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Military

80-347

107TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

2d Session

107-533
MILITARY CONSTRUCTION APPROPRIATIONS BILL, 2003

June 25, 2002- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed
Mr. HOBSON, from the Committee on Appropriations, submitted the following
R E P O R T
[To accompany H.R. 5011]

The Committee on Appropriations submits the following report in explanation of the accompanying bill making appropriations for military construction, family housing, and base realignments and closures for the Department of Defense for the fiscal year ending September 30, 2003.

CONTENTS Page
Purpose of the Bill 2
Conformance With Authorization Bill 2
Summary of Committee Recommendation 2
Items of Special Interest 5
Defense Emergency Response Fund 6
Barracks Privatization 6
Accrual Funding of Retirement Costs and Post-Retirement Health Benefits 7
Sustainment, Restoration and Modernization 8
Construction Costs 8
Geothermal Heat Pump Technology 8
Fiscal Year 2003 Barracks Request 9
Child Development Centers 10
Hospital and Medical Facilities 11
Military Construction: Army
11
Navy
12
Air Force
13
Defense-wide
14
Army National Guard
15
Air National Guard
16
Army Reserve
17
Naval Reserve
17
Air Force Reserve
18
NATO Security Investment Program 18
Family Housing Overview 19
Family Housing: Army
20
Navy
21
Air Force
22
Defense-wide
22
Department of Defense Family Housing Improvement Fund 23
Homeowners Assistance Fund, Defense 23
Base Realignment and Closure 23
General Provisions 24
Changes in Application of Existing Law 27
Definition of Program, Project and Activity 27
Appropriations Not Authorized by Law 28
Transfer of Funds 28
Rescission of Funds 28
Constitutional Authority 29
Comparisons With Budget Resolution 29
Five-Year Projection of Outlays 29
Financial Assistance to State and Local Governments 30
Statement of General Performance Goals and Objectives 30
Full Committee Votes 30
State List 30
Comparative Statement of New Budget Authority 57

PURPOSE OF THE BILL

The Military Construction Appropriations bill provides funding for planning, design, construction, alteration, and improvement of facilities, including family housing, located on reserve and active duty military installations around the world. Additionally, the bill provides funds for the U.S. share of the NATO Security Investment Program (NSIP). Finally, the bill provides funds to execute projects required under the base realignment and closure (BRAC) authorities.

CONFORMANCE WITH AUTHORIZATION BILL

On May 9, 2002, the House passed the National Defense Authorization Act for 2003 (H.R. 4546) by a vote of 359 to 58. At this time, conference action on the legislation has not occurred; therefore, projects in this bill are approved subject to authorization.

SUMMARY OF COMMITTEE RECOMMENDATION

The Committee recommends $10,083,000,000 in new budget (obligational) authority for the Department of Defense, Military Construction Appropriations bill. This recommendation is $541,424,000 above the President's request and $521,400,000 below the fiscal year 2002 appropriation. The following table compares the amounts proposed in the bill to amounts appropriated in fiscal year 2002.

Insert offset folio 3 HR533.001

Insert offset folio 4 HR533.002

ITEMS OF SPECIAL INTEREST

The fiscal year 2003 request for military construction is $8,947,192,000, which is $1,657,208,000, or 15 percent, below the fiscal year 2002 enacted level of $10,604,400,000. However, included as part of the Defense Emergency Response Fund (DERF) request in the Defense Appropriations Bill is $594,384,000 of military construction projects. To evaluate these projects properly, they have been transferred from the Defense Appropriation request to the Military Construction request. Thus, the combined Military Construction request is $9,541,576,000, or $1,062,824,000 below last year's enacted level.

Consider the following effects of the reduction:

      Operational and training facilities are reduced $580 million, or 37 percent;

      Maintenance and production facilities are cut $635 million, or 59 percent;

      Community facilities are reduced by $196 million, or 51 percent; and,

      Research and development facilities are reduced by $151 million, or 82 percent.

Cuts below the baseline are recommended despite a Department of Defense (DOD) report that rates 68 percent of the Department's facility categories as C-3, which means the facilities have serious deficiencies that might impede mission readiness, or C-4, which means the facilities cannot support mission requirements. Moreover, as a direct result of the cuts, the recapitalization rate--which is the rate at which buildings are renovated or replaced--increases from 83 years to 150 years.

Little justification for the cut is provided other than tough choices are necessary with a tight military budget. Yet the President's request increases defense spending by $48 billion. It strains credulity that additional military construction spending could not be found with an increase of this magnitude. The unavoidable conclusion is that the Administration's rhetoric regarding the importance of quality of life for troops and their families does not coincide with the facts.

There are bright spots in the budget. Dormitories continue to be constructed at a rapid pace. Overseas construction funding is increased. Privatization of the housing inventory is moving forward aggressively.

The Committee is pleased with the results of the re-negotiation of the Korean Special Measures Agreement (SMA), which increases the level of host nation funding committed by the Republic of Korea (ROK). Likewise, the Committee commends DOD for requesting adequate funds for the NATO Security Investment Program (NSIP). The amount requested should keep the United States from temporarily blocking projects due to shortfalls in U.S. obligation authority.

Nevertheless, the Committee is frustrated that the Administration did not maintain current spending levels especially when there are many legitimate facility needs. As this Committee asserts year after year, it is imperative to address the long-term infrastructure problems of military installations. Poor facility conditions are not only unsafe--they hamper readiness and decrease troop retention.

DEFENSE EMERGENCY RESPONSE FUND

The President's fiscal year 2003 budget request includes $20,055,000,000 for the Defense Emergency Response Fund (DERF) account to support DOD's efforts to respond to and protect against terrorist acts on the United States. Of the amount, $594,384,000 is to address anti-terrorism/force protection vulnerabilities at installations worldwide. Though requested in the fiscal year 2003 Defense Appropriations legislation, these projects fall under the jurisdiction of the Military Construction Appropriations Subcommittee. To reflect properly these requirements in the fiscal year 2003 budget, the Committee has subtracted the request from the Defense Appropriations bill and added it to this appropriations measure.

When questioned about the military construction projects included in the DERF account, the Under Secretary of Defense (Comptroller) explained that the requirements were developed at the end of the OSD/OMB budget review and time did not allow them to be included in the proper appropriations account. Therefore, the Administration decided to place the DERF military construction projects in the Defense Appropriations bill.

The Committee commends the Department for seeking funds for these critical security enhancement projects at installations within the United States and overseas. The process used to request these funds, however, is irregular and inappropriate. If validated funding requirements are determined subsequent to budget submission, the Administration should transmit a budget amendment to the Congress in the proper format and is directed to do so in the future.

The following table summarizes the DERF request and Committee recommendation by account:


-------------------------------------------------------------------------------------------
Account                                              DERF request Committee recommendation 
-------------------------------------------------------------------------------------------
Military Construction, Army                          $100,000,000             $100,000,000 
Military Construction, Navy                           220,730,000              209,430,000 
Military Construction, Air Force                      190,597,000              180,597,000 
Military Construction, Defense-wide                    31,300,000               24,700,000 
Military Construction, Air National Guard               8,933,000                8,933,000 
Military Construction, Naval Reserve                    7,117,000                7,117,000 
Military Construction, Air Force Reserve                6,076,000                6,076,000 
Family Housing Operations and Maintenance, Air Force   29,631,000               29,631,000 
Total                                                 594,384,000              566,484,000 
-------------------------------------------------------------------------------------------

The Committee recommends appropriating $566,484,000, which is $27,900,000 below the budget request. This reduction affects four projects: (1) it eliminates a redundant $6,000,000 training facility; (2) it eliminates a $4,000,000 visiting quarters associated with the redundant training facility; (3) it eliminates an access road improvements project for $11,300,000; and (4) it reduces the request for a new Northern Command Headquarters from $25,000,000 to $18,400,000. The state list at the back of the report designates DERF-requested projects in the project title line.

