S.C. 1613(c)
and 1616(b)(3».
(g) CONVEYANCE OF EXCLUDED TRACT B LOTs.-The Secretary
of the Interior shall convey, without consideration, an estate in
fee simple in
(1) each of lots 1, 2, 5, 6, and 9 of Tract B of Amended
United States Survey 4904 that is the subject of an Aleutian
Housing Authority mutual help occupancy agreement, to the
Aleutian Housing Authority; and
(2) the remainder of such lots to the occupants of such
lots as of the date of the enactment of this Act.
(h) CONVEYANCE OF NIKOLSKI POWERHOUSE LAND.-The Sec
retary of the Interior shall convey, without consideration, an estate
in fee simple in the Nikolski powerhouse land
(1) to the Indian Reorganization Act Tribal Government
for the Native Village of Nikolski, upon completion of the
environmental restoration referred to in subsection (k)(2), if
after the restoration the powerhouse continues to be located
on the Nikolski powerhouse land; or
(2) the surface estate to the Chaluka Corporation and the
subsurface estate to the Aleut Corporation, if after the restora
tion, the Nikolski powerhouse is no longer located on the
Nikolski powerhouse land.
(i) ACCESS.-(I) As a condition of the conveyance of land under
subsection (d), the Chaluka Corporation shall permit the United
States, and its agents, employees, and contractors, to have unre
stricted access to the airfield at Nikolski in perpetuity for site
investigation, restoration, remediation, and environmental moni
toring of the former Nikolski Radio Relay Site and reasonable
access to that airfield, and to other land conveyed under this section,
for any activity associated with management of lands owned by
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the United States and for other governmental purposes without
cost to the United States.
(2) The surface estate conveyed under subsection (d) shall be
subject to the public's right of access over Hill and Beach Streets,
located on Tract B of United States Survey 4904.
G) SURVEY REQUIREMENTs.-The Bureau of Land Management
is not required to conduct additional on-the-ground surveys as a
result of conveyances under this section. The patent to the Chaluka
Corporation may be based on protracted section lines and lotting
where relinquishment under subsection (c)(2)(C) results in a change
to the Chaluka Corporation's final boundaries. No additional
monumentation is required to complete those fmal boundaries.
(k) AUTHORIZATION OF APPROPRIATIONS; TRANSFER OF FUNDS.
(1) There are authorized to be appropriated to the Department
of the Interior and other appropriate agencies such sums as are
necessary to carry out this section.
(2) Using the funds identified for Nikolski Power House Clean
up under Budget Activity 4 on page 116 of the Conference Report
to accompany H.R. 2658 of the 108th Congress (House Report
108-283), the Secretary of the Air Force shall make a direct lump
sum payment, in an amount equal to $1,700,000, to the fund for
pollution cleanup managed by the Alaska Energy Authority for
the purpose of assisting the Authority to perfonn environmental
restoration of the Nikolski powerhouse land.
0) TERMINATION.-This section (other than subsection (g» shall
cease to be effective if
(1) either the Chaluka Corporation or the Aleut Corporation
affinnatively rejects the offer under subsection (b); or
(2) the legally binding resolutions required by paragraphs
(2) and (3) of subsection (c) are not submitted to the Secretary
of the Interior before the end of the 180-day period specified
in such paragraphs.
Subtitle E-Other Matters

SEC. 2871. AUTIlOWTY TO ACCEPT GUARANTEES WITII GIFTS IN
DEVELOPMENT OF MARINE CORPS HEWTAGE CENTER,
MARINE CORPS BASE, QUANTICO, VIRGINIA.
Section 2884 of the Military Construction Authorization Act
for Fiscal Year 2001 (division B 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-440» is amended
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new sub
section (f):
"(f) ACCEPl'ANCE OF GUARANTEES WITH GIFrs.-(l) The
authority available to the Secretary under section 6975 of title
10, United States Code, to accept a qualified guarantee for purposes
of projects at the Naval Academy shall be available to the Secretary
for the project to develop the Marine Corps Heritage Center.
"(2) The authority available to the Secretary under this sub
section shall expire on December 31,2006.".
H. R. 1588-349
SEC. 2872. REDESIGNATION OF YUMA TRAINING RANGE COMPLEX AS
BOB STUMP TRAINING RANGE COMPLEX.
The military aviation training facility located in southwestern
Arizona and southeastern California and known as the Yuma
Training Range Complex shall be known and designated as the
"Bob Stump Training Range Complex". Any reference to such
training range complex in any law, regulation, map, document,
record, or other paper of the United States shall be considered
to be a reference to the Bob Stump Training Range Complex.
SEC. 2873. FEASmWTY STUDY REGARDING CONVEYANCE OF LOU
ISIANA ARMY AMMUNITION PLANT, DOYLINE, LOUISIANA
(a) STUDY REQUIRED.-The Secretary of the Army shall conduct
a study of
(1) the feasibility of using the conveyance of the Louisiana
Army Ammunition Plant in Doyline, Louisiana, as a model
for a public-private partnership for the utilization and develop
ment of the Plant and similar parcels of real property; and
(2) the costs and benefits to the United States of such
a conveyance.
(b) ELEMENTS OF STUDY.-In conducting the study, the Sec
retary shall consider the following:
(1) The feasibility and advisability of entering into negotia
tions with the State of Louisiana or the Louisiana National
Guard for the conveyance of the Louisiana Army Ammunition
Plant.
(2) The means by which the conveyance of the Plant could
(A) facilitate the execution by the Department of
Defense of its national security mission; and
(B) facilitate the continued use of the Plant by the
Louisiana National Guard and the execution by the Lou
isiana National Guard of its national security mission.
(3) The evidence presented by the State of Louisiana of
the means by which the conveyance of the Plant could benefit
current and potential private sector and governmental tenants
of the Plant and facilitate the contribution of such tenants
to economic development in Northwestern Louisiana.
(4) -The amount and type of consideration that is appro
priate for the conveyance of the Plant.
(5) The evidence presented by the State of Louisiana of
the extent to which the conveyance of the Plant to a public
private partnership will contribute to economic growth in the
State of Louisiana, and in Northwestern Louisiana in par
ticular.
(6) The value of any mineral rights in the lands of the
Plant.
(7) The costs and benefits to the United States of sharing
revenues and rents paid by current and potential tenants of
the Plant as a result of the Armament Retooling and Manufac
turing Support Program.
(c) REPORT.-Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to the Committee
on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report containing the
results of the study and any other matters in light of the study
that the Secretary considers appropriate.
H. R. 1588-350
DIVISION C-DEPARTMENT OF ENERGY

NATIONAL SECURITY AUTHORIZA
TIONS AND OTHER AUTHORIZATIONS
TITLE XXXI-DEPARTMENT OF ENERGY
NATIONAL SECURITY PROGRAMS
Subtitle A-National Security Programs Authorizations
Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Sec. 3105. Energy supply.
Subtitle B-Program Authorizations, Restrictions, and Limitations
Sec. 3111. Termination of requirement for annual updates oflong-term plan for nu
clear weapons sto~pile life extension program.
Sec. 3112. Department of Energy project review groups not subject to Federal Advi
sory Committee Act by reason of inclusion of employees of Department
of Energy management and operating contractors.
Sec. 3113. Readiness posture for resumption by the United States of underground
nuclear weapons tests.
Sec. 3114. Technical base and facilities maintenance and recapitalization activities.
Sec. 3115. Continuation of processing, treatment, and disposition of legacy nuclear
materials.
Sec. 3116. Repeal of prohibition on research and development of low·yield nuclear
weapons.
Sec. 3117. Requirement for specific authorization of Congress for commencement of
engineering development phase or subsequent phase of Robust Nuclear
Earth Penetrator.
Subtitle C-Proliferation Matters
Sec. 3121. Semiannual financial reports on defense nuclear nonproliferation pro
grams.
Sec. 3122. Report on reduction of excessive unobligated or unexpended balances for
defense nuclear nonproliferation activities.
Sec. 3123. Study and report relating to weapons-grade uranium and plutonium of
thll independent states of the former Soviet Union.
Sec. 3124. Authority to use international nuclear materials protection and coopera
tion program funds outside the former Soviet Union.
Sec. 3125. Requirement for on-site managers.
Subtitle D-Other Matters
Sec. 3131. Performance of p_ersonnel security investigations of certain Department
of Energy and Nuclear Regulatory Commission employees in sensitive
programs.
Sec. 3132. Policy of Department of Energy regarding future defense environmental
management matters.
Sec. 3133. Inclusion in 2005 stockpile stewardship plan of certain information re
lating to stockpile stewardship criteria.
Sec. 3134. Progress reports on Energy Employees Occupational Illness Compensa
tion Program.
Sec. 3135. Report on integration activities of Department of Defense and Depart
ment of Energy with respect to Robust Nuclear Earth Penetrator.
Subtitle E-Consolidation of National Security Provisions
Sec. 3141. Transfer and consolidation of recurring and general provisions on De
partment of Energy national security programs.
H. R,1588-351
Subtitle A-National Security Programs
Authorizations
SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

(a) AUTHORIZATION OF APPROPRIATIONS.-Funds are hereby
authorized to be appropriated to the Department of Energy for
fiscal year 2004 for the activities of the National Nuclear Security
Administration in carrying out programs necessary for national
security in the amount of $8,877,347,000, to be allocated as follows:
(1) For weapons activities, $6,434,772,000.
(2) For defense nuclear nonproliferation activities,
$1,332,195,000.
(3) For naval reactors, $768,400,000.
(4) For the Office ofthe Administrator for Nuclear Security,
$341,980,000.
(b) AUTHORIZATION OF NEW PLANT PROJECTS.-From funds
referred to in subsection (a) that are available for carrying out
plant projects, the Secretary of Energy may carry out, for weapons
activities, the following new plant projects:
Project 04-D-101, test capabilities revitalization, Sandia
National Laboratories, Albuquerque, New Mexico, $36,450,000.
Project 04-D-102, exterior communications infrastructure
modernization, Sandia National Laboratories, Albuquerque,
New Mexico, $20,000,000.
Project 04-D-103, project engineering and design, various
locations, $2,000,000.
Project 04-D-125, chemistry and metallurgy facility
replacement project, Los Alamos National Laboratory, Los
Alamos, New Mexico, $20,500,000.
Project 04-D-126, Building 12-44 production cells upgrade,
Pantex plant, Amarillo, Texas, $8,780,000.
Project 04-D-127, cleaning and loading modifications,
Savannah River Site, Aiken, South Carolina, $2,750,000.
Project 04-D-128, TA-18 Mission relocation project, Los
Alamos National Laboratory, Los Alamos, New Mexico,
$8,820,000.
Project 04-0-203, facilities and infrastructure recapitaliza
tion program, project engineering and design, various locations,
$3,719,000.
Project 03-D-102, SM-43 replacement, Los Alamos
National Laboratory, Los Alamos, New Mexico, $38,000,000.
SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.
(a) AUTHORIZATION OF APPROPRlATIONS.-Funds are hereby
authorized to be appropriated to the Department of Energy for
fiscal year 2004 for environmental management activities in car
rying out programs necessary for national security in the amount
of $6,809,814,000, to be allocated as follows:
(1) For defense site acceleration completion, $5,814,635,000.
(2) For defense environmental services, $995,179,000.
(b) AUTHORIZATION OF NEW PLANT PROJECTS.-From funds
referred to in subsection (a) that are available for carrying out
plant projects, the Secretary of Energy may carry out, for defense
site acceleration completion, the following new plant projects:
Project 04-0-408, glass waste storage building #2,
Savannah River Site, Aiken, South Carolina, $20,259,000.
H. R. 1588-352
Project 04-D-414, project engineering and design, various
locations, $23,500,000.
Project 04-D-423, 3013 container surveillance capability
in 235-F, Savannah River Site, Aiken, South Carolina,
$1,134,000.
SEC. 3103. OTHER DEFENSE ACTMTIES.
Funds are hereby authorized to be appropriated to the Depart
ment of Energy for fiscal year 2004 for other defense activities
in carrying out programs necessary for national security in the
amount of $489,059,000.
SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.
ment of Energy for fiscal year 2004 for defense nuclear waste
disposal for payment to the Nuclear Waste Fund established in
section 302(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C.
10222(c» in the amount of $392,500,000.
SEC. 3105. ENERGY SUPPLY.
ment of Energy for fiscal year 2004 for energy supply activities
in carrying out programs necessary for national security in the
amount of $110,473,000.
Subtitle B-Program Authorizations,

Restrictions, and Limitations
SEC. 3111. TERMINATION OF REQUIREMENT FOR ANNUAL UPDATES
OF LONG·TERM PLAN FOR NUCLEAR WEAPONS STOCK
PILE LIFE EXTENSION PROGRAM.
Effective December 31, 2004, section 3133 of the National
Defense Authorization Act for Fiscal Year 2000 (Public Law 106
65; 113 Stat. 926; 42 U.S.C. 2121 note), as transferred and redesig
nated as section 4204 of the Atomic Energy Defense Act by section
3141(e)(5) of this Act, is further amended by striking subsections
(c) through (t).
SEC. 3112. DEPARTMENT OF ENERGY PROJECT REVIEW GROUPS NOT
SUBJECT TO FEDERAL ADVISORY COMMITrEE ACT BY
REASON OF INCLUSION OF EMPLOYEES OF DEPARTMENT
OF ENERGY MANAGEMENT AND OPERATING CONTRAC·
TORS.
An officer or employee of a management and operating con
tractor of the Department of Energy, when serving as a member
of a group reviewing or advising on matters related to anyone
or more management and operating contracts of the Department,
shall be treated as an officer or employee of the Department for
purposes of determining whether the group is an advisory committee
within the meaning of section 3 of the Federal Advisory Committee
Act (5 U.S.C. App.).
SEC. 3113. READINESS POSTURE FOR RESUMPTION BY THE UNITED
STATES OF UNDERGROUND NUCLEAR WEAPONS TESTS.
(a) READINESS POSTURE REQUIRED.-Commencing not later
than October 1, 2006, the Secretary of Energy shall achieve, and
thereafter maintain, a readiness posture of not more than 18 months
H. R. 1588-353
for resumption by the United States of underground tests of nuclear
weapons.
(b) DESCRIPTION OF REQUIREMENT.-For purposes of this sec
tion, a readiness posture of not more than 18 months for resumption
by the United States of underground tests of nuclear weapons
is achieved when the Department of Energy has the capability
to resume such tests, if directed by the President to resume such
tests, not later than 18 months after the date on which the President
so directs.
SEC. 3114. TECHNICAL BASE AND FACILITIES MAINTENANCE AND
RECAPITALIZATION ACTIVITIES.
(a) DEADLINE FOR INCLUSION OF PROJECTS IN FACILITIES AND
INFRASTRUCTURE RECAPITALIZATION PROGRAM.-(1) The Adminis
trator for Nuclear Security shall complete the selection of projects
for inclusion in the Facilities and Infrastructure Recapitalization
Program of the National Nuclear Security Administration not later
than December 31, 2004.
(2) No project may be included in the Facilities and Infrastruc
ture Recapitalization Program after December 31, 2004, unless
such project has been selected for inclusion in that program as
of that date.
(b) TERMINATION OF FACILITIES AND INFRASTRUCTURE
RECAPITALIZATION PROGRAM.-The Administrator shall terminate
the Facilities and Infrastructure Recapitalization Program not later
than September 30,2011.
(c) READINESS IN TECHNICAL BASE AND FACILITIES PROGRAM.
(1) Not later than September 30, 2004, the Administrator shall
submit to the congressional defense committees a report setting
forth guidelines on the conduct of the Readiness in Technical Base
and Facilities program of the National Nuclear Security Administra
tion.
(2) Such guidelines shall include the following:
(A) Criteria for the inclusion of projects in the program,
and for establishing priorities among projects included in the
program.
(B) Mechanisms for the management of facilities under
the program, including maintenance activities referred to in
subparagraph (C).
(C) A description of the scope of maintenance activities
under the program, including recurring maintenance, construc
tion of facilities, recapitalization of facilities, and decontamina
tion and decommissioning of facilities.
(3) Such guidelines shall ensure that the maintenance activities
referred to in paragraph (2)(C) are carried out in a timely and
efficient manner designed to avoid maintenance backlogs.
(d) OPERATIONS OF FACILITIES PROGRAM.-(1) The Adminis
trator shall continue the Operations of Facilities program of the
National Nuclear Security Administration as a subprogram within
the Readiness in Technical Base and Facilities program.
(2) The Deputy Administrator for Defense Programs shall des
ignate a single manager to be responsible for overseeing the oper
ations of the Operations of Facilities subprogram within the Readi
ness in Technical Base and Facilities program.
(3) For fiscal year 2005, and for each fiscal year thereafter,
the Secretary of Energy shall submit to the congressional defense
H. R. 1588-354
committees, together with the budget justification materials sub
mitted to Congress in support of the National Nuclear Security
Administration budget for that fiscal year (as submitted with the
budget of the President under section 1105(a) of title 31, United
States Code), a separate statement of the amounts requested for
such fiscal year for each element of the Operations of Facilities
subprogram, as follows:
(A) Maintenance.
(B) Facilities management and support.
(C) Utilities.
(D) Environment, safety, and health.
(E) Each other element of the subprogram.
SEC. 3115. CONTINUATION OF PROCESSING, TREATMENT, AND DIS·
POSITION OF LEGACY NUCLEAR MATERIALS.
(a) CONTINUATION OF H-CANYON FACILITY.-Subsection (a) of
section 3137 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-460) is amended
(1) by striking "F-canyon and H-canyon facilities" and
inserting "H-canyon facility"; and
(2) by striking "such facilities" and inserting "such facility".
(b) MODIFICATION OF LIMITATION ON USE OF FuNDS FOR
DECOMMISSIONING F-CANYON FACILITY.-Subsection (b) of such sec
tion is amended
(1) by striking "and the Defense Nuclear Facilities Safety
Board" and all that follows through "House of Representatives"
and inserting "submits to the Committee on Armed Services
of the Senate and the Committee on Armed Services of the
House of Representatives, and the Defense Nuclear Facilities
Safety Board,"; and
(2) by striking "the following:" and all that follows and
inserting "a report setting forth
"(1) an assessment whether or not all materials present
in the F-canyon facility as of the date of the report that
required stabilization have been safely stabilized as of that
date; .
"(2) an assessment whether or not the requirements
applicable to the F-canyon facility to meet the future needs
of the United States for fissile materials disposition can be
met through full use of the H-canyon facility at the Savannah
River Site; and
"(3) if it appears that one or more of the requirements
described in paragraph (2) cannot be met through full use
of the H-canyon facility
"(A) an identification by the Secretary of each such
requirement that cannot be met through full use of the
H-canyon facility; and
"(B) for each requirement so identified, the reasons
why such requirement cannot be met through full use
of the H-canyon facility and a description of the alternative
capability for fissile materials disposition that is needed
to meet such requirement.".
(c) REPEAL OF SUPERSEDED PLAN REQUIREMENT.-Subsection
(c) of such section is repealed.
H. R. 1588-355
SEC. 3116. REPEAL OF PROHIBITION ON RESEARCH AND DEVELOp·
MENT OF LOW·YIELD NUCLEAR WEAPONS.
(a) REpEAL.-Section 3136 of the National Defense Authoriza
tion Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1946;
42 U.S.C. 2121 note) is repealed.
(b) CONSTRUCTION.-Nothing in the repeal made by subsection
(a) shall be construed as authorizing the testing, acquisition, or
deployment of a low-yield nuclear weapon.
(c) LIMITATION.-The Secretary of Energy may not commence
the engineering development phase, or any subsequent phase, of
a low-yield nuclear weapon unless specifically authorized by Con
gress.
(d) REPORT.---(l) Not later than March 1, 2004, the Secretary
of State, the Secretary of Defense and the Secretary of Energy
shall jointly submit to Congress a report assessing whether or
not the repeal of section 3136 of the National Defense Authorization
Act for Fiscal Year 1994 will affect the ability of the United States
to achieve its nonproliferation objectives and whether or not any
changes in programs and activities would be required to achieve
those objectives.
(2) The report shall be submitted in unclassified form, but
may include a classified annex if necessary.
SEC. 3117. REQUIREMENT FOR SPECIFIC AUTHORIZATION OF CON·
GRESS FOR COMMENCEMENT OF ENGINEERING
DEVEWPMENT PHASE OR SUBSEQUENT PHASE OF
ROBUST NUCLEAR EARTH PENETRATOR.
The Secretary of Energy may not commence the engineering
development phase (phase 6.3) of the nuclear weapons development
process, or any subsequent phase, of a Robust Nuclear Earth Pene
trator weapon unless specifically authorized by Congress.
Subtitle C-Proliferation Matters

SEC. 3121. SEMIANNUAL FINANCIAL REPORTS ON DEFENSE NUCLEAR
NONPROLIFERATION PROGRAMS.
(a) IN GENERAL.-SubtitIe D of the National Nuclear Security
Administration Act is amended by inserting after section 3253
(50 U.S.C. 2453) the following new section:
"SEC. 3254. SEMIANNUAL FINANCIAL REPORTS ON DEFENSE NUCLEAR
"(a) SEMIANNUAL REPORTS REQUlRED.-The Administrator shall
submit to the Committees on Armed Services of the Senate and
the House of Representatives a semiannual report on the amounts
available for the defense nuclear nonproliferation programs of the
Administration. Each such report shall cover a half of a fiscal
year (in this section referred to as a 'fiscal half) and shall be
submitted not later than 30 days after the end of that fiscal half.
"(b) CONTENTS.-Each report for a fiscal half shall, for each
such defense nuclear nonproliferation program for which amounts
are available for the fiscal year that includes that fiscal half, set
forth the following:
"(1) The aggregate amount available for such program as
of the beginning of such fiscal half and, within such amount,
the uncommitted balances, the unobligated balances, and the
unexpended balances.
H. R. 1588-356
"(2) The aggregate amount newly made available for such

program during such fIscal half and, within such amount, the
amount made available by appropriations, by transfers, by
reprogrammings, and by other means.
"(3) The aggregate amount available for such program as
of the end of such fIscal half and, within such amount, the
uncommitted balances, the unobligated balances, and the unex
pended balances.".
(b) FIRST REPORT.-The fIrst report required to be submitted
by section 3254 of the National Nuclear Security Administration
Act (as added by subsection (a» shall be the report covering the
first half of fIscal year 2004.
SEC. 3122. REPORT ON REDUCTION OF EXCESSIVE UNOBLIGATED OR
UNEXPENDED BALANCES FOR DEFENSE NUCLEAR NON·
PROLIFERATION ACTIVITIES.
(a) CONTINGENT REQUIREMENT FOR REPORT.-If as of September
30, 2004, the aggregate amount unobligated, or obligated but not
expended, for defense nuclear nonproliferation activities from
amounts appropriated for such activities in fIscal year 2004 exceeds
an amount equal to 20 percent of the aggregate amount appro
priated for such activities in fiscal year 2004, the Administrator
for Nuclear Security shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a report
containing an aggressive plan to provide for the timely expenditure
of amounts remaining unobligated, or obligated but not expended.
(b) SUBMITTAL DATE.-If required to be submitted under sub
section (a), the submittal date fo~ the report under that subsection
shall be November 30, 2004.
SEC. 3123. STUDY AND REPORT RELATING TO WEAPONS·GRADE URA·
NIUM AND PLUTONIUM OF THE INDEPENDENT STATES
OF THE FORMER SOVIET UNION.
(a) STUDY REQUIRED.-The Secretary of Energy shall carry
out a study on the feasibility, costs, and benefIts of
(1) purchasing, from the independent states of the former
Soviet Union, weapons-grade uranium and plutonium excess
to the defense needs ofthose states; and
(2) 'safeguarding the uranium and plutonium so purchased
until rendered unusable for nuclear weapons.
(b) REPORT.-Not later than one year after the date of the
enactment of this Act, the Secretary shall submit to Congress
a report on the results of the study required by subsection (a).
SEC. 3124. AUTIIORITY TO USE INTERNATIONAL NUCLEAR MATERIALS
PROTECTION AND COOPERATION PROGRAM FUNDS OUT·
SIDE THE FORMER SOVIET UNION.
(a) AUTHORITY.-Subject to the provisions of this section, the
President may obligate and expend international nuclear materials
protection and cooperation program funds for a fIscal year, and
any such funds for a fIscal year before such fiscal year that remain
available for obligation, for a defense nuclear nonproliferation
project or activity outside the states of the former Soviet Union
If the President determines each of the following:
(1) That such project or activity will
(A)(i) assist the United States in the resolution of
a critical emerging proliferation threat; or
H. R. 1588-357
(ii) permit the United States to take advantage of
opportunities to achieve long-standing nonproliferation
goals; and
(B) be completed in a short period of time.
(2) That the Department of Energy is the entity of the
Federal Government that is most capable of carrying out such
project or activity.
(b) SCOPE OF AUTHORITY.-The authority in subsection (a) to
obligate and expend funds for a project or activity includes authority
to provide equipment, goods, and services for such project or activity
utilizing such funds, but does not include authority to provide
cash directly to such project or activity.
(c) LIMITATION ON TOTAL AMOUNT OF OBUGATION.-The
amount that may be obligated in a fiscal year under the authority
in subsection (a) may not exceed $50,000,000.
(d) LIMITATION ON AVAILABILITY OF FUNDS.-(l) The President
may not obligate funds for a project or activity under the authority
in subsection (a) until the President makes each determination
specified in that subsection with respect to such project or activity.
(2) Not later than 10 days after obligating funds under the
authority in subsection (a) for a project or activity, the President
shall notify Congress in writing of the determinations made under
paragraph (1) with respect to such project or activity, together
with- .
(A) a justification for such determinations; and
(B) a description of the scope and duration of such project
or activity.
(e) ADDITIONAL LIMITATIONS AND REQUIREMENTs.-Except as
otherwise provided in subsections (a) and (b), the exercise of the
authority in subsection (a) shall be subject to any requirement
or limitation under another provision oflaw as follows:
(1) Any requirement for prior notice or other reports to
Congress on the use of international nuclear materials protec
tion and cooperation program funds or on international nuclear
materials protection and cooperation program projects or activi
ties.
(2) Any limitation on the obligation or expenditure of inter
national nuclear materials protection and cooperation program
funds.
(3) Any limitation on international nuclear materials
protection and cooperation program projects or activities.
(f) FUNDS.-As used in this section, the term "international
nuclear materials protection and cooperation program funds" means
the funds appropriated pursuant to the authorization of appropria
tions in section 3101(a)(2) for such program.
SEC. 8126. REQUIREMENT FOR ON·SITE MANAGERS.
(a) ON-SITE MANAGER REQUIREMENT.-Before obligating any
defense nuclear nonproliferation funds for a project described in
subsection (b), the Secretary of Energy shall appoint one on-site
manager for that project. The manager shall be appointed from
among employees ofthe Federal Government.
(b) PROJECTS COVERED.-Subsection (a) applies to a project
(1) to be located in a state of the former Soviet Union;
(2) which involves dismantlement, destruction, or storage
facilities, or construction of a facility; and
H. R. 1588-358
(3) with respect to which the total contribution by the
Department of Energy is expected to exceed $50,000,000.
(c) DUTIES OF ON-SITE MANAGER.-The on-site manager
appointed under subsection (a) shall
(1) develop, in cooperation with representatives from
governments of countries participating in the project, a list
of those steps or activities critical to achieving the project's
disarmament or nonproliferation goals;
(2) establish a schedule for completing those steps or activi
ties;
(3) meet with all participants to seek aSS1!lrances that those
steps or activities are being completed on schedule; and
(4) suspend United States participation in a project when
a non-United States participant fails to complete a scheduled
step or activity on time, unless directed by the Secretary of
Energy to resume United States participation.
(d) AUTHORITY TO MANAGE MORE THAN ONE PRoJECT.-(l)
Subject to paragraph (2), an employee of the Federal Government
may serve as on-site manager for more than one project, including
projects at different locations.
(2) If such an employee serves as on-site manager for more
than one project in a fiscal year, the total cost of the projects
for that fiscal year may not exceed $150,000,000.
(e) STEPS OR ACTIVITIES.-Steps or activities referred to in
subsection (c)(l) are those activities that, if not completed, will
prevent a project from achieving its disarmament or nonprolifera
tion goals, including, at a minimum, the following:
(1) Identification and acquisition of permits (as defined
in subsection (g)).
(2) Verification that the items, substances, or capabilities
to be dismantled, secured, or otherwise modified are available
for dismantlement, securing, or modification.
(3) Timely provision of financial, personnel, management,
transportation, and other resources.
(f) NOTIFICATION TO CONGRESS.-In any case in which the
Secretary of Energy directs an on-site manager to resume United
States participation in a project under subsection (c)(4), the Sec
retary shall,concurrently notify Congress of such direction.
(g) PERMIT DEFINED.-In this section, the term "permit" means
any local or national permit for development, general construction,
environmental, land use, or other purposes that is required in
the state of the former Soviet Union in which the project is being
or is proposed to be carried out.
Ch) EFFECTIVE DATE.-This section shall take effect six months
after the date of the enactment of this Act.
Subtitle D-Other Matters

SEC. 3131. PERFORMANCE OF PERSONNEL SECURITY INVESTIGATIONS
OF CERTAIN DEPARTMENT OF ENERGY AND NUCLEAR
REGULATORY COMMISSION EMPLOYEES IN SENSITIVE
PROGRAMS.
(a) PERFORMANCE BY FBI AT DIRECTION OF DOE OR NRC.
Subsection f. of section 145 of the Atomic Energy Act of 1954
(42 U.S.C. 2165) is amended to read as follows:
H. R. 1588-359
"f. (1) Notwithstanding the provisions of subsections a., b.,
and c. of this section, but subject to subsection e. of this section,
a majority of the members of the Commission may direct that
an investigation required by such provisions on an individual
described in paragraph (2) be carried out by the Federal Bureau
of Investigation rather than by the Civil Service Commission.
"(2) An individual described in this paragraph is an individual
who is employed
"(A) in a program certified by a majority of the members
of the Commission to be of a high degree of importance or
sensitivity; or
"(B) in any other specific position certified by a majority
of the members of the Commission to be of a high degree
of importance or sensitivity.".
(b) REPEAL OF REQUIREMENT FOR PERFORMANCE BY FBI FOR
PERSONNEL SECURITY AND AsSURANCE PROGRAMs.-Subsection e.(2)
of such section is amended by striking "or a Personnel Security
and Assurance Program".
SEC. 8182. POLICY OF DEPARTMENT OF ENERGY REGARDING FUTURE
DEFENSE ENVIRONMENTAL MANAGEMENT MATl'ERS.
(a) POLICY REQUIRED.-<I) Commencing not later than October
1, 2005, the Secretary of Energy shall have in effect a policy
for carrying out future defense environmental management matters
of the Department of Energy. The policy shall specify each officer
within the Department with responsibilities for carrying out that
policy and, for each such officer, the nature and extent of those
responsibilities.
(2) In paragraph (1), the term "future defense environmental
management matter" means any environmental cleanup project,
decontamination and decommissioning project, waste management
project, or related activity that arises out of the activities of the
Department in carrying out programs necessary for national secu
rity and is to be commenced after the date of the enactment of
this Act. However, such term does not include any such project
or activity the responsibility for which has been assigned, as of
the date of the enactment of this Act, to the Environmental Manage
ment program of the Department.
(b) REFLECTION IN BUDGET.-For fiscal year 2006 and each
fiscal year thereafter, the Secretary shall ensure that the budget
justification materials submitted to Congress in support of the
Department of Energy budget for such fiscal year (as submitted
with the budget of the President under section 1l05(a) of title
31, United States Code) reflect the policy required by subsection
(a).
(c) CONSULTATION......:.The Secretary shall carry out this section
in consultation with the Administrator for Nuclear Security and
the Under Secretary of Energy for Energy, Science, and Environ
ment.
(d) REPoRT.-The Secretary shall include with the budget jus
tification materials submitted to Congress in support of the Depart
ment of Energy budget for fiscal year 2005 (as submitted with
the budget of the President under section 1l05(a) of title 31, United
States Code) a report on the policy that the Secretary plans to
have in effect under subsection (a) as of October 1, 2005. The
report shall specify the officers and responsibilities referred to in
subsection (a).
H. R. 1588-360
SEC. 3133. INCLUSION IN 2005 STOCKPILE STEWARDSHIP PLAN OF CER
TAIN INFORMATION RELATING TO STOCKPILE STEWARD·
smp CIDTERIA.
(a) INCLUSION IN 2005 STOCKPILE STEWARDSHIP PLAN.-In
submitting to Congress the updated version of the 2005 stockpile
stewardship plan, the Secretary of Energy shall include the matters
specified in subsection (b).
(b) MATTERS INCLUDED.-The matters referred to in subsection
(a) are the following:
(1) An update of any information or criteria described in
the report on stockpile stewardship criteria submitted under
section 4202 of the Atomic Energy Defense Act (as transferred
and redesignated by section 3161(e)(3) ofthis Act).
(2) A description of any additional information identified,
or criteria established, on matters covered by such section
4202 during the period beginning on the date of the submittal
of the report under such section 4202 and ending on the date
of the submittal of the updated version of the plan under
subsection (a) of this section.
(3) For each science-based tool developed by the Depart
ment of Energy during such period
(A) a description of the relationship of such science
based tool to the collection of information needed to deter
mine that the nuclear weapons stockpile is safe and reli
able; and
(B) a description of the criteria for judging whether
or not such science-based tool provides for the collection
of such information.
(c) 2005 STOCKPILE STEWARDSHIP PLAN DEFINED.-In this sec
tion, the term "2005 stockpile stewardship plan" means the updated
version of the plan for maintaining the nuclear weapons stockpile
developed under section 4203 of the Atomic Energy Defense Act
(as transferred and redesignated by section 3161(e)(4) of this Act)
that is required to be submitted to Congress not later than March
15,2005.
SEC. 3134. PROGRESS REPORTS ON ENERGY EMPLOYEES OCCUPA
TIONAL ILLNESS COMPENSATION PROGRAM.
(a) REPORT ON ACCESS TO INFORMATION FOR PERFORMANCE
OF RADIATION DOSE RECONSTRUCTIONS.--(l) Not later than 90 days
after the date of the enactment of this Act, the National Institute
for Occupational Safety and Health shall submit to Congress a
report on the ability of the Institute to obtain, in a timely, accurate,
and complete' manner, information necessary for the purpose of
carrying out radiation dose reconstructions under the Energy
Employees Occupational Illness Compensation Program Act of 2000
(42 U.S.C. 7384 et seq.), including information requested from any
element of the Department of Energy.
(2) The report shall include the following:
(A) An identification of each matter adversely affecting
the ability of the Institute to obtain information described
in paragraph (1) in a timely, accurate, and complete manner.
(B) For each facility with respect to which the Institute
is carrying out one or more dose reconstructions described
in paragraph (1)
(i) a specification of the total number of claims
requiring dose reconstruction;
H. R. 1588-361
(ii) a specification of the number of claims for which
dose reconstruction has been adversely affected by any
matter identified under paragraph (1); and
(iii) a specification of the number of claims requiring
dose reconstruction for which, because of any matter identi
fied under para~aph (1), dose reconstruction has not been
completed withm 150 days after the date on which the
Secretary of Labor submitted the claim to the Secretary
of Health and Human Services.
(b) REPORT ON DENIAL OF CLAIMs.-(I) Not later than 90 days
after the date of the enactment of this Act, the Secretary of Labor
shall submit to Congress a report on the denial of claims under
the Energy Employees Occupational lllness Compensation Program
Act of 2000 as ofthe date of such report.
(2) The report shall include for each facility with respect to
which the Secretary has received one or more claims under that
Act the following:
(A) The number of claims received with respect to such
facility that have been denied, including the percentage of
the total number of claims received with respect to such facility
that have been denied.
(B) The reasons for the denial of such claims, including
the number of claims denied for each such reason.
SEC. 3135. REPORT ON INTEGRATION ACTMTIES OF DEPARTMENT
OF DEFENSE AND DEPARTMENT OF ENERGY WITH
RESPECT TO ROBUST NUCLEAR EARTH PENETRATOR.
Section 1032 of the Bob Stump National Defense Authorization
Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2643;
10 U.S.C. 2358 note) is amended by adding at the end the following
new subsection:
"(e) INTEGRATION ACTMTIES IN FISCAL YEAR 2003 WITH
REsPECT TO RNEP.-The report under subsection (a) that is due
on April 1,2004, shall include, in addition to the elements specified
in subsection (b), a description of the integration and interoper
ability of the research and development, procurement, and other
activities undertaken during fiscal year 2003 by the Department
of Defense and the Department of Energy with respect to the
Robust Nuclear Earth Penetrator.".
Subtitle E-Consolidation of National

Security Provisions
SEC. 3141. TRANSFER AND CONSOLIDATION OF RECURRING AND GEN·
ERAL PROVISIONS ON DEPARTMENT OF ENERGY
NATIONAL SECURITY PROGRAMS.
(a) PuRPOSE.
(1) IN GENERAL.-The purpose of this section is to assemble
together, without substantive amendment but with technical
and conforming amendments of a non-substantive nature,
recurring and general provisions of law on Department of
Energy national security programs that remain in force in
order to consolidate and organize such provisions of law into
a single Act intended to comprise general provisions of law
on such programs.
H. R. 1588-362
(2) CONSTRUCTION OF TRANSFERS.-The transfer of a provi
sion of law by this section shall not be construed as amending,
altering, or otherwise modifying the substantive effect of such
provision.
(3) TREATMENT OF SATISFIED REQUlREMENTS.-Any require
ment in a provision of law transferred under this section
(including a requirement that an amendment to law be
executed) that has been fully satisfied in accordance with the
terms of such provision of law as of the date of transfer under
this section shall be treated as so fully satisfied, and shall
not be treated as being revived solely by reason of transfer
under this section.
(4) CLASSIFICATION.-The provisions of the Atomic Energy
Defense Act, as amended by this section, shall be classified
to the United States Code as a new chapter of title 50, United
States Code.
(b) DIVISION HEADING.-The Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314) is
amended by adding at the end the following new division heading:
"DIVISION D-ATOMIC ENERGY

DEFENSE PROVISIONS".
(c) SHORT TITLE; TABLE OF CONTENTS; DEFINITION.
(1) SHORT TITLE; TABLE OF CONTENTS.-Section 3601 of
the Atomic Energy Defense Act (title XXXVI of Public Law
107-314; 116 Stat. 2756), is
(A) transferred to the end of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003;
(B) redesignated as section 4001;
(C) inserted after the heading for division D of the
Bob Stump National Defense Authorization Act for Fiscal
Year 2003, as added by subsection (b); and
(D) amended
(i) by amending the heading to read as follows:
"SEC. 4001. SHORT TITLE; TABLE OF CONTENTS.";
(ii) by striking "This title" and inserting "(a) SHORT
TITLE.-This division"; and
(iii) by adding at the end the following:
"(b) TABLE OF CONTENTs.-The table of contents for this division
is as follows:
''DIVISION D-ATOMIC ENERGY DEFENSE PROVISIONS
"Sec. 4001. Short title; table of contents.
"Sec. 4002. Definition.
"TITLE XLI-oRGANlZATIONAL MATTERS
"Sec. 4101. Naval Nuclear Propulsion Program.
"Sec. 4102. Management structure for nuclear weapons production facilities and
nuclear weapons laboratories.
"Sec. 4103. Restriction on licensing requirement for certain defense activities and
facilities.
"TITLE XLII-NUCLEAR WEAPONS STOCKPll..E MATI'ERS
"Subtitle A-8tockpUe Stewardship and WeapoDs ProductioD
"Sec. 4201. Stockpile stewardship program.
H. R. 1588-363
"Sec. 4202. Report on stockpile stewardship criteria.
"Sec. 4203. Plan for stewardship, management, and certification of warheads in the
nuclear weapons stockpile.
"Sec. 4204. Nuclear weapons stockpile life ex.tension pr0/p:am.
"Sec. 4205. Annual assessments and reports to the President and Congress regard
ing the condition of the United States nuclear weapons stockpile.
"Sec. 4206. Form of certifications regarding the safety or reliability of the nuclear
weapons stockpile.
"Sec. 4207. Nuclear test ban readiness program.
"Sec. 4208. Study on nuclear test readiness postures.
"Sec. 4209. Requirements for specific request for new or modified nuclear weapons.
"Sec. 4210. Limitation on underground nuclear weapons tests.
"Sec. 4211. Testing of nuclear weapons.
"Sec. 4212. Manufacturing infrastructure for refabrication and certification of nu
clear weapons stockpile.
"Sec. 4213. Reports on critical difficulties at nuclear weapons laboratories and nu
clear weapons production plants.
"Subtitle B-Tritium
"Sec. 4231. Tritium production program.
"Sec. 4232. Tritium recycling.
"Sec. 4233. Tritium production.
"Sec. 4234. Modernization and consolidation of tritium recycling facilities.
"Sec. 4235. Procedures for meeting tritium production requirements.
"TITLE XLIll-PROLIFERATION MATI'ERS
"Sec. 4301. International coo~erative stockpile stewardship.
"Sec. 4302. Nonproliferation mitiatives and activities.
"Sec. 4303. Annual report on status of Nuclear Materials Protection, Control, and
Accounting Program.
"Sec. 4304. Nuclear Cities Initiative.
"Sec. 4305. Authority to conduct program relatin~ to fissile materials.
"Sec. 4306. Disposition of weapons-usable plutomum at Savannah River Site.
"Sec. 4306A. Disposition of surplus defense plutonium at Savannah River Site,
Aiken, South Carolina.
"TITLE XLIV-ENVIRONMENTAL RESTORATION AND WASTE
MANAGEMENT MATTERS
"Subtitle A-Environmental Restoration and Waste Management
"Sec. 4401. Defense Environmentsl Restoration and Waste Management Account.
"Sec. 4402. Requirement to develop future use plans for environmental manage
ment program.
"Sec. 4403. Integrated fissile materials management plan.
"Sec. 4404. Baseline environmental management reports.
"Sec. 4405. Accelerated schedule for environmental restoration and waste manage
ment activities.
"Sec. 4406. Defense waste cleanup technology program.
"Sec. 4407. Report on environmental restoration ex.penditures.
"Sec. 4408. Public participation in planning for environmental restoration and
waste management at defense nuclear facilities.
"Subtitle B-Closure of Facilities
"Sec. 4421. Projects to accelerate closure activities at defense nuclear facilities.
"Sec. 4422. Reports in connection with permanent closures of Department of En
ergy defense nuclear facilities.
"Subtitle C-Privatization
"Sec. 4431. Defense environmental management privatization projects.
"Subtitle I}-Hanford Reservation, Washington
"Sec. 4441. Safety measures for waste tanks at Hanford nuclear reservation.
"Sec. 4442. Hanford waste tank cleanup program reforms.
"Sec. 4443. River Protection Project.
"Sec. 4444. Funding for termination costs of River Protection Project, Richland,
Washington.
"Subtitle E-Savannah River Site, South Carolina
"Sec. 4451. Accelerated schedule for isolating high-level nuclear waste at the de
fense waste processing facility, Savannah River Site.
H. R. 1588-364
"Sec. 4452. Multi-year plan for clean-up.
"Sec. 4453. Continuation of processing, treatment, and disposal of legacy nuclear
materials.
"Sec. 4453A. Continuation of processing, treatment, and disposition of legacy nu
clear materials.
"Sec. 4453B. Continuation of processing, treatment, and disposition of legacy nu
clear materials.
"Sec. 4453C. Continuation of processing, treatment, and disposal of legacy nuclear
materials.
"Sec. 4453D. Continuation of processing, treatment, and disposal of legacy nuclear
materials.
"Sec. 4454. Limitation on use of funds for decommissioning F-eanyon facility.
"TITLE XLV-SAFEGUARDS AND SECURITY MATl'ERS
"Subtitle A-Safeguards and Security
"Sec. 4501. Prohibition on international inspections of DeJ?artment of Energy facili
ties unless protection of Restricted Data is certified.
"Sec. 4502. Restrictions on access to national laboratories by foreign visitors from
sensitive countries.
"Sec. 4503. Background investigations of certain personnel at Department of En
ergy facilities.
"Sec. 4504. D~artment of Energy counterintelligence polygraph program.
"Sec. 4504A. Counterintelligence polygraph program.
"Sec. 4505. Notice to congressional committees of certain security and counterintel
ligence failures within nuclear energy defense programs.
"Sec. 4506. Submittal of annual report on status of security functions at nuclear
weapons facilities.
"Sec. 4507. Report on counterintelligence and security practices at nationallabora
tories.
"Sec. 4508. Report on security vulnerabilities of national laboratory computers.
"Subtitle B-Classified Information
"Sec. 4521. Review of certain documents before declassification and release.
"Sec. 4522. Protection against inadvertent release of Restricted Data and Formerly
Restricted Data.
"Sec. 4523. Supplement to plan for declassification of Restricted Data and Formerly
Restricted Data.
"Sec. 4524. Protection of classified information during laboratory-to-laboratory ex
changes.
"Sec. 4525. Identification in budget materials of amounts for declassification activi
ties and limitation on expenditures for such activities.
"Subtitle C-Emergency Response
"Sec. 4541. Responsibility for Defense Programs Emergency Response Program.
"TITLE XLVI-PERSONNEL MATl'ERS
. "Subtitle A-Personnel Management
"Sec. 4601. Authority for appointment of certain scientific, engineering, and tech
nical personnel.
"Sec. 4602. Whistleblower protection program.
"Sec. 4603. Employee incentives for employees at closure project facilities.
"Sec. 4604. Department of Energy defense nuclear facilities workforce restructuring
plan.
"Sec. 4605. Authority to provide certificate of commendation to Department of En
ergy and contractor employees for exemplary service in stockpile stew
ardship and security.
"Subtitle B-Education and Training
"Sec. 4621. Executive management training in the Del?artment of Energy.
"Sec. 4622. Stockpile stewardship recruitment and traming program.
"Sec. 4623. Fellowship program for development of skills cntical to the Department
of Energy nuclear weapons complex.
"Subtitle C-Worker Safety
"Sec. 4641. Worker protection at nuclear weapons facilities.
"Sec. 4642. Safety oversight and enforcement at defense nuclear facilities.
"Sec. 4643. Program to monitor Department of Energy workers exposed to haz
ardous and radioactive substances.
"Sec. 4644. Programs for persons who ma~ have been exposed to radiation released
from Hanford nuclear reservatIon.
H. R. 1588-365
"TITLE XLVII-BUDGET AND FINANCIAL MANAGEMENT MATI'ERS
"Subtitle A-Recurring National Security Authorization Provisions
"Sec. 4701. Definitions.
"Sec. 4702. Reprogramming.
"Sec. 4703. Minor construction projects.
"Sec. 4704. Limits on constructIon projects.
"Sec. 4705. Fund transfer authority.
"Sec. 4706. Conceptual and construction design.
"Sec. 4707. Authority for emergency planning, design, and construction activities.
"Sec. 4708. Scope of authority to carry out plant projects.
"Sec. 4709. Availability of funds.
"Sec. 4710. Transfer of defense environmental management funds.
"Sec. 4711. Transfer of weapons activities funds.
"Sec. 4712. Funds available for all national security programs of the Department
of Energy.
"Subtitle B-Penalties
"Sec. 4721. Restriction on use of funds to pay penalties under environmental laws.
"Sec. 4722. Restriction on use of funds to pay penalties under Clean Air Act.
"Subtitle C-Other Matters
"Sec. 4731. Single request for authorization of appropriations for common defense
and security programs.
"TITLE XLVIII-ADMINISTRATIVE MATTERS
"Subtitle A-Contracts
"Sec. 4801. Costs not allowed under covered contracts.
"Sec. 4802. Prohibition and report on bonuses to contractors operating defense nu
clear facilities.
"Sec. 4803. Contractor liability for injury or loss of property arising out of atomic
weapons testing programs.
"Subtitle B-Research and Development
"Sec. 4811. Laboratory-directed research and development programs.
"Sec. 4812. Limitations on use of funds for laboratory directed research and devel
opment purposes.
"Sec. 4812A. Limitation on use of funds for certain research and development pur
poses.
"Sec. 4813. Critical technology partnerships.
"Sec. 4814. University-based research collaboration program.
"Subtitle C-Facilities Management
"Sec. 4831. Transfers of real property at certain Department of Energy facilities.
"Sec. 4832. Engineering and manufacturin~ research, development, and demonstra
tion by plant managers of certalO nuclear weapons production plants.
"Sec. 4833. Pilot program relating to use of proceeds of disposal or utilization of
oertain Department of Energy assets.
"Subtitle D-Other Matters
"Sec. 4851. Semiannual reports on local impact assistance.
"Sec. 4852. Payment of costs of operation and maintenance of infrastructure at Ne
vada Test Site.".
(2) DEFINITION.-Division D of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as amended
by this section, is further amended by adding at the end the
following new section:
"SEC. 4002. DEFINITION.
"In this division, the term 'congressional defense committees'
means
"(1) the Committee on Armed Services and the Committee
on Appropriations of the Senate; and
"(2) the Committee on Armed Services and the Committee
on Appropriations of the House of Representatives.".
(d) ORGANIZATIONAL MATI'ERS.
H. R. 1588-366
(1) TITLE HEADING.-Division D of the Bob Stump National
following:
"TITLE XLI-ORGANIZATIONAL
MATTERS".
(2) NAVAL NUCLEAR PROPULSION PROGRAM.-Section 1634
of the Department of Defense Authorization Act, 1985 (Public
Law 98-525; 98 Stat. 2649), is
(A) transferred to title XLI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as added
by paragraph (1);
(B) inserted after the title heading for such title, as
so added; and
(C) amended
(i) by striking the section heading and inserting
the following new section heading:
"SEC. 4101. NAVAL NUCLEAR PROPULSION PROGRAM.";
and
(ii) by striking "SEC. 1634.".
(3) MANAGEMENT STRUCTURE FOR FACILITIES AND LABORA
TORIES.-Section 3140 of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2833),
is
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(C) inserted after section 4101, as added by paragraph
(2); and
(D) amended in subsection (d)(2), by striking "120 days
after the date of the enactment of this Act," and inserting
"January 21,1997,".
(4) RESTRICTION ON LICENSING REQUIREMENTS FOR CERTAIN
ACTIVIT1ES AND FACILITIES.-Section 210 of the Department of
Energy National Security and Military Applications of Nuclear
Energy Authorization Act of 1981 (Public Law 96-540; 94 Stat.
3202), is
(B) inserted after section 4102, as added by paragraph
(3); and
(C) amended
"SEC. 4103. RESTRICTION ON LICENSING REQUIREMENT FOR CERTAIN
DEFENSE ACTIVITIES AND FACILITIES.";
(ii) by striking "SEC. 210."; and
(iii) by striking ''this or any other Act" and
inserting "the Department of Energy National Security
and Military Applications of Nuclear Energy
----------------------
H. R. 1588-367
Authorization Act of 1981 (Public Law 96-540) or any
other Act".
(e) NUCLEAR WEAPONS STOCKPILE MATTERS.
(1) HEADINGS.-Division D of the Bob Stump National
following new headings:
"TITLE XLII-NUCLEAR WEAPONS
STOCKPILE MATTERS
"Subtitle A-Stockpile Stewardship and

