Military

                                  73 177                                 
                            107 th Congress                             
                                 Report                                 
                                                                             
                        HOUSE OF REPRESENTATIVES                        
                              1st Session                               
                                107 102                                 
       MAKING SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 
                       30, 2001, AND FOR OTHER PURPOSES                        
  June 19, 2001.--Committed to the Committee of the Whole House on the   
 State of the Union and ordered to be printed                            
  Mr. Young of Florida, from the Committee on Appropriations, submitted  
 the following                                                           
                                  REPORT                                 
                              together with                              
                     DISSENTING AND ADDITIONAL VIEWS                     
                         [To accompany H.R. 2216]                        
      The Committee on Appropriations submits the following report in      
   explanation of the accompanying bill making supplemental appropriations 
   for the fiscal year ending September 30, 2001, and for other purposes.  
                                      BILL HIGHLIGHTS                             
      The bill recommended by the Committee provides a net discretionary   
   supplemental appropriation of $6,544,580,000 for fiscal year 2001, and  
   is consistent with the provisions for fiscal year 2001 supplemental     
   appropriations of H. Con. Res. 83, the fiscal year 2002 budget          
   resolution. Total spending provided in the bill is $7,481,283,000       
   including $6,750,352,000 for national security requirements,            
   $2,168,931,000 for nondefense requirements, and $1,438,000,000 in       
   offsetting reductions. The bill includes $6,455,380,000 for the         
   Department of Defense to cover increased operating costs, as well as to 
   cover requirements for pay, support, training and quality of life for   
   military personnel. It also includes $288,472,000 for defense-related   
   requirements at the Department of Energy. The bill includes $389,200,000
   for disaster-related needs for the Corps of Engineers, Department of the
   Interior, and the Forest Service. Additionally, the Low Income Home     
   Energy Assistance Program would be supplemented by $300,000,000; the    
   Education for the Disadvantaged account would be supplemented by        
   $161,000,000, and the Coast Guard would receive $92,000,000 for         
   operating expenses. The bill also includes $115,776,000 million for the 
   implementation of the recently enacted tax rebate. Additional mandatory 
   appropriations totalling $936,413,000 are included for veterans'        
   benefits.                                                               
                                          TITLE I                                 
                                  NATIONAL SECURITY MATTERS                       
                                         CHAPTER 1                                
                              DEPARTMENT OF DEFENSE--MILITARY                     
                                     MILITARY PERSONNEL                           
      The supplemental request included $515,000,000 for functions funded  
   in title I, Military Personnel, of the Department of Defense            
   Appropriations Act. The Committee recommends $515,000,000. The following
   table summarizes the requested amounts and the Committee                
   recommendations.                                                        
                           [In thousands of dollars]                           
Program                                Request      Committee  recommendation    
Legislated Pay Entitlements            $116,000     $116,000                     
Basic Allowance for Housing Survey     210,000      210,000                      
Subsistence                            28,000       28,000                       
Reserve Training                       42,000       48,500                       
Officer Pay Table Reform               28,000       28,000                       
Permanent Change of Station Moves      58,000       58,000                       
Recruiting and Retention               33,000       26,500                       
                                  OPERATION AND MAINTENANCE                       
      The supplemental request included $2,885,700,000 for functions funded
   in title II, Operation and Maintenance, of the Department of Defense    
   Appropriations Act. The Committee recommends $2,936,200,000. The        
   following table summarizes the requested amounts and the Committee      
   recommendations.                                                        
                                    [In thousands of dollars]                                   
Program                                                     Request      Committee recommendation    
Flying Hours                                                $970,000     $970,000                    
Focused Relief                                              36,000       36,000                      
Base Operations                                             414,000      407,000                     
Second Destination Transportation                           62,000       50,000                      
Force Protection                                            33,000       33,000                      
Contractor Logistics Support                                63,000       63,000                      
Joint Exercises                                             11,000       11,000                      
EHIME MARU                                                  36,000       36,000                      
Utilities                                                   465,000      463,100                     
California Electrical Demand Reduction                      24,500       41,500                      
Real Property Maintenance                                   186,000      144,300                     
Aircraft Depot Maintenance                                  276,000      276,000                     
Ship Depot Maintenance                                      200,000      200,000                     
Classified Programs                                         65,200       96,400                      
Recruiting and Advertising                                  0            25,000                      
U.S.S. COLE (funded in General Provisions)                  44,000       44,000                      
Natural Disaster Damages (funded in General Provisions)     0            39,900                      
                    California Energy Demand Reduction                   
      The Committee recommends $45,700,000 for implementation of the       
   Department of Defense's plan to reduce electricity demand in California 
   and the Western United States, an increase of $17,000,000 above the     
   request. These initiatives are intended to reduce electricity demand by 
   ten percent this year and a total of fifteen percent by summer 2002. The
   Committee believes strongly that the Department must place greater      
   emphasis on utilizing available service resources and technologies that 
   can ultimately eliminate service dependence on the public power grids in
   this region. The Committee encourages the Department of Defense to      
   allocate a significant portion of this funding increase to focus on this
   area.                                                                   
      The additional funds, to remain available through fiscal year 2002,  
   are allocated as follows:                                               
                                                       
     Operation and Maintenance, Army            $6,800,000  
     Operation and Maintenance, Navy             7,200,000  
     Operation and Maintenance, Air Force        3,000,000  
      The Committee directs that in distributing funds for the Energy      
   Demand Reduction program, the Department should prioritize projects     
   based upon available data to include increases in installation utility  
   costs, the rate of savings in energy demand the project will produce,   
   and the availability of service resources to complete the project. The  
   Committee further directs the Secretary of Defense to submit a report to
   the congressional defense committees within 45 days of enactment of this
   Act that describes the complete criteria to be used and the proposed    
   projects for distribution of these funds.                               
                        Recruiting and Advertising                       
      The Committee recommends a total of $25,000,000 to fund the Army's   
   advertising campaign sufficiently through the end of the fiscal year.   
   The Committee is aware of the Army's advertising efforts to focus on    
   certain audiences, including Hispanics, and directs that no less than   
   $5,000,000 of the funds provided be used to further increase existing   
   production efforts directed toward Hispanic recruits.                   
                         Natural Disaster Damages                        
      The supplemental request includes $12,500,000 to repair damages      
   caused by natural disasters. Responding to Committee requests for       
   information, the military services provided details on the full extent  
   of natural disaster damages, including severe wind damage in the        
   northwestern United States in December 2000 and January 2001, the       
   February 2001 earthquake in the northwestern United States, and numerous
   other occurrences of severe damage throughout the United States. In     
   order to meet these needs, the Committee has provided $27,400,000 in    
   additional funding, for a total of $39,900,000. The Committee has       
   realigned those funds in the request and these additional amounts, and  
   consolidated funding for these activities in a general provision in the 
   Committee bill.                                                         
                            Other Adjustments                            
       Base Operations. --The Committee recommends a total of $407,000,000 
   for Base Operations. Within the amount recommended the Committee        
   recommends $300,000,000 for Army; $83,000,000 for Navy; $7,000,000 for  
   Army Reserve; $7,000,000 for Navy Reserve; and $10,000,000 for Army     
   National Guard. Funding for MH 47E unit beddown is deferred based on    
   consideration of other high priority requirements. The Department is    
   encouraged to seek restoration of Host Nation Support.                  
       Real Property Maintenance. --The Committee recommends a total of    
   $144,300,000 for Real Property Maintenance. Within the amount           
   recommended, the Committee recommends $91,000,000 for Army; $31,500,000 
   for Navy; $6,800,000 for Air Force; and $15,000,000 for Army National   
   Guard. Funding for F 22 beddown is deferred.                            
       Second Destination Transportation. --After review of the many high  
   priority requirements presented by the Department, the Committee        
   recommends a total of $50,000,000 for Second Destination Transportation,
   a reduction of $12,000,000 to the supplemental request.                 
               USE OF BIOFUELS BY THE DEPARTMENT OF DEFENSE              
      The Committee commends the Department of Defense for its efforts to  
   maximize the use of ethanol, biodiesel and other agricultural-based     
   fuels and lubricants, and urges the Department to continue the effort.  
                                         PROCUREMENT                              
      The supplemental request included $550,700,000 for functions funded  
   in title III, Procurement, of the Department of Defense Appropriations  
   Act. The Committee recommends $488,700,000. The following table         
   summarizes the requested amounts and the Committee recommendations.     
                            [In thousands of dollars]                           
Program                                    Request     Committee  recommendation     
Training Munitions                         $73,000     $73,000                       
C 17 Overhead Costs                        49,000      49,000                        
Ship Cost Growth                           222,000     222,000                       
California Electrical Demand Reduction     4,200       4,200                         
Classified Programs                        202,500     125,000                       
Global Positioning System NUDET            0           15,500                        
                            Training Munitions                           
      The supplemental request includes $73,000,000 for various training   
   munitions. The Committee recommendation includes this amount. The Air   
   Force has informed the Committee that there is a near term shortfall of 
   $452,000,000 in training munitions and a $2,000,000,000 shortfall over  
   the Future Years Defense Plan. The Committee is dismayed to learn that  
   these shortfalls are a result of a decade of neglect in Air Force       
   budgets. The Committee further notes that the munitions procured with   
   the supplemental funds will not be available for two years. This is     
   clearly a requirement that must be addressed in an ongoing and          
   deliberate manner as part of the regular annual appropriation process   
   rather than supplemental appropriations. Accordingly, the Committee     
   directs the Air Force to budget adequately for training munitions in    
   future budget submissions.                                              
                    Global Positioning System (Space)                    
      The supplemental request includes $15,500,000 in a classified line   
   for acquisition of a nuclear detonation detection (NUDET) sensor for    
   installation on the GPS satellite. The Air Force has informed the       
   Committee that installation of this sensor on the GPS satellite is an   
   unclassified fact. The Committee believes that funding this sensor in a 
   classified line separately from the host GPS satellite unnecessarily    
   complicates budget formulation, justification, and execution.           
   Accordingly, the Committee recommendation includes a transfer of funding
   for this effort to the GPS satellite procurement line-item. The         
   Committee directs that future budget requests for GPS NUDET be included 
   as part of the GPS satellite procurement line-item. The Committee       
   believes that this direction is not only preferable from a budgetary    
   standpoint, but also fully consistent with DoD's intent to expand the   
   Air Force's role and responsibilities in space.                         