NAVY BARRACKS PRIVATIZATION

The Department of Navy has requested funds to expand their family housing privatization efforts to unaccompanied housing. The Navy is currently developing three bachelor housing pilot projects--Hampton Roads and Quantico in Virginia and Camp Pendleton in California. The Committee agrees there may be real opportunities for applying privatization authorities to unaccompanied housing needs and supports the Department of Navy's efforts.

The Committee believes a `pilot project' approach is the best method by which to study the efficacy of this initiative and encourages the Department to evaluate lessons learned before expanding the effort to other installations. These projects must be self-sustaining, the life cycle costs need to be beneficial to the taxpayer, and good business practices should drive transactions rather than Office of Management and Budget (OMB) scoring requirements. The Department is directed to keep the Committee informed of the initiative's progress.

ACCRUAL FUNDING OF RETIREMENT COSTS AND POST-RETIREMENT HEALTH BENEFITS

The President's budget included a legislative proposal under the jurisdiction of the House Committee on Government Reform to charge to individual agencies, starting in fiscal year 2003, the fully accrued costs related to retirement benefits of Civil Service Retirement System employees and retiree health benefits for all civilian employees. The budget also requested an additional dollar amount in each affected discretionary account to cover these accrued costs.

Without passing judgment on the merits of this legislative proposal, the Committee has reduced the dollar amounts of the President's request shown in the `Comparative Statement of New Budget Authority' and other tables in this report to exclude the accrual-funding proposal. The disposition by Congress of the legislative proposal is unclear at this time. Should the proposal be passed by Congress and enacted, the Committee will make appropriate adjustments to the President's request to include accrual amounts.

The Committee further notes that administration proposals requiring legislative action by the authorizing committees of Congress are customarily submitted in the budget as separate schedules apart from the regular appropriations requests. Should such a proposal be enacted, a budget amendment formally modifying the President's appropriation request for discretionary funding is then transmitted to the Congress.

The Committee is concerned that this practice, which has always worked effectively for both Congress and past administrations, was not followed for the accrual funding proposal. In this case, the Office of Management and Budget (OMB) decided to include accrual amounts in the original discretionary appropriations language request. These amounts are based on legislation that has yet to be considered and approved by the appropriate committees of Congress. This led to numerous misunderstandings both inside and outside of Congress of what was the `true' President's budget request. The Committee believes that, in the future, OMB should follow long-established procedures with respect to discretionary spending proposals that require legislative action.

The accounts reduced in this bill are as follows:


---------------------------------------------------------------------
Account                                                       Amount 
---------------------------------------------------------------------
Military Construction, Army                             -$26,083,000 
Military Construction, Navy                              -10,470,000 
Family Housing Operations and Maintenance, Army           -3,267,000 
Family Housing Operations and Maintenance, Defense-wide      -37,000 
Total                                                    -39,857,000 
---------------------------------------------------------------------

SUSTAINMENT, RESTORATION, AND MODERNIZATION

The Department is directed to continue describing on form 1390 the backlog of Sustainment, Restoration, and Modernization needs at installations with future construction projects. For troop housing requests, form 1391 should describe any Sustainment, Restoration, and Modernization conducted in the past two years, and future requirements for unaccompanied housing at the corresponding installation. Additionally, the forms should include English equivalent measurements for projects presented in metric measurement. Rules for funding repairs of facilities under the Operation and Maintenance account are described below:

Components of the facility may be repaired by replacement, and such replacement can be up to current standards or codes.

Interior arrangements and restorations may be included as repair, but additions, new facilities, and functional conversions must be performed as military construction projects.

Such projects may be done concurrently with repair projects, as long as the final conjunctively funded project is a complete and usable facility.

The appropriate service secretary shall notify the appropriate committees 21 days prior to carrying out any repair project with an estimated cost in excess of $7,500,000.

CONSTRUCTION COSTS

The Committee directs the Department to provide an economic analysis by January 15, 2003, regarding the costs of complying with section 2821 of Title 10, United States Code, compared to the cost of conventional construction. The analysis should include the ramifications of this provision on existing Status of Forces agreements that do not permit importation of U.S. modular construction or building materials. In addition to the actual costs, the comparison should include the costs of shipping, maintenance, and maintaining architectural compatibility with the surrounding construction.

GEOTHERMAL HEAT PUMP TECHNOLOGY

The Committee is interested in exploring new building technologies particularly if their use is practical and reduces life cycle costs of construction. Geothermal heat pumps are an established technology with a proven track record of lowering power consumption by as much as 60 percent over conventional HVAC systems. Several large-scale geothermal heat pump installations at military bases, most notably Fort Polk in Louisiana and Camp Lejeune in North Carolina, have demonstrated the technology's potential to significantly reduce energy consumption and minimize life cycle maintenance costs. Therefore, the Committee directs DOD and the service components to educate themselves about the pros and cons of this technology and to consider whether it can be effectively incorporated into military facilities.

LAND SWAPS

Currently, the National Guard and the Reserve components have authority to conduct land swaps as long as receipts from the transaction are retained for use by the service components. Savings to both military construction and operations and maintenance accounts occur when such land swaps result in the consolidation of installations and in the reduction of excess land. The Committee directs DOD to explore ways to increase the use of this authority.

JOINT HOMELAND DEFENSE TRAINING FACILITY

The Committee encourages the Department of Defense to promote collaborative training to increase our preparedness and to protect our nation from future terrorist attacks. The Committee directs the Department of Defense to review a proposal for a Joint Homeland Defense Training Facility for the Northeast at the Massachusetts Military Reservation. This critical facility would provide interagency, anti-terrorist, homeland defense, and crisis response training and operations for the northeast region of the United States, and have an excellent location within a 1.5-hour drive from two state capitals and major airports. The Defense Department is directed to submit a report on this review to the Committee no later than January 1, 2003.

FISCAL YEAR 2003 BARRACKS REQUEST

The Committee recommends appropriating $1,176,190,000 to construct or modernize 12,819 barracks spaces in fiscal year 2003. This recommendation is $9,600,000 above the request and $97,943,000 below the amount enacted in fiscal year 2002. This recommendation results in construction or renovation of 56 additional barracks spaces and maintains DOD's goal of eliminating all inadequate barracks by 2008.

