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108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-342
======================================================================
 
 MAKING APPROPRIATIONS FOR MILITARY CONSTRUCTION, FAMILY HOUSING, AND 
  BASE REALIGNMENT AND CLOSURE FOR THE DEPARTMENT OF DEFENSE FOR THE 
     FISCAL YEAR ENDING SEPTEMBER 30, 2004, AND FOR OTHER PURPOSES

                                _______
                                

                November 4, 2003.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 2559]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2559) ``making appropriations for military construction, family 
housing, and base realignment and closure for the Department of 
Defense for the fiscal year ending September 30, 2004, 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, 2004, and for other purposes, 
namely:

                      Military Construction, Army

                        (INCLUDING RESCISSIONS)

    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, $1,448,239,000, to remain available until 
September 30, 2008: Provided, That of this amount, not to 
exceed $126,833,000 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'' under Public Law 107-249, 
$137,850,000 are rescinded: Provided further, That of the funds 
appropriated for ``Military Construction, Army'' under Public 
Law 107-64, $24,000,000 are rescinded: Provided further, That 
of the funds appropriated for ``Military Construction, Army'' 
under Public Law 106-246, $17,415,000 are rescinded: Provided 
further, That of the funds appropriated for ``Military 
Construction, Army'' under Public Law 106-52, $4,350,000 are 
rescinded.

                      Military Construction, Navy

                        (INCLUDING RESCISSIONS)

    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, $1,238,458,000, to remain 
available until September 30, 2008: Provided, That of this 
amount, not to exceed $71,001,000 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'' under Public Law 107-249, $27,213,000 are 
rescinded: Provided further, That of the funds appropriated for 
``Military Construction, Navy'' under Public Law 107-64, 
$18,409,000 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, $1,067,751,000, to remain available until 
September 30, 2008: Provided, That of this amount, not to 
exceed $95,778,000 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 Public Law 107-249, $23,000,000 are rescinded.

                  Military Construction, Defense-Wide

              (INCLUDING RESCISSION AND TRANSFER 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, $773,471,000, to 
remain available until September 30, 2008: 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 $65,130,000 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'' under Public Law 107-249, 
$72,309,000 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, 
$311,592,000, to remain available until September 30, 2008.

               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, 
$222,908,000, to remain available until September 30, 2008.

                  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, $88,451,000, to remain available until 
September 30, 2008.

                  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, 
$45,498,000, to remain available until September 30, 2008.

                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, $62,032,000, to remain 
available until September 30, 2008.

                   North Atlantic Treaty Organization

                      Security Investment Program

                         (INCLUDING RESCISSION)

    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, $169,300,000, to remain available until 
expended: Provided, That of the funds appropriated for ``North 
Atlantic Treaty Organization Security Investment Program'' 
under Public Law 107-249, $8,000,000 are rescinded.

                   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, 
$383,591,000, to remain available until September 30, 2008: 
Provided, That of the funds appropriated for ``Family Housing 
Construction, Army'' under Public Law 107-249, $94,151,000 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, $1,033,026,000.

           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, $184,193,000, to remain available until September 30, 
2008: Provided, That of the funds appropriated for ``Family 
Housing Construction, Navy and Marine Corps'' under Public Law 
107-249, $40,508,000 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, $835,078,000.

                 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, 
$657,065,000, to remain available until September 30, 2008: 
Provided, That of the funds appropriated for ``Family Housing 
Construction, Air Force'' under Public Law 107-249, $19,347,000 
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, $816,074,000.

               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, $350,000, to remain available until 
September 30, 2008.

         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, $49,440,000.

         Department of Defense Family Housing Improvement Fund

                         (INCLUDING RESCISSION)

    For the Department of Defense Family Housing Improvement 
Fund, $300,000, 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: Provided, That of funds available in the ``Family 
Housing Improvement Fund'', $9,692,000 are rescinded.

                  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), $370,427,000, 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.

                          (TRANSFER OF FUNDS)