                         RESEARCH, DEVELOPMENT, TEST AND EVALUATION               
      The supplemental request included $440,500,000 for functions funded  
   in title IV, Research, Development, Test and Evaluation, of the         
   Department of Defense Appropriations Act. The Committee recommends      
   $525,600,000. The following table summarizes the requested amounts and  
   the Committee recommendations.                                          
                           [In thousands of dollars]                           
Program                         Request     Committee recommendation    
ISR Enhancements                0           $5,000                      
Airborne Laser                  $153,000    153,000                     
Launch Vehicle Demonstration    48,000      48,000                      
Global Hawk                     25,000      17,000                      
Miniature Munitions             20,000      13,000                      
ISR Battle Management           0           5,000                       
Joint Experimentation           15,000      15,000                      
V 22 Aircraft                   80,000      120,000                     
Naval Fires Network             0           5,000                       
Classified Programs             99,500      144,600                     
                                   v 22                                  
      The supplemental request proposes a series of funding adjustments to 
   the V 22 program, intended to begin implementation of recommendations   
   made by the Panel to Review the V 22 Program (the so-called ``Blue      
   Ribbon Panel'') to hold V 22 production rates to minimum levels while   
   the program is restructured and restored to operation. To support       
   initial redesign and testing efforts, the supplemental request proposes 
   to increase the fiscal year 2001 budget request for V 22 research and   
   development by $80,000,000. The request also proposes rescissions of    
   fiscal year 2001 V 22 production funding totaling $475,000,000          
   ($235,000,000 from ``Aircraft Procurement, Navy'', and $240,000,000 from
   ``Aircraft Procurement, Air Force''), in keeping with the Department's  
   revised procurement profile.                                            
      The Committee agrees with the thrust of the proposed changes         
   contained in the supplemental budget request. However, in order to      
   enable the Marine Corps to accelerate activities associated with risk   
   reduction, part redesign, and continued operational testing necessary   
   for the V 22 to return to flight status, the Committee recommends       
   $120,000,000 for V 22 research and development, an increase of          
   $40,000,000 over the supplemental request. The Committee has also       
   carefully scrutinized the funding requirements associated with the V 22 
   production program, and has determined that the supplemental request    
   uses overly conservative pricing assumptions by the Defense Department  
   on the remaining V 22 aircraft to be procured with fiscal year 2001     
   funds. Accordingly, the Committee believes the current planned fiscal   
   year 2001 procurement program can be executed at a lower cost, yielding 
   funding which is available to help finance a more accelerated and robust
   V 22 testing and development effort, as well as other urgent needs in   
   this legislation. Therefore, while approving the rescissions of prior   
   year funds proposed in the request, the Committee recommends additional 
   rescissions of $95,000,000 to the ``Aircraft Procurement, Navy''        
   appropriation account and $20,000,000 to the ``Aircraft Procurement, Air
   Force'' account.                                                        
                              AIRBORNE LASER                             
      The supplemental request includes $153,000,000 for the Airborne Laser
   to address program cost growth and to reduce schedule risk for a lethal 
   demonstration against a theater missile planned in 2003. The Committee  
   recommendation includes this amount.                                    
                           SMALL DIAMETER BOMB                           
      The supplemental request includes $20,000,000 for a new program to   
   develop a 250 pound Small Diameter Bomb (SDB). The Committee notes that 
   $12,000,000 was appropriated to initiate this effort in fiscal year     
   2001. The Committee also notes that contract award will likely not occur
   until late fiscal year 2001 or early fiscal year 2002. Given the        
   availability of funds, and the delay in contract award, the Committee   
   recommendation includes $13,000,000 subject to the direction below. Any 
   additional fiscal year 2002 requirements should be addressed as part of 
   the DoD's fiscal year 2002 request.                                     
      Over the past several years, the Committee has supported an advanced 
   technology demonstration of a low cost seeker technology called Direct  
   Attack Munitions Affordable Seeker (DAMASK). DAMASK, developed at Naval 
   Air Warfare Center China Lake, uses a low cost commercial imaging       
   infrared sensor produced for the automobile industry. DAMASK provides a 
   passive, GPS independent, through the weather, lock-on after launch,    
   precision strike capability. In actual flight tests, the seeker has     
   demonstrated accuracy within one meter in a GPS denied environment.     
   DAMASK is estimated to cost $20,000 per seeker, less than half of the   
   amount allocated in the Air Force's SDB seeker estimates.               
      The Committee strongly encourages the Air Force to adopt the DAMASK  
   technology for use in the SDB program. At a minimum, the Committee      
   directs that evaluation of DAMASK technology be included in the SDB     
   Request for Proposal (RFP) and that DAMASK be the standard of comparison
   in terms of cost and performance for all potential SDB seeker           
   candidates.                                                             
      The Committee directs that prior to contract award for SDB, the      
   Secretary of the Air Force submit a report to the congressional defense 
   committees that includes: 1) a determination of whether the DAMASK      
   technology (using an articulated design if required) can be adapted to  
   accommodate the size requirements of the SDB; 2) an evaluation of DAMASK
   as a viable solution to the anti-jam requirements for the SDB; 3) an    
   evaluation of DAMASK for use as an automatic target recognition seeker  
   for mobile targets (assuming a logical technology growth path); 4) a    
   cost and performance comparison between DAMASK and competing seeker     
   proposals; and 5) a comparison of the competing seeker proposals in     
   terms of technology readiness.                                          
                          Joint Experimentation                          
      The supplemental request included $15,000,000 for ``Research,        
   Development, Test and Evaluation, Defense-Wide'', which the Department  
   of Defense then intended to transfer to Joint Experimentation efforts   
   funded in the ``Research, Development, Test and Evaluation, Navy''      
   appropriation. The Committee recommends appropriating the $15,000,000   
   directly to ``Research, Development, Test and Evaluation, Navy'', to    
   avoid the delay.                                                        
        Intelligence, Surveillance, Reconnaissance (ISR) Programs        
      The supplemental request included $25,000,000 for Intelligence,      
   Surveillance, Reconnaissance (ISR) programs, specifically an effort to  
   accelerate the development of the Global Hawk High Altitude Endurance   
   Unmanned Aerial Vehicle. The Committee recommends $32,000,000 for       
   overall ISR efforts, an increase of $7,000,000, as outlined below.      
       Global Hawk .--The Department requested $25,000,000 to accelerate   
   the development of the Global Hawk High Altitude Endurance Unmanned     
   Aerial Vehicle. The Committee recommends $17,000,000 for initiation of  
   the plan presented by the Air Force to accelerate development of the    
   Global Hawk.                                                            
      The Committee is concerned that the Air Force plan reflects a highly 
   ambitious schedule, relying heavily on the rapid development and        
   delivery of a myriad of sensor systems. The Committee believes the Air  
   Force should use up to $5,000,000 of the funds provided to conduct a    
   competitive fly-off demonstration to evaluate existing sensor systems,  
   particularly electro-optical and infrared sensors and synthetic aperture
   radars, that demonstrate potential for achieving the requirement without
   the need for a significant investment in development cost and schedule. 
   This effort could significantly reduce the risk inherent in the current 
   schedule.                                                               
       ISR Networking Enhancements.-- The Army, Navy, and Air Force are    
   initiating programs and conducting joint and service-specific exercises 
   that highlight networking and command and control of ISR assets, time   
   critical strike, and other network centric operations. These efforts,   
   although developed separately, are by necessity joint due to their      
   reliance on a common set of goals, assets, databases, and communication 
   links.                                                                  
      It is clear that central to the ability of each of the Services to   
   identify, track, attack, and assess damage, is the development of       
   methods to link available sensors into a network of shared data to      
   support decision makers at all levels. The Committee notes that funding 
   for many of the fiscal year 2001 networking efforts have been cobbled   
   together from a variety of projects that support related programs, but  
   specific funds for certain requirements have not been fully funded in a 
   budget request. Therefore, the Committee has provided a total of        
   $15,000,000 for the services to enhance and accelerate high priority    
   networking projects. The Committee directs the $15,000,000 be used as   
   follows:                                                                
       For the Army, $5,000,000 for Intelligence, Surveillance,            
   Reconnaissance Enhancements.--$3,000,000 for UAV Radio Network Upgrades 
   to allow radios to be networked beyond the line of sight and $2,000,000 
   for the continued development of the Joint Common Data Base.            
       For the Navy, $5,000,000 for Naval Fires Network (NFN) testing,     
   evaluation, and deployment, an analysis of the requirement to upgrade   
   the tactical dissemination module, and training and long lead           
   requirements for a potential NFN prototype deployment with a CVBG.      
       For the Air Force, $5,000,000 for Intelligence, Surveillance,       
   Reconnaissance Battle Management to initiate a new start program to     
   develop a capability to dynamically command, control and visualize ISR  
   assets and information in the Air Operations Center (AOC).              
      The Committee agrees with the approach that each service is taking.  
   Nevertheless, it is essential that each service Chief monitor their     
   programs to ensure that service solutions are joint in application.     
   Architectures must be built in such a way that interoperability and     
   exchange of information is encouraged and not hindered.                 
                     OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE (C3I)           
      Recent actions within the Office of the Assistant Secretary of       
   Defense for Command, Control, Communications and Intelligence (ASD/C3I) 
   indicate that this office has failed in its responsibility to adhere to 
   congressional directives with respect to execution of funding for       
   particular programs, projects, and activities. The Committee believes   
   that these instances show a lack of judgment, questionable management   
   practices, and what appears to be at best an indifference for Congress' 
   role in the establishment of defense spending priorities. Such practices
   not only undermine the appropriations process, but also weaken the      
   confidence given to ASD/C3I with respect to conducting its overall      
   responsibilities within the Department of Defense.                      
      The Committee recognizes that ASD/C3I is an important organization   
   with far reaching oversight and management of important Department of   
   Defense programs. The Committee believes that such authority must be    
   combined with a more responsive management structure that is capable not
   only of effectively managing its programs, but also ensuring that the   
   intent of Congress is implemented in a timely manner. The Committee     
   expects that the Secretary of Defense will ensure that any future       
   Assistant Secretary of Defense for ASD/C3I will take steps to correct   
   these types of actions and will address the issues identified by the    
   Committee.                                                              
                               REVOLVING AND MANAGEMENT FUNDS                     
                               DEFENSE WORKING CAPITAL FUNDS                      
      The supplemental request included $178,400,000 for functions funded  
   in title V, Revolving and Management Funds, of the Department of Defense
   Appropriations Act. The Committee recommends $178,400,000. The following
   table summarizes the requested amounts and the Committee                
   recommendations.                                                        
                           [In thousands of dollars]                           
Program       Request      Committee  recommendation     
Utilities     $178,400     $178,400                      
                            OTHER DEPARTMENT OF DEFENSE PROGRAMS                  
      The supplemental request included $1,453,400,000 for functions funded
   in title VI, Other Department of Defense Programs, of the Department of 
   Defense Appropriations Act. The Committee recommends $1,655,300,000. The
   following table summarizes the requested amounts and the Committee      
   recommendations.                                                        
                                             [In thousands of dollars]                                             
Program                                                                    Request        Committee  recommendation     
Defense Health Program                                                     $1,453,400     $1,653,400                    
Drug Interdiction and Counter-Drug Activities, Defense (for utilities)     0              1,900                         
                    DEFENSE HEALTH PROGRAM COST GROWTH                   
      The Committee notes that in 12 of the past 16 years, the Congress has
   been compelled to act either by providing new appropriations or prior   
   approval reprogrammings to ensure sufficient funding for the Defense    
   Health Program. Including the amount recommended in this bill, the      
   Congress has provided a total of over $6,500,000,000 above amounts      
   requested by the Department of Defense for this program since fiscal    
   year 1986.                                                              
      One reason for these shortfalls is the need to fully fund the cost of
   contractually provided health care. To fund such shortfalls, the        
   Committee recommends $786,300,000, as requested by the administration,  
   for costs associated with the TRICARE global settlement, for price      
   adjustments in execution of fiscal year 2001, for requirements that     
   could not be met by the Department of Defense medical treatment         
   facilities, and for certain pharmacy costs. With respect to global      
   settlement, the Committee harbors concerns that this amount does not    
   reflect all valid contractor claims since July 2000. The Committee is   
   aware that numerous valid claims have yet to be adjudicated and that new
   claims have been filed by TRICARE contractors since the beginning of    
   calendar year 2001. The Committee therefore directs the Secretary of    
   Defense to submit a report to the congressional defense committees,     
   prior to conference on the fiscal year 2001 Supplemental Appropriations 
   bill, that provides estimates of the outstanding liability for global   
   settlement and other change order requirements not previously identified
   or estimated that exceed the funding provided in this bill.             