Weapons Production".
(2) STOCKPILE STEWARDSHIP PROGRAM.-Section 3138 of the
Law 103-160; 107 Stat. 1946), as amended by section 3152(e)
of the National Defense Authorization Act for Fiscal Year 1998
(Public Law 105-85; 111 Stat. 2042), is
(A) transferred to title XLII of the Bob Stump National
by paragraph (1);
(B) redesignated as section 4201; and
(C) inserted after the heading for subtitle A of such
title, as so added.
(3) STOCKPILE STEWARDSHIP CRITERIA.-Section 3158 of the
Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999 (Public Law 105-261; 112 Stat. 2257), as amended,
is
(2).
(4) . PLAN FOR STEWARDSHIP, MANAGEMENT, AND CERTIFI
CATION OF WARHEADS IN STOCKPILE.-Section 3151 of the
Law 105-85; 111 Stat. 2041), is
(3).
(5) STOCKPILE LIFE EXTENSION PROGRAM.-Section 3133 of
the National Defense Authorization Act for Fiscal Year 2000
(4); and
H. R. 1588-368
CD) amended in subsection (c)(l) by striking "the date
of the enactment of this Act" and inserting "October 5,
1999".
(6) ANNuAL ASSESSMENTS AND REPORTS ON CONDITION OF
STOCKPILE.-Section 3141 of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314;
116 Stat. 2730), is
(A) transferred to title XLII of such Act, as amended
by this subsection;
(5); and
(0) amended in subsection (d)(3)(B) by striking "section
3137 of the National Defense Authorization Act for Fiscal
Year 1996 (42 U.S.C. 2121 note)" and inserting "section
4212".
(7) FORM OF CERTAIN CERTIFICATIONS REGARDING STOCK·
PILE.-Section 3194 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-481), is
(6).
(8) NUCLEAR TEST BAN READINESS PROGRAM.-Section 1436
of the National Defense Authorization Act, Fiscal Year 1989
(7); and
(D) amended in the section heading by adding a period
at the end.
(9) STUDY ON NUCLEAR TEST READINESS POSTURES.-Section
3152 of the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104-106; 110 Stat. 623), as amended by
section 3192 of the Floyd D. Spence National Defense
~~ .
(10) REQUIREMENTS FOR REQUESTS FOR NEW OR MODIFIED
NUCLEAR WEAPONS.-8ection 3143 of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003 (Public Law
107-314; 116 Stat. 2733), is
(A) transferred to title XLII of such Act, as amended
by this subsection;
H. R. 1588-369
(9).
(11) LIMITATION ON UNDERGROUND NUCLEAR WEAPONS
TESTS.-Subsection (fJ of section 507 of the Energy and Water
Development Appropriations Act, 1993 (Public Law 102-337;
106 Stat. 1345), is
(10); and
(C) amended
(i) by inserting before the text the following new
section heading:
"SEC. 4210. LIMITATION ON UNDERGROUND NUCLEAR WEAPONS
TESTS.";
and
(ii) by striking "(fJ".
(12) TESTING OF NUCLEAR WEAPONS.-Section 3137 of the
Law 103-160; 107 Stat. 1946), is
(11); and
(D) amended
(i) in subsection (a), by inserting "of the National
Defense Authorization Act for Fiscal Year 1994 (Public
Law 103-160)" after "section 3101(a)(2)"; and
(ii) in subsection (b), by striking "this Act" and
inserting "the National Defense Authorization Act for
Fiscal Year 1994".
(13) MANuFACTURING INFRASTRUCTURE FOR STOCKPILE.
Section 3137 of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 620), as
amended by section 3132 of the National Defense Authorization
is
(12); and
(D) amended in subsection (d) by inserting "of the
National Defense Authorization Act for Fiscal Year 1996
(Public Law 104-106)" after "section 310l(b)".
(14) REpORTS ON CRITICAL DIFFICULTIES AT LABORATORIES
AND PLANTs.-8ection 3159 of the National Defense Authoriza
tion Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat.
2842), as amended by section 1305 of the National Defense
111 Stat. 1954) and section 3163 of the National Defense
H. R. 1588-370
Authorization Act for Fiscal Year 2000 (Public Law 106--65;
113 Stat. 944), is
(13).
(15) SUBTITLE HEADING ON TRITIUM.-Title XLII of the Bob
Stump National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection, is further amended by adding
at the end the following new subtitle heading:
"Subtitle B-Tritium".
(16) TRITIUM PRODUCTION PROGRAM.-Section 3133 of the
Law 104-106; 110 Stat. 618), is
(A) transferred to title XLII ofthe Bob Stump National
(C) inserted after the heading for subtitle B of such
title XLII, as added by paragraph (15); and
(D) amended
(i) by striking "the date of the enactment of this
Act" each place it appears and inserting "February
10,1996";and
(ii) in subsection (b), by inserting "of the National
Law 104-106)" after "section 3101".
(17) TRITIUM RECYCLING.-Section 3136 of the National
104-106; 110 Stat. 620), is
. (C) inserted after section 4231, as added by paragraph
(16).
(18) TRITIUM PRODUCTION.-Subsections (c) and (d) of sec
tion 3133 of the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104-201; 110 Stat. 2830) are
(17); and
(C) amended
section heading:
"SEC. 4233. TRITIUM PRODUCTION.";
(ii) by redesignating such subsections as sub
sections (a) and (b), respectively; and
(iii) in subsection (a), as so redesignated, by
inserting "of Energy" after "The Secretary".
H. R. 1588-371
(19) MODERNIZATION AND CONSOLIDATION OF TRITIUM
RECYCLING FACILITIES.-Section 3134 of the National Defense
110 Stat. 2830), is
(18); and
(D) amended in subsection (b) by inserting "of the
(Public Law 104-201)" after "section 3101".
(20) PROCEDURES FOR MEETING TRITIUM PRODUCTION
REQUIREMENTs.-Section 3134 of the National Defense
113 Stat. 927), is
(19).
CD PROLIFERATION MA'ITERS.
(1) TITLE HEADING.-Division D of the Bob Stump National
following new title heading:
"TITLE XLIII-PROLIFERATION
MATTERS".
(2) INTERNATIONAL COOPERATIVE STOCKPILE STEWARD

SHIP.-Section 3133 of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2036),
as amended by sections 1069 and 3131 of the Strom Thurmond
Law 105-261; 112 Stat. 2136, 2246), is
(A) transferred to title XLIII of the Bob Stump National
Defense Autporization Act for Fiscal Year 2003, as added
by paragraph (1); .
(C) inserted after the heading for such title, as so
added; and
(D) amended in subsection (b)(3) by striking "this Act"
and inserting "the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105-85)".
(3) NONPROLIFERATION INITIATIVES AND ACTIVITIES.-Sec
Year 2000 (Public Law 106-65; 113 Stat. 927), is
(2); and
H. R. 1588-372
(D) amended in subsection (b)(I) by striking "this title"
and inserting "title XXXI of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106
65)".
(4) ANNuAL REPORT ON MATERIALS PROTECTION, CONTROL,
AND ACCOUNTING PROGRAM.-Section 3171 of the Floyd D.
Spence National Defense Authorization Act for Fiscal Year
2001 (as enacted into law by Public Law 106-398; 114 Stat.
1645A-475), is
(3); and
(D) amended in subsection (c)(I) by striking "this Act"
and inserting "the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106-398)".
(5) NUCLEAR CITIES INITIATNE.-8ection 3172 of the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
1645A-476), is
(4).
(6) PROGRAMS ON FISSILE MATERIALS.-Section 3131 of the
Law 104-106; 110 Stat. 617), as amended by section 3152
of the Bob Stump National Defense Authorization Act for Fiscal
'(C) inserted after section 4304, as added by paragraph
(5),
(7) DISPOSITION OF PLUTONIUM.
(A) DISPOSITION OF WEAPONS USABLE PLUTONIUM.-Sec
tion 3182 of the Bob Stump National Defense Authorization
Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat.
2747), is
(i) transferred to title XLIII of such Act, as
(ii) redesignated as section 4306; and
(iii) inserted after section 4305, as added by para
graph (6).
(B) DISPOSITION OF SURPLUS DEFENSE PLUTONIUM.
Section 3155 of the National Defense Authorization Act
is
(i) transferred to title XLIII of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
H. R. 1588-373
(ii) redesignated as section 4306A; and
(iii) inserted after section 4306, as added by
subparagraph (A).
(g) ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT
MATTERS.
"TITLE XLIV-ENVIRONMENTAL RES

TORATION AND WASTE MANAGEMENT
MATTERS
"Subtitle A-Environmental Restoration
and Waste Management".
(2) DEFENSE ENVIRONMENTAL RESTORATION AND WASTE
MANAGEMENT ACCOUNT.-Section 3134 of the National Defense
Authorization Act for Fiscal Years 1992 and 1993 (Public Law
102-190; 105 Stat. 1575), is
(A) transferred to title XLIV of the Bob Stump National
by paragraph (1);
title, as so added.
(3) FUTURE USE PLANS FOR ENVIRONMENTAL MANAGEMENT
PROGRAM.-Section 3153 of the National Defense Authorization
is
, (B) redesignated as section 4402;
(2); and
(D) amended
(i) in subsection (d), by striking "the date of the
enactment of this Act" and inserting "September 23,
1996,"; and
(ii) in subsection (h)(l), by striking "the date of
the enactment of this Act" and inserting "September
23,1996".
(4) INTEGRATED FISSILE MATERIALS MANAGEMENT PLAN.
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 948), is
(3).
H. R.1588-374
(5) BASELINE ENVIRONMENTAL MANAGEMENT REPORTS.-Sec
Year 1994 (Public Law 103-160; 107 Stat. 1950), as amended
by section 3160 of the National Defense Authorization Act
section 3152 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2839), and
(A) transferred to title XLN ofthe Bob Stump National
(4).
(6) ACCELERATED SCHEDULE FOR ENVIRONMENTAL RESTORA
TION AND WASTE MANAGEMENT.-Section 3156 of the National
104-106; 110 Stat. 625), is
(A) transferred to title XLN of the Bob Stump National
(5); and
(0) amended in subsection (b)(2) by inserting before
the period the following: ", the predecessor provision to
section 4404 of this Act".
(7) DEFENSE WASTE CLEANUP TECHNOLOGY PROGRAM.-Sec
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1679),
is
(6);-and
at the end.
(8) REPORT ON ENVIRONMENTAL RESTORATION EXPENDI
TURES.-Section 3134 of the National Defense AuthOrization
is
(7); and
(0) amended in the section heading by adding a period
at the end.
(9) PuBLIC PARTICIPATION IN PLANNING FOR ENVIRONMENTAL
RESTORATION AND WASTE MANAGEMENT.-Subsection (e) of sec
H. R. 1588--375

(8); and
(C) amended
section heading:
"SEC. 4408. PUBLIC PARTICIPATION IN PLANNING FOR ENVIRON·
MENTAL RESTORATION AND WASTE MANAGEMENT AT
DEFENSE NUCLEAR FACILITIES.";
and
(ii) by striking "(e) PuBLIC PARTICIPATION IN PLAN
NING.-".
(10) SUBTITLE HEADING ON CLOSURE OF FACILITIES.-Title
XLIV of the Bob Stump National Defense Authorization Act
for Fiscal Year 2003, as amended by this subsection, is further
amended by adding at the end the following new subtitle
heading:
"Subtitle B-Closure of Facilities".

(11) PROJECTS TO ACCELERATE CLOSURE ACTMTIES AT
DEFENSE NUCLEAR FACILITIES.-Section 3143 of the National
104-201; 110 Stat. 2836), is- .
amended by this SUbsection;
title, as added by paragraph (10); and
(D) amended in subsection (i) by striking "the expira
tion of the 15-year period beginning on the date of the
enactment of this Act" and inserting "September 23, 2011".
(12) REpORTS IN CONNECTION WITH PERMANENT CLOSURE
OF DEFENSE NUCLEAR FACILITIES.-Section 3156 of the National
Defense Authorization Act for Fiscal Years 1990 and 1991
(11); and
at the end.
(13) SUBTITLE HEADING ON PRIVATIZATION.-Title XLIV of
the Bob Stump National Defense Authorization Act for Fiscal
Year 2003, as amended by this subsection, is further amended
by adding at the end the following new subtitle heading:
H. R. 1588-376
"Subtitle C-Privatization".
(14) DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION
PROJECTS.-Section 3132 of the National Defense Authorization
is
(C) inserted after the heading for subtitle C of such
(D) amended
(i) in subsections (a), (c)(l)(B)(i), and (d), by
inserting "of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105-85)" after "sec
tion 3102(i)"; and
(ii) in subsections (c)(l)(B)(ii) and (f), by striking
"the date of enactment of this Act" and inserting
"November 18,1997".
(15) SUBTITLE HEADING ON HANFORD RESERVATION.-Title
XLIV of the Bob Stump National Defense Authorization Act
heading:
"Subtitle D-Hanford Reservation,
Washington".
(16) SAFETY MEASURES FOR WASTE TANKS.-Section 3137

'(C) inserted after the heading for subtitle D of such
(D) amended
(i) in the section heading, by adding a period at
the end;
(ii) in subsection (a), by striking ''Within 90 days
after the date of the enactment of this Act," and
inserting "Not later than February 3, 1991,";
(iii) in subsection (b), by striking ''Within 120 days
inserting "Not later than March 5, 1991,";
(iv) in subsection (c), by striking "Beginning 120
days after the date of the enactment of this Act,"
and inserting "Beginning March 5,1991,"; and
(v) in subsection (d), by striking ''Within six
months after the date of the enactment of this Act,"
and inserting "Not later than May 5,1991,".
(17) WASTE TANK CLEANUP PROGRAM.-Section 3139 of the
Strom Thurmond National Defense Authorization Act for Fiscal
H. R. 1588-377
Year 1999 (Public Law 105-261; 112 Stat. 2250), as amended
by section 3141 of the Floyd D. Spence National Defense
by Public Law 106-398; 114 Stat. 1654A-463) and section
2002 (Public Law 107-107; 115 Stat. 1368), is
(16); and
(D) amended in subsection (d) by striking "30· days
after the date of the enactment of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001,"
and inserting "November 29,2000,".
(18) RIVER PROTECTION PROJECT.-8ubsection (a) of section
3141 of the Floyd D. Spence National Defense Authorization
Act for Fiscal Year 2001 (as enacted into law by Public Law
106--898; 114 Stat. 1654A-462), is
(17); and
(C) amended
section heading:
"SEC. 4443. RIVER PROTECTION PROJECT.";
and
(ii) by striking "(a) REDESIGNATION OF PROJECT.-".
(19) FUNDING FOR TERMINATION COSTS OF RIVER PROTEC
TION PROJECT.-8ection 3131 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-454), is
. (A) transferred to title XLIV of the Bob Stump National
(18); and
(D) amended
(i) by striking "section 3141" and inserting "section
4443'" and
(ii) by striking "the date of the enactment of this
Act" and inserting "October 30,2000".
(20) SUBTITLE HEADING ON SAVANNAH RIVER SITE, SOUTH
CAROLINA.-Title XLIV of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003, as amended by this
subsection, is further amended by adding at the end the fol
lowing new subtitle heading:
H. R. 1588-378
"Subtitle E-Savannah River Site, South

Carolina".
(21) ACCELERATED SCHEDULE FOR ISOLATING HIGH-LEVEL
NUCLEAR WASTE AT DEFENSE WASTE PROCESSING FACILITY.
(B) redesignated as 4451; and
(C) inserted after the heading for subtitle E of such
title, as added by paragraph (20).
(22) MULTI-YEAR PLAN FOR CLEAN-UP.-Subsection (e) of
(21); and
(C) amended
section heading:
"SEC. 4452. MULTI·YEAR PLAN FOR CLEAN·up.";
and
(ii) by striking "(e) MULTI·YEAR PLAN FOR CLEAN
UP AT SAVANNAH RIVER SITE.-The Secretary" and
inserting "The Secretary of Energy".
(23) CONTINUATION OF PROCESSING, TREATMENT, AND DIS
POSAL OF LEGACY NUCLEAR MATERIALS.
(A) FISCAL YEAR 2ool.-Subsection (a) of section 3137
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-460), is
(i) transferred to title XLIV of the Bob Stump
. National Defense Authorization Act for Fiscal Year
(ii) inserted after section 4452, as added by para
graph (22); and
(iii) amended
(I) by inserting before the text the following
new section heading:
"SEC. 4453. CONTINUATION OF PROCESSING, TREATMENT, AND DIS
POSAL OF LEGACY NUCLEAR MATERIALS.";
and
(II) by striking "(a) CONTINUATION.-".
(B) FISCAL YEAR 2ooo.-Section 3132 of the National
Law 106-65; 113 Stat. 924), is
(i) transferred to title XLIV of the Bob Stump
(ii) redesignated as section 4453A; and
H. R. 1588-379

subparagraph (A).
(C) FISCAL YEAR 1999.~ection 3135 of the Strom
Thurmond National Defense Authorization Act for Fiscal
(i) transferred to title XLN of the Bob Stump
(ii) redesignated as section 4453B; and
(iii) inserted after section 4453A, as added by
subparagraph (B).
(D) FISCAL YEAR 1998.-Subsection (b) of section 3136
of the National Defense Authorization Act for Fiscal Year
(ii) inserted after section 4453B, as added by
subparagraph (C); and
(iii) amended
"SEC. 4453C. CONTINUATION OF PROCESSING, TREATMENT, AND DIS
and
(II) by striking "(b) REQUIREMENT FOR CON
TINUING OPERATIONS AT SAVANNAH RIVER
SITE.-".
(E) FISCAL YEAR 1997.-Subsection (f) of section 3142
of the National Defense Authorization Act for Fiscal Year
(ii) inserted after section 4453C, as added by
subparagraph (D); and
(iii) amended
"SEC. 4453D. CONTINUATION OF PROCESSING, TREATMENT, AND DIS·
(II) by striking "(f) REQUIREMENT FOR CON
TINUING OPERATIONS AT SAVANNAH RIVER SITE.
The Secretary" and inserting "The Secretary of
Energy"; and
(III) by striking "subsection (e)" and inserting
"section 4452".
(24) LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING
F-eANYON FACILITY.~ubsection (b) of section 3137 of the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
1654A-460), is
(A) transferred to title XLN of the Bob Stump National
H. R. 1588-380
(B) inserted after section 4453D, as added by para

graph (23)(E); and
(C) amended
section heading:
"SEC. 4454. LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING
F-CANYON FACILITY.";
(ii) by striking "(b) LIMITATION ON USE OF FUNDS
FOR DECOMMISSIONING F-CANYON FACILITY.-";
(iii) by striking "this or any other Act" and
inserting "the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted
into law by Public Law 106-398) or any other Act";
and
(iv) by striking "the Secretary" in the matter pre
ceding paragraph (1) and inserting "the Secretary of
Energy' .
(h) SAFEGUARDS AND SECURITY MATI'ERS.
"TITLE XLV-SAFEGUARDS AND

SECURITY MATTERS
"Subtitle A-Safeguards and Security".
(2) PROHIBITION ON INTERNATIONAL INSPECTIONS OF FACILI
TIES WITHOUT PROTECTION OF RESTRICTED DATA.-Section 3154
(A) transferred to title XLV of the Bob Stump National
by paragraph (1);
, (C) inserted after the heading for subtitle A of such
title, as so added; and
(D) amended
(i) by striking "(1) The" and inserting "The"; and
(ii) by striking "(2) For purposes of paragraph (1),"
and inserting "(c) RESTRICTED DATA DEFINED.-In this
section,".
(3) RESTRICTIONS ON ACCESS TO LABORATORIES BY FOREIGN
VISITORS FROM SENSITIVE COUNTRIEs.-Section 3146 of the
Law 106-65; 113 Stat. 935), is
(2); and
(D) amended
(i) in subsection (b)(2)
H. R. 1588-381
(l) in the matter preceding subparagraph (A),
by striking "30 days after the date of the enact
ment of this Act" and inserting "on November 4,
1999,"; and
(II) in subparagraph (A), by striking "The date
that is 90 days after the date of the enactment
of this Act" and inserting "January 3, 2000";
(ii) in subsection (d)(l), by striking ''the date of
the enactment of this Act," and inserting "October
5, 1999,"; and
(iii) in subsection (g), by adding at the end the
following new pararaphs:
"(3) The term 'nationa laboratory' means any of the fol
lowing:
"(A) Lawrence Livermore National Laboratory, Liver
more, California.
"(B) Los Alamos National Laboratory, Los Alamos, New
Mexico.
"(C) Sandia National Laboratories, Albuquerque, New
Mexico and Livermore, California.
"(4) The term 'Restricted Data' has the meaning given
that term in section 11 y. of the Atomic Energy Act of 1954
(42 U.S.C. 2014(y».".
(4) BACKGROUND INVESTIGATIONS ON CERTAIN PERSONNEL.
(3); and
(D) amended
(i) in subsection (b), by striking "the date of the
enactment of this Act" and inserting "October 5, 1999,";
and
(ii) by adding at the end the following new sub
o section:
"(c) DEFINITIONS.-In this section, the terms 'national labora
tory' and 'Restricted Data' have the meanings given such terms
in section 4502(g).".
(5) COUNTERINTELLIGENCE POLYGRAPH PROGRAM.
(A) DEPARTMENT OF ENERGY COUNTERINTELLIGENCE
POLYGRAPH PROGRAM.-Section 3152 of the National
Law 107-107; 115 Stat. 1376), is
(i) transferred to title XLV of the Bob Stump
(ii) redesignated as section 4504;
graph (4); and
(iv) amended in subsection (c) by striking "section
3154 of the Department of Energy Facilities Safe
guards, Security, and Counterintelligence Enhance
ment Act of 1999 (subtitle D of title XXXI of Public
H. R. 1588-382
Law 106-65; 42 U.S.C. 7383h)" and inserting "section

4504A".
(B) COUNTERINTELLIGENCE POLYGRAPH PROGRAM.-Sec
tion 3154 of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 941), as
amended by section 3135 of the Floyd D. Spence National
into law by Public Law 106-398; 114 Stat. 1654A-456),
is
(i) transferred to title XLV of the Bob Stump
(ii) redesignated as section 4504A;
subparagraph (A); and
(iv) amended in subsection (h) by striking "180
days after the date of the enactment of this Act,"
and inserting "April 5, 2000,".
(6) NOTICE OF SECURITY AND COUNTERINTELLIGENCE FAlL
URES.-Section 3150 of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 939), is
(C) inserted after section 4504A, as added by paragraph
(5)(B).
(7) ANNuAL REPORT ON SECURITY FUNCTIONS AT NUCLEAR
WEAPONS FACILITIES.-Section 3162 of the National Defense
111 Stat. 2049), is
(6); and
. (D) amended in subsection (b) by inserting "of the
(Public Law 105-85; 111 Stat. 2048; 42 U.S.C. 7251 note)"
after "section 3161".
(8) REpORT ON COUNTERINTELLIGENCE AND SECURITY PRAC
TICES AT LABORATORIES.-Section 3152 of the National Defense
113 Stat. 940), is
(7); and
(D) amended by adding at the end the following new
subsection:
"(c) NATIONAL LABORATORY DEFINED.-In this section, the term
'national laboratory' has the meaning given that term in section
4502(g)(3).".
H. R. 1588-383
(9) REPORT ON SECURITY VULNERABILITIES OF NATIONAL

LABORATORY COMPUTERS.-Section 3153 of the National Defense
113 Stat. 940), is
(8); and
(D) amended by adding at the end the following new
subsection:
"(f) NATIONAL LABORATORY DEFINED.-In this section, the. term
'national laboratory' has the meaning given that term in section
4502(g)(3).".
(10) SUBTITLE HEADING ON CLASSIFIED INFORMATION.-Title
XLV of the Bob Stump National Defense Authorization Act
heading:
"Subtitle B-Classified Information".

(11) REVIEW OF CERTAIN DOCUMENTS BEFORE DECLASSIFICA
TION AND RELEASE.-Section 3155 of the National Defense
110 Stat. 625), is
(12) PROTECTION AGAINST INADVERTENT RELEASE OF
RESTRICTED DATA AND FORMERLY RESTRICTED DATA.-Section
3161 of the Strom Thurmond National Defense Authorization
as amended by section 1067(3) of the National Defense
113 Stat. 774) and section 3193 of the Floyd D. Spence National
(11); and
(D) amended
(i) in subsection (c)(1), by striking "the date of
the enactment of this Act" and inserting "October 17,
1998,";
(ii) in subsection (f)(1), by striking "the date of
the enactment of this Act" and inserting "October 17,
1998"; and
H. R. 1588-384
(iii) in subsection (0(2), by striking "The Secretary"
and inserting "Commencing with inadvertent releases
discovered on or after October 30, 2000, the Secretary".
(13) SUPPLEMENT TO PLAN FOR DECLASSIFICATION OF
RESTRICTED DATA AND F'ORMERLY RESTRICTED DATA.-Section
2000 (Public Law 10fH>5; 113 Stat. 938), is
(12); and
(D) amended
(i) in subsection (a), by striking "subsection (a)
of section 3161 of the Strom Thurmond National
Law 105-261; 112 Stat. 2260; 50 U.S.C. 435 note)"
and inserting "subsection (a) of section 4522";
(ii) in subsection (b)
(I) by striking "section 3161(b)(I) of that Act"
and inserting "subsection (b)(I) of section 4522";
and
(lI) by striking "the date of the enactment
of that Act" and inserting "October 17, 1998,";
(iii) in subsection (c)
(I) by striking "section 3161(c) of that Act"
and inserting "subsection (c) of section 4522"; and
(lI) by striking "section 316l(a) of that Act"
and inserting "subsection (a) of such section"; and
(iv) in subsection (d), by striking "section 3161(d)
of that Act" and inserting "subsection (d) of section
4522".
(14) PROTECTION OF CLASSIFIED INFORMATION DURING LAB
ORATORY-TO-LABORATORY EXCHANGE8.-Section 3145 of the
Law 106-65; 113 Stat. 935), is
. (A) transferred to title XLV of the Bob Stump National
(13).
(15) IDENTIFICATION IN BUDGETS OF AMOUNT FOR DECLAS
SIFICATION ACTMTIES.-Section 3173 of the National Defense
113 Stat. 949), is
(14); and
(D) amended in subsection (b) by striking "the date
of the enactment of this Act" and inserting "October 5,
1999,".
H. R. 1588-385
(16) SUBTITLE HEADING ON EMERGENCY RESPONSE.-Title
XLV of the Bob Stump National Defense Authorization Act
heading:
"Subtitle C-Emergency Response".

(17) RESPONSIBIUTY FOR DEFENSE PROGRAMS EMERGENCY
RESPONSE PROGRAM.-Section 3158 of the National Defense
110 Stat. 626), is
(i) PERSONNEL MATTERS.
"TITLE XLVI-PERSONNEL MATTERS

"Subtitle A-Personnel Management".
(2) AUTHORITY FOR APPOINTMENT OF CERTAIN SCIENTIFIC,
ENGINEERING, AND TECHNICAL PERSONNEL.-8ection 3161 of the
(Public Law 105-85; 111 Stat. 2040), sections 3152 and 3155
of the Strom Thurmond National Defense Authorization Act
for Fiseal Year 1999 (Public Law 105-261; 112 Stat. 2253,
2257), and section 3191 of the Floyd D. Spence National Defense
(A) transferred to title XLVI of the Bob Stump National
by paragraph (1);
title, as so added.
(3) WHISTLEBLOWER PROTECTION PROGRAM.-Section 3164
(2); and
H. R. 1588-386
(D) amended in subsection (n) by striking "60 days
"December 5, 1999,".
(4) EMPLOYEE INCENTIVES FOR WORKERS AT CLOSURE
PROJECT FACILITIES.-Section 3136 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
458), is
(3); and
(D) amended
(i) in subsections (c) and (i)(l)(A), by striking "sec
tion 3143 of the National Defense Authorization Act
for Fiscal Year 1997 (42 U.S.C. 7274n)" and inserting
"section 4421"; and
(ii) in subsection (g), by striking "section 3143(h)
of the National Defense Authorization Act for Fiscal
Year 1997" and inserting "section 4421(h)".
(5) DEFENSE NUCLEAR FACILITY WORKFORCE RESTRUCTURING
PLAN.-Section 3161 of the National Defense Authorization Act
as amended by section 1070(c)(2) of the National Defense
108 Stat. 2857), Public Law 105-277 (112 Stat. 2681-419, 2681
430), and section 1048(h)(1) of the National Defense Authoriza
1229), is
(4); and
(D) amended
(i) in subsection (a), by striking "(hereinafter in
this subtitle referred to as the 'Secretary')"; and
(ii) by adding at the end the following new sub
section:
"(g) DEPARTMENT OF ENERGY DEFENSE NUCLEAR FACILITY
DEFINED.-In this section, the term 'Department of Energy defense
nuclear facility' means
"(1) a production facility or utilization facility (as those
terms are defined in section 11 of the Atomic Energy Act
of 1954 (42 U.S.C. 2014» that is under the control or jurisdiction
of the Secretary and that is operated for national security
purposes (including the tritium loading facility at Savannah
River, South Carolina, the 236 H facility at Savannah River,
South Carolina; and the Mound Laboratory, Ohio), but the
term does not include any facility that does not conduct atomic
energy defense activities and does not include any facility or
activity covered by Executive Order Number 12344, dated Feb
ruary 1, 1982, pertaining to the naval nuclear propulsion pro
gram;
H. R. 1588-387
"(2) a nuclear waste storage or disposal facility that is
under the control or jurisdiction of the Secretary;
"(3) a testing and assembly facility that is under the control
or jurisdiction of the Secretary and that is operated for national
security purposes (including the Nevada Test Site, Nevada;
the Pinnellas Plant, Florida; and the Pantex facility, Texas);
"(4) an atomic weapons research facility that is under the
control or jurisdiction of the Secretary (including Lawrence
Livermore, Los Alamos, and Sandia National Laboratories);
or
"(5) any facility described in paragraphs (1) through (4)
that
"(A) is no longer in operation;
"(B) was under the control or jurisdiction of the Depart
ment of Defense, the Atomic Energy Commission, or the
Energy Research and Development Administration; and
"(C) was operated for national security purposes.".
(6) AUTHORITY TO PROVIDE CERTIFICATE OF COMMENDATION
TO EMPLOYEEs.-Section 3195 of the Floyd D. Spence National
(5).
(7) SUBTITLE HEADING ON EDUCATION AND TRAINING.-Title
XLVI of the Bob Stump National Defense Authorization Act
heading:
"Subtitle B-Education and Training".

(8) EXECUTIVE MANAGEMENT TRAINING.-Section 3142 of
the National Defense Authorization Act for Fiscal Years 1990
and 1991 (Public Law 101-189; 103 Stat. 1680), is
. (A) transferred to title XLVI ofthe Bob Stump National
at the end.
(9) STOCKPILE STEWARDSHIP RECRUITMENT AND TRAINING
PROGRAM.-Section 3131 of the National Defense Authorization
is
(8); and
(D) amended
H. R. 1588-388
(i) in subsection (a)(l), by striking "section 3138
of the National Defense Authorization Act for Fiscal
Year 1994 (Public Law 103-160; 107 Stat. 1946; 42
U.S.C. 2121 note)" and inserting "section 4201"; and
(ii) in subsection (b)(2), by inserting "of the
1995 (Public Law 103-337)" after "section 31Ol(a)(1)".
(10) FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS
CRITICAL TO NtJCLEAR WEAPONS COMPLEX.-Section 3140 of the
(9).
(11) SUBTITLE HEADING ON WORKER SAFETY.-Title XLVI
"Subtitle C-Worker Safety".

(12) WORKER PROTECTION AT NUCLEAR WEAPONS FACILI
TIES.-8ection 3131 of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102-190; 105
Stat. 1571), is
(D) amended in subsection (e) by inserting "of the
National Defense Authorization Act for Fiscal Years 1992
and 1993 (Public Law 102-190)" after "section 3101(9)(A)".
(13) SAFETY OVERSIGHT AND ENFORCEMENT AT DEFENSE
NUCLEAR FACILITIES.-Section 3163 of the National Defense
108 Stat. 3097), is
(B) redesignated as section 4642; .
(12); and
(D) amended in subsection (b) by striking "90 days
"January 5,1995,".
(14) PROGRAM TO MONITOR WORKERS AT DEFENSE NUCLEAR
FACILITIES EXPOSED TO HAZARDOUS OR RADIOACTIVE SUB
STANCES.-Section 3162 of the National Defense Authorization
is
H. R. 1588-389
(13); and
(D) amended
(i) in subsection (b)(6), by striking "1 year after
the date of the enactment of this Act" and inserting
"October 23, 1993";
(ii) in subsection (c), by striking "180 days after
the date of the enactment of this Act," and inserting
"April 23, 1993,"; and
(iii) by adding at the end the following new sub
section:
"(d) DEFINITIONS.-In this section:
"(1) The term 'Department of Energy defense nuclear
facility' has the meaning given that term in section 4604(g).
"(2) The term 'Department of Energy employee' means
any employee of the Department of Energy employed at a
Department of Energy defense nuclear facility, including any
employee of a contractor or subcontractor of the Department
of Energy employed at such a facility.".
(15) PROGRAMS FOR PERSONS WHO MAY HAVE BEEN EXPOSED
TO RADIATION RELEASED FROM HANFORD RESERVATION.-Section
1991 (Public Law 101-510; 104 Stat. 1834), as amended by
(14); and
(D) amended
the end;
(ii) in subsection (a), by striking "this title" and
inserting "title XXXI of the National· Defense
Authorization Act for Fiscal Year 1991 (Public Law
101-510)"; and
(iii) in subsection (c)
(1) in paragraph (2), by striking "six months
inserting "May 5, 1991,"; and
(II) in paragraph (3), by striking "18 months
inserting "May 5, 1992,".
(j) BUDGET AND FINANCIAL MANAGEMENT MA'ITERS.
H. R. 1588-390
"TITLE XLVII-BUDGET AND FINANCIAL

MANAGEMENT MATTERS
"Subtitle A-Recurring National Security
Authorization Provisions".
(2) RECURRING NATIONAL SECURITY AUTHORIZATION PROV!o
SIONs.-Sections 3620 through 3631 of the Bob Stump National
107-314; 116 Stat. 2756) are
(A) transferred to title XLVII of such Act, as added
by paragraph (1);
(B) redesignated as sections 4701 through 4712, respec
tively;
(D) amended
(i) in section 4702, as so redesignated, by striking
"sections 3629 and 3630" and inserting "sections 4710
and 4711"·
(ii) i~ section 4706(a)(3)(B), as so redesignated,
by striking "section 3626" and inserting "section 4707";
(iii) in section 4707(c), as so redesignated, by
striking "section 3625(b)(2)" and inserting "section
4706(b)(2)";
(iv) in section 4710(c), as so redesignated, by
striking "section 3621" and inserting "section 4702";
(v) in section 4711(c), as so redesignated, by
striking "section 3621" and inserting "section 4702";
and
(vi) in section 4712, as so redesignated, by striking
"section 3621" and inserting "section 4702".
(3) SUBTITLE HEADING ON PENALTIES.-Title XLVII of the
Bob Stump National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection, is further amended by
adding ~t the end the following new subtitle heading:
"Subtitle B-Penalties".
(4) RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER
ENVIRONMENTAL LAWS.-Section 3132 of the National Defense
100 Stat. 4063), is
(A) transferred to title XLVII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
at the end.
(5) RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER
CLEAN AIR ACT.-Section 211 of the Department of Energy
National Security and Military Applications of Nuclear Energy
H. R. 1588-391
Authorization Act of 1981 (Public Law 96-540; 94 Stat. 3203),
is
(4); and
(C) amended
"SEC. 4722. RESTRICTION ON USE OF FUNDS TO PAY PENALTIES
UNDER CLEAN AIR ACT.";
(ii) by striking "SEC. 211."; and
(iii) by striking "this or any other Act" and
inserting "the Department of Energy National Security
and Military Applications of Nuclear Energy
Authorization Act of 1981 (Public Law 96-540) or any
other Act".
(6) SUBTITLE HEADING ON OTHER MATTERS.-Title XLVII
"Subtitle C-Other Matters".

(7) SINGLE REQUEST FOR AUTHORIZATION OF APPROPRIATIONS
FOR COMMON DEFENSE AND SECURITY PROGRAMS.-Section 208
of the Department of Energy National Security and Military
Applications of Nuclear Energy Authorization Act of 1979
(B) inserted after the heading for subtitle C of such
'(C) amended
"SEC. 4731. SINGLE REQUEST FOR AUTHORIZATION OF APPROPRIA·
TIONS FOR COMMON DEFENSE AND SECURITY PRO·
GRAMS.";
and
(ii) by striking "SEC. 208.".
(k) ADMINISTRATIVE MATTERS.
(1) HEADINGs.-Division D of the Bob Stump National
H. R. 1588-392
"TITLE XLVIII-ADMINISTRATIVE
MATTERS
"Subtitle A-Contracts".
(2) COSTS NOT ALLOWED UNDER CERTAIN CONTRACTS.-Sec
tion 1534 of the Department of Defense Authorization Act,
1986 (Public Law 99-145; 99 Stat. 774), as amended by section
3131 of the National Defense Authorization Act for Fiscal Years
1988 and 1989 (Public Law 100-180; 101 Stat. 1238), is
(A) transferred to title XLVIII of the Bob Stump
as added by paragraph (1);
(D) amended
the end; and
(ii) in subsection (b)(l), by striking "the date of
the enactment of this Act," and inserting "November
8,1985,".
(3) PROHIBITION ON BONUSES TO CONTRACTORS OPERATING
DEFENSE NUCLEAR FACILITIES.-Section 3151 of the National
Defense Authorization Act for Fiscal Years 1990 and 1991
(2); and
(0) amended
the end;
(ii) in subsection (a), by striking ''the date of the
. enactment of this Act" and inserting "November 29,
1989'"
(iii) in subsection (b), by striking "6 months after
the date of the enactment of this Act," and inserting
"May 29 1990'" and .
(iv) 'in suh~ection (d), by striking "90 days after
the date of the enactment of this Act" and inserting
"March 1, 1990".
(4) CONTRACTOR LIABILITY FOR INJURY OR LOSS OF PROPERTY
ARISING FROM ATOMIC WEAPONS TESTING PROGRAMS.-Section
(3); and
(D) amended
H. R. 1588-393
the end; and
(ii) in subsection (d), by striking "the date of the
enactment of this Act" each place it appears and
inserting "November 5, 1990,".
(5) SUBTITLE HEADING ON RESEARCH AND DEVELOPMENT.
Title XLVIII of the Bob Stump National Defense Authorization
Act for Fiscal Year 2003, as amended by this subsection, is
further amended by adding at the end the following new subtitle
heading:
"Subtitle B-Research and Development".

(6) LABORATORY-DIRECTED RESEARCH AND DEVELOPMENT.
at the end.
(7) LIMITATIONS ON USE OF FUNDS FOR LABORATORY
DIRECTED RESEARCH AND DEVELOPMENT.
(A) LIMITATIONS ON USE OF FUNDS FOR LABORATORY
DIRECTED RESEARCH AND DEVELOPMENT.-Section 3137 of
the National Defense Authorization Act for Fiscal Year
(i) transferred to title XLVIII of the Bob Stump
(ii) redesignated as section 4812;
graph (6);
(iv) amended in subsection (b) by striking "section
'3136(b) of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2831;
42 U.S.C. 7257b)" and inserting "section 4812A(b)";
(v) amended in subsection (d)
(I) by striking "section 3136(b)(1)" and
inserting "section 4812A(b)(1)"; and
(II) by striking "section 3132(c) of the National
Defense Authorization Act for Fiscal Year 1991
(42 U.S.C. 7257a(c))" and inserting "section
4811(c)"; and
(vi) amended in subsection (e) by striking "section
3132(d) of the National Defense Authorization Act for
Fiscal Year 1991 (42 U.S.C. 7257a(d))" and inserting
"section 481l(d)".
(B) LIMITATION ON USE OF FUNDS FOR CERTAIN
RESEARCH AND DEVELOPMENT PURPOSES.-8ection 3136 of
1997 (Public Law 104-201; no Stat. 2830), as amended
by section 3137 of the National Defense Authorization Act
- ~--_._--~-----~--~~~~~-----------
H. R. 1588-394
is
(i) transferred to title XLVIII of the Bob Stump
(ii) redesignated as section 4812A;
subparagraph (A); and
(iv) amended in subsection (a) by inserting "of
1997 (Public Law 104-201)" after "section 3101".
(8) CRITICAL TECHNOLOGY PARTNERSHIPS.-Section 3136 of
the National Defense Authorization Act for Fiscal Years 1992
and 1993 (Public Law 102-190; 105 Stat. 1577), as amended
by section 203(b)(3) of Public Law 103-35 (107 Stat. 102),
is
(C) inserted after section 4812A, as added by paragraph
(7)(B).
(9) UNIVERSITY-BASED RESEARCH COLLABORATION PRO
GRAM.-Section 3155 of the National Defense Authorization
is
(8); and
(D) amended in subsection (c) by striking ''this title"
and inserting "title XXXI of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105
85)".
(10) SUBTITLE HEADING ON FACILITIES MANAGEMENT.-Title
XLVIII of the Bob Stump National Defense Authorization Act
heading:
"Subtitle C-Facilities Management".

(11) TRANSFERS OF REAL PROPERTY AT CERTAIN FACILI
TIEs.-Section 3158 of the National Defense Authorization Act
is
(12) ENGINEERING AND MANUFACTURING RESEARCH,
DEVELOPMENT, AND DEMONSTRATION AT CERTAIN NUCLEAR
WEAPONS PRODUCTION PLANTS.-Section 3156 of the Floyd D.
H. R. 1588-395
Spence National Defense Authorization Act for Fiscal Year
1654A-467), is
(11).
(13) PILOT PROGRAM ON USE OF PROCEEDS OF DISPOSAL
OR UTILIZATION OF CERTAIN ASSETS.-Section 3138 of the
Law 105-85; 111 Stat. 2039), is
(12); and
(D) amended in subsection (d) by striking "sections
202 and 203(j) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 483 and 484(j))" and
inserting_"subchapter II of chapter 5 and section 549 of
title 40, United States Code,".
(14) SUBTITLE HEADING ON OTHER MATTERS.-Title XLVIII
"Subtitle D-Other Matters".

(15) SEMIANNUAL REPORTS ON LOCAL IMPACT ASSISTANCE.
Subsection (D of section 3153 of the National Defense Authoriza
2044), is
. (B) inserted after the heading for subtitle D of such
(C) amended- .
section heading:
"SEC. 4851. SEMIANNUAL REPORTS ON LOCAL IMPACT ASSISTANCE.";
(ii) by striking "(D SEMIANNUAL REPORTS TO CON
GRESS OF LOCAL IMPACT AsSISTANCE.-"j and
(iii) by striking "section 3161(c)(6) of the National
Defense Authorization Act of 1993 '(42 U.S.C.
7274h(c)(6»" and inserting "section 4604(c)(6)".
(16) PAYMENT OF COSTS OF OPERATION AND MAINTENANCE
OF INFRASTRUCTURE AT NEVADA TEST SITE.-Section 3144 of
the National Defense Authorization Act for Fiscal Year 1997
(A) transferred to title XLVIII of such Act, as amended
by this subsection;
H. R. 1588-396
(15).
(m) CONFORMING AMENDMENTS.-(I) Title XXXVI of the Bob
Stump National Defense Authorization Act for Fiscal Year 2003
(Public Law 107-314; 116 Stat. 1756) is repealed.
(2) Subtitle E of title XXXI of the National Defense Authoriza
tion Act for Fiscal Year 1993 (Public Law 102-484; 42 U.S.C.
7274h et seq.) is repealed.
(3) Section 8905a(dX5XA) of title 5, United States Code, is
amended by striking "section 3143 of the National Defense
Authorization Act for Fiscal Year 1997 (42 U.S.C. 7274n)" and
inserting "section 4421 ofthe Atomic Energy Defense Act".
TITLE XXXII-DEFENSE NUCLEAR
FACILITIES SAFETY BOARD
SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for fiscal year 2004,
$19,559,000 for the operation of the Defense Nuclear Facilities
Safety Board under chapter 21 of the Atomic Energy Act of 1954
(42 U.s.C. 2286 et seq.).
TITLE XXXIII-NATIONAL DEFENSE

STOCKPILE
Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously authorized dis
posals from National Defense Stockpile.
SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE

FUNDS.
(a) OBLIGATION OF STOCKPILE FUNDS.-During fiscal year 2004,
the National Defense Stockpile Manager may obligate up to
$69,701,000- 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)
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.
H. R. 1588-397
SEC. 3302. REVISIONS TO REQumED RECEIPT OBJECTIVES FOR PRE
VIOUSLY AUTHORIZED DISPOSALS FROM NATIONAL
DEFENSE STOCKPILE.
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 972; 50 U.S.C.
98d note) is amended
(1) in subsection (b)
(A) by striking "and" at the end of paragraph (2);
and
(B) by striking paragraph (3) and inserting the fol
lowing new paragraphs:
"(3) $340,000,000 before the end of fiscal year 2005; and
"(4) $450,000,000 before the end of fiscal year 2013."; and
(2) in subsection (e), by adding at the end the following
new sentence: "The disposaI of materials under this section
to achieve the receipt levels specified in subsection (b), within
the time periods specified in subsection, shall be in addition
to any routine and on-going disposals used to fund operations
of the National Defense Stockpile.".
TITLE XXXIV-NAVAL PETROLEUM

RESERVES
Sec. 3401. Authorization of appropriations.
SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.
(a) AMOUNT.-There are hereby authorized to be appropriated
to the Secretary of Energy $16,500,000 for fiscal year 2004 for
the purpose of carrying out activities under chapter 641 of title
10, United States Code, relating to the naval petroleum reserves.
(b) PERIOD OF AVAILABILITY.-Funds appropriated pursuant to
the authorization of appropriations in subsection (a) shall remain
available until expended.
TITLE XXXV-MARITIME
ADMINISTRATION
Sec. 3501. Short title.

Subtitle A-Maritime Administration Reauthorization
Sec. 3511. Authorization of appropriations for fiscal years 2004, 2005, 2006, 2007,
and 2008.
Sec. 3512. Conveyance of obsolete vessels under title V, Merchant Marine Act,
1936.
Sec. 3513. Authority to convey vessel USS HOIST (ARS-40).
Sec. 3514. Cargo preference.
Sec. 3515. Mantime education and training.
Sec. 3516. Authority to convey obsolete vessels to United States territories and for
eign countries for reefing.
Sec. 3517. Maintenance and repair reimbursement pilot program.
Subtitle B-Amendments to Title XI Loan Guarantee Program
Sec. 3521. Equity payments by obligor for disbursement prior to termination of es
crow agreement.
Sec. 3522. Waivers of program requirements.
Sec. 3523. Project.monitoring.
Sec. 3524. Defaults.
Sec. 3525. Decision period.
Sec. 3526. Loan guarantees.
H. R. 1588-398
Sec. 3527. Annual report on program.
Sec. 3528. Review of program.
Subtitle C-Maritime Security Fleet
Sec. 3531. Establishment of Maritime Security Fleet.
Sec. 3532. Related amendments to existing law.
Sec. 3533. Interim rules.
Sec. 3534. Repeals and conforming amendments.
Sec. 3535. GAO study of adjustment of operating agreement payment criteria.
Sec. 3536. Definitions.
Sec. 3537. Effective dates.
Subtitle D-National Defense Tank Vessel Construction Assistance

Sec. 3541. National defense tank vessel construction program.
Sec. 3542. Application procedure.
Sec. 3543. Award of assistance.
Sec. 3544. Priority for title XI assistance.
Sec. 3545. Definitions.
Sec. 3546. Authorization of appropriations.
SEC. 3501. SHORT TITLE.

