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107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-731

======================================================================



 
 MAKING APPROPRIATIONS FOR MILITARY CONSTRUCTION, FAMILY HOUSING, AND 
  BASE REALIGNMENT AND CLOSURE FOR THE DEPARTMENT OF DEFENSE FOR THE 
     FISCAL YEAR ENDING SEPTEMBER 30, 2003, AND FOR OTHER PURPOSES

                                _______
                                

                October 9, 2002.--Ordered to be printed

                                _______
                                

 Mr. Hobson, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 5011]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
5011) ``making appropriations for military construction, family 
housing, and base realignment and closure for the Department of 
Defense for the fiscal year ending September 30, 2003, and for 
other purposes,'' having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
      That the House recede from its disagreement to the 
amendment 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 military 
construction, family housing, and base realignment and closure 
functions administered by the Department of Defense, for the 
fiscal year ending September 30, 2003, and for other purposes, 
namely:

                      Military Construction, Army

                         (INCLUDING RESCISSION)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, military installations, 
facilities, and real property for the Army as currently 
authorized by law, including personnel in the Army Corps of 
Engineers and other personal services necessary for the 
purposes of this appropriation, and for construction and 
operation of facilities in support of the functions of the 
Commander in Chief, $1,683,710,000, to remain available until 
September 30, 2007: Provided, That of this amount, not to 
exceed $163,135,000 shall be available for study, planning, 
design, architect and engineer services, and host nation 
support, as authorized by law, unless the Secretary of Defense 
determines that additional obligations are necessary for such 
purposes and notifies the Committees on Appropriations of both 
Houses of Congress of his determination and the reasons 
therefor: Provided further, That of the funds appropriated for 
``Military Construction, Army'' in previous Military 
Construction Appropriation Acts, $49,376,000 are rescinded.

                      Military Construction, Navy

                         (INCLUDING RESCISSION)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, naval installations, 
facilities, and real property for the Navy as currently 
authorized by law, including personnel in the Naval Facilities 
Engineering Command and other personal services necessary for 
the purposes of this appropriation, $1,305,128,000, to remain 
available until September 30, 2007: Provided, That of this 
amount, not to exceed $87,043,000 shall be available for study, 
planning, design, architect and engineer services, as 
authorized by law, unless the Secretary of Defense determines 
that additional obligations are necessary for such purposes and 
notifies the Committees on Appropriations of both Houses of 
Congress of his determination and the reasons therefor: 
Provided further, That of the funds appropriated for ``Military 
Construction, Navy'' in previous Military Construction 
Appropriation Acts, $1,340,000 are rescinded.

                    Military Construction, Air Force

                         (INCLUDING RESCISSION)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, military installations, 
facilities, and real property for the Air Force as currently 
authorized by law, $1,080,247,000, to remain available until 
September 30, 2007: Provided, That of this amount, not to 
exceed $72,283,000 shall be available for study, planning, 
design, architect and engineer services, as authorized by law, 
unless the Secretary of Defense determines that additional 
obligations are necessary for such purposes and notifies the 
Committees on Appropriations of both Houses of Congress of his 
determination and the reasons therefor: Provided further, That 
of the funds appropriated for ``Military Construction, Air 
Force'' in previous Military Construction Appropriation Acts, 
$13,281,000 are rescinded.

                  Military Construction, Defense-wide

              (INCLUDING TRANSFER AND RESCISSION OF FUNDS)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, installations, 
facilities, and real property for activities and agencies of 
the Department of Defense (other than the military 
departments), as currently authorized by law, $874,645,000, to 
remain available until September 30, 2007: Provided, That such 
amounts of this appropriation as may be determined by the 
Secretary of Defense may be transferred to such appropriations 
of the Department of Defense available for military 
construction or family housing as he may designate, 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 
transferred: Provided further, That of the amount appropriated, 
not to exceed $50,432,000 shall be available for study, 
planning, design, architect and engineer services, as 
authorized by law, unless the Secretary of Defense determines 
that additional obligations are necessary for such purposes and 
notifies the Committees on Appropriations of both Houses of 
Congress of his determination and the reasons therefor: 
Provided further, That of the funds appropriated for ``Military 
Construction, Defense-wide'' in previous Military Construction 
Appropriation Acts, $2,976,000 are rescinded.

               Military Construction, Army National Guard

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Army National Guard, and contributions 
therefor, as authorized by chapter 1803 of title 10, United 
States Code, and Military Construction Authorization Acts, 
$241,377,000, to remain available until September 30, 2007.

               Military Construction, Air National Guard

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Air National Guard, and contributions 
therefor, as authorized by chapter 1803 of title 10, United 
States Code, and Military Construction Authorization Acts, 
$203,813,000, to remain available until September 30, 2007.

                  Military Construction, Army Reserve

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Army Reserve as authorized by chapter 
1803 of title 10, United States Code, and Military Construction 
Authorization Acts, $100,554,000, to remain available until 
September 30, 2007.

                  Military Construction, Naval Reserve

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the reserve components of the Navy and Marine 
Corps as authorized by chapter 1803 of title 10, United States 
Code, and Military Construction Authorization Acts, 
$74,921,000, to remain available until September 30, 2007.

                Military Construction, Air Force Reserve

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Air Force Reserve as authorized by 
chapter 1803 of title 10, United States Code, and Military 
Construction Authorization Acts, $67,226,000, to remain 
available until September 30, 2007.

     North Atlantic Treaty Organization Security Investment Program

    For the United States share of the cost of the North 
Atlantic Treaty Organization Security Investment Program for 
the acquisition and construction of military facilities and 
installations (including international military headquarters) 
and for related expenses for the collective defense of the 
North Atlantic Treaty Area as authorized in Military 
Construction Authorization Acts and section 2806 of title 10, 
United States Code, $167,200,000, to remain available until 
expended.

                   Family Housing Construction, Army

                         (INCLUDING RESCISSION)

    For expenses of family housing for the Army for 
construction, including acquisition, replacement, addition, 
expansion, extension and alteration, as authorized by law, 
$280,356,000, to remain available until September 30, 2007: 
Provided, That of the funds appropriated for ``Family Housing 
Construction, Army'' in previous Military Construction 
Appropriation Acts, $4,920,000 are rescinded.

             Family Housing Operation and Maintenance, Army

    For expenses of family housing for the Army for operation 
and maintenance, including debt payment, leasing, minor 
construction, principal and interest charges, and insurance 
premiums, as authorized by law, $1,106,007,000.