The following troop housing construction projects are recommended for fiscal year 2003:

FISCAL YEAR 2003 TROOP HOUSING PROJECTS
----------------------------------------------------------
Location                            Request   Recommended 
----------------------------------------------------------
Army:                                                     
Alaska--Fort Richardson         $21,000,000   $21,000,000 
Colorado--Fort Carson            42,000,000    42,000,000 
Georgia--Fort Benning            45,000,000    45,000,000 
Hawaii--Schofield Barracks       49,000,000    49,000,000 
Hawaii--Schofield Barracks       42,000,000    42,000,000 
Kansas--Fort Riley               41,000,000    41,000,000 
Kentucky--Fort Campbell          49,000,000    49,000,000 
Maryland--Fort Detrick           16,000,000    16,000,000 
New York--Fort Drum                       0     8,000,000 
North Carolina--Fort Bragg       50,000,000    50,000,000 
North Carolina--Fort Bragg       50,000,000    50,000,000 
Texas--Fort Hood                 45,000,000    45,000,000 
Washington--Fort Lewis           50,000,000    50,000,000 
Belgium--Shape HQ                13,600,000    13,600,000 
Germany--Bamberg                 10,200,000    10,200,000 
Germany--Grafenwoehr             13,200,000    13,200,000 
Germany--Mannheim                42,000,000    42,000,000 
Italy--Vicenza                   31,000,000    31,000,000 
Korea--Camp Carroll              20,000,000    20,000,000 
Korea--Camp Hovey                25,000,000    25,000,000 
Korea--Camp Humphreys            36,000,000    36,000,000 
Korea--Camp Walker               10,200,000    10,200,000 
Korea--K16 Airfield              40,000,000    40,000,000 
Qatar                             8,600,000     8,600,000 
Subtotal, Army                  749,800,000   757,800,000 
Navy/Marine Corps:                                        
California--Camp Pendleton       23,230,000    23,230,000 
California--Twenty-nine Palms    25,770,000    25,770,000 
Illinois--Great Lakes            43,360,000    43,360,000 
Illinois--Great Lakes            41,740,000    41,740,000 
Maryland--Andrews AFB             9,680,000     9,680,000 
Mississippi--Pascagoula                   0    12,000,000 
Virginia--Quantico               10,280,000    10,280,000 
Virginia--Quantico                5,040,000     5,040,000 
Virginia--Yorktown               15,020,000    15,020,000 
Virginia--Norfolk                37,310,000    37,310,000 
Washington--Bremerton            35,120,000    35,120,000 
Greece--Larissa                  14,800,000    14,800,000 
Guam--Mariana Islands            13,400,000    13,400,000 
Subtotal, Navy                  274,750,000   286,750,000 
Air Force:                                                
Arizona--Davis-Monthan AFB        9,110,000     9,110,000 
Florida--Hulburt Field            9,000,000     9,000,000 
Louisiana--Barksdale AFB         10,900,000    10,900,000 
Mississippi--Keesler AFB         22,000,000    22,000,000 
Nevada--Nellis AFB               12,280,000    12,280,000 
North Carolina--Pope AFB          9,700,000     9,700,000 
Ohio--Wright-Patterson AFB       10,400,000             0 
Texas--Lackland AFB              18,500,000    18,500,000 
Texas--Sheppard AFB              10,000,000    10,000,000 
Virginia--Langley AFB             8,320,000     8,320,000 
Korea--Osan AB                   15,100,000    15,100,000 
Subtotal, Air Force             135,310,000   124,910,000 
Naval Reserve:                                            
Georgia--Atlanta                  6,730,000     6,730,000 
Subtotal, Naval Reserve           6,730,000     6,730,000 
Total                         1,166,590,000 1,176,190,000 
----------------------------------------------------------

CHILD DEVELOPMENT CENTERS

The Committee recommends $17,570,000 for child development centers. This is $6,870,000 above the budget request and $26,740,000 below last year's enacted level.

Child Development Centers (CDCs) remain critically important for military families, especially single parents, dual-income families, and spouses left behind during deployments, and the Committee commends the individual services on the quality of care CDCs provide.

The Committee recommends appropriating funds for the following child development center projects in fiscal year 2003:

FISCAL YEAR 2003 CHILD DEVELOPMENT CENTERS
---------------------------------------------
Location                 Request Recommended 
---------------------------------------------
Army:                                        
Germany--Bamberg      $7,000,000  $7,000,000 
Italy--Vicenza         3,700,000   3,700,000 
Subtotal, Army        10,700,000  10,700,000 
Navy/Marine Corps:                           
Rhode Island--Newport          0   6,870,000 
Subtotal, Navy                 0   6,870,000 
Total                 10,700,000  17,570,000 
---------------------------------------------

HOSPITAL AND MEDICAL FACILITIES

Consistent with the budget request, the Committee recommends appropriating $150,541,000 for hospitals and medical facilities which is the same as the President's request and $48,285,000 below last year's enacted level. The request includes $147,178,000 for five projects and $3,363,000 for unspecified minor construction.

The Committee recommends appropriating funds for the following hospital and medical facilities:


------------------------------------------------------------------------------------
Location                Project title                           Request Recommended 
------------------------------------------------------------------------------------
Alaska--Elmendorf AFB   Contractor Claim                    $10,400,000 $10,400,000 
Alaska--Fort Wainwright Hospital Replacement Phase IV        53,000,000  53,000,000 
Hawaii--Hickam AFB      Life Skills Clinic Replacement        2,700,000   2,700,000 
Germany--Spangdahlem AB Hospital Replacement                 39,629,000  39,629,000 
Italy--Naples           Medical/Dental Facility Replacement  41,449,000  41,449,000 
Worldwide Various       Unspecified Minor Construction        3,363,000   3,363,000 
Total                                                       150,541,000 150,541,000 
------------------------------------------------------------------------------------

MILITARY CONSTRUCTION, ARMY

(INCLUDING RESCISSIONS)


-------------------------------------------------------------
-------------------------------------------------------------
Fiscal year 2002:                                            
  Appropriation                               $1,778,256,000 
  Rescission                                     -36,400,000 
  Emergency Appropriation (P.L. 107-117)          20,700,000 
   Total                                       1,762,556,000 
Fiscal year 2003 estimate                      1,450,438,000 
  Defense Emergency Response Fund Request        100,000,000 
   Total 2003 President's Request              1,550,438,000 
Recommended Appropriation                      1,514,557,000 
  Rescission (General Provision Sec. 128)        -13,676,000 
  Rescission                                      -5,000,000 
   Total Committee recommendation in the bill  1,495,881,000 
Comparison with:                                             
  Fiscal year 2002 appropriation                -266,675,000 
  Fiscal year 2003 estimate                      -54,557,000 
-------------------------------------------------------------

The Committee recommends appropriating $1,495,881,000 for Military Construction, Army, for fiscal year 2003. This is a decrease of $54,557,000 below the budget request and a decrease of $266,675,000 below the fiscal year 2002 appropriation.

Chemical Demilitarization- The budget request proposes, as it has for several years, that chemical demilitarization projects be appropriated in this account. However, the Committee recommends that the request of $167,631,000 be appropriated in the `Military Construction, Defense-wide' account in order to avoid distorting the size of the Army's military construction program.

Georgia-Fort Stewart: Command and Control Facility.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $1,600,000 be made available to design this facility.

New Mexico--White Sands Missile Range: Sewage Plant Upgrade.--Of the additional amount provided for unspecified minor construction in this account, the Committee directs that not less than $1,050,000 be made available to complete this upgrade.

Texas--Fort Bliss: Upgrade Water Distribution System/Replace Elevated Water Tanks.--The Committee is aware that the water distribution system at Fort Bliss in Texas is failing. To address this problem, the Committee provides $10,200,000 to upgrade the system in fiscal year 2003. However, the Committee rescinds $5,000,000 from a similar project provided in the FY 2002 Military Construction Appropriations Act, 2002 (Public Law 107-64). The fiscal year 2002 project to replace elevated water tanks at Fort Bliss is no longer needed.