This title may be cited as the "Maritime Security Act of 2003".
Subtitle A-Maritime Administration
Reauthorization
SEC. 3511. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS

2004,2005, 2006, 2007, AND 2008.
There are authorized to be appropriated to the Secretary of
Transportation for the Maritime Administration
(1) for expenses necessary for operations and training
activities, not to exceed $104,400,000 for the fiscal year ending
September 30, 2004, $106,000,000 for the fiscal year ending
September 30,2007, and $113,000,000 for the fiscal year ending
September 30,2008;
(2) for expenses under the loan guarantee program author
ized by title XI of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1271 et seq.), $36,000,000 for each of fiscal years 2004,
2005,2006,2007, and 2008 of which
. (A) $30,000,000 shall be for the cost (as dermed in
section 502(5) of the Federal Credit Reform Act of 1990
(2 U.S.C. 661a(5))) of loan guarantees under the program;
and
(B) $6,000,000 shall be for administrative expenses
related to loan guarantee commitments under the program;
and
(3) for ship disposal, $18,422,000 for fiscal year 2004,
$11,422,000 for each of fiscal years 2005 and 2006, and
$12,000,000 for each of fiscal years 2007 and 2008.
SEC. 3512. CONVEYANCE OF OBSOLETE VESSELS UNDER TITLE V, MER
CHANT MARINE ACT, 1936.
Section 508 of the Merchant Marine Act, 1936 (46 U.S.C. App.
1158) is amended
(1) by inserting "(a) AUTHORITY To SCRAP OR SELL OBSO
LETE VESSELS.-" before "If'; and
(2) by adding at the end the following:
"(b) AUTHORITY To CONVEY VESSELS.

H. R. 1588-399
"(1) IN GENERAL.-Notwithstanding section 5lOG) of this
Act, the Secretary of Transportation may convey the right,
title, and interest of the United States Government in any
vessel of the National Defense Reserve Fleet that has been
identified by the Secretary as an obsolete vessel of insufficient
value to warrant its further preservation, if
"(A) the recipient is a non-profit organization, a State,
Commonwealth, or possession of the United States or any
municipal corporation or political subdivision thereof, or
the District of Columbia;
"(B) the recipient agrees not to use, or allow others
to use, the vessel for commercial transportation purposes;
"(C) the recipient agrees to make the vessel available
to the Government whenever the Secretary indicates that
it is needed by the Government;
"(D) the recipient agrees to hold the Government harm
less for any claims arising from exposure to asbestos, poly
chlorinated biphenyls, lead faint, or other hazardous sub
stances after conveyance 0 the vessel, except for claims
arising from use of the vessel by the Government;
"(E) the recipient has a conveyance plan and a business
plan that describes the intended use of the vessel, each
of which have been submitted to and approved by the
Secretary;
"(F) the recipient has provided proof, as determined
by the Secretary, of resources sufficient to accomplish the
transfer, necessary repairs and modifications, and initiation
of the intended use of the vessel; and
"(G) the recipient agrees that when the recipient no
longer requires the vessel for use as described in the busi
ness plan required under subparagraph (E}
"(i) the recipient will, at the discretion of the Sec
retary, reconvey the vessel to the Government in good
condition except for ordinary wear and tear; or
"(ii) if the Board of Trustees of the recipient has
decided to dissolve the recipient according to the laws
of the State in which the recipient is incorporated,
then
"(I) the recipient shall distribute the vessel,
as an asset of the recipient, to a person that has
been determined exempt from taxation under the
provisions of section 501(c)(3) of the Internal Rev
enue Code, or to the Federal Government or a
State or local government for a public purpose;
and
"(II) the vessel shall be disposed of by a court
of competent jurisdiction of the county in which
the principal office of the recipient is located, for
such purposes as the court shall determine, or
to such organizations as the court shall determine
are organized exclusively for public purposes.
"(2) OTHER EQUIPMENT.-At the Secretary's discretion,
additional equipment from other obsolete vessels of the National
Defense Reserve Fleet may be conveyed to assist the recipient
with maintenance, repairs, or modifications.
"(3) ADDITIONAL TERMS.-The Secretary may require any
additional terms the Secretary considers appropriate.
H. R. 1588-400
"(4) DELIVERY OF VESSEL.-If conveyance is made under
this subsection the vessel shall be delivered to the recipient
at a time and place to be determined by the Secretary. The
vessel shall be conveyed in an 'as is' condition.
"(5) LIMITATIONS.-If at any time prior to delivery of the
vessel to the recipient, the Secretary determines that a different
disposition of a vessel would better serve the interests of the
Government, the Secretary shall pursue the more favorable
disposition of the obsolete vessel and shall not be liable for
any damages that may result from an intended recipient's
reliance upon a proposed transfer.
"(6) REVERSION.-The Secretary shall include in any
conveyance under this subsection terms under which all right,
title, and interest conveyed by the Secretary shall revert to
the United States if the Secretary determines the vessel has
been used other than as described in the business plan required
under paragraph (1)(E).".
SEC. 3513. AUTHORITY TO CONVEY VESSEL USS HOIST (ARS-40).
(a) IN GENERAL.-Notwithstanding section 51O(j) of the Mer
chant Marine Act, 1936 (46 U.S.C. App. 1160G», the Secretary
of Transportation may convey the right, title, and interest of the
United States Government in and to the vessel USS HOIST (ARS
40), to the Last Patrol Museum, located in Toledo, Ohio (a not
for-profit corporation, in this section referred to as the "recipient"),
for use as a military museum, if
(1) the recipient .agrees to use the vessel as a nonprofit
military museum;
(2) the recipient agrees not to use, or allow others to
use, the vessel for commercial transportation purposes;
(3) the recipient agrees to make the vessel available to
the Government whenever the Secretary indicates that it is
needed by the Government;
(4) the recipient agrees that when the recipient no longer
requires the vessel for use as a military museum
(A) the recipient will, at the discretion of the Secretary,
reconvey the vessel to the Government in good condition
except for ordinary wear and tear; or
(B) if the Board of Trustees of the recipient has decided
to dissolve the recipient according to the laws of the State
in which the recipient is incorporated, then
(i) the recipient shall distribute the vessel, as an
asset of the recipient, to a person that has been deter
mined exempt from taxation under the provisions of
section 501(c)(3) of the Internal Revenue Code, or to
the Federal Government or a State or local government
for a public purpose; and
(ii) the vessel shall be disposed of by a court of
competent jurisdiction of the county in which the prin
cipal office of the recipient is located, for such purposes
as the court shall determine, or ,to such organizations
as the court shall determine are organized exclusively
for public purposes;
&
~
\ I
H. R. 1588-401
(5) the recipient agrees to hold the Government harmless
for any claims arising from exposure to asbestos, poly
chlorinated biphenyls, lead paint, or other hazardous sub
stances after conveyance of the vessel, except for claims arising
from use of the vessel by the Government;
(6) the recipient has available, for use to restore the vessel,
in the form of cash, liquid assets, or a written loan commitment,
financial resources of at least $100,000; and
(7) the recipient has a conveyance flan and a business
plan that describes the intended use 0 the vessel, each of
which have been submitted to and approved by the Secretary.
(b) DELIVERY OF VESSEL.-If a conveyance is made under this
section, the Secretary shall deliver the vessel at the place where
the vessel is located on the date of the enactment of this Act,
in its present condition, and without cost to the Government.
(c) OTHER UNNEEDED EQUlPMENT.-The Secretary may also
convey any unneeded equipment from other vessels in the National
Defense Reserve Fleet in order to restore the USS HOIST (ARS
40) to museum quality.
(d) RETENTION OF VESSEL IN NDRF.
(1) IN GENERAL.-The Secretary shall retain in the National
Defense Reserve Fleet the vessel authorized to be conveyed
under subsection (a), until the earlier of
(A) 2 years after the date of the enactment of this
Act; or
(B) the date of conveyance of the vessel under sub
section (a).
(2) LIMITATION.-Paragraph (1) does not require the Sec
retary to retain the vessel in the National Defense Reserve
Fleet if the Secretary determines that retention of the vessel
in the fleet will pose an unacceptable risk to the marine
environment.
SEC. 3514. CARGO PREFERENCE.
Section 901b(c)(2) of the Merchant Marine Act, 1936 (46 U.S.C
App. 1241f(c)(2» is amended by striking "1986." and inserting "1986,
the I8-month period beginning April 1, 2002, and the I2-month
period beginning October 1, 2003, and each year thereafter.".
SEC. 3515. MARITIME EDUCATION AND TRAINING.
(a) COST OF EDUCATION DEFINED.-Section 1302 of the Mer
chant Marine Act, 1936 (46 U.S.C. App. 1295a) is amended
(1) by striking "and" after the semicolon in paragraph
(3);
(2) by striking "States." in paragraph (4)(B) and inserting
"States' and'" and
"(5) the term 'cost of education provided' means the finan
cial costs incurred by the Federal Government for providing
training or financial assistance to students at the United States
Merchant Marine Academy and the State maritime academies,
including direct financial assistance, room, board, classroom
academics, and other training activities.".
(b) COMMITMENT AGREEMENTS.-Section 1303(e) of the Mer
chant Marine Act, 1936 (46 U.S.C. App. 1295b(e» is amended
(1) by striking "Academy, unless the individual is separated
from the" in paragraph (l)(A);
(2) by striking paragraph (l)(C) and inserting the following:
H. R. 1588--402
"(C) to maintain a valid license as an officer in the mer·
chant marine of the United States for at least 6 years following
the date of graduation from the Academy of such individual,
accompanied by the appropriate national and international
endorsements and certification as required by the United States
Coast Guard for service aboard vessels on domestic and inter
national voyages;";
(3) by striking paragraph (l)(E)(iii) and inserting the fol
lowing:
"(iii) as a commissioned officer on active duty in an
armed force of the United States, as a commissioned officer
in the National Oceanic and Atmospheric Administration,
or other maritime-related employment with the Federal
Government which serves the national security interests
of the United States, as determined by the Secretary; or";
(4) by striking paragraph (2) and inserting the following:
"(2)(A) If the Secretary determines that any individual who
has attended the Academy for not less than 2 years has failed
to fulfill the part of the agreement required by paragraph (l)(A),
such individual may be ordered by the Secretary of Defense to
active duty in one of the armed forces of the United States to
serve for a period of time not to exceed 2 years. In cases of hardship
as determined by the Secretary, the Secretary may waive this
provision in whole or in part.
"(B) If the Secretary of Defense is unable or unwilling to order
an individual to active duty under subparagraph (A), or if the
Secretary of Transportation determines that reimbursement of the
cost of education provided would better serve the interests of the
United States, the Secretary may recover from the individual the
cost of education provided by the Federal Government.";
(5) by striking paragraph (3) and inserting the following;
"(3 )(A) If the Secretary determines that an individual has failed
to fulfill any part of the agreement required by paragraph (1),
as described in paragraph (l)(B), (0), (D), (E), or (F), such individual
may be ordered to active duty to serve a period of time not less
than 3 years and not more than the unexpired portion, as deter
mined by the Secretary, of the service required by paragraph (I)(E).
The Secretary, in consultation with the Secretary of Defense, shall
determine in which service the individual shall be ordered to active
duty to serve such period of time. In cases of hardship, as deter
mined by the Secretary, the Secretary may waive this provision
in whole or in part.
United States, the Secretary may recover from the individual the
cost of education provided and may reduce the amount to be recov
ered from such individual to reflect partial performance of service
obligations and such other factors as the Secretary determines
merit such a reduction."; and
(6) by redesignating paragraph (4) as paragraph (5) and
inserting after paragraph (3) the following:
"(4) To aid in the recovery of the cost of education provided
by the Federal Government pursuant to a commitment agreement
under this section, the Secretary may request the Attorney General
to begin court proceedings, and the Secretary may make use of
H. R. 1588-403
the Federal debt collection procedures in chapter 176 of title 28,
United States Code, or other applicable administrative remedies.".
(c) DEGREES AWARDED.-Section 1303(g) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1295b(g)) is amended to read
as follows:
"(g) DEGREES AWARDED.
"(1) BACHELOR'S DEGREE.-The Superintendent of the
Academy may confer the degree of bachelor of science upon
any individual who has met the conditions prescribed by the
Secretary and who, if a citizen of the United States, has passed
the examination for a merchant marine officer's license. No
individual may be denied a degree under this subsection
because the individual is not permitted to take such examina
tion solely because of physical disqualification.
"(2) MAsTER'S DEGREE.-The Superintendent of the
Academy may confer a master's degree upon any individual
who has met the conditions prescribed by the Secretary. Any
master's degree program may be funded through non-appro
priated funds. In order to maintain the appropriate academic
standards, the program shall be accredited by the appropriate
accreditation body. The Secretary may make regulations nec
essary to administer such a program.".
(d) STUDENT INCENTIVE PAYMENTS.-Section 1304(g) of the Mer
chant Marine Act, 1936 (46 U.S.C. App. 1295c(g)) is amended
(1) by striking "$3,000" in paragraph (1) and inserting
"$4000'"
, (2) in paragraph (3)(A) by striking "attending, unless the
individual is separated by such academy;" and inserting
"attending;";
(3) by striking paragraph (3)(C) and inserting the following:
"(C) to maintain a valid license as an officer in the mer
chant marine of the United States for at least 6 years following
the date of graduation from such State maritime academy
of such individual, accompanied by the appropriate national
and international endorsements and certification as required
by the United States Coast Guard for service aboard vessels
on domestic and international voyages;";
(4) by striking paragraph (3)(E)(iii) and inserting the fol
lowing:
"(iii) as a commissioned officer on active duty in an
armed force of the United States, as a commissioned officer
in the National Oceanic and Atmospheric Administration,
or in other maritime-related employment with the Federal
Government which serves the national security interests
of the United States, as determined by the Secretary; or";
"(4)(A) If the Secretary determines that an individual who
has accepted the payment described in paragraph (1) for a minimum
of 2 academic years has failed to fulfill the part of the agreement
required by paragraph (1) and described in paragraph (3)(A), such
individual may be ordered by the Secretary of Defense to active
duty in the Armed Forces of the United States to serve for a
period of time not to exceed 2 years. In cases of hardship, as
determined by the Secretary, the Secretary may waive this provision
H. R. 1588--404
United States, the Secretary
"(i) subject to clause (ii), may recover from the individual
the amount of student incentive payments, plus interest and
attorneys fees; and
"(ii) may reduce the amount to be recovered from such
individual to reflect partial performance of service obligations
and such other factors as the Secretary determines merit such
reduction.";
"(5)(A) If the Secretary determines that an individual has failed
to fulfill any part of the agreement required by paragraph (1),
as described in paragraph (3)(B), (C), (D), (E), or (F), such individual
may be ordered to active duty to serve a period of time not less
than 2 years and not more than the unexpired portion, as deter
mined by the Secretary, of the service required by paragraph (3)(E).
The Secretary, in consultation with the Secretary of Defense, shall
determine in which service the individual shall be ordered to active
duty to serve such period of time. In cases of hardship, as deter
mined by the Secretary, the Secretary may waive thIS provision
United States, the Secretary
"(i) subject to clause (ii), may recover from the individual
the amount of student incentive payments, plus interest and
attorneys fees; and
"(ii) may reduce the amount to be recovered from such
individual to reflect partial performance of service obligations
and such other factors as the Secretary determines merit such
reduction."; and
(7) by redesignating paragraphs (6) and (7) as paragraphs
(7) and (8), respectively, and inserting after paragraph (5) the
following:
"(6) To aid in the recovery of student incentive payments plus
interest and attorneys fees the Secretary may request the Attorney
General to begin court proceedings, and the Secretary may make
use of the Federal debt collection procedures in chapter 176 of
title 28, United States Code, and other applicable administrative
remedies.". .
(e) AWARDS AND MEDALs.-Section 1306 of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1295e) is amended by adding
at the end the following:
"(d) AWARDS AND MEDALS.-The Secretary may establish and
maintain a medals and awards program to recognize distinguished
service, superior achievement, professional performance, and other
commendable achievement by personnel of the United States Mari
time Service.".
SEC. 3516. AUTHORITY TO CONVEY OBSOLETE VESSELS TO UNITED
STATES TERRITORIES AND FOREIGN COUNTRIES FOR
REEFING.
(a) DEADLINE FOR PREPARATION.-Paragraph (1) of section
3504(b) of the Bob Stump National Defense Authorization Act for
H. R. 1588-405
Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2754; 16 U.S.C.
1220 note) is amended by striking "September 30, 2003," and
inserting "March 31, 2004,",
(b) GUIDANCE ON PRACTICES.-Such section is further
amended
(1) in paragraph (1), by inserting "guidance recommending"
after "jointly develop";
(2) in paragraph (2), by inserting "guidance recommending"
before "environmental best management practices";
(3) in paragraph (3}
(A) in subparagraph (A), by inserting "recommended"
after "include";
(B) by striking subparagraph (B) and inserting the
following new subparagraph (B):
"(B) promote consistent use of such practices nationwide;";
and
(C) in subparagraph (C), by striking "establish base
lines" and inserting "provide a basis"; and
(4) in paragraph (4), by striking "guidelines to be used
by" and inserting "guidance for".
(c) APPLICATIONS FOR PREPARATION OF VESSELS AS REEFS.
Such section is further amended
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following new para
graph (5):
"(5) Not later than March 31, 2004, the Secretary of Transpor
tation, acting through the Maritime Administration, and the
Administrator of the Environmental Protection Agency shall jointly
establish an application process for governments of States, common
wealths, and United States territories and possession, and foreign
governments, for the preparation of vessels for use as artificial
reefs, including documentation and certification requirements for
that application process.".
SEC. 3517. MAINTENANCE AND REPAIR REIMBURSEMENT PILOT PRO
GRAM.
(a) AUTHORITY TO ENTER AGREEMENTS.
(1)· IN GENERAL.-The Secretary of Transportation may
carry out a pilot program under which the Secretary may
enter into an agreement with a contractor under chapter 531
of title 46, United States Code, as amended by this Act,
regarding maintenance and repair of a vessel that is subject
to an operating agreement under that chapter.
(2) LIMITATION.-The Secretary may not require a person
to enter into an agreement under this section, including as
a condition of awarding an operating agreement to the person
under chapter 531 of title 46, United States Code, as amended
by this Act.
(b) TERMS OF AGREEMENT.-An agreement under this section
(1) shall require that except as provided in subsection
(c), all qualified maintenance or repair on the vessel shall
be performed in the United States;
(2) shall require that the Secretary shall reimburse the
contractor in accordance with subsection (d) for the costs of
qualified maintenance or repair performed in the United States;
and
H. R. 1588-406
(3) shall apply to maintenance and repair performed during
the 5-year period beginning on the date the vessel begins oper
ating under the operating agreement under chapter 531 of
title 46, United States Code.
(c) EXCEPTION TO REQUIREMENT TO PERFORM WORK IN THE
UNITED STATES.-A contractor shall not be required to have quali
fied maintenance or repair work performed in the United States
under this section, if the Secretary determines that
(1) there is no facility in the United States available to
perform the work; or
(2) there is not available to the Secretary sufficient funds
to pay reimbursement under subsection (d) with respect to
the work.
(d) REIMBURSEMENT.
(1) IN GENERAL.-The Secretary shall, subject to the avail
ability of appropriations, reimburse a contractor for costs
incurred by the contractor for qualified maintenance or repair
performed in the United States under this section.
(2) AMOUNT.-The amount of reimbursement shall be equal
to 80 percent of the difference between
(A) the fair and reasonable cost of obtaining the quali
fied maintenance or repair in the United States; and
(B) the fair and reasonable cost of obtaining the quali
fied maintenance or repair outside the United States, in
the geographic region in which the vessel generally oper
ates.
(3) DETERMINATION OF FAIR AND REASONABLE CosTs.-The
Secretary shall determine fair and reasonable costs for purposes
of paragraph (2).
(e) NOTIFICATION REQUIREMENTS.
(1) NOTIFICATION BY CONTRACTOR.-The Secretary is not
required to pay reimbursement to a contractor under this sec
tion for qualified maintenance or repair, unless the contractor
(A) notifies the Secretary of the intent of the contractor
to obtain the qualified maintenance or repair, by not later
than 180 days before the date of the performance of the
qualified maintenance or repair; and
(B) includes in such notification
(i) a description of all qualified maintenance or
repair that the contractor should reasonably expect
may be performed;
(ii) an estimate of the cost of obtaining such quali
fied maintenance or repair in the United States; and
(iii) an estimate of the cost of obtaining such quali
fied maintenance or repair outside the United States,
in the geographic region in which the vessel generally
operates.
(2) CERTIFICATION BY SECRETARY.-Not later than 60 days
after the date of receipt of notification under paragraph (1),
the Secretary shall certify to the contractor
(A) whether there is a facility in the United States
available to perform the qualified maintenance or repair
described in the notification by the contractor under para
graph (1); and
(B) whether there is available to the Secretary suffi
cient funds to pay reimbursement under subsection (d)
with respect to such work.
H. R. 1588-407
(f) QUALIFIED MAINTENANCE OR REPAIR DEFINED.-In this sec
tion the term "qualified maintenance or repair"
(1) except as provided in paragraph (2), means
(A) any inspection of a vessel that is
(i) required under chapter 33 of title 46, United
States Code; and
(ii) performed in the period in which the vessel
is subject to an agreement under this section; and
(B) any maintenance or repair of a vessel that is deter
mined, in the course of an inspection referred to in subpara
graph (A), to be necessary to comply with the laws of
the United States; and
(2) does not include-
(A) routine maintenance or repair; or
(B) any emergency work that is necessary to enable
a vessel to return to a port in the United States.
(g) ANALYSIS.
(1) IN GENERAL.-Not later than October 1, 2004, the Sec
retary of Transportation shall submit to the Committee on
Armed Services of the House of Representatives and the Com
mittee on Armed Services and the Committee on Commerce,
Science, and Transportation of the Senate, an analysis of the
need for agreements authorized by this section.
(2) CONDUCT AND CONSIDERATIONs.-In conducting the
analysis, the Secretary shall consider the overall costs and
benefits of the pilot program, including the following:
(A) The impact on operations of vessels in the program.
(B) The availability of repair shipyards and drydocks
in the various regions of the United States (as that term
is defined in such chapter) that are capable of handling
such vessels that are ocean-going vessels.
(C) The experience of such shipyards in repairing the
types of such vessels.
(D) A comparison of drydock and repair costs between
available United States and foreign shipyards located
within the geographic range of the trading area of such
vessels.
(E) A comparison of the time period required for the
drydocking and repair of such vessels between available
United States shipyards and foreign shipyards.
(F) The impact of the voyage deviation of such vessels
to United States shipyards. .
(G) The benefits to the Department of Defense of
having a vessel repair base in the United States to accel
erate the activation of the Ready Reserve Fleet.
(H) The benefits of extending the program to all vessels
that are subject to operating agreements under chapter
531 of title 46, United States Code, as amended by this
Act.
(3) RECOMMENDATIONS.-The Secretary shall include in the
analysis recommendations of any additional incentives that
are necessary to encourage participation in the program.
(h) AUTHORIZATION OF APPROPRlATIONS.-In addition to the
other amounts authorized by this subtitle, for reimbursement of
costs of qualified maintenance or repair under this section there
is authorized to be appropriated to the Secretary of Transportation
$19,500,000 for each of fiscal years 2006 through 2011.
H. R. 1588-408
Subtitle B-Amendments to Title XI Loan

Guarantee Program
SEC. 3521. EQUITY PAYMENTS BY OBUGOR FOR DISBURSEMENT PRIOR
TO TERMINATION OF ESCROW AGREEMENT.
(a) IN GENERAL.-Section 1108 of the Merchant Marine Act,
1936 (46 U.S.C. App. 1279a) is amended by adding at the end
the following:
"(g) PAYMENTS REQUIRED BEFORE DISBURSEMENT.
"(1) IN GENERAL.-No disbursement shall be made under
subsection (b) to any person until the total amount paid by
or for the account of the obligor from sources other than the
proceeds of the obligation equals at least 25 percent or 12Y2
percent, whichever is applicable under section 1104A, of the
aggregate actual cost of the vessel, as previously approved
by the Secretary. If the aggregate actual cost of the vessel
has increased since the Secretary's initial approval or if it
increases after the first disbur~ement is permitted under this
subsection, then no further disbursements shall be made under
subsection (b) until the total amount paid by or for the account
of the obligor from sources other than the proceeds of the
obligation equals at least 25 percent or 12% percent, as
applicable, of the increase, as determined by the Secretary,
in the aggregate actual cost of the vessel. Nothing in this
paragraph shall require the Secretary to consent to finance
any increase in actual cost unless the Secretary determines
that such an increase in the obligation meets all the terms
and conditions of this title or other applicable law.
"(2) DOCUMENTED PROOF OF PROGRESS REQUIREMENT.-The
Secretary shall, by regulation, establish a transparent, inde
pendent, and risk-based process for verifying and documenting
the progress of projects under construction before disbursing
guaranteed loan funds. At a minimum, the process shall require
documented proof of progress in connection with the construc
tion, reconstruction, or reconditioning of a vessel or vessels
before disbursements are made from the escrow fund. The
Secretary may require that the obligor provide a certificate
from an independent party certifying that the requisite progress
in construction, reconstruction, or reconditioning has taken
:elace .".
(b) DEFINITION OF ACTUAL COST.-Section 1101(f) of the Mer
chant Marine Act, 1936 (46 U.S.C. App. 1271(0) is amended to
read as follows:
"(f) ACTUAL COST DEFINED.-The term 'actual cost' means the
sum of
"(1) all amounts paid by or for the account of the obligor
as of the date on which a determination is made under section
1108(g)(1); and
"(2) all amounts that the Secretary reasonably estimates
that the obligor will become obligated to pay from time to
time thereafter, for the construction, reconstruction, or recondi
tioning of the vessel, including guarantee fees that will become
payable under section 1104A(e) in connection with all obliga
tions issued for construction, reconstruction, or reconditioning
of the vessel or equipment to be delivered, and all obligations
issued for the delivered vessel or equipment.".
H. R. 1588--409
SEC. 3522. WAIVERS OF PROGRAM REQUIREMENTS.
Section 1l04A(d) of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1274(d» is amended by redesignating paragraph (4) as para
graph (5), and inserting after paragraph (3) the following:
"(4) The Secretary shall promulgate regulations concerning
circumstances under which waivers of or exceptions to other
wise applicable regulatory requirements concerning financial
condition can be made. The regulations shall require that
"(A) the economic soundness requirements set forth
in paragraph (1)(A) of this subsection are met after the
waiver of the financial condition requirement; and
"(B) the waiver shall provide for the imposition of
other requirements on the obligor designed to compensate
for the increased risk associated with the obligor's failure
to meet regulatory requirements applicable to financial
condition.".
SEC. 3523. PROJECT MONITORING.
(a) PROJECT MONITORING.-Section 1l04A of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1274) is amended by adding
"(k) MONITORING.-The Secretary shall monitor the financial
conditions and operations of the obligor on a regular basis during
the term of the guarantee. The Secretary shall document the results
of the monitoring on an annual or quarterly basis depending upon
the condition of the obligor. If the Secretary determines that the
financial condition of the obligor warrants additional protections
to the Secretary, then the Secretary shall take appropriate action
under subsection (m) of this section. If the Secretary determines
that the financial condition of the obligor jeopardizes its continued
ability to perform its responsibilities in connection with the guar
antee of obligations by the Secretary, the Secretary shall make
an immediate determination whether default should take place
and whether further measures described in subsection (m) should
be taken to protect the interests of the Secretary while insuring
that program objectives are met.".
(b) SEPARATION OF DUTIES AND OTHER REQUIREMENTS.-Section
1l04A of the Merchant Marine Act, 1936 (46 U.S.C. App. 1274),
as amended by subsection (a), is further amended by adding at
the end the following:
"(1) REVIEW OF APPLICATIONS.-No commitment to guarantee,
or guarantee of, an obligation shall be made by the Secretary
unless the Secretary certifies that a full and fair consideration
of all the regulatory requirements, including economic soundness
and financial requirements applicable to obligors and related par
ties, and a thorough assessment of the technical, economic, and
financial aspects of the loan application has been made.
"(m) AGREEMENT WITH OBLIGOR.-The Secretary shall include
provisions in loan agreements with obligors that provide additional
authority to the Secretary to take action to limit potential losses
in connection with defaulted loans or loans that are in jeopardy
due to the deteriorating financial condition of obligors. Provisions
that the Secretary shall include in loan agreements include require
ments for additional collateral or greater equity contributions that
are effective upon the occurrence of verifiable conditions relating
to the obligors fmancial condition or the status of the vessel or
shipyard project.".
H. R.1588-41O
SEC. 8524. DEFAULTS.

Section 1105 of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1275) is amended by adding at the end the following:
"(D DEFAULT RESPONsE.-In the event of default on an obliga
tion, the Secretary shall conduct operations under this title in
a manner which
"(1) maximizes the net present value return from the sale
or disposition of assets associated with the obligation, including
prompt referral to the Attorney General for collection as appro
priate;
"(2) minimizes the amount of any loss realized in the resolu
tion of the guarantee;
"(3) ensures adequate competition and fair and consistent
treatment of offerors; and
"(4) requires appraisal of assets by an independent
appraiser.".
SEC. 3525. DECISION PERIOD.
Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1274), as amended by section 3523, is amended by adding
"(n) DECISION PERIOD.
"(1) IN GENERAL.-The Secretary of Transportation shall
approve or deny an application for a loan guarantee under
this title within 270 days after the date on which the signed
application is received by the Secretary.
"(2) EXTENSION.-Upon request by an applicant, the Sec
retary may extend the 270-day period in paragraph (1) to
a date not later than 2 years after the date on which the
signed application for the loan guarantee was received by the
Secretary.".
SEC. 3526. LOAN GUARANTEES.
Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1274) is amended
(1) by striking subsection (d)(5); and
(2) in subsection (f)
(A) by striking "(including for obtaining independent
analysis under subsection (d)(4»";
(B) by inserting "(1)" after "(f)"; and
(C) by adding at the end the following:
"(2) The Secretary may make a determination that aspects
of an application under this title require independent analysis to
be conducted by third party experts due to risk factors associated
with markets, technology, financial structures, or other risk factors
identified by the Secretary. Any independent analysis conducted
pursuant to this provision shall be performed by a party chosen
by the Secretary.
"(3) Notwithstanding any other provision of this title, the Sec
retary may make a determination that an application under this
title requires additional equity because of increased risk factors
associated with markets, technology, financial structures, or other
risk factors identified by the Secretary.
"(4) The Secretary may charge and collect fees to cover the
costs of independent analysis under paragraph (2). Notwithstanding
section 3302 of title 31, United States Code, any fee collected
under this paragraph shall
H. R. 1588-411
"(A) be credit as an offsetting collection to the account
that fmances the administration of the loan guarantee program;
"(B) shall be available for expenditure only to pay the
costs of activities and services for which the fee is imposed;
and
"(C) shall remain available until expended.".
SEC. 3527. ANNUAL REPORT ON PROGRAM.
The Secretary of Transportation shall report to Congress
annually on the loan guarantee program under title XI of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.). The
reports shall include
(1) the size, in dollars, of the portfolio of loans guaranteed;
(2) the size, in dollars, of projects in the portfolio facing
financial difficulties;
(3) the number and type of projects covered;
(4) a profile of pending loan applications;
(5) the amount of appropriations available for new guaran
tees;
(6) a profile of each project approved since the last report;
and
(7) a profile of any defaults since the last report.
SEC. 3528. REVIEW OF PROGRAM.
(a) IN GENERAL.-The Secretary of Transportation shall conduct
a comprehensive assessment of the human capital and other
resource needs in connection with the title XI loan guarantee pro
gram under the Merchant Marine Act, 1936 (46 U.S.C. App. 1271
et seq.). In connection with this assessment, the Secretary shall
develop an organizational framework for the program offices that
insures that a clear separation of duties is established among
the loan application, project monitoring, and default management
functions.
(b) PROGRAM ENHANCEMENTS.
(1) Section l103(h)(1) of the Merchant Marine Act, 1936
(46 U.S.C. App. 1273(h)(1» is amended
(A) by striking "subsection" in subparagraph (A) and
inserting "subsection, and update annually,";
(B) by inserting "annually" before "determine" in
subparagraph (B);
(C) by striking "and" after the semicolon in subpara
graph (A);
(D) by striking "category." in subparagraph (B) and
inserting "category; and"; and
(E) by adding at the end the following:
"(C) ensure that each risk category is comprised of
loans that are relatively homogeneous in cost and share
characteristics predictive of defaults and other costs, given
the facts known at the time of obligation or commitment,
using a risk category system that is based on historical
analysis of program data and statistical evidence con
cerning the likely costs of defaults or other costs that
expected to be associated with the loans in the category.".
(2) Section 1103(h)(2)(A) of that Act (46 U.S.C. App.
1273(h)(2)(A» is amended by inserting "and annually for
projects subject to a guarantee," after "obligation,".
(3) Section l103(h)(3) of that Act (46 U.S.C. App. 1273(h)(3»
is amended by adding at the end the following:
H. R. 1588-412
"(K) A risk factor for concentration risk reflecting the
risk presented by an unduly large percentage of loans
outstanding by any 1 borrower or group of affiliated bor
rowers.".
(c) REPORT.-The Secretary shall report to the Committee on
Armed Services and the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Armed Services
of the House of Representatives on the results of the development
of an organizational framework under subsection (a) by January
2,2004.
Subtitle C-Maritime Security Fleet

SEC. 3531. ESTABLISHMENT OF MARITIME SECURITY FLEET.
(a) IN GENERAL.-Title 46, United States Code, is amended
by inserting before subtitle VI the following new subtitle:
"Subtitle V-Merchant Marine
"Chap. Sec.
"531. Maritime Security Fleet 53101
"CHAPTER S31-MARITIME SECURITY FLEET
"Sec.
"53101. Definitions.
"53102. Establishment of Maritime Security Fleet.
"53103. Award of operating agreements.
"53104. Effectiveness of operating agreements.
"53105. Obligations and rights under operating agreements.
"53106. Payments.
"53107. National security requirements.
"53108. Regulatory relief.
"53109. Special rule regarding age of participating fleet vessel.
"53110. Regulations.
"53111. Authorization of appropriations.
"§ 53101. Definitions

"In this chapter:
"(1) BULK CARGO.-The term 'bulk cargo' means cargo that
is loaded and carried in bulk without mark or count.
"(2) CONTRACTOR.-The term 'contractor' means an owner
or operator of a vessel that enters into an operating agreement
for the vessel with the Secretary under section 53103.
"(3) FLEET.-The term 'Fleet' means the Maritime Security
Fleet established under section 53102(a).
"(4) FOREIGN COMMERCE.-The term 'foreign commerce'
"(A) subject to subparagraph (B), means
"(i) commerce or trade between the United States,
its territories or possessions, or the District of
Columbia, and a foreign country; and
"(ii) commerce or trade between foreign countries;
and
"(B) includes, in the case of liquid and dry bulk cargo
carrying services, trading between foreign ports in accord
ance with normal commercial bulk shipping practices in
such manner as will permit United States-documented ves
sels freely to compete with foreign-flag bulk carrying ves
sels in their operation or in competing for charters, subject
to rules and regulations promulgated by the Secretary of
H. R. 1588-413
Transportation pursuant to this chapter or subtitle D of
the Maritime Security Act of 2003.
"(5) LASH VESSEL.-The term 'LASH vessel' means a
lighter aboard ship vessel.
"(6) PARTICIPATING FLEET VESSEL.-The term 'participating
fleet vessel' means any vessel that
"(A) on October 1, 2005
"(i) meets the requirements of paragraph (1), (2),
(3), or (4) of section 53102(c); and
"(ii) is less than 25 years of age, or less than
30 years of age in the case of a LASH vessel; and
"(B) on December 31, 2004, is covered by an operating
agreement under subtitle B of title VI of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1187 et seq.).
"(7) PERSON.-The term 'person' includes corporations, part
nerships, and associations existing under or authorized by the
laws of the United States, or any State, Territory, District,
or possession thereof, or of any foreign country.
"(8) PRODUCT TANK VESSEL.-The term 'product tank vessel'
means a double hulled tank vessel capable of carrying simulta
neously more than 2 separated grades of refined petroleum
products.
"(9) SECRETARY.-The term 'Secretary' means the Secretary
of Transportation.
"(10) TANK VESSEL.-The term 'tank vessel' has the
meaning that term has under section 2101 of this title.
"(11) UNITED STATES.-The term 'United States' includes
the District of Columbia, the Commonwealth of Puerto Rico,
the Northern Mariana Islands, Guam, American Samoa, the
Virgin Islands.
"(12) UNITED STATES CITIZEN TRUST.-(A) Subject to
subparagraph (C), the term 'United States citizen trust' meanS
a trust that is qualified under this paragraph.
"(B) A trust is qualified under this paragraph with respect
to a vessel only if
"(i) each of the trustees is a citizen of the United
States; and
"(ii) the application for documentation of the vessel
under chapter 121 of this title includes the affidavit of
each trustee stating that the trustee is not aware of any
reason involving a beneficiary of the trust that is not
a citizen of the United States, or involving any other person
that is not a citizen of the United States, as a result
of which the beneficiary or other person would hold more
than 25 percent of the aggregate power to influence or
limit the exercise of the authority of the trustee with
respect to matters involving any ownership or operation
of the vessel that may adversely affect the interests of
the United States.
"(C) If any person that is not a citizen of the United
States has authority to direct or participate in directing a
trustee for a trust in matters involving any ownership or oper
ation of the vessel that may adversely affect the interests
of the United States or in removing a trustee for a trust
without cause, either directly or indirectly through the control
of another person, the trust is not qualified under this para
graph unless the trust instrument provides that persons who
H. R. 1588--414
are not citizens of the United States may not hold more than
25 percent of the aggregate authority to so direct or remove
a trustee.
"(D) This paragraph shall not be considered to prohibit
a person who is not a citizen of the United States from holding
more than 25 percent of the beneficial interest in a trust.
"(13) UNITED STATES-DOCUMENTED VESSEL.-The term
'United States-documented vessel' means a vessel documented
under chapter 121 ofthis title.
"§ 53102. Establishment of Maritime Security Fleet
"(a) IN GENERAL.-The Secretary of Transportation, in consulta
tion with the Secretary of Defense, shall establish a fleet of active,
commercially viable, militarily useful, privately owned vessels to
meet national defense and other security requirements and main
tain a United States presence in international commercial shipping.
The Fleet shall consist of privately owned, United States-docu
mented vessels for which there are in effect operating agreements
under this chapter, and shall be known as the Maritime Security
Fleet.
"(b) VESSEL ELIGIBILITY.-A vessel is eligible to be included
in the Fleet if
"(1) the vessel meets the requirements of paragraph (I),
(2), (3), or (4) of subsection (c);
"(2) the vessel is operated (or in the case of a vessel
to be constructed, will be operated) in providing transportation
in foreign commerce;
"(3) the vessel is self-propelled and is
"(A) a roll-on/roll-off vessel with a carrying capacity
of at least 80,000 square feet or 500 twenty-foot equivalent
units and that is 15 years of age or less on the date
the vessel is included in the Fleet;
"(B) a tank vessel that is constructed in the United
States after the date of the enactment of this chapter;
"(C) a tank vessel that is 10 years of age or less
on the date the vessel is included in the Fleet;
"(D) a LASH vessel that is 25 years of age or less
on the date the vessel is included in the Fleet; or
. "(E) any other type of vessel that is 15 years of age
or less on the date the vessel is included in the Fleet;
"(4) the vessel is
"(A) determined by the Secretary of Defense to be
suitable for use by the United States for national defense
or military purposes in time of war or national emergency;
and
"(B) determined by the Secretary to be commercially
viable; and
"(5) the vessel
"(A) is a United States-documented vessel; or
"(B) is not a United States-documented vessel, but
"(i) the owner of the vessel has demonstrated an

intent to have the vessel documented under chapter
121 of this title if it is included in the Fleet; and
"(ii) at the time an operating agreement for the
vessel is entered into under this chapter, the vessel
is eligible for documentation under chapter 121 of this
title.
H. R. 1588-415
"(c) REQUIREMENTS REGARDING CITIZENSHIP OF OWNERS,
CHARTERERS, AND OPERATORS.
"(1) VESSEL OWNED AND OPERATED BY SECTION 2 CITIZENS.
A vessel meets the requirements of this paragraph if, during
the period of an operating agreement under this chapter that
applies to the vessel, the vessel will be owned and operated
by one or more persons that are citizens of the United States
under section 2 of the Shipping Act, 1916 (46 U.S.C. App.
802).
"(2) VESSEL OWNED BY SECTION 2 CITIZEN OR UNITED STATES
CITIZEN TRUST, AND CHARTERED TO DOCUMENTATION CITIZEN.
A vessel meets the requirements of this paragraph if
"(A) during the period of an operating agreement under
this chapter that applies to the vessel, the vessel' will
be
"(i) owned by a person that is a citizen of the
United States under section 2 of the Shipping Act,
1916 (46 U.S.C. App. 802) or that is a United States
citizen trust; and
"(ii) demise chartered to a person
"(1) that is eligible to document the vessel
under chapter 121 of this title;
"(II) the chairman of the board of directors,
chief executive officer, and a majority of the mem
bers of the board of directors of which are citizens
of the United States under section 2 of the Ship
ping Act, 1916 (46 U.S.C. App. 802), and are
appointed and subjected to removal only upon
approval by the Secretary; and
"(III) that certifies to the Secretary that there
are no treaties, statutes, regulations, or other laws
that would prohibit the contractor for the vessel
from performing its obligations under an operating
agreement under this chapter;
"(B) in the case of a vessel that will be demise chartered
to a person that is owned or controlled by another person
that is not a citizen of the United States under section
2 of the Shipping Act, 1916 (46 U.S.C. App. 802), the
other person enters into an agreement with the Secretary
not to influence the operation of the vessel in a manner
that will adversely affect the interests of the United States;
and.
"(C) the Secretary and the Secretary of Defense notify
the Committee on Armed Services and the Committee on
Commerce, Science, and Transportation of the Senate and
the Committee on Armed Services of the House of Rep
resentatives that they concur with the certification required
under subparagraph (A)(ii)(lII), and have reviewed and
agree that there are no other legal, operational, or other
impediments that would prohibit the contractor for the
vessel from performing its obligations under an operating
agreement under this chapter.
"(3) VESSEL OWNED AND OPERATED BY DEFENSE CON
TRACTOR.-A vessel meets the requirements of this paragraph
if
H. R. 1588-416
"(A) during the period of an operating agreement under
this chapter that applies to the vessel, the vessel will
be owned and operated by a person that
"(i) is eligible to document a vessel under chapter
121 of this title;
"(ii) operates or manages other United States-docu
mented vessels for the Secretary of Defense, or charters
other vessels to the Secretary of Defense;
"(iii) has entered into a special security agreement
for purposes of this paragraph with the Secretary of
Defense;
"(iv) makes the certification described in paragraph
(2)(A)(ii)(I1I); and
"(v) in the case of a vessel described in paragraph
(2)(B), enters into an agreement referred to in that
paragraph; and
"(B) the Secretary and the Secretary of Defense notify
the Committee on Armed Services and the Committee on
Commerce, Science, and Transportation of the Senate and
the Committee on Armed Services of the House of Rep
resentatives that they concur with the certification required
under subparagraph (A)(iv), and have reviewed and agree
that there are no other legal, operational, or other impedi
ments that would prohibit the contractor for the vessel
from performing its obligations under an operating agree
ment under this chapter.
"(4) VESSEL OWNED BY DOCUMENTATION CITIZEN AND CHAR
TERED TO SECTION 2 CITIZEN.-A vessel meets the requirements