           Family Housing Construction, Navy and Marine Corps

                         (INCLUDING RESCISSION)

    For expenses of family housing for the Navy and Marine 
Corps for construction, including acquisition, replacement, 
addition, expansion, extension and alteration, as authorized by 
law, $376,468,000, to remain available until September 30, 
2007: Provided, That of the funds appropriated for ``Family 
Housing Construction, Navy and Marine Corps'' in previous 
Military Construction Appropriation Acts, $2,652,000 are 
rescinded.

    Family Housing Operation and Maintenance, Navy and Marine Corps

    For expenses of family housing for the Navy and Marine 
Corps for operation and maintenance, including debt payment, 
leasing, minor construction, principal and interest charges, 
and insurance premiums, as authorized by law, $861,788,000.

                 Family Housing Construction, Air Force

                         (INCLUDING RESCISSION)

    For expenses of family housing for the Air Force for 
construction, including acquisition, replacement, addition, 
expansion, extension and alteration, as authorized by law, 
$684,824,000, to remain available until September 30, 2007: 
Provided, That of the funds appropriated for ``Family Housing 
Construction, Air Force'' in previous Military Construction 
Appropriation Acts, $8,782,000 are rescinded.

          Family Housing Operation and Maintenance, Air Force

    For expenses of family housing for the Air Force for 
operation and maintenance, including debt payment, leasing, 
minor construction, principal and interest charges, and 
insurance premiums, as authorized by law, $863,050,000.

               Family Housing Construction, Defense-wide

    For expenses of family housing for the activities and 
agencies of the Department of Defense (other than the military 
departments) for construction, including acquisition, 
replacement, addition, expansion, extension and alteration, as 
authorized by law, $5,480,000, to remain available until 
September 30, 2007.

         Family Housing Operation and Maintenance, Defense-wide

    For expenses of family housing for the activities and 
agencies of the Department of Defense (other than the military 
departments) for operation and maintenance, leasing, and minor 
construction, as authorized by law, $42,395,000.

         Department of Defense Family Housing Improvement Fund

    For the Department of Defense Family Housing Improvement 
Fund, $2,000,000, to remain available until expended, for 
family housing initiatives undertaken pursuant to section 2883 
of title 10, United States Code, providing alternative means of 
acquiring and improving military family housing, and supporting 
facilities.

                  Base Realignment and Closure Account

    For deposit into the Department of Defense Base Closure 
Account 1990 established by section 2906(a)(1) of the 
Department of Defense Authorization Act, 1991 (Public Law 101-
510), $561,138,000, to remain available until expended.

                           GENERAL PROVISIONS

    Sec. 101. None of the funds appropriated in Military 
Construction Appropriations Acts shall be expended for payments 
under a cost-plus-a-fixed-fee contract for construction, where 
cost estimates exceed $25,000, to be performed within the 
United States, except Alaska, without the specific approval in 
writing of the Secretary of Defense setting forth the reasons 
therefor.
    Sec. 102. Funds appropriated to the Department of Defense 
for construction shall be available for hire of passenger motor 
vehicles.
    Sec. 103. Funds appropriated to the Department of Defense 
for construction may be used for advances to the Federal 
Highway Administration, Department of Transportation, for the 
construction of access roads as authorized by section 210 of 
title 23, United States Code, when projects authorized therein 
are certified as important to the national defense by the 
Secretary of Defense.
    Sec. 104. None of the funds appropriated in this Act may be 
used to begin construction of new bases inside the continental 
United States for which specific appropriations have not been 
made.
    Sec. 105. No part of the funds provided in Military 
Construction Appropriations Acts shall be used for purchase of 
land or land easements in excess of 100 percent of the value as 
determined by the Army Corps of Engineers or the Naval 
Facilities Engineering Command, except: (1) where there is a 
determination of value by a Federal court; (2) purchases 
negotiated by the Attorney General or his designee; (3) where 
the estimated value is less than $25,000; or (4) as otherwise 
determined by the Secretary of Defense to be in the public 
interest.
    Sec. 106. None of the funds appropriated in Military 
Construction Appropriations Acts shall be used to: (1) acquire 
land; (2) provide for site preparation; or (3) install 
utilities for any family housing, except housing for which 
funds have been made available in annual Military Construction 
Appropriations Acts.
    Sec. 107. None of the funds appropriated in Military 
Construction Appropriations Acts for minor construction may be 
used to transfer or relocate any activity from one base or 
installation to another, without prior notification to the 
Committees on Appropriations.
    Sec. 108. No part of the funds appropriated in Military 
Construction Appropriations Acts may be used for the 
procurement of steel for any construction project or activity 
for which American steel producers, fabricators, and 
manufacturers have been denied the opportunity to compete for 
such steel procurement.
    Sec. 109. None of the funds available to the Department of 
Defense for military construction or family housing during the 
current fiscal year may be used to pay real property taxes in 
any foreign nation.
    Sec. 110. None of the funds appropriated in Military 
Construction Appropriations Acts may be used to initiate a new 
installation overseas without prior notification to the 
Committees on Appropriations.
    Sec. 111. None of the funds appropriated in Military 
Construction Appropriations Acts may be obligated for architect 
and engineer contracts estimated by the Government to exceed 
$500,000 for projects to be accomplished in Japan, in any NATO 
member country, or in countries bordering the Arabian Sea, 
unless such contracts are awarded to United States firms or 
United States firms in joint venture with host nation firms.
    Sec. 112. None of the funds appropriated in Military 
Construction Appropriations Acts for military construction in 
the United States territories and possessions in the Pacific 
and on Kwajalein Atoll, or in countries bordering the Arabian 
Sea, may be used to award any contract estimated by the 
Government to exceed $1,000,000 to a foreign contractor: 
Provided, That this section shall not be applicable to contract 
awards for which the lowest responsive and responsible bid of a 
United States contractor exceeds the lowest responsive and 
responsible bid of a foreign contractor by greater than 20 
percent: Provided further, That this section shall not apply to 
contract awards for military construction on Kwajalein Atoll 
for which the lowest responsive and responsible bid is 
submitted by a Marshallese contractor.
    Sec. 113. The Secretary of Defense is to inform the 
appropriate committees of Congress, including the Committees on 
Appropriations, of the plans and scope of any proposed military 
exercise involving United States personnel 30 days prior to its 
occurring, if amounts expended for construction, either 
temporary or permanent, are anticipated to exceed $100,000.
    Sec. 114. Not more than 20 percent of the appropriations in 
Military Construction Appropriations Acts which are limited for 
obligation during the current fiscal year shall be obligated 
during the last 2 months of the fiscal year.