Troop Housing in Korea.--The Committee commends the Department of the Army for the 26 percent increase in funding for installations and facilities in Korea. The budget increase is directed entirely towards the construction of troop barracks, which sends a positive message to our soldiers that their quality of life is a top priority. In future budget submittals, the Committee encourages the Army to continue improving the facilities on military installations in Korea.

MILITARY CONSTRUCTION, NAVY

(INCLUDING RESCISSION)


-------------------------------------------------------------
-------------------------------------------------------------
Fiscal year 2002:                                            
  Appropriation                               $1,144,221,000 
  Rescission                                     -19,588,000 
  Emergency Appropriation (P.L. 107-117)           2,000,000 
   Total                                       1,126,633,000 
Fiscal year 2003 estimate                        884,661,000 
  Defense Emergency Response Fund Request        220,730,000 
   Total 2003 President's Request              1,105,391,000 
Recommended Appropriation                      1,245,765,000 
  Rescission (General Provision Sec. 128)         -1,340,000 
   Total Committee recommendation in the bill  1,244,425,000 
Comparison with:                                             
  Fiscal year 2002 appropriation                +117,792,000 
  Fiscal year 2003 estimate                     +139,034,000 
-------------------------------------------------------------

The Committee recommends appropriating $1,244,425,000 for Military Construction, Navy, for fiscal year 2003. This is an increase of $139,034,000 above the budget request and an increase of $117,792,000 above the fiscal year 2002 appropriation.

California--North Island Naval Air Station: Child Development Center.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $250,000 be made available to design this facility.

New Jersey--Lakehurst Naval Air Engineering Station: EMALS Land Based Test Site.--The Committee commends the Secretary of the Navy for including the necessary funding in the budget request to design the Electromagnetic Aircraft Launch System (EMALS) Land Based Test Site at Lakehurst Naval Air Engineering Station in New Jersey. The Committee believes this project is a critical component of the CVN-X program and supports the Secretary's intent to request full funding for the project in fiscal year 2004.

Spain--Madrid: Navy Exchange (NEX)/Morale, Welfare, Recreation (MWR) Facility.--The Committee recommends excluding $2,890,000 for construction of this facility. The Committee is reluctant to provide funds for this project until negotiations regarding NATO's command and force structure are complete.

Washington--Whidbey Island Naval Air Station: Fire Station.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $180,000 be made available to design this facility.

MILITARY CONSTRUCTION, AIR FORCE

(INCLUDING RESCISSION)


-------------------------------------------------------------
-------------------------------------------------------------
Fiscal year 2002:                                            
  Appropriation                               $1,194,880,000 
  Rescission                                      -4,000,000 
  Emergency Appropriation (P.L. 107-117)          46,700,000 
   Total                                       1,237,580,000 
Fiscal year 2003 estimate                        644,090,000 
  Defense Emergency Response Fund Request        190,597,000 
   Total 2003 President's Request                834,687,000 
Recommended Appropriation                        964,302,000 
  Rescission (General Provision Sec. 128)        -10,281,000 
   Total Committee recommendation in the bill    954,021,000 
Comparison with:                                             
  Fiscal year 2002 appropriation                -283,559,000 
  Fiscal year 2003 estimate                     +119,334,000 
-------------------------------------------------------------

The Committee recommends appropriating $954,021,000 for Military Construction, Air Force, for fiscal year 2003. This is an increase of $119,334,000 above the budget request and a decrease of $283,559,000 below the fiscal year 2002 appropriation.

C-17 Facilities.--The budget request for `Military Construction, Air Force' includes $30,569,000 for various C-17 facilities at classified locations. Since the budget submission, the Air Force Mobility Roadmap has been released designating Travis AFB and March ARB in California as C-17 beddown sites. As a result of this announcement, the Committee provides funding for the various C-17 facilities at their newly designated sites. Of the amount requested, $6,700,000 is transferred to the `Military Construction, Air Force Reserve' account. The remaining funds are provided in the `Military Construction, Air Force' account as follows:


--------------------------------------------------------------------------------------
Location/installation  Project title                                             Cost 
--------------------------------------------------------------------------------------
California: Travis AFB C-17 Flight Simulator                               $4,600,000 
California: Travis AFB C-17 Parts Store                                     8,000,000 
California: Travis AFB Electrical, Utilities and Supporting Infrastructure 11,269,000 
Total                                                                      23,869,000 
--------------------------------------------------------------------------------------

Delaware--Dover AFB: Air Traffic Control Tower.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $675,000 be made available to design this facility.

Florida--Tyndall AFB: 1st Air Force Operations Support Center.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $2,160,000 be made available to design this facility.

Georgia--Robins AFB: Corrosion Control Paint Facility.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $2,430,000 be made available to design this facility.

Mississippi--Columbus AFB: Fire Crash/Rescue Station.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $549,000 be made available to design this facility.

South Dakota--Ellsworth AFB: 37th Bomb Wing Facility.--The Committee is aware that a bomb wing facility is needed for the 37th Bomb Squadron to plan, brief, critique combat crews, and direct flight operations. The Committee encourages the Air Force to make this project a priority within the Future Years Defense Plan.

Worldwide Classified--Classified Location: Classified Project.--The Committee denies funding for this project due to a lack of justification material.

MILITARY CONSTRUCTION, DEFENSE-WIDE

(INCLUDING RESCISSION AND TRANSFER OF FUNDS)


-----------------------------------------------------------
-----------------------------------------------------------
Fiscal year 2002:                                          
  Appropriation                               $840,558,000 
  Rescission                                   -69,280,000 
  Emergency Appropriation (P.L. 107-117)        35,000,000 
   Total                                       806,278,000 
Fiscal year 2003 estimate                      740,535,000 
  Defense Emergency Response Fund Request       31,300,000 
   Total 2003 President's Request              771,835,000 
Recommended Appropriation                      901,066,000 
  Rescission (General Provision Sec. 128)       -2,976,000 
   Total Committee recommendation in the bill  898,090,000 
Comparison with:                                           
  Fiscal year 2002 appropriation               +91,812,000 
  Fiscal year 2003 estimate                   +126,255,000 
-----------------------------------------------------------

The Committee recommends appropriating $898,090,000 for Military Construction, Defense-wide, for fiscal year 2003. This is an increase of $126,255,000 above the budget request and an increase of $91,812,000 above the fiscal year 2002 level.