of this paragraph if, during the period of an operating agree
ment under this chapter that applies to the vessel, the vessel
will be
"(A) owned by a person that is eligible to document
a vessel under chapter 121 of this title; and
"(B) demise chartered to a person that is· a citizen
of the United States under section 2 of the Shipping Act,
1916 (46 U.S.C. App. 802).
"(d) RE.QUEST BY SECRETARY OF DEFENSE.-The Secretary of
Defense shall request the Secretary of Homeland Security to issue
any waiver under the first section of Public Law 81-891 (64 Stat.
1120; 46 U.S.C. App. note prec. 3) that is necessary for purposes
of this chapter.
"(e) VESSEL STANDARDS.
"(1) CERTIFICATE OF INSPECTION.-A vessel used to provide
oceangoing transportation which the Secretary of the depart
ment in which the Coast Guard is operating determines meets
the criteria of subsection (b) of this section but which, on
the date of enactment of the Maritime Security Act of 2003,
is not a documented vessel (as that term is defined in section
12101 of this title) shall be eligible for a certificate of inspection
if the Secretary determines that
"(A) the vessel is classed by and designed in accordance
with the rules of the American Bureau of Shipping, or
another classification society accepted by the Secretary;
"(B) the vessel complies with applicable international
agreements and associated guidelines, as determined by
H.R.1588-417
the country in which the vessel was documented imme
diately before becoming a documented vessel (as defined
in that section); and
"(C) that country has not been identified by the Sec
retary as inadequately enforcing international vessel regu
lations as to that vessel.
"(2) CONTINUED ELIGIBILITY FOR CERTIFICATE.-Paragraph
(1) does not apply to a vessel after any date on which the
vessel fails to comply with the applicable international agree
ments and associated guidelines referred to in paragraph (l)(B).
"(3) RELIANCE ON CLASSIFICATION SOCIETY.
"(A) IN GENERAL.-The Secretary may rely on a certifi
cation from the American Bureau of Shipping or, subject
to subparagraph (B), another classification society accepted
by the Secretary to establish that a vessel is in compliance
with the requirements of paragraphs (1) and (2).
"(B) FOREIGN CLASSIFICATION SOClETY.-The Secretary
may accept certification from a foreign classification society
under subparagraph (A) only
"(i) to the extent that the government of the foreign
country in which the society is headquartered provides
access on a reciprocal basis to the American Bureau
of Shipping; and
"(ii) if the foreign classification society has offices
and maintains records in the United States.
"(0 WAIVER OF AGE RESTRICTION.-The Secretary of Defense,
in conjunction with the Secretary of Transportation, may waive
the application of an age restriction under subsection (b)(3) if the
Secretaries jointly determine that the waiver
"(1) is in the national interest;
"(2) is appropriate to allow the maintenance ofthe economic
viability of the vessel and any associated operating network;
and
"(3) is necessary due to the lack of availability of other
vessels and operators that comply with the requirements of
this chapter.
"§ 53103. Award of operating agreements
"(a) IN 'GENERAL.-The Secretary shall require, as a condition
of including any vessel in the Fleet, that the person that is the
owner or operator of the vessel for purposes of section 53102(c)
enter into an operating agreement with the Secretary under this
section.
"(b) PROCEDURE FOR APPLICATIONS.
"(1) ACCEPTANCE OF APPLICATIONs.-Beginning no later
than 30 days after the effective date of this chapter, the Sec
retary shall accept applications for enrollment of vessels in
the Fleet.
"(2) ACTION ON APPLICATIONS.-Within 90 days after receipt
of an application for enrollment of a vessel in the Fleet, the
Secretary shall approve the application in conjunction with
the Secretary of Defense, and shall enter into an operating
agreement with the applicant, or provide in writing the reason
for denial of that application.
"(3) PARTICIPATING FLEET VESSELS.
"(A) IN GENERAL.-The Secretary shall accept an
application for an operating agreement for a participating
H.R.1588-418
fleet vessel under the priority under subsection (c)(l)(B)
only from a person that has authority to enter into an
operating agreement for the vessel with respect to the
full term of the operating agreement.
"(B) VESSEL UNDER DEMISE CHARTER.-For purposes
of subparagraph (A), in the case of a vessel that is subject
to a demise charter that terminates by its terms on Sep
tember 30, 2005 (without giving effect to any extension
provided therein for completion of a voyage or to effect
the actual redelivery of the vessel), or that is terminable
at will by the owner of the vessel after such date, only
the owner of the vessel shall be treated as having the
authority referred to in paragraph (1).
"(C) VESSEL OWNED BY UNITED STATES CITIZEN TRUST.
For purposes of subparagraph (B), in the case of a vessel
owned l:iy a United States citizen trust, the term 'owner
of the vessel' includes a beneficial owner of the vessel
with respect to such trust.
"(c) PRIORITY FOR AWARDING AGREEMENTS.
"(1) IN GENERAL.-Subject to the availability of appropria
tions, the Secretary shall enter into operating agreements
according to the following priority:
"(A) NEW TANK VESSELS.-First, for any tank vessel
that
"(i) is constructed in the United States after the
effective date ofthis chapter;
"(ii) is eligible to be included in the Fleet under
section 53102(b); and
"(iii) during the period of an operating agreement
under this· chapter that applies to the vessel, will be
owned and operated by one or more persons that are
citizens of the United States under section 2 of the
Shipping Act, 1916 (46 U.S.C. App. 802),
except that the Secretary shall not enter into operating
agreements under this subparagraph for more than 5 such
vessels.
"(B) PARTICIPATING FLEET VESSELs.-8econd, to the
extent amounts are available after applying subparagraphs
(A); for any participating fleet vessel, except that the Sec
retary shall not enter into operating agreements under
this subparagraph for more than 47 vessels.
"(C) CERTAIN VESSELS OPERATED BY SECTION 2 CITI
ZENS.-Third, to the extent amounts are available after
applying subparagraphs (A) and (B), for any other vessel
that is eligible to be included in the Fleet under section
53102(b), and that, during the period of an operating agree
ment under this chapter that applies to the vessel, will
be
"(i) owned and operated by one or more persons
that are citizens of the United States under section
2 of the Shipping Act, 1916 (46 U.S.C. App. 802);
or
"(ii) owned by a person that is eligible to document
the vessel under chapter 121 of this title, and operated
by a person that is a citizen of the United States
under section 2 of the Shipping Act, 1916 (46 U.S.C.
App.802).
H. R. 1588-419
"(D) OTHER ELIGIBLE VESSELS.-Fourth, to the extent
amounts are available after applying subparagraphs (A),
(B), and (C), for any other vessel that is eligible to be
included in the Fleet under section 53102(b).
"(2) REDUCTION IN NUMBER OF SLOTS FOR PARTICIPATING
FLEET VESSELS.-The number in paragraph (1)(B) shall be
reduced by 1
"(A) for each participating fleet vessel for which an
application for enrollment in the Fleet is not received by
the Secretary within the 90-day period beginning on the
effective date ofthis chapter; and
"(B) for each participating fleet vessel for which an
application for enrollment in the Fleet received by the
Secretary is not approved by the Secretary and the Sec
retary of Defense within the 90-day period beginning on
the date of such receipt.
"(3) DISCRETION WITHIN PRIORITY.-The Secretary
"(A) subject to subparagraph (B), may award operating
agreements within each priority under paragraph (1) as
the Secretary considers appropriate; and
"(B) shall award operating agreement within a
priority
"(i) in accordance with operational requirements
specified by the Secretary of Defense;
"(ii) in the case of operating agreements awarded
under subparagraph (C) or (D) of paragraph (1),
according to applicants' records of owning and oper
ating vessels; and
"(iii) subject to the approval of the Secretary of
Defense.
"(4) TREATMENT OF TANK VESSEL TO BE REPLACED.-(A)
For purposes of the application of paragraph (1)(A) with respect
to the award of an operating agreement, the Secretary may
treat an existing tank vessel that is eligible to be included
in the Fleet under section 53102(b) as a vessel that is con
structed in the United States after the effective date of this
chapter, if
"(i) a binding contract for construction in the United
States of a replacement vessel to be operated under the
operating agreement is executed by not later than 9 months
after the first date amounts are available to carry out
this chapter; and .
"(ii) the replacement vessel is eligible to be included
in the Fleet under section 53102(b).
"(B) No payment under this chapter may be made for
an existing tank vessel for which an operating agreement is
awarded under this paragraph after the earlier of
"(i) 4 years after the first date amounts are available
to carry out this chapter; or
"(ii) the date of delivery of the replacement tank vessel.
"(d) LIMITATION.-The Secretary may not award operating
agreements under this chapter that require payments under section
53106 for a fiscal year for more than 60 vessels.
"§ 53104. Effectiveness of operating agreements
"(a) EFFECTIVENESS, GENERALLY.-The Secretary may enter
into an operating agreement under this chapter for fiscal year
H. R. 1588-420
2006. Except as provided in subsection (b), the agreement shall
be effective only for 1 fiscal year, but shall be renewable, subject
to the availability of appropriations, for each subsequent fiscal
year through the end of fiscal year 2015.
"(b) VESSELS UNDER CHARTER TO UNITED STATES.-Unless an
earlier date is requested by the applicant, the effective date for
an operating agreement with respect to a vessel that is, on the
date of entry into an operating agreement, on charter to the United
States Government, other than a charter pursuant to an Emergency
Preparedness Agreement under section 53107, shall be the expira
tion or termination date of the Government charter covering the
vessel, or any earlier date the vessel is withdrawn from that charter.
"(c) TERMINATION.
"(1) TERMINATION BY SECRETARY.-If the contractor with
respect to an operating agreement materially fails to comply
with the terms of the agreement
"(A) the Secretary shall notify the contractor and pro
vide a reasonable opportunity to comply with the operating
agreement;
"(B) the Secretary shall terminate the operating agree
ment if the contractor fails to achieve such compliance;
and
"(C) upon such termination, any funds obligated by
the agreement shall be available to the Secretary to carry
out this chapter.
"(2) EARLY TERMINATION BY CONTRACTOR, GENERALLY.
An operating agreement under this chapter shall terminate
on a date specified by the contractor if the contractor notifies
the Secretary, by not later than 60 days before the effective
date of the termination, that the contractor intends to terminate
the agreement.
"(3) EARLY TERMINATION BY CONTRACTOR, WITH AVAILABLE
REPLACEMENT.-An operating agreement under this chapter
shall terminate upon the expiration of the 3-year period begin
ning on the date a vessel begins operating under the agreement,
if
"(A) the contractor notifies the Secretary, by not later
than 2 years after the date the vessel begins operating
under the agreement, that the contractor intends to termi
nate the agreement under this paragraph; and
"(B) the Secretary, in conjunction with the Secretary
of Defense, determines that
"(i) an application for an operating agreement
under this chapter has been received for a replacement
vessel that is acceptable to the Secretaries; and
"(ii) during the period of an operating agreement
under this chapter that applies to the replacement
vessel, the replacement vessel will be
"(1) owned and operated by one or more per
sons that are citizens of the United States under
section 2 of the Shipping Act, 1916 (46 U.S.C.
App. 802); or
"(II) owned by a person that is eligible to
document the vessel under chapter 121 of this
title, and operated by a person that is a citizen
of the United States under section 2 of the Ship
ping Act, 1916 (46 U.S.C. App. 802).
H. R. 1588-421
"(d) NONRENEWAL FOR LACK OF FUNDS.-If, by the first day
of a fiscal year, sufficient funds have not been appropriated under
the authority provided by this chapter for that fiscal year, then
the Secretary shall notify the Committee on Armed Services and
the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Armed Services of the House of
Representatives that operating agreements authorized under this
chapter for which sufficient funds are not available will not be
renewed for that fiscal year if sufficient funds are not appropriated
by the 60th day of that fiscal year.
"(e) RELEASE OF VESSELS FROM OBLIGATIONS.-If an operating
agreement under this chapter is terminated under subsection (c)(3),
or if funds are not appropriated for payments under an operating
agreement under this chapter for any fiscal year by the 60th day
of that fiscal year, then
"(1) each vessel covered by the operating agreement is
thereby released from any further obligation under the oper
ating agreement;
"(2) the owner or operator of the vessel may transfer and
register such vessel under a foreign registry that is acceptable
to the Secretary of Transportation and the Secretary of Defense,
notwithstanding section 9 of the Shipping Act, 1916 (46 U.S.C.
App. 808); and
"(3) if section 902 of the Merchant Marine Act, 1936 (46
U.S.C. App. 1242) is applicable to such vessel after registration
of the vessel under such a registry, then the vessel is available
to be requisitioned by the Secretary of Transportation pursuant
to section 902 of such Act.
"§ 53105. Obligations and rights under operating agreements
"(a) OPERATION OF VESSEL.-An operating agreement under
this chapter shall require that, during the period a vessel is oper
ating under the agreement-
"(1) the vessel
"(A) shall be operated exclusively in the foreign com
merce or in mixed foreign commerce and domestic trade
allowed under a registry endorsement issued under section
12105 ofthis title; and
, "(B) shall not otherwise be operated in the coastwise
trade; and
"(2) the vessel shall be documented under chapter 121
of this title.
"(b) ANNuAL PAYMENTS BY SECRETARY.
"(1) IN GENERAL.-An operating agreement under this
chapter shall require, subject to the availability of appropria
tions, that the Secretary make a payment each fiscal year
to the contractor in accordance with section 53106.
"(2) OPERATING AGREEMENT IS OBLIGATION OF UNITED
STATES GOVERNMENT.-An operating agreement under this
chapter constitutes a contractual obligation of the United States
Government to pay the amounts provided for in the agreement
to the extent of actual appropriations.
"(c) DOCUMENTATION REQUIREMENT.-Each vessel covered by
an operating agreement (including an agreement terminated under
section 53104(c)(2)) shall remain documented under chapter 121
of this title, until the date the operating agreement would terminate
according to its terms.
H. R. 1588-422
"(d) NATIONAL SECURITY REQUIREMENTS.
"(1) IN GENERAL.-A contractor with respect to an operating
agreement (including an agreement terminated under section
53104(c)(2)) shall continue to be bound by the provisions of
section 53107 until the date the operating agreement would
terminate according to its terms.
"(2) EMERGENCY PREPAREDNESS AGREEMENT.-All terms
and conditions of an Emergency Preparedness Agreement
entered into under section 53107 shall remain in effect until
the date the operating agreement would" terminate according
to its terms, except that the terms of such Emergency Prepared
ness Agreement may be modified by the mutual consent of
the contractor, the Secretary of Transportation, and the Sec
retary of Defense.
"(e) TRANSFER OF OPERATING AGREEMENTS.-A contractor under
an operating agreement may transfer the agreement (including
all rights and obligations under the agreement) to any person
that is eligible to enter into that operating agreement under this
chapter, if the transfer is approved by the Secretary and the Sec
retary of Defense.
"(f) REPLACEMENT VESSEL.-A contractor may replace a vessel
under an operating agreement with another vessel that is eligible
to be included in the Fleet under section 53102(b), if the Secretary,
in conjunction with the Secretary of Defense, approve replacement
of the vessel.
"§ 53106. Payments
"(a) ANNuAL PAYMENT.
"(1) IN GENERAL.-The Secretary, subject to the availability
of appropriations and the other provisions of this section, shall
pay to the contractor for an operating agreement, for each
vessel that is covered by the operating agreement, an amount
equal to
"(A) $2,600,000 for each of fiscal years 2006, 2007,
and 2008;
"(B) $2,900,000, for each of fiscal years 2009, 2010,
and 2011; and
. "(C) $3,100;000 for each fiscal years 2012, 2013, 2014,
and 2015.
"(2) TIMING.-The amount shall be paid in equal monthly
installments at the end of each month. The amount shall not
be reduced except as provided by this section.
"(b) CERTIFICATION REQUIRED FOR PAYMENT.-As a condition
of receiving payment under this section for a fiscal year for a
vessel, the contractor for the vessel shall certify, in accordance
with regulations issued by the Secretary, that the vessel has been
and will be operated in accordance with section 53105(a)(I) for
at least 320 days in the fiscal year. Days during which the vessel
is drydocked, surveyed, inspected, or repaired shall be considered
days of operation for purposes of this subsection.
"(c) GENERAL LIMITATIONS.-The Secretary of Transportation
shall not make any payment under this chapter for a vessel with
respect to any days for which the vessel is
"(1) under a charter to the United States Government,
other than a charter pursuant to an Emergency Preparedness
Agreement under section 53107;
--------------------~~--
H. R. 1588-423
"(2) not operated or maintained in accordance with an
operating agreement under this chapter; or
"(3) more than
"(A) 25 years of age, except as provided in subpara
graph (B) or (C);
"(B) 20 years of age, in the case of a tank vessel;
or
"(C) 30 years of age, in the case of a LASH vessel.
"(d) REDUCTIONS IN PAYMENTS.-With respect to payments
under this chapter for a vessel covered by an operating agreement,
the Secretary
"(1) except as provided in paragraph (2), shall not reduce
any payment for the operation of the vessel to carry military
or other preference cargoes under section 2631 of title 10,
United States Code, the Act of March 26, 1934 (46 U.S.C.
App. 1241-1), section 901(a), 901(b), or 901b of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1241(a), 1241(b), or 1241f),
or any other cargo preference law ofthe United States;
"(2) shall not make any payment for any day that the
vessel is engaged in transporting more than 7,500 tons of
civilian bulk preference cargoes pursuant to section 901(a),
90l(b), or 901b of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1241(a), 1241(b), or 1241f), that is bulk cargo; and
"(3) shall make a pro rata reduction in payment for each
day less than 320 in a fiscal year that the vessel is not operated
in accordance with section 53105(a)(1), with days during which
the vessel is drydocked or undergoing survey, inspection, or
repair considered to be days on which the vessel is operated.
"(e) LIMITATION REGARDING NONCONTIGUOUS DOMESTIC
TRADE.
"(1) IN GENERAL.-No contractor shall receive payments
pursuant to this chapter during a period in which it participates
in noncontiguous domestic trade.
"(2) LIMITATION ON APPLICATION.-Paragraph (1) shall not
apply to any person that is a citizen of the United States
within the meaning of section 2(c) of the Shipping Act, 1916
(46 U.S.C. App. 802(c).
"(3) PARTICIPATES IN A NONCONTIGUOUS DOMESTIC TRADE
DEFINED.-In this subsection the term 'participates in a non
contiguous domestic trade' means directly or indirectly owns,
charters, or operates a vessel engaged in transportation of
cargo between a point in the contiguous 48 States and a point
in Alaska, Hawaii, or Puerto Rico, other than a point in Alaska
north of the Arctic Circle.
"§ 53107. National security requirements
"(a) EMERGENCY PREPAREDNESS AGREEMENT REQUIRED.-The
Secretary shall establish an Emergency Preparedness Program
under this section that is approved by the Secretary of Defense.
Under the program, the Secretary, in conjunction with the Secretary
of Defense, shall include in each operating agreement under this
chapter a requirement that the contractor enter into an Emergency
Preparedness Agreement under this section with the Secretary.
The Secretary shall negotiate and enter into an Emergency
Preparedness Agreement with each contractor as promptly as prac
ticable after the contractor has entered into an operating agreement
under this chapter.
H. R. 1588--424
"(b) TERMS OF AGREEMENT.
"(1) IN GENERAL.-An Emergency Preparedness Agreement
under this section shall require that upon a request by the
Secretary of Defense during time of war or national emergency,
or whenever determined by the Secretary of Defense to be
necessary for national security or contingency operation (as
that term is defined in section 101 of title 10, United States
Code), a contractor for a vessel covered by an operating agree
ment under this chapter shall make available commercial
transportation resources (including services).
"(2) BASIC TERMS.-(A) The basic terms of the Emergency
Preparedness Agreement shall be established (subject to
subparagraph (B» by the Secretary and the Secretary of
Defense.
"(B) In any Emergency Preparedness Agreement, the Sec
retary and a contractor may agree to additional or modifying
terms appropriate to the contractor's circumstances if those
terms have been approved by the Secretary of Defense.
"(c) PARTICIPATION AFTER EXPIRATION OF OPERATING AGREE
MENT.-Except as provided by section 53105(d), the Secretary may
not require, through an Emergency Preparedness Agreement or
operating agreement, that a contractor continue to participate in
an Emergency Preparedness Agreement after the operating agree
ment with the contractor has expired according to its terms or
is otherwise no longer in effect. After expiration of an Emergency
Preparedness Agreement, a contractor may volunteer to continue
to participate in such an agreement.
"(d) RESOURCES MADE AVAILABLE.-The commercial transpor
tation resources to be made available under an Emergency
Preparedness Agreement shall include vessels or capacity in vessels,
intermodal systems and equipment, terminal facilities, intermodal
and management services, and other related services, or any agreed
portion of such nonvessel resources for activation as the Secretary
of Defense may determine to be necessary, seeking to minimize
disruption of the contractor's service to commercial shippers.
"(e) COMPENSATION.
"(1) IN GENERAL.-The Secretary shall include in each
Emergency Preparedness Agreement provisions approved by
the Secretary of Defense under which the Secretary of Defense
shall pay fair and reasonable compensation for all commercial
transportation resources provided pursuant to this section.
"(2) SPECIFIC REQUIREMENTS.-Compensation under this
subsection
"(A) shall not be less than the contractor's commercial
market charges for like transportation resources;
"(B) shall be fair and reasonable considering all cir
cumstances;
"(C) shall be provided from the time that a vessel
or resource is required by the Secretary of Defense until
the time that it is redelivered to the contractor and is
available to reenter commercial service; and
"(D) shall be in addition to and shall not in any way
reflect amounts payable under section 53106.
"(f) TEMPORARY REPLACEMENT VESSELS.-Notwithstanding sec
tion 2631 of title 10, United States Code, the Act of March 26,
1934 (46 U.S.C. App. 1241-1), section 90l(a), 901(b), or 901b of
H. R. 1588-425
the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(a), 1241(b),
or 1241£), or any other cargo preference law of the United States
"(1) a contractor may operate or employ in foreign com
merce a foreign-flag vessel or foreign-flag vessel capacity as
a temporary replacement for a United States-documented vessel
or United States-documented vessel capacity that is activated
by the Secretary of Defense under an Emergency Preparedness
Agreement or under a primary Department of Defense-approved
sealift readiness program; and
"(2) such replacement vessel or vessel capacity shall be
eligible during the replacement period to transport preference
cargoes subject to section 2631 of title 10, United States Code,
the Act of March 26,1934 (46 U.S.C. App. 1241-1), and sections
90l(a), 901(b), and 901b of the Merchant Marine Act, 1936
(46 U.S.C. App. 1241(a), 1241(b), and 1241b) to the same extent
as the eligibility of the vessel or vessel capacity replaced.
"(g) REDELIVERY AND LIABILITY OF UNITED STATES FOR DAM
AGES.
"(1) IN GENERAL.-All commercial transportation resources
activated under an Emergency Preparedness Agreement shall,
upon termination of the period of activation, be redelivered
to the contractor in the same good order and condition as
when received, less ordinary wear and tear, or the Secretary
of Defense shall fully compensate the contractor for any nec
essary repair or replacement.
"(2) LIMITATION ON LIABILITY OF u.s.-Except as may be
expressly agreed to in an Emergency Preparedness Agreement,
or as otherwise provided by law, the Government shall not
be liable for disruption of a contractor's commercial business
or other consequential damages to a contractor arising from
activation of commercial transportation resources under an
Emergency Preparedness Agreement.
"§ 53108. Regulatory relief
"(a) OPERATION IN FOREIGN COMMERCE.-A contractor for a
vessel included in an operating agreement under this chapter may
operate the, vessel in the foreign commerce of the United States
without restriction.
"(b) OTHER RESTRICTIONs.-The restrictions of section 901(b)(1)
of the Merchant Marine Act, 1936 (46 U.S.C. App. 124l(b)(1)) con
cerning the building, rebuilding, or documentation of a vessel in
a foreign country shall not apply to a vessel for any day the
operator of that vessel is receiving payments for operation of that
vessel under an operating agreement under this chapter.
"(c) TELECOMMUNICATIONS EQUIPMENT.-The telecommuni
cations and other electronic equipment on an existing vessel that
is redocumented under the laws of the United States for operation
under an operating agreement under this chapter shall be deemed
to satisfy all Federal Communications Commission equipment cer
tification requirements, if
"(1) such equipment complies with all applicable inter
national agreements and associated guidelines as determined
by the country in which the vessel was documented immediately
before becoming documented under the laws of the United
States;
H. R. 1588-426
"(2) that country has not been identified by the Secretary
as inadequately enforcing international regulations as to that
vessel; and
"(3) at the end of its useful life, such equipment will be
replaced with equipment that meets Federal Communications
Commission equipment certification standards.
"§ 53109. Special rule regarding age of participating fleet
vessel
"Any age restriction under section 53102(b)(3) or 53106(c)(3)
shall not apply to a participating fleet vessel during the 30-month
period beginning on the date the vessel begins operating under
an operating agreement under this title, if the Secretary determines
that the contractor for the vessel has entered into an arrangement
to obtain and operate under the operating agreement for the partici
pating fleet vessel a replacement vessel that, upon commencement
of such operation, will be eligible to be included in the Fleet under
section 53102(b).
"§ 53110. Regulations
"The Secretary and the Secretary of Defense may each prescribe
rules as necessary to carry out their respective responsibilities
under this chapter.
"§ 53111. Authorization of appropriations
"There are authorized to be appropriated for payments under
section 53106 to remain available until expended
"(1) $156,000,000 for each of fiscal years 2006, 2007, and
2008;
"(2) $174,000,000 for each of fiscal years 2009, 2010, and
2011; and
"(3) $186,000,000 for each fiscal year thereafter through
fiscal year 2015.".
(b) CONFORMING AMENDMENT.-The table of subtitles at the
beginning of title 46, United States Code, is amended by inserting
before the item relating to chapter VI the following:
''Y. MERCHANT MARINE 5310I".
SEC. 3532. RELATED AMENDMENTS TO EXISTING LAW.
(a) AMENDMENT TO SHIPPING ACT, 1916.-Section 9 of the Ship
ping Act, 1916 (46 U.S.C. App. 808) is amended
(1) by redesignating subsection (e), as added by section
1136(b) of Public Law 104-324 (110 Stat. 3987), as subsection
(f);and
(2) by amending subsection (e), as added by section 6
of Public Law 104-239 (110 Stat. 3132), to read as follows:
"(e) Notwithstanding subsection (c)(2), the Merchant Marine
Act, 1936, or any contract entered into with the Secretary of
Transportation under that Act, a vessel may be placed under a
foreign registry, without approval of the Secretary, if
"(l)(A) the Secretary, in conjunction with the Secretary
of Defense, determines that at least one replacement vessel
of equal or greater military capability and of a capacity that
is equivalent or greater, as measured by deadweight tons, gross
tons, or container equivalent units, as appropriate, is docu
mented under chapter 121 of title 46, United States Code,
H. R. 1588-427
by the owner of the vessel placed under the foreign registry;
and
"(B) the replacement vessel is not more than 10 years
of age on the date ofthat documentation; or
"(2) an operating agreement covering the vessel under
chapter 531 of title 46, United States Code, has expired.".
(b) MERCHANT MARINE ACT, 1936.-Bection 512 of the Merchant
Marine Act, 1936 (46 U.S.C. 1162) is amended
(1) by striking "Notwithstanding" and inserting "(a) Except
as provided in subsection (b), notwithstanding"; and
"(b)(I) Except as provided in paragraph (2), the restrictions
and requirements of section 506 shall terminate upon the expiration
of the 20-year period beginning on the date of the original delivery
of the vessel from the shipyard for operation of a vessel in any
domestic trade in which it has operated at any time since 1996.
"(2) Paragraph (1) shall not affect any requirement to make
payments under section 506.".
SEC. 3533. INTERIM RULES.
The Secretary of Transportation and the Secretary of Defense
may each prescribe interim rules necessary to carry out their respec
tive responsibilities under this subtitle and the amendments made
by this subtitle. For this purpose, the Secretaries are excepted
from compliance with the notice and comment requirements of
section 553 of title 5, United States Code. All interim rules pre
scribed under the authority of this section that are not earlier
superseded by final rules shall expire no later than 270 days after
the effective date of this subtitle.
SEC. 3534. REPEALS AND CONFORMING AMENDMENTS.
(a) REPEALs.-The following provisions are repealed:
(1) Subtitle B of title VI of the Merchant Marine Act,
1936 (46 U.S.C. App. 1187 et.seq.).
(2) Section 804 of the Merchant Marine Act, 1936 (46
U.S.C. App. 1222).
(b) CONFORMING AMENDMENTS.
(1) . Section 12102(d)(4) of title 46, United States Code,
is amended by inserting "or chapter 531 of title 46, United
States Code" after "Merchant Marine Act, 1936".
(2) Section 1137 of Public Law 104-324 (46 U.S.C. App.
1187 note) is amended by striking "section B51(b) of the Mer
chant Marine Act, 1936" and inserting "section 53102(b) of
title 46, United States Code".
SEC. 3535. GAO STUDY OF ADJUSTMENT OF OPERATING AGREEMENT
PAYMENT CRITERIA.
(a) IN GENERAL.-The Comptroller General of the United States
shall conduct a study of the potential impact of amending section
53106 of title 46, United States Code, as amended by this Act
(1) to increase or decrease the 7,500 ton limitation;
(2) to apply the limitation to bagged cargo as well as
bulk cargo; and
(3) to so modify the tonnage limitation and apply it to
bagged cargo as well as bulk cargo.
(b) MATTERS To BE ADORESSEO.
H. R. 1588-428
(1) SPECIFIC IMPACTS.-As part of the study required by

subsection (a), the Comptroller General shall address, in par
ticular, the impact of such amendments on
(A) the Maritime Security Fleet established under
chapter 531 of title 46, United States Code, as amended
by this Act;
(B) the civilian bulk cargo preference program under
section 90l(a), 901(b), or 901b of such Act (46 U.S.C. App.
1241(a), 124l(b), and 1241£); and
(C) operations of vessels under sections 901a through
901k of such Act (46 U.S.C. App. 1241e through 12410,
the Food for Peace Act of 1966 (7 U.S.C. 1707a(b)(8)),
or any other statute in pari materia.
(2) CERTAIN ASPECTS.-In carrying out paragraph (1), the
Comptroller General shall consider, among other matters
(A) increased or decreased costs to the overall cargo
preference program, including transportation costs (for both
land and water transportation);
(B) effects on ports;
(C) the number of shipments that would be affected;
(D) increased or decreased administrative and compli
ance burdens for carriers and Federal agencies; and
(E) increases or decreases in the number of United
States-flag operators participating in the cargo preference
program.
(3) BALANCING BENEFITS.-In the study, the Comptroller
General shall also address whether and how such amendments
could result in achieving an appropriate balance of benefits
between participants in the Maritime Security Fleet program
and participants in the cargo preference program.
(c) REPORT.-The Comptroller General shall transmit a report
of the study, including findings, conclusions, and recommendations
(including legislative recommendations, if any), to the Committee
on Armed Services of the House of Representatives and the Com
mittee on Armed Services and the Committee on Commerce,
Science, and Transportation of the Senate within 9 months after
the date of the enactment of this Act.
(d) AUTHORITY.-In order to conduct the study required by
subsection ea), the Comptroller General, or any of the Comptroller
General's duly authorized representatives, shall have access to any
books, accounts, documents, papers, and records that relate to the
information required to complete the study of owners or operators
of vessels- .
(1) under operating agreements under subtitle B of title
VI of the Merchant Marine Act, 1936 (46 U.S.C. App. 651
et seq.) or chapter 531 of title 46, United States Code, as
amended by this Act; and .
(2) that accept bulk cargo subject to the cargo preference
laws ofthe United States.
SEC. 8586. DEFINITIONS.
In this subtitle, the definitions set forth in section 53101 of
title 46, United States Code, as amended by this Act, shall apply.
SEC. 8587. EFFECTIVE DATES.
(a) IN GENERAL.-Except as provided in subsections (b) and
(c), this subtitle shall take effect October 1, 2004.
H. R. 1588-429
(b) REPEALS AND CONFORMING AMENDMENTS.-Section 3534
shall take effect October 1, 2005.
(c) OTHER PROVISIONS.-Sections 3533, 3535, and this section
shall take effect on the date of the enactment of this Act.
Subtitle D-National Defense Tank Vessel

Construction Assistance
SEC. 3541. NATIONAL DEFENSE TANK VESSEL CONSTRUCTION PRO·
GRAM.
The Secretary of Transportation shall establish a program for
the provision of financial assistance for the construction in the
United States of a fleet of up to 5 privately owned product tank
vessels
(1) to be operated in commercial service in foreign com
merce; and
(2) to be available for national defense purposes in time
of war or national emergency pursuant to an Emergency
Preparedness Plan approved by the Secretary of Defense pursu
ant to section 3543(e).
SEC. 3542. APPLICATION PROCEDURE.
(a) REQUEST FOR PROPOSALS.-Within 90 days after the date
of the enactment of this subtitle, and on an as-needed basis there
after, the Secretary, in consultation with the Secretary of Defense,
shall publish in the Federal Register a request for competitive
proposals for the construction of new product tank vessels necessary
to meet the commercial and national security needs of the United
States and to be built with assistance under this subtitle.
(b) QUALIFICATION.-Any citizen of the United States or any
shipyard in the United States may submit a proposal to the Sec
retary of Transportation for purposes of constructing a product
tank vessel with assistance under this subtitle.
(c) REQUIREMENT.-The Secretary, with the concurrence of the
Secretary of Defense, may enter into an agreement with the sub
mitter of a proposal for assistance under this subtitle if the Sec
retary determines that
(1) the plans and specifications call for construction of
a new product tank vessel of not less than 35,000 deadweight
tons and not greater than 60,000 deadweight tons, that
(A) will meet the requirements of foreign commerce;
(B) is capable of carrying militarily useful petroleum
products, and will be suitable for national defense or mili
tary purposes in time of war, national emergency, or other
military contingency; and
(C) will meet the construction standards necessary to
be documented under the laws of the United States;
(2) the shipyard in which the vessel will be constructed
has the necessary capacity and expertise to successfully con
struct the proposed number and type of product tank vessels
in a reasonable period of time as determined by the Secretary
of Transportation, taking into consideration the recent prior
commercial shipbuilding history of the proposed shipyard in
delivering a vessel or series of vessels on tIme and in accordance
with the contract price and specifications; and
H. R. 1588-430
(3) the person proposed to be the operator of the proposed
vessel possesses the ability, experience, financial resources, and
any other qualifications detennined to be necessary by the
Secretary for the operation and maintenance of the vessel.
(d) PRIORITY.-The Secretary
(1) subject to paragraph (2), shall give priority consideration
to a proposal submitted by a person that is a citizen of the
United States under section 2 of the Shipping Act, 1916 (46
U.S.C. App. 802); and
(2) may give priority to consideration of proposals that
provide the best value to the Government, taking into
consideration
(A) the costs of vessel construction; and
(B) the commercial and national security needs of the
United States.
SEC. 3543. AWARD OF ASSISTANCE.
(a) IN GENERAL.-If after review of a proposal, the Secretary
determines that the proposal fulfIlls the requirements under this
subtitle, the Secretary may enter into a contract with the proposed
purchaser and the proposed shipyard for the construction of a
product tank vessel with assistance under this subtitle.
(b) AMOUNT OF AsSISTANCE.-The contract shall provide that
the Secretary shall pay, subject to the availability of appropriations,
up to 75 percent of the actual construction cost of the vessel,
but in no case more than $50,000,000 per vessel.
(c) CONSTRUCTION IN UNITED STATES.-A contract under this
section shall require that construction of a vessel with assistance
under this subtitle shall be perfonned in a shipyard in the United
States.
(d) DOCUMENTATION OF VESSEL.
(1) CONTRACT REQUIRE~ENT.-A contract under this section
shall require that, upon delivery of a vessel constructed with
assistance under the contract, the vessel shall be documented
under chapter 121 of title 46, United States Code, with a
registry endorsement only.
(2) RESTRICTION ON COASTWISE ENDORSEMENT.-A vessel
constructed with assistance under this subtitle shall not be
eligible for a certificate of documentation with a coastwise
endorsement.
(3) AUTHORITY TO REFLAG NOT APPLICABLE.-Section 9(g)
of the Shipping Act, 1916, (46 U.S.C. App. 808(g)) shall not
apply to a vessel constructed with assistance under this subtitle.
(e) EMERGENCY PREPAREDNESS AGREEMENT.
(1) IN GENERAL.-A contract under this section shall require
that the person who will be the operator of a vessel constructed
with assistance under the contract shall enter into an Emer
gency Preparedness Agreement for the vessel under section
53107 of title 46, United States Code, as amended by this
Act.
(2) TREATMENT AS CONTRACTOR.-For purposes of the
application, under paragraph (1), of section 53107 of title 46,
United States Code, to a vessel constructed with assistance
under this subtitle, the tenn "contractor" as used in that section
means the person who will be the operator of a vessel con
structed with assistance under this subtitle.
H. R. 1588-431
(D ADDITIONAL TERMS.-The Secretary shall incorporate in the
contract the requirements set forth in this subtitle, and may incor
porate in the contract any additional terms the Secretary considers
necessary.
SEC. 3544. PRIORITY FOR TITLE XI ASSISTANCE.
Section 1103 of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1273) is amended by adding at the end the following:
"(i) PRlORlTY.-In guaranteeing and entering commitments to
guarantee under this section, the Secretary shall give priority to
guarantees and commitments for vessels that are otherwise eligible
for a guarantee under this section and that are constructed with
assistance under subtitle D of the Maritime Security Act of 2003.".
SEC. 3545. DEFINITIONS.
In this subtitle the definitions set forth in section 53101 of
title 46, United States Code, as amended by this Act, shall apply.
SEC. 3546. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this subtitle a total of $250,000,000 for fiscal years after
fiscal year 2004.
TITLE XXXVI-NUCLEAR SECURITY

INITIATIVE
Sec. 3601. Short title.
Subtitle A-Administration and Oversight of Threat Reduction and
Nonproliferation Programs
Sec. 3611. Management assessment of Department of Defense and Department of

Energy threat reduction and nonproliferation programs.
Subtitle B-Relations Between the United States and Russia
Sec. 3621. Comprehensive inventory of Russian tactical nuclear weapons.
Sec. 3622. Establishment of interparliamentary Threat Reduction Working Group.
Sec. 3623. Sense of Congress on cooperation by United States and NATO with Rus
sia on ballistic missile defenses.
Sec. 3624. Sense of Congress on enhanced collaboration to achieve more reliable
Russian early warning systems.
Subtitle C-Other Matters

Sec. 3631. Promotion of discussions on nuclear and radiological security and safety
between the International Atomic Energy Agency and the Organization
for Economic Cooperation and Development.
SEC. 3601. SHORT TITLE.
This title may be cited as the "Nuclear Security Initiative
Act of 2003".
H. R. 1588-432
Subtitle A-Administration and Oversight

of Threat Reduction and Nonprolifera
tion Programs
SEC. 3611. MANAGEMENT ASSESSMENT OF DEPARTMENT OF DEFENSE
AND DEPARTMENT OF ENERGY THREAT REDUCTION AND
(a) GAO AsSESSMENT REQUlRED.-The Comptroller General
shall carry out an assessment of the management of the threat
reduction and nonproliferation programs of the Department of
Defense and the Department of Energy. The matters assessed shall
include
(1) the effectiveness of the overall strategy used for man
aging such programs;
(2) the basis used to allocate the missions of such programs
among the executive departments and agencies;
(3) the criteria used to assess the effectiveness of such
programs;
(4) the strategy and process used to establish priorities
for activities carried out under such programs, including the
analysis of risks and benefits used in determining how best
to allocate the funds made available for such programs;
(5) the mechanisms used to coordinate the activities carried
out under such programs by the executive departments and
agencies so as to ensure efficient execution and avoid duplica
tion of effort; and
(6) the management controls used in carrying out such
programs and the effect of such controls on the execution of
such programs.
(b) CONSIDERATloNS.-In carrying out the assessment required
by subsection (a), the Comptroller General shall take into account
(1) the national security interests of the United States;
and
(2) the need for accountability in expenditure of funds
by the United States.
(c) REPORT.-Not later than May 1, 2004, the Comptroller Gen
eral shall submit a report On the assessment required by subsection
(a) to the Committee on Armed Services of the House of Representa
tives and the Committee on Armed Services of the Senate.
(d) DEFINlTlONS.-In this section:
(1) The term "threat reduction and nonproliferation pro
grams of the Department of Defense and the Department of
Energy" means
(A) the programs specified in section 1501(b) of the
(Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 note);
and
(B) any programs for which funds are made available
under the defense nuclear nonproliferation account of the
Department of Energy.
(2) The term "management controls" means any accounting,
oversight, or other measure intended to ensure that programs
are executed consistent with
(A) programmatic objectives as stated in budget jus
tification materials submitted to Congress (as submitted
H. R. 1588-433
with the budget of the President under section 1105(a)
oftitle 31, United States Code); and
(B) any restrictions related to such objectives as are
imposed by law.
Subtitle B-Relations Between the United

States and Russia
SEC. 3621. COMPREHENSIVE INVENTORY OF RUSSIAN TACTICAL
NUCLEAR WEAPONS.
(a) SENSE OF CONGRESS.-lt is the sense of Congress that
the United States should, to the extent the President considers
prudent, seek to work with the Russian Federation to develop
a comprehensive inventory of Russian tactical nuclear weapons.
(b) REPORT.-Not later than 12 months after the date of the
enactment of this Act, the President shall submit to Congress
a report, in both classified and unclassified form as necessary,
describing the progress that has been made toward creating such
an inventory.
SEC. 3622. ESTABLISHMENT OF INTERPARLIAMENTARY THREAT
REDUCTION WORKING GROUP.
(a) ESTABLISHMENT OF WORKING GRoUP.-There is hereby
established a working group to be known as the "Threat Reduction
Working Group" as an interparliamentary group of the Congress
of the United States and the legislature of the Russian Federation.
(b) PuRPOSE OF WORKING GRoUP.-The purpose of the working
group established by subsection (a) shall be to explore means to
enhance cooperation between the United States and the Russian
Federation with respect to nuclear nonproliferation and security
and such other issues related to reducing the dangers of weapons
of mass destruction as the members of the working group consider
appropriate.
(c) MEMBERSHIP.-(l) The majority leader of the Senate, after
consultation with the minority leader of the Senate, shall appoint
not more than 10 Senators to the working group established by
subsection (a).
(2) The 'Speaker of the House of Representatives, after consulta
tion with the minority leader of the House of Representatives,
shall appoint not. more than 30 Members of the House to the
working group.
SEC. 3623. SENSE OF CONGRESS ON COOPERATION BY UNITED STATES
AND NATO WITH RUSSIA ON BALLISTIC MISSILE
DEFENSES.
(a) SENSE OF CONGRESS.-lt is the sense of Congress that
the President should, in conjunction with the North Atlantic Treaty
Organization, encourage appropriate cooperative relationships
between the Russian Federation and the United States and North
Atlantic Treaty Organization with respect to the development and
deployment of ballistic missile defenses.
(b) REPORT TO CONGRESS.-Not later than one year after the
date of the enactment of this Act, the Secretary of Defense shall
transmit to the Committee on Armed Services of the Senate and
the Committee on Armed Services of the House of Representatives
a report (in unclassified or classified form as necessary) on the
H. R. 1588-434
feasibility of increasing cooperation between the Russian Federation
and the United States and the North Atlantic Treaty Organization
on the subject of ballistic missile defense. The report shall include
(1) the recommendations of the Secretary;
(2) a description of the threat such cooperation is intended
to address; and
(3) an assessment of possible benefits to ballistic missile
defense programs of the United States.
SEC. 3624. SENSE OF CONGRESS ON ENHANCED COLLABORATION TO
ACHIEVE MORE REUABLE RUSSIAN EARLY WARNING
SYSTEMS.
It is the sense of Congress that the President, to the extent
consistent with the national security interests ofthe United, States,
should
(1) encourage joint efforts by the United States and the
Russian Federation to reduce the probability of accidental
nuclear attack as a result of misinformation or miscalculation
by developing the capabilities and increasing the reliability
of Russian ballistic missile early-warning systems;
(2) encourage the development of joint programs by the
United States and the Russian Federation to ensure that the
Russian Federation has reliable information regarding launches
of ballistic missiles anywhere in the world; and
(3) pending the execution of a new agreement between
the United States and the Russian Federation providing for
the conduct of the Russian-American Observation Satellite
(RAMOS) program, ensure that funds appropriated for that
program for fiscal year 2004 are obligated and expended in
a manner that provides for the satisfactory continuation of
that program.
Subtitle C-Other Matters

SEC. 3631. PROMOTION OF DISCUSSIONS ON NUCLEAR AND RADIO·
LOGICAL SECURITY AND SAFETY BETWEEN THE INTER·
NATIONAL ATOMIC ENERGY AGENCY AND THE
,ORGANIZATION FOR ECONOMIC COOPERATION AND
DEVELOPMENT.
(a) SENSE OF CONGRESS REGARDING INITIATION OF DIALOGUE
BETWEEN THE IAEA AND THE OECD.-It is the sense of Congress
that- .
(1) the United States should seek to initiate discussions
between the International Atomic Energy Agency and the
Organization for Economic Cooperation and Development for
the purpose of exploring issues of nuclear and radiological
security and safety, including the creation of new sources of
revenue (including debt reduction) for states to provide nuclear
security; and
(2) the discussions referred to in paragraph (1) should
also provide a forum to explore possible sources of funds in
support of the G-8 Global Partnership Against the Spread
of Weapons and Materials of Mass Destruction.
(b) CONTINGENT REPORT.-(l) Except as provided in paragraph
(2), the President shall, not later than 12 months after the date
of the enactment of this Act, submit to Congress a report on
H. R. 1588-435
(A) the efforts made by the United States to initiate the
discussions described in subsection (a);
(B) the results of those efforts; and
(C) any plans for further discussions and the purposes
of such discussions.
(2) Paragraph (1) shall not apply if no efforts referred to in
paragraph (l)(A) have been made.
Speaker of the House of Representatives.
Vice President of the United States and

President of the Senate.
108TH CONGRESS} { REPORT
1st Session HOUSE OF REPRESENTATIVES 108-283
MAKING APPROPRIATIONS FOR THE DEPARTMENT OF

DEFENSE FOR THE FISCAL YEAR ENDING SEPTEMBER
30, 2004, AND FOR OTHER PURPOSES
SEPTEMBER 24, 2003.-Ordered to be printed
Mr. LEWIS of California, from the committee of conference,

submitted the following
CONFERENCE REPORT
[To accompany H.R. 2658]
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R. 2658)
"making appropriations for the Department of Defense for the fis
cal year ending September 30, 2004, and for otherjurposes", hav
ing met, after full and free conference, have agree to recommend
and do recommend to their respective Houses as follows:
That the House recede from its disagreement to the amend
ment of the Senate, and agree to the same with an amendment, as
follows:
In lieu of the matter stricken and inserted by said amendment,
insert:
That the following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending Sep
tember 30, 2004, for military functions administered by the Depart
ment of Defense, and for other purposes, namely:
TITLE I
MILITARY PERSONNEL
MIUTARY PERSONNEL, ARMY
For pay, allowances, individual clothing, subsistence, interest
on deposits, gratuities, permanent change of station travel (includ
ing all expenses thereof for organizational movements), and ex
penses of temporary duty travel between permanent duty stations,
for members of the Army on active duty, (except members of reserve
components provided for elsewhere), cadets, and aviation cadets;
89-422
2
and for payments pursuant to section 156 of Public Law 97-377, as
amended (42 U.S.C. 402 note), and to the Department of Defense
Military Retirement Fund, $28,247,667,000.
MILITARY PERSONNEL, NAVY
for members of the Navy on active duty (except members of the Re
serve provided for elsewhere), midshipmen, and aviation cadets; and
for payments pursuant to section 156 of Public Law 97-377, as
amended (42 U.S.C. 402 note), and to the Department of Defense
Military Retirement Fund, $23,217,298,000.
MILITARY PERSONNEL, MARINE CORPS
for members of the Marine Corps on active duty (except members of
the Reserve provided for elsewhere); and for payments pursuant to
section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note),
and to the Department of Defense Military Retirement Fund,
$8,971,897,000.
MILITARY PERSONNEL, AIR FORCE
for members of the Air Force on active duty (except members of re
serve components provided for elsewhere), cadets, and aviation ca
dets; and for payments pursuant to section 156 of Public Law 97
377, as amended (42 U.S.C. 402 note), and to the Department of De
fense Military Retirement Fund, $22,910,868,000.
RESERVE PERSONNEL, ARMY
For pay, allowances, clothing, subsistence, gratuities, travel,
and related expenses for personnel of the Army Reserve on active
duty under sections 10211, 10302, and 3038 of title 10, United
States Code, 'or while serving on active duty under section 12301(d)
of title 10, United States Code, in connection with performing duty
specified in section 1231O(a) of title 10, United States Code, ,or while
undergoing reserve training, or while performing drills or equiva
lent duty or other duty, and for members of the Reserve Officers'
Training Corps, and expenses authorized by section 16131 of title
10, United States Code; and for payments to the Department of De
RESERVE PERSONNEL, NAVY
and related expenses for personnel of the Navy Reserve on active
3
duty under section 10211 of title 10, United States Code, or while
serving on active duty under section 1230l(d) of title 10, United
States Code, in connection with performing duty specified in section
12310(a) of title 10, United States Code, or while undergoing reserve
training, or while performing drills or equivalent duty, and for
members of the Reserve Officers' Training Corps, and expenses au
thorized by section 16131 of title 10, United States Code; and for
payments to the Department of Defense Military Retirement Fund,
$2,002,727,000.
RESERVE PERSONNEL, MARINE CORPS
and related expenses for personnel of the Marine Corps Reserve on
active duty under section 10211 of title 10, United States Code, or
while serving on active duty under section 12301(d) of title 10,
United States Code, in connection with performing duty specified in
section 12310(a) of title 10, United States Code, or while undergoing
reserve training, or while performing drills or equivalent duty, and
for members of the Marine Corps platoon leaders class, and ex
penses authorized by section 16131 of title 10, United States Code;
and for payments to the Department of Defense Military Retirement
Fund, $571,444,000.
RESERVE PERSONNEL, AIR FORCE
and related expenses for personnel of the Air Force Reserve on active
duty under sections 10211, 10305, and 8038 of title 10, United
States Code, or while serving on active duty under section 1230l(d)
of title 10, United States Code, in connection with performing duty
specified in section 12310(a) of title 10, United States Code, or while
undergoing reserve training, or while performing drills or equiva
lent duty or other duty, and for members of the Air Reserve Officers'
Training Corps, and expenses authorized by section 16131 of title
10, United States Code; and for payments to the Department of De
NATIONAL GUARD PERSONNEL, ARMY
and related expenses for personnel of the Army National Guard
while on duty under section 10211, 10302, or 12402 of title 10 or
section 708 of title 32, United States Code, or while serving on duty
under section 1230l(d) of title 10 or section 502(fJ of title 32, United
States Code, in connection with performing duty specified in section
12310(a) of title 10, United States Code, or while undergoing train
ing, or while performing drills or equivalent duty or other duty, and
expenses authorized by section 16131 of title 10, United States Code;
Fund, $5,500,369,000.
NATIONAL GUARD PERSONNEL, AIR FORCE
and related expenses for personnel of the Air National Guard on
duty under section 10211, 10305, or 12402 of title 10 or section 708
4
of title 32, United States Code, or while serving on duty under sec
tion 12301(d) of title 10 or section 502(f) of title 32, United States
Code, in connection with performing duty specified in section
12310(a) of title 10, United States Code, or while undergoing train
ing, or while performing drills or equivalent duty or other duty, and
expenses authorized by section 16131 of title 10, United States Code;
- Fund, $2,174,598,000.
TITLE II
OPERATION AND MAINTENANCE
OPERATION AND MAINTENANCE, ARMY
(INCLUDING TRANSFER OF FUNDS)
For expenses, not otherwise provided for, necessary for the oper
ation and maintenance of the Army, as authorized by law; and not
to exceed $11,034,000 can be used for emergencies and extraor
dinary expenses, to be expended on the approval or authority of the
Secretary of the Army, and payments may be made on his certificate
of necessity for confidential military purposes, $25,029,346,000: Pro
vided, That of the funds appropriated in this paragraph, not less
than $355,000,000 shall be made available only for conventional
ammunition care and maintenance: Provided further, That of funds
made available under this heading, $2,500,000 shall be available
for Fort Baker, in accordance with the terms and conditions as pro
vided under the heading "Operation and Maintenance, Army", in
Public Law 107-117.
OPERATION AND MAINTENANCE, NAVY
ation and maintenance of the Navy and the Marine Corps, as au
thorized by law; and not to exceed $4,463,000 can be used for emer
gencies and extraordinary expenses, to be expended on the approval
or authority of the Secretary of the Navy, and payments may be
made on his certificate of necessity for confidential military pur
poses, $28,146,658,000.
OPERATION AND MAINTENANCE, MARINE CORPS
ation and mqintenance of the Marine Corps, as authorized by law,
$3,440,323,000.
OPERATION AND MAINTENANCE, AIR FORCE
ation and maintenance of the Air Force, as authorized by law; and
not to exceed $7,801,000 can be used for emergencies and extraor
dinary expenses, to be expended on the approval or authority of the
Secretary of the Air Force, and payments may be made on his cer
tificate of necessity for confidential military purposes,
$26,904,731,000: Provided, That notwithstanding any other provi
sion of law, that of the funds available under this heading,
$750,000 shall only be available to the Secretary of the Air Force
5
for a grant to Florida Memorial College for the purpose of funding
minority aviation training.
OPERATION AND MAINTENANCE, DEFENSE-WIDE
ation and maintenance of activities and agencies of the Department
of Defense (other than the military departments), as authorized by
law, $16,226,841,000, of which not to exceed $30,000,000 may be
available for the CINC initiative fund; and of which not to exceed
$40,000,000 can be used for emergencies and extraordinary ex
penses, to be expended on the approval or authority of the Secretary
of Defense, and payments may be made on his certificate of necessity
for confidential military purposes: Provided, That notwithstanding
any other provision of law, of the funds provided in this Act for
Civil Military programs under this heading, $500,000 shall be
available for a grant for Outdoor Odyssey, Roaring Run, Pennsyl
vania, to support the Youth Development and Leadership program
and Department of Defense STARBASE program: Provided further,
That none of the funds appropriated or otherwise made available by
this Act may be used to plan or implement the consolidation of a
budget or appropriations liaison office of the Office of the Secretary
of Defense, the office of the Secretary of a military department, or
the service headquarters of one of the Armed Forces into a legisla
tive affairs or legislative liaison office: Provided further, That
$4,700,000, to remain available until expended, is available only for
expenses relating to certain classified activities, and may be trans
ferred as necessary by the Secretary to operation and maintenance
appropriations or research, development, test and evaluation appro
priations, to be merged with and to be available for the same time
period as the appropriations to which transferred: Provided further,
That any ceiling on the investment item unit cost of items that may
be purchased with operation and maintenance funds shall not apply
to the funds described in the preceding proviso: Provided further,
That the transfer authority provided under this heading is in addi
tion to any other transfer authority provided elsewhere in this Act.
OPERATION AND MAINTENANCE, ARMY RESERVE
ation and maintenance, including training, organization, and ad
ministration,' of the Army Reserve; repair of facilities and equip
ment; hire of passenger motor vehicles; travel and transportation;
care of the dead; recruiting; procurement of services, supplies, and
equipment; and communications, $1,998,609,000.
OPERATION AND MAINTENANCE, NAVY RESERVE
ministration, of the Navy Reserve; repair of facilities and equip
6
OPERATION AND MAINTENANCE, MARINE CORPS RESERVE
ministration, of the Marine Corps Reserve; repair of facilities and
equipment; hire of passenger motor vehicles; travel and transpor
tation; care of the dead; recruiting; procurement of services, sup
plies, and equipment; and communications, $173,952,000.
OPERATION AND MAINTENANCE, AIR FORCE RESERVE
ministration, of the Air Force Reserve; repair of facilities and equip
OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD
For expenses of training, organizing, and administering the
Army National Guard, including medical and hospital treatment
and related expenses in non-Federal hospitals; maintenance, oper
ation, and repairs to structures and facilities; hire of passenger
motor vehicles; personnel services in the National Guard Bureau;
travel expenses (other than mileage), as authorized by law for Army
personnel on active duty, for Army National Guard division, regi
mental, and battalion commanders while inspecting units in com
pliance with National Guard Bureau regulations when specifically
authorized by the Chief, National Guard Bureau; supplying and
equipping the Army National Guard as authorized by law; and ex
penses of repair, modification, maintenance, and issue of supplies
and equipment (including aircraft), $4,340,581,000.
OPERATION AND MAINTENANCE, AIR NATIONAL GUARD
For operation and maintenance of the Air National Guard, in
cluding medical and hospital treatment and related expenses in
non-Federal hospitals; maintenance, operation, repair, and other
necessary expenses of facilities for the training and administration
of the Air National Guard, including repair of facilities, mainte
nance, operation, and modification of aircraft; transportation of
things, hire of passenger motor vehicles; supplies, materials, and
equipment, a'S authorized by law for the Air National Guard; and
expenses incident to the maintenance and use of supplies, materials,
and equipment, including such as may be furnished from stocks
under the control of agencies of the Department of Defense; travel
expenses (other than mileage) on the same basis as authorized by
law for Air National Guard personnel on active Federal duty, for
Air National Guard commanders while inspecting units in compli
ance with National Guard Bureau regulations when specifically au
thorized by the Chief, National Guard Bureau, $4,431,216,000.
7
OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT
For expenses directly relating to Overseas Contingency Oper
ations by United States military forces, $5,000,000, to remain avail
able until expended: Provided, That the Secretary of Defense may
transfer these funds only to military personnel accounts; operation
- and maintenance accounts within this title; the Defense Health Pro
gram appropriation; procurement accounts; research, development,
test and evaluation accounts; and to working capital funds: Pro
vided further, That the funds transferred shall be merged with and
shall be available for the same purposes and for the same time pe
riod, as the appropriation to which transferred: Provided further,
That upon a determination that all or part of the funds transferred
from this appropriation are not necessary for the purposes provided
herein, such amounts may be transferred back to this appropriation:
Provided further, That the transfer authority provided in this para
graph is in addition to any other transfer authority contained else
where in this Act.
UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES
For salaries and expenses necessary for the United States Court
of Appeals for the Armed Forces, $10,333,000, of which not to exceed
$2,500 can be used for official representation purposes.
ENVIRONMENTAL RESTORATION, ARMY
For the Department of the Army, $396,018,000, to remain avail
able until transferred: Provided, That the Secretary of the Army
shall, upon determining that such funds are required for environ
mental restoration, reduction and recycling of hazardous waste, re
moval of unsafe buildings and debris of the Department of the
Army, or for similar purposes, transfer the funds made available by
this appropriation to other appropriations made' available to the De
partment of the Army, to be merged with and to be available for the
same purposes and for the same time period as the appropriations
to which transferred: Provided further, That upon a determination
that all or part of the funds transferred from this appropriation are
not necessary for the purposes provided herein, such amounts may
be transferred back to this appropriation.
ENVIRONMENTAL RESTORATION, NAVY
For the Department of the Navy, $256,153,000, to remain avail
able until transferred: Provided, That the Secretary of the Navy
moval of unsafe buildings and debris of the Department of the
Navy, or for similar purposes, transfer the funds made available by
this appropriation to other appropriations made available to the De
partment of the Navy, to be merged with and to be available for the
8
be transferred back to this,appropriation.
ENVIRONMENTAL RESTORATION, AIR FORCE
For the Department of the Air Force, $384,307,000, to remain
available until transferred: Provided, That the Secretary of the Air
Force shall, upon determining that such funds are required for envi
ronmental restoration, reduction and recycling of hazardous waste,
removal of unsafe buildings and debris of the Department of the Air
Force, or for similar purposes, transfer the funds made available by
this appropriation to other appropriations made available to the De
partment of the Air Force, to be merged with and to be available
for the same purposes and for the same time period as the appro
priations to which transferred: Provided further, That upon a deter
mination that all or part of the funds transferred from this appro
priation are not necessary for the purposes provided herein, such
amounts may be transferred back to this appropriation.
ENVIRONMENTAL RESTORATION, DEFENSE-WIDE
For the Department of Defense, $24,081,000, to remain avail
able until transferred: Provided, That the Secretary of Defense shall,
upon determining that such funds are required for environmental
restoration, reduction and recycling of hazardous waste, removal of
unsafe buildings and debris of the Department of Defense, or for
similar purposes, transfer the funds made available by this appro
priation to other appropriations made available to the Department
of Defense, to be merged with and to be available for the same pur
poses and for the same time period as the appropriations to which
transferred: Provided further, That upon a determination that all or
part of the funds transferred from this appropriation are not nec
essary for the purposes provided herein, such amounts may be
transferred back to this appropriation.
ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES
For the Department of the Army, $284,619,000, to remain avail
able until transferred: Provided, That the Secretary of the Army
moval of unsafe buildings and debris at sites formerly used by the
Department of Defense, transfer the funds made available by this
appropriation to other appropriations made available to the Depart
ment of the Army, to be merged with and to be available for the
be transferred back to this appropriation.
9
OVERSEAS HUMANITARIAN, DISASTER, AND CNIC AID
For expenses relating to the Overseas Humanitarian, Disaster,
and Civic Aid programs of the Department of Defense (consisting of
the programs provided under sections 401,402,404,2547, and 2561
of title 10, United States Code), $59,000,000, to remain available
until September 30, 2005.
FORMER SOVIET UNION THREAT REDUCTION
For assistance to the republics of the former Soviet Union, in
cluding assistance provided by contract or by grants, for facilitating
the elimination and the safe and secure transportation and storage
of nuclear, chemical and other weapons; for establishing programs
to prevent the proliferation of weapons, weapons components, and
weapon-related technology and expertise; for programs relating to
the training and support of defense and military personnel for de
militarization and protection of weapons, weapons components and
weapons technology and expertise, and for defense and military con
tacts, $450,800,000, to remain available until September 30, 2006:
Provided, That of the amounts provided under this heading,
$10,000,000 shall be available only to support the dismantling and
disposal of nuclear submarines, submarine reactor components, and
warheads in the Russian Far East.
TITLE III
PROCUREMENT
AIRCRAFT PROCUREMENT, ARMY