                          (TRANSFER OF FUNDS)

    Sec. 115. Funds appropriated to the Department of Defense 
for construction in prior years shall be available for 
construction authorized for each such military department by 
the authorizations enacted into law during the current session 
of Congress.
    Sec. 116. For military construction or family housing 
projects that are being completed with funds otherwise expired 
or lapsed for obligation, expired or lapsed funds may be used 
to pay the cost of associated supervision, inspection, 
overhead, engineering and design on those projects and on 
subsequent claims, if any.
    Sec. 117. Notwithstanding any other provision of law, any 
funds appropriated to a military department or defense agency 
for the construction of military projects may be obligated for 
a military construction project or contract, or for any portion 
of such a project or contract, at any time before the end of 
the fourth fiscal year after the fiscal year for which funds 
for such project were appropriated if the funds obligated for 
such project: (1) are obligated from funds available for 
military construction projects; and (2) do not exceed the 
amount appropriated for such project, plus any amount by which 
the cost of such project is increased pursuant to law.

                          (TRANSFER OF FUNDS)

    Sec. 118. During the 5-year period after appropriations 
available to the Department of Defense for military 
construction and family housing operation and maintenance and 
construction have expired for obligation, upon a determination 
that such appropriations will not be necessary for the 
liquidation of obligations or for making authorized adjustments 
to such appropriations for obligations incurred during the 
period of availability of such appropriations, unobligated 
balances of such appropriations may be transferred into the 
appropriation ``Foreign Currency Fluctuations, Construction, 
Defense'' to be merged with and to be available for the same 
time period and for the same purposes as the appropriation to 
which transferred.
    Sec. 119. The Secretary of Defense is to provide the 
Committees on Appropriations of the Senate and the House of 
Representatives with an annual report by February 15, 
containing details of the specific actions proposed to be taken 
by the Department of Defense during the current fiscal year to 
encourage other member nations of the North Atlantic Treaty 
Organization, Japan, Korea, and United States allies bordering 
the Arabian Sea to assume a greater share of the common defense 
burden of such nations and the United States.

                          (TRANSFER OF FUNDS)

    Sec. 120. During the current fiscal year, in addition to 
any other transfer authority available to the Department of 
Defense, proceeds deposited to the Department of Defense Base 
Closure Account established by section 207(a)(1) of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
(Public Law 100-526) pursuant to section 207(a)(2)(C) of such 
Act, may be transferred to the account established by section 
2906(a)(1) of the Department of Defense Authorization Act, 
1991, to be merged with, and to be available for the same 
purposes and the same time period as that account.
    Sec. 121. (a) No funds appropriated pursuant to this Act 
may be expended by an entity unless the entity agrees that in 
expending the assistance the entity will comply with sections 2 
through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c, 
popularly known as the ``Buy American Act'').
    (b) No funds made available under this Act shall be made 
available to any person or entity who has been convicted of 
violating the Act of March 3, 1933 (41 U.S.C. 10a-10c, 
popularly known as the ``Buy American Act'').
    Sec. 122. (a) In the case of any equipment or products that 
may be authorized to be purchased with financial assistance 
provided under this Act, it is the sense of the Congress that 
entities receiving such assistance should, in expending the 
assistance, purchase only American-made equipment and products.
    (b) In providing financial assistance under this Act, the 
Secretary of the Treasury shall provide to each recipient of 
the assistance a notice describing the statement made in 
subsection (a) by the Congress.

                          (TRANSFER OF FUNDS)

    Sec. 123. Subject to 30 days prior notification to the 
Committees on Appropriations, such additional amounts as may be 
determined by the Secretary of Defense may be transferred to 
the Department of Defense Family Housing Improvement Fund from 
amounts appropriated for construction in ``Family Housing'' 
accounts, to be merged with and to be available for the same 
purposes and for the same period of time as amounts 
appropriated directly to the Fund: Provided, That 
appropriations made available to the Fund shall be available to 
cover the costs, as defined in section 502(5) of the 
Congressional Budget Act of 1974, of direct loans or loan 
guarantees issued by the Department of Defense pursuant to the 
provisions of subchapter IV of chapter 169, title 10, United 
States Code, pertaining to alternative means of acquiring and 
improving military family housing and supporting facilities.
    Sec. 124. None of the funds appropriated or made available 
by this Act may be obligated for Partnership for Peace Programs 
in the New Independent States of the former Soviet Union.
    Sec. 125. (a) Not later than 60 days before issuing any 
solicitation for a contract with the private sector for 
military family housing the Secretary of the military 
department concerned shall submit to the congressional defense 
committees the notice described in subsection (b).
    (b)(1) A notice referred to in subsection (a) is a notice 
of any guarantee (including the making of mortgage or rental 
payments) proposed to be made by the Secretary to the private 
party under the contract involved in the event of--
            (A) the closure or realignment of the installation 
        for which housing is provided under the contract;
            (B) a reduction in force of units stationed at such 
        installation; or
            (C) the extended deployment overseas of units 
        stationed at such installation.
    (2) Each notice under this subsection shall specify the 
nature of the guarantee involved and assess the extent and 
likelihood, if any, of the liability of the Federal Government 
with respect to the guarantee.
    (c) In this section, the term ``congressional defense 
committees'' means the following:
            (1) The Committee on Armed Services and the 
        Military Construction Subcommittee, Committee on 
        Appropriations of the Senate.
            (2) The Committee on Armed Services and the 
        Military Construction Subcommittee, Committee on 
        Appropriations of the House of Representatives.

                          (TRANSFER OF FUNDS)