    Sec. 121. 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. 122. 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. 123. (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. 124. 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. 125. 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. 126. 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. 127. No funds appropriated in this Act under the 
heading ``North Atlantic Treaty Organization Security 
Investment Program'', and no funds appropriated for any fiscal 
year before fiscal year 2004 for that program that remain 
available for obligation, may be obligated or expended for the 
conduct of studies of missile defense.
    Sec. 128. (a) Commission on Review of Overseas Military 
Facility Structure of the United States.--(1) There is 
established the Commission on the Review of the Overseas 
Military Facility Structure of the United States (in this 
section referred to as the ``Commission'').
    (2)(A) The Commission shall be composed of eight members of 
whom--
            (i) 2 shall be appointed by the Majority Leader of 
        the Senate;
            (ii) 2 shall be appointed by the Minority Leader of 
        the Senate;
            (iii) 2 shall be appointed by the Speaker of the 
        House of Representatives; and
            (iv) 2 shall be appointed by the Minority Leader of 
        the House of Representatives.
    (B) Individuals appointed to the Commission shall have 
significant experience in the national security or foreign 
policy of the United States.
    (C) Appointments of the members of the Commission shall be 
made not later than 45 days after the date of the enactment of 
this Act.
    (3) Members shall be appointed for the life of the 
Commission. Any vacancy in the Commission shall not affect its 
powers, but shall be filled in the same manner as the original 
appointment.
    (4) Not later than 30 days after the date on which all 
members of the Commission have been appointed, the Commission 
shall hold its first meeting.
    (5) The Commission shall meet at the call of the Chairman.
    (6) A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold 
hearings.
    (7) The Commission shall select a Chairman and Vice 
Chairman from among its members.
    (b) Duties.--(1) The Commission shall conduct a thorough 
study of matters relating to the military facility structure of 
the United States overseas.
    (2) In conducting the study, the Commission shall--
            (A) assess the number of forces required to be 
        forward based outside the United States;
            (B) examine the current state of the military 
        facilities and training ranges of the United States 
        overseas for all permanent stations and deployed 
        locations, including the condition of land and 
        improvements at such facilities and ranges and the 
        availability of additional land, if required, for such 
        facilities and ranges;
            (C) identify the amounts received by the United 
        States, whether in direct payments, in-kind 
        contributions, or otherwise, from foreign countries by 
        reason of military facilities of the United States 
        overseas;
            (D) assess whether or not the current military 
        basing and training range structure of the United 
        States overseas is adequate to meet the current and 
        future mission of the Department of Defense, including 
        contingency, mobilization, and future force 
        requirements;
            (E) assess the feasibility and advisability of the 
        closure or realignment of military facilities of the 
        United States overseas, or of the establishment of new 
        military facilities of the United States overseas; and
            (F) consider or assess any other issue relating to 
        military facilities of the United States overseas that 
        the Commission considers appropriate.
    (3)(A) Not later than December 31, 2004, the Commission 
shall submit to the President and Congress a report which shall 
contain a detailed statement of the findings and conclusions of 
the Commission, together with its recommendations for such 
legislation and administrative actions as it considers 
appropriate.
    (B) In addition to the matters specified in subparagraph 
(A), the report shall also include a proposal by the Commission 
for an overseas basing strategy for the Department of Defense 
in order to meet the current and future mission of the 
Department.
    (c) Powers.--(1) The Commission may hold such hearings, sit 
and act at such times and places, take such testimony, and 
receive such evidence as the Commission considers advisable to 
carry out this section.
    (2) The Commission may secure directly from any Federal 
department or agency such information as the Commission 
considers necessary to carry out this section. Upon request of 
the Chairman of the Commission, the head of such department or 
agency shall furnish such information to the Commission.
    (3) Upon request of the Commission, the Administrator of 
General Services shall provide to the Commission, on a 
reimbursable basis, the administrative support necessary for 
the Commission to carry out its duties under this section.
    (4) The Commission may use the United States mails in the 
same manner and under the same conditions as other departments 
and agencies of the Federal Government.
    (5) The Commission may accept, use, and dispose of gifts or 
donations of services or property.
    (d) Personnel Matters.--(1) Each member of the Commission 
who is not an officer or employee of the Federal Government 
shall be compensated at a rate equal to the daily equivalent of 
the annual rate of basic pay prescribed for level IV of the 
Executive Schedule under section 5315 of title 5, United States 
Code, for each day (including travel time) during which such 
member is engaged in the performance of the duties of the 
Commission under this section. All members of the Commission 
who are officers or employees of the United States shall serve 
without compensation in addition to that received for their 
services as officers or employees of the United States.
    (2)(A) Members of the Commission shall be allowed travel 
expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from 
their homes or regular places of business in the performance of 
services for the Commission under this section.
    (B) Members and staff of the Commission may receive 
transportation on military aircraft to and from the United 
States, and overseas, for purposes of the performance of the 
duties of the Commission to the extent that such transportation 
will not interfere with the requirements of military 
operations.
    (3)(A) The Chairman of the Commission may, without regard 
to the civil service laws and regulations, appoint and 
terminate an executive director and such other additional 
personnel as may be necessary to enable the Commission to 
perform its duties under this section. The employment of an 
executive director shall be subject to confirmation by the 
Commission.
    (B) The Commission may employ a staff to assist the 
Commission in carrying out its duties. The total number of the 
staff of the Commission, including an executive director under 
subparagraph (A), may not exceed 12.
    (C) The Chairman of the Commission may fix the compensation 
of the executive director and other personnel without regard to 
chapter 51 and subchapter III of chapter 53 of title 5, United 
States Code, relating to classification of positions and 
General Schedule pay rates, except that the rate of pay for the 
executive director and other personnel may not exceed the rate 
payable for level V of the Executive Schedule under section 
5316 of such title.
    (4) Any employee of the Department of Defense, the 
Department of State, or the General Accounting Office may be 
detailed to the Commission without reimbursement, and such 
detail shall be without interruption or loss of civil service 
status or privilege.
    (5) The Chairman of the Commission may procure temporary 
and intermittent services under section 3109(b) of title 5, 
United States Code, at rates for individuals which do not 
exceed the daily equivalent of the annual rate of basic pay 
prescribed for level V of the Executive Schedule under section 
5316 of such title.
    (e) Security.--(1) Members and staff of the Commission, and 
any experts and consultants to the Commission, shall possess 
security clearances appropriate for their duties with the 
Commission under this section.
    (2) The Secretary of Defense shall assume responsibility 
for the handling and disposition of any information relating to 
the national security of the United States that is received, 
considered, or used by the Commission under this section.
    (f) Termination.--The Commission shall terminate 45 days 
after the date on which the Commission submits its report under 
subsection (b).
    (g) Funding.--(1) Of the amount appropriated by this Act, 
$3,000,000 shall be available to the Commission to carry out 
this section.
    (2) The amount made available by paragraph (1) shall remain 
available, without fiscal year limitation, until September 
2005.
    This Act may be cited as the ``Military Construction 
Appropriations Act, 2004''.
      And the Senate agree to the same.