For construction, procurement, production, modification, and
modernization of aircraft, equipment, including ordnance, ground
handling equipment, spare parts, and accessories therefor; special
ized equipment and training devices; expansion of public and pri
vate plants, including the land necessary therefor, for the foregoing
purposes, and such lands and interests therein, may be acquired,
and construction prosecuted thereon prior to approval of title; and
procurement and installation of equipment, appliances, and ma
chine tools in public and private plants; reserve plant and Govern
ment and contractor-owned equipment layaway; and other expenses
necessary for the foregoing purposes, $2,154,035,000, to remain
available for obligation until September 30, 2006.
MISSILE PROCUREMENT, ARMY
modernization of missiles, equipment, including ordnance, ground
handling equipment, spare parts, and accessories therefor; special
ized equipment and training devices; expansion of public and pri
vate plants, including the land necessary therefor, for the foregoing
purposes, and such lands and interests therein, may be acquired,
necessary for the foregoing purposes, $1,505,462,000, to remain
10
PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES,
ARMY
For construction, procurement, production, and modification of
weapons and tracked combat vehicles, equipment, including ord
nance, spare parts, and accessories therefor; specialized equipment
and training devices; expansion of public and private plants, in
- cluding the land necessary therefor, for the foregoing purposes, and
such lands and interests therein, may be acquired, and construction
prosecuted thereon prior to approval of title; and procurement and
installation of equipment, appliances, and machine tools in public
and private plants; reserve plant and Government and contractor
owned equipment laJaway; and other expenses necessary for the
foregoing purposes, $1,857,054,000, to remain available for obliga
tion until September 30, 2006: Provided, That of the funds made
available under this heading, $35,000,000 shall be available only
for advance procurement items for the fifth and sixth Stryker Bri
gade Combat Teams.
PROCUREMENT OF AMMUNITION, ARMY
ammunition, and accessories therefor; specialized equipment and
training devices; expansion of public and private plants, including
ammunition facilities authorized by section 2854 of title 10, United
States Code, and the land necessary therefor, for the foregoing pur
poses, and such lands and interests therein, may be acquired, and
construction prosecuted thereon prior to approval of title; and pro
curement and installation of equipment, appliances, and machine
tools in public and private plants; reserve plant and Government
and contractor-owned equipment layaway; and other expenses nec
essary for the foregoing purposes, $1,387,759,000, to remain avail
able for obligation until September 30, 2006.
OTHER PROCUREMENT, ARMY
vehicles, including tactical, support, and non-tracked combat vehi
cles; the purchase of passenger motor vehicles for replacement only;
and the purchase of 4 vehicles required for physical security of per
sonnel, notwithstanding price limitations applicable to passenger
vehicles but not to exceed $180,000 per vehicle; communications and
electronic equipment; other support equipment; spare parts, ord
nance, and accessories therefor; specialized equipment and training
devices; expansion of public and private plants, including the land
necessary therefor, for the foregoing purposes, and such lands and
interests therein, may be acquired, and construction prosecuted
thereon prior to approval of title; and procurement and installation
of equipment, appliances, and machine tools in public and private
plants; reserve plant and Government and contractor-owned equip
ment layaway; and other expenses necessary for the foregoing pur
poses, $4,774,452,000, to remain available for obligation until Sep
tember 30, 2006.
11
AIRCRAFT PROCUREMENT, NAVY
modernization of aircraft, equipment, including ordnance, spare
parts, and accessories therefor; specialized equipment; expansion of
public and private plants, including the land necessary therefor,
and such lands and interests therein, may be acquired, and con
struction prosecuted thereon prior to approval of title; and procure
ment and installation of equipment, appliances, and machine tools
in public and private plants; reserve plant and Government and
contractor-owned equipment layaway, $9,110,848,000, to remain
WEAPONS PROCUREMENT, NAVY
modernization of missiles, torpedoes, other weapons, and related
support equipment including spare parts, and accessories therefor;
expansion of public and private plants, including the land necessary
therefor, and such lands and interests therein, may be acquired,
ment and contractor-owned equipment layaway, $2,095,784,000, to
remain available for obligation until September 30, 2006.
PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS
essary for the foregoing purposes, $934,905,000, to remain available
for obligation until September 30, 2006.
SHIPBUILDING AND CONVERSION, NAVY
For expenses necessary for the construction, acquisition, or con
version of vessels as authorized by law, including armor and arma
ment thereof, plant equipment, appliances, and machine tools and
installation thereof in public and private plants; reserve plant and
Government and contractor-owned equipment layaway; procurement
of critical, long leadtime components and designs for vessels to be
constructed or converted in the future; and expansion of public and
private plants, including land necessary therefor, and such lands
and interests therein, may be acquired, and construction prosecuted
thereon prior to approval of title, as follows:
Carrier Replacement Program (AP), $1,186,564,000;
NSSN, $1,511,935,000;
NSSN (AP), $827,172,000;
SSGN, $930,700,000;
12
SSGN (AP), $236,600,000;
CVN Refuelings (AP), $232,832,000;
SSN Submarine Refuelings, $450,000,000;
SSN Submarine Refuelings (AP), $10,351,000;
SSBN Submarine Refuelings (AP), $105,800,000;
DDG-51 Destroyer, $3,218,311,000;
LPD-17, $1,192,034,000;
LPD-17 (AP), $135,000,000;
LHD-8, $355,006,000;
LCAC Landing Craft Air Cushion, $73,087,000;
Mine Hunter SWATH, $4,500,000;
Prior year shipbuilding costs, $635,502,000;
Service Craft, $23,480,000; and
For outfitting, post delivery, conversions, and first destina
tion transportation, $338,749,000.
In all: $11,467,623,000, to remain available for obligation until
September 30, 2008: Provided, That additional obligations may be
incurred after September 30, 2008, for engineering services, tests,
evaluations, and other such budgeted work that must be performed
in the final stage of ship construction: Provided further, That none
of the funds provided under this heading for the construction or
conversion of any naval vessel to be constructed in shipyards in the
United States shall be expended in foreign facilities for the construc
tion of major components of such vessel: Provided further, That
none of the funds provided under this heading shall be used for the
construction of any naval vessel in foreign shipyards.
OTHER PROCUREMENT, NAVY
For procurement, production, and modernization of support
equipment and materials not otherwise provided for, Navy ordnance
(except ordnance for new aircraft, new ships, and ships authorized
for conversion); the purchase of passenger motor vehicles for replace
ment only, and the purchase of 7 vehicles required for physical secu
rity of personnel, notwithstanding price limitations applicable to
passenger vehicles but not to exceed $200,000 per vehicle; expansion
of public and private plants, including the land necessary therefor,
and such lands and interests therein, may be acquired, and con
struction prosecuted thereon prior to approval of title; and procure
ment and installation of equipment, appliances, and machine tools
in public and private plants; reserve plant and Government and
contractor-owned equipment layaway, $4,941,098,000, to remain
PROCUREMENT, MARINE CORPS
For expenses necessary for the procurement, manufacture, and
modification of missiles, armament, military equipment, spare
parts, and accessories therefor; plant equipment, appliances, and
machine tools, and installation thereof in public and private plants;
reserve plant and Government and contractor-owned equipment lay
away; vehicles for the Marine Corps, including the purchase of pas
senger motor vehicles for replacement only; and expansion of public
and private plants, including land necessary therefor, and such
lands and interests therein, may be acquired, and construction pros
13
ecuted thereon prior to approval of title, $1,165,727,000, to remain
AIRCRAFT PROCUREMENT, AIR FORCE
For construction, procurement, and modification of aircraft and
equipment, including armor and armament, specialized ground
handling equipment, and training devices, spare parts, and acces
sories therefor; specialized equipment; expansion of public and pri
vate plants, Government-owned equipment and installation thereof
in such plants, erection of structures, and acquisition of land, for
the foregoing purposes, and such lands and interests therein, may
be acquired, and construction prosecuted thereon prior to approval
of title; reserve plant and Government and contractor-owned equip
ment layaway; and other expenses necessary for the foregoing pur
poses including rents and transportation of things, $12,086,201,000,
to remain available for obligation until September 30, 2006.
MISSILE PROCUREMENT, AIR FORCE
For construction, procurement, and modification of missiles,
spacecraft, rockets, and related equipment, including spare parts
and accessories therefor, ground handling equipment, and training
devices; expansion of public and private plants, Government-owned
equipment and installation thereof in such plants, erection of struc
tures, and acquisition of land, for the foregoing purposes, and such
lands and interests therein, may be acquired, and construction pros
ecuted thereon prior to approval of title; reserve plant and Govern
necessary for the foregoing purposes including rents and transpor
tation of things, $4,165,633,000, to remain available for obligation
PROCUREMENT OF AMMUNITION, AIR FORCE
essary for the foregoing purposes, $1,262,725,000, to remain avail
able for obligation until September 30, 2006.
OTHER PROCUREMENT, AIR FORCE
For procurement and modification of equipment (including
ground guidance and electronic control equipment, and ground elec
tronic and communication equipment), and supplies, materials, and
spare parts therefor, not otherwise provided for; the purchase of pas
senger motor vehicles for replacement only, and the purchase of 1
vehicle required for physical security of personnel, notwithstanding
price limitations applicable to passenger vehicles but not to exceed
14
$200,000 per vehicle; lease of passenger motor vehicles; and expan
sion of public and private plants, Government-owned equipment
and installation thereof in such plants, erection of structures, and
acquisition of land, for the foregoing purposes, and such lands and
interests therein, may be acquired, and construction prosecuted
thereon, prior to approval of title; reserve plant and Government
and contractor-owned equipment layaway, $11,558,799,000, to reo
- main available for obligation until September 30, 2006.
PROCUREMENT, DEFENSE-WIDE
For expenses of activities and agencies of the Department of De
fense (other than the military departments) necessary for procure
ment, production, and modificatwn of equipment, supplies, mate
rials, and spare parts therefor, not otherwise provided for; the pur
chase of passenger motor vehicles for replacement only, including
not to exceed 3 passenger motor vehicles for the Defense Security
Service; the purchase of 4 vehicles required for physical security of
personnel, notwithstanding price limitations applicable to passenger
vehicles but not to exceed $200,000 per vehicle; expansion of public
and private plants, equipment, and installation thereof in such
plants, erection of structures, and acquisition of land for the fore
going purposes, and such lands and interests therein, may be ac
quired, and construction prosecuted thereon prior to approval of
title; reserve plant and Government and contractor-owned equip
ment layaway, $3,709,926,000, to remain available for obligation
NATIONAL GUARD AND RESERVE EQUIPMENT
For procurement of aircraft, missiles, tracked combat vehicles,
ammunition, other weapons, and other procurement for the reserve
components of the Armed Forces, $400,000,000, to remain available
for obligation until September 30, 2006: Provided, That the Chiefs
of the Reserve and National Guard components shall, not later than
30 days after the enactment of this Act, individually submit to the
congressional defense committees the modernization priority assess
ment for their respective Reserve or National Guard component.
DEFENSE PRODUCTION ACT PURCHASES
For activities by the Department of Defense pursuant to sections
108, 301, 302, and 303 of the Defense Production Act of 1950 (50
U.S.C. App. 2078, 2091, 2092, and 2093), $78,016,000, to remain
available until expended.
TITLEN
RESEARCH, DEVELOPMENT, TEST AND EVALUATiON
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY
For expenses necessary for basic and applied scientific research,
development, test and evaluation, including maintenance, rehabili
tation, lease, and operation of facilities and equipment,
$10,363,941,000, to remain available for obligation until September
30, 2005: Provided, That of the amounts provided under this head
ing, $8,500,000 for Molecular Genetics and Musculoskeletal Re
15
search in program element 0602787A, shall remain available until
expended.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY
- $15,146,383,000, to remain available for obligation until September
30, 2005: Provided, That funds appropriated in this paragraph
which are available for the V-22 may be used to meet unique oper
ational requirements of the Special Operations Forces: Provided fur
ther, That funds appropriated in this paragraph shall be available
for the Cobra Judy program.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE
30,2005.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE
For expenses of activities and agencies of the Department of De
fense (other than the military departments), necessary for basic and
applied scientific research, development, test and evaluation; ad
vanced research projects as may be designated and determined by
the Secretary of Defense, pursuant to law; maintenance, rehabilita
tion, lease, and operation of facilities and equipment,
30,2005.
OPERATIONAL TEST AND EVALUATION, DEFENSE
For expenses, not otherwise provided for, necessary for the inde
pendent activities of the Director, Operational Test and Evaluation,
in the direction and supervision of operational test and evaluation,
including initial operational test and evaluation which is conducted
prior to, and in support of, production decisions; joint operational
testing and evaluation; and administrative expenses in connection
therewith, $305,861,000, to remain available for obligation until
September 30, 2005.
TITLE V
REVOLVING AND MANAGEMENT FUNDS
DEFENSE WORKING CAPITAL FUNDS
For the Defense Working Capital Funds, $1,641,507,000.
NATIONAL DEFENSE SEALIFT FUND
For National Defense Sealift Fund programs, projects, and ac
tivities, and for expenses of the National Defense Reserve Fleet, as
established by section 11 of the Merchant Ship Sales Act of 1946 (50
U.S.C. App. 1744), and for the necessary expenses to maintain and
16
preserve a U.S.-flag merchant fleet to serve the national security
needs of the United States, $1,066,462,000, to remain available
until expended: Provided, That none of the funds provided in this
paragraph shall be used to award a new contract that provides for
the acquisition of any of the following major components unless
such components are manufactured in the United States: auxiliary
equipment, including pumps, for all shipboard services; propulsion
- system components (that is; engines, reduction gears, and propel
lers); shipboard cranes; and spreaders for shipboard cranes: Pro
vided further, That the exercise of an option in a contract awarded
through the obligation of previously appropriated funds shall not be
considered to be the award of a new contract: Provided further,
That the Secretary of the military department responsible for such
procurement may waive the restrictions in the first proviso on a
case-by-case basis by certifying in writing to the Committees on Ap
propriations of the House of Representatives and the Senate that
adequate domestic supplies are not available to meet Department of
Defense requirements on a timely basis and that such an acquisition
must be made in order to acquire capability for national security
purposes: Provided further, That, notwithstanding any other provi
sion of law, $6,500,000 of the funds available under this heading
shall be available in addition to other amounts otherwise available,
only to finance the cost of constructing additional sealift capacity.
TITLE VI
OTHER DEPARTMENT OF DEFENSE PROGRAMS
DEFENSE HEALTH PROGRAM
For expenses, not otherwise provided for, for medical and health
care programs of the Department of Defense, as authorized by law,
$15,730,013,000, of which $14,914,816,000 shall be for Operation
and maintenance, of which not to exceed 2 percent shall remain
available until September 30, 2005, and of which $7,420,972,000
shall be available for contracts entered into under the TRICARE
program; of which $328,826,000, to remain available for obligation
until September 30, 2006, shall be for Procurement; and of which
$486,371,000, to remain available for obligation until September 30,
2005, shall be for Research, development, test and evaluation.
CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY
For expenses, not otherwise provided for, necessary for the de
struction of the United States stockpile of lethal chemical agents
and munitions in accordance with the provisions of section 1412 of
the Department of Defense Authorization Act, 1986 (50 U.S.C.
1521), and for the destruction of other chemical warfare materials
that are not in the chemical weapon stockpile, $1,500,261,000, of
which $1,169,168,000 shall be for Operation and maintenance to re
main available until September 30, 2005; $79,212,000 shall be for
Procurement to remain available until September 30, 2006;
$251,881,000 shall be for Research, development, test and evalua
tion to remain available until September 30, 2005; and no less than
$132,677,000 may be for the Chemical Stockpile Emergency Pre
paredness Program, of which $44,168,000 shall be for activities on
military installations and $88,509,000 shall be to assist State and
17
local governments: Provided, That notwithstanding any other provi
"sion of law, $10,000,000 of the funds available under this heading
shall be expended only to fund Chemical Stockpile Emergency Pre
paredness Program evacuation route improvements in Calhoun
County, Alabama.
DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE
For drug interdiction and counter-drug activities of the Depart
ment of Defense, for transfer to appropriations available to the De
partment of Defense for military personnel of the reserve components
serving under the provisions of title 10 and title 32, United States
Code; for Operation and maintenance; for Procurement; and for Re
search, development, test and evaluation, $835,616,000: Provided,
That the funds appropriated under this heading shall be available
for obligation for the same time period and for the same purpose as
the appropriation to which transferred: Provided further, That upon
a determination that all or part of the funds transferred from this
appropriation are not necessary for the purposes provided herein,
such amounts may be transferred back to this appropriation: Pro
vided further, That the transfer authority provided under this head
ing is in addition to any other transfer authority contained else
where in this Act.
OFFICE OF THE INSPECTOR GENERAL
For expenses and activities of the Office of the Inspector General
in carrying out the provisions of the Inspector General Act of 1978,
as amended, $162,449,000, of which $160,049,000 shall be for Oper
ation and maintenance, of which not to exceed $700,000 is available
for emergencies and extraordinary expenses to be expended on the
approval or authority of the Inspector General, and payments may
be made on the Inspector General's certificate of necessity for con
fidential military purposes; and of which $300,000, to remain avail
able until September 30, 2005, shall be for Research, development,
test and evaluation; and of which $2,100,000, to remain ,available
until September 30, 2006, shall be for Procurement.
TITLE VII
RELATED AGENCIES
CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY
. SYSTEM FUND
For payment to the Central Intelligence Agency Retirement and
Disability System Fund, to maintain the proper funding level for
continuing the operation of the Central Intelligence Agency Retire
ment and Disability System, $226,400,000.
INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT
For necessary expenses of the Intelligence Community Manage
ment Account, $175,113,000, of which $26,081,000 for the Advanced
Research and Development Committee shall remain available until
18
September 30, 2005: Provided, That of the funds appropriated
under this heading, $44,300,000 shall be transferred to the Depart
ment of Justice for the National Drug Intelligence Center to support
the Department of Defense's counter-drug intelligence responsibil
ities, and of the said amount, $1,500,000 for Procurement shall re
main available until September 30, 2006 and $1,000,000 for Re
search, development, test and evaluation shall remain available
- until September 30, 2005: Provided further, That the National Drug
Intelligence Center shall maintain the personnel and technical re
sources to provide timely support to law enforcement authorities and
the intelligence community by conducting document and comfuter
exploitation of materials collected in Federal, State, and loca law
enforcement activity associated with counter-drug, counter-ter
rorism, and national security investigations and operations.
PAYMENT TO KAHO'OLAWE ISLAND CONVEYANCE, REMEDIATION, AND
ENVIRONMENTAL RESTORATION FUND
For payment to Kaho'olawe Island Conveyance, Remediation,
and Environmental Restoration Fund, as authorized by law,
$18,430,000, to remain available until expended.
NATIONAL SECURITY EDUCATION TRUST FUND
For the purposes of title VIII of Public Law 102-183,
$8,000,000, to be derived from the National Security Education
Trust Fund, to remain available until expended.
TITLE VIII
GENERAL PROVISIONS
SEC. 8001. No part of any appropriation contained in this Act
shall be used for publicity or propaganda purposes not authorized
by the Congress.
SEC. 8002. During the current fiscal year, provisions of law pro
hibiting the payment of compensation to, or employment of, any per
son not a citizen of the United States shall not apply to personnel
of the Department of Defense: Provided, That salary increases
granted to direct and indirect hire foreign national employees of the
Department of Defense funded by this Act shall not be at a rate in
excess of the percentage increase authorized by law for civilian em
ployees of the Department of Defense whose pay is computed under
the provisions of section 5332 of title 5, United States Code, or at
a rate in excess of the percentage increase provided by the appro
priate host nation to its own employees, whichever is higher: Pro
vided further, That this section shall not apply to Department of De
fense foreign service national employees serving at United States
diplomatic missions whose pay is set by the Department of State
under the Foreign Service Act of 1980: Provided further, That the
limitations of this provision shall not apply to foreign national em
ployees of the Department of Defense in the Republic of Turkey.
SEC. 8003. No part of any appropriation contained in this Act
shall remain available for obligation beyond the current fiscal year,
unless expressly so provided herein.
SEC. 8004. No more than 20 percent of the appropriations in
this Act which are limited for obligation during the current fiscal
19
year shall be obligated during the last 2 months of the fiscal year:
Provided, That this section shall not apply to obligations for sup
port of active duty training of reserve components or summer camp
training of the Reserve Officers' Training Corps.
(TRANSFER OF FUNDS)
SEC. 8005. Upon determination by the Secretary of Defense that

such action is necessary in the national interest, he may, with the
approval of the Office of Management and Budget, transfer not to
exceed $2,100,000,000 of working capital funds of the Department
of Defense or funds made available in this Act to the Department
of Defense for military functions (except military construction) be
tween such appropriations or funds or any subdivision thereof, to be
merged with and to be available for the same purposes, and for the
same time period, as the appropriation or fund to which trans
ferred: Provided, That such authority to transfer may not be used
unless for higher priority items, based on unforeseen military re
quirements, than those for which originally appropriated and in no
case where the item for which funds are requested has been denied
by the Congress: Provided further, That the Secretary of Defense
shall notify the Congress promptly of all transfers made pursuant
to this authority or any other authority in this Act: Provided fur
ther, That no part of the funds in this Act shall be available to pre
pare or present a request to the Committees on Appropriations for
reprogramming of funds, unless for higher priority items, based on
unforeseen military requirements, than those for which originally
appropriated and in no case where the item for which reprogram
ming is requested has been denied by the Congress: Provided fur
ther, That a request for multiple reprogrammings of funds using
authority provided in this section must be made prior to June 30,
2004.
(TRANSFER OF FUNDS)
SEC. 8006. During the current fiscal year, cash balances in
working capital funds of the Department of Defense established pur
suant to section 2208 of title 10, United States Code, may be main
tained in only such amounts as are necessary at any time for cash
disbursements to be made from such funds: Provided, That trans
fers may be made between such funds: Provided further, That trans
fers may be made between working capital funds and the "Foreign
Currency Fluctuations, Defense" appropriation and the "Operation
and Maintenance" appropriation accounts in such amounts as may
be determined by the Secretary of Defense, with the approval of the
Office of Management and Budget, except that such transfers may
not be made unless the Secretary of Defense has notified the Con
gress of the proposed transfer. Except in amounts equal to the
amounts appropriated to working capital funds in this Act, no obli
gations may be made against a working capital fund to procure or
increase the value of war reserve material inventory, unless the Sec
retary of Defense has notified the Congress prior to any such obliga
tion.
SEC. 8007. Funds appropriated by this Act may not be used to
initiate a special access program without prior notification 30 cal
endar days in session in advance to the congressional defense com
mittees.
20
SEC. 8008. None of the funds provided in this Act shall be
available to initiate: (1) a multiyear contract that employs economic
order quantity procurement in excess of $20,000,000 in any 1 year
of the contract or that includes an unfunded contingent liability in
excess of $20,000,000; or (2) a contract for advance procurement
leading to a multiyear contract that employs economic order quan
tity procurement in excess of $20,000,000 in any 1 year, unless the
- congressional defense committees have been notified at least 30 days
in advance of the proposed contract award: Provided, That no part
of any appropriation contained in this Act shall be available to ini
tiate a multiyear contract for which the economic order quantity ad
vance procurement is not funded at least to the limits of the Govern
ment's liability: Provided further, That no part of any appropriation
contained in this Act shall be available to initiate multiyear pro
curement contracts for any systems or component thereof if the value
of the multiyear contract would exceed $500,000,000 unless specifi
cally provided in this Act: Provided further, That no multiyear pro
curement contract can be terminated without 10-day prior notifica
tion to the congressional defense committees: Provided further, That
the execution of multiyear authority shall require the use of a
present value analysis to determine lowest cost compared to an an
nual procurement.
Funds appropriated in title III of this Act may be used for
multiyear procurement contracts as follows:
F/A-18 aircraft;
E-2C aircraft;
Tactical Tomahawk missile; and
Virginia Class submarine:
Provided, That the Secretary of the Navy may not enter into a
multiyear contract for the procurement of more than one Virginia
Class submarine per year.
SEC. 8009. Within the funds appropriated for the operation and
maintenance of the Armed Forces, funds are hereby appropriated
pursuant to section 401 of title 10, United States Code, for humani
tarian and civic assistance costs under chapter 20 of title 10, United
States Code. Such funds may also be obligated for humanitarian
and civic assistance costs incidental to authorized operations and
pursuant to authority granted in section 401 of chapter 20 of title
10, United States Code, and these obligations shall be reported as
required by section 401(d) of title 10, United States Code: Provided,
That funds available for operation and maintenance shall be avail
able for providing humanitarian and similar assistance by using
Civic Action .Teams in the Trust Territories of the Pacific Islands
and freely associated states of Micronesia, pursuant to the Compact
of Free Association as authorized by Public Law 99-239: Provided
further, That upon a determination by the Secretary of the Army
that such action is beneficial for graduate medical education pro
grams conducted at Army medical facilities located in Hawaii, the
Secretary of the Army may authorize the provision of medical serv
ices at such facilities and transportation to such facilities, on a non
reimbursable basis, for civilian patients from American Samoa, the
Commonwealth of the Northern Mariana Islands, the Marshall Is
lands, the Federated States of Micronesia, Palau, and Guam.
SEC. 8010. (a) During fiscal year 2004, the civilian personnel
of the Department of Defense may not be managed on the basis of
21
any end-strength, and the management of such personnel during
that fiscal year shall not be subject to any constraint or limitation
(known as an end-strength) on the number of such personnel who
may be employed on the last day of such fiscal year.
(b) The fiscal year 2005 budget request for the Department of
Defense as well as all justification material and other documenta
tion supporting the fiscal year 2005 Department of Defense budget
- request shall be prepared and submitted to the Congress as if sub
sections (a) and (b) of this provision were effective with regard to
fiscal year 2005.
(c) Nothing in this section shall be construed to apply to mili
tary (civilian) technicians.
SEC. 8011. None of the funds appropriated in this or any other
Act may be used to initiate a new installation overseas without 30
day advance notification to the Committees on Appropriations.
SEC. 8012. None of the funds made available by this Act shall
be used in any way, directly or indirectly, to influence congressional
action on any legislation or appropriation matters pending before
the Congress.
SEC. 8013. None of the funds appropriated by this Act shall be
available for the basic pay and allowances of any member of the
Army participating as a full-time student and receiving benefits
paid by the Secretary of Veterans Affairs from the Department of
Defense Education Benefits Fund when time spent as a full-time
student is credited toward completion of a service commitment: Pro
vided, That this subsection shall not apply to those members who
have reenlisted with this option prior to October 1, 1987: Provided
further, That this subsection applies only to active components of
the Army.
SEC. 8014. (a) LIMITATION ON CONVERSION TO CONTRACTOR
PERFORMANCE.-None of the funds appropriated by this Act shall be
available to convert to contractor performance an activity or func
tion of the Department of Defense that, on or after the date of the
enactment of this Act, is performed by more than 10 Department of
Defense civilian employees unless
(1) the conversion is based on the result of a public-private
competition that includes a most efficient and cost effective or
ganization plan developed by such activity or function; and
(2) the Competitive Sourcing Official determines that, over
all performance periods stated in the solicitation of offers for
performance of the activity or function, the cost of performance
of the activity or function by a contractor would be less costly
to the Department of Defense by an amount that equals or ex
ceeds the lesser of
(A) 10 percent of the most efficient organization's per
sonnel-related costs for performance of that activity or func
tion by Federal employees; or
(B) $10,000,000.
(b) EXCEPTIONS.-{l) This section and subsections (a), (b), and
(c) of section 2461 of title 10, United States Code, shall not apply
to a commercial or industrial type function of the Department of De
fense that
(A) is included on the procurement list established pursu
ant to section 2 of the Javits-Wagner-O'Day Act (41 U.S.C. 47);
22
(B) is planned to be converted to performance by a qualified

nonprofit agency for the blind or by a qualified nonprofit agen
cy for other severely handicapped individuals in accordance
with that Act; or
(C) is planned to be converted to performance by a qualified
firm under at least 51 percent ownership by an Indian tribe, as
defined in section 4(e) of the Indian SelfDetermination and
Education Assistance Act (25 U.S.C. 450b(e)), or a Native Ha
waiian Organization, as defined in section 8(a)(15) of the Small
Business Act (15 U.S.C. 637(a)(15)).
(2) This section shall not apply to depot contracts or contracts
for depot maintenance as provided in sections 2469 and 2474 of title
10, United States Code.
(c) TREATMENT OF CONVERSION.-The conversion of any activity
or function of the Department of Defense under the authority pro
vided by this section shall be credited toward any competitive or
outsourcing goal, target, or measurement that may be established by
statute, regulation, or policy and is deemed to be awarded under the
authority of, and in compliance with, subsection (h) of section 2304
of title 10, United States Code, for the competition or outsourcing
of commercial activities.
(TRANSFER OF FUNDS)
SEC. 8015. Funds appropriated in title III of this Act for the De
partment of Defense Pilot Mentor-Protege Program may be trans
ferred to any other appropriation contained in this Act solely for the
purpose of implementing a Mentor-Protege Program developmental
assistance agreement pursuant to section 831 of the National De
fense Authorization Act for Fiscal Year 1991 (Public Law 101-510;
10 U.S.C. 2301 note), as amended, under the authority of this provi
sion or any other transfer authority contained in this Act.
SEC. 8016. None of the funds in this Act may be available for
the purchase by the Department of Defense (and its departments
and agencies) of welded shipboard anchor and mooring chain 4
inches in diameter and under unless the anchor and mooring chain
are manufactured in the United States from components which are
substantially manufactured in the United States: Provided, That for
the purpose of this section manufactured will include cutting, heat
treating, quality control, testing of chain and welding (including the
forging and shot blasting process): Provided further, That for the
purpose of this section substantially all of the components of anchor
and mooring chain shall be considered to be produced or manufac
tured in the United States if the aggregate cost of the components
produced or manufactured in the United States exceeds the aggre
gate cost of the components produced or manufactured outside the
United States: Provided further, That when adequate domestic sup
plies are not available to meet Department of Defense requirements
on a timely basis, the Secretary of the service responsible for the
procurement may waive this restriction on a case-by-case basis by
certifying in writing to the Committees on Appropriations that such
an acquisition must be made in order to acquire capability for na
tional security purposes.
SEC. 8017. None of the funds appropriated by this Act available
for the Civilian Health and Medical Program of the Uniformed
Services (CHAMPUS) or TRICARE shall be available for the reim
23
bursement of any health care provider for inpatient mental health
service for care received when a patient is referred to a provider of
inpatient mental health care or residential treatment care by a med
ical or health care professional having an economic interest in the
facility to which the patient is referred: Provided, That this limita
tion does not apply in the case of inpatient mental health services
provided under the program for persons with disabilities under sub
- section (d) of section 1079 of title 10, United States Code, provided
as partial hospital care, or provided pursuant to a waiver author
ized by the Secretary of Defense because of medical or psychological
circumstances of the patient that are confirmed by a health profes
sional who is not a Federal employee after a review, pursuant to
rules prescribed by the Secretary, which takes into account the ap
propriate level of care for the patient, the intensity of services re
quired by the patient, and the availability of that care.
SEC. 8018. Notwithstanding any other provision of law, during
the current fiscal year, the Secretary of Defense may, by executive
agreement, establish with host nation governments in NATO mem
ber states a separate account into which such residual value
amounts negotiated in the return of United States military installa
tions in NATO member states may be deposited, in the currency of
the host nation, in lieu of direct monetary transfers to the United
States Treasury: Provided, That such credits may be utilized only
for the construction of facilities to support United States military
forces in that host nation, or such real property maintenance and
base operating costs that are currently executed through monetary
transfers to such host nations: Provided further, That the Depart
ment of Defense's budget submission for fiscal year 2005 shall iden
tify such sums anticipated in residual value settlements, and iden
tify such construction, real property maintenance or base operating
costs that shall be funded by the host nation through such credits:
Provided further, That all military construction projects to be exe
cuted from such accounts must be previously approved in a prior
Act of Congress: Provided further, That each such executive agree
ment with a NATO member host nation shall be reported to the con
gressional defense committees, the Committee on International Rela
tions of the House of Representatives and the Committee on Foreign
Relations of the Senate 30 days prior to the conclusion and endorse
ment of any such agreement established under this provision.
SEC. 8019. None of the funds available to the Department of De
fense may be used to demilitarize or dispose of M-1 Carbines, M
1 Garand rifles, M-14 rifles, .22 caliber rifles, .30 caliber rifles, or
M-1911 pistols.
SEC. 8020. No more than $500,000 of the funds appropriated
or made available in this Act shall be used during a single fiscal
year for any single relocation of an organization, unit, activity or
function of the Department of Defense into or within the National
Capital Region: Provided, That the Secretary of Defense may waive
this restriction on a case-by-case basis by certifying in writing to the
congressional defense committees that such a relocation is required
in the best interest of the Government.
SEC. 8021. In addition to the funds provided elsewhere in this
Act, $8,000,000 is appropriated only for incentive payments author
ized by Section 504 of the Indian Financing Act of 1974 (25 U.S.C.
1544): Provided, That a prime contractor or a subcontractor at any
24
tier that makes a subcontract award to any subcontractor or sup
plier as defined in 25 U.S.C. 1544 or a small business owned and
controlled by an individual or individuals defined under 25 U.s.C.
4221(9) shall be considered a contractor for the purposes of being
allowed additional compensation under section 504 of the Indian
Financing Act of 1974 (25 U.S.C. 1544) whenever the prime contract
or subcontract amount is over $500,000 and involves the expendi
- ture of funds appropriated by an Act making Appropriations for the
Department of Defense with respect to any fiscal year: Provided fur
ther, That notwithstanding 41 U.S.C. 430, this section shall be ap
plicable to any Department of Defense acquisition of supplies or
services, including any contract and any subcontract at any tier for
acquisition of commercial items produced or manufactured, in
whole or in part by any subcontractor or supplier defined in 25
U.S.C. 1544 or a small business owned and controlled by an indi
vidual or individuals defined under 25 U.S.C. 4221(9): Provided
further, That businesses certified as 8(a) by the Small Business Ad
ministration pursuant to section 8(a)(15) of Public Law 85-536, as
amended, shall have the same status as other program participants
under section 602 of Public Law 100-656, 102 Stat. 3825 (Business
Opportunity Development Reform Act of 1988) for purposes of con
tracting with agencies of the Department of Defense.
available to perform any cost study pursuant to the provisions of
OMB Circular A-76 if the study being performed exceeds a period
of 24 months after initiation of such study with respect to a single
function activity or 30 months after initiation of such study for a
multi-function activity.
SEC. 8023. Funds appropriated by this Act for the American
Forces Information Service shall not be used for any national or
international political or psychological activities.
SEC. 8024. Notwithstanding any other provision of law or regu
lation, the Secretary of Defense may adjust wage rates for' civilian
employees hired for certain health care occupations as authorized
for the Secretary of Veterans Affairs by section 7455 of title 38,
United States Code.
SEC. 8025. (a) Of the funds for the procurement of supplies or
services appropriated by this Act and hereafter, qualified nonprofit
agencies for the blind or other severely handicapped shall be af
forded the maximum practicable opportunity to participate as sub
contractors and suppliers in the performance of contracts let by the
Department of Defense.
(b) During the current fiscal year and hereafter, a business con
cern which has negotiated with a military service or defense agency
a subcontracting plan for the participation by small business con
cerns pursuant to section 8(d) of the Small Business Act (15 U.S.C.
637(d)) shall be given credit toward meeting that subcontracting
goal for any purchases made from qualified nonprofit agencies for
the blind or other severely handicapped.
(c) For the purpose of this section, the phrase "qualified non
profit agency for the blind or other severely handicapped" means a
nonprofit agency for the blind or other severely handicapped that
has been approved by the Committee for the Purchase from the
Blind and Other Severely Handicapped under the Javits-Wagner
O'Day Act (41 U.S.C. 46-48).
25
SEC. 8026. During the current fiscal year, net receipts pursuant
to collections from third party payers pursuant to section 1095 of
title 10, United States Code, shall be made available to the local fa
cility of the uniformed services responsible for the collections and
shall be over and above the facility's direct budget amount.
SEC. 8027. During the current fiscal year, the Department of
Defense is authorized to incur obligations of not to exceed
$350,000,000 for purposes specified in section 2350j(c) of title 10,
United States Code, in anticipation of receipt of contributions, only
from the Government of Kuwait, under that section: Provided, That
upon receipt, such contributions from the Government of Kuwait
shall be credited to the appropriations or fund which incurred such
obligations.
SEC. 8028. (a) Of the funds made available in this Act, not less
than $32,758,000 shall be available for the Civil Air Patrol Cor
poration, of which
(1) $21,432,000 shall be available from "Operation and
Maintenance, Air Force" to support Civil Air Patrol Corporation
operation and maintenance, readiness, counterdrug activities,
and drug demand reduction activities involving youth pro
grams;
(2) $10,540,000 shall be available from "Aircraft Procure
ment, Air Force"; and
(3) $786,000 shall be available from "Other Procurement,
Air Force" for vehicle procurement.
(b) Notwithstanding section 9445 of title 10, United States
Code, or any other provision of law, of the funds made available to
the Civil Air Patrol Corporation in this Act under the heading '~ir
craft Procurement, Air Force", not more than $770,000 may be
transferred by the Secretary of the Air Force to the "Operation and
Maintenance, Air Force" appropriation to be merged with and to be
available for administrative expenses incurred by the Air Force in
the administration of Civil Air Patrol Corporation. Funds so trans
ferred shall be available for the same period as the appropriation
to which transferred.
(c) The Secretary of the Air Force should waive reimbursement
for any funds used by the Civil Air Patrol for counter-drug activities
in support of Federal, State, and local government agencies.
SEC. 8029. (a) None of the funds appropriated in this Act are
available to establish a new Department of Defense (df!JJartment)
federally funded research and development center (FFRDC), either
as a new entity, or as a separate entity administrated by an organi
zation managing another FFRDC, or as a nonprofit membership
corporation consisting of a consortium of other FFRDCs and other
non-profit entities.
(b) No member of a Board of Directors, Trustees, Overseers, Ad
visory Group, Special Issues Panel, Visiting Committee, or any simi
lar entity of a defense FFRDC, and no paid consultant to any de
fense FFRDC, except when acting in a technical advisory capacity,
may be compensated for his or her services as a member of such en
tity, or as a paid consultant by more than one FFRDC in a fiscal
year: Provided, That a member of any such entity referred to pre
viously in this subsection shall be allowed travel expenses and per
26
diem as authorized under the Federal Joint Travel Regulations,
when engaged in the performance of membership duties.
(c) Notwithstanding any other provision of law, none of the
funds available to the department from any source during fiscal
year 2004 may be used by a defense FFRDC, through a fee or other
payment mechanism, for construction of new buildings, for payment
of cost sharing for projects funded by Government grants, for ab
-- sorption of contract overruns, or for certain charitable contributions,
not to include employee participation in community service and / or
development.
(d) Notwithstanding any other provision of law, of the funds
available to the department during fiscal year 2004, not more than
6,321 staff years of technical effort (staff years) may be funded for
defense FFRDCs: Provided, That of the specific amount referred to
previously in this subsection, not more than 1,050 staff years may
be funded for the defense studies and analysis FFRDCs.
(e) The Secretary of Defense shall, with the submission of the
department's fiscal year 2005 budget request, submit a rilport pre
senting the specific amounts of staff years of technical effort to be
allocated for each defense FFRDC during that fiscal year.
(/) Notwithstanding any other provision of this Act, the total
amount appropriated in this Act for FFRDCs is hereby reduced by
$74,200,000.
SEC. 8030. None of the funds appropriated or made available
in this Act shall be used to procure carbon, alloy or armor steel
plate for use in any Government-owned facility or property under
the control of the Department of Defense which were not melted and
rolled in the United States or Canada: Provided, That these pro
curement restrictions shall apply to any and all Federal Supply
Class 9515, American Society of Testing and Materials (ASTM) or
American Iron and Steel Institute (AlSI) specifications of carbon,
alloy or armor steel plate: Provided further, That the Secretary of
the military department responsible for the procurement may waive
this restriction on a case-by-case basis by certifying in writing to the
Committees on Appropriations of the House of Representatives and
the Senate that adequate domestic supplies are not available to meet
Department of Defense requirements on a timely basis and that such
an acquisition must be made in order to acquire capability for na
tional security purposes: Provided further, That these restrictions
shall not apply to contracts which are in being as of the date of the
enactment of this Act.
SEC. 8031. For the purposes of this Act, the term "congressional
defense committees" means the Armed Services Committee of the
House of Representatives, the Armed Services Committee of the Sen
ate, the Subcommittee on Defense of the Committee on Appropria
tions of the Senate, and the Subcommittee on Defense of the Com
mittee on Appropriations of the House of Representatives.
SEC. 8032. During the current fiscal year, the Department of
Defense may acquire the modification, depot maintenance and re
pair of aircraft, vehicles and vessels as well as the production of
components and other Defense-related articles, through competition
between Department of Defense depot maintenance activities and
private firms: Provided, That the Senior Acquisition Executive of the
military department or Defense Agency concerned, with power of
delegation, shall certify that successful bids include comparable es
27
timates of all direct and indirect costs for both public and private
bids: Provided further, That Office of Management and Budget Cir
cular A-76 shall not apply to competitions conducted under this sec
tion.
SEC. 8033. (a)(l) If the Secretary of Defense, after consultation
with the United States Trade Representative, determines that a for
eign country which is party to an agreement described in paragraph
(2) has violated the terms of the agreement by discriminating
against certain types of products produced in the United States that
are covered by the agreement, the Secretary of Defense shall rescind
the Secretary's blanket waiver of the Buy American Act with respect
to such types ofproducts produced in that foreign country.
(2) An agreement referred to in paragraph (1) is any reciprocal
defense procurement memorandum of understanding, between the
United States and a foreign country pursuant to which the Sec
retary of Defense has prospectively waived the Buy American Act for
certain products in that country.
(b) The Secretary of Defense shall submit to the Congress a re
port on the amount of Department of Defense purchases from for
eign entities in fiscal year 2004. Such report shall separately indi
cate the dollar value of items for which the Buy American Act was
waived pursuant to any agreement described in subsection (a)(2),
the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any
international agreement to which the United States is a party.
(c) For purposes of this section, the term "Buy American Act"
means title III of the Act entitled '~n Act making appropriations for
the Treasury and Post Office Departments for the fiscal year ending
June 30, 1934, and for other purposes", approved March 3, 1933 (41
U.S.C. lOa et seq.).
SEC. 8034. Appropriations contained in this Act that remain
available at the end of the current fiscal year as a result of energy
cost savings realized by the Department of Defense shall remain
available for obligation for the next fiscal year to the extent, and for
the purposes, provided in section 2865 of title 10, United States
Code.
SEC. 8035. Amounts deposited during the current fiscal year to
the special account established under 40 U.S.C. 572(b)(5)(A) and to
the special account established under 10 U.S.C. 2667(d)(1) are ap
propriated a~d shall be available until transferred by the Secretary
of Defense to current applicable appropriations or funds of the De
partment of Defense under the terms and conditions specified by 40
U.S.C. 572(b)(5)(B) and 10 U.S.C. 2667(d)(1)(B), to be merged with
and to be available for the same time period and the same purposes
as the appropriation to which transferred.
SEC. 8036. The President shall include with each budget for a
fiscal year submitted to the Congress under section 1105 of title 31,
United States Code, materials that shall identify clearly and sepa
rately the amounts requested in the budget for appropriation for
that fiscal year for salaries and expenses related to administrative
activities of the Department of Defense, the military departments,
and the defense agencies.
28
SEC. 8037. Notwithstanding any other provision of law, funds