    Sec. 126. During the current fiscal year, in addition to 
any other transfer authority available to the Department of 
Defense, amounts may be transferred from the account 
established by section 2906(a)(1) of the Department of Defense 
Authorization Act, 1991, to the fund established by section 
1013(d) of the Demonstration Cities and Metropolitan 
Development Act of 1966 (42 U.S.C. 3374) to pay for expenses 
associated with the Homeowners Assistance Program. Any amounts 
transferred shall be merged with and be available for the same 
purposes and for the same time period as the fund to which 
transferred.
    Sec. 127. Notwithstanding this or any other provision of 
law, funds appropriated in Military Construction Appropriations 
Acts for operations and maintenance of family housing shall be 
the exclusive source of funds for repair and maintenance of all 
family housing units, including general or flag officer 
quarters: Provided, That not more than $35,000 per unit may be 
spent annually for the maintenance and repair of any general or 
flag officer quarters without 30 days advance prior 
notification to the appropriate committees of Congress, except 
that an after-the-fact notification shall be submitted if the 
limitation is exceeded solely due to costs associated with 
environmental remediation that could not be reasonably 
anticipated at the time of the budget submission: Provided 
further, That the Under Secretary of Defense (Comptroller) is 
to report annually to the Committees on Appropriations all 
operations and maintenance expenditures for each individual 
general or flag officer quarters for the prior fiscal year.
    Sec. 128. Notwithstanding any other provision of law, the 
Secretary of the Navy is authorized to use funds received 
pursuant to section 2601 of title 10, United States Code, for 
the construction, improvement, repair, and maintenance of the 
historic residences located at Marine Corps Barracks, 8th and I 
Streets, Washington, D.C.: Provided, That the Secretary 
notifies the appropriate committees of Congress 30 days in 
advance of the intended use of such funds: Provided further, 
That this section remains effective until September 30, 2004.
    Sec. 129. None of the funds made available in this Act may 
be transferred to any department, agency, or instrumentality of 
the United States Government, except pursuant to a transfer 
made by, or transfer authority provided in, this Act or any 
other appropriation Act.
    Sec. 130. Amounts appropriated for a military construction 
project at Camp Kyle, Korea, relating to construction of a 
physical fitness center, as authorized by section 8160 of the 
Department of Defense Appropriations Act, 2000 (Public Law 106-
79; 113 Stat. 1274), shall be available instead for a similar 
project at Camp Bonifas, Korea.
    Sec. 131. (a) Requests for Funds for Environmental 
Restoration at BRAC Sites in Future Fiscal Years.--In the 
budget justification materials submitted to Congress in support 
of the Department of Defense budget for any fiscal year after 
fiscal year 2003, the amount requested for environmental 
restoration, waste management, and environmental compliance 
activities in such fiscal year with respect to military 
installations approved for closure or realignment under the 
base closure laws shall accurately reflect the anticipated cost 
of such activities in such fiscal year.
    (b) Base Closure Laws Defined.--In this section, the term 
``base closure laws'' means the following:
            (1) Section 2687 of title 10, United States Code.
            (2) 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).
            (3) Title II of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public 
        Law 100-526; 10 U.S.C. 2687 note).
    This Act may be cited as the ``Military Construction 
Appropriation Act, 2003''.

    And the Senate agree to the same.

                                   David L. Hobson,
                                   James T. Walsh,
                                   Dan Miller,
                                   Robert Aderholt,
                                   Kay Granger,
                                   Virgil H. Goode, Jr.,
                                   Joe Skeen,
                                   David Vitter,
                                   C.W. Bill Young,
                                   John W. Olver,
                                   Chet Edwards,
                                   Sam Farr,
                                   Allen Boyd,
                                   Norman D. Dicks,
                                   David R. Obey,
                                 Managers on the Part of the House.

                                   Dianne Feinstein,
                                   Daniel K. Inouye,
                                   Tim Johnson,
                                   Mary L. Landrieu,
                                   Harry Reid,
                                   Robert C. Byrd,
                                   Kay Bailey Hutchison,
                                   Conrad Burns,
                                   Larry Craig,
                                   Mike DeWine,
                                   Ted Stevens,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      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. 5011) making 
appropriations for the Department of Defense for the fiscal 
year ending September 30, 2003, and for other purposes, submit 
the following joint statement to the House of Representatives 
and the Senate in explanation of the effect of the action 
agreed upon by the managers and recommended in the accompanying 
conference report.
      The Senate deleted the entire House bill after the 
enacting clause and inserted the Senate bill (S. 2709). The 
conference agreement includes a revised bill.

                       Items of General Interest

      Matters Addressed by Only One Committee.--The language 
and allocations set forth in House Report 107-533 and Senate 
Report 107-202 should be complied with unless specifically 
addressed to the contrary in the conference report and 
statement of the managers. Report language included by the 
House which is not changed by the report of the Senate or the 
conference, and Senate report language which is not changed by 
the conference is approved by the committee of conference. The 
statement of the managers, while repeating some report language 
for emphasis, does not intend to negate the language referred 
to above unless expressly provided herein. In cases where the 
House or the Senate have directed the submission of a report 
from the Department of Defense, such report is to be submitted 
to both House and Senate Committees on Appropriations.
      Foreign Currency Fluctuation Savings.--The conference 
agreement rescinds funds from the following accounts in the 
specified amounts to reflect savings from favorable foreign 
currency fluctuations:

        Account                                                   Amount
Military Construction, Army.............................     $13,676,000
Military Construction, Navy.............................       1,340,000
Military Construction, Air Force........................      10,281,000
Military Construction, Defense-wide.....................       2,976,000
Family Housing Construction, Army.......................       4,920,000
Family Housing Construction, Navy and Marine Corps......       2,652,000
Family Housing Construction, Air Force..................       8,782,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................      44,627,000

      Revised Economic Assumptions.--The conference agreement 
includes reductions totaling $57,000,000, which result from the 
Office of Management and Budget's (OMB's) re-estimation of 
inflation in its mid-session review of the budget request. The 
conferees direct the Department to distribute these reductions 
proportionally against each project and activity in each 
account as follows:

        Account                                                   Amount
Military Construction, Army.............................      $8,000,000
Military Construction, Navy.............................       5,000,000
Military Construction, Air Force........................       5,000,000
Military Construction, Defense-wide.....................       3,000,000
Military Construction, Army National Guard..............       1,000,000
NATO Security Investment Program........................       1,000,000
Family Housing Construction, Army.......................       2,000,000
Family Housing Operation and Maintenance, Army..........       8,000,000
Family Housing Construction, Navy and Marine Corps......       3,000,000
Family Housing Operation and Maintenance, Navy and 
    Marine Corps........................................       6,000,000
Family Housing Construction, Air Force..................       5,000,000
Family Housing Operation and Maintenance, Air Force.....       6,000,000
Base Realignment and Closure............................       4,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................      57,000,000