                                   Joe Knollenberg,
                                   James T. Walsh,
                                   Robert B. Aderholt,
                                   Kay Granger,
                                   Virgil Goode,
                                   David Vitter,
                                   Jack Kingston,
                                   Ander Crenshaw,
                                   Bill Young,
                                   Chet Edwards,
                                   Sam Farr,
                                   Allen Boyd,
                                   Sanford D. Bishop, Jr.,
                                   Norman Dicks,
                                   David Obey,
                                 Managers on the Part of the House.

                                   Kay Bailey Hutchison,
                                   Conrad Burns,
                                   Larry E. Craig,
                                   Mike DeWine,
                                   Sam Brownback,
                                   Ted Stevens,
                                   Dianne Feinstein,
                                   Daniel K. Inouye,
                                   Tim Johnson,
                                   Mary Landrieu,
                                   Robert C. Byrd,
                                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. 2559) making 
appropriations 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 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. 1357). 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 108-173 and Senate 
Report 108-82 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.
      Army National Guard and Reserve Mobilization 
Facilities.--The conferees are concerned about the growing 
demand being placed upon mobilization facilities required to 
support Army National Guard and Reserve personnel. The 
conferees, therefore, direct the Chief of Staff of the Army to 
submit a report no later than April 15, 2004, which assesses 
the current status of Army National Guard and Reserve 
mobilization facilities and describes their adequacy to house, 
train, prepare, mobilize and demobilize soldiers. In particular 
the report should assess and make recommendations regarding 
mobilization centers' capacity to billet soldiers held for 
extended periods of time including for medical care and 
evaluation purposes. Likewise, the report should evaluate and 
make recommendations to improve the management of billeting 
resources that support mobilization.
      Audit Trail Documents.--The conferees direct the 
Department to reinstate, beginning in March 2004, the semi-
annual submission of audit trail documents as directed in House 
Report 99-275. These reports shall include line item detail on 
projects as budgeted in the Construction Annex and also include 
line item detail on projects funded under Minor Construction 
and Family Housing Improvements. The semi-annual reports shall 
include, but not be limited to, the following: (a) project 
amount (appropriation); (b) changes due to formal and below 
threshold reprogrammings; and (c) the current working estimate 
for each project. The audit trail documents shall reflect 
projects from fiscal year 2000 forward.
      Barracks Privatization.--The conferees agree that the 
Department should implement without delay the recommendations 
in General Accounting Office (GAO) report ``Military Housing: 
Opportunities That Should Be Explored to Improve Housing and 
Reduce Costs for Unmarried Junior Service members, GAO-03-602, 
June 10, 2003.'' One of the findings of the GAO report is that 
the Department of Defense (DoD) and the services had not fully 
explored barracks privatization to determine whether the 
concept could provide a better economic value to the government 
than the use of military construction financing. As indicated 
in the FY 2003 Conference Report, the conferees continue to 
support the barracks privatization initiative and look forward 
to the Department of Navy report on lessons learned after 
implementation of three pilot projects (one in Norfolk, 
Virginia, and one each in San Diego and Camp Pendleton, 
California). The conferees continue to be concerned about the 
unknown consequences of commingling barracks privatization 
funds with family housing funds and the resulting integrity of 
the fiscal audit trail. Specifically, the conferees are 
concerned that the DoD and Congress must be able to clearly 
identify and track the financial advantages of privatizing 
unaccompanied barracks versus the traditional military 
construction approach. Merging the family housing and 
unaccompanied housing accounts cannot be endorsed by the 
conferees until further clarification of the project scope, 
debt structure, and impact on funding requirements can be 
presented.
      Family Housing Operation and Maintenance: Financial 
Management.--The conferees agree to continue the restriction on 
the transfer of funds among subaccounts in 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.
      Family Housing Operation and Maintenance Reductions.--The 
conferees are concerned that the assumptions and methods 
underlying the budget request for family housing operation and 
maintenance accounts are not adequately explained by the 
service components. To better evaluate the efficacy of these 
estimates, and to more fully understand this account and its 
subaccounts, the conferees direct the GAO to conduct a study on 
the assumptions and methods utilized by each service component 
to develop their respective estimates, and to report to 
Congress no later than April 15, 2004.
      Because of apparent miscalculations in estimating 
requirements, the conferees agree to reduce $10,000,000 each 
from the Army and Air Force operation and maintenance accounts. 
In addition, the conferees agree to reduce $17,700,000 from the 
Navy account, of which $7,700,000 is from the management 
account. Unlike the other service components, the Navy failed 
to adequately account for the reduction in housing units due to 
the public/private venture initiative.
      The conferees are extremely concerned about transfers 
between the various family housing operation and maintenance 
subaccounts. Therefore, in addition to the above GAO study, the 
conferees direct GAO to review the transfer of funds between 
these accounts, including amounts over and under the 
established threshold and to report to Congress no later than 
April 15, 2004.
      Housing Privatization: Rescission of Funds and 
Notification Requirements of Reductions in Funding.--The 
conferees agree to rescind $48,099,000 from Family Housing 
Construction accounts to reflect savings from projects where 
estimated equity contributions were unnecessary. Section 2853 
of Title 10, United States Code, requires congressional 
notification of intent to cancel or reduce the scope of a 
previously approved military construction or family housing 
project by more than 25 percent. The conferees note this 
requirement applies to funds appropriated in the family housing 
improvement accounts for the purpose of privatizing military 
family housing. The Service Secretaries are, therefore, 
required to submit a 21-day prior notification of intentto 
cancel or reduce the amount previously appropriated for a specific 
housing privatization project by more than 25 percent. The notification 
shall include the amount of the reduction and the reasons therefor.
      Clarification of Housing Privatization Reporting 
Requirements.--In accordance with current law, the Service 
Secretaries are required to submit a 30-day prior notification 
of each contract for the acquisition or construction of family 
housing units that the Secretary proposes to solicit under the 
housing privatization authorities and for each conveyance or 
lease proposed under Section 2878 of Title 10, United States 
Code.
      Overseas Master Plans.--The conferees direct the 
Department to prepare comprehensive master plans for overseas 
military infrastructure and to submit the plans with the fiscal 
year 2006 budget submission instead of the fiscal year 2005 
budget submission as proposed by the Senate. In addition, the 
conferees agree a report on the status of the comprehensive 
plans and their implementation is to be submitted with each 
yearly military construction budget submission through fiscal 
year 2009 instead of fiscal year 2008 as proposed by the 
Senate. Master plans are valuable planning documents. 
Therefore, the conferees may extend this requirement to 
installations in the continental United States.
      Perchlorate.--The conferees direct the Department to 
submit a report identifying the sources of perchlorate on Base 
Realignment and Closure (BRAC) properties and the plans to 
remediate perchlorate contamination on these sites no later 
than April 30, 2004, instead of March 30, 2004 as proposed by 
the Senate.