available for "Drug Interdiction and Counter-Drug Activities, De
fense" may be obligated for the Young Marines program.
SEC. 8038. During the current fiscal year, amounts contained in
the Department of Defense Overseas Military Facility Investment
- Recovery Account established by section 2921(c)(l) of the National
Defense Authorization Act of 1991 (Public Law 101-510; 10 U.S.C.
2687 note) shall be available until expended for the payments speci
fied by section 2921(c)(2) of that Act.
SEC. 8039. (a) IN GENERAL.-Notwithstanding any other provi
sion of law, the Secretary of the Air Force may convey at no cost to
the Air Force, without consideration, to Indian tribes located in the
States of North Dakota, South Dakota, Montana, and Minnesota
relocatable military housing units located at Grand Forks Air Force
Base and Minot Air Force Base that are excess to the needs of the
Air Force.
(b) PROCESSING OF REQUESTS.-The Secretary of the Air Force
shall convey, at no cost to the Air Force, military housing units
under subsection (a) in accordance with the request for such units
that are submitted to the Secretary by the Operation Walking Shield
Program on behalf of Indian tribes located in the States of North
Dakota, South Dakota, Montana, and Minnesota.
(c) RESOLUTION OF HOUSING UNIT CONFLICTS.-The Operation
Walking Shield program shall resolve any conflicts among requests
of Indian tribes for housing units under subsection (a) before sub
mitting requests to the Secretary of the Air Force under subsection
(b).
(d) INDIAN TRIBE DEFINED.-In this section, the term "Indian
tribe" means any recognized Indian tribe included on the current
list published by the Secretary of the Interior under section 104 of
the Federally Recognized Indian Tribe Act of 1994 (Public Law
103-454; 108 Stat. 4792; 25 U.S.C. 479a-1).
SEC. 8040. During the current fiscal year, appropriations which
are available to the Department of Defense for operation and main
tenance may be used to purchase items having an investment item
unit cost of not more than $250,000.
SEC. 8041. (a) During the current fiscal year, none of the appro
priations or funds available to the Department of Defense Working
Capital Funds shall be used for the purchase of an investment item
for the purpose of acquiring a new inventory item for sale or antici
pated sale during the current fiscal year or a subsequent fiscal year
to customers of the Department of Defense Working Capital Funds
if such an item would not have been chargeable to the Department
of Defense Business Operations Fund during fiscal year 1994 and
if the purchase of such an investment item would be chargeable dur
ing the current fiscal year to appropriations made to the Depart
ment of Defense for procurement.
(b) The fiscal year 2005 budget request for the Department of
Defense as well as all justification material and other documenta
tion supporting the fiscal year 2005 Department of Defense budget
shall be prepared and submitted to the Congress on the basis that
any equipment which was classified as an end item and funded in
a procurement appropriation contained in this Act shall be budg
29
eted for in a proposed fiscal year 2005 procurement appropriation
and not in the supply management business area or any other area
or category of the Department of Defense Working Capital Funds.
SEC. 8042. None of the funds appropriated by this Act for pro
grams of the Central Intelligence Agency shall remain available for
obligation beyond the current fiscal year, except for funds appro
priated for the Reserve for Contingencies, which shall remain avail
able until September 30, 2005: Provided, That funds appropriated,
transferred, or otherwise credited to the Central Intelligence Agency
Central Services Working Capital Fund during this or any prior or
subsequent fiscal year shall remain available until expended: Pro
vided further, That any funds appropriated or transferred to the
Central Intelligence Agency for advanced research and development
acquisition, for agent operations, and for covert action programs au
thorized by the President under section 503 of the National Security
Act of 1947, as amended, shall remain available until September
30,2005.
made available in this Act for the Defense Intelligence Agency may
be used for the design, development, and deployment of General De
fense Intelligence Program intelligence communications and intel
ligence information systems for the Services, the Unified and Speci
fied Commands, and the component commands.
SEC. 8044. Of the funds appropriated to the Department of De
fense under the heading "Operation and Maintenance, Defense
Wide", not less than $10,000,000 shall be made available only for
the mitigation of environmental impacts, including training and
technical assistance to tribes, related administrative support, the
gathering of information, documenting of environmental damage,
and developing a system for prioritization of mitigation and cost to
complete estimates for mitigation, on Indian lands resulting from
Department of Defense activities.
SEC. 8045. (a) None of the funds appropriated in this Act may
be expended by an entit:y of the Department of Defense unless the
entity, in expending the funds, complies with the Buy American Act.
For purposes of this subsection, the term "Buy American Act" means
title III of the Act entitled '~n Act making appropriations for the
Treasury and Post Office Departments for the fiscal year ending
June 30, 1934, and for other purposes", approved March 3, 1933 (41
U.S.C. lOa et seq.).
(b) If the Secretary of Defense determines that a person has
been convicted of intentionally affixing a label bearing a "Made in
America" inseription to any product sold in or shipped to the United
States that is not made in America, the Secretary shall determine,
in accordance with section 2410f of title 10, United States Code,
whether the person should be debarred from contracting with the
Department of Defense.
(c) In the case of any equipment or products purchased with ap
propriations provided under this Act, it is the sense of the Congress
that any entity of the Department of Defense, in expending the ap
propriation, purchase only American-made equipment and products,
provided that American-made equipment and products are cost
competitive, quality-competitive, and available in a timely fashion.
available for a contract for studies, analysis, or consulting services
30
entered into without competition on the basis of an unsolicited pro
posal unless the head of the activity responsible for the procurement
determines
(1) as a result of thorough technical evaluation, only one
source is found fully qualified to perform the proposed work;
(2) the purpose of the contract is to explore an unsolicited
proposal which offers significant scientific or technological
promise, represents the product of original thinking, and was
submitted in confidence by one source; or
(3) the purpose of the contract is to take advantage of
unique and significant industrial accomplishment by a specific
concern, or to insure that a new product or idea of a specific
concern is given financial support:
Provided, That this limitation shall not apply to contracts in an
amount of less than $25,000, contracts related to improvements of
equipment that is in development or production, or contracts as to
which a civilian official of the Department of Defense, who has been
confirmed by the Senate, determines that the award of such contract
is in the interest of the national defense.
SEC. 8047. (a) Except as provided in subsection (b) and (c),
none of the funds made available by this Act may be used
(1) to establish a field operating agency; or
(2) to pay the basic pay of a member of the Armed Forces
or civilian employee of the department who is transferred or re
assigned from a headquarters activity if the member or employ
ee's place of duty remains at the location of that headquarters.
(b) The Secretary of Defense or Secretary of a military depart
ment may waive the limitations in subsection (a), on a case-by-case
basis, if the Secretary determines, and certifies to the Committees on
Appropriations of the House of Representatives and Senate that the
granting of the waiver will reduce the personnel requirements or the
financial requirements of the department.
(c) This section does not apply to field operating agencies fund
ed within the National Foreign Intelligence Program.
SEC. 8048. Notwithstanding section 303 of Public Law 96-487
or any other provision of law, the Secretary of the Navy is author
ized to lease real and personal property at Naval Air Facility, Adak,
Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, industrial or
other purposes: Provided, That notwithstanding any other provision
of law, the Secretary of the Navy may remove hazardous materials
from facilities, buildings, and structures at Adak, Alaska, and may
demolish or otherwise dispose of such facilities, buildings, and
structures.
(RESCISSIONS)
SEC. 8049. Of the funds appropriated in Department of Defense
Appropriations Acts, the following funds are hereby rescinded from
the following accounts and programs in the specified amounts:
"Shipbuilding and Conversion, Navy, 2001/2005",
$3,835,000;
"Shipbuilding and Conversion, Navy, 2002/2006",
$9,336,000;
"Aircraft Procurement, Army, 2003/2005", $47,100,000;
"Weapons and Tracked Combat Vehicles, Army, 2003/
2005", $30,000,000;
31
"Procurement of Ammunition, Army, 2003/2005",
$36,000,000;
"Other Procurement, Army, 2003/2005", $8,000,000;
"Other Procurement, Air Force, 2003/2005", $10,000,000;
"Procurement, Defense-Wide, 2003/2005", $48,000,000;
"Research, Development, Test and Evaluation, Army, 2003/
2004", $2,989,000;
"Research, Development, Test and Evaluation, Defense
Wide, 2003/2004", $25,000,000; and
"National Defense Sealift Fund", $105,300,000.
SEC. 8050. None of the funds available in this Act may be used
to reduce the authorized positions for military (civilian) technicians
of the Army National Guard, the Air National Guard, Army Reserve
and Air Force Reserve for the purpose of applying any administra
tively imposed civilian personnel ceiling, freeze, or reduction on
military (civilian) technicians, unless such reductions are a direct
result of a reduction in military force structure.
SEC. 8051. None of the funds appropriated or otherwise made
available in this Act may be obligated or expended for assistance to
the Democratic People's Republic of North Korea unless specifically
appropriated for that purpose.
SEC. 8052. During the current fiscal year, funds appropriated
in this Act are available to compensate members of the National
Guard for duty performed pursuant to a plan submitted by a Gov
ernor of a State and approved by the Secretary of Defense under sec
tion 112 of title 32, United States Code: Provided, That during the
performance of such duty, the members of the National Guard shall
be under State command and control: Provided further, That such
duty shall be treated as full-time National Guard duty for purposes
of sections 12602(a)(2) and (b)(2) of title 10, United States Code.
SEC. 8053. Funds appropriated in this Act for operation and
maintenance of the Military Departments, Combatant Commands
and Defense Agencies shall be available for reimbursement of pay,
allowances and other expenses which would otherwise be incurred
against appropriations for the National Guard and Reserve when
members of the National Guard and Reserve provide intelligence or
counterintelligence support to Combatant Commands, Defense Agen
cies and Joint Intelligence Activities, including the activities and
programs included within the National Foreign Intelligence Pro
gram (NFIP), the Joint Military Intelligence Program (JMIP), and
the Tactical Intelligence and Related Activities (TIARA) aggregate:
Provided, That nothing in this section authorizes deviation from es
tablished Reserve and National Guard personnel and training pro
cedures.
SEC. 8054. During the current fiscal year, none of the funds ap
propriated in this Act may be used to reduce the civilian medical
and medical support personnel assigned to military treatment facili
ties below the September 30, 2002 level: Provided, That the Service
Surgeons General may waive this section by certifying to the con
gressional defense committees that the beneficiary population is de
clining in some catchment areas and civilian strength reductions
may be consistent with responsible resource stewardship and capita
tion-based budgeting.
SEC. 8055. (a) LIMITATION ON PENTAGON RENOVATION COSTS.
Not later than the date each year on which the President submits
32
to Congress the budget under section 1105 of title 31, United States
Code, the Secretary of Defense shall submit to Congress a certifi
cation that the total cost for the planning, design, construction, and
installation of equipment for the renovation of wedges 2 through 5
of the Pentagon Reservation, cumulatively, will not exceed four
times the total cost for the planning, design, construction, and in
stallation of equipment for the renovation of wedge 1.
(b) ANNUAL ADJUSTMENT.-For purposes of applying the limita
tion in subsection (a), the Secretary shall adjust the cost for the ren
ovation of wedge 1 by any increase or decrease in costs attributable
to economic inflation, based on the most recent economic assump
tions issued by the Office of Management and Budget for use in
preparation of the budget of the United States under section 1104
of title 31, United States Code.
(c) EXCLUSION OF CERTAIN CosTs.-For purposes of calculating
the limitation in subsection (a), the total cost for wedges 2 through
5 shall not include
(1) any repair or reconstruction cost incurred as a result of
the terrorist attack on the Pentagon that occurred on September
11,2001;
(2) any increase in costs for wedges 2 through 5 attrib
utable to compliance with new requirements of Federal, State,
or local laws; and
(3) any increase in costs attributable to additional security
requirements that the Secretary of Defense considers essential to
provide a safe and secure working environment.
(d) CERTIFICATION COST REPORTS.-As part of the annual cer
tification under subsection (a), the Secretary shall report the pro
jected cost (as of the time of the certification) for
(1) the renovation of each wedge, including the amount ad
justed or otherwise excluded for such wedge under the authority
of paragraphs (2) and (3) of subsection (c) for the period covered
by the certification; and
(2) the repair and reconstruction of wedges 1 and 2 in re
sponse to the terrorist attack on the Pentagon that occurred on
September 11, 2001.
(e) DURATION OF CERTIFICATION REQUIREMENT.-The require
ment to make an annual certification under subsection (a) shall
apply until the Secretary certifies to Congress that the renovation of
the Pentagon Reservation is completed.
SEC. 8056. Notwithstanding any other provision of law, that
not more than 35 percent of funds provided in this Act for environ
mental remediation may be obligated under indefinite delivery / in
definite quantity contracts with a total contract value of
$130,000,000 or higher.
SEC. 8057. (a) None of the funds available to the Department
of Defense for any fiscal year for drug interdiction or counter-drug
activities may be transferred to any other department or agency of
the United States except as specifically provided in an appropria
tions law.
(b) None of the funds available to the Central Intelligence Agen
cy for any fiscal year for drug interdiction and counter-drug activi
ties may be transferred to any other department or agency of the
United States except as specifically provided in an appropriations
law.
33
(TRANSFER OF FUNDS)
SEC. 8058. Appropriations available in this Act under the head
ing "Operation and Maintenance, Defense-Wide" for increasing en
ergy and water efficiency in Federal buildings may, during their pe
riod of availability, be transferred to other appropriations or funds
of the Department of Defense for projects related to increasing en
- ergy and water efficiency, to be merged with and to be available for
the same general purposes, and for the same time period, as the ap
propriation or fund to which transferred.
SEC. 8059. None of the funds appropriated by this Act may be
used for the procurement of ball and roller bearings other than
those produced by a domestic source and of domestic origin: Pro
vided, That the Secretary of the military department responsible for
such procurement may waive this restriction on a case-by-case basis
by certifying in writing to the Committees on Appropriations of the
House of Representatives and the Senate, that adequate domestic
supplies are not available to meet Department of Defense require
ments on a timely basis and that such an acquisition must be made
in order to acquire capability for national security purposes: Pro
vided further, That this restriction shall not apply to the purchase
of "commercial items", as defined by section 4(12) of the Office of
Federal Procurement Policy Act, except that the restriction shall
apply to ball or roller bearings purchased as end items.
available to the Department of Defense shall be made available to
provide transportation of medical supplies and equipment, on a
nonreimbursable basis, to American Samoa, and funds available to
the Department of Defense shall be made available to provide trans
portation of medical supplies and equipment, on a nonreimbursable
basis, to the Indian Health Service when it is in conjunction with
a civil-military project.
SEC. 8061. None of the funds in this Act may be used to pur
chase any supercomputer which is not manufactured in the United
States, unless the Secretary of Defense certifies to the congressional
defense committees that such an acquisition must be made in order
to acquire capability for national security purposes that is not avail
able from United States manufacturers.
SEC. 8062. Notwithstanding any other provision of law, the
Naval shipyards of the United States shall be eligible to participate
in any manufacturing extension program financed by funds appro
priated in this or any other Act or hereafter in any other Act.
SEC. 8063. Notwithstanding any other provision of law, each
contract awarded by the Department of Defense during the current
fiscal year for construction or service performed in whole or in part
in a State (as defined in section 381(d) of title 10, United States
Code) which is not contiguous with another State and has an unem
ployment rate in excess of the national average rate of unemploy
ment as determined by the Secretary of Labor, shall include a provi
sion requiring the contractor to employ, for the purpose of per
forming that portion of the contract in such State that is not contig
uous with another State, individuals who are residents of such
State and who, in the case of any craft or trade, possess or would
be able to acquire promptly the necessary skills: Provided, That the
34
Secretary of Defense may waive the requirements of this section, on
a case-by-case basis, in the interest of national security.
SEC. 8064. None of the funds made available in this or any
other Act may be used to pay the salary of any officer or employee
of the Department of Defense who approves or implements the trans
fer of administrative responsibilities or budgetary resources of any
program, project, or activity financed by this Act to the jurisdiction
- of another Federal agency not financed by this Act without the ex
press authorization of Congress: Provided, That this limitation shall
not apply to transfers of funds expressly provided for in Defense Ap
propriations Acts, or provisions of Acts providing supplemental ap
propriations for the Department of Defense.
SEC. 8065. (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES
AND SERVICES.-Notwithstanding any other provision of law, none
of the funds available to the Department of Defense for the current
fiscal year may be obligated or expended to transfer to another na
tion or an international organization any defense articles or services
(other than intelligence services) for use in the activities described
in subsection (b) unless the congressional defense committees, the
Committee on International Relations of the House of Representa
tives, and the Committee on Foreign Relations of the Senate are no
tified 15 days in advance of such transfer.
(b) COVERED ACTIVITIES.-This section applies to
(1) any international peacekeeping or peace-enforcement op
eration under the authority of chapter VI or chapter VII of the
United Nations Charter under the authority of a United Na
tions Security Council resolution; and
(2) any other international peacekeeping, peace-enforce
ment, or humanitarian assistance operation.
(c) REQUIRED NOTICE.-A notice under subsection (a) shall in
clude the following:
(1) A description of the equipment, supplies, or services to
be transferred. .
(2) A statement of the value of the equipment, supplies, or
services to be transferred.
(3) In the case of a proposed transfer of equipment or sup
plies
(A) a statement of whether the inventory requirements
of all elements of the Armed Forces (including the reserve
components) for the type of equipment or supplies to be
transferred have been met; and
(B) a statement of whether the items proposed to be
transferred will have to be replaced and, if so, how the
President proposes to provide funds for such replacement.
SEC. 8066. To the extent authorized by subchapter VI of chapter
148 of title 10, United States Code, the Secretary of Defense may
issue loan guarantees in support of United States defense exports
not otherwise provided for: Provided, That the total contingent li
ability of the United States for guarantees issued under the author
ity of this section may not exceed $15,000,000,000: Provided further,
That the exposure fees charged and collected by the Secretary for
each guarantee shall be paid by the country involved and shall not
be financed as part of a loan guaranteed by the United States: Pro
vided further, That the Secretary shall provide quarterly reports to
the Committees on Appropriations, Armed Services, and Foreign Re
35
lations of the Senate and the Committees on Appropriations, Armed
Services, and International Relations in the House of Representa
tives on the implementation of this program: Provided further, That
amounts charged for administrative fees and deposited to the spe
cial account provided for under section 2540c(d) of title 10, shall be
available for paying the costs of administrative expenses of the De
partment of Defense that are attributable to the loan guarantee pro
gram under subchapter VI of chapter 148 of title 10, United States
Code.
SEC. 8067. None of the funds available to the Department of De
fense under this Act shall be obligated or expended to pay a con
tractor under a contract with the Department of Defense for costs of
any amount paid by the contractor to an employee when
(1) such costs are for a bonus or otherwise in excess of the
normal salary paid by the contractor to the employee; and
(2) such bonus is part of restructuring costs associated with
a business combination.
SEC. 8068. (a) None of the funds appropriated or otherwise
made available in this Act may be used to transport or provide for
the transportation of chemical munitions or agents to the Johnston
Atoll for the purpose of storing or demilitarizing such munitions or
agents.
(b) The prohibition in subsection (a) shall not apply to any ob
solete World War II chemical munition or agent of the United States
found in the World War II Pacific Theater of Operations.
(c) The President may suspend the application of subsection (a)
during a period of war in which the United States is a party.
SEC. 8069. During the current fiscal year, no more than
$30,000,000 of appropriations made in this Act under the heading
"Operation and Maintenance, Defense-Wide" may be transferred to
appropriations available for the pay of military personnel, to be
merged with, and to be available for the same time period as the
appropriations to which transferred, to be used in support of such
personnel in connection with support and services for eligible orga
nizations and activities outside the Department of Defense pursuant
to section 2012 of title 10, United States Code.
SEC. 8070. During the current fiscal year, in the case of an ap
propriation account of the Department of Defense for which the pe
riod of availability for obligation has expired or which has closed
under the provisions of section 1552 of title 31, United States Code,
and whicJi has a negative unliquidated or unexpended balance, an
obligation or an adjustment of an obligation may be charged to any
current appropriation account for the same purpose as the expired
or closed account if
(1) the obligation would have been properly chargeable (ex
cept as to amount) to the expired or closed account before the
end of the period of availability or closing of that account;
(2) the obligation is not otherwise properly chargeable to
any current appropriation account of the Department of De
fense; and
(3) in the case of an expired account, the obligation is not
chargeable to a current appropriation of the Department of De
fense under the provisions of section 1405(b)(8) of the National
36
Defense Authorization Act for Fiscal Year 1991, Public Law
101-510, as amended (31 U.S.C. 1551 note): Provided, That in
the case of an expired account, if subsequent review or inves
tigation discloses that there was not in fact a negative unliqui
dated or unexpended balance in the account, any charge to a
current account under the authority of this section shall be re
versed and recorded against the expired account: Provided fur
ther, That the total amount charged to a current appropriation
under this section may not exceed an amount equal to 1 percent
of the total appropriation for that account.
SEC. 8071. Funds appropriated in title II of this Act and for the
Defense Health Program in title VI of this Act for supervision and
administration costs for facilities maintenance and repair, minor
construction, or design projects, or any planning studies, environ
mental assessments, or similar activities related to installation sup
port functions, may be obligated at the time the reimbursable order
is accepted by the performing activity: Provided, That for the pur
pose of this section, supervision and administration costs include all
in-house Government cost.
SEC. 8072. (a) Notwithstanding any other provision of law, the
Chief of the National Guard Bureau may permit the use of equip
ment of the National Guard Distance Learning Project by any per
son or entity on a space-available, reimbursable basis. The Chief of
the National Guard Bureau shall establish the amount of reim
bursement for such use on a case-by-case basis.
(b) Amounts collected under subsection (a) shall be credited to
funds available for the National Guard Distance Learning Project
and be available to defray the costs associated with the use of equip
ment of the project under that subsection. Such funds shall be avail
able for such purposes without fiscal year limitation.
SEC. 8073. Using funds available by this Act or any other Act,
the Secretary of the Air Force, pursuant to a determination under
section 2690 of title 10, United States Code, may implement cost-ef
fective agreements for required heating facility modernization in the
Kaiserslautern Military Community in the Federal Republic of Ger
many: Provided, That in the City of Kaiserslautern such agreements
will include the use of United States anthracite as the base load en
ergy for municipal district heat to the United States Defense instal
lations: Provided further, That at Landstuhl Army Regional Med
ical Center and Ramstein Air Base, furnished heat may be obtained
from private, regional or municipal services, if provisions are in
cluded for the consideration of United States coal as an energy
source.
SEC. 8074. None of the funds appropriated in title N of this Act
may be used to procure end-items for delivery to military forces for
operational training, operational use or inventory requirements:
Provided, That this restriction does not apply to end-items used in
development, prototyping, and test activities preceding and leading
to acceptance for operational use: Provided further, That this re
striction does not apply to programs funded within the National
Foreign Intelligence Program: Provided further, That the Secretary
of Defense may waive this restriction on a case-by-case basis by cer
tifying in writing to the Committees on Appropriations of the House
of Representatives and the Senate that it is in the national security
interest to do so.
37
SEC. 8075. None of the funds made available in this Act may
be used to approve or license the sale of the F-22 advanced tactical
fighter to any foreign government.
SEC. 8076. (a) The Secretary of Defense may, on a case-by-case
basis, waive with respect to a foreign country each limitation on the
procurement of defense items from foreign sources provided in law
if the Secretary determines that the application of the limitation
- with respect to that country would invalidate cooperative programs
entered into between the Department of Defense and the foreign
country, or would invalidate reciprocal trade agreements for the
procurement of defense items entered into under section 2531 of title
10, United States Code, and the country does not discriminate
against the same or similar defense items produced in the United
States for that country.
(b) Subsection (a) applies with respect to
(l) contracts and subcontracts entered into on or after the
date of the enactment of this Act; and
(2) options for the procurement of items that are exercised
after such date under contracts that are entered into before such
date if the option prices are adjusted for any reason other than
the application of a waiver granted under subsection (a).
(c) Subsection (a) does not apply to a limitation regarding con
struction of public vessels, ball and roller bearings, food, and cloth
ing or textile materials as defined by section 11 (chapters 50-65) of
the Harmonized Tariff Schedule and products classified under
headings 4010, 4202, 4203, 6401 through 6406, 6505, 7019, 7218
through 7229, 7304.41 through 7304.49, 7306.40, 7502 through
7508, 8105, 8108, 8109, 8211, 8215, and 9404.
SEC. 8077. (a) PROHIBITION.-None of the funds made available
by this Act may be used to support any training program involving
a unit of the security forces of a foreign country if the Secretary of
Defense has received credible information from the Department of
State that the unit has committed a gross violation of human rights,
unless all necessary corrective steps have been taken.
(b) MONlTORING.-The Secretary of Defense, in consultation
with the Secretary of State, shall ensure that prior to a decision to
conduct any training program referred to in subsection (a), full con
sideration is given to all credible information available to the De
partment of State relating to human rights violations by foreign se
curity forces.
(c) WAIVER.-The Secretary of Defense, after consultation with
the Secretary of State, may waive the prohibition in subsection (a)
if he determines that such waiver is required by extraordinary cir
cumstances.
(d) REPORT.-Not more than 15 days after the exercise of any
waiver under subsection (c), the Secretary of Defense shall submit
a report to the congressional defense committees describing the ex
traordinary circumstances, the purpose and duration of the training
program, the United States forces and the foreign security forces in
volved in the training program, and the information relating to
human rights violations that necessitates the waiver.
SEC. 8078. The Secretary of Defense, in coordination with the
Secretary of Health and Human Services, may carry out a program
to distribute surplus dental equipment of the Department of De
fense, at no cost to the Department of Defense, to Indian Health
38
Service facilities and to federally-qualified health centers (within
the meaning of section 1905(l)(2)(B) of the Social Security Act (42
U.S.C. 1396d(l)(2)(B))).
. SEC. 8079. None of the funds appropriated or made available
in this Act to the Department of the Navy shall be used to develop,
lease or procure the T -AKE class of ships unless the main propul
sion diesel engines and propulsors are manufactured in the United
- States by a domestically operated entity: Provided, That the Sec
retary of Defense may waive this restriction on a case-by-case basis
House of Representatives and the Senate that adequate domestic
supplies are not available to meet Department of Defense require
ments on a timely basis and that such an acquisition must be made
in order to acquire capability for national security purposes or there
exists a significant cost or quality difference.
available by this or other Department of Defense Appropriations
Acts may be obligated or expended for the purpose of performing re
pairs or maintenance to military family housing units of the De
partment of Defense, including areas in such military family hous
ing units that may be used for the purpose of conducting official De
partment of Defense business.
appropriated in this Act under the heading "Research, Development,
Test and Evaluation, Defense-Wide" for any advanced concept tech
nology demonstration project may only be obligated 30 days after a
report, including a description of the project, the planned acquisi
tion and transition strategy and its estimated annual and total cost,
has been provided in writing to the congressional defense commit
tees: Provided, That the Secretary of Defense may waive this restric
tion on a case-by-case basis by certifying to the congressional de
fense committees that it is in the national interest to do so.
SEC. 8082. The Secretary of Defense shall provide a classified
quarterly report, beginning December 15, 2003, to the House and
Senate Appropriations Committees, Subcommittees on Defense on
certain matters as directed in the classified annex accompanying
this Act.
SEC. 8083. During the current fiscal year, refunds attributable
to the use of the Government travel card, refunds attributable to the
use of the Government Purchase Card and refunds attributable to
official Government travel arranged by Government Contracted
Travel Management Centers may be credited to operation and main
tenance accounts of the Department of Defense which are current
when the refunds are received.
SEC. 8084. (a) REGISTERING FINANCIAL MANAGEMENT INFORMA
TION TECHNOLOGY SYSTEMS WITH DOD CHIEF INFORMATION OFFI
CER.-None of the funds appropriated in this Act may be used for
a mission critical or mission essential financial management infor
mation technology system (including a system funded by the defense
working capital fund) that is not registered with the Chief Informa
tion Officer of the Department of Defense. A system shall be consid
ered to be registered with that officer upon the furnishing to that
officer of notice of the system, together with such information con
cerning the system as the Secretary of Defense may prescribe. A fi
nancial management information technology system shall be consid
39
ered a mission critical or mission essential information technology
system as defined by the Under Secretary of Defense (Comptroller).
(b) CERTIFICATIONS AS TO COMPLIANCE WITH FINANCIAL MAN
AGEMENT MODERNIZATION PLAN.
(1) During the current fiscal year, a financial management
automated information system, a mixed information system
supporting financial and non-financial systems, or a system im
provement of more than $1,000,000 may not receive Milestone
A approval, Milestone B approval, or full rate production, or
their equivalent, within the Department of Defense until the
Under Secretary of Defense (Comptroller) certifies, with respect
to that milestone, that the system is being developed and man
aged in accordance with the Department's Financial Manage
ment Modernization Plan. The Under Secretary of Defense
(Comptroller) may require additional certifications, as appro
priate, with respect to any such system.
(2) The Chief Information Officer shall provide the congres
sional defense committees timely notification of certifications
under paragraph (1).
(c) CERTIFICATIONS AS TO COMPLIANCE WITH CUNGER-COHEN
ACT.
(1) During the current fiscal year, a major automated infor
mation system may not receive Milestone A approval, Milestone
B approval, or full rate production approval, or their equiva
lent, within the Department of Defense until the Chief Informa
tion Officer certifies, with respect to that milestone, that the sys
tem is being developed in accordance with the Clinger-Cohen
Act of 1996 (40 U.S.C. 1401 et seq.). The Chief Information Of
ficer may require additional certifications, as appropriate, with
respect to any such system.
(2) The Chief Information Officer shall provide the congres
sional defense committees timely notification of certifications
under paragraph (1). Each such notification shall include, at a
minimum, the funding baseline and milestone schedule for each
system covered by such a certification and confirmation that the
following steps have been taken with respect to the system:
(A) Business process reengineering.
(B) An analysis of alternatives.
(C) An economic analysis that includes a calculation of
the return on investment.
(D) Performance measures.
(E) An information assurance strategy consistent with
the Department's Global Information Grid.
(d) DEFINITIONS.-For purposes of this section:
(1) The term "Chief Information Officer" means the senior
official of the Department of Defense designated by the Sec
retary of Defense pursuant to section 3506 of title 44, United
States Code.
(2) The term "information technology system" has the
meaning given the term "information technology" in section
5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
SEC. 8085. During the current fiscal year, none of the funds
available to the Department of Defense may be used to provide sup
port to another department or agency of the United States if such
department or agency is more than 90 days in arrears in making
40
payment to the Department of Defense for goods or services pre
viously provided to such department or agency on a reimbursable
basis: Provided, That this restriction shall not apply if the depart·
ment is authorized by law to provide support to such department or
agency on a nonreimbursable basis, and is providing the requested
support pursuant to such authority: Providea further, That the Sec
retary of Defense may waive this restriction on a case-by-case basis
House of Representatives and the Senate that it is in the national
security interest to do so.
SEC. 8086. None of the funds provided in this Act may be used
to transfer to any nongovernmental entity ammunition held by the
Department of Defense that has a center-fire cartridge and a United
States military nomenclature designation of "armor penetrator",
"armor piercing (AP)", "armor piercing incendiary (API)", or
"armor-piercing incendiary-tracer (API-T)", except to an entity per
forming demilitarization services for the Department of Defense
under a contract that requires the entity to demonstrate to the satis·
faction of the Department of Defense that armor piercing projectiles
are either: (1) rendered incapable of reuse by the demilitarization
process; or (2) used to manUfacture ammunition pursuant to a con
tract with the Department of Defense or the manufacture of ammu
nition for export pursuant to a License for Permanent Export of Un
classified Military Articles issued by the Department of State.
SEC. 8087. Notwithstanding any other provision of law, the
Chief of the National Guard Bureau, or his designee, may waive
payment of all or part of the consideration that otherwise would be
required under 10 U.S.C. 2667, in the case of a lease of personal
property for a period not in excess of 1 year to any organization
specified in 32 U.S.C. 508(d), or any other youth, social, or fraternal
non-profit organization as may be approved by the Chief of the Na
tional Guard Bureau, or his designee, on a case-by-case basis.
used for the support of any nonappropriated funds activity of the
Department of Defense that procures malt beverages and wine with
nonappropriated funds for resale (including such alcoholic bev
erages sold by the drink) on a military installation located in the
United States unless such malt beverages and wine are procured
within that State, or in the case of the District of Columbia, within
the District of Columbia, in which the military installation is lo·
cated: Provided, That in a case in which the military installation
is located in more than one State, purchases may be made in any
State in which the installation is located: Provided further, That
such local procurement requirements for malt beverages and wine
shall apply to all alcoholic beverages only for military installations
in States which are not contiguous with another State: Provided
further, That alcoholic beverages other than wine and malt bev
erages, in contiguous States and the District of Columbia shall be
procured from the most competitive source, price and other factors
considered.
SEC. 8089. (a) The Department of Defense is authorized to enter
into agreements with the Department of Veterans Affairs and feder
ally-funded health agencies providing services to Native Hawaiians
for the purpose of establishing a partnership similar to the Alaska
Federal Health Care Partnership, in order to maximize Federal re
41
sources in the provision of health care services by federally-funded
health agencies, applying telemedicine technologies. For the purpose
of this partnership, Native Hawaiians shall have the same status as
other Native Americans who are eligible for the health care services
provided by the Indian Health Service.
(b) The Department of Defense is authorized to develop a con
sultation policy, consistent with Executive Order No. 13084 (issued
- May 14, 1998), with Native Hawaiians for the purpose of assuring
maximum Native Hawaiian participation in the direction and ad
ministration of governmental services so as to render those services
more responsive to the needs of the Native Hawaiian community.
(c) For purposes of this section, the term "Native Hawaiian"
means any individual who is a descendant of the aboriginal people
who, prior to 1778, occupied and exercised sovereignty in the area
that now comprises the State of Hawaii.
SEC. 8090. Funds available to the Department of Defense for
the Global Positioning System during the current fiscal year may be
used to fund civil requirements associated with the satellite and
ground control segments of such system's modernization program.
SEC. 8091. (a) Of the amounts appropriated in this Act under
the heading, ''Research, Development, Test and Evaluation, Defense·
Wide': $48,000,000 shall remain available until expended: Pro
vided, That notwithstanding any other provision of law, the Sec
retary of Defense is authorized to transfer such funds to other activi
ties of the Federal Government.
(b) Of the amounts appropriated in this Act under the heading,
"Operation and Maintenance, Army", $177,000,000 shall remain
available until expended: Provided, That notwithstanding any other
provision of law, the Secretary of Defense is authorized to transfer
such funds to other activities of the Federal Government: Provided
further, That the Secretary of Defense is authorized to enter into
and carry out contracts for the acquisition of real property, con·
struction, personal services, and operations related to projects de
scribed in further detail in the Classified Annex accompanying the
Department of Defense Appropriations Act, 2004, consistent with the
terms and conditions set forth therein: Provided further, That con
tracts entered into under the authority of this section may provide
for such indemnification as the Secretary determines to be nec
essary: Provided further, That projects authorized by this section
shall comply with applicable Federal, State, and local law to the
maximum eX/tent consistent with the national security, as deter
mined by the Secretary of Defense.
SEC. 8092. Section 8106 of the Department of Defense Appro
priations Act, 1997 (titles I through VIII of the matter under sub·
section 101(b) of Public Law 104-208; 110 Stat. 3009-111; 10
U.S.C. 113 note) shall continue in effect to apply to disbursements
that are made by the Department of Defense in fiscal year 2004.
SEC. 8093. In addition to amounts provided elsewhere in this
Act, $3,800,000 is hereby appropriated for "Defense Health Pro
gram", to remain available for obligation until expended: Provided,
That notwithstanding any other provision of law, $2,000,000 shall
be available only for a grant to the Fisher House Foundation, Inc.,
only for the construction and furnishing of additional Fisher Houses
42
to meet the needs of military family members when confronted with
the illness or hospitalization of an eligible military beneficiary, and
notwithstanding any other provision of law, $1,800,000 shall be
available only for deposit into the Army, Navy, and Air Force Fisher
House Non-appropriated Fund Instrumentalities and shall be used
in support and upkeep of existing Fisher Houses.
SEC. 8094. Amounts appropriated in titles II and IV are hereby
reduced by $504,500,000 to reflect savings attributable to improve
ments in the management of professional support services, surveys
and analysis, and contracted engineering and technical support,
and to limit excessive growth in the procurement of advisory and as
sistance services, to be distributed as follows:
(1) From "Operation and Maintenance, Army", $48,500,000;
(2) From "Operation and Maintenance, Navy", $84,400,000;
(3) Fr:om "Operation and Maintenance, Marine Corps",
$4,300,000;
(4) From "Operation and Maintenance, Air Force",
$196,300,000;
(5) From "Operation and Maintenance, Defense-Wide",
$91,000,000;
(6) From "Research, Development, Test and Evaluation,
Navy", $40,000,000; and
(7) From "Research, Development, Test and Evaluation, De
fense-Wide", $40,000,000:
Provided, That these reductions shall be applied proportionally to
each budget activity, activity group and subactivity group and each
program, project and activity within each appropriations account.
SEC. 8095. Of the amounts appropriated in this Act under the
heading "Research, Development, Test and Evaluation, Defense
Wide", $144,803,000 shall be made available for the Arrow missile
defense program: Provided, That of this amount, $80,000,000 shall
be available for the purpose of producing Arrow missile components
in the United States and Arrow missile components and missiles in
Israel to meet Israel's defense requirements, consistent with each na
tion's laws, regulations and procedures: Provided further, That
funds made available under this provision for production of mis
siles and missile components may be transferred to appropriations
available for the procurement of weapons and equipment, to be
merged with -and to be available for the same time period and the
same purposes as the appropriation to which transferred: Provided
further, That the transfer authority provided under this provision is
in addition to any other transfer authority contained in this Act.
SEC. 8096. In addition to amounts provided elsewhere in this
Act, $60,000,000 is hereby appropriated for "Aircraft Procurement,
Navy": Provided, That these funds shall be available only for trans
fer to the Coast Guard for mission essential equipment for Coast
Guard HC-130J aircraft.
43
SEC. 8097. Of the amounts appropriated in this Act under the
heading "Shipbuilding and Conversion, Navy", $635,502,000 shall
be available until September 30, 2004, to fund prior year ship
building cost increases: Provided, That upon enactment of this Act,
the Secretary of the Navy shall transfer such funds to the following
- appropriations in the amounts specified: Provided further, That the
amounts transferred shall be merged with and be available for the
same purposes as the appropriations to which transferred: .
To:
Under the heading, "Shipbuilding and Conversion,
Navy, 1996/04":
LPD-17 Amphibious Transport Dock Ship Pro
gram, $95,300,000.
Navy, 1998/04":
New SSN, $81,060,000.
Navy, 1999/04":
DDG-51 Destroyer Program, $44,420,000;
New SSN, $156,978,000;
gram, $51,100,000.
Navy, 2000/04":
gram, $112,778,000.
Navy, 2001/04":
New SSN, $62,372,000.
SEC. 8098. The Secretary of the Navy may settle, or com
promise, and pay any and all admiralty claims under 10 U.S.C.
7622 arising out of the collision involving the U.S.S.
GREENEVILLE and the EHIME MARU, in any amount and with
out regard to the monetary limitations in subsections (a) and (b) of
that section: Provided, That such payments shall be made from
funds available to the Department of the Navy for operation and
maintenance.
SEC. 8099. Notwithstanding any other provision of law or regu
lation, the Secretary of Defense may exercise the provisions of 38
U.S.C. 7403(g) for occupations listed in 38 U.S.C. 7403(a)(2) as well
as the following:
Pharmacists, Audiologists, and Dental Hygienists.
(A) The requirements of 38 U.S.C. 7403(g)(l)(A) shall