      In addition, the Committee is aware that the Department of Defense   
   suffers from chronic funding shortfalls due to the inaccuracy of current
   DoD budgeting methods. Current practices have clearly failed to keep    
   pace with increases in medical care costs brought about by advances in  
   the technology of providing medical care, and by substantial increases  
   in pharmacy costs. An example of the discrepancy between budgeting      
   methods and reality is reflected in pharmacy costs, for which the       
   Department regularly budgets for cost growth of 4 5 percent per year    
   while actual cost growth since 1996 has averaged nearly 12 percent      
   annually. Therefore, the Committee directs the Secretary of Defense to  
   submit a report to the congressional defense committees, concurrent with
   submission of the fiscal year 2002 budget request, which details        
   measures included in the fiscal year 2002 budget request to improve     
   budgeting methods for medical care in the fiscal year 2002 request and  
   for subsequent budget requests.                                         
  Military Treatment Facility Optimization and Advance Medical Practices 
      The Committee has provided an additional $200,000,000 above the      
   budget request as an initial increment to begin the process of reversing
   the erosion in the ability of the direct military health care system to 
   provide the highest standards of care to service personnel, their       
   families, and to Medicare-eligible military retirees. The inability of  
   the Department to accurately forecast its TRICARE contractor costs,     
   combined with high cost growth in the commercial medical sector,        
   congressional action to expand health benefits to military retirees, and
   a poorly structured base contract for TRICARE service providers has     
   resulted in an explosion in TRICARE costs that has exceeded forecast    
   levels by tens of billions of dollars over the past several years.      
   Besides putting strains on the DoD budget as a whole, the direct care   
   system of the military medical departments has been especially hard hit 
   as their budgets have been consistently raided to pay for TRICARE cost  
   overruns. For instance, this year the fourth quarter operating budgets  
   for the Army, Navy and Air Force direct care systems have all been used 
   to pay legitimate but unbudgeted TRICARE contractor claims. Without the 
   replenishment of over $1.4 billion in this bill, all three of the       
   services' direct care systems would be forced to shut down in July or   
   August.                                                                 
      This severe and persistent funding instability for the direct care   
   system has been highly disruptive to orderly administration and has had 
   an insidious ``penny-wise, pound-foolish'' effect on the entire system  
   over time. It has prevented military managers from making sound         
   investments to increase the longer-term efficiency of their system and  
   to maintain the highest quality standards of care. The Surgeons General 
   have repeatedly testified that this continued neglect of the direct care
   system soon will lead to a decrease in quality of patient care, a       
   significant disruption in the normal delivery of health care services,  
   declining morale among the medical workforce, and more difficulty in    
   recruiting top medical talent.                                          
      The Committee also notes that sound investments in the direct care   
   system can save significant amounts of money. For instance, the Air     
   Force Surgeon General testified that the lack of funding for MTF        
   operating room supplies has caused his staff to transfer in-house       
   appendectomy patients to TRICARE contractors at a total cost of $6,000  
   to $7,000 per procedure instead of $300 at an MTF. The Committee is     
   aware that the Surgeons General have documented hundreds of individual  
   MTF investments that will not only improve the quality of care, but     
   allow them to provide care cheaper than if it were outsourced to TRICARE
   contractors. These ``optimization'' projects make good business sense.  
      In addition, the Committee is concerned that the TRICARE financial   
   crisis has sapped the ability of the military direct care system to keep
   abreast of and implement the latest advances in medical practices. Every
   year, it is estimated that the military health system needs around $100 
   million a year to implement newly developed practices/procedures such as
   laser refractive eye surgery, liquid based cytology, positron emission  
   tomography, or non-invasive colonoscopy. It is these same funds that are
   held in reserve by the Department until the very end of the fiscal year 
   to cover TRICARE shortfalls, and are often reduced or eliminated. The   
   Committee believes this is a counter-productive budgetary practice.     
      The Committee has therefore provided $200,000,000 to begin the       
   process of reversing the disinvestments in the military's direct care   
   system. Of this amount, $150,000,000 is provided to expand the services'
   MTF optimization efforts and $50,000,000 is provided to finance         
   necessary advances in medical practices that have been deferred to date.
   Optimization projects may include increased staffing, minor facility    
   repairs and maintenance, expansion of services, equipment modernization,
   pharmacy upgrades, or other activities that will improve health care    
   service and/or reduce overall cost to the government. The Committee bill
   carries language requiring that business case models be prepared for    
   these projects to show that they will be ``self-financing'' within at   
   least three years of project initiation, in the sense that they save    
   more overall cost to the government (to include TRICARE contractor cost)
   than is invested under this account. The bill language also gives the   
   ability to the Surgeons General to undertake other activities that may  
   not technically meet the cost savings criteria if they deem it necessary
   to meet a critical health care deficiency that threatens health care    
   outcomes.                                                               
      The Committee directs each Surgeon General to report to the          
   congressional defense committees by September 15, 2001 on what projects 
   or activities are to be funded with these funds (including the cost and 
   location of each), the expected overall return on investment of each    
   project, and a description of the need/benefits for each project. The   
   Committee also expects and has included language requiring that each    
   project or activity funded under this section be continued and          
   adequately financed in out year budget plans (the so-called POM         
   process). The bill requires the Secretary of Defense to so certify      
   before funds can be released.                                           
                   DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE         
      The Congress identified $5,000,000 in the fiscal year 2000 Department
   of Defense Appropriations Act to provide logistical and demilitarization
   support for the transfer of three excess A 10 aircraft to the Department
   of State in support of its Latin American drug eradication efforts. This
   action has yet to be finalized. In view of the increased threat         
   environment, the Committee recommends that the Secretary of Defense     
   renew consultations with the Department of State on this matter and     
   proceed with the transfer of these aircraft.                            
                                      RELATED AGENCIES                            
                             NATIONAL DRUG INTELLIGENCE CENTER                    
      The Congress funded the National Drug Intelligence Center (NDIC) at a
   fiscal year 2001 baseline level of $34,100,000 to implement changes in  
   operations and responsibilities specified by the General Counterdrug    
   Intelligence Plan (GCIP). The GCIP established the NDIC as the principal
   center for domestic strategic counterdrug analysis in support of        
   policymakers and resource planners, and mandated the establishment or   
   expansion of key technological and analytical assets. The Committee     
   expects the intelligence community to ensure that this new baseline is  
   fully reflected in the fiscal year 2002 and out year budgets.           
                                    CLASSIFIED PROGRAMS                           
      The Committee's recommendations regarding classified programs are    
   summarized in a classified annex accompanying this report.              
                              GENERAL PROVISIONS--THIS CHAPTER                    
      The Committee bill amends a general provision requested in the       
   supplemental request concerning the availability of funds provided in   
   this chapter.                                                           
      The Committee bill includes a general provision requested in the     
   supplemental request concerning funds for intelligence related programs.
      The Committee bill amends a general provision requested in the       
   supplemental request which provides $44,000,000 of additional funds for 
   the repair of the U.S.S. COLE.                                          
      The Committee bill includes a general provision which rescinds       
   $834,000,000 from funds provided in previously enacted Defense          
   Appropriations Acts. The accounts and specific programs recommended for 
   rescission are as follows:                                              
Rescissions                                                             
    2000 Appropriations:                                                    
                                         $3,000,000
    2001 Appropriations:                                                    
                                         81,000,000
                                         330,000,000
                                         5,000,000
                                         260,000,000
                                         65,000,000
                                         85,000,000
                                         5,000,000
      The Committee bill includes a general provision which provides       
   funding to repair facilities damaged by natural disasters.              
      The Committee bill includes a general provision extending the        
   authorities provided in section 816 of the National Defense             
   Authorization Act of 1995, as amended, through January 31, 2002.        
                                         CHAPTER 2                                
                                    DEPARTMENT OF ENERGY                          
                          NATIONAL NUCLEAR SECURITY ADMINISTRATION                
                            WEAPONS ACTIVITIES                           
      The Committee recommendation includes $140,000,000 for Weapons       
   Activities as proposed by the Administration. However, the Committee    
   recommendation modifies the distribution of the program funding.        
       Directed stockpile work .--An additional $54,000,000 has been       
   provided for directed stockpile work to be allocated as follows:        
   $18,900,000 for stockpile maintenance; $4,000,000 for stockpile         
   evaluation; and $31,100,000 for stockpile research and development,     
   including $24,000,000 for W 88 pit certification activities.            
       Campaigns .--An additional $9,000,000 has been provided for         
   campaigns to be allocated as follows: $1,800,000 for secondary          
   readiness; $1,600,000 for non-nuclear readiness; $1,600,000 for high    
   explosives manufacturing and weapons assembly/disassembly readiness; and
   $4,000,000 for pit manufacturing readiness.                             
       Readiness in technical base and facilities .--An additional         
   $47,000,000 has been provided for readiness in technical base and       
   facilities to be allocated as follows: $23,000,000 for operations of    
   facilities; $9,500,000 for program readiness; $4,500,000 for material   
   recycle and recovery; $8,800,000 for containers; and $1,200,000 for     
   storage.                                                                
      The recommendation also adjusts funding for construction projects    
   provided in the fiscal year 2001 appropriations bill to more accurately 
   reflect the use of the funds. Funding of $9,500,000 provided in Project 
   01 D 103, Project Engineering and Design (PE&D), has been transferred to
   Project 01 D 108, Microsystems and Engineering Science Applications     
   (MESA) Complex, at Sandia National Laboratories. Funding provided in    
   fiscal year 2001 for this project was for infrastructure upgrades which 
   should have been provided in the MESA construction line item, not PE&D. 