                      MILITARY CONSTRUCTION, ARMY

                        (INCLUDING RESCISSIONS)

      The conference agreement appropriates $1,448,239,000 for 
Military Construction, Army, instead of $1,533,660,000 as 
proposed by the House and $1,255,155,000 as proposed by the 
Senate. Within this amount, the conference agreement earmarks 
$126,833,000 for study, planning, design, architect and 
engineer services, and host nation support instead of 
$122,710,000 as proposed by the House and $134,645,000 as 
proposed by the Senate. The conference agreement rescinds 
$183,615,000 from funds previously provided to this account as 
proposed by the House and Senate. The rescissions include the 
following amounts:

----------------------------------------------------------------------------------------------------------------
         Public Law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
  Public Law 107-249 (FY 2003):
    Germany: Bamberg................  Child Development            -$7,000,000      -$7,000,000      -$7,000,000
                                       Center.
    Germany: Bamberg................  Barracks Complex--           -10,200,000      -10,200,000      -10,200,000
                                       Warner.
    Germany: Coleman Barracks.......  Upgrade Access Control        -1,350,000       -1,350,000       -1,350,000
                                       Points.
    Germany: Darmstadt..............  Modified Record Fire          -3,500,000       -3,500,000       -3,500,000
                                       Range.
    Germany: Mannheim...............  Barracks Complex--           -42,000,000      -42,000,000      -42,000,000
                                       Coleman.
    Germany: Schweinfurt............  Central Vehicle Wash          -2,000,000       -2,000,000       -2,000,000
                                       Facility.
    Korea: Camp Bonifas.............  Physical Fitness              -4,350,000       -4,350,000                0
                                       Training Center.
    Korea: Camp Castle..............  Physical Fitness              -6,800,000       -6,800,000       -6,800,000
                                       Training Center.
    Korea: Camp Hovey...............  Barracks Complex.......      -25,000,000      -25,000,000      -25,000,000
    Korea: K-16 Airfield............  Barracks Complex.......      -40,000,000      -40,000,000      -40,000 000
                                                              --------------------------------------------------
      Subtotal......................  .......................     -142,200,000     -142,200,000     -137,850,000
                                                              ==================================================
  Public Law 107-64 (FY 2002):
    Korea: Camp Hovey...............  Barracks Complex--Bid        -10,770,000      -10,770,000      -10,770,000
                                       Savings.
    Korea: Camp Stanley.............  Barracks Complex--Bid        -13,230,000      -13,230,000      -13,230,000
                                       Savings.
                                                              --------------------------------------------------
      Subtotal......................  .......................      -24,000,000      -24,000,000      -24,000,000
                                                              ==================================================
Public Law 106-246 (FY 2001): Korea:  Barracks Complex.......      -17,415,000      -17,415,000      -17,415,000
 Camp Page.
                                                              --------------------------------------------------
      Subtotal......................  .......................      -17,415,000      -17,415,000      -17,415,000
                                                              ==================================================
Public Law 106-52 (FY 2000): Korea:   Physical Fitness                       0                0       -4,350,000
 Camp Bonifas.                         Training Center.
                                                              --------------------------------------------------
      Subtotal......................  .......................                0                0       -4,350,000
                                                              ==================================================
      Total.........................  .......................     -183,615,000     -183,615,000     -183,615,000
----------------------------------------------------------------------------------------------------------------