apply.
(B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall not
apply.
SEC. 8100. Funds appropriated by this Act, or made available
by the transfer of funds in this Act, for intelligence activities are
deemed to be specifically authorized by the Congress for purposes of
section 504 of the National Security Act of 1947 (50 U.S.C. 414)
44
during fiscal year 2004 until the enactment of the Intelligence Au
thorization Act for fiscal year 2004.
SEC. 8101. The total amount appropriated in title II is hereby
reduced by $200,000,000 to reduce cost growth in information tech
nology development, to be derived as follows:
(1) From "Operation and Maintenance, Army", $40,000,000.
(2) From "Operation and Maintenance, Navy", $60,000,000.
$60,000,000.
(4) From "Operation and Maintenance, Defense-Wide",
$40,000,000.
SEC. 8102. In addition to funds made available elsewhere in
this Act, $5,500,000 is hereby appropriated and shall remain avail
able until expended to provide assistance, by grant or otherwise
(such as, but not limited to, the provision of funds for repairs, main
tenance, construction, and/or for the purchase of information tech
nology, text books, teaching resources), to public schools that have
unusually high concentrations of special needs military dependents
enrolled: Provided, That in selecting school systems to receive such
assistance, special consideration shall be given to school systems in
States that are considered overseas assignments, and all schools
within these school systems shall be eligible for assistance: Provided
further, That up to $2,000,000 shall be available for the Department
of Defense to establish a non-profit trust fund to assist in the public
private funding ofpublic school repair and maintenance projects, or
provide directly to non-profit organizations who in return will use
these monies to provide assistance in the form of repair, mainte
nance, or renovation to public school systems that have high con
centrations of special needs military dependents and are located in
States that are considered overseas assignments, and of which 2
percent shall be available to support the administration and execu
tion of the funds: Provided further, That to the extent a Federal
agency provides this assistance, by contract, grant, or otherwise, it
may accept and expend non-Federal funds in combination with
these Federal funds to provide assistance for the authorized pur
pose, if the non-Federal entity requests such assistance and the non
Federal funds are provided on a reimbursable basis.
SEC. 8103. None of the funds in this Act may be used to initiate
a new start program without prior notification to the Office of Sec
retary of Defense and the congressional defense committees.
SEC. 8104. The amounts appropriated in title II are hereby re
duced by $372,000,000 to reflect cash balance and rate stabilization
adjustments in Department of Defense Working Capital Funds, as
follows:
(1) From "Operation and Maintenance, Army",
$107,000,000.
(2) From "Operation and Maintenance, Navy", $45,000,000.
$220,000,000.
SEC. 8105. The amount appropriated in title II for "Operation
and Maintenance, Navy" is hereby reduced by $44,000,000 to reduce
excess funded carryover.
SEC. 8106. (a) In addition to the amounts provided elsewhere
in this Act, the amount of $5,500,000 is hereby appropriated to the
Department of Defense for "Operation and Maintenance, Army Na
45
tional Guard". Such amount shall be made available to the Sec
retary of the Army only to make a grant in the amount of
$5,500,000 to the entity specified in subsection (b) to facilitate access
by veterans to opportunities for skilled employment in the construc
tion industry.
(b) The entity referred to in subsection (a) is the Center for Mili
tary Recruitment, Assessment and Veterans Employment, a non
- profit labor-management co-opl!ration committee provided for by sec
tion 302(c)(9) of the Labor-Management Relations Act, 1947 (29
U.S.C. 186(c)(9)), for the purposes set forth in section 6(b) of the
Labor Management Cooperation Act of 1978 (29 U.S.C. 175a note).
SEC. 8107. FINANCING AND FIELDING OF KEY ARMY CAPABILI
TIE8.-The Department of Defense and the Department of the Army
shall make future budgetary and programming plans to fully fi
nance the Non-Line of Sight (NLOS) Objective Force cannon and re
supply vehicle program in order to field this system in the 2008
timeframe. As an interim capability to enhance Army lethality, sur
vivability, and mobility for light and medium forces before complete
fielding of the Objective Force, the Army shall ensure that budgetary
and programmatic plans will provide for no fewer than six Stryker
Brigade Combat Teams to be fl,elded between 2003 and 2008.
SEC. 8108. Of the funds made available in this Act, not less
than $40,600,000 shall be available to maintain an attrition reserve
force of 18 B-52 aircraft, of which $3,800,000 shall be available
from "Military Personnel, Air Force", $25,100,000 shall be available
from "Operation and Maintenance, Air Force", and $11,700,000
shall be available from "Aircraft Procurement, Air Force": Provided,
That the Secretary of the Air Force shall maintain a total force of
94 B-52 aircraft, including 18 attrition reserve aircraft, during fis
cal year 2004: Provided further, That the Secretary of Defense shall
include in the Air Force budget request for fiscal year 2005 amounts
sufficient to maintain a B-52 force totaling 94 aircraft.
SEC. 8109. Of the funds made available under the heading "Op
eration and Maintenance, Air Force", $8,000,000 shall be available
to realign railroad track on Elmendorf Air Force Base and Fort
Richardson: Provided, That the Secretary of the Air Force is author
ized, using funds available under the heading "Operation and
Maintenance, Air Force", to complete' a phased repair project, which
repairs may include upgrades and additions, to the infrastructure
of the operational ranges managed by the Air Force in Alaska. The
total cost of such phased projects shall not exceed $26,000,000.
(TRANSFER OF FUNDS)
SEC. 8110. Of the amounts appropriated in Public Law 107
206 under the heading "Defense Emergency Response Fund", an
amount up to the fair market value of the leasehold interest in adja
cent properties necessary for the force protection requirements of
Tooele Army Depot, Utah, may be made available to resolve any
property disputes associated with Tooele Army Depot, Utah, and to
acquire such leasehold interest as required: Provided, That none of
these funds may be used to acquire fee title to the properties.
SEC. 8111. Up to $3,000,000 of the funds appropriated under
the heading "Operation and Maintenance, Navy" in this Act for the
Pacific Missile Range Facility may be made available to contract for
the repair, maintenance, and operation of adjacent off-base water,
46
drainage, and flood control systems, electrical upgrade to support
additional missions critical to base operations, and support for a
range footprint expansion to further guard against encroachment.
SEC. 8112. In addition to the amounts appropriated or other
wise made available in this Act, $34,950,000 is hereby appropriated
to the Department of Defense: Provided, That the Secretary of De
fense shall make grants in the amount of $8,500,000 to the Fort
Benning Infantry Museum; $6,000,000 to the University of South
Florida for establishment and operation of the Joint Military
Science Leadership Program; $5,000,000 to the American Red Cross
for Armed Forces Emergency Services; $3,500,000 to the National D
Day Museum; $3,000,000 to the Chicago Park District for renova
tion of the Broadway Armory; $2,100,000 to the National Guard
Youth Foundation; $2,100,000 to the Intrepid Sea-Air-Space Foun
dation; $2,000,000 to the Army Museum of the Southwest at Fort
Sill, Oklahoma; $1,500,000 to the Tredegar National Civil War
Center; $1,000,000 to the Philadelphia Korean War Memorial; and
$250,000 to the CSS Alabama Association.
SEC. 8113. None of the funds appropriated in this Act under the
heading "Overseas Contingency Operations Transfer Account" may
be transferred or obligated for Department of Defense expenses not
directly related to the conduct of overseas contingencies: Provided,
That the Secretary of Defense shall submit a report no later than
30 days after the end of each fiscal quarter to the Committees on
Appropriations of the Senate and House of Representatives that de
tails any transfer of funds from the "Overseas Contingency Oper
ations Transfer Account": Provided further, That the report shall ex
plain any transfer for the maintenance of real property, pay of civil
ian personnel, base operations support, and weapon, vehicle or
equipment maintenance.
SEC. 8114. For purposes of section 1553(b) of title 31, United
States Code, any subdivision of appropriations made in this Act
under the heading "Shipbuilding and Conversion, Navy" shall be
considered to be for the same purpose as any subdivision under the
heading "Shipbuilding and Conversion, Navy" appropriations in
any prior fiscal year, and the 1 percent limitation shall apply to the
total amount of the appropriation.
SEC. 8115. The budget of the President for fiscal year 2005 sub
mitted to the Congress pursuant to section 1105 of title 31, United
States Code shall include separate budget justification documents
for costs of United States Armed Forces' participation in contin
gency operations for the Military Personnel accounts, the Operation
and Maintenance accounts, and the Procurement accounts: Pro
vided, That these documents shall include a description of the fund
ing requested for each contingency operation, for each military serv
ice, to include all Active and Reserve components, and for each ap
propriations account: Provided further, That these documents shall
include estimated costs for each element of expense or object dass,
a reconciliation of increases and decreases for each contingency op
eration, and programmatic data including, but not limited to, troop
strength for each Active and Reserve component, and estimates of
the major weapons systems deployed in support of each contingency:
Provided further, That these documents shall include budget exhib
its OP--5 and OP-32 (as defined in the Department of Defense Fi
47
nancial Management Regulation) for all contingency operations for
the budget year and the two preceding fiscal years.
SEC. 8116. None of the funds in this Act may be used for re
search, development, test, evaluation, procurement or deployment of
nuclear armed interceptors of a missile defense system.
(TRANSFER OF FUNDS)
- SEC. 8117. Of the amounts appropriated in this Act under the
headings "Research, Development, Test and Evaluation, Navy" and
"Operation and Maintenance, Defense-Wide" $56,200,000 shall be
transferred to such appropriations available to the Department of
Defense as may be required to carry out the intent of Congress as
expressed in the Classified Annex accompanying the Department of
Defense Appropriations Act, 2004, and amounts so transferred shall
be available for the same purposes and for the same time period as
the appropriations to which transferred.
SEC. 8118. During the current fiscal year, secti!On 2533a(f) of
Title 10, United States Code, shall not apply to any fish, shellfish,
or seafood product. This section is applicable to contracts and sub
contracts for the procurement of commercial items notwithstanding
section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
430).
SEC. 8119. Notwithstanding section 2465 of title 10 U.S.C., the
Secretary of the Navy may use funds appropriated in title II of this
Act under the heading, "Operation and Maintenance, Navy", to liq
uidate the expenses incurred for private security guard services per
formed at the Naval Support Unit, Saratoga Springs, New York by
Burns International Security Services, Albany, New York in the
amount of $29,323.35, plus accrued interest, if any.
SEC. 8120. Of the amounts provided in title II of this Act under
the heading, "Operation and Maintenance, Defense-Wide",
$20,000,000 is available for the Regional Defense Counter-terrorism
Fellowship Program, to fund the education and training of foreign
military officers, ministry of defense civilians, and other foreign se
curity officials, to include United States military officers and civil
ian officials whose participation directly contributes to. the edu
cation and training of these foreign students.
SEC. 8121. (a) EXCHANGE REQUIRED.-In exchange for the pri
vate property described in subsection (b), the Secretary of the Inte
rior shall convey to the Veterans Home of California-Barstow, Vet
erans of Foreign Wars Post #385E (in this section referred to as the
"recipient''), all right, title, and interest of the United States in and
to a parcel of real property consisting of approximately one acre in
the Mojave National Preserve and designated (by section 8137 of the
Department of Defense Appropriations Act, 2002 (Public Law 107
117; 115 Stat. 2278)) as a national memorial commemorating
United States participation in World War I and honoring the'Amer
ican veterans of that war. Notwithstanding the conveyance of the
property under this subsection, the Secretary shall continue to carry
out the responsibilities of the Secretary under such section 8137.
(b) CONSIDERATION.-As consideration for the property to be
conveyed by the Secretary under subsection (a), Mr. and Mrs. Henry
Sandoz of Mountain Pass, California, have agreed to convey to the
Secretary a parcel of real property consisting of approximately five
acres, identified as parcel.APN 569-051-44, and located in the west
48
112 of the northeast 1/4 of the northwest 1/4 of the northwest 1/4 of sec
tion 11, township 14 north, range 15 east, San Bernardino base and
meridian.
(c) EQuAL VALUE EXCHANGE; ,ApPRAlSAL.-The values of the
properties to be exchanged under this section shall be equal or
equalized as provided in subsection (d). The value of the properties
shall be determined through an appraisal performed by a qualified
- appraiser in conformance with the Uniform Appraisal Standards
for Federal Land Acquisitions (Department of Justice, December
2000).
(d) CASH EQUALIZATION.-Any difference in the value of the
properties to be exchanged under this section shall be equalized
through the making of a cash equalization payment. The Secretary
shall deposit any cash equalization payment received by the Sec
retary under this subsection in the Land and Water Conservation
Fund.
.(e) REVERSIONARY CLAUsE.-The conveyance under subsection
(a) shall be subject to the condition that the recipient maintain the
conveyed property as a memorial commemorating United States
participation in World War I and honoring the American veterans
of that war. If the Secretary determines that the conveyed property
is no longer being maintained as a war memorial, the property shall
revert to the ownership of the United States.
(f) BOUNDARY ADJUSTMENT; ADMINISTRATION OF ACQUIRED
LAND.-The boundaries of the Mojave National Preserve shall be
adjusted to reflect the land exchange required by this section. The
property acquired by the Secretary under this section shall become
part of the Mojave National Preserve and be administered in ac
cordance with the laws, rules, and regulations generally applicable
to the Mojave National Preserve.
SEC. 8122. None of the funds appropriated or made available
in this Act shall be used to reduce or disestablish the operation of
the 53rd Weather Reconnaissance Squadron of the Air Force Re
serve, if such action would reduce the WC-130 Weather Reconnais
sance mission below the levels funded in this Act: Provided, That
the Air Force shall allow the 53rd Weather Reconnaissance Squad
ron to perform other missions in support of national defense require
ments during the non-hurricane season.
SEC. 8123. The Secretary of the Air Force shall convey, without
consideration, to the Inland Valley Development Agency all right,
title, and interest of the United States in and to certain parcels of
real property, including improvements thereon, located in San
Bernardino, California, that consist of approximately 39 acres and
are leased, as of June 1, 2003, by the Secretary to the Defense Fi
nance and Accounting Service. The conveyance shall be subject to
the condition that the Inland Valley Development Agency and the
Director of the Defense Finance and Accounting Service enter into
a lease-back agreement, acceptable to the Director, for premises re
quired by the Director for support operations conducted by the De
fense Finance and Accounting Service.
SEC. 8124. Notwithstanding the provisions of section 2401 of
title 10, United States Code, the Secretary of the Navy is authorized
to enter into a contract for the charter for a period through fiscal
year 2008, of the vessel, RV CORY CHOUEST (United States Offi
cial Number 933435) in support of the Surveillance Towed Array
49
Sensor (SURTASS) program: Provided, That funding for this lease
shall be from within funds provided in this Act and future appro
priations Acts.
SEC. 8125. In addition to the amounts appropriated or other
wise made available elsewhere in this Act, and notwithstanding any
other provision oflaw, $17,000,000 is hereby appropriated to "Oper
ation and Maintenance, Army", to remain available until September
30, 2004, to be available only for a grant in the amount of
$17,000,000 to the Silver Valley Unified School District, Silver Val
ley, California, for the purpose of school construction at Fort Irwin,
California.
SEC. 8126. (a) The total amount appropriated or otherwise
made available in titles II, III, and N of this Act is hereby reduced
by $1,662,000,000 to reflect savings from outsourcing, management
efficiencies, and revised economic assumptions, to be distributed as
follows:
"Title II", $554,000,000;
"Title III", $554,000,000; and
"Title N", $554,000,000.
(b) The Secretary of Defense shall allocate this reduction pro
portionately to each budget activity, activity group, subactivity
group, and each program, project, and activity within each applica
ble appropriation account: Provided, That appropriations made
available in this Act for the pay and benefits of military personnel
are exempt from reductions under this provision.
SEC. 8127. (a) The amount appropriated in title II for "Oper
ation and Maintenance, Air Force" is hereby reduced by
$451,000,000 to reflect cash balance and rate stabilization adjust
ments in the Department of Defense Transportation Working Cap
ital Fund.
(b) Not later than 60 days after the date of the enactment of this
Act, the Secretary of Defense shall transfer $451,000,000 from the
Department of Defense Transportation Working Capital Fund to
"Operation and Maintenance,' Air Force" to offset the reduction
made by subsection (a). The transfer required by this subsection is
in addition to any other transfer authority provided to the Depart
ment of Defense.
(RESCISSION)
SEC. 8128. Of the funds made available in chapter 3 of title I
of the Emergency Wartime Supplemental Appropriations Act, 2003
(Public Law 108-11), under the heading "Iraq Freedom Fund",
$3,490,000,000 are hereby rescinded.
SEC. 8129. Of the total amount appropriated by this Act under
the heading "Operation and Maintenance, Defense-Wide", the Sec
retary of Defense may use up to $855,566 to make additional pay
ment under secti.on 363 of the Floyd D. Spence National Defense Au
thorization Act for Fiscal Year 2001 (20 U.S.C. n03a) to those local
educational agencies whose percentage reduction in the payment
amount for fiscal year 2002 was in excess of the reduction otherwise
imposed under subsection (d) of such section for that fiscal year.
The Secretary of Defense may waive collection of any overpayment
50
made to local educational agencies under such section for fiscal year
2002.
available by this Act may be used to implement any amendment or
revision of, or cancel, the Department of Defense Directive 1344.7,
"Personal Commercial Solicitation on DoD Installations", until 90
days following the date the Secretary of Defense submits to Congress
notice of the amendment, revision or cancellation, and the reasons
therefore.
SEC. 8131. (a) Notwithstanding any other provision of law,
none of the funds appropriated or otherwise made available in this
or any other Act may be obligated for the Terrorism Information
Awareness Program: Provided, That this limitation shall not apply
to the program hereby authorized for Processing, analysis, and col
laboration tools for counterterrorism foreign intelligence, as de
scribed in the Classified Annex accompanying the Department of
Defense Appropriations Act, 2004, for which funds are expressly
provided in the National Foreign Intelligence Program for
counterterrorism foreign intelligence purposes.
(b) None of the funds provided for Processing, analysis, and col
laboration tools for counterterrorism foreign intelligence shall be
available for deployment or implementation except for:
(1) lawful military operations of the United States con
ducted outside the United States; or
(2) laWful foreign intelligence activities conducted wholly
overseas, or wholly against non-United States citizens.
(c) In this section, the term "Terrorism Information Awareness
Program" means the program known either as Terrorism Informa
tion Awareness or Total Information Awareness, or any successor
program, funded by the Defense Advanced Research Projects Agen
cy, or any other Department or element of the Federal Government,
including the individual components of such Program developed by
the Defense Advanced Research Projects Agency.
SEC. 8132. (a) CLOSURE OF NAVAL STATION ROOSEVELT ROADS,
PUERTO RICO.-Notwithstanding any other provision of law, the
Secretary of the Navy shall close Naval Station Roosevelt Roads,
Puerto Rico, no later than 6 months after enactment of this Act.
(b) IMPLEMENTATION.-The closure provided for in subsection
(a), and subsequent disposal, shall be carried out in accordance
with the procedures and authorities contained in the Defense Base
Closure and Realignment Act of 1990 (title XXIX of Public Law
101-510; 10 U.s.C. 2687 note).
(c) OFFlGE OF ECONOMIC ADJUSTMENT ACTNITIES.-Notwith
standing any other provision of law, the Office of Economic Adjust
ment or the Department of Defense may make grants and supple
ment other Federal funds using funds made available by' this Act
under the heading "Operation and Maintenance, Defense-Wide",
and the projects so supported shall be considered to be authorized
by law.
SEC. 8133. Up to $2,000,000 of the funds appropriated by this
Act under the heading, "Operation and Maintenance, Army", may
be made available to contract for services required to solicit non
Federal donations to support construction and operation of the
United States Army Museum at Fort Belvoir, Virginia: Provided,
That notwithstanding any other provision of law, the Army is au
51
thorized to receive future payments in this or the subsequent fiscal
year from any non-profit organization chartered to support the
United States Army Museum to reimburse amounts expended by the
Army pursuant to this section: Provided further, That any reim
bursements received pursuant to this section shall be merged with
"Operation and Maintenance, Army" and shall be made available
for the same purposes and for the same time period as that appro
priation account.
SEC. 8134. DESIGNATION OF AMERICA'S NATIONAL WORLD WAR
II MUSEUM. (a) FINDINGs.-Congress makes the following findings:
(1) The National D-Day Museum, operated in New Orleans,
Louisiana by an educational foundation, has been established
with the vision "to celebrate the American Spirit".
(2) The National D-Day Museum is the only museum in the
United States that exists for the exclusive purpose of inter
preting the American experience during the World War II years
(1939-1945) on both the battlefront and the home front and, in
doing so, covers all of the branches of the Armed Forces and the
Merchant Marine.
(3) The National D-Day Museum was founded by the pre
eminent American historian, Stephen E. Ambrose, as a result of
a conversation with President Dwight D. Eisenhower in 1963,
when the President and former Supreme Commander, Allied
Expeditionary Forces in Europe, credited Andrew Jackson Hig
gins, the chief executive offwer of Higgins Industries in New Or
leans, as the "man who won the war for us" because the 12,000
landing craft designed by Higgins Industries made possible all
of the amphibious invasions of World War II and carried Amer
ican soldiers into every theatre of the war.
(4) The National D-Day Museum, since its grand opening
on June 6, 2000, the 56th anniversary of the D-Day invasion of
Normandy, has attracted nearly 1,000,000 visitors from around
the world, 85 percent of whom have been Americans from across
the country.
(5) American World War II veterans, called the "greatest
generation" of the Nation, are dying at the rapid rate of more
than 1,200 veterans each day, creating an urgent need to pre
serve the stories, artifacts, and heroic achievements of that gen
eration.
(6) The United States has a need .to preserve forever the
knowledge and history of the Nation's most decisive achieve
ment in the 20th century and to portray that history to citizens,
visitors, and school children for centuries to come.
(7) Congress, recognizing the need to preserve this knowl
edge and history, appropriated funds in 1992 to authorize the
design and construction of The National D-Day Museum in
New Orleans to commemorate the epic 1944 Normandy inva
sion, and subsequently appropriated additional funds in 1998,
2000, 2001, 2002, and 2003 to help expand the exhibits in the
museum to include the D-Day invasions in the Pacific Theatre
of Operations and the other campaigns of World War II.
(8) The State of Louisiana and thousands of donors and
foundations across the country have contributed millions of dol
lars to help build this national institution.
52
(9) The Board of Trustees of The National D-Day Museum
is national in scope and diverse in its makeup.
(10) The World War II Memorial now under construction
on the National Mall in Washington, the District of Columbia,
will always be the memorial in our Nation where people come
to remember America's sacrifices in World War II, while The
National D-Day Museum will always be the museum of the
American experience in the World War II years (1939-1945),
where people come to learn about Americans' experiences during
that critical period, as well as a place where the history of our
Nation's monumental struggle against worldwide aggression by
would-be oppressors is preserved so that future generations can
understand the role the United States played in the preserva
tion and advancement of democracy and freedom in the middle
of the 20th century.
(11) The National D-Day Museum seeks to educate a di
verse group of audiences through its collection of artifacts, pho
tographs, letters, documents, and first-hand personal accounts
of the participants in the war and on the home front during one
of history's darkest hours.
(12) The National D-Day Museum is devoted to the combat
experience of United States citizen soldiers in all of the theatres
of World War II and to the heroic efforts of the men and women
on the home front who worked tirelessly to support the troops
and the war effort.
(13) The National D-Day Museum continues to add to and
maintain one of the largest personal history collections in the
United States of the men and women who fought in World War
II and who served on the home front.
(14) No other museum describes as well the volunteer spirit
that arose throughout the United States and united the country
during the World War II years.
(15) The National D-Day Museum is engaged in a 250,000
square foot expansion to include the Center for the Study of the
American Spirit, an advanced format theatre, and a new
United States pavilion.
(16) The planned "We're All in this Together" exhibit will
describe the role every State, commonwealth, and territory
played in World War II, and the computer database and soft
ware of The National D-Day Museum's educational program
will be Tftade available to the teachers and school children of
every State, commonwealth, and territory.
(17) The National D-Day Museum is an official Smithso
nian affiliate institution with a formal agreement to borrow
Smithsonian artifacts for future exhibitions.
(18) Le Memorial de Caen in Normandy, France has for
mally recognized The National D-Day Museum as its official
partner in a Patriotic Alliance signed on October 16, 2002, by
both museums.
(19) The official Battle of the Bulge museums in Luxem
bourg and the American Battlefield Monuments Commission
are already collaborating with The National D-Day Museum on
World War II exhibitions.
53
(20) For all of these reasons, it is appropriate to designate
The National D-Day Museum as "America's National World
War II Museum".
(b) PURPOSES.-The purposes of this section are, through the
designation of The National D-Day Museum as '~merica's National
World War II Museum", to express the United States Government's
support for
(1) the continuing preservation, maintenance, and interpre
tation of the artifacts, documents, images, and history collected
by the museum;
(2) the education of the American people as to the American
experience in combat and on the home front during the World
War II years, including the conduct of educational outreach
programs for teachers and students throughout the United
States;
(3) the operation of a premier facility for the public display
of artifacts, photographs, letters, documents, and personal his
tories from the World War II years (1939-1945);
(4) the further expansion of the current European and Pa
cific campaign exhibits in the museum, including the Center for
the Study of the American Spirit for education; and
(5) ensuring the understanding by all future generations of
the magnitude of the American contribution to the Allied victory
in World War II, the sacrifices made to preserve freedom and
democracy, and the benefits of peace for all future generations
in the 21st century and beyond.
(c) DESIGNATION OF "AMERICA'S NATIONAL WORLD WAR II Mu
SEUM".-The National D-Day Museum, New Orleans, Louisiana, is
designated as '~merica's National World War II Museum".
SEC. 8135. NATIVE AMERICAN VETERAN HOUSING LOANS. (a)
Title I of Division K of the Consolidated Appropriations Resolution,
2003 (Public Law 108-7) is amended by striking out "expenses: Pro
vided, That no new loans in excess of $5,000,000 may be made in
fiscal year 2003." from the paragraph under the heading "Native
American Veteran Housing Loan Program Account" and. inserting
in lieu thereof "expenses.".
(b) The amendment made by subsection (a) of this section is ef
fective on the date of the enactment of Public Law 108-7, February
20,2003.
SEC. 8136. None of the funds appropriated in this Act shall be
used to study, demonstrate, or implement any plans privatizing, di
vesting or transferring of any Civil Works missions, functions, or re
sponsibilities for the United States Army Corps of Engineers to
other government agencies without specific direction in a subsequent
Act of Congress.
SEC. 8137. None of the funds provided in this Act may be used
to pay any fee charged by the Department of State for the purpose
of constructing new United States diplomatic facilities.
SEC. 8138. (a) The Secretary of Defense
(l) shall review
(AJ contractual offset arrangements to which the policy
established under section 2532 of title 10, United States
Code, applies that are in effect on the date of the enactment
of this Act;
- -- - - --------- -----~------ --------------------------
54
(B) memoranda of understanding and related agree

ments to which the limitation in section 2531(c) of such
title applies that have been entered into with a country
with respect to which such contractual offset arrangements
have been entered into and are in effect on such date; and
(C) waivers granted with respect to a foreign country
under section 2534(d)(3) of title 10, United States Code,
that are in effect on such date; and
(2) shall determine the effects of the use of such arrange
ments, memoranda of understanding, agreements, and waivers
on the national technology and industrial base.
(b) The Secretary shall submit a report on the results of the re
view under subsection (a) to Congress not later than March 1, 2005.
The report shall include a discussion of each of the following:
(1) The effects of the contractual offset arrangements on
specific subsectors of the industrial base of the United States
and what actions have been taken to prevent or ameliorate any
serious adverse effects on such subsectors.
(2) The extent, if any, to which the contractual offset ar
rangements and memoranda of understanding and related
agreements have provided fo'r technology transfer that would
significantly and adversely affect the national technology and
industrial base.
(3) The extent to which the use of such contractual offset ar
rangements is consistent with
(AJ the limitation in section 253l(c) of title 10, United
States Code, that prohibits implementation of a memo
randum of understanding and related agreements if the
President, taking into consideration the results of the inter
agency review, determines that such memorandum of un
derstanding or a related agreement has or is likely to have
a significant adverse effect on United States industry that
outweighs the benefits of entering into or implementing
such memorandum or agreement; and
(B) the requirements under section 2534(d) of such title
that
(i) a waiver granted under such section not impede
cooperative programs entered into between the Depart
ment of Defense and a foreign country and not impede
the reciprocal procurement of defense items that is en
tered into in accordance with section 2531 of such title;
and
(ii) the country with respect to which the waiver is
granted not discriminate against defense items pro
duced in the United States to a greater degree than the
United States discriminates against defense items pro
duced in that country.
(c) The Secretary shall submit to the President any rec
ommendations regarding the use or administration of contractual
offset arrangements and memoranda of understanding and related
agreements referred to in subsection (a) that the Secretary considers
an appropriate response to the findings resulting from the Sec
retary's review.
SEC. 8139. It is the sense of the Senate that
55
(1) any request for funds for a fiscal year for an ongoing
overseas military operation, including operations in Afghani
stan and Iraq, should be included in the annual budget of the
President for such fiscal year as submitted to Congress under
section 1l05(a) of title 31, United States Code; and
(2) any funds provided for such fiscal year for such a mili
tary operation should be provided in appropriations Acts for
such fiscal year through appropriations to specific accounts set
forth in such Acts.
SEC. 8140. STUDY REGARDING MAIL DELNERY IN THE MIDDLE
EAST. (a) STUDY.-The Comptroller General of the United States
shall conduct a review of the delivery of mail to troops in the Mid
dle East and the study should:
(1) Determine delivery times, reliability, and losses for mail
and parcels to and from troops stationed in the Middle East.
(2) Identify and analyze mail and parcel delivery service ef
ficiency issues during Operations Desert Shield / Desert Storm,
compared to such services which occurred during Operation
Iraqi Freedom.
(3) Identify cost efficiencies and benefits of alternative de
livery systems or modifications to existing delivery systems to
improve the delivery times of mail and parcels.
(b) REPORT.-Not later than 60 days after the date of enactment
of this Act, the Comptroller General of the United States shall sub
mit a report to the congressional defense committees on their find
ings and recommendations.
SEC. 8141. (a) LIMITATION ON USE OF FUNDS.-Notwith
standing any other provision of law, no funds appropriated or oth
erwise made available by this Act may be obligated or expended to
decommission a Naval or Marine Corps Reserve aviation squadron
until the report required by subsection (b) is submitted to the com
mittees of Congress referred to in that subsection.
(b) REPORT ON NAVY AND MARINE CORPS TACTICAL AVIATION
REQUIREMENTS.
(1) Not later than February 1, 2004, the Comptroller Gen
eral of the United States shall submit to the congressional de
fense committees a report on the requirements of the Navy and
the Marine Corps for tactical aviation, including mission re
quirements, recapitalization requirements, and the role of
Naval and Marine Corps Reserve assets in meeting such re
quirements.
(2) The report shall include the recommendations of the
Comptroller General on an appropriate force structure for the
active and reserve aviation units of the Navy and the Marine
Corps, and related personnel requirements, for the 10-year pe
riod beginning on the date of the report.
SEC. 8142. The Secretary of the Air Force, in consultation with
the Chief of Air Force Reserve, shall study the mission of the 932nd
Airlift Wing, Scott Air Force Base, Illinois, and evaluate whether it
would be appropriate to substitute for that mission a mixed mission
of transporting patients, passengers, and cargo that would increase
the airlift capability of the Air Force while continuing the use and
training of aeromedical evacuation personnel. The Secretary shall
submit a report on the results of the study and evaluation to the
congressional defense committees not later than January 16, 2004.
56
SEC. 8143. REPORTS ON SAFETY ISSUES DUE TO DEFECTNE
PARTS. (a) REPORT FROM THE SECRETARY.-The Secretary shall by
March 31, 2004, examine and report back to the congressional de
fense committees on
(1) how to implement a system for tracking safety-critical
parts so that parts discovered to be defective, including due to
faulty or fraudulent work by a contractor or subcontractor, can
be identified and found;
(2) appropriate standards and procedures to ensure timely
notification of contracting agencies and contractors about safety
issues including parts that may be defective, and whether the
Government Industry Data Exchange Program should be made
mandatory;
(3) efforts to find and test airplane parts that have been
heat treated by companies alleged to have done so improperly;
and
(4) whether contracting agencies and contractors have been
notified about alleged improper heat treatment of airplane
parts.
(b) REPORT FROM THE COMPTROLLER GENERAL.-The Comp
troller General shall examine and report back to the congressional
defense committees on
(1) the oversight of subcontractors by prime contractors,
and testing and quality assurance of the work of the sub
contractors; and
(2) the oversight of prime contractors by the Department,
the accountability of prime contractors for overseeing sub
contractors, and the use of enforcement mechanisms by the De
partment.
SEC. 8144. Section 8149(b) of the Department of Defense Appro
priations Act, 2003 (Public Law 107-248; 116 Stat. 1572) is amend
ed by adding at the end the following new e.aragraph:
"(3) This subsection shall remain in effect for fiscal year 2004.".
SEC. 8145. (a) The Secretary of the Navy shall transfer by gift
under section 7306 of title 10, United States Code, the Sturgeon
Class submarine NARWHAL (SSN-671) to the National Submarine
Science Discovery Center, Newport, Kentucky, upon receipt of an ap
plication for donation of such vessel to the Center that is satisfac
tory to the Secretary.
(b) Before transferring the submarine as required under sub
section (a), the Secretary shall remove the nuclear reactor compart
ment and the other classified or otherwise sensitive military equip
ment of the submarine.
(c) Subsection (c) of section 7306 of title 10, United States Code,
does not apply to the cost of carrying out subsection (b) of this sec
tion, any other cost of dismantling the submarine, and the cost of
any recycling or disposal of equipment and materiel removed from
the submarine before transfer.
(d) Subsection (d) of section 7306 of title 10, United States
Code, does not apply to the transfer required under subsection (a).
SEC. 8146. FISCAL YEAR 2004 EXEMPTION FOR CERTAIN MEM
BERS OF THE ARMED FORCES FROM REQUIREMENT TO PAY SUBSIST
ENCE CHARGES WHILE HOSPITALIZED. (a) IN GENERAL.-Section
1075 of title 10, United States Code, is amended
(1) by inserting "(a) IN GENERAL.-" before "When"; and
57
(2) by striking the second sentence and inserting the fol
lowing:
"(b) EXCEPTIONS.-Subsection (a) shall not apply to any of the
following:
"(1) An enlisted member, or former enlisted member, of a
uniformed service who is entitled to retired or retainer payor
equivalent pay.
"(2) An officer or former officer of a uniformed service, or
an enlisted member or former enlisted member of a uniformed
service not described in paragraph (1), who is hospitalized
under section 1074 because of an injury incurred (as deter
mined under criteria prescribed by the Secretary of Defense)
"(A) as a direct result of armed conflict;
"(B) while engaged in hazardous service;
"(C) in the performance of duty under conditions simu
lating war; or
"(D) through an instrumentality of war.
"(c) JlpPLICABILITY.-The exception provided in paragraph (2) of
subsection (b) shall apply only during fiscal year 2004.".
(b) EFFECTIVE DATE.-Subsections (b) and (c) of section 1075 of
title 10, United States Code, as added by subsection (a), shall take
effect on October 1, 2003, and apply with respect to injuries in
curred before, on, or after that date.
This Act may be cited as the "Department of Defense Appropria
tions Act, 2004".
And the Senate agree to the same.
JERRY LEWIS,
C. W. BILL YOUNG,
DAVID L. HOBSON,
HENRY BONILLA,
GEORGE R. NETlfERCUIT, Jr.,
RANDY "DUKE" CUNNINGHAM
RODNEY P. FRELINGHUYSEN, ,
TODD TIAHRT,
ROGER F. WICKER,
JOHN P. MURTlfA,
NORMAN D. DICKS,
MARTIN OLAV SABO,
PETER J. VISCLOSKY,
JAMES P. MORAN,
DAVID R. OBEY,
Managers on the Part of the House.

TED STEVENS,
THAD COCHRAN,
ARLEN SPECTER,
PETE V. DOMENICI,
CHRISTOPHER S. BOND,
MITCH MCCONNELL,
RIClfARD C. SHELBY,
JUDD GREGG,
KAy BAILEY HUTCHISON,
CONRAD BURNS,
DANIEL K. INOUYE,
ERNEST F. HOLLINGS,
58
ROBERT C. BYRD,
PATRICK J. LEAHY,
TOM HARKIN,
BYRON L. DORGAN,
RICHARD J. DURBIN,
!lARRy REID,
DIANNE FEINSTEIN,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT
The managers on the part of the House and the Senate at the
conference on the disagreeing votes of the two Houses on the
amendment of the Senate to the bill (H.R. 2658), making appro
priations for the Department of Defense for the fiscal year ending
September 30, 2004, and for other purposes, submit the following
joint statement to the House and the Senate in explanation of the
effect of the action agreed upon by the managers and recommended
in the accompanying conference report.
The conference agreement on the Department of Defense Ap
propriations Act, 2004, incorporates some of the provisions of both
the House and Senate versions of the bill. The language and alloca
tions set forth in House Report 108-187 and Senate Ret>0rt 108
87 should be complied with unless specifically addressed ill the ac
companying bill and statement of the managers to the contrary.
Senate Amendment: The Senate deleted the entire House bill
after the enacting clause and inserted the Senate bill. The con
ference agreement includes a revised bill.
DEFINITION OF PROGRAM, PROJECT, AND ACTMTY
The conferees agree that for the purposes of the Balanced
Budget and Emergency Deficit Control Act of 1985 (Public Law 99
177) as amended by the Balanced Budget and Emergency Deficit
Control ReaffIrmation Act of 1987 (Public Law 100-119) and by the
Budget Enforcement Act of 1990 (Public Law 101-508), the term
program, project, and activity for app'ropriations contained in this
Act shall be defined as the most specIfic level of budget items iden
tified in the Department of Defense Appropriations Act, 2004, the
accompanying House and Senate Committee reports, the conference
report and accompanying joint explanatory statement of the man
agers of the Committee of Conference, the related classified an
nexes and reports, and the P-1 and R-1 budget justification docu
ments as subsequently modified by Congressional action. The fol
lowing exception to the above definition shall apply: for the Mili
tary Personnel and the Operation and Maintenance accounts, the
term "program, project, and activity" is defined as the appropria
tions accounts contained in the Department of Defense Appropria
tions Act.
At the time the President submits his budget for fiscal year
2005, the conferees direct the Department of Defense to transmit
to the congressional defense committees budget justification docu
ments to be known as the "M-1" and "0-1" which shall identify,
at the budget activity, activity group, and subactivity group level,
the amounts requested by the President to be appropriated to the
Department of Defense for military personnel and operation and
maintenance in any budget request, or amended budget request,
for fiscal year 2005.
(59)
60
SPECIAL INTEREST ITEMS
Items for which additional funds have been provided as shown
in the project level adjustment tables or items identified in para
graphs using the phrase "only for" or "only to" in this Statement,
are congressional interest items for the purpose of the Base for Re
programming (DD 1414). Each of these items must be carried on
- the DD Form 1414 at the stated amount, or a revised amount if
changed during the conference or if otherwise specifically addressed
in the conference report. These items remain special interest items
whether or not they are repeated in a subsequent conference report
or Statement.
REPROGRAMMING GUIDANCE
The conferees note that the conference report accompanying
Public Law 108-7 provided a temporary increase in the thresholds
for the prior approval reprogramming of funds for the procurement
and research, development, test and evaluation accounts of the De
partment of Defense. The conferees wish to emphasize that this re
vision was intended to effect only the execution of funds available
for fiscal year 2003.
The conferees are aware that the Department of Defense be
lieves a greater degree of latitude is needed to best utilize the re
sources appropriated by the Congress. The conferees have long held
that better management and budget preparation is the solution to
DoD's needs, not greater fiscal flexibility which would result in less
accountability to America's taxpayers. It is true that the effect of
inflation has diluted the value of numerical below threshold limits.
The conferees, therefore, agree to continue the temporary re
programming threshold increases, approved for fiscal year 2003, for
procurement and research, development, test and evaluation funds
provided in this Act for fiscal year 2004. The conferees believe the
Defense Department needs to provide more convincing arguments
if it expects the Committees to approve this change permanently.
The conferees also want to be clear that the approved below thresh
old reprogramming limitations are the specific dollar threshold al
lowed for fiscal year 2003, or 20 percent of any specific line item,
which ever is less.
The conferees direct that the Secretary of Defense provide
guidance to this effect to the military Services and Defense-Wide
activities within 15 days of enactment of this Act and provide the
congressional defense committees with a copy of this guidance.
TIMELINESS OF BUDGET JUSTIFICATION MATERIALS
The conferees concur with Senate Report 108-87 regarding the
timeliness of budget justification materials received from the De
partment of Defense, and expect the problem to be resolved with
the fiscal year 2005 budget estimate.
CLASSIFIED ANNEX
Adjustments to classified programs are addressed in the classi
fied annex accompanying this report.
61
TIlLE I .- MILITARY PERSONNEL
The conference agreement on items addressed by either the House or the
Senate is as follows:
(In thousands of dollars)

Budget House Sen.te Conference
30600 RECAPITULATION
30850 'U LIT Aiff peRSONNEL, ARl'IY. 37,386.380 28,233,436 28.262,764 28,247,667
30900 I'Hl.ITAR'f PERSQ.JtNEL, NAif'(. 25,282,454 23,062,001 23.309,791 23,2'1,298
30850 MILITARY F'ERSONHEL, MARINE r;;ORPs •. 9,~~9,441 8,982,197 8.994.428 8.971.897
31000 f'l1L-ITARY PERSONNEL. AIR FORCE. •. 26,71&,990 23,121,003 22.993,On 22,910,868
3.~,e25 3.5&4.735 3.56e,125
31100 RESERVE PERSONNEL, NAVY .. 1 ,9S3,1~3 2.027,945 2,002,12 7
JttSO RESERVE PERSONNEL, MRINE CORPS .. 61'1, .... 587.119 511,444
31200 ResERVE PERSONNEL, AIR FORCE •• 1.287.I!IBlI , ,332.301 1.268.086
31250 NATIONAL GUARD PERSONNEL, AAl'!Y",. 5,382,719 8,598,$04 5.500.369
3'300 NAT10N~l G\lARD PERSONNEL, AIR FORCE •.• ,.,. 2.140,698 2,228,830 2."4,598
._.:lI:IGI.lII~= ==1:::=:11====== :II1l.=.~.;aS=':;;1: al::':=:IID:llll:t===
31350 GRANO TOTAL. "ILlTARY PERSONNEL, .• 98,944.2&5 98,283,064 98.939,987 98,453,581

62
ACCURACY OF OBLIGATIONS
The conferees recommend a reduction of $115,000,000 to the
b!-ldget request, based on a General Accounting Office (GAO) review
of prior year unobligated and unexpended military personnel ac
count balances. The Services certify the accuracy of present and
prior year obligation balances annually; however, not all of the
_ funds obligated are expended, and those unexpended balances are
not always identified in the annual review certification process. Be
cause the Services account data continue to show. a pattern of
underspending their appropriated funds, the conferees believe that
the fiscal year 2004 military personnel budget request is overstated
and can be reduced.
The conferees believe the Services can improve their appropria
tion balance review below the budget activity to ensure that funds
are properly obligated and expended. The conferees direct the Sec
retary of Defense to ensure that the Services strengthen the annual
review process by including a review of the accuracy of prior year
appropriations below the budget activity level. To facilitate this re
view, the financial management improvement initiative should in
clude financial decision-making processes that provide trans
parency of disbursements at the same level as the budget submis
sion.
FAMILY SEPARATION ALLOWANCE AND IMMINENT DANGER PAY
The conferees recommend $128,000,000 above the budget re
quest for Family Separation Allowance and Imminent Danger Pay
instead of $210,205,000 as proposed by the Senate. These funds are
provided for increases in Family Separation Allowance and Immi
nent Danger Pay as authorized in Public Law 108-11.
FORCE STRUCTURE CHANGES
The conferees recommend a total of $147,100,000 in the mili
tary personnel, operation and maintenance, and procurement ac
counts for force structure that was not included in the budget re
quest, as follows:
[In thousands of dollars]
Milpers O&M Proc. Total
Air Force 8-52 aircraft $3,800 25,100 $11,700 40,600

National Guard FUll-Time Support:
ARNG Civil Support Teams AGRs 18,000 39,300 26,900 88,200
ANG CiVil Support ,Teams AGRs 4,000 4,000
Ground-Based Midcourse Missile Defense Program AGRs 14,300 14,300
ACTIVE END STRENGTH

[Fiscal year 2004)
Budget Conterence Conference vs.

budget
Army .. 4BO,000 480,000

Navy .. 373,800 373,800
Marine Corps .. 175,000 175,000
Air Force . 359,300 359,300
- ._._------------
63
ACTIVE END STRENGTH-Continued
[Fiscal year 2004]
.Conference vs
Budget Conferef\ce
buoget
Total, Active Personnel , " ",.',., , , ,..', ',.., '," ..",.. L388,100 1,388,100
64
MILITARY PERSONNEL, ARMY
(In thousandIJ of d01IDrs)

BUdget Haute Sel18te Confer'l1c:;e
~o 'tILttARY PERSONNEL, AR'ff
100 ACTIVITY 1: PAY AND A..LOW/lHCE5 OF OFFICER
150 BASIC PAY .•.

4,412,910 4,412,910 4,412.910 4,.'2.910
2DO RETIRED PAY ACCRUAL.

1,195.923 1.195,923 t,196.823 1,195,923
2eo DEFENSE HEA.LTH "'RCGRM ACCRUAL .• 361,924 381.924 361,924 361,924
300 BAStC ALl.OWAJlCE FOR HOUSING .. a1, ,721 61,.721 811,121 811,721
350 BASIC ALLOWANCE FOR SUDS1STnCE., 166.121 168 721 tfoB.721 ,BfI,721
400 INCENTIVE PAYS •• 77,194 77, tQ4 77 ,194 7T "g"

4:iD SPECIAL PAYS .•• ,
20ll,965 20ll.965 212.""8 209.96'
600 AI,.LC!WANCES .•••
ae ,883 68,583 77 ,Cl84 68,S83
SSO SEPAAATION PAY.

88,865 68.885 66,885 88,865
600 SOCIAL SECURITY TAX .. 336.738 336.736 336.736 336.738

. .. _.0 ..._... _.... __ ...•.... _.....
_~
700 TOTAl.., BlIDGET ACTIVIty 1.

7,HO.~2 7,710,542 7,72'1,576 7,710.542
750 ACTIVITY 2;
800 BASIC PAY . ..............
PAY AND ALLOW OF eNLISTED pus
9.574.M8 ILS74,D58 11.574,058 9,574,058
850 REtIMD 'PAY "CCRUAL ..

2,6941,57C 2,594.S70 2,594,570 2,594.570
900 OEF£NSE HEAlTH PROGAA" M:CR\JA.l.

'1.856,387 , ,8S1L387 1,856,387 1,868,:187
9SC] BASIC A.llOONCE FOR HOUSING ...

2.046.668 2,046,8&6 2.040.858 2.040,686
1000 INCeNTIV! PAYS. 71,&ilD 71,MO 71,540 7' ,SAO

1050 SPECIAL PAyS .... 497.276 474,776 800,1t9 460,118
1100 ALLOWANCES, 448.776 448.776 4f14.100 448,116
1150 SEPARATIOH PAY. 2n.029 271.029 271.029 271.029
1200 SPEC COI1P FOR COIfBAT.RELATEO OlSABlfD, 151.000 151.000 151,000 151,000
1250 SOCIAL SECURITY TAX 72S.9S1 7215,951 725,951 725,\151
.............. -.... _....... __ .......
1350 TOTAL. BUDGET ACTIVIT\' :2 18,237,253 18,214.753 16,265.420 18,220,753

65
(In 'thou.and, of oollan)
BLldQllt Houle Senate Conferenl;e
1400 ACTIVIT'!' 3- PAY AND AUOW OF CADETS

1450 ACAOE"Y CADETS .. 49,667 49.667 49.867 49.667
1500 ACTP.JlN 4: SUBSISTENCE OF EKl1ST(O PUtS

1550 BASIC ALLOWANCE FOR SUBSISTENCE. 863.758 853.7!l8 853.758 853.768
1800 SUBSISTENCE· tN· KINO .. 550,205 !ISO ,205 550,205 550.205
1$60 FA"IL'r SUBSISTENCE SUPPLEMENTAL AUOWAItCE ... 1,!§Q8 1,Sg8 '\ .598 1.5i8
••• ~ •••• 0 ••• _._ ._~_'.' __ ' . ' _0 • • • • • • • • • • • • _. _ • • • •
1760 TOlAL, BUOOU AcnVITV 4. 1,405,581 , ,4011.58t , .405.lI61 1,405.561
1800 ACTIVITY 5: PfRrtANENT CHANGE OF STATION

1860 ACCESSION TRAVEL. . 196,036 196,036 1&6,038 100.036
1900 TAAINING TRAVEL. ",557 S6,55? 5&,557 5&,551
Hl50 OPERATION,.,L TRAVEL 21S,e0i7 218.841 21«1.847 218 ,847
2000 ROTATIONAL TRAVEL 376.9tl8 376.968 376, &88 316,968
2050 SEPARATION TRAVEL., 181.205 187.205 187,4'05 ,er,20S
2100 lfl,A\lEL OF ORGAKllED tlNIiS ... 't ,948 1,948 1,946 1.946
2150 NO"~TE:HPORARV STOAAGE •. 20,535 26,535 2~U35 26,535
2200 UtPORARY lOI)GTNG EXPENSE ••. 18,99B 16.99B H1,9i6 18,996
.- ........... _- .... -........ -._ .................
• 300 TOTI\L. BUDGET ACTIV1TY 5 •. 1,OB3,09O 1,063,090 1,063.090 1.063,090
2]60 ACTIVITY 6: OTHER J'lIUTARY PERS COSTS

2'00 APPREHENSION OF HILITARY DESERTERS .•.•
all
... .,. '15 61S
2450 IN'TEREST UNIFORMED SERVICES SAVINGS.,. 20. '0' .0.
'0'
2500 DEATH GRATUITIES. 3.386 3,366 3.366 3,366
2550 UH£IiPlOYHENT 6ENEFITS ... 78, '9~ 78,195 78, HIS 78,195
2500 SURVT\lOR I'IENEF1TS .. 4.519 4,519 4.S'" 4.519
26~0 EDUCATION' 8fNEFJTS .. 4,288 4,201'1 4,288 4,288
2roo ADOPTION EXPENSES . 250 260 '50 .60

usa SPECIAL COPIPENSATIDN FOR SMMLY DISABLED RETIREES.,. 9,200 9,200 9,200 9,200
2800 TAANSPORTAUOH SUBSIDV .. 4,364 4,3&4 4.:1&.4 4,364
2850 OTHER (PARTIAL DISLOCATION A"'L~CEl 2.500 2.500 2,500 2,500
........................
2950 TOTAL. BUDGET ACTIVITY 6 •. 101,479 lor ,479 107,·419 107.4TG

66
(In thou•• nds of dollBrs)
Budget HQuae Sen"le Conference
3000 LESS REU'aURSABLES .

• 28S" 156 -28e1 Hl6 ~2&5.1s,e
3010 INCRtASED PAY TA,BLES AI1THORIZED."

9,296
3020 ON\lI/OSW CONOPS.,

-74.169 ·74.169
3200 UNOBLIGATED BALAHCES .•

·32,500 ·32,1500
3255 INCREASE IN OEATH GRATUITY.

3.400
3260 INCREASE IN FSAIlDP ..
Ul.OOO
3300 TOTAL, ACTIVE FORCES. AMY ... "

26. 26l!1. 436 26,233,436 26,282,784 26,2_1.667
1_00 ACTlVln l' RESERVE P£RSONHEL. AMY
3_50 UNIT AND INDIVIDUAL TMINING:
3500 PA,Y GROUP A, TAAlNlHO (15 DAYS .. DRILLS 241_6) .....

"\ ,142,059
3560 PAY GROUP 6 TRAINING (EIM;I(FILL ~OR ACT OUTY),

_',615
3600 PAY GROUP F TRAINING (ItECRUITS j .

188.5_'
15SO PAY GROUP P TRAINING (PlPE\.IHE PECRUITS)

1:.\,364t
3100 DEFEPiSE HEALTH PROGRAM A~UA.l •••..•

353.984
3BOO TOTA\.. UNIT ~O INDIVIDUAL TAAJNING.

1,7HI,563
36150 OTHER TRAINING AND SUPPORT'
3900 1106ILJlATION TRAINING ..

16,548
3960 SC"lQOL TRAINING ..
4000 SPECIAL TRAINING .•

157,819
4O~0 AOI'UHISTRATION AND SUPPORT •.

1,286,251
4100 EDUCATION BENEFITS ..•.

41,162
4'~D ROTC - SENIOR, JUNIOR ...
118.:160
4200 H£ALTH PROFfSSION SCHOl..ARSHIP ",
4250 DEFEHSE HEALTH PRDGR4JI Ac;CRUAL ..

65,067
4300 OTHER PROGRAI'.S 34.122
44.00 TOTAL. OTHER TRAINING AND SUPPORT 1.886,862
44,50 UNDISTR.IBUTED ADJUSTttENT •.••..• .2.500
41:\0 TOTA\., BUDGET ACTIVITY 1 .• 3.M13,62S

67
(In thouunds of dollars)
8u(jQet Hou5e Semite Conferel"lce
4800 ACTIViTY 8: NATIONAL GUARD PERSONNEL, ARIlY
4850 UNn AND INlHV10UAl TRAINING:

4900 PA.Y GROUF' A TRAoININIl (15 DAYS & DRILLS 24/48). 1.936,855
4950 PAY GROUP F TRAINING (RE.CRUITS) •.•.••• 237. ea_

5000 PAY GROUP P TRAINING (PIPELINE RECRUITS). :/6,327
5050 DEFE,.se tlEAL TH PROGIWt ACCRUAL. S05.970
S200 TOTAl. U",rT AND INDIVIDUAL TRAIINI"'G ..•• 2,807,038
5:/M OTHER TRAINING AltO SUPPORT:

5300 SCHOOL. TAAUIPlIG. 225,190
5350 SPECIAL TRAr"'IHG,. 198.365
5400 ADI'tINtSTAATIDN AND SUPPORT 2,081,781
3450 EDUCATION BENEFITS •.•.• ,. 109,836
5500 DEFENSE HEALTH PROGRAI't ACCR.UAL.. 112.309
!6lS0 TOTAL, OTHER YR.AIflING AND SUPPORT. 2,707.281
M50 TOTAL. BUOOET ACTIVITY 8 •••••. 5,514,319
6300 TOTAL, I'tILITARY PERSONNEL. ARIfY . 37,386.380 28.233.436 2S.282,764 28.2.7.667

68
ADJuSTMENTS TO BUDGET ACTIVITIES
Adjustments to the budget activities are as follows:
[In tho1lB8l1ds of dollars]
Budget Activity 2: Pay and Allowances of Enlisted Personnel:
1050 Special Pays/Selective Reenlistment Bonuses . -16,500
Other Adjustments:
3020 ONW/OSW/ODS CONOPS . -74,169
3200 Unobligated Balances . -32,500
3255 Increase in Death Gratuity .. 3,400
3260 Increase in FSAIIDP .. 79,000
69
MILITARY PERSONNEL, NAVY
(In thoueanda of do\hf"ll)

Budget HoulJe senate Confer-enc..
6350 I'll L. tTARY P£RSOHNEL., 'tAVY
8400 ACTIVITY ,: PAY AND ALL..OWANCES OF OFFICER

6450 BASIC PAY. 3,029,230 3,029,230 3,029,230 3,029,230
8500 RETIRED PAY ACCRUAL ... 820,921 820,921 820,911 820 .921
8550 OEFfNSE HEALTH PROGRAPl ACCRUAL, 247,a9S 247,aSI 247,891 247,898
8BOO BASIC AL.LOWANCE FOR HOUSING, •. 830,513 830.513 830.513 830,513
e650 BASIC ALLOWAtlCE FOR SUBStSTENCE •• , 111,221 1f1,221 111,221 111,221
6700 INCENTIVE PAYS .. 181,8&6 181.695 181,6n 181,ti96
8750 SP!CIAL PJ.YS 245,270 245,210 247.888 245,270
6800 ALLCIoIANC£S. !l8.182 !l8.182 83,62; 56,182
6860 SEPARATION PAY 37,085 37,085 37,085 37,085
6900 SOCIAL SECURITY TAlC, 230,118 230,718 230,718 230,716
....................................
7000 TOTAL, BUDGET ACTIVITY ', ••.•.. 5,192,132 5,792,132 6,600,591 5,192,132
70eo ACTIVITY 2 PAY AND ALLOW OF fNLISTI::D PERS

1100 BASIl; PAY .. 1.833.t599 1.833,899 1,833,599 1,833.599
1150 RETIRE.D PAY ACCRUAL. 2.1'22,905 2,1'22,905 2,122,905 2,122.905
7200 DEFENSE HEALTl-l PROGPNt ACCRUAL. ',48l5,143 , .4ti5, 143 1."65,143 1 ...tiS,143
1250 BASIC ALLCMANCE FOR HOlJSING •. , 2,355,412 2,355,412 2.355,412 2,35t5,412
1300 IHC£KnVE PAYS . 101.660 101.880 '\0'\ .680 '\Ol.66()
7350 SPECIAL PAYS 885,452 a65,152 688,002 885,152
1400 ALLOWANCES ••. 400.383 261 ,J8J 439,520 400.38~
1450 SEPARATION PAY .. 180.251 148.'2S1 180,25' 15",251
1500 SPE.C COPlP FOR COtTBAT·RfLATEO DISABLED,. 64,000 84,000 64.000 64,000
1~50 SQCt"L SECURITY T.u .. 594.271 SQ",211 594.271 594.'271
~ ........................... .. ~ '.'.'
1860 TOTAL, BUDGET ACTIVITY 2, 16,()D3.096 16,811,196 16,044,783 15.&86,798

70
(In thou88nds of dollars)
Budget Moule Senate COl'lterenee
7700 ACTIVITY 3: PAY AffD ALLOW OF I1IDSHIP11EN

775D ttI09ilPl1EH., •••
7800 ACTIVITY 4: SU8SISTENCE OF ENLISnO PERS

7850 BASIC ALLGtAHCE FOR SU8SISTENCE ..
7900 SU8SISTEHCE.(N-ICIND .• , •..
7950 FMILY SUBSISTENCE SUPPLEI1ENTAL ALlOWAHCE •••••
80150 TOTAL. BUDGET ACTIVITY 4••. ,.
8100 ACTIVITY 5. PEIU\AHENT CHANGE OF STATION

6HiO ACC£!l$ION TRAVEL •• , ••
8200 TRAINING TRAVEL ..
8260 OPERATIONAL TRAVEL .
8300 ROTATIONAL TRAVEL •
8350 SEPARATI~ TRAVEL •..
8400 TRAVE\. OF ORGANIZEO UNITS.
8450 NON- TEPIPORARY STORAGE. •.•.
8500 TEPIPORARY LOCGING EXPE.NSE.
85150 OTHER ••••••••.•••
86150 TOTAL. 9UDGliT ACTIVITY 5.
8700 ACTIVITY 6: OTHER ,ULITAR't' PERSONNEL COSTS

8750 APPREHENSION OF 1'l.1LlTARY DESERTERS.
8800 INTERESi 014 UNIFORflED SERVICES SAVINGS •..

88:50 DEATH GRATUITIES •.
8900 UNE."PLOYtlENT SENEFITS .••••
8950 SURVIVOR 9ENEFIT5, ••••• , •• , ••
9000 EDUCATION BENEFITS ..
9050 ADOPTION EXPl:NSES.
9100 SPECIAL COtlPENSATIOH FOR SEVERELY DISABLED ReTIREES •••
91:50 TRANSPORTATlOH SUBSIDY.
9200 OTHER.
9300 TOTAL. BUDGET ACTIVITY 6
9350 LESS REIIltURSABLES ...
9400 IJNDISTRIB'JUD ADJUSTMENT •••••.••.

9410 tNCREASEO PAV TABLES AUTHQRIZEP ..
0420 ONWJDSW COHOPS., ••••.•••..•.•
9450 LEGISLATIVE PRoPOSALS NOT ADOPTED .••.
9550 UNOBLIGATEO BALANCES ..