Chemical Demilitarization.--The 1986 National Defense Authorization Act (Public Law 99-145) authorized the Chemical Demilitarization program for the purpose of destroying all U.S. stockpiled chemical agents and weapons by April 29, 2007. In 1991, Congress expanded the law to include the destruction of chemical warfare material not part of the stockpile such as buried munitions and former weapons production facilities. The Department of the Army is the agent responsible for program management and oversight. As requested by the President, the Committee recommends appropriating $167,631,000 for chemical demilitarization projects, which is $4,869,000 above the amount appropriated in fiscal year 2002. The following chart displays the fiscal year 2003 funding increments:


-----------------------------------------------------------------------------------------------
State    Installation            Project                                   Request Recommended 
-----------------------------------------------------------------------------------------------
Arkansas Pine Bluff Arsenal      Non-stockpile Ammunition Demo Shop    $18,937,000 $18,937,000 
Colorado Pueblo Depot            Ammunition Demil. Facility (Ph. IV)    38,000,000  38,000,000 
Indiana  Newport Ammo. Plant     Ammunition Demil. Facility (Ph. V)     61,494,000  61,494,000 
Kentucky Blue Grass Army Depot   Ammunition Demil. Facility (Ph. III)   10,300,000  10,300,000 
Kentucky Blue Grass Army Depot   Ammunition Support Facility (Ph. III)   8,300,000   8,300,000 
Maryland Aberdeen Proving Ground Ammunition Demil. Facility (Ph. V)     30,600,000  30,600,000 
Total                                                                  167,631,000 167,631,000 
-----------------------------------------------------------------------------------------------

The budget request includes a legislative provision that makes $84,400,000 for the chemical demilitarization construction program contingent upon the program meeting milestones to be agreed upon by the Office of the Secretary of Defense and the Office of Management and Budget. The Committee is concerned that some performance measures could hinder the Department's efforts to carry out this program as effectively and efficiently as possible. The Committee recommends retaining the language but only if the agreed upon performance standards enable DOD to accelerate the program.

Moreover, the Committee endorses the Army's proposal to accelerate the neutralization of the chemical agents located at these sites and urges DOD to execute it as quickly as possible. The chemical agents stored at these sites create potential terrorist targets and should be destroyed as quickly as possible. Therefore, adequate military construction funding for the chemical weapons facilities is essential to achieving this goal. Likewise, accelerating the program will enable the United States to meet its obligations under the Chemical Weapons Convention Treaty.

Maryland--Uniformed Services University of Health Sciences: Consolidated Nursing School.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $1,300,000 be made available to design this facility.

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD


--------------------------------------------------
--------------------------------------------------
Fiscal year 2002 appropriation       $405,565,000 
Fiscal year 2003 estimate             101,595,000 
Committee recommendation in the bill  159,672,000 
Comparison with:                                  
  Fiscal year 2002 appropriation     -245,893,000 
  Fiscal year 2003 estimate           +58,077,000 
--------------------------------------------------

The Committee recommends appropriating $159,672,000 for Military Construction, Army National Guard, for fiscal year 2003. This is an increase of $58,077,000 above the budget request and a decrease of $245,893,000 below the fiscal year 2002 appropriation.

Alabama--Haleyville: Armed Forces Reserve Center.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $990,000 be made available to design this facility.

Connecticut--Windsor Locks: Armed Forces Reserve Center.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $1,126,000 be made available to design this facility.

Georgia--Ft. Stewart/Hunter Army Airfield: Aviation Support Facility.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $1,158,000 be made available to design this facility.

Massachusetts--Methuen: Readiness Center.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $659,000 be made available to design this facility.

Massachusetts--Worcester: Readiness Center Utility Upgrades.--Of the additional amount provided for unspecified minor construction in this account, the Committee directs that not less than $586,000 be made available to execute this project.

Mississippi--Tupelo: Readiness Center.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $879,000 be made available to design this facility.

Rhode Island--North Kingstown: Army Aviation Support Facility.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $2,014,000 be made available to design this facility.

South Dakota--Camp Rapid: Barracks.--The Committee is aware that two new replacement barracks and their supporting infrastructure are necessary at Camp Rapid. These buildings will replace tin huts that were built in 1970 and that do not support unit training, administration, supply, security, or command and control. The Committee encourages the Army National Guard to make this project a priority within the Future Years Defense Plan.

Washington--Camp Murray: Readiness Center.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $856,000 be made available to design this facility.

MILITARY CONSTRUCTION, AIR NATIONAL GUARD


--------------------------------------------------------
--------------------------------------------------------
Fiscal year 2002 appropriation             $253,386,000 
Fiscal year 2003 estimate                    53,473,000 
  Defense Emergency Response Fund Request     8,933,000 
   Total 2003 President's Request            62,406,000 
Total Committee recommendation in the bill  119,613,000 
Comparison with:                                        
  Fiscal year 2002 appropriation           -133,773,000 
  Fiscal year 2003 estimate                 +57,207,000 
--------------------------------------------------------

The Committee recommends appropriating $119,613,000 for Military Construction, Air National Guard, for fiscal year 2003. This is an increase of $57,207,000 above the budget request and a decrease of $133,773,000 below the fiscal year 2002 appropriation.

Massachusetts--Otis ANGB: Fire Crash Rescue Station/Control Tower.--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $1,650,000 be made available to design this facility.

Minnesota--Duluth IAP: Aircraft Maintenance Complex and Shops (Phase II).--Of the additional amount provided for planning and design in this account, the Committee directs that not less than $1,110,000 be made available to design this facility.

Tennessee--Nashville: Replace Aircraft Maintenance Complex (Phase II).--Of the additional amount provided for planning and design in this account, the Committee directs not less than $347,000 be made available to design this facility.

MILITARY CONSTRUCTION, ARMY RESERVE


--------------------------------------------------------
--------------------------------------------------------
Fiscal year 2002 appropriation             $167,019,000 
Fiscal year 2003 estimate                    58,779,000 
Total Committee recommendation in the bill   99,059,000 
Comparison with:                                        
  Fiscal year 2002 appropriation            -67,960,000 
  Fiscal year 2003 estimate                 +40,280,000 
--------------------------------------------------------

The Committee recommends appropriating $99,059,000 for Military Construction, Army Reserve, for fiscal year 2003. This is an increase of $40,280,000 above the budget request and a decrease of $67,960,000 below the fiscal year 2002 appropriation.

Pennsylvania--Northeastern Pennsylvania: Joint Reserve Center.--The Committee is aware that Army National Guard and Army Reserve facilities in the Scranton, Pennsylvania, area are in poor condition and need to be replaced or renovated. Joint use facilities between the various components of the Defense Department is encouraged by the Committee as a means to optimize military construction and operation and maintenance funds while enhancing joint training and the total force concept. Therefore, the Committee directs the Army Reserve to explore the feasibility of establishing a Joint Reserve Center in Northeastern Pennsylvania to replace aging Guard and Reserve facilities. The Army Reserve is directed to submit a report no later than January 31, 2003 on the progress and feasibility of this initiative.

MILITARY CONSTRUCTION, NAVAL RESERVE


-------------------------------------------------------
-------------------------------------------------------
Fiscal year 2002:                                      
  Appropriation                            $53,201,000 
  Rescission                                  -925,000 
   Total                                    52,276,000 
Fiscal year 2003 estimate                   51,554,000 
  Defense Emergency Response Fund Request    7,117,000 
   Total 2003 President's Request           58,671,000 
Total Committee recommendation in the bill  75,821,000 
Comparison with:                                       
  Fiscal year 2002 appropriation           +23,545,000 
  Fiscal year 2003 estimate                +17,150,000 
-------------------------------------------------------

The Committee recommends appropriating $75,821,000 for Military Construction, Naval Reserve, for fiscal year 2003. This is an increase of $17,150,000 above the budget request and an increase of $23,545,000 above the fiscal year 2002 appropriation.

Louisiana--Naval Air Station New Orleans.--The Committee has provided $7,400,000 for Phase III of the Joint Reserve Center project at the Joint Reserve Base, Naval Air Station, (JRBNAS) New Orleans. This Joint Reserve Center continues to meet the Committee's long stated policy goals of a truly `joint' facility for military service elements in the entire region. While the current project includes a number of regional elements of the Navy, Marine Corps, Air Force and Army Reserve forces, the Army Reserve has yet to embrace truly the jointness capabilities of this Center for the 377th Theatre Area Army Command (TAACOM).