      Alabama--Anniston Army Depot: Powertrain Maintenance 
Facility.--The conferees agree that within funds provided for 
planning and design in this account, $1,000,000 shall be made 
available to design this facility instead of $1,050,000 in 
minor construction funds to construct a general instruction 
building at Anniston Army Depot, Alabama as proposed by the 
House.
      Korea--Camp Humphreys: Barracks.--The administration has 
informed Congress of its plans to move substantial numbers of 
United States forces in Korea to bases south of their present 
locations, with Camp Humphreys being the primary consolidation 
point for the shift of U.S. Army combat forces and for 
personnel currently stationed at Yongsan Garrison. To support 
this transformation, the May 1, 2003 budget amendment requested 
that $212,000,000 in FY 2004 and prior year construction 
projects intended for other bases in Korea be moved to Camp 
Humphreys; extensive additional construction at the base is 
planned for future fiscal years. However, according to U.S. 
Forces Korea officials, no master plan exists for construction 
at Camp Humphreys, and cost-sharing arrangements to fund the 
move of U.S. forces are still under negotiation between the 
governments of the United States and the Republic of Korea.
      While the conferees support the Defense Department's 
overall plan for the relocation of U.S. forces in Korea and 
have provided funding in this appropriations bill for two 
projects at Camp Humphreys, they are concerned that planning 
for this significant undertaking is insufficiently developed at 
this time. Though planning may proceed, construction may not 
proceed on the two barracks at Camp Humphreys provided for in 
this Act until:
            (1) A master facilities plan is developed for the 
        entire Camp Humphreys installation which accommodates 
        the anticipated relocation of U.S. forces to that 
        facility; and
            (2) Cost-sharing arrangements for the relocation of 
        U.S. forces are agreed to by the governments of the 
        United States and the Republic of Korea.
      Upon completion, the master facilities plan should be 
presented to the Military Construction Subcommittees.

                      MILITARY CONSTRUCTION, NAVY

                        (INCLUDING RESCISSIONS)

      The conference agreement appropriates $1,238,458,000 for 
Military Construction, Navy, instead of $1,211,077,000 as 
proposed by the House and $1,195,659,000 as proposed by the 
Senate. Within this amount, the conference agreement earmarks 
$71,001,000 for study, planning, design, architect and engineer 
services instead of $65,612,000 as proposed by the House and 
$77,283,000 as proposed by the Senate. The conference agreement 
rescinds $45,622,000 from funds previously provided to this 
account instead of $39,322,000 as proposed by the House and 
Senate. The rescissions include the following amounts:

----------------------------------------------------------------------------------------------------------------
         Public Law/location                Project title            House           Senate         Conference
----------------------------------------------------------------------------------------------------------------
  Public Law 107-249 (FY 2003):
    North Carolina: Cherry Point....  T-56 Jet Engine Test          -5,942,000       -5,942,000       -5,942,000
                                       Cell.
     Greece: Larissa................  Bachelor Enlisted             -6,592,000       -6,592,000       -6,592,000
                                       Quarters.
     Iceland: Keflavik NAS..........  Combined Dining              -14,679,000      -14,679,000      -14,679,000
                                       Facility.
                                                              --------------------------------------------------
       Subtotal.....................  .......................      -27,213,000      -27,213,000      -27,213,000
                                                              ==================================================
  Public Law 107-64 (FY 2002):
    California: El Centro NAF.......  Transient Quarters--Bid                0                0       -2,100,000
                                       Savings.
    Guam: Guam NSA..................  Bachelor Enlisted Qtrs--               0                0       -4,200,000
                                       Bid Savings.
     Greece: Larissa................  Bachelor Enlisted            -12,109,000      -12,109,000      -12,109,000
                                       Quarters.
                                                              --------------------------------------------------
      Subtotal......................  .......................      -12,109,000      -12,109,000      -18,409,000
                                                              ==================================================
      Total.........................  .......................      -39,322,000      -39,322,000      -45,622,000
----------------------------------------------------------------------------------------------------------------

                    MILITARY CONSTRUCTION, AIR FORCE

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $1,067,751,000 for 
Military Construction, Air Force, instead of $896,136,000 as 
proposed by the House and $1,056,377,000 as proposed by the 
Senate. Within this amount, the conference agreement earmarks 
$95,778,000 for study, planning, design, architect and engineer 
services instead of $80,543,000 as proposed by the House and 
$112,075,000 as proposed by the Senate. Though not included in 
the House or Senate bills, the conference agreement rescinds 
$23,000,000 from funds provided to this account in Public Law 
107-249 to reflect a classified project that is no longer 
needed.
       Alaska--Eielson Air Force Base: Replace Working Dog 
Kennel.--The conferees agree that within funds provided for 
unspecified minor construction in this account, $1,400,000 
shall be made available to construct this facility instead of 
construction of a kennel at Elmendorf Air Force Base, Alaska as 
proposed by the Senate.
      California--Vandenberg Air Force Base: Consolidated 
Fitness Center.--Although the conferees were unable to fund 
this project due to severe funding constraints, the conferees 
recognize the importance and necessity of this facility and 
strongly urge the Secretary of Defense to include the project 
in the President's fiscal year 2005 budget submission for the 
Air Force.
      Wyoming--F.E. Warren Air Force Base: Stormwater Drainage 
System.--Although the conferees were unable to fund this 
project due to severe funding constraints, the conferees 
recognize the importance and necessity of this project and 
strongly urge the Secretary of Defense to include the project 
in the President's fiscal year 2005 budget submission for the 
Air Force.