      Funding of $3,689,000 is provided for Project 01 D 107, Atlas        
   Relocation and Operations, at the Nevada Test Site. This reflects the   
   transfer of $3,689,000 from Project 01 D 103, PE&D, to relocate the     
   Atlas pulsed power facility to the Nevada Test Site by the end of fiscal
   year 2003.                                                              
       Facilities and infrastructure .--The Committee has provided         
   $30,000,000 to establish a new program, Facilities and Infrastructure,  
   to address the serious shortfall in maintenance and repairs throughout  
   the nuclear weapons complex. This funding should be used to reduce the  
   backlog of maintenance and repairs and dispose of excess facilities.    
                              OTHER DEFENSE RELATED ACTIVITIES                    
                   DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT         
      The Committee recommendation includes $100,000,000 for Defense       
   Environmental Restoration and Waste Management as proposed by the       
   Administration. Additional funding of $31,700,000 is provided for the   
   Savannah River Site for high-level waste activities and work in the F&H 
   areas. Additional funding of $18,300,000 is provided for the Hanford    
   site in Richland, Washington, for spent nuclear fuel activities, work on
   the Plutonium Finishing Plant, and F-reactor interim storage activities.
   For the Office of River Protection in Richland, an additional           
   $10,000,000 is provided for tank farm operations and $25,000,000 to     
   support the Hanford vitrification plant. Additional funding of          
   $7,000,000 has been provided to purchase TRUPACTS shipping containers in
   support of operations at the Waste Isolation Pilot Plant in New Mexico; 
   $5,000,000 to restore funding for high level waste disposal activities  
   at Idaho; and $3,000,000 for groundwater contamination activities at the
   Pantex plant in Texas.                                                  
                            DEFENSE FACILITIES CLOSURE PROJECTS                   
      The Committee recommendation includes $21,000,000 for Defense        
   Facilities Closure Projects as proposed by the Administration.          
   Additional funding of $20,000,000 has been provided for the Fernald,    
   Ohio, project, and $1,000,000 for the Miamisburg, Ohio, project.        
                       DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION             
      The Committee recommendation includes $27,472,000 for Defense        
   Environmental Management Privatization, a reduction of $2,128,000 from  
   the Administration's request of $29,600,000. These additional funds will
   be used to meet funding commitments for the Advanced Mixed Waste        
   Treatment Facility in support of legally enforceable deadlines for      
   shipping waste out of Idaho.                                            
                                         CHAPTER 3                                
                                   MILITARY CONSTRUCTION                          
                                MILITARY CONSTRUCTION, ARMY                       
      The Committee recommends appropriating $67,400,000 above the         
   President's request. Of this amount, $55,100,000 is to upgrade utility  
   systems in Korea that are in serious states of disrepair, and $6,900,000
   is to renovate and upgrade substandard and environmentally unsafe       
   vehicle maintenance facilities in Germany. The following projects are   
   included:                                                               
Location/account/installation    Project title                             Cost  
Korea:                                                                           
 Army:                                                                            
Camp Humphreys                   Electrical Upgrade                 $10,200,000  
Camp Humphreys                   Sewer Upgrade                       12,000,000  
Camp Hovey                       Sewer Upgrade                       13,400,000  
Camp Casey                       Sewer Upgrade Phase 2                8,000,000  
Camp Casey                       Electrical Upgrade                   4,000,000  
Camp Stanley                     Electrical Upgrade                   7,500,000  
Yongsan Army Garrison            Underground Fuel Tanks               1,600,000  
                                                                  -------------  
Subtotal, Korea                                                      56,700,000  
                                                                  =============  
Japan:                                                                           
 Army:                                                                            
Camp Schwab                      Special Forces Training Range         3,800,00  
                                                                  -------------  
Subtotal, Japan                                                       3,800,000  
                                                                  =============  
                                                                  =============  
Germany:                                                                         
 Army:                                                                            
Darmstadt                        Vehicle Maintenance Shop             2,500,000  
Kaiserslautern                   Vehicle Maintenance Shop             2,900,000  
Bamberg                          Vehicle Maintenance Facility         1,500,000  
                                                                  -------------  
Subtotal, Germany                                                     6,900,000  
                                                                  =============  
Total                                                                67,400,000  
      In 1999 and 2000, the Command of United States Forces in Korea (USFK)
   suffered 295 electrical power and 467 water supply outages from a       
   decaying infrastructure no longer capable of standing up to daily use   
   and severe weather, much less hostile action. Magnifying the problem is 
   the increasing need for sophisticated information technology systems    
   that are incompatible with existing infrastructure. To begin managing   
   these problems, the Committee has included funds to replace the         
   infrastructure with upgraded systems. Not only will this improve the    
   lives and working conditions of troops stationed in Korea, it will      
   strengthen the position of the Command to negotiate a land partnership  
   agreement with the government of the Republic of Korea.                 
      As a result, of the deteriorating infrastructive, troops do not have 
   internet access readily available. Nevertheless, a recent survey cited  
   phone and internet access as the top concern of service people stationed
   in Korea. The Committee encourages the Commander of United States Forces
   in Korea (USFK) to explore this matter and to make recommendations to   
   the Committee for improving its phone and internet services.            
      The Committee is also concerned that being stationed in Korea is     
   considered to be an assignment where soldiers suffer the greatest loss  
   of pay. For example, a Korea assignment is a 1-year unaccompanied       
   hardship tour similar to a 6-month unaccompanied hardship tour in the   
   Balkans. Yet soldiers serving in the Balkans are provided tax relief (no
   federal taxes) and a Basic Allowance Subsistence (separate rations) of  
   approximately $237 per month. Soldiers serving in Korea, however, do not
   receive similar benefits. Given the equally hazardous conditions in     
   Korea and the Balkans, this disparity seems unfair.                     
      Additionally, $3,800,000 is provided for the Special Forces Special  
   Operations Training Facility at Camp Schwab in Okinawa, Japan. A new    
   training facility is needed to replace the existing facility that has   
   been condemned. $1,600,000 is provided for the replacement of           
   underground fuel storage tanks in Korea.                                
      Finally, vehicle maintenance facilities in Germany are in need of    
   substantial renovation in order to ensure safe working conditions for   
   troops and to meet stringent environmental regulations. Consequently,   
   the Committee recommends $6,900,000 to renovate and upgrade three such  
   facilities.                                                             
                                MILITARY CONSTRUCTION, NAVY                       
      The Committee recommends providing $10,500,000, above the President's
   request, of which $9,400,000 is for the construction of an Emergent     
   Repair Facility in Guam for submarines and ships in transit in the South
   Pacific. Additionally, $1,100,000 is provided for a 3rd Marine          
   Expeditionary Force Training Facility at Camp Schwab in Okinawa, Japan. 
   The existing training facility is incapable of containing ammunition    
   rounds and does not meet environment standards.                         
                              MILITARY CONSTRUCTION, AIR FORCE                    
      The Committee recommends $8,000,000 for Military Construction, Air   
   Force, instead of $18,000,000 as proposed by the President. The         
   appropriation is for heat, ventilation, and fire protection systems in  
   hardened aircraft shelters at the Kunsan Air Base in Kunsan, Korea.     
                                    FAMILY HOUSING, ARMY                          
      The Committee recommends $29,480,000 for the Family Housing, Army,   
   instead of $27,200,000 as requested by the President. Of the amount     
   provided, $2,280,000 is to convert and renovate 102 substandard low-rise
   apartments in Hannam Village, Seoul, Korea. The remaining amounts are   
   necessary to pay for the increased cost of utilities due to rate        
   increases for natural gas and electricity.                              
                           FAMILY HOUSING, NAVY AND MARINE CORPS                  
      The Committee recommends providing $20,300,000 for the Family        
   Housing, Navy and Marine Corps, as requested by the President. This     
   amount is necessary to pay for the increased cost of utilities due to   
   rate increases for natural gas and electricity.                         
                                 FAMILY HOUSING, AIR FORCE                        
      The Committee recommends providing $18,000,000 for the Family        
   Housing, Air Force, as requested by the President. This amount is       
   necessary to pay for the increased cost of utilities due to rate        
   increases for natural gas and electricity.                              
                           BASE REALIGNMENT AND CLOSURE, PART IV                  
      The Committee recommends $9,000,000 for the Base Realignment and     
   Closure, Part IV, as requested by the President. This appropriation     
   enables the Air Force to fulfill contractual obligations incurred for   
   the environmental clean-up of McClellan Air Force Base.                 
                              GENERAL PROVISIONS--THIS CHAPTER                    
   The bill contains three provisions:                                     
      Section 1301 modifies the existing $77,500,000 cap to allow for      
   unanticipated increases in construction costs and related contingency   
   allowances at the Arvin Cadet Physical Development Center at the United 
   States Military Academy in New York. These increases, however, cannot   
   exceed the authorized amount of the project of $85,000,000. The         
   Secretary of the Army is directed to submit a report to the             
   congressional defense committees on the current cost estimates for the  
   project 15 days prior to expending funds on the final phase of          
   construction.                                                           
      Section 1302 clarifies that amounts provided to the Department of    
   Defense under each of the headings in this Chapter are available for the
   same time period as the amounts appropriated under each such heading in 
   Public Law 106 246.                                                     
      Section 1303 rescinds $64,000,000 from funds provided in previous    
   Military Construction Appropriations Acts.                              
                                          TITLE II                                
                              OTHER SUPPLEMENTAL APPROPRIATIONS                   
                                         CHAPTER 1                                
                              GENERAL PROVISION--THIS CHAPTER                     
      Section 2101. The Committee recommends a technical correction related
   to the Rural Community Advancement Program. The Committee does not      
   recommend additional appropriations for the Animal and Plant Health     
   Inspection Service and for the Klamath Basin, as requested. It is the   
   view of the Committee that these funding requirements can be met by     
   administrative action through existing powers and authorities of the    
   Commodity Credit Corporation. The Committee urges and directs the       
   Department to take such action promptly in order to meet these needs    
   more expeditiously than would be possible by waiting for enacted        
   supplemental appropriations.                                            
      With regard to the budget request for $20,000,000 for financial      
   assistance to eligible producers in the Klamath Basin, the Committee    
   directs the Department of Agriculture to submit an apportionment request
   forthwith to the Office of Management and Budget. This request shall    
   cover the release of not less than $20,000,000 from available funds of  
   the Commodity Credit Corporation for the purpose of providing assistance
   to producers, as determined by the Secretary of Agriculture. A copy of  
   this appointment request shall be submitted to the Committees on        
   Appropriations of the House and the Senate within three days of its     
   submission to the Office of Management and Budget. Further, the         
   Secretary of Agriculture is directed to keep the Committees fully       
   advised to the status and disposition of this apportionment request.    