      United States Army South.--In the statement of the 
managers accompanying the Fiscal Year 2002 Department of 
Defense Appropriations Act (Public Law 107-117), the conferees 
directed the Department of the Army to provide information to 
the House and Senate Committees on Appropriations by February 
28, 2002, regarding the relocation of the headquarters of U.S. 
Army South. The Army failed to comply with this direction for 
several reasons, some of which were not within its control. 
Nonetheless, the conferees remind the Department of the Army 
that it expects compliance with specific direction included in 
committee reports. If the Army is unable to comply with that 
direction or changes the manner in which the direction is to be 
implemented, the committees should be given the courtesy of an 
explanation.
      Sustainment, Restoration, and Modernization: Reporting 
Requirement.--The conferees agree to the following general 
rules for repairing a facility under operation and maintenance 
funding:
            Components of the facility may be repaired by 
        replacement, and such replacement can be up to current 
        standards or code;
            Interior arrangements and restorations may be 
        included as repair, but additions, new facilities, and 
        functional conversions must be performed as military 
        construction projects;
            Such projects may be done concurrent with repair 
        projects, as long as the final conjunctively funded 
        project is a complete and usable facility; and
            The appropriate Service Secretary shall notify the 
        appropriate Committees 21 days prior to carrying out 
        any repair project with an estimated cost in excess of 
        $7,500,000.
      In future budget requests, the Department is directed to 
provide the sustainment, restoration, and modernization backlog 
at all installations for which there is a requested 
construction project. This information is to be provided on the 
form 1390. In addition, for all troop housing requests, the 
form 1391 is to show all sustainment, restoration, and 
modernization conducted in the past two years and future 
requirements for such housing at the installation.
      Family Housing Operation and Maintenance: Financial 
Management.--The conferees agree to continue the restriction on 
the transfer of funds between the family housing operation and 
maintenance accounts. The limitation is ten percent to all 
primary accounts and subaccounts. Such transfers are to be 
reported to the appropriate Committees within thirty days of 
such action.
      Erosion Study.--The conferees direct the General 
Accounting Office to conduct a study of Alaska Native villages 
affected by flooding and erosion including but not limited to 
Kaktovik, Barrow, Point Hope, Kivalina, Unalakleet, and Bethel.
      The General Accounting Office should consult with the 
following agencies: (a) the Secretary of the Army to determine: 
(1) which villages can reasonably be protected through 
construction of seawalls, rip rap, and other engineered 
structures and at what cost, and; (2) which villages cannot 
reasonably be protected and will be required to relocate; (b) 
the Secretary of the Interior to identify possible relocation 
sites including federal lands and existing villages; (c) the 
Secretary of Housing and Urban Development to determine the 
cost of constructing housing and water and sewer systems in 
relocated villages; (d) the Secretary of Health and Human 
Services to determine the cost of constructing health 
facilities in relocated villages; (e) the Secretary of 
Agriculture to determine the cost of constructing power systems 
in relocated villages; and (f) the Secretary of Transportation 
to determine the cost of constructing airports, roads, and dock 
facilities in relocated villages. This report should be 
submitted to the House and Senate Committees on Appropriations 
no later than October 1, 2003.

                      MILITARY CONSTRUCTION, ARMY

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $1,683,710,000 for 
Military Construction, Army, instead of $1,514,557,000 as 
proposed by the House and $1,679,212,000 as proposed by the 
Senate. This amount reflects $8,000,000 in savings that result 
from the re-estimation of inflation. Within this amount, the 
conference agreement earmarks $163,135,000 for study, planning, 
design, architect and engineer services, and host nation 
support instead of $158,664,000 as proposed by the House and 
$136,835,000 as proposed by the Senate. The conference 
agreement rescinds $49,376,000 from funds provided to this 
account in previous Military Construction Appropriation Acts. 
The rescission includes $13,676,000 to reflect savings from 
favorable foreign currency fluctuations as proposed by the 
Senate. The House bill proposed rescinding these savings in 
section 128 of the General Provisions. In addition, the 
rescission includes $5,000,000 from a project that is no longer 
needed at Fort Bliss in Texas as proposed by the House, and 
$30,700,000 from three projects that are no longer needed at 
Fort Buchanan in Puerto Rico.
      Kansas--Fort Leavenworth: U.S. Disciplinary Barracks.--
The conferees are concerned that the Department of the Army is 
planning to relinquish its current mission of confining level 
III military inmates convicted under the Uniformed Code of 
Military Justice by transferring the mission to the Bureau of 
Prisons. This decision appears to have been made despite the 
Army's recent completion of the new maximum security U.S. 
Disciplinary Barracks at Fort Leavenworth, Kansas. The 
conferees direct the Army to submit a report to the 
congressional defense committees no later than December 15, 
2002, on the rationale for this proposal as well as the impact 
a policy change will have on the operation of the new U.S. 
Disciplinary Barracks at Fort Leavenworth, Kansas.
      New Mexico--White Sands Missile Range: Anechoic 
Chamber.--Of the additional funds provided for planning and 
design in this account, the conferees direct that not less than 
$1,000,000 be made available for the planning and design of 
this facility.
      Puerto Rico--Fort Buchanan: Rescission of Funds.--The 
conferees agree to rescind $30,700,000 from unobligated 
balances in this account. The National Defense Authorization 
Act, 2001 (Public Law 106-398) established a construction 
moratorium in Puerto Rico due to concern over long-term 
stationing requirements. This moratorium halted three 
previously appropriated construction projects totaling 
$30,700,000 at Fort Buchanan in Puerto Rico. As a result of the 
recent decision to relocate the headquarters of U.S. Army South 
from Fort Buchanan to Fort Sam Houston, Texas, these projects 
are no longer needed and the conferees agree to rescind the 
funds.
      Stryker Brigade Combat Team (SBCT) Initiative.--The 
conference agreement includes $25,000,000 above the budget 
request to assist in the Army's transformation effort. The 
Senate proposed $100,000,000 for this initiative. The House did 
not include a similar proposal. This funding is to support 
infrastructure requirements relating to fielding of the Stryker 
Brigade Combat Teams (SBCTs). It is the intent of the conferees 
that the Army has the discretion to determine how these funds 
will be allocated in support of transformation, subject to 
notification to the congressional defense committees 15 days 
prior to the obligation of these funds.

                      MILITARY CONSTRUCTION, NAVY

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $1,305,128,000 for 
Military Construction, Navy, instead of $1,245,765,000 as 
proposed by the House and $1,216,643,000 as proposed by the 
Senate. This amount reflects $5,000,000 in savings that result 
from the re-estimation of inflation. Within this amount, the 
conference agreement earmarks $87,043,000 for study, planning, 
design, architect and engineer services instead of $94,825,000 
as proposed by the House and $91,620,000 as proposed by the 
Senate. The conference agreement rescinds $1,340,000 from funds 
provided to this account in previous Military Construction 
Appropriation Acts to reflect savings from favorable foreign 
currency fluctuations as proposed by the Senate. The House bill 
proposed rescinding these funds in section 128 of the General 
Provisions.