The Committee believes the 377th is a critical logistics unit for several active Army and service deployment contingencies. Current plans of the Army Reserve are to keep all elements of the 377th TAACOM at its existing location within the region at some distance from the JRBNAS. The JRBNAS, New Orleans, is a major military airfield with existing deployment and joint service capabilities that should be fully utilized. Including the 377th TAACOM footprint within the scope of the Joint Reserve Center is appropriate; therefore, the Committee recommends that the Secretary of the Army and the Secretary of the Navy report to the Subcommittee on Military Construction prior to October 15, 2002, about the feasibility of including the Army Reserve in the Joint Reserve Center project.

The Committee is also aware that a new high voltage distribution system is needed at the JRBNAS at Belle Chasse, Louisiana. The current high voltage system is over 30 years old and is listed as severely deteriorated and very `high maintenance.' A new system is critically needed to replace the overhead system with a more efficient, low maintenance underground system that would not be susceptible to damage from trees, heavy winds, and oversized military equipment. Therefore, the Committee encourages the Navy to make this project a priority and program the requirement within the Future Years Defense Plan.

MILITARY CONSTRUCTION, AIR FORCE RESERVE


-------------------------------------------------------
-------------------------------------------------------
Fiscal year 2002 appropriation             $74,857,000 
Fiscal year 2003 estimate                   31,900,000 
  Defense Emergency Response Fund Request    6,076,000 
   Total 2003 President's Request           37,976,000 
Total Committee recommendation in the bill  75,276,000 
Comparison with:                                       
  Fiscal year 2002 appropriation              +419,000 
  Fiscal year 2003 estimate                +37,300,000 
-------------------------------------------------------

The Committee recommends appropriating $75,276,000 for Military Construction, Air Force Reserve, for fiscal year 2003. This is an increase of $37,300,000 above the budget request and an increase of $419,000 above the fiscal year 2002 appropriation.

California--March ARB: C-17 Facilities.--The Committee provides $6,700,000 for C-17 facilities at March ARB in California. These funds were requested in the `Military Construction, Air Force' account at a classified location because formal C-17 basing announcements had not been made prior to budget submission. Recently, March ARB has been designated a C-17 beddown site by the Air Force Mobility Roadmap. The Committee provides funds for the following facilities:


-----------------------------------------------------------------------------
Location/installation Project title                                     Cost 
-----------------------------------------------------------------------------
California: March ARB C-17 Alter Squadron Operations Facility     $1,700,000 
California: March ARB C-17 Alter Co-located Life Support Building  3,000,000 
California: March ARB C-17 Alter General Maintenance Shops         2,000,000 
Total                                                              6,700,000 
-----------------------------------------------------------------------------

NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM


--------------------------------------------------
--------------------------------------------------
Fiscal year 2002 appropriation       $162,600,000 
Fiscal year 2003 estimate             168,200,000 
Committee recommendation in the bill  168,200,000 
Comparison with:                                  
  Fiscal year 2002 appropriation       +5,600,000 
  Fiscal year 2003 estimate                     0 
--------------------------------------------------

The NATO Security Investment Program (NSIP) consists of annual contributions by NATO member countries. The program finances the costs of construction needed to support the roles of the major NATO commands. The investments cover facilities such as airfields, fuel pipelines and storage, harbors, communications and information systems, radar and navigational aids, and military headquarters. The U.S. share of the NSIP for fiscal year 2003 is $179,200,000, or roughly 25 percent of the total NSIP program amount of $729,600,000.

Consistent with the budget request, the Committee recommends $168,200,000 for the NSIP, which is an increase of $5,600,000 above the appropriation for fiscal year 2002. To offset the total U.S. share of the program, $11,000,000 is from recoupments of prior year funds.

Occasionally, the U.S. has been forced to delay temporarily the authorization of projects due to shortfalls in U.S. obligation authority. The Committee directs DOD to notify the Committee 30 days prior to taking such action.

The Committee is concerned about the long-term programmatic costs associated with NATO's decision to realign its headquarters. The budget request proposes to appropriate funds for housing and other community support facilities at two new NATO Joint Command Headquarters in Europe--one in Larissa, Greece and the other in Madrid, Spain. The Committee recommends against providing funds for two flag officer quarters in Larissa and a support facility in Madrid until negotiations on NATO's command and force structure are completed.

FAMILY HOUSING OVERVIEW

Historically, housing for military personnel and their families has been a low priority for DOD. Consequently, the inventory is old and in most cases is substandard. DOD estimates that 180,000 of the 300,000 military family housing units it owns and operates are substandard and that it would cost more than $16 billion to improve or replace them.

To ameliorate the costs associated with providing decent housing, Congress authorized the Military Housing Privatization Initiative. The initiative's intent is to create more housing quickly, to attract private capital, and to make the private sector responsible for providing routine maintenance.

COMMITTEE RECOMMENDATION

The Committee recommends appropriating $4,247,804,000 for the family housing construction and operations and maintenance accounts for fiscal year 2003, which is an increase of $1,344,000 above the budget request and $152,065,000 above the fiscal year 2002 appropriation.

The operations and maintenance accounts provide funds to pay for maintenance and repair, furnishings, management, services, utilities, leasing, interest, mortgage insurance, and miscellaneous expenses.

FOREIGN CURRENCY SAVINGS

The Committee directs that savings from foreign currency re-estimates be used to maintain existing family housing units. The Comptroller is directed to report to the Committee on how these savings are allocated by December 1, 2003. Likewise, only 10 percent of funds made available to the construction and operation and maintenance accounts may be transferred between the accounts. Such transfers must be reported to the Committee within thirty days of such action.

LEASING REPORTING REQUIREMENT

The Committee continues the reporting requirement for both domestic and foreign leases. For domestic leases (not funded by the Defense Family Housing Improvement Fund), the Department is directed to report quarterly on the details of all new or renewal domestic leases entered into during the previous quarter that exceed $12,000 per unit per year, including certification that less expensive housing was not available for lease. For foreign leases, the Department is directed to: perform an economic analysis on all new leases or lease/contract agreements where more than 25 units are involved; report the details of new or renewal lease that exceeds $20,000 per year (as adjusted for foreign currency fluctuation from October 1, 1987, but not adjusted for inflation) 21 days prior to entering into such an agreement; and base leasing decisions on the economic analysis.

REPROGRAMMING CRITERIA

The reprogramming criteria that apply to military construction projects (25 percent of the funded amount or $2,000,000, whichever is less) also apply to new housing construction projects and improvement projects over $2,000,000.

FAMILY HOUSING CONSTRUCTION, ARMY

(INCLUDING RESCISSION)


-----------------------------------------------------------
-----------------------------------------------------------
Fiscal year 2002 appropriation                $312,742,000 
Fiscal year 2003 estimate                      283,346,000 
Recommended Appropriation                      283,346,000 
  Rescission (General Provision Sec. 128)       -4,920,000 
   Total Committee recommendation in the bill  278,426,000 
Comparison with:                                           
  Fiscal year 2002 appropriation               -34,316,000 
  Fiscal year 2003 estimate                     -4,920,000 
-----------------------------------------------------------

The Committee recommends appropriating $278,426,000 for Family Housing Construction, Army, for fiscal year 2003. This recommendation is a decrease of $4,920,000 below the budget request, and a decrease of $34,316,000 below the fiscal year 2002 appropriation. The appropriation includes $27,942,000 to construct new family housing units, $239,751,000 to improve existing units, and $15,653,000 for planning and design. Section 128 of the General Provisions rescinds $4,920,000 from this account.