                  MILITARY CONSTRUCTION, DEFENSE-WIDE

              (INCLUDING RESCISSION AND TRANSFER OF FUNDS)

      The conference agreement appropriates $773,471,000 for 
Military Construction, Defense-wide, instead of $813,613,000 as 
proposed by the House and $712,567,000 as proposed by the 
Senate. Within this amount, the conference agreement earmarks 
$65,130,000 for study, planning, design, architect and engineer 
services instead of $63,884,000 as proposed by the House and 
$70,881,000 as proposed by the Senate. The conference agreement 
rescinds $72,309,000 from funds previously provided to this 
account instead of $32,680,000 as proposed by the House and 
Senate. The rescission includes the following amounts:

----------------------------------------------------------------------------------------------------------------
         Public Law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
  Public Law 107-249 (FY 2003):
    Germany: Spangdahlem AB.........  Elementary School               -997,000         -997,000         -997,000
                                       Classroom Addition.
    Germany: Spangdahlem AB.........  Hospital Replacement...                0                0      -39,629,000
    Korea: Seoul....................  Middle School                -31,683,000      -31,683,000      -31,683,000
                                       Replacement.
                                                              --------------------------------------------------
      Total.........................  .......................      -32,680,000      -32,680,000      -72,309,000
----------------------------------------------------------------------------------------------------------------

      Chemical Demilitarization.--As proposed by the House, the 
conferees include funding for the construction of chemical 
demilitarization facilities in the ``Military Construction, 
Defense-wide'' account. The budget request proposed 
consolidating the military construction component of the 
Chemical Demilitarization program in the ``Chemical Agents 
Munitions Defense'' account funded in the Defense 
Appropriations bill. In the future, the Department is directed 
to request military construction requirements for this program 
under the ``Military Construction, Defense-wide'' account.
      Energy Conservation Investment Program: Renewable Energy 
Assessment.--The conferees direct the Department to submit a 
final report regarding an assessment of the regional potential 
of renewable energy generation, transmission, and distribution 
by industry on or near Department of Defense installations in 
the United States no later than November 30, 2004, instead of 
July 31, 2004 as proposed by the Senate.
      Energy Conservation Investment Program: Overseas 
Projects.--Due to uncertainties regarding the future of 
overseas facilities, the Department is directed to obligate no 
funds from the Energy Conservation Investment Program to 
overseas projects.

               MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

      The conference agreement appropriates $311,592,000 for 
Military Construction, Army National Guard, instead of 
$208,033,000 as proposed by the House and $304,085,000 as 
proposed by the Senate.
      California--Sacramento: Organizational Maintenance
Shop.--The conferees agree that within funds provided for 
planning and design in this account, $306,000 shall be made 
available to design this facility instead of to design a 
readiness center as proposed by the Senate.
      Colorado--Fort Carson: Centennial Training Site (Phases 
II and III).--Of the funds provided for planning and design in 
this account, the conferees direct that not less than 
$3,000,000 be made available to design this facility.
      Georgia--Hunter Army Airfield: Readiness Center.--The 
conferees encourage the Army National Guard to include this 
project in the fiscal year 2005 budget request instead of an 
Army Aviation Support Facility at Hunter Army Airfield as 
proposed by the House.
      Idaho--Gowen Field: TASS Barracks.--The conferees agree 
that within funds provided for planning and design in this 
account, $1,140,000 shall be made available to design this 
facility instead of for minor construction as proposed by the 
Senate.
      Iowa--Fort Dodge: Readiness Center.--The conferees agree 
that within funds provided for unspecified minor construction, 
$1,500,000 shall be made available to construct this facility 
instead of constructing a readiness center at Camp Dodge, Iowa 
as proposed by the Senate.
      Missouri--Fort Leonard Wood: Weapons of Mass Destruction 
(WMD) Responder Training Facility.--Funding was allocated in 
fiscal year 2003 to design this new training facility. Fort 
Leonard Wood is providing individual and certification training 
for Weapons of Mass Destruction Civil Support Teams and DOD 
Installation Emergency Responders. There are currently no 
dedicated facilities to provide this training. Training of 
Chemical, Biological, Radiological, and Nuclear Installation 
Support Teams, Rapid Response Teams, and Reconnaissance and 
Decontamination Teams for Civil Support has been directed. 
Construction of the facility is urgently needed to continue 
this critical homeland security training. The conferees, 
therefore, strongly urge the Army to advance this project in 
the fiscal year 2005 budget request.

               MILITARY CONSTRUCTION, AIR NATIONAL GUARD

      The conference agreement appropriates $222,908,000 for 
Military Construction, Air National Guard, instead of 
$77,105,000 as proposed by the House and $221,013,000 as 
proposed by the Senate.

                  MILITARY CONSTRUCTION, ARMY RESERVE

      The conference agreement appropriates $88,451,000 for 
Military Construction, Army Reserve, instead of $84,569,000 as 
proposed by the House and $73,979,000 as proposed by the 
Senate.