                                         CHAPTER 2                                
                                    DISTRICT OF COLUMBIA                          
      The Committee recommends an additional $95,677,000 for District of   
   Columbia activities during fiscal year 2001 consisting of $250,000 by   
   transfer from Federal funds previously appropriated, $93,276,000 from   
   local funds and $2,151,000 from enterprise funds. The District          
   government's request totals $94,677,000 to be financed completely from  
   local funds and was transmitted to the President by the Mayor on May 22,
   2001. This supplemental request is necessitated by budget pressures of  
   $190,000,000 which District officials are addressing and at this time   
   have been able to resolve over 51 percent through internal adjustments  
   and the use of reserves. The balance is due primarily to increased      
   enrollment in the Medicaid program, the need to invest in support       
   services for children, youth, and their families, anticipated costs of  
   collective bargaining agreements, and unforeseen increases in natural   
   gas prices.                                                             
      The supplemental recommended by the Committee is funded entirely with
   local funds and a transfer of previously appropriated Federal funds.    
   There is no new Federal money included. District officials and the      
   control board certified $109,500,000 in additional local revenues above 
   the original projections of $3,263,000,000 that were developed in       
   December 1999 to support the fiscal year 2001 budget. The major areas of
   revenue increases are taxes and licenses and permits.                   
                             GOVERNMENTAL DIRECTION AND SUPPORT                   
                          (including rescission)                         
      The Committee recommends a net increase of $5,140,000 within this    
   appropriation title consisting of $5,400,000 to cover the 84 percent    
   increase in the price of natural gas experienced by the District        
   government and a rescission of $250,000 that was appropriated as a      
   Federal payment in Public Law 106 522 on the condition that the         
   Comptroller General assist the District in developing a solicitation for
   the study and design of a system to simplify the administration of      
   personnel policies, including pay policies, for employees of the        
   District government. District officials have stated that they are       
   further along in their procurement effort and would be delayed if they  
   were to comply with the conditions placed on the use of the $250,000. As
   a result the District's Chief Financial Officer requested that the funds
   be rescinded and the District's Personnel Officer has assured the       
   Committee in a letter dated May 2, 2001 that ``they expect to have the  
   deliverables required by the Congress by the end of * * *'' fiscal year 
   2001.                                                                   
                            ECONOMIC DEVELOPMENT AND REGULATION                   
      The Committee recommends an additional $1,625,000 for two programs   
   under this appropriation title. A total of $1,000,000 is recommended for
   the Office of Business Services and Economic Development for the        
   implementation of the District government's New E-Conomy Transformation 
   Act of 2000 to attract and foster the growth of businesses involved in  
   the development, production, distribution, and sale of Internet-based   
   and other communications technologies. The amount of $625,000 is        
   recommended to fund the city's abatement and condemnation efforts of    
   nuisance properties as required under section 5 513 of the D.C. Code.   
   The Committee has not approved language concerning the transfer of      
   savings resulting from personnel vacancies or language that requires the
   deposit of funds into revolving accounts or the request that funds for  
   the Department of Consumer and Regulatory Affairs not be available until
   certain actions are completed by June 1, 2001. That requirement would   
   have been unenforceable since the date of June 1, 2001 has since passed.
                                 PUBLIC SAFETY AND JUSTICE                        
                          (including rescission)                         
      The Committee recommends a net increase of $8,770,000 for several    
   activities within this appropriation account. A total of $2,800,000 is  
   recommended for the Metropolitan Police Department consisting $800,000  
   to implement the photo radar contract program to photograph the license 
   plates of speeders and $2,000,000 to pay an arbitration award made to   
   the members of the Fraternal Order of Police involving a grievance      
   concerning the curtailing of overtime pay to certain employees. The     
   Committee recommends $5,940,000 for the Fire and Emergency Medical      
   Services Department consisting of $5,540,000 for back payments and      
   accrued interest resulting from delays in implementing programs allowing
   fire fighters to make pre-tax payments for pension and health and life  
   insurance benefits, and $400,000 to cover the remaining costs of placing
   a fifth fire fighter on fire trucks. The Committee also recommends      
   $161,000 for the Child Fatality Review Committee to examine the past    
   events and circumstances leading to or causing the death of a child or  
   youth, a committed ward of child welfare, or person with mental         
   retardation and developmental disabilities. The Committee will operate  
   as a distinct entity within the Chief Medical Examiner's office. The    
   Committee also recommends the rescission of $131,000 for taxicab        
   inspectors. This program is funded under the Public Works appropriation 
   at the same level.                                                      
                                  PUBLIC EDUCATION SYSTEM                         
                      (Including transfer of funds)                      
      The Committee recommends an additional $2,000,000 for the Public     
   Education System consisting of $1,750,000 in local funds and $250,000 by
   transfer of previously appropriated Federal funds. A total of $1,000,000
   is recommended for independent audits of public school enrollment counts
   and residency verification in the D.C. Public Schools and the D.C.      
   Public Charter Schools as required by District statute. The Committee   
   questions why these funds were not included in the regular annual       
   budget, especially since the audit is required by law. The Committee    
   also recommends an additional $1,000,000 for the operation of the Excel 
   Institute Adult Education Program consisting of a transfer of $250,000  
   in Federal funds appropriated in Public Law 106 522 that are matched    
   with $750,000 in local funds. A total of $2,000,000 in local funds was  
   supposedly included by District officials in the District of Columbia   
   Appropriations Act for fiscal year 2001 but upon closer examination     
   there was only $1,000,000 that was included for construction and the    
   acquisition of construction services from the General Services          
   Administration on a reimbursable basis. Rather than rescind the $250,000
   in Federal funds for the pay simplification system as requested by      
   District officials, the Committee has transferred those funds to this   
   appropriation title for the Excel Institute and recommends that those   
   funds be matched with $750,000 in local funds. The Excel Institute is an
   Academic/Auto Technical Training School located in Northwest Washington.
   The Institute offers young men and women in the District the opportunity
   to train for a career, earn a high school equivalency diploma, and      
   obtain an unsubsidized job in the automotive industry. The Committee has
   also approved language that requires any proceeds and interest accruing 
   from the sale of the University of the District of Columbia's radio     
   station WDCU held by the control board in an escrow account be used for 
   the University's Endowment Fund and invested in equity based securities 
   if approved by the District's Chief Financial Officer.                  
                                   HUMAN SUPPORT SERVICES                         
      The Committee recommends an additional $28,000,000 for activities    
   within the Human Support Services appropriation. The Committee          
   recommends $15,000,000 to cover the local share of Medicaid costs due to
   an increase in the number of clients receiving inpatient and specialty  
   hospital services and an increase in enrollments in the managed care    
   program. A total of $4,000,000 is recommended to cover modifications in 
   the funding formula that has resulted in higher Disproportionate Share  
   to Hospitals (DSH) payments for uncompensated care provided to District 
   residents by local hospitals. The Committee recommends $3,000,000 for   
   the District's Disability Compensation Fund to cover medical and        
   compensation costs for an increased caseload, $1,000,000 for the Office 
   of Latino Affairs to provide Latino Community Education grants to 6,000 
   families in the Latino community, and $5,000,000 for the Children       
   Investment Trust to support a non-profit entity referred to as the      
   Children and Youth Investment Trust Corporation. This corporation will  
   coordinate the services provided to youth at the community level and    
   disburse funds to community-based organizations that serve children,    
   youth and their families with services that include early childhood     
   development opportunities, safe and enriching centers for learning in   
   and out of school, and other training, recreational, and educational    
   services. The board of the corporation consists of members appointed by 
   the Mayor and Council as well as four government officials who serve as 
   advisory members of the board.                                          
                                        PUBLIC WORKS                              
      The Committee recommends $131,000 from local funds for the Taxicab   
   Commission for taxicab inspectors. This function was previously         
   performed by the Metropolitan Police Department which had reduced the   
   number of hack inspectors from six to three. The Taxicab Commission is  
   expected to place a higher priority on taxicab enforcement and reducing 
   the number of complaints.                                               
                                   WORKFORCE INVESTMENTS                          
      The Committee recommends an appropriation of $40,500,000 from local  
   funds to fund anticipated compensation increases from current labor     
   negotiations. The District's major bargaining units are renegotiating   
   contracts that expired on September 30, 2000.                           
                                      WILSON BUILDING                             
      The Committee recommends an additional $7,100,000 from local funds to
   make up a shortfall in budgeting by District officials for funds needed 
   for the relocation of various District agencies to the John A. Wilson   
   Building.                                                               
                                       CAPITAL OUTLAY                             
      The Committee recommends approval of the reallocation of $4,850,000  
   from five existing projects that have had no implementation activity    
   since fiscal year 1999 to six projects involving buildings of historical
   significance in the District and the funding of a program manager. The  
   six government buildings selected will be renovated. The dormant        
   projects are: Electrical Modernization-Old Juvenile Court, $2,650,000;  
   Asbestos Abatement-Oak Hill Juvenile Court, $525,000; Condition         
   Assessments, $159,080; Electrical Modernization-Various DC Facilities,  
   $1,000,000; Building Renovations--Old Juvenile Court, $525,000. These   
   dormant projects total $4,859,080. The properties to be renovated are:  
   Recorder of Deeds at 5th and D Street, N.W., $2,000,000; Old Navy       
   Hospital at 921 Pennsylvania Avenue, S.E., $400,000; Tivoli Theater at  
   14th Street and Park Road, N.W., $1,000,000; 10th Precinct Building at  
   750 Park Road, N.W., $450,000; Lamond Recreation Center, $400,000;      
   Riggs-Lasalle Recreation Center at 501 Riggs Road, N.E., $400,000. The  
   reallocation also includes $200,000 for the program manager.            
                                 ENTERPRISE AND OTHER FUNDS                       
                   WATER AND SEWER AUTHORITY AND THE WASHINGTON AQUEDUCT          
      The Committee recommends an additional $2,151,000 from local funds   
   for the Water and Sewer Authority to cover the costs of the Public Space
   Occupancy Permit Rental Fee (``right-of-way'' fee) imposed by the       
   District on WASA and increased costs for compliance activities related  
   to the District's stormwater permit.                                    
                                         CHAPTER 3                                
                                DEPARTMENT OF DEFENSE--CIVIL                      
                                   DEPARTMENT OF THE ARMY                         
                                 CORPS OF ENGINEERS--CIVIL                        
           FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES, ARKANSAS, ILLINOIS,  
            KENTUCKY, LOUISIANA, MISSISSIPPI, MISSOURI, AND TENNESSEE             
      The Committee has provided $18,000,000 for the Mississippi River and 
   Tributaries project for the Corps of Engineers to address emergency     
   needs resulting from severe localized spring flooding and other natural 
   disasters. The funds would be used to address the damages caused by     
   flooding by placing more revetment squares; repairing scours that       
   threaten a pumping station, a public road and tributary levees; and     
   replacing relief wells that threaten the stability of a pumping station.
   Funds would also be used to dredge silted channels, remove drift and    
   repair levee slides. The entire amount is designated by the Congress as 
   an emergency requirement pursuant to section 251(b)(2)(A) of the        
   Balanced Budget and Emergency Deficit Control Act of 1985, as amended.  