                    MILITARY CONSTRUCTION, AIR FORCE

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $1,080,247,000 for 
Military Construction, Air Force, instead of $964,302,000 as 
proposed by the House and $1,175,617,000 as proposed by the 
Senate. This amount reflects $5,000,000 in savings that result 
from the re-estimation of inflation. Within this amount, the 
conference agreement earmarks $72,283,000 for study, planning, 
design, architect and engineer services instead of $78,951,000 
as proposed by the House and $87,555,000 as proposed by the 
Senate. The conference agreement rescinds $13,281,000 from 
funds provided to this account in previous Military 
Construction Appropriation Acts. The rescission includes 
$10,281,000 to reflect savings from favorable foreign currency 
fluctuations as proposed by the Senate. The House bill proposed 
rescinding these savings in section 128 of the General 
Provisions. In addition, the rescission includes $3,000,000 
from funds appropriated in Public Law 107-64 for the civil 
engineer maintenance complex at Osan Air Base in Korea. The 
Defense Department has informed Congress that this project was 
canceled due to the U.S.-Korea Land Partnership Plan signed on 
March 29, 2002.
      Air Mobility Modernization Program.--The conference 
agreement includes $25,000,000 above the budget request to 
assist in the Air Force's mobility modernization program. The 
Senate proposed $100,000,000 for this initiative. The House did 
not include a similar proposal. This funding is to support 
infrastructure requirements related to the implementation of 
this program. It is the intent of the conferees that the Air 
Force has the discretion to determine how these funds will be 
allocated in support of transformation, subject to notification 
to the congressional defense committees 15 days prior to the 
obligation of these funds.
      Arizona--Luke Air Force Base: Land Acquisition.--The 
conferees agree to provide $13,000,000 to be used for a land 
acquisition to preserve access to the Barry M. Goldwater Range 
(BMGR), to prevent incompatible land uses and encroachment, and 
to increase the margin of safety in the Live Ordnance Departure 
Area (LODA) southwest of Luke Air Force Base.
      North Dakota--Minot Air Force Base: Cruise Missile 
Storage Facility, Phase I.--Although the conferees were able to 
fund only Phase I of this project due to funding constraints, 
the conferees recognize the importance of this facility and 
strongly urge the Air Force to include full funding to complete 
the project in its fiscal year 2004 budget submission.

                  MILITARY CONSTRUCTION, DEFENSE-WIDE

              (INCLUDING TRANSFER AND RESCISSION OF FUNDS)

      The conference agreement appropriates $874,645,000 for 
Military Construction, Defense-wide, instead of $901,066,000 as 
proposed by the House and $927,242,000 as proposed by the 
Senate. This amount reflects $3,000,000 in savings that result 
from the re-estimation of inflation. Within this amount, the 
conference agreement earmarks $50,432,000 for study, planning, 
design, architect and engineer services instead of $45,432,000 
as proposed by the House and $57,789,000 as proposed by the 
Senate. The conference agreement rescinds $2,976,000 from funds 
provided to this account in previous Military Construction 
Appropriation Acts to reflect savings from favorable foreign 
currency fluctuations as proposed by the Senate. The House bill 
proposed rescinding these funds in section 128 of the General 
Provisions.
      California--Presidio of Monterey: Medical Clinic 
Expansion.--The conferees are aware that the current medical 
clinic located at the Presidio of Monterey, which serves both 
the Defense Language Institute and the Naval Postgraduate 
School, must annually turn away 10,000 active duty family 
members and a large retiree population of 20,000 because of 
insufficient clinic space for primary care and selected 
specialty care. This situation is further exacerbated by the 
increased student enrollment at the Defense Language Institute 
to meet the language training demands of Operation Enduring 
Freedom. Therefore, the conferees encourage the Department to 
make this project a priority and program the requirement within 
the Future Years Defense Plan.
      Chemical Demilitarization.--The conference agreement 
reduces the budget request for the Ammunition Demilitarization 
Facility (Phase V) project at Aberdeen Proving Ground, Maryland 
by $10,000,000 rather than a general reduction to the chemical 
demilitarization program as proposed by the Senate. The House 
did not include a similar reduction. The reduced amount 
reflects revised facility requirements resulting from the 
acceleration initiative for the destruction of chemical agents 
at Aberdeen Proving Ground.
      The conferees are pleased with the Army's proposal to 
accelerate the neutralization of chemical agents and urge the 
Department of Defense to execute it as quickly as possible. The 
chemicals stored at these sites create health and environmental 
hazards.
      As a result of revisions to accelerate the chemical 
demilitarization program, several military construction 
projects at Aberdeen Proving Ground have been terminated, 
leaving partially-completed structures. The conferees support 
the Department of the Army efforts to redesign and complete 
these partially-constructed buildings to meet other military 
construction needs. The conferees urge the Department of 
Defense to reach firm decisions on the re-use of these 
buildings without further delay. The Department is directed to 
submit a report to the congressional defense committees no 
later than December 31, 2002, on plans for re-use of existing 
and partially-constructed chemical demilitarization buildings 
at Aberdeen Proving Ground that are not needed as a result of 
the accelerated program. The conferees encourage the use of 
available funds to complete planning and design for re-use of 
the partially-constructed buildings during fiscal year 2003, 
and urge the Department to include the redesigned projects in 
the fiscal year 2004 budget submission.
      In addition, the conferees agree to delete language 
proposed by the House and not included by the Senate, that 
makes $84,400,000 contingent upon the program meeting 
milestones agreed upon by the Secretary of Defense and the 
Office of Management and Budget. This language is not necessary 
and potentially could cause Chemical Weapons Convention Treaty 
compliance issues.
      Energy Conservation Improvement Program.--The conferees 
agree to reduce this program by $15,000,000 due to substantial 
prior year unobligated balances.
      Texas--Kingsville Naval Air Station: Replace Fuel Farm.--
The conferees agree this project should be executed with funds 
made available for planning and design in this account rather 
than with funds in the ``Military Construction, Navy'' account, 
as proposed by the Senate.

               MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

      The conference agreement appropriates $241,377,000 for 
Military Construction, Army National Guard, instead of 
$159,672,000 as proposed by the House and $208,482,000 as 
proposed by the Senate. This amount reflects $1,000,000 in 
savings that result from the re-estimation of inflation.
      Indiana--Gary: Army Aviation Support Facility and 
Readiness Center.--In response to the additional needs of 
homeland security and the protection of metropolitan areas, the 
conferees encourage the Army National Guard to include this 
project in its fiscal year 2004 budget submission.
      Iowa--Waterloo: Readiness Center Addition.--Of the funds 
provided for unspecified minor construction in this account, 
the conferees urge the Army National Guard to provide 
$1,388,400 for an addition to the Readiness Center at Waterloo, 
Iowa.
      Mississippi--Tupelo: Army Aviation Support Facility.--Of 
the amount provided for planning and design in this account, 
the conferees direct that not less than $891,000 be made 
available to design this facility instead of $879,000 for 
design of the Readiness Center at Tupelo, Mississippi as 
proposed by the House.
      Pennsylvania--Fort Indiantown Gap: Multipurpose Training 
Range.--Of the funds provided for planning and design in this 
account, the conferees direct that not less than $1,400,000 be 
made available to design this project.