71
(In ttlQlJ$Bnd~ of eo'\arSl
8uavet House Senate Conter'l'\Gll
9610 INCREASE IN DEATH GRATUITY. , .soo

9620 INCRfAS£ IN F$A/IDP ... 20,000
9650 TOTAL, ACTIVE FORCES, NAVY .•. 23.254,301 23.052.001 23,309.191 23,211,296
9150 ACllVIT'l' T: RESERVE PERSONNEl., NAVY
9800 L'NIT AND INDIVIDUAL TRA,lNlltG;

9850 PAY GROllP A TRAINING {15 DAYS" DFU\.l.S i4/48) ••. 722:,921
9900 PA.Y GROOP B TRAINING (9AClCFILL FOR M:r DUTY). ".0152
9950 PAY GROUP F TRAINING (RECRUITSI •• 2,:1.13
10000 DEFENSE HEALTH PROGRAI1 ACCRUAL. 133.994
'0150 TOTAL, UNI1' AND nIOIVlDUA.L TRAIHtff; .•. 663.240
10200 OTHER TRAINING AND SUPPORT:

10260 MOBILIZATION TRAINING .... 6.!199
10300 SCI«!OL TIlAIHIHG .. 23.013
10350 SPECIAL TRAINIMG, •••• 59.787

10400 AOf'l'INISTAATION AfrID SUPPORT 931.333
10450 EDUCATION BENEFITS .••. .'5
10.500 ROtC· SENIOR, JUNIOR 3&,120
10550 KEALTW PAOFESSt£»l SCKOt..ARSNIP ... 31,895
10600 OEFfl'lSf HEALTH PROW" ACCRUAL .. ee .•81
t0750 TOTAL, OTHER TRAINING AND SlJPPORT ". 1,1$4,913
11150 TOTAL. aUDGET ACTIVITV 7., •.. 2,028,153
11350 TOTAL, 1'I1LITAAY PERSONNEL, fj,AV'f ••. ...... 25,282,.$4 23,052,001 23.30&,791 23.217 ,298
72
ADJUSTMENTS TO BUDGET ACTMTIES
[In tholUl8Ilds of dollars!
7350 Special Pays/Selective Reenlistment Bonuses .. -20,300
7450 Separation Pay .. -26,000
Other Adjustments:
9420 ONW/OSW/ODS CONOPS .. -1,203
9550 Unobligated Balances .. -11,000
9610 Increase in Death Gratuity .. 1,500
9620 Increase in FSAIIDP .. 20,000
73
MILITARY PERSONNEL, MARINE CORPS
(In thousands Of donerlii

Budget House Senate Conference
11400 PlIUTARY PERSONNEL. "MINE CORPS
114&0 ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER

1HiOO BASIC PAY. ;96,460 99&.480 !J96.460 996.480
t1S50 RETIRED f:!AY ACOIUAL . 270,031 270.031 210,031 270.031
"600 DEFENSE HEALTH PROGRAM ACCRUAI., ••. 63,253 83,253 83,253 83,253
11850 BASIC ALLOWANCE FOR HOOSINC .. 235,530 235,530 235,530 236.530
\1700 a~IC ALLOW~CE. FOR SUBSISTENCE 38.608 38,806 38,608 38.80B
11750 INCfJfTIVP.: PAYS .. 41,559 41,fi59 41,550 47,6&9
11800 SPECIAL PAYS .. 2,5908 2,598 2,997 2.598
"850 ALL~HCES•. 21,181 21,181 23, 053 21,161
"900 SEPARATION PAy •.••. .............. to,393 10.393 10,393 10,393
11950 SOCIAL SICIJRIT1 TAX .. 7!1,'rM 7~, 766 75,766 r~,766
.............................. _.....
12060 TOTAL, BUDGeT ACnVITY , \ ,781,401 1,781,401 1, TB3.872 1,781.401
'2100 ACTIvITY 2: PAY AND ALI.DW OF ENLISTED pERS

121:50 BASIC PAY . 3.434 ,8048 3,4S4.846 3,434.846 3,434.846
12200 RETIRED PAY ACCRUAL", .• , 92Q,781 92Q,781 929,761 !il2Q,781
12250 DEfENSE 'HEALTH PROGAAI"\ ACCRUAL. , ••. 715,6C7 715,607 715,807 715,607
12300 BASIC ALLOWANCE FOR HOUSING. 733.0:24 n3,Q24 7S3.024 T33,Q24
12350 INcENTIve PAVS .•• , 8,3~D 8,360 8.3EiO 8.360
12400 SPECIAL PAVS ... 112.620 111.020 114,323 111 ,020
, 2450 ALLOWANCES •••.. 162,247 162.247 178,202 162.247
12500 SEPARATIDH PAy, •••. 57,683 57,683 57,683 57,683
12S50 SPECIAL COlIP FOR COllllAT.RELATEll DISAl!L£O .......... 13,000 18,000 18.000 18.000
12800 SOCIAL SECUR.ITY TAX .. 282.463 2e2,4a3 a62,4e3 2CI2,4Cl;)
--_.--_ .................
12700 TOTAL. BUDGI!"T ACTIVITY 2 6,434,83t 6,433,031 6,452,269 6,433,031

74
(In tlW)uuncs cd dol1tlr&) •

Budget "au.. Senllte Cen'fo-renc.e
127,0 ACTIV1TY 4: SlJB5JSTEN~E Of EM~lSTtD PERSONNEL

"800 BASIC AlL0W4NCE FOR SUBSISTENCE. 26.),450 268,450 268,'Usa 288,"50
12650 SU8SISn:MCE·IN~KIND.. 1&5,762 '15.762 185.762 185.1'62
12900 FA"IlY SUBSISTENCE SUPPlE"ENTAL ALlOWAfrlCE. 750 760 750 750

........ -_., '-""'----'
1300Q TOTAL. BUDGET ACTIVITY ...... , •••. 454.962 4504,962 4$<4,982 "54.962
'3050 ACTIVITY 5: PERl'tA.NENT CHANG! OF SlATIOtti
13100 ACCE55IOW TRAVEL .. 42.S:55 ·42.556 42,6515 42,555
13150 TRAINING TRAVEL.,. ...... 8,351 8,351 8.351 8,351
13200 OPERAnOHAl TRAVEL. . 72.628 72.828 72.628 72.82e
13250 ROTATION~l TRAVEL 103. 070 103.070 103.070 103,070
13300 SEPARATION TRAVEL .. 41,7119 41.709 .',79!i1 '" ,799
13350 TRAvEL OF ORGANIZED UNITS, •••..••. 2.513 2,513 2,513 2.513
13400 NON·TE"POAAR,Y STORAGE, •. .. ".901 4.901 ",901 4,901
13450 TE~ORARY L.COGIHG EXPENSE.". , , , . '0,187 10,167 10.1&7 '0,1&7
13800 OntER •. 2,286 2.268 2,26B 2.268
............ ............. ............

13800 TOTAL, BUDGET ACTIVITY 5 .•.•.••. . . , .. .. , , . .... ... 288,250 288.260 288,25(1 288,25(1
13650 ACTIVITY 6' OTHER 'ULllAIn' PfRSOHNEL COSTS

137QO APPREHENSION OF 'UL.ITARY DESERTERS. ..... 1,577 1,577 , .577 , .577
13750 INTEREST QfII UNIFORPlED SERVlCES SAVINGS .. 19 '6 16 '9

13800 DEATW GRATUITIES •. , .. , •• ,. 984 064 984 064
13850 UNE"PL.OYI'I£NT BENEFITS, •.•••. 35,O&tl 35,054 35.054 35,05"
13900 SURVIVOR 8ENEFITs .••. , .539 1,539 1,539 1,539
13950 EDUCATION BENEFITS .••. 2,78~ 2.785 2.76$ 2,765
14000 I\OOPTIQtII EXPENSES., ••• 6' 6' 61 0'

'4050 SPECIAL COItPUS4TIDH FOR SEVEReLV DISA.8LED RnIREES .. 000 900 900 000
14tOO TRAJrrlSPO'fT"TION SUBSIDy ..•• 902 952 '52 902
14150 OTHER. •••. , •..•.•..•. , •.••• .,5

." 815 .'5
........................ ..... ......
14250 TOTAL, BUDGET 1oCT'IVI'T"f 6 .•. ",503 44.503 44.503 44,503

75
(In thous,nll' of dOllars)
Budget HOUle senate Con1erflnce
14300 LESS REIMBURSABLES.

-31,950 -31.950 ·31,950 ·31.950
14310 INCREASEO PAY TABl.ES AUl'HORIZEO •.

3,000
14320 ONW/OSW COHOPS.

·300 ·300
'4.560 UHOBLIGATED BALANCES.

·8,000 -B.OOO
14S70 INCREASE IN OEA'l'H GRATUIT'(.

',000
14575 INCREASE IN FSA! lOP ..
9.000
'4600 TOTAl., ACTIVE FORCES. MRINE CORPS

8.971.997 8,982,197 15,994,4'6 8.971.897
14700 ,ACTIVIT'( 7: RESERVE PERSONNEL, MAINE CORPS
14760 UNIT AND INOIVIOOAL TRAINING:
14800 PAY GROUP A TRAINING (15 DAYS & DRILLS 2,(146} .•.
180,764
,4850 PAY GROUP B TRAJNlPi1G (B"CKFILL FOR K-T DUTY).

17 .333
14900 PA"t GROUP F TRAINING (RECRUITS) .••••

75.213
14950 PAY GROUP P TRAINING (PIPELINE RECRUITS)

183
'5000 DEFENSE HEALTH PROGRNt ACCRUAL ..

69,2&2
15160 TOTAL, \lNIT AND tNDtV)O\lAl TAAtNtKG ..

342.775
15200 OTHER TRAININO AHO SUPPORT.
1~250 tIOBtl.tZAnON TRAINING •••.•

2.319
15300 SCHOOL TRAINING ..

10.980
15350 SPECIAL Tl\AINING •.

33.730
11\400 AOI'IIHISTRATION ANO SUPPORT.. ,

151,919
15,(SO ED\lCATION BENEFITS.

17 .820
15500 ROTC ~ SENIOR. JOInOR.

5,007
15560 DEFENSE HEALTH PROGRAt1 N::CRUAL ••• 10.476
15800 ornER PROORAHS • 12.409
~5700 TOTAL. OTHER TRAINING AHO SUPPORT. 24.,889
16000 TOTAL. BUDGET ACTIVIT'( 7 ... 581 ,444

•• "'.~
~=='~"'I! 11:;0_""'•••,,,•••,." "'.;0 ••""" "'1: • • :
162150 TOTAL, IULITARY PERSONNEL. MR.I/'iIE CORPS .• 9,659,4.' B.962.197 B.~,426 8,971.697
76
AD.ruSTMENTS TO BUDGET ACTIVITIES
12400 Special Pays/Selective Reenlistment Bonuses .. -1,800
Other Adjustments:
14320 ONWIOSWIODS CONOPS .. -300
14570 Increase in Death Gratuity . 1,000
14575 Increase in FSAIIDP . 9,000
77
MILITARY PERSONNEL, AIR FORCE
(In thousands of doll Irs)

Budget House 5en8te Conference
16300 I1IltTARY PER.SCJf'tNEL, Alit FORCe
16350 ACTlVITY 1: PAY AND ALLOWANCES OF OFFICER

16400 BAstc PAy ..•. 4.01~.299 4,015.299 4.01~ 299 4.01~,Z99
1El450 RETIREe PAY ACCRUAL. , •.. , ,CeEl,14S 1,088.146 1,086.146 1,Oa6,14t1
1e5aa DEFfNSE tlEALTH PROGRAtl ACCRUAL. , •• 324.881 324, aa~ 324. eel 324,1561
H!~~D BASIC ALLo..IANCE FOR HOUSING. 889.301 869.301 889,301 889,301
16800 BAstC All()otlMCE FOR SUBSISTENCE., 144,15158 144,668 144.6156 144,856
16650 INCENTIVE PAYS. 309.1:172 309,612 30g,en 309,612
18700 SPECIAL PAYS .. 21T.363 217,383 219,191 217 .3t13
16750 ALLOWANCES, ." e2.369 62,369 67. Dab 62,369
16BOO SEPAAATIO,. PAl( .•. 103,486 103.486 103.466 103,486
lSSS0 SQClAl SECURtiY TAX .. 306,013 306.013 30&.013 308.073
.......... - .- ...... ...
~ ~
169!50 TOTAL, BUDGET ACTIVITY 1. 7.461,246 T,461 ,246 7487,790 1,461 .246
17000 ACTtvtTY 2: fJA¥ ANO ALLOW OF EMLISTEb PEAS

17050 BASlC PAY ... 1,3.48.882 1,348,882 7,348.882 7.348.882
"100 RETIRED P"'l' "CCRUAL. , ,991 ,!547 ,.~1.647 1.991,547 1,991,547
17150 DEFENSE HEALTtI PR03RA" ACCRUAL 1.311.956 1.117 .9S8 1.317.958 .... 311.958
17200 BASIC AU..OillAJ«::E FOR HOUSING. 1 ,89A.484 1,898,484 1,698,484 1,698,484
17250 INCENTIVE PAyS ..... 33,086 33,086 33,088 33,086
17300 SPECIAL PA'1S, .... , 382,219 382.278 402,276 382.219
17350 AU.OWANCe.S .. 370.087 310.061 403,288 310,081
17400 SPECIAL COIlP FOR COI1BAT .RELATED DISABLED, .. 122,000 122,000 122,000 122.000
114!5D SEPARATION PAY, ... 99,543 99,543 99.543 99,543
17600 SOCIAL S~CUR.ITY TAX . 582,190 562,190 562.190 582,190

........................ .. -. _... .... _........ _.
17600 TOTAL, 8UDGET ACTIVITY 2, 14 .128,056 14,126,055 14.179.234 14.126.056

78
(In thouSlrlO$ 01 do' lars)
8udget Hou,. Senatt Coniortnce
" ...... ......... ... ............................ _..
~ ~,
17~0 ACTIVITY 3 PAY AND ALI..OWAIICES OF C4DETS
17700 ACAOEftY ODETS .... 50,3112 50,362 50.362 50,362
17750 ACTIVITY 4~ SUBSISTENCE OF ENLISTED PE~
17800 BASIC ALLDWAHl:E FOR SU8SIST£N(;E •• 713,180 713,1S0 713,180 713,180
i1S50 SUeSlSUHCE~I""KI"D.. U9,Q61 149,001 HfJ,061 149.061
17900 FAPllLY SIJ8StSTEt.lCE SUPPLEMENTAL ALLOWANCE.,. , ,216 1,215 1,213 1,215

.. , .. ..
~ ~ ~ .. • w __ • _
_. .- ...
.
~
.
~
~
~
~'" ~
16000 TQTAl, 6UOGET ACTIVITY 4 .• , 863,456 8ti3,456 563,0" 863,456
18050 ACTIVITY :s; PERtlANEHT CtlMOE OF STATION

18100 ACCESSION TRAVEL., 82,538 82,538 82,538 82,S38
161$0 TRAINING TRAVEL ••• a3.~24 83.!24 63,524 83.S24
18200 OPERATIONAL TRAVEL 183,8H 163.847 193,1417 183,847
18250 ROTATIONAL TRAVEL., 463. H8 483,149 483,149 483.148
18300 SEPARATION TRAVEL .••. 115.4(17 115.407 11S.407 1Hi,407
18350 TRAVEL O~ ORllANIZeO UNITS .• 9,192 9,192 9.192 9.192
18400 NON·TEMPl:IWrt' STORAGE.,. 26.076 25.078 25,076 25,076
HI450 TEHPORAR"!' LODGING eXPENse., 35.184 35.184 35,184 35,184
. --'
~ ~ ~. ~ ... ._.. ~ ..... ~.
~ -. .... ... ......... -..
~ ~
1MSO TOTAL. BUDGFT ACTIVITY 5 .. 977 ,917 977,917 977,9t7 977 .917
18800 ACTIVITY 6. OTHER f'lILtTMY PEltS COSTS

1SS50 APPREHENS!ON OF f'lU!TARY DESOOERS .. 100 100 '00 100
18700 INTlREST ON UNIFORtlED SERVICES SAvtt.lGS. "5 5" ••• •••

1S7tiO DEATH GRATUITIES,. t ,41J4 1,494 1,494 1,494
~8800 UNEf'lPLOVl1ENT BENEFITS, . , 31.089 31,069 31,089 31,069
18850 SURVIVOR 8ENEFtTS ... 3,179 3.118 3, ~7a 3.178
18$00 EDUCATION 8ENEFITS. 4,140 4,140 4,140 4,140
18950 ADOPTION EXPENSES .•• 800 80' 800 800
HOOD SPECIAL COftPENllATlON FOR SEVEREL'f DtSA6LEO RETIREES .. 9,400 9,400 9,400 Q.400
19050 TIl,ANSPORTATlON SUBSIDY. , 11,030 11,030 11.030 11.030
19100 OTHER .. 2.812 '2.612 2.8'2 2,612
~~- .... ~--~~

_......... -. . '-. ~ ....... .. ~ ...... ..
1Q200 TOTAL, BUDGET ACTIVITY 6". 84.419 64,418 64.416 64.418

79
(In tholJlands of dollars)
Bodg.t Houle Se"lte Conference
19250 LESS REnt9l.CRSABLES. -382.451
19253 INCREASED PAY TABLES AUTHORIZEO ... 7.782
192~~ OWfOSW CONOPS. -235."36 ·235,06
19620 UNOBLIGATED BALANCES .• -40.000 -40,000
19625 B·~2 ATTRITION RESERV£, •••••••• 3,800
19630 ItK:RU,SE IN DEATK GIlA.TIJIT'f' . 1.500

19635 INCREASE IN FSA/IDP .•. , •..••. 20.000
19650 TOTAL. ACTIYE FORCES. AIR FORCE 23.181.004 23,121.003 22,993.012 22,910,666
19700 ACTIVITY 7: RESERVE PERSONNEL. AIR FORCE

19750 UNIT AND INDIVIDUAL TRAINING
19800 PAY GROUP A TAAINIMG (15 QAYS & DRILLS 24/48). $38,831
19850 PAY CiRDUP B TRAINING (BACKFIll FOR ~T OUTY). 1011.553
19900 PAY GRCUP F TRAINING (RECRUITS). 23.513
19950 DEFENSE HEALTH PROGfWt ACCRUAL . 100

20000 OTHER .. 136,641
20100 TOTAL, UIHT AND INOIVIDUAL TRAINING 807,B38
20150 OT~ER TRAINING AHQ SUPPORT:

20200 MOSIl1lATION TRAINING,. 1,800
20250 SCHOOL TRAINING, . 77 ,859
20300 SPECIAL TRAINING ••. 157,825
20350 MmINISTRATION AAD SUPPORT .. "3,183
20400 EDUCATJON BENEFITS. to,530
20450 ROTC - SENIOR, JUNr~ .•. 77,104
20500 HEALTH PROF;:SSIOH SCHOlA!t3HIP •. 28,359
20550 DEFENSE HEALTH PROGAAI'I ACCRUAL .. 7.210
20700 TOTAL, OT~ER TRAIHING AND SUPPORT. 524,050
21050 TOTAL, BUDGET ACTlVITY 7 .. t ,331 ,88B

80
(tn thOU••nd. of 001\8,..)
B.udg.t Ho~'e s.Nb Conflrlllce
21100 ACTIVlTY 8: NATIONAl. OOARD PERSONNfI.¥ AIR FORCE
21t50 UMIT AMD INDIVIDUAL- TRAIIUIrlG

21200 PAY GROUP A TAAIHIHG (16 CA"l'S & onus :241048) ••.•.••• 188.738
21250 PAY GROUP F TAAIMING (RECRUITS) . 84,m
21300 PAY GR:HJP P TRAINING (PIPELINE RECRUITS) ••• , ••••••••• 1.208
21350 O'tF£KSt H£ALlH PMOGRM ACCRUAL. ••••..•••.•••..••••..••• 17e.118
21500 TOTAL, UNIT AND INDIVIDUAL l1itAllrllltG... •.•••.••.••.•. 1,032,881
21&50 OTHER lAAINING AND SUPPCftT:

21E100 SCHOOL TAAINI~ •••.•.••..•••..•••• ' .••••.••••••••••.•• 142,188
215150 SPECIAL TAAIHING ••••.••••.••••••••••••••••.••..••••••• 78.:243
21'700 ~INISTRAr.nQW AND SllP'PORT•••••••.•••••••••••••••••.•• 878,399
21T60 EOUCATION 8EttEFtTS ••.•••••••••• , •••••••••••••••••••••. 40,443
21800 DEFEISE tlEALllI PROORNI ACCRUAL ••••. , ••••• 52,956
2~060 TOTAL. O'TftElt TRAr.INIMG NW SUPPORT •••••. 1.180,231
22260
225$0
TOTAL, BUDGET ACTMTY 8 "....
TOTAL, "IUTARY PERSOHHEl. AIR FORCE................

26.115,090
.--- --_..- --------_..
2.,223,098
23.121.003 22.993.012 2:2,910,86&

81
Other Adjustments:
19255 ONW/OSW/ODS CONOPS . -235,436
19625 B-52 attrition reserve . 3,800
19630 Increase in Death Gratuity . 1,500
19635 Increase in FSAIIDP . 20,000
NATIONAL GUARD AND RESERVE FORCES

The conferees agree to provide $15,105,951,000 in Reserve per
sonnel appropriations, $14,296,667,000 in Reserve operation and
maintenance appropriations, and $400,000,000 in the National
Guard and Reserve Equipment appropriation. These funds support
a Selected Reserve end strength of 863,300 as shown below.
SElECTED RESERVE END STRENGTH
[Fiscal year 2004J
Budget Conlernnce liS.

Conference budget
Selected Reserve,
Army Reserve ]" . 205.000 205.000
Navy Reserve .. 85.900 85.900
Marine Corps Reserve .. 39.600 39.600
Air Force Reserve . 75,800 75,800
Army National Guard .. 350,000 350,000
Air National Guard .. 107,000 107,000
Total . 863,300 863,300
AGRfTARS:
Army Reserve . 14,374 14,374
Navy Reserve .. 14,384 14,384
Marine Corps Reserve . 2.261 2.261
Air Force Reserve . 1,660 1,660
Army National Guard . .. 25,386 25,595 +211
Air National Guard .. 12,140 12,193 +53
Total .. 70,205 70,469 +264
Technicans:
Army Reserve .. .. 7,594 7,594
Air Force Reserve .. 10,081 10,081
Army National Guard .. 26,189 26,189
Air National Guard .. 23,156 23,156
Total . 67,020 67,020
82
RESERVE PERSONNEL, ARMY
(In thousand, at doll.r.)

Budll'lt HOUle senale COnterence
22100 RESEIM PERSOItHEL. NltfY
22880 ACTIVITY 1: UNIT AND INDIVIOu.-.L T'RAUIHO

22100 PAY OfIOUp A lRA,Umo (15 DAYS I DRILLS 241481 ••
221M PAY GROUP e TRAINING (BACKFILL FOR Iocr OUTY) .. ..1,81S ,,1,8l5 41,elfl
22eOO PAY GROUP F 11lAINING (AECAUITS) '88,54' 1Y.541 188,541

22850 PAY GROUP P TrtAINING (PIPl!L[If! RECRUITS).
22900 DEfENSE HEALTH PROGRAlt ACCRUAL, , •
-~'.- .. ' .... .... __ .~- .. - .... --- ... -.. .... -.......
23000 TOTAL, BUDGET A.CTl'ltTY 1 ..••. , 1.719.5&3 1,719,663 1,1U',"3

23150 NOfULIZATION TRAINING. '8,s.e8 18.548 18,548
23200 SCHOOL T~~UNING .••••. ", .:a8~ "1,285 '" ,295
23250 SPECIAl.. TRAINiNG .••• , ..••. 157.819 t5T ,879 '57.0lD
23300 AOf'lINISTRATlOti AND SUPPORT .•••• ',288,281 1.2S6,2S' , .288,251
23350 EDlJCATIotI BENEFITS .•.. 4'.152 47,182 47.112

23400 ROTC • SElilOtt, JUNIOR 118.880 11~.PO 118,580
2:.\450 HfALTK PROFESSIDtI SCHOlARSHIP. 29,&48 29.&.8 29,048
23600 DEFENSE HEAlTt! PflOGAAIt ACCRUAL •. 65.087 85.081 85,017
235~0 OiHER P"OGRAI'!!l ~.1:a2 34,122 34, '22
23850 TOTAL. BUDGET ACTIVITY a..

23700 UNDISTRIBUTED ADJUSTIIE"f •.
23705 LEGISLATIVE PAOPOSA\.S NOT ADOPTfD
23710 INCREASED PAY TABLE5 AUTHORIZeD,
23900 UNOBLIGATED flAJ,..MCU ..
238!O RESERVES COST AYOIb.&NCE, .
23855 I"CREASE IN IJIATH CUlATUITY.,.
24000 TOTAL RESERVe I'EUONH!L, NUIY. 3,665,82& 3,6&4,735 3.568,725

83
ADJUSTMENTS TO BUDGET ACTIVITIES
Other Adjustments:
23950 Reserves Cost Avoidance .. -10,000
23955 Increase in Death Gratuity . 100
84
RESERVEPERSONNEL,NAVY
The conference agreement on items addressed by either the House or [he
On l.!lguUfltlS of dol'\Brsl
BLtdge1, House Senate Conference
24050 RESERVE PERSONNEL, HAW
24100 ACTIVITY l' UNIT AND INDIVIDUAL TRAINING

2-4150 PAY CROUP A fRAJNING (1S DAYS & DRILlS 24'''15). 722,921 722,921 722,921
24200 PAY GROUP B TRAHHNG (BACKFILL FOR ACT DUTY) 4.052 4,052 4,052
24250 PAY GROUP F TRAINING (RE:CRlUTS) 2,273 2.273 2,2n
24.100 DEFENSE HEALTH PROGAAI1 ACCRUAL, . '33,994 133.994 133.994
-.... -.. .. ............ ...... -.....

~~
......... __ .
24.45(l TOrAL, BUDGET ACTIVITY 1 ... il63.2<40 863,240 863,240
24500 "CnVlTV 2' O'TllER 1AAIMIHG AHO WPPOU

2455(l "OBIL1ZATlOH TRAIHIHG., ...........• ". 6,599 6,599 6,699
24800 SOtOOL TAAINING .. 23,013 23,013 23,013
24650 SPECIAL TRAINING .. ~9.197 !9,791 159,197
24700 ADIUNISTRATlON MO SUPPORT, ..
24750 EDUCATION BENEFITS. •
24800 ROTC· SENIOR., JUNIOR.

..,
937,333
31l,120
937,333
•••
39,120
...
937,333
39,120
24850 HE"LTH PR.O~ESSID~ SCHOLARSH1P .. J1,6ge 31,696 3"695

211900 DEFENSE HEALTH P'lOORAt\ ACCR,UAL . 66,491 66,491 66,49'
25050 TOr"L, BUOGET AC'TIVIT't 2
25055 INCREASED gAY TABLES AUTHORIZED ..

1,'64.9'3
.,.
1,164.9'3 1.'64,913
25080 ONW/OSW CONOPS ..••.•. ' -'26 -B26
2$300 UItOBLIGATEO BALANCES •• , -5,000 ·5.000
25370 RESERVES COST AVOIDANCE. .40.000 ·20,000
26380 INCREASE IN DEATH. GRATUITY ••.. '00
2$450 TOTAL RESERVE PERSOH~L. HAW .• 1,963.1eJ 2,027,9A5 2.002,727

85
ADJuSTMENTS TO BUDGET ACTMTIES
[In thousands of doUars]
Other Adjustments:
25060 ONW/OSW/ODS CONOPS . -826
25370 Reserves Cost Avoidance . -20,000
25380 Increase in Death Gratuity . 400
86
RESERVE PERSONNEL, MARINE CORPS
(In thouundll of do11 ... ,)

BudQet Hou.. Senete Conference
25500 RESERvE PERSOMNEL, ftARtNE. CORPS
25550 ACTIVITY'; UNIT AND INDIVIDUAL TRAINUIG
25500 PAY GRM A TRAINING f'S DAyS &. DRILLS 24148).

180.784 180.764 180,784
25850 PAY GROUP B TRAINING (BACI(FU..L FOR ACT DUTY} .••

17 .333 17 ,333 '\7.333
U700 PAY GROUP F TRAINING (RECRUITS).

75,213 76,213 75.213
25750 PAY GROUP P TRAINING (PIPELINE RECRUITS).

183 183 183
25800 DeFENSE HEALTH PROGRAt1 ACCRUAL •••• , ••••• 69,262 69,282
25950 TOTAL, BUDGET ACTIVITY 1 •• 342.775 342,775 342,775
26000 ACTIVITY 2: OTHER TRAINING AND SUPPORT

260SD "DeILlZATION TRAINING 2,319 2,319 2.310
26100 SCHOOL TAAINUIG 10,9gO 10,990
25150 SPECIAL TRAINING. 33,730 33.730 33.730
26200 AO"INIST!tATIOH AND SUPPORT .. 15',91{11 151,g'9 151,919
26250 EDlJCAnoN BENEFITS •. 1'7,B20 17,820 17 ,820
26300 ROrC - SENIOR. JUNIOR . 5.007 5.007 5.007
2&3:50 DEFENSE HEALTlt PROO"" ACCRUAL ...•.. 10,475 10,475 10,475
26400 OTHER. PR.OGAMS . 12,409 12,409 12,409
25500 TOTAL, BUDGEt ACtIVITY 2. 244,889 24ot,eeg 2ot4,6e9
25520 INCREASED PAY TABUS AUTHORIZED. 175
215600 ltNOSLIGATEO BALANCES •.•. -2,000
28650 RESERVES COST AVOIOANCE . -14,000 -14,000
26750 TOTAL, RESERVE PER.SOf'tN£l. MAR.INE CORPS. 571,444 571.444

87
[In thousand. of dollars]
Other Adjustments:
26650 Reserves Cost Avoidance . -14,000
~~~----~-----~------
88
RESERVE PERSONNEL, AIR FORCE
(In thousands of dollars)

Budget Houle senate ConfDrenc~
28&00 RESERVE PERSCHKEI., AIR FORCf
28850 ACTIVIT"\' 1: UNIT AHO rJrl)lVlDUAL TRAINING

26900 PAY GROUP A TRAIN.ING (13 DAYS & DRILLS 24/48) 538,831 53lL831 538.831
26950 PAY GROUP B T~INING (BACKFILL FOR. ACT OUTY) 108,553 108,553 108, fl53
27000 'PAY GROUP F TRAINIHG (RECRUITS) .. 23,513 23,513 23,513
270M DEFENSE HEALTH PROGRM ACCRUAL.. tOO 100 '00
27100 OTHER •. 136.841 136.841 136,84t
........................ ... -.... __ ..
27200 TOTAL., 9uPGET ACTIVITY 1. 807.8311 807.838 807,838
27250 ACTIVITY 2: OTHER TRAINING AND SUPPORT

27300 M08ILIZATION TRAINING", .• ,. , ,800 1 ,BOO , ,800
27350 SCHOOL TR,S,INING .. , 77 •959 77,959 77 .9&9
21400 SPECIAL TMINING .. 157.925 '57.925 151.925
27450 AOMINISTRATION AND SUPPQtl:T. 183,163 163,163 163.163
275CJ0 EOUCATION BENEFITS •• 10.530 10.530 10.530
27550 ROTC· SENIOR, JUHIOR. 77 ,104 77 .104 77 ,1001\
27600 HEALnl PROFESSION SCHOl.ARSHI9 28.359 28.359 28,359
27650 OEFENSE HU,LTH PROGRM ACCRUAL. 7.210 7,210 7,Z10
............ ............
27600 TOTAL, BuDGET ACTIVITY 2 ••. , ,.", 524,050 524,050 524.,050
27610 INCREASEO PAY TABLES AlJTHORlZEO ... 413
27900 UN06L.lGATEO BALANCES .4,000, ·4,000
27910 RESERVES COST AVOIDANCE. ·80,000 ~40,OOO
27920 INCREASE IN OEATH GRATUITY •. '00
2S150 TOTAL, RESERve PERSONNEL.. AIR FORCE" .•. 1.261,889 1.332.301 1.288,08S
89
lin thousands of dollars]
Other Adjustments:
27920 Increase in Death Gratuity .. 200
90
NATIONAL GUARD PERSONNEL, ARMY
The conference agreemenl on items addressed by either the House or the
(In thouunda 01 dolhrsl

Budget Houl!Ie Semite Conference
28200 NATIONAL GUARD PERSONNEL. MI'fY
281:\0 ACtIvITY 1: UNIT AND INDIVIDUAL TRA.INING

28300 PAY GROUP A TRAINIKG (15 DAYS & DRILLS 2"146). 1.93&.655 1,938.855 1,936,855
26350 PAY GROUP F TRAI/ilING (RECRUITS) •• 237.888 2~7,886 237,atjB
26.00 PAY GROUP P TRAINING (PIPELINE RECRUITS). 26.327 26.327 26.327
28eo DEFENSE HEALTH PROGIU." ACCRUAL ... 805,970 805,970 605,970
28800 TOTAL. BUDGET ACtIVITY 1. 2,807,1338 2,607,038 2,807,038
28650 ACtIVITY 2: OTHER TRAIMTMG AND SUPPORT

28700 SCHOOL TRAINIMG 225.190 22:1,190 225,190
28750 SPECIAl TRAINING .. 198.365 198,:3155 198.365
28800 A.O!'I'INIsTAAnON AND SuPPORt., 2,081,781 2,144,281 2,131.881
286:10 EDUCATION BENEFITS ••.••.. 109,636 109,636 109,836
28900 DEFENSE H~LTH PROGRAPl ACCRUAL .. 112.309 112,309 "2,309
29050 TOTAL, BUOGf:T ACTIVITY :2 .. 2,707.281 2,789.781 2,777.381
29070 INCREASED PAY TABLES AlJTHORIZEO .. , ,tl85
29350 UNOBLIGATED BALANCES .• , -5,000 -5,000
29.10 RESERVES COST AVOIDANCE .. -80,000 -50.000
29420 SUSTAIN AGR GROWTH. 24.400
29430 "OBtUZED AGRS, .... .71,000 ·30,000
29435 l£WIS AND CLARK 8ICENTENN1AL AcnVITJES.• 150
29440 INCREASE IN DEAlH GRATlJtTY .. , ..•.. _. 200
29500 TOTAL. NATIONAL GUARD PERSONNEL, ARI1Y 5.J62.719 5.596,504 5,500.389

91
[In thousands of doll....]
Budget Activity 2: Other Training and Support
28800 Administration and SupportlFulI Time Manning for
AGRs . 37,800
28800 Administration and SupportJCivil Support Teams
AGRs . 18,000
28800 Administration and SupportJGround.Based Midcourse
Missile Defense AGRs .. 14,300
Other Adjustments:
29430 Mobilized AGRs .. -30,000
29435 Lewis and Clark Bicentennial Activities .. 750
29440 Increase in Death Gratuity .. 200
92
NATIONAL GUARD PERSONNEL, AIR FORCE
(In thousands of dol1ars)

Budget Houu Senate ConferenG8
29550 NATIONAL GUARD PERSDflNEL. AIR FORCE
29600 ACTIVITY 1: UNIT AND JHOIVIOUAL TRAINING

29650 PAY GROUP A TRAlIillHG (i5 DAYS & ORIU.S 2.4/"8) 7Be.738 788,738 788,736
29700 PAY GROUP F TRAINING (R'ECRUTTS) 64.797 64,797 64,797
29750 PAY DROUP P TRAINING (PIPfLHIE RECRUITS). 1.208 , ,208 1,208
29800 DEFENSE HEAl-TIt PROGAAft ACCRUAL. .. , 178,118 178.118 H8,118
29950 TOTAL, BUDGET ACTIVIfY ',., ••.. 1,032.861 1,032,861 ',032,861
30000 ACTIVITY 2 OTHER mINING AKO SUPPORT

30050 SCHOOL TRAINING. 142,196 142,198 '42,196
30100 SPECIAL TRAINING .. 78.243 75,243 78,243
30150 AO"'lNIS1RATIOH MO SUPPORT. 818,399 883,399 882,399
30200 EDUCATION BENEFITS .. 40,443 40,443 40,4.43
30250 DEFENSE HEALTH PROGRAM ACCRUAL. 51.956 52,956 52,956
30400 TOTAL, BUDGET ACTIVITY 2 .•.• , 1,UI0,237 1,195,231 1,194,231
30410 INCREASED PAY TABLES AUTHORIZED .. 73'

30550 UNOBLIGATED BALMICES ..•. -2,eoo -2,600
30600 RESERVES COST AVOIDANCE .60,000 ·50.000
30750 TOTAL., NATIONAL GUARD PERSONNEL., AIR FORCE .. 2,140,598 2,228,830 2,17".598
93

Budget Activity 2: Other Training and Support
30150 Administration and Support/Civil Support Teams
AGRs . 4,000
Other Adjustments:
94
nTLE ll- OPERATION AND MAINTENANCE
The conference agreement on the items addressed by either the House
or the Senate is as follows:
(In thou_and. of dollar,)

Bl.Idget House Senate Conference
50000- REC",Plrul.AT10H
M050 0 & !'t. AQI'fY • 24,956,842 24,903,992 204,922,949 25,O29,~6
S0160 0 & 1'1. NAVY 26,267,690 28,060,240 26,183,26-4 28,146,658
50250 0 I It, I'lARINE CORPS .. 3,406.856 3.440.4S6 3,418.023 3,440,323
503000 & 1'1, AIR FORCE. 27,?g3,931 25,689.043 26,698.375 26.904,731
&04(10 0 & Pl, OEFENSEW1DE .• , •••. 16,570,847 16,124,455 16.219,006 18,226,841
50500 0 & It, ARI1Y RESERVE •••. 1.952,009 2,031,309 1,964,009 1, saS,60S
!I0550 0 & tI, HAW RESERVI .• .. 1 171.921 1,171.921 1,172,921 1,172,92.1
506000 & t\, MRtNE CORPS RESERVE, ••. 173.952 173,952 173,952 173,952
eoesD 0 & 1'1, AIR FORCE RESERVE .. 2.179,188 2."4,188 2,179,188 2,179,3S8
60100 0 & ft. AR:!'IY NATIONAL GUARD, 4,211.3M 4.325,231 4,273.131 4,340.581
50760 a & 1'1, AIR NATIONAL GUARD .. .......... , ....... ,. 4.402.646 4,424,046 4,418.618 4431.216
50790 OVERSEA'S CONTINGENcY OPERATIONS TRANSfeR F'UNO .. 50.000 5.000 10.000 5.000
50800 UNITED STATES COVRT O~ APPEALS FCl'l: TtlE ARI'lE9 FORCES 10.333 10.333 10.333 10.333
50850 ENVIRONPlENTAL RESTORATION, ARl'tY .. 396,018 396,0,a 396,018 39S,016
50900 ENVlRONI'lENTAL RESTORATlON, NAVY. 256.~53 25G,153 256.153 256.~53
50950 ENVIRONPle.NTAl RESTOAATlON, AIR FORCE 384.307 384,307 384.307 384,307
MODO ENVIAM"ENTAL R!STORATION. DEFENSE·WIDE .•••• 24,061 24.081 24,081 24, 08~
51050 ENVIRONMENTAL RESTCRATJON, ~ORllERLY USED DEFENSE SlTES 212,619 221,389 312,619 284.619
51200 OVERSl:A5 HUPl"'UTARIAN, DISASTER, AND CIVIC AID .. 59,000 59,000 59.000 59,000
51300 FOfll''1ER SavIE'T UNION THREAT REDUCTION ..•• 4~O,800 450.800 450.800 450,800
_.. .. -.. -...........
-~ ~-
61GDO GRAND TOTAL, 0 & 1'1.,., •. , •• 118.852.,324 "5.295.894 "5,58S,78!5 115,IU4,877

95
TRAVEL OF MILITARY DEPENDENTS
The conferees are concerned that spouses and dependents of
deployed military personnel often do not have the financial means
to visit their family members. Such travel could help ease the dif
ficult burden of managing a household. The conferees direct the
Secretary of Defense to submit a proposal for a program that would
provide travel assistance to spouses and dependents of deployed
military personnel. This proposal is to be submitted to the congres
sional defense committees before presentation of the fiscal year
2005 budget estimate.
96
OPERATION AND MAINTENANCE, ARMY
The conference agreement on items addressed by either the House or
the Senate is a follows:
(In thousands of dollns)

Budgat HOulla senate Ccnferenclo!
100 OPERATIo", AND flAINTENAHC[. A.RK'(
1~O BUOOET ACTIVITY " OPERATING FORCES
aoo LAND FOFICES

2eO DIVISIONS, 1,508.922 1,5,e,422 1,516.922 1,621,822
300 CORPS COI1BAT FORCES .. 478.563 478,563 478.563 478.1563
350 CORPS SUPPORT fORCES •• 383.7155 3'83.755 383.755 383,755
400 ECHELON ABOVE CORPS SUPPORT FORCeS 467.026 467,026 467.026 467,026
460 LAND FORCES OPERATJOJiS SUPPORT •• 1,078.757 , ,'078,757 1,113.757 1,106,757
500 LAND FOFlCES READINESS

5&0 FORCE READINESS OPERATTONS SUPPORT .. 1,&68,900 l.~72,"OO 1 ,'ee.900 1,594,162
800 LAND FORCES 5VSTEJltS .qEADINESS . 468.918 488,918 488,918 488.918
esc LAND FORCES DEPOT "AiNTEHANCE •. 1.007,'81 1.007.48~ 1,001, ..e1 t ,007 4B1
100 lAND FORCES READINESS SuPPORT

75D 8PlSE OPERATIONS SUPPORT. 2,651,539 2.859,539 5,000.930
SOO FAC SUSTAlNMENT. RESTORATION a 1100 (OP FORCES) ••.. 1.094.309 1,OQ4,:)(]9 1.816,376
85D I'tANAGEI'tENT & CPERATIQNI,L HEADQUARTERS. 20.033 243.033 260,180 257,733
900 UNIfIED Cot'IKANOS •• , 86.115 85,115 85.'\15 85.11$
950 "ISCELI.ANEOUS ACTIVITIES., •• 1.562.193 1.562.793 1,527,757 1,$34.193
~~~ .. ~.~ ... - .~ .. ..... _.-

~ ~~-- .. ...
~.~
'0<' TOTAL. BUDGET .-cnvlTV 1 12.517.111 12.6"0,111 6,89B.37" 15,744.831
1050 BUDGET ACTIVITY 2: I'tOBILIZATIOH
,,00 "OBrLITY oPERATIONS

1200 STRATEGIC MOBILIZATION . 378,432 378,4132 382,432 381,232
12~O ARI'rY' PREPQ5ITlOMEO STOCKS .. 145,728 t<15.72(1 145,728 145.728
1300 INDUSTRIAL PREPAREDNESS .• 7,7153 7,753 7,753 7,753
1325 FAC SUSTAlNKENT. AESTOItA.TJOfrt & MODERNIZATION. 8.933 6,933
.. _.. -.... -... _.........
1350 TOTAL, BUOOET ACTIVITY 2., !!l38,84B 538.8<*6 535,913 534,113

97
(In thouunds of dollaT""&)
Budget House Senollte Conference
............................. _................... ............................ . .............
1400 BUDGET ACTIVITY 3: TRAINING AND AECRUlnNG
1450 ACCESSION TRAINING

1500 oFFICER ACQUISITION". 811,853 89. a~3 es .8~3 89,8.53
1550 RECRIJIT TRAINtttG .••. 22,971 22,917 22.911 22.971
1600 ONE STATION UNIT TRAINING •.. 39,108 39,106 39,106 39,106
1650 SENIOR RESERVE OFFICERS' TRAINING eatPS.,. 214,284 215,184 2t8,284 215,784
1700 BASE OPERATIONS SUPPORT (ACCESSION TRAINING) •. 80,110 60,110
1700 FAC SUSTAINIlEIfT. RESTORATION I "OOERNlZATION •••. 61.098 61,098
1800 BASIC SKILLJ ADVANCE TRAINING

'850 SPECIALIZED Sl<ILL TRAINING 306,272 J13,972 308,272 313,072
1900 FLIGHT TRAINIIlG .. 499,040 499,0·0 504,040 501,5'0
1900 PAOFESSIOtlAL DEVELOP"E/rlT EDUCATI~,., "2.038 1'2,036 1'2.038 144,036
2000 TRAINING SUPPORT •..•. 478,903 '8Z,()(l3 .85 ••03 48',4D3
2050 BASE cPERATIOfiS 5UPPORT (BASIC SKILL./AD'II TRAINING) .. 8'19,80" 626."'4

2100 FAC SUSTAIN"EKT, RESTORATION & I'\OOEANIZATtOfll, 392.550 392.550
2150 RECRUITING/OlllER TRAINING

2200 RECRUITIl«' MO ADVERTISING •.• .488.035 468,035 '66,035 468 ,035
2250 EXA"INI/rlG"., .... .. .., .. 63.269 83,269 83,269 6:1,289
2300 OFF -DUTY AND VOL.UNTARY EOUCA.TION .• 228,011 226,011 227,011 227.011
23M CIVILIAN EDUCATION ANO TRAINING. 92.538 94,536 92,536 93,936
2400 JUWIOR R~SERVE OFFICERS' TRAINING CORpS,.,. 129,918 129,979 129,978 129.978
2450 eASE OPERATIONS SUPPORT (RECRUIT/OTHER TRAIN1NG). 236.993 238.993
2500 TOTAL.. BUDGET A.crIVITY 3 .•

.- -........
'.384.835
~ .... .... -...... --_. ---
~
•• 407,535 2,808.782 2.812.982
25!l0 6UOGET ACTIVITY 4: ADIU~ & SERVICEW1O£ ACnVITlES
2600 SECURIlY PROGRA!'tS

2800 S!CURITY PAOGIWIS .••••• , 591,622 591,622 608,822 806,997
2700 uxaSTICS OPERATIONS

2750 SERVICEIrlIDE TRANSPORTATION. 681,551 681,551 681,551 881.551
2800 CEH1'AAL SlJPPl.Y ACnV1T1£5. 491 ,83~ 499. 83~ 49' ,835 497.735
2650 LOGISTICS SUPPORT ACTIVITIES." •. 1, 058 ,780 1,0(58,760 1,077,760 1,073,360
2900 Al1l1UNlTIOl'l I'IAMAGE"ENT .•... 330.129 331>,129 330.129 330.129

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CREW: Department of Defense: Department of The Air Force: Regarding Perchlorate: Scanned Perchlorate October 2008 X

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H. R.

Subtitle C-Base Closure and Realignment

Subtitle D-Land Conveyances

PART II-NAVY CONVEYANCES

PART IV-OTHER CONVEYANCES

Subtitle E-Other Matters

DIVISION C-DEPARTMENT OF ENERGY

Subtitle A-National Security Programs

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

Subtitle B-Program Authorizations,

Subtitle C-Proliferation Matters

"(2) The aggregate amount newly made available for such

Subtitle D-Other Matters

Subtitle E-Consolidation of National

"DIVISION D-ATOMIC ENERGY

"TITLE XLII-NUCLEAR WEAPONS

"Subtitle A-Stockpile Stewardship and

(2) INTERNATIONAL COOPERATIVE STOCKPILE STEWARD­

"TITLE XLIV-ENVIRONMENTAL RES­

(A) transferred to title XLIV of the Bob Stump National

"Subtitle B-Closure of Facilities".

"Subtitle D-Hanford Reservation,

(16) SAFETY MEASURES FOR WASTE TANKS.-Section 3137

"Subtitle E-Savannah River Site, South

(iii) inserted after section 4453, as added by

(B) inserted after section 4453D, as added by para­

"TITLE XLV-SAFEGUARDS AND

Law 106-65; 42 U.S.C. 7383h)" and inserting "section

(9) REPORT ON SECURITY VULNERABILITIES OF NATIONAL

"Subtitle B-Classified Information".

"Subtitle C-Emergency Response".

"TITLE XLVI-PERSONNEL MATTERS

"Subtitle B-Education and Training".

"Subtitle C-Worker Safety".

"TITLE XLVII-BUDGET AND FINANCIAL

"Subtitle C-Other Matters".

"Subtitle B-Research and Development".

"Subtitle C-Facilities Management".

"Subtitle D-Other Matters".

TITLE XXXII-DEFENSE NUCLEAR

FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

TITLE XXXIII-NATIONAL DEFENSE

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE

TITLE XXXIV-NAVAL PETROLEUM

Sec. 3501. Short title.

Sec. 3532. Related amendments to existing law.

Sec. 3533. Interim rules.

Sec. 3534. Repeals and conforming amendments.

Sec. 3535. GAO study of adjustment of operating agreement payment criteria.

Sec. 3536. Definitions.

Sec. 3537. Effective dates.

Subtitle D-National Defense Tank Vessel Construction Assistance

Sec. 3542. Application procedure.

Sec. 3543. Award of assistance.

Sec. 3544. Priority for title XI assistance.

Sec. 3545. Definitions.

Sec. 3546. Authorization of appropriations.

SEC. 3501. SHORT TITLE.

Subtitle A-Maritime Administration

SEC. 3511. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS

"(b) AUTHORITY To CONVEY VESSELS.­

Subtitle B-Amendments to Title XI Loan

(2) INTERNATIONAL COOPERATIVE STOCKPILE STEWARD

"TITLE XLIV-ENVIRONMENTAL RES

(B) inserted after section 4453D, as added by para

"(b) AUTHORITY To CONVEY VESSELS.

"(B) is not a United States-documented vessel, but

the Committee on Armed Services of the House of Rep

that there are no other legal, operational, or other impedi

from performing its obligations under an operating agree

"(4) VESSEL OWNED BY DOCUMENTATION CITIZEN AND CHAR

(B) memoranda of understanding and related agree

"(C) in the performance of duty under conditions simu