                             OPERATION AND MAINTENANCE, GENERAL                   
      The Committee has provided $115,500,000 for the Corps of Engineers to
   address emergency needs resulting from recent Midwestern and other      
   floods, ice storms, an earthquake, and other natural disasters. The     
   funds would be used to dredge commercial navigation channels, remove    
   debris, repair damaged revetments and dam embankments, and repair       
   damaged buildings and equipment at Corps of Engineers projects. The     
   Committee has also included language which directs the Corps of         
   Engineers to undertake the project authorized by section 518 of the     
   Water Resources Development Act of 1999. The entire amount is designated
   by the Congress as an emergency requirement pursuant to section         
   251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of
   1985, as amended.                                                       
      Corps of Engineers projects in the Tulsa, Little Rock, and Vicksburg 
   Districts were particularly hard hit by winter ice storms and the funds 
   provided will enable the Corps to make necessary repairs to damaged     
   facilities.                                                             
      Areas of Louisiana, Alabama and Texas received over 30 inches of rain
   over a eight day period as a result of Tropical Storm Allison. The funds
   provided will enable the Corps to address flooding problems, restore    
   appropriate depths of navigable waterways and other damages in the New  
   Orleans, Galveston and Mobile districts.                                
                           FLOOD CONTROL AND COASTAL EMERGENCIES                  
      The Committee has provided $50,000,000, the same as the amount       
   requested by the Administration, for Flood Control and Coastal          
   Emergencies for the repair of eligible Federal and non-Federal          
   facilities damaged by natural disasters. The entire amount is designated
   by the Congress as an emergency requirement pursuant to section         
   251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of
   1985, as amended.                                                       
                                    DEPARTMENT OF ENERGY                          
                                      ENERGY PROGRAMS                             
                            NON-DEFENSE ENVIRONMENTAL MANAGEMENT                  
      The Committee recommendation includes $11,950,000 for Non-Defense    
   Environmental Management, an increase of $550,000 over the request of   
   $11,400,000. Additional funding of $10,000,000 is provided to continue  
   cleanup at the Brookhaven National Laboratory in New York, and          
   $1,950,000 is provided to study remediation options at the former Atlas 
   Corporation's uranium mill tailings site near Moab, Utah.               
                       URANIUM FACILITIES MAINTENANCE AND REMEDIATION             
      The Committee recommendation includes $18,000,000 for Uranium        
   Facilities Maintenance and Remediation, to be derived from the Uranium  
   Enrichment Decontamination and Decommissioning Fund, as proposed by the 
   Administration. Additional funding of $9,000,000 has been provided to   
   support cleanup activities at Paducah, Kentucky, and $9,000,000 has been
   provided to continue decontamination and decommissioning activities at  
   the former gaseous diffusion plant in Oak Ridge, Tennessee.             
                              POWER MARKETING ADMINISTRATIONS                     
           CONSTRUCTION, REHABILITATION, OPERATION AND MAINTENANCE, WESTERN AREA  
                              POWER ADMINISTRATION                                
      The Committee recommendation for the Western Area Power              
   Administration (Western) is $1,578,000 to complete the planning and     
   environmental studies to support the proposed 84-mile, 500-kilovolt     
   transmission line between Los Ban AE6os and Gates (also known as ``Path 
   15'') in California. Path 15 is presently a bottleneck in the           
   transmission of electricity between northern and southern California.   
   The additional funds will allow Western to complete the planning for the
   proposed transmission project, including coordination with potential    
   nonfederal sponsors for the project. Funds are also provided for Western
   to update the environmental impact documentation originally completed in
   1986. These funds are non-reimbursable so that existing Western         
   customers do not have to repay these costs to the Federal government.   
                               GENERAL PROVISION--THIS CHAPTER                    
      The Committee has included bill language to direct the Corps of      
   Engineers to use $500,000 of the funds provided in Public Law 106-377 to
   complete work on the Chickamauga Lock, Tennessee feasibility study.     
                                         CHAPTER 4                                
                                 DEPARTMENT OF THE INTERIOR                       
                                  BUREAU OF INDIAN AFFAIRS                        
                                OPERATION OF INDIAN PROGRAMS                      
      The Committee recommends $50,000,000 for operation of Indian         
   programs, as requested by the Administration, to allow for the repayment
   by the Bureau of Indian Affairs to the land acquisition accounts of the 
   Bureau of Land Management, the United States Fish and Wildlife Service, 
   and the National Park Service. The entire amount is designated by the   
   Congress as an emergency requirement pursuant to section 251(b)(2)(A) of
   the Balanced Budget and Emergency Deficit Control Act of 1985, as       
   amended.                                                                
      In May 2001, the Secretary of the Interior used her transfer         
   authority in Section 102 of the FY 2001 Interior and Related Agencies   
   Appropriations Act, Public Law 106 291, to provide a total of           
   $41,000,000 to prevent the shutdown of the San Carlos Irrigation Project
   (SCIP) electric power operations in Arizona. The transfers are expected 
   to cover the cost of power purchases for May through the end of August. 
   The additional funds above the amount required for reimbursement are to 
   ensure that there are sufficient funds to cover the cost of summer power
   requirements. The need for this funding is due to: (1) SCIP's regional  
   linkage to the California power market and low western reservoirs, which
   contribute to high electricity prices; (2) the lack of alternative power
   providers in SCIP's service area, which leaves certain residents, such  
   as diabetics on dialysis, vulnerable to illness or death should power be
   cut off; (3) and the inability of SCIP to obtain sufficient funding to  
   purchase power by other means. The potential loss of power would have a 
   disastrous effect on the economy and human population of south-central  
   Arizona. The Department of the Interior is drafting legislation to      
   authorize the divestiture of SCIP assets and the Administration hopes to
   proceed expeditiously.                                                  
                          UNITED STATES FISH AND WILDLIFE SERVICE                 
                                        CONSTRUCTION                              
      The Committee recommends $17,700,000 for construction, to remain     
   available until expended, to repair damages to U.S. Fish and Wildlife   
   Service facilities caused by floods, ice storms, and earthquakes in the 
   States of Washington, Illinois, Iowa, Minnesota, Missouri, Wisconsin,   
   New Mexico, Oklahoma, and Texas. The entire amount is designated by the 
   Congress as an emergency requirement pursuant to section 251(b)(2)(A) of
   the Balanced Budget and Emergency Deficit Control Act of 1985, as       
   amended.                                                                
                                   NATIONAL PARK SERVICE                          
                                 UNITED STATES PARK POLICE                        
      The Committee recommends $1,700,000 for United States park police for
   unbudgeted increases in pension costs for retired United States park    
   police officers. These funds will allow for reinstatement of the recruit
   training class that has been delayed to pay the increased retirement    
   costs.                                                                  
                                       RELATED AGENCY                             
                                 DEPARTMENT OF AGRICULTURE                        
                                       FOREST SERVICE                             
                                 STATE AND PRIVATE FORESTRY                       
      The Committee recommends $22,000,000 for State and private forestry  
   for emergency activities associated with ice storm damage in the States 
   of Arkansas and Oklahoma, and for emergency pest suppression in several 
   areas of the country. The recommendation includes $10,000,000 for ice   
   storm damage and $12,000,000 for pest suppression and prevention        
   activities on Federal, State, Tribal, and private lands. The funds to   
   address ice storm damage are for technical forestry and community       
   assistance, development of recovery plans, forest regeneration on       
   non-Federal lands, and community fire assistance including community    
   fire presuppression, suppression and prevention activities. The funds   
   for pest suppression and prevention activities should be focused on     
   emergency needs such as suppression of southern pine beetles in the     
   South, addressing the increasing sudden oak death needs in California   
   and Oregon, suppression of bark beetles in the West, restoration of     
   forests destroyed by spruce and mountain pine beetles, and emergency    
   development, production, and release of beetles for the purpose of      
   Hemlock woolly adelgid biocontrol. The entire amount is designated by   
   the Congress as an emergency requirement pursuant to section            
   251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of
   1985, as amended.                                                       
                                   NATIONAL FOREST SYSTEM                         
      The Committee recommends $12,000,000 for the national forest system  
   for emergency activities associated with ice storm damage in the States 
   of Arkansas and Oklahoma, and for emergency response to the emerging    
   problem of illegal marijuana cultivation and trafficking in California  
   and Kentucky. Within the amount recommended, $10,000,000 is to address  
   ice storm damage for activities associated with forest restoration      
   including the preparation and sale of forest products, re-establishment 
   of forested areas, restoration of wildlife habitat, and recreation site 
   cleanup; and $2,000,000 is to address the emerging illegal cultivation  
   and trafficking of marijuana in California and Kentucky. Such funds     
   shall be available for increased agency law enforcement activity and    
   increased cooperative support to State and local agencies. The entire   
   amount is designated by the Congress as an emergency requirement        
   pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency   
   Deficit Control Act of 1985, as amended.                                
                                  WILDLAND FIRE MANAGEMENT                        
      The Committee recommends $100,000,000 for wildland fire management to
   address additional requirements for the 2001 fire season. Current       
   indications are that the agency's fire fighting capability and available
   resources are likely to be insufficient to meet demand. The Committee   
   reminds the Administration, that a significant debt of over $300,000,000
   exists, due to borrowing from the Knutson-Vandenburg funds for past fire
   suppression activities. It is important that repayment of such borrowing
   be a high priority, should year-end Wildland Fire Management balances   
   afford such an opportunity. The entire amount is designated by the      
   Congress as an emergency requirement pursuant to section 251(b)(2)(A) of
   the Balanced Budget and Emergency Deficit Control Act of 1985, as       
   amended.                                                                
                            CAPITAL IMPROVEMENT AND MAINTENANCE                   
      The Committee recommends $4,000,000 for capital improvement and      
   maintenance to repair damages caused by ice storms in Arkansas and      
   Oklahoma. Such funds are available for activities including maintenance 
   and reconstruction of roads accessing national forest and research sites
   and facilities, maintenance and restoration of trails, and maintenance  
   and minor reconstruction of administrative and recreation facilities.   
   The entire amount is designated by the Congress as an emergency         
   requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and 
   Emergency Deficit Control Act of 1985, as amended.                      
                              GENERAL PROVISIONS--THIS CHAPTER                    
      The Committee recommends bill language to permit completion of a     
   wilderness study at Apostle Islands National Lakeshore, WI by the       
   National Park Service. An amount of $200,000 was provided in fiscal year
   2001 to complete this study. Because the study will not be completed    
   until fiscal year 2003, the Committee recommends extending the          
   availability of these funds.                                            
      The Committee recommends bill language extending the availability of 
   funds provided in fiscal year 2001 for maintenance, protection and      
   preservation of land in the Minuteman Missile National Historic Site,   
   South Dakota. The projects for which $5,000,000 was made available to   
   the National Park Service, through the Air Force operations and         
   maintenance account, cannot be completed this fiscal year.              
      The Committee recommends bill language to correct a Public Law       
   reference in section 338 of the Interior and Related Agencies           
   Appropriations Act for fiscal year 2001.                                
      The Committee recommends bill language modifying a provision in      
   Public Law 106 558 in order to authorize the payment of full overtime   
   rates for fire fighters in fiscal year 2001.                            