FAMILY HOUSING OPERATIONS AND MAINTENANCE, ARMY


------------------------------------------------------
------------------------------------------------------
Fiscal year 2002 appropriation         $1,089,573,000 
Fiscal year 2003 estimate               1,119,007,000 
Committee recommendation in the bill    1,119,007,000 
Comparison with:                                      
  Fiscal year 2002 total appropriation    +29,434,000 
  Fiscal year 2003 estimate                         0 
------------------------------------------------------

The Committee recommends appropriating $1,119,007,000 for Family Housing Operations and Maintenance, Army, for fiscal year 2003. This is equal to the budget request and is an increase of $29,434,000 above the fiscal year 2002 appropriation.

FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

(INCLUDING RESCISSION)


-----------------------------------------------------------
-----------------------------------------------------------
Fiscal year 2002 appropriation                $331,780,000 
Fiscal year 2003 estimate                      375,700,000 
Recommended Appropriation                      380,268,000 
  Rescission (General Provision Sec. 128)       -2,652,000 
   Total Committee recommendation in the bill  377,616,000 
Comparison with:                                           
  Fiscal year 2002 total appropriation         +45,836,000 
  Fiscal year 2003 estimate                     +1,916,000 
-----------------------------------------------------------

The Committee recommends appropriating $377,616,000 for Family Housing Construction, Navy and Marine Corps, for fiscal year 2003. This is an increase of $1,916,000 above the budget request and an increase of $45,836,000 above the fiscal year 2002 appropriation. The appropriation includes $229,519,000 to construct new family housing units, $139,468,000 to improve existing units, and $11,281,000 for planning and design. Section 128 of the General Provisions rescinds $2,652,000 from this account.

Greece--Larissa: Construct Two Flag Officer Quarters.--The budget request includes $1,232,000 to construct two new Flag Officer Quarters to support a new NATO Subregional Command Headquarters. The Committee recommends against providing funds for this project until negotiations on NATO's command and force structure have been completed.

FAMILY HOUSING OPERATIONS AND MAINTENANCE, NAVY AND MARINE CORPS


----------------------------------------------------
----------------------------------------------------
Fiscal year 2002 appropriation         $910,095,000 
Fiscal year 2003 estimate               867,788,000 
Committee recommendation in the bill    867,788,000 
Comparison with:                                    
  Fiscal year 2002 total appropriation  -42,307,000 
  Fiscal year 2003 estimate                       0 
----------------------------------------------------

The Committee recommends appropriating $867,788,000 for Family Housing Operations and Maintenance, Navy and Marine Corps, for fiscal year 2003. This is equal to the budget request and is a decrease of $42,307,000 below the fiscal year 2002 appropriation.

Housing Privatization Support Costs.--The Committee transfers $4,327,000 from the Department of Navy's maintenance of real property account to the housing privatization support cost account. This amount reflects the increased costs associated with an accelerated rate of housing privatization transactions.

FAMILY HOUSING CONSTRUCTION, AIR FORCE

(INCLUDING RESCISSION)


-----------------------------------------------------------
-----------------------------------------------------------
Fiscal year 2002 appropriation                $550,703,000 
Fiscal year 2003 estimate                      676,694,000 
Recommended Appropriation                      689,824,000 
  Rescission (General Provision Sec. 128)       -8,782,000 
   Total Committee recommendation in the bill  681,042,000 
Comparison with:                                           
  Fiscal year 2002 appropriation              +130,339,000 
  Fiscal year 2003 estimate                     +4,348,000 
-----------------------------------------------------------

The Committee recommends appropriating $681,042,000 for Family Housing Construction, Air Force, for fiscal year 2003. This recommendation is an increase of $4,348,000 above the budget request and is an increase of $130,339,000 above the fiscal year 2002 appropriation. The appropriation includes $429,568,000 to construct new family housing units, $226,068,000 to improve existing units, and $34,188,000 for planning and design. Section 128 of the General Provisions rescinds $8,782,000 from this account.

FAMILY HOUSING OPERATIONS AND MAINTENANCE, AIR FORCE


-------------------------------------------------------
-------------------------------------------------------
Fiscal year 2002 appropriation            $844,715,000 
Fiscal year 2003 estimate                  844,419,000 
  Defense Emergency Response Fund Request   29,631,000 
   Total 2003 President's Request          874,050,000 
Committee recommendation in the bill       874,050,000 
Comparison with:                                       
  Fiscal year 2002 total appropriation     +29,335,000 
  Fiscal year 2003 estimate                          0 
-------------------------------------------------------

The Committee recommends appropriating $874,050,000 for Family Housing Operations and Maintenance, Air Force, for fiscal year 2003. This appropriation is the same as the budget request and is an increase of $29,335,000 above the fiscal year 2002 appropriation.

FAMILY HOUSING CONSTRUCTION, DEFENSE-WIDE


------------------------------------------------
------------------------------------------------
Fiscal year 2002 appropriation         $250,000 
Fiscal year 2003 estimate             5,480,000 
Committee recommendation in the bill  5,480,000 
Comparison with:                                
  Fiscal year 2002 appropriation     +5,230,000 
  Fiscal year 2003 estimate                   0 
------------------------------------------------

The Committee recommends appropriating $5,480,000 for Family Housing Construction, Defense-wide, for fiscal year 2003. This is equal to the budget request and is an increase of $5,230,000 above the fiscal year 2002 appropriation. The appropriation includes $5,230,000 to improve existing units.

FAMILY HOUSING OPERATIONS AND MAINTENANCE, DEFENSE-WIDE


-------------------------------------------------
-------------------------------------------------
Fiscal year 2002 appropriation       $43,762,000 
Fiscal year 2003 estimate             42,395,000 
Committee recommendation in the bill  42,395,000 
Comparison with:                                 
  Fiscal year 2002 appropriation      -1,367,000 
  Fiscal year 2003 estimate                    0 
-------------------------------------------------

The Committee recommends appropriating $42,395,000 for Family Housing, Defense-wide, for fiscal year 2003. The recommendation is equal to the budget request and is a decrease of $1,367,000 below the fiscal year 2002 appropriation.

DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND


------------------------------------------------
------------------------------------------------
Fiscal year 2002 appropriation       $2,000,000 
Fiscal year 2003 estimate             2,000,000 
Committee recommendation in the bill  2,000,000 
Comparison with:                                
  Fiscal year 2002 appropriation              0 
  Fiscal year 2003 estimate                   0 
------------------------------------------------

The Family Housing Improvement Fund is administered as a single account without fiscal year limitations and contains appropriated and transferred funds from family housing construction accounts. The total value in budget authority of all contracts and investments undertaken may not exceed $850,000,000. Proceeds from investments, leases, and conveyances are deposited into this fund and its use is subject to annual appropriations.

Consistent with the budget request, the Committee recommends $2,000,000 for the Department of Defense Family Housing Improvement Fund for fiscal year 2003, which is equal to the fiscal year 2002 appropriation. The Department is directed to continue providing quarterly status reports on each privatization project.