               MILITARY CONSTRUCTION, AIR NATIONAL GUARD

      The conference agreement appropriates $203,813,000 for 
Military Construction, Air National Guard, instead of 
$119,613,000 as proposed by the House and $217,988,000 as 
proposed by the Senate.
      Massachusetts--Otis Air National Guard Base: Fire Crash 
Rescue Station/Control Tower.--The conferees agree this project 
should be executed with funds made available for planning and 
design in this account as proposed by the House rather than 
with funds in the ``Military Construction, Air Force'' account, 
as proposed by the Senate.
      Minnesota--Duluth International Airport: Aircraft 
Maintenance Complex and Shops, Phase II.--The conferees were 
unable to fully fund the final phases of this project due to 
funding constraints. Mindful of the importance of the facility, 
the conferees strongly urge the Air National Guard to provide 
full funding to complete the project in its fiscal year 2004 
budget submission.
      Ohio--Toledo Express Airport: Replace Logistics 
Complex.--Of the funds provided for planning and design in this 
account, the conferees direct that not less than $472,000 be 
made available for the design of this facility.

                  MILITARY CONSTRUCTION, ARMY RESERVE

      The conference agreement appropriates $100,554,000 for 
Military Construction, Army Reserve, instead of $99,059,000 as 
proposed by the House and $66,487,000 as proposed by the 
Senate.

                  MILITARY CONSTRUCTION, NAVAL RESERVE

      The conference agreement appropriates $74,921,000 for 
Military Construction, Naval Reserve, instead of $75,821,000 as 
proposed by the House and $58,671,000 as proposed by the 
Senate.

                MILITARY CONSTRUCTION, AIR FORCE RESERVE

      The conference agreement appropriates $67,226,000 for 
Military Construction, Air Force Reserve, instead of 
$75,276,000 as proposed by the House and $58,209,000 as 
proposed by the Senate.

     NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

      Due to savings that result from the re-estimation of 
inflation, the conferees agree to reduce this appropriation 
from $168,200,000 to $167,200,000.
      The conferees agree to clarify Senate report language 
directing the Department to identify the level of funding 
anticipated for NATO enlargement and Partnership for Peace. 
This report should be provided to the Committees on 
Appropriations no later than June 15, 2003.

                   FAMILY HOUSING CONSTRUCTION, ARMY

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $280,356,000 for 
Family Housing Construction, Army, instead of $283,346,000 as 
proposed by the House and $282,856,000 as proposed by the 
Senate. This amount reflects $2,000,000 in savings that result 
from the re-estimation of inflation. The conference agreement 
rescinds $4,920,000 from funds provided to this account in 
previous Military Construction Appropriation Acts to reflect 
savings from favorable foreign currency fluctuations as 
proposed by the Senate. The House bill proposed rescinding 
these funds in section 128 of the General Provisions.
      Germany--Stuttgart: General Officer Quarters.--In light 
of the symbolic importance of the Deputy Commander-in-Chief's 
European Command residence in Stuttgart, the conferees deny the 
budget request for $990,000 to build the new on-post General 
Officer Quarters (GOQ). The House proposed to fully fund the 
project. The Senate proposed to reduce the project by $490,000.

             FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

      Due to savings that result from the re-estimation of 
inflation and a $5,000,000 reduction for excessive housing 
privatization consulting costs, the conferees agree to reduce 
this appropriation from $1,119,007,000 to $1,106,007,000.

           FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $376,468,000 for 
Family Housing Construction, Navy and Marine Corps, instead of 
$380,268,000 as proposed by the House and $374,468,000 as 
proposed by the Senate. This amount reflects $3,000,000 in 
savings that result from the re-estimation of inflation. The 
conference agreement rescinds $2,652,000 from funds provided to 
this account in previous Military Construction Appropriation 
Acts to reflect savings from favorable foreign currency 
fluctuations. The House bill proposed rescinding these funds in 
section 128 of the General Provisions.

    FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND MARINE CORPS

      Due to savings that result from the re-estimation of 
inflation, the conferees agree to reduce this appropriation 
from $867,788,000 to $861,788,000.

                 FAMILY HOUSING CONSTRUCTION, AIR FORCE

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $684,824,000 for 
Family Housing Construction, Air Force, instead of $689,824,000 
as proposed by the House and $676,694,000 as proposed by the 
Senate. This amount reflects $5,000,000 in savings that result 
from the re-estimation of inflation. The conference agreement 
rescinds $8,782,000 from funds provided to this account in 
previous Military Construction Appropriation Acts to reflect 
savings from favorable foreign currency fluctuations as 
proposed by the Senate. The House bill proposed rescinding 
these funds in section 128 of the General Provisions.

          FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

      Due to savings that result from the re-estimation of 
inflation and a $5,000,000 reduction for excessive housing 
privatization consulting costs, the conferees agree to reduce 
this appropriation from $874,050,000 to $863,050,000.

                  BASE REALIGNMENT AND CLOSURE ACCOUNT

      The conference agreement appropriates $561,138,000 for 
the Base Realignment and Closure Account, instead of 
$545,138,000 as proposed by the House and $645,138,000 as 
proposed by the Senate. This amount reflects $4,000,000 in 
savings that result from the re-estimation of inflation.
      Environmental Cleanup Acceleration Initiative.--The 
conference agreement includes $20,000,000 above the budget 
request to accelerate the pace of environmental cleanup at 
closed or realigned military installations. The Senate proposed 
$100,000,000 for this initiative. The House did not include a 
similar proposal. Based on requirements identified by the 
services, the conferees direct that, of the additional funding 
provided, $11,000,000 be made available for the Navy, 
$6,000,000 for the Air Force, and $3,000,000 for the Army.