      The Committee recommends bill language to permit the Forest Service  
   to receive reimbursement for expenditures for projects that otherwise   
   qualify for the use of Federal-aid highways funds. Emergency relief for 
   Federally-owned roads is routinely made available to the Forest Service 
   in the form of Federal-aid highways funds (Department of the Treasury   
   account 12 69X8083). These monies provide critical funding for the      
   repair of forest roads made necessary by storms, floods, and other      
   natural occurrences. However, timely repair work is often needed prior  
   to Federal-aid highways funds being made available to the Forest Service
   by the Federal Highway Administration. This time lag in the provision of
   Federal-aid highways funds necessitates the interim use of agency funds,
   which were budgeted specifically for other projects, to complete such   
   repairs. The ability to reimburse accounts that were used to fund       
   projects, which would otherwise qualify for the use of Federal-Aid      
   Highways funds, is necessary to assure that both needed emergency repair
   work and regularly planned, budgeted, and approved projects are         
   completed.                                                              
                                         CHAPTER 5                                
                                    DEPARTMENT OF LABOR                           
                           EMPLOYMENT AND TRAINING ADMINISTRATION                 
                              TRAINING AND EMPLOYMENT SERVICES                    
                               (Rescission)                              
      The bill includes a rescission of $359,000,000 from funds provided in
   P.L. 106 554 to support the activities of the Workforce Investment Act  
   (WIA). The rescission is from amounts provided on an advance basis for  
   fiscal year 2002 to support WIA activities in program year 2001. No     
   rescission was requested by the Administration.                         
      The Department of Labor estimates that States will carry-in balances 
   of $1,778,000,000 on July 1, 2001, the beginning of program year 2001.  
   The Committee understands from the Department that historically States  
   have carried-in approximately $1,000,000,000 annually among the three   
   WIA block grants.                                                       
      The Departments of Labor, Health and Human Services, and Education,  
   and Related Agencies Appropriations Act, 2001 provided advance          
   appropriations for the adult and dislocated worker employment and       
   training activities totaling $1,772,000,000. At the time the Committee  
   provided these advance appropriations, it did not anticipate such high  
   levels of unexpended balances in WIA block grant programs.              
      In view of the large carry-in balances, the Committee recommendation 
   rescinds $359,000,000 from these advanced amounts, of which $100,000,000
   is from adult employment and training activities and $259,000,000 is    
   from dislocated worker employment and training activities. Even with the
   rescission, States will have available an estimated $5,107,000,000 to   
   support WIA activities in program year 2001, $455,000,000 over amounts  
   available in program year 2000.                                         
      The President's fiscal year 2002 budget recommends reducing WIA      
   funding by $359,000,000 for program year 2002 in order to reduce the    
   high level of carry-in balances in each of the three WIA block grants.  
   The Committee believes that rescinding a portion of the advance         
   appropriations for these activities now will provide more time for the  
   States, the Administration, and the Congress to examine program         
   expenditure patterns and assess future WIA training and employment      
   service needs.                                                          
                                   PROGRAM ADMINISTRATION                         
      It has come to the Committee's attention that a number of communities
   are experiencing delays in the Department of Labor's processing of      
   petitions for Trade Adjustment Assistance. For localities whose workers 
   have been adversely affected by imports and trade agreements these job  
   training and reemployment benefits are crucial. The Committee urges the 
   Department of Labor to expedite the investigation and certification     
   processes for these benefits.                                           
                          DEPARTMENT OF HEALTH AND HUMAN SERVICES                 
                        HEALTH RESOURCES AND SERVICES ADMINISTRATION              
                               HEALTH RESOURCES AND SERVICES                      
      The funding available for construction and renovation of Scripps     
   Memorial East County Hospital in El Cajon, California shall be divided  
   equally between Sharps Grossmont Hospital, located in San Diego County  
   and El Centro Regional Medical Center, located in Imperial County.      
                          ADMINISTRATION FOR CHILDREN AND FAMILIES                
                             LOW INCOME HOME ENERGY ASSISTANCE                    
      The bill includes $300,000,000 to serve as a reserve to provide home 
   energy assistance to low-income households, including the needs of      
   low-income households arising from extreme summer heat or other         
   emergencies, as defined in section 2603 of the Omnibus Budget           
   Reconciliation Act of 1981. This is $150,000,000 above the              
   Administration's supplemental request. The Departments of Labor, Health 
   and Human Services, and Education, and Related Agencies Appropriations  
   Act, 2001 (P.L. 106 554) provided $300,000,000 in contingent emergency  
   funds for LIHEAP. These funds were released in their entirety on        
   December 30, 2000, to address high heating fuel prices.                 
                                  DEPARTMENT OF EDUCATION                         
                                      EDUCATION REFORM                            
      The bill includes a provision to make a technical correction relating
   to a project specified in the statement of the managers on the          
   conference report accompanying the Departments of Labor, Health and     
   Human Services, and Education, and Related Agencies Appropriations Act, 
   2001.                                                                   
                              EDUCATION FOR THE DISADVANTAGED                     
      The bill includes a provision to make a technical correction relating
   to the amount of funding available for Basic Grants in school year 2001 
   2002.                                                                   
      The bill also includes an additional $161,000,000 for the Title I    
   Grants to States program. It is the intent of the Committee that, when  
   taken together with the technical correction to the basic grants amount,
   these additional resources will result in a final fiscal year 2001      
   appropriation of $7,397,971,000 for basic grants and $1,364,750,000 for 
   concentration grants. The Committee further intends that these          
   additional resources will be used to provide each state and local       
   educational agency the greater of either the amount it would receive at 
   levels specified in the conference report to accompany H.R. 4577 under  
   the 100-percent hold harmless or what it would receive using the        
   statutory formulas. The additional funds are necessary to fully         
   implement this agreement using updated poverty and expenditure data that
   became available in January 2001.                                       
                                         IMPACT AID                               
      The bill includes a provision requiring Impact Aid construction funds
   to be distributed in accordance with the formula provisions outlined in 
   section 8007 of the Impact Aid program as that section existed in fiscal
   year 2000.                                                              
                                     SPECIAL EDUCATION                            
      The bill includes a provision to make a technical correction relating
   to a project specified in the statement of the managers on the          
   conference report accompanying the Departments of Labor, Health and     
   Human Services, and Education, and Related Agencies Appropriations Act, 
   2001.                                                                   
                      EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT             
      The bill includes a provision to make technical corrections relating 
   to the amount of funding available for projects specified in the        
   statement of the managers on the conference report accompanying the     
   Departments of Labor, Health and Human Services, and Education, and     
   Related Agencies Appropriations Act, 2001.                              
                                         CHAPTER 6                                
                                     LEGISLATIVE BRANCH                           
                                  CONGRESSIONAL OPERATIONS                        
                                  HOUSE OF REPRESENTATIVES                        
                PAYMENTS TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF CONGRESS      
      The bill provides the traditional death gratuity for the widow of    
   Norman Sisisky, late a Representative from the Commonwealth of Virginia,
   and the heir of John Joseph Moakley, late a Representative from the     
   Commonwealth of Massachusetts.                                          
                                   SALARIES AND EXPENSES                          
          MEMBERS' REPRESENTATIONAL ALLOWANCES, STANDING COMMITTEES, SPECIAL AND  
          SELECT, COMMITTEE ON APPROPRIATIONS, ALLOWANCES AND EXPENSES            
      The bill includes an additional $44,214,000 for Members'             
   Representational Allowances (MRA's), standing committees, special and   
   select, the Committee on Appropriations and allowances and expenses.    
   Funds for MRA's and committees have been requested by the House in the  
   Administration's supplemental submission to support the increased       
   authorizations recently approved by the House of Representatives. Funds 
   are also provided for increased benefit costs associated with the       
   related staff increases.                                                
      Since the Committee on House Administration Committee funding        
   resolution spans the biennial period of the 107th Congress, the bill    
   provides $9,776,000 within the above amount to remain available until   
   December 31, 2002, for committee salaries and expenses.                 
                              SALARIES, OFFICERS AND EMPLOYEES                    
      The bill provides an additional amount for salaries and expenses of  
   the Office of the Clerk and the Office of the Chief Administrative      
   Officer totaling $17,448,000. The Clerk is provided $3,150,000 including
   $2,500,000 for the continuation of the project to replace the current   
   Legislative Information Management Systems (LIMS) and $650,000 to fund  
   anticipated expenses of the Office of the House Employment Counsel.     
      The Chief Administrative Officer is provided $14,298,000. This       
   funding will allow upgrades to hardware and infrastructure for improved 
   and higher speed network connectivity between Member Washington and     
   district offices and within the House campus.                           
                                    OFFICE OF COMPLIANCE                          
                                   SALARIES AND EXPENSES                          
      The bill provides $35,000 to the Office of Compliance for unexpected 
   requests for counseling and mediation services.                         
                                 GOVERNMENT PRINTING OFFICE                       
                             CONGRESSIONAL PRINTING AND BINDING                   
      The bill provides $11,900,000 to fund a shortfall based on the       
   increased volume of printing of publications and associated information 
   products and services ordered by Congress during fiscal years 2000 and  
   2001.                                                                   
                         GOVERNMENT PRINTING OFFICE REVOLVING FUND                
      The Committee recognizes the need to replace the air conditioning    
   system at the Government Printing Office. The chillers, which date back 
   to the 1970's, are in critical need of replacement. They have outlived  
   their useful life and are obsolete, energy inefficient, and pose a      
   threat to the environment through the use of chlorofluorocarbons. In    
   order to avoid the potential failure of the entire system and provide   
   for energy efficient lighting, the bill provides the necessary funding  
   of $6,000,000.                                                          
                                    LIBRARY OF CONGRESS                           
                                   SALARIES AND EXPENSES                          
      The Library of Congress and the United States Military Academy       
   initiated a collaborative telecommunications project during fiscal year 
   2001 to ensure that the undergraduate cadet population has effective    
   access to digitized primary source material which is available through  
   the Library's Internet site. To further the project, the Committee has  
   provided an additional $600,000 to upgrade the current network          
   infrastructure within the cadet barracks.                               
      The Committee acknowledges that the Library of Congress is           
   endeavoring to acquire the 1507 world map by Waldseemueller and is      
   seeking private funding to support the acquisition. The committee fully 
   supports the initiative to acquire this major treasure for its library. 