HOMEOWNERS ASSISTANCE FUND, DEFENSE


-------------------------------------------------
-------------------------------------------------
Fiscal year 2002 appropriation       $10,119,000 
Fiscal year 2003 estimate                      0 
Committee recommendation in the bill           0 
Comparison with:                                 
  Fiscal year 2002 appropriation     -10,119,000 
  Fiscal year 2003 estimate                    0 
-------------------------------------------------

The Homeowners Assistance Fund is a non-expiring revolving fund that provides assistance to homeowners. The fund was established to ameliorate adverse impacts on the economies of local communities caused by base closures or realignments. Service members may access the fund if the value of their home decreases because of a BRAC. The account receives funds from several sources: appropriations, borrowing authority, reimbursable authority, prior fiscal year unobligated balances, revenue from sale of acquired properties, and recovery of prior year obligations.

Consistent with the budget request, the Committee recommends no appropriation for the Homeowners Assistance Fund for fiscal year 2003, which is $10,119,000 below the appropriation for fiscal year 2002. Total requirements for fiscal year 2003 are estimated to be $15,657,000 and will be funded with revenue from sales of acquired properties and prior year unobligated balances.

BASE REALIGNMENT AND CLOSURE ACCOUNT


--------------------------------------------------
--------------------------------------------------
Fiscal year 2002 appropriation       $632,713,000 
Fiscal year 2003 estimate             545,138,000 
Committee recommendation in the bill  545,138,000 
Comparison with:                                  
  Fiscal year 2002 appropriation      -87,575,000 
  Fiscal year 2003 estimate                     0 
--------------------------------------------------

The Defense Authorization Amendments and Base Closure and Realignment Act of 1988 (Public Law 100-526) and the Defense Base Closure and Realignment Act of 1990 (Public Law 101-510) authorized four base realignment and closure (BRAC) rounds between 1988 and 1995 to reduce excess military bases and infrastructure. Ninety-seven major domestic installations were closed and several facilities were realigned. Savings of $14,800,000,000 were realized through fiscal year 2001.

Consistent with the budget request, the Committee recommends $545,138,000 for the Base Realignment and Closure account for fiscal year 2003. This amount is a decrease of $87,575,000 below the appropriation for fiscal year 2002.

To date, the Congress has appropriated a net total of $21,774,567,000 for the BRAC program from fiscal years 1990 through 2002. Within this total, the Department has allocated $7,462,686,000 for activities associated with environmental restoration.

The Committee has provided the Department with the flexibility to allocate funds by service component, by functions, and by base. Recognizing the complexities of providing for environmental restoration of properties, the Committee has provided flexibility to allow the Office of the Secretary of Defense to monitor program execution to redistribute unobligated balances as appropriate to avoid delays and to effect timely execution of environmental cleanup responsibilities.

California--Fort Ord: Hazardous Waste Removal.--The Department of Army is working to develop, demonstrate, and validate innovative technologies to address the remediation of lead-based paint, asbestos, and polychlorinated biphenyls generated from the removal of the 12th Street Corridor building at the former Fort Ord in California. The Committee urges the Department of Army to continue this effort until a successful technology is validated. A successful technology solution from this effort will be beneficial for other closed or realigned defense installations facing similar challenges.

Unexploded Ordnance- This year, the Committee held a hearing on Unexploded Ordnance (UXO). Drawing on experts from Congress, the Office of the Secretary of Defense (OSD), the service components, and the former Fort Ord, members were exposed to a broad range of UXO issues.

Of primary concern to the Committee is the state of UXO detection and removal technology. The current process requires troops to dig manually and identify visually all potential UXO. Over 90 percent of these digs yield false positives, they put troops at risk of injury or death, and they contribute to the exorbitant cost of UXO removal.

The Committee is interested in staying abreast of UXO issues as they relate to the Military Construction Subcommittee and directs DOD, on an annual basis, to provide inventories and clean up costs of UXO at Base Realignment and Closure (BRAC) sites to the Committees on Appropriations. In addition, the Committee encourages DOD to continue funding critical UXO technology and environmental clean-up initiatives in order to ensure the productive use of former military sites in the future.

GENERAL PROVISIONS

The Administration proposed eliminating several general provisions enacted in P.L. 107-64: sections 111, 113, 119, 122, 124, 125, and 128-132. The Committee recommends retaining every provision except for sections 124 and 128-132. Additionally, the Administration proposed a new section 122 that would allow up to $70,000,000 to be transferred among any accounts in the bill. The Committee did not include this provision. General Provisions included in the bill are as follows:

Section 101 of the General Provisions limits DOD from spending funds appropriated in this Act for payments under a cost-plus-a-fixed-fee contract for construction where cost estimates exceed $25,000. An exception for Alaska is provided.

Section 102 of the General Provisions permits the hire of passenger motor vehicles.

Section 103 of the General Provisions permits funds to be expended on the construction of defense access roads under certain circumstances.

Section 104 of the General Provisions prohibits construction of new bases inside the continental United States without a specific appropriation.

Section 105 of the General Provisions limits the use of funds for purchase of land or land easements that exceed 100% of value.

Section 106 of the General Provisions prohibits the use of funds to acquire land, prepare sites, or install utilities for family housing except housing for which funds have been appropriated.

Section 107 of the General Provisions limits the use of minor construction funds to be transferred or relocated from one installation to another.

Section 108 of the General Provisions prohibits the procurement of steel unless American producers, fabricators, and manufacturers have been allowed to compete.

Section 109 of the General Provisions limits appropriations from being used to pay real property taxes in foreign nations.

Section 110 of the General Provisions prohibits construction of new bases overseas without prior notification to the Committee on Appropriations.

Section 111 of the General Provisions establishes a preference for American architectural and engineering services where the services are in Japan, NATO member countries, and the Arabian Gulf.

Section 112 of the General Provisions establishes a preference for American contractors for military construction in the United States territories and possessions in the Pacific and on Kwajalein Atoll, or in the Arabian Gulf, except bids by Marshallese contractors for military construction on Kwajalein Atoll.

Section 113 of the General Provisions requires the Secretary of Defense to give prior notice to Congress of military exercises where construction costs exceed $100,000.

Section 114 of the General Provisions limits obligations to no more than 20 percent during the last two months of the fiscal year.

Section 115 of the General Provisions permits DOD to make available funds appropriated in prior years for new projects authorized during the current session of Congress.

Section 116 of the General Provisions permits the use of expired or lapsed funds to pay the cost of supervision for any project being completed with lapsed funds.

Section 117 of the General Provisions permits obligation of funds from more than one fiscal year to execute a construction project, provided that the total obligation for such project is consistent with the total amount appropriated for the project.

Section 118 of the General Provisions allows the transfer of expired funds to the `Foreign Currency Fluctuations, Construction, Defense' account.

Section 119 of the General Provisions requires the Secretary of Defense to report annually on actions taken during the current fiscal year to encourage other member nations of the NATO, Japan, Korea, and United States allies in the Arabian Gulf to assume a greater share of defense costs.

Section 120 of the General Provisions authorizes the transfer of proceeds from `Base Realignment and Closure Account, Part I' to the continuing Base Realignment and Closure accounts.

Section 121 of the General Provisions prohibits the availability of funds to any entity that violates the Buy American Act.

Section 122 of the General Provisions states the Sense of the Congress notifying recipients of equipment or products authorized to be purchased with financial assistance provided in this Act to purchase American-made equipment and products.

Section 123 of the General Provisions permits the transfer of funds from Family