                           GENERAL PROVISIONS

      The conference agreement includes general provisions 
(sections 101-120) that were not amended by either the House or 
Senate in their versions of the bill.
      The conference agreement includes a provision, section 
121, as proposed by the House, which prohibits the expenditure 
of funds except in compliance with the Buy American Act. The 
Senate bill contained no similar provision.
      The conference agreement includes a provision, section 
122, as proposed by the House, which states the recipients of 
equipment or products purchased with funds provided in this Act 
should be notified that they must purchase American-made 
equipment and products. The Senate bill contained no similar 
provision.
      The conference agreement includes a provision renumbered 
section 123, as proposed by the Senate, permitting the transfer 
of funds from Family Housing Construction accounts to the 
Family Housing Improvement Fund. The House bill contained a 
similar provision with additional language permitting the 
transfer of funds from unaccompanied housing projects in the 
Military Construction accounts to the Family Housing 
Improvement Fund to support barracks privatization. Without 
prejudice to the concept, the conferees agree to delete 
language as proposed by the House allowing the service 
components to intermingle family housing and unaccompanied 
housing funds for the purpose of privatizing barracks projects. 
Rather than authorizing these expenditures, the conferees 
prefer to wait for policy guidance from the authorizing 
committees.
      Areas of concern, however, are the unknown consequences 
of co-mingling these funds to the integrity of the audit trail. 
Specifically, the conferees are concerned that the Department 
of Defense and Congress must be able to clearly identify and 
track the financial advantages of privatizing unaccompanied 
barracks versus the traditional military construction approach. 
Especially during this pilot program, a merger of family 
housing and unaccompanied housing funding would not allow for a 
true comparison. Without that analysis, the Congress will not 
be able to determine the best approach to provide funds for 
unaccompanied housing.
      The conference agreement includes a provision renumbered 
section 124, as proposed by the Senate, to prohibit the 
obligation of funds for Partnership for Peace programs in the 
New Independent States of the former Soviet Union. The House 
bill contained no similar provision. The Administration 
requested eliminating this limitation on providing NATO 
Security Investment Program (NSIP) funds for non-NATO countries 
that participate in Partnership for Peace programs. The 
conferees are concerned that NSIP funds are already 
oversubscribed and that expanding the scope of the program 
beyond NATO membership would compound an already serious 
problem. However, the conferees agree that the matter can be 
re-addressed should the Department have compelling and specific 
reasons to make NSIP funds available beyond the alliance.
      The conference agreement includes a provision renumbered 
section 125, as proposed by the House and the Senate, which 
requires the Secretary of Defense to notify Congressional 
Committees sixty days prior to issuing a solicitation for a 
contract with the private sector for military family housing.
      The conference agreement includes a provision renumbered 
section 126, as proposed by the Senate, which provides transfer 
authority from the Base Realignment and Closure (BRAC) account 
to the Homeowners Assistance Program. The House bill contained 
a similar provision with additional language providing transfer 
authority from the operation and maintenance accounts in the 
Department of Defense Appropriations Bill to the Homeowners 
Assistance Program.
      The conference agreement includes a provision renumbered 
section 127, as proposed by the Senate, regarding funding for 
operation and maintenance of general officer quarters. The 
House provision did not authorize after-the-fact notification 
for costs associated with environmental remediation.
      The conference agreement includes a provision renumbered 
section 128, as proposed by the House, authorizing the use of 
private funds for the construction, improvement, repair, and 
maintenance of historic residences at 8th and I Marine Barracks 
in Washington, D.C. The conferees agree to modify the provision 
by changing the authorization expiration from September 30, 
2006 to September 30, 2004. The conferees direct the Secretary 
of the Navy to submit a report no later than February 28, 2003, 
outlining: (1) the current status of renovation efforts at 8th 
and I; (2) the total funds expended to date on renovation 
efforts (appropriated funds and private funds); (3) the current 
balance of the Friends of the Home of the Commandant's Fund, 
Fund activities to date, and future activities planned for the 
Fund; and (4) the overall projected cost of the renovation 
efforts at 8th and I.
      The conference agreement includes a provision renumbered 
section 129, as proposed by the House, which limits funds from 
being transferred from this appropriation measure into any new 
instrumentality without authority from an appropriation Act. 
The Senate bill contained no similar provision.
      The conference agreement includes a provision renumbered 
section 130, as proposed by the House, which transfers amounts 
appropriated for a physical fitness center at Camp Kyle, Korea, 
to a similar project at Camp Bonifas, Korea. The Senate bill 
contained no similar provision.
      The conference agreement includes a provision renumbered 
section 131, as proposed by the Senate, which directs the 
Department of Defense to accurately reflect the cost of 
environmental remediation activities in its future budget 
submissions for the Base Realignment and Closure (BRAC) 
account. The House bill contained no similar provision.
      Those general provisions not included in the conference 
agreement are as follows:
      The conference agreement deletes the House provision 
rescinding funds from various accounts to reflect savings from 
favorable foreign currency fluctuations.
      The conference agreement deletes the House provision 
limiting funds from being expended to prepare conveyance 
documents at the former Fort Ord in California.
      The conference agreement deletes the House provision 
limiting funds provided in this Act from being used to relocate 
the headquarters of U.S. Army, South.
      The conference agreement deletes Senate sections 127 
through 131. The projects provided in these provisions were 
considered within the full scope of projects in conference. 
Projects included in the conference agreement are provided in 
the state list accompanying this report.


                   CONFERENCE TOTAL--WITH COMPARISONS

      The total new budget (obligational) authority for the 
fiscal year 2003 recommended by the Committee of Conference, 
with comparisons to the fiscal year 2002 amount, the 2003 
budget estimates, and the House and Senate bills for 2003 
follows:

                        [In thousands of dollars]

New budget (obligational) authority, fiscal year 2002...     $10,604,400
Budget estimates of new (obligational) authority, fiscal 
    year 2003...........................................        9,664,04
House bill, fiscal year 2003............................      10,083,000
Senate bill, fiscal year 2003...........................      10,622,000
Conference agreement, fiscal year 2003..................      10,499,000
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      2002..............................................        -105,400
    Budget estimates of new (obligational) authority, 
      fiscal year 2003..................................        +834,959
    House bill, fiscal year 2003........................        +416,000
    Senate bill, fiscal year 2003.......................        -123,000

                                   David L. Hobson,
                                   James T. Walsh,
                                   Dan Miller,
                                   Robert Aderholt,
                                   Kay Granger,
                                   Virgil H. Goode, Jr.,
                                   Joe Skeen,
                                   David Vitter,
                                   C.W. Bill Young,
                                   John W. Olver,
                                   Chet Edwards,
                                   Sam Farr,
                                   Allen Boyd,
                                   Norman D. Dicks,
                                   David R. Obey,
                                 Managers on the Part of the House.

                                   Dianne Feinstein,
                                   Daniel K. Inouye,
                                   Tim Johnson,
                                   Mary L. Landrieu,
                                   Harry Reid,
                                   Robert C. Byrd,
                                   Kay Bailey Hutchison,
                                   Conrad Burns,
                                   Larry Craig,
                                   Mike DeWine,
                                   Ted Stevens,
                                Managers on the Part of the Senate.