   The 1507 World Map by Martin Waldseemueller, the first work of any kind 
   to designate as America the newly discovered Western Hemisphere, is     
   often called ``America's birth certificate.'' As such this nearly       
   500-year old map is a significant historical document that should be    
   held by the people of the United States and exhibited in Congress'      
   library. The Committee urges the librarian to seek an extension from the
   German Ministry of Culture to its June 30, 2001, deadline for the       
   expiration of the export license to allow the Library of Congress every 
   opportunity to acquire for America this most important historical       
   document.                                                               
                                         CHAPTER 7                                
                                DEPARTMENT OF TRANSPORTATION                      
                              FEDERAL AVIATION ADMINISTRATION                     
                                 GRANTS-IN-AID FOR AIRPORTS                       
                     (Airport and Airway Trust Fund)                     
                  (Rescission of Contract Authorization)                 
      The bill rescinds $30,000,000 in contract authority for the          
   ``Grants-in-aid for airports'' program. This funding is above annual    
   obligation limitations on this program, and is therefore not available  
   for use in the program. As such, the rescission will have no effect on  
   current operations.                                                     
                                        COAST GUARD                               
                                     OPERATING EXPENSES                           
      The recommendation includes an additional $92,000,000, as requested, 
   for Coast Guard operating expenses. Funding has been made available     
   until September 30, 2002. These funds are needed to address: increased  
   fuel costs ($37,000,000); additional pay and benefits mandated or       
   authorized under the National Defense Authorization Act for Fiscal Year 
   2001 ($31,000,000); shortages in aviation spare parts ($20,000,000); and
   costs of deploying port security units to the Middle East ($4,000,000). 
                                         CHAPTER 8                                
                                 DEPARTMENT OF THE TREASURY                       
                                    DEPARTMENTAL OFFICES                          
                          SALARIES AND EXPENSES                          
      The Committee has not provided the President's request for an        
   additional $60,601,000 to fund operational and perimeter security       
   support for the 2002 Winter Olympics in Salt Lake City, Utah. The       
   Committee supports this funding, which would cover both increased       
   Treasury Department workload as well as travel, overtime and related    
   costs of agencies providing security support. The Committee expects to  
   include such funding in the fiscal year 2002 appropriation.             
                                FINANCIAL MANAGEMENT SERVICE                      
                          Salaries and Expenses                          
      The Committee recommends an appropriation of $49,576,000 for the     
   Financial Management Service to implement a tax rate reduction credit as
   specified in section 101 of the Economic Growth and Tax Relief          
   Reconciliation Act of 2001. The funding supports the purchase of check  
   stock and other related paper supplies, as well as postage and other    
   costs associated with processing and mailing tax rate reduction credit  
   checks to taxpayers. The Committee directs the Financial Management     
   Service to provide a detailed report on the expenditures made pursuant  
   to this appropriation 120 days after the enactment of this Act.         
                                  INTERNAL REVENUE SERVICE                        
                  Processing, Assistance, and Management                 
      The Committee recommends an appropriation of $66,200,000 for the     
   Internal Revenue Service to implement a tax rate reduction credit as    
   specified in section 101 of the Economic Growth and Tax Relief          
   Reconciliation Act of 2001. The funding supports advance mailings to    
   taxpayers of the tax rate reduction credit schedule as well as related  
   customer service and account reconciliation activities. The Committee   
   directs the Internal Revenue Service to provide a detailed report on the
   expenditures made pursuant to this appropriation 120 days after the     
   enactment of this Act.                                                  
                                         CHAPTER 9                                
                               DEPARTMENT OF VETERANS AFFAIRS                     
                              VETERANS BENEFITS ADMINISTRATION                    
                        Compensation and Pensions                        
      The Committee recommends an additional $589,413,000 for compensation 
   and pension payments to eligible veterans. Supplemental funds are needed
   in fiscal year 2001 in order to meet cost of living adjustments, and    
   program enhancements and benefits contained in legislation enacted after
   passage of the fiscal year 2001 appropriations bill.                    
                          Readjustment Benefits                          
      The Committee recommends an additional $347,000,000 to meet          
   Montgomery GI Bill benefit enhancements contained in legislation enacted
   after passage of the fiscal year 2001 appropriations bill.              
                               VETERANS HEALTH ADMINISTRATION                     
                     Medical and Prosthetic Research                     
      The Committee recognizes that the VA research program must undertake 
   a certain level of travel to properly optimize the function and         
   oversight of this worthwhile program and includes language increasing   
   the current fiscal year 2001 travel limitation from $2,500,000 to       
   $3,500,000.                                                             
                                DEPARTMENTAL ADMINISTRATION                       
                        General Operating Expenses                       
                      (including transfer of funds)                      
      The Committee recommends $19,000,000 be transferred from the Medical 
   Care account to General Operating Expenses exclusively for the Veterans 
   Benefits Administration (VBA). VBA is aggressively pursuing a proactive 
   approach to solving the mounting claims problem by hiring and training  
   additional claims adjudicators immediately. The additional $19,000,000  
   from Medical Care, plus $7,000,000 of reprogrammed GOE funds, will allow
   VBA to hire and train approximately 400 new personnel.                  
      As a result of the hiring plan, VBA will need an increased travel    
   limitation in FY 2001 over the originally requested level to support    
   this training effort. The new fiscal year 2001 GOE travel limitation is 
   $17,500,000.                                                            
                        DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT               
                                 PUBLIC AND INDIAN HOUSING                        
                         HOUSING CERTIFICATE FUND                        
                               (Rescission)                              
      The Committee recommendation includes a rescission of $114,300,000 of
   unobligated appropriations to the Housing Certificate Fund and its      
   predecessor programs.                                                   
                             COMMUNITY PLANNING AND DEVELOPMENT                   
                        Community Development Fund                       
      The Committee has included language which clarifies Congressional    
   intent with respect to appropriations made for construction at a New    
   Jersey university medical center, to improve cyber-districts in         
   Massachusetts, and for wastewater and combined sewer overflow           
   infrastructure improvements in Massachusetts.                           
                                      HOUSING PROGRAMS                            
                   Manufactured Housing Fees Trust Fund                  
      The recommendation includes language to provide authority for the    
   expenditure of fees collected and deposited into the Manufactured       
   Housing Fees Trust Fund for fiscal year 2001. The Manufactured Housing  
   Improvement Act of 2000, enacted on December 27, 2000, created this new 
   fund and made expenditures from the fund subject to annual              
   appropriations. Technical drafting errors in the statute have resulted  
   in HUD being unable to spend fees collected in fiscal year 2001,        
   threatening a shutdown of the program. Therefore, language is included  
   to rectify this situation.                                              
                               FEDERAL HOUSING ADMINISTRATION                     
              FHA--Mutual Mortgage Insurance Program Account             
      The recommendation includes language giving the Department authority 
   to use existing fiscal year 2001 appropriations to take corrective      
   action in response to a probable fiscal year 2000 violation of the      
   Anti-Deficiency Act. In fiscal year 2000, FHA funded a $33,000,000      
   advertising campaign promoting HUD programs. A portion of this program's
   funding was derived from a non-appropriated account, the authorized use 
   of which is limited to disposition of FHA properties. According to HUD  
   officials, the use of this fund has resulted in a likely violation of   
   the Anti-Deficiency Act that is estimated by HUD to total $6,900,000    
   plus interest. The Committee's recommendation includes language to allow
   HUD flexibility to pay the obligation and accrued interest from within  
   existing fiscal year 2001 appropriations for FHA administrative expenses
   and for HUD's salaries and expenses.                                    
              FHA--General and Special Risk Program Account              
      The recommendation includes an additional $40,000,000 in credit      
   subsidy appropriations for the General Insurance and Special Risk       
   Insurance (GI/SRI) program account. The Committee notes that for the    
   second consecutive year, FHA has sought a supplemental appropriation    
   because of the inability of the programs to operate within the resources
   provided. This additional appropriation, when combined with a premium   
   increase for apartment development programs as assumed in the           
   Administration's supplemental funding request, will provide FHA         
   sufficient resources to guarantee all multi-family loans meeting FHA    
   underwriting criteria through the remainder of this fiscal year. Changes
   in the premium structure will ensure that most FHA apartment development
   programs operate in a self-sustaining manner like most other FHA        
   programs, including the single-family insurance program, thereby        
   averting further shutdowns in the program. Therefore, language is also  
   included to condition the release of this additional amount upon        
   implementation of an interim final rule revising premium structure for  
   programs provided for under this heading.                               
      The Committee is also concerned that insufficient FHA management and 
   oversight has contributed to the inability of the programs to operate   
   within the funding provided. Increased FHA management and oversight of  
   these programs, coupled with reduced reliance on direct appropriations, 
   will enable FHA programs to operate in an uninterrupted manner. The     
   Committee expects FHA to take all actions necessary to strengthen its   
   management and financial oversight of these programs, and to provide a  
   report to the Committee no later than August 15, 2001, identifying the  
   corrective actions taken to address these issues.                       
                                    INDEPENDENT AGENCIES                          
                                DEPARTMENT OF DEFENSE--CIVIL                      
                                 CEMETERIAL EXPENSES, ARMY                        
                          Salaries and Expenses                          
      The Committee recommends an additional $243,059 for Arlington        
   National Cemetery to pay a disputed water bill consistent with statutory
   requirements in the Consolidated Appropriations Act, 2001 (Public Law   
   106 554).                                                               
                              ENVIRONMENTAL PROTECTION AGENCY                     
                  Environmental Programs and Management                  
      The Committee has included language in the bill which clarifies      
   Congressional intent with respect to an appropriation made in fiscal    
   year 2001 for work on New York watersheds.                              
                    State and Tribal Assistance Grants                   
      The Committee has included language in the bill which clarifies      
   Congressional intent with respect to appropriations made for four       
   specific projects. The Committee has also included a technical amendment
   which states the correct appropriations level provided in Public Law 106
   377 for state and tribal assistance grants.                             
                            FEDERAL EMERGENCY MANAGEMENT AGENCY                   
                             DISASTER RELIEF                             
                               (rescission)                              
      The Committee has included a provision rescinding $389,200,000 from  
   the disaster relief fund. These funds are not required by the Federal   
   Emergency Management Agency at this time.                               
                       NATIONAL AERONAUTICS AND SPACE ADMINISTRATION              
                            Human Space Flight                           
      The Committee has included language in the bill which would remove a 
   restriction placed on $40,000,000 of the funding provided in the fiscal 
   year 2000 appropriation for Human Space Flight. The fiscal year 2000    
   language restricted the use of the funding for a shuttle research       
   mission to be accomplished after STS 107 and December of 2001. With     
   delays in the overhaul of the space shuttle Columbia, and other delays  
   caused by changes to the shuttle manifest, NASA's STS 107 research      
   mission has been rescheduled for May of 2002 and the follow-on mission  
   is not currently manifested. NASA has already used $8,000,000 of the    
   $40,000,000 set-aside to prepare for the follow-on mission. With this   
   language change, NASA will be able to use $17,000,000 to cover the costs
   associated with the delay of STS 107 mission and $15,000,000 will be    
   used for research to be carried out on the International Space Station. 
   The Committee remains concerned about the level of research conducted on
   the International Space Station and wishes to stress the importance of  
   utilizing the laboratory facilities for scientific research.            
      The Committee is concerned to learn that the follow-on research      
   mission is not even scheduled until 2004. This mission was intended as a
   gap-filler to support the scientific community during construction of   
   the International Space Station. Pushing this mission back another three
   years will only further exacerbate existing strains on the underfunded  
   life and microgravity science community.                                
      The supplemental request