                  MILITARY CONSTRUCTION, NAVAL RESERVE

      The conference agreement appropriates $45,498,000 for 
Military Construction, Naval Reserve, instead of $38,992,000 as 
proposed by the House and $34,742,000 as proposed by the 
Senate.

                MILITARY CONSTRUCTION, AIR FORCE RESERVE

      The conference agreement appropriates $62,032,000 for 
Military Construction, Air Force Reserve, instead of 
$56,212,000 as proposed by the House and $57,426,000 as 
proposed by the Senate.

     NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

                         (INCLUDING RESCISSION)

      NATO Security Investment Program (NSIP).--The conferees 
agree to rescind $8,000,000 from prior appropriations due to 
the slow spend out rate of the program and the recurrence of 
carryover amounts.

                   FAMILY HOUSING CONSTRUCTION, ARMY

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $383,591,000 for 
Family Housing Construction, Army, instead of $409,191,000 as 
proposed by the House and the Senate. The conference agreement 
rescinds $94,151,000 from funds previously provided to this 
account instead of $52,300,000 as proposed by the House and 
Senate. The rescissions include the following amounts:

----------------------------------------------------------------------------------------------------------------
         Public Law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
  Public Law 107-249 (FY 2003):
    Hawaii: Schofield Barracks......  Privatize Family                       0                0      -21,000,000
                                       Housing.
    Virginia: Fort Belvoir..........  Privatize Family                       0                0       -8,700,000
                                       Housing.
    Germany: Darmstadt..............  Improve 48 units.......       -4,200,000       -4,200,000       -4,200,000
    Germany: Mannheim...............  Improve 72 units.......      -10,400,000      -10,400,000      -10,400,000
    Germany: Mannheim...............  Improve 60 units.......      -10,000,000      -10,000,000      -10,000,000
    Germany: Heidelberg.............  Improve 75 units.......                0                0      -12,151,000
    Germany: Schweinfurt............  Improve 234 units......       -7,600,000       -7,600,000       -7,600,000
    Germany: Vilseck................  Improve 36 units.......       -3,900,000       -3,900,000       -3,900,000
    Germany: Wuerzburg..............  Improve 136 units......      -11,200,000      -11,200,000      -11,200,000
    Korea: Yongsan..................  Improve 8 units........       -1,900,000       -1,900,000       -1,900,000
    Korea: Yongsan..................  Replace 10 units.......       -3,100,000       -3,100,000       -3,100,000
                                                              --------------------------------------------------
      Total.........................  .......................      -52,300,000      -52,300,000      -94,151,000
----------------------------------------------------------------------------------------------------------------

      Construction Improvements.--The conferees agree to reduce 
the amount provided for construction improvements in this 
account by $25,600,000 to reflect savings from two projects no 
longer required in Baumholder, Germany.

             FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

      The conference agreement appropriates $1,033,026,000 for 
Family Housing Operation and Maintenance, Army instead of 
$1,043,026,000 as proposed by the House and the Senate.
      As proposed by the House, the conferees agree that 
operation and maintenance funds should be authorized for one 
year rather than for two years as proposed by the Senate.

           FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

                         (INCLUDING RESCISSION)

      The conference agreement rescinds $40,508,000 from funds 
previously provided to this account instead of $3,585,000 as 
proposed by the House and Senate. The rescission includes the 
following amounts:

----------------------------------------------------------------------------------------------------------------
         Public Law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Public Law 107-249 (FY 2003):
    California Monterey NPGS........  Privatize Family                       0                0      -18,399,000
                                       Housing.
    Hawaii: Oahu....................  Privatize Family              -3,585,000       -3,585,000       -3,585,000
                                       Housing--Bid Savings.
    United Kingdom: Saint Mawgan....  Replace 62 units.......                0                0      -18,524,000
                                                              --------------------------------------------------
      Total.........................  .......................       -3,585,000       -3,585,000      -40,508,000
----------------------------------------------------------------------------------------------------------------

    FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND MARINE CORPS

      The conference agreement appropriates $835,078,000 for 
Family Housing Operation and Maintenance, Navy and Marine 
Corps, instead of $852,778,000 as proposed by the House and the 
Senate.
      As proposed by the House, the conferees agree that 
operation and maintenance funds should be authorized for one 
year rather than for two years as proposed by the Senate.

                 FAMILY HOUSING CONSTRUCTION, AIR FORCE

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $657,065,000 for 
Family Housing Construction, Air Force, as proposed by the 
House, instead of $657,026,000 as proposed by the Senate. The 
conference agreement rescinds $19,347,000 from funds previously 
provided to this account instead of $29,039,000 as proposed by 
the House and Senate. The rescission includes the following 
amounts:

----------------------------------------------------------------------------------------------------------------
         Public Law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Public Law 107-249 (FY 2003):         Improve Family Housing.      -19,347,000      -19,347,000      -19,347,000
 Germany Spangdahlem AB.
                                                              --------------------------------------------------
      Subtotal......................  .......................      -19,347,000      -19,347,000      -19,347,000
                                                              ==================================================
Public Law 105-237 (FY 1999):         Privatize Family              -9,692,000       -9,692,000                0
 Florida: Patrick AFB.                 Housing.
                                                              --------------------------------------------------
      Subtotal......................  .......................       -9,692,000       -9,692,000                0
                                                              ==================================================
      Total.........................  .......................      -29,039,000      -29,039,000      -19,347,000
----------------------------------------------------------------------------------------------------------------

      The House and Senate proposed rescinding $9,692,000 from 
this account for funds no longer required for a housing 
privatization project at Patrick Air Force Base, Florida. The 
Department, however, transferred these funds to the Family 
Housing Improvement Fund (FHIF) before their authorization 
expired. The conference agreement, therefore, rescinds this 
amount from the FHIF.

          FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

      The conference agreement appropriates $816,074,000 for 
Family Housing Operation and Maintenance, Air Force, instead of 
$826,074,000 as proposed by the House and $834,468,000 as 
proposed by the Senate.
      As proposed by the House, the conferees agree that 
operation and maintenance funds should be authorized for one 
year rather than for two years as proposed by the Senate.

         FAMILY HOUSING OPERATION AND MAINTENANCE, DEFENSE-WIDE

      As proposed by the House, the conferees agree that 
operation and maintenance funds should be authorized for one 
year rather than for two years as proposed by the Senate.

         DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

                         (INCLUDING RESCISSION)

      As discussed in the Family Housing Construction, Air 
Force account, the conference agreement rescinds $9,692,000 
from this account because it is no longer required for a 
housing privatization project at Patrick Air Force Base, 
Florida.

                  BASE REALIGNMENT AND CLOSURE ACCOUNT

      New York--Seneca Army Depot.--The conferees expect the 
Army to comply fully with environmental remediation and 
building maintenance requirements as required under the BRAC 
process at Seneca Army Depot. The conferees direct the Army to 
provide a report to the Military Construction Subcommittees by 
March 15, 2004, detailing the current status of cleanup at 
Seneca Army Depot, and to include a schedule for conveying the 
property to the local economic development authority.

                           GENERAL PROVISIONS

      The conference agreement includes general provisions 
(sections 101-122) that were not amended by either the House or 
Senate in their versions of the bill.
      The conference agreement includes a provision, section 
123, as proposed by 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 House bill contained no 
similar provision.
      The conference agreement includes a provision, renumbered 
section 124, as proposed by the House and the Senate, which 
provides transfer authority from the Base Realignment and 
Closure (BRAC) account to the Homeowners Assistance Program.
      The conference agreement includes a provision, renumbered 
section 125, as proposed by the House, regarding funding for 
operation and maintenance of General and Flag Officer Quarters 
(GFOQs) to no more than $35,000 per year without notification. 
The Senate bill contained a similar provision with additional 
language permitting the use of gift funds pursuant to 10 U.S.C. 
2601 for the maintenance and repair of GFOQs.
      The conference agreement includes a provision, renumbered 
section 126, as proposed by the House and the Senate, which 
limits funds from being transferred from this appropriation 
measure to any department, agency, or instrumentality of the 
United States Government without authority from an 
appropriation Act.
      The conference agreement includes a provision, section 
127, as proposed by the Senate, which prohibits funds 
appropriated for the NSIP from being obligated or expended for 
the purpose of missile defense studies. The House bill 
contained no similar provision. The conferees are concerned 
about the increased use of NSIP funds to finance studies rather 
than construction projects. The conferees, therefore, direct 
the Department to submit written notification to the Military 
Construction Appropriations Subcommittees 21 days prior to 
obligating NSIP funds for any study.
      The conference agreement includes a provision, section 
128, as proposed by the Senate, which establishes a commission 
to review the overseas military force structure and to provide 
a report of its findings to the President and Congress no later 
than December 31, 2004.
      Those general provisions not included in the conference 
agreement are as follows:
      The conference agreement deletes the House provision 
requiring the Secretary of Defense to certify and report to 
Congress that the United States and the Republic of Korea have 
entered into an agreement on the availability of land before 
obligating or expending funds made available in the bill for 
construction projects at Camp Humphreys, Korea. The Senate bill 
contained no similar provision.


                   Conference Total--With Comparisons

      The total new budget (obligational) authority for the 
fiscal year 2004 recommended by the Committee of Conference, 
with comparisons to the fiscal year 2003 amount, the 2004 
budget estimates, and the House and Senate bills for 2004 
follow:

                        [In thousands of dollars]

New budget (obligational) authority, fiscal year 2003...     $10,698,800
Budget estimates of new (obligational) authority, fiscal 
    year 2004...........................................       9,117,281
House bill, fiscal year 2004............................       9,196,000
Senate bill, fiscal year 2004...........................       9,196,000
Conference agreement, fiscal year 2004..................       9,316,000
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      2003..............................................      -1,382,800
    Budget estimates of new (obligational) authority, 
      fiscal year 2004..................................        +198,719
    House bill, fiscal year 2004........................        +120,000
    Senate bill, fiscal year 2004.......................        +120,000

                                   Joe Knollenberg,
                                   James T. Walsh,
                                   Robert B. Aderholt,
                                   Kay Granger,
                                   Virgil Goode,
                                   David Vitter,
                                   Jack Kingston,
                                   Ander Crenshaw,
                                   Bill Young,
                                   Chet Edwards,
                                   Sam Farr,
                                   Allen Boyd,
                                   Sanford D. Bishop, Jr.,
                                   Norman Dicks,
                                   David Obey,
                                 Managers on the Part of the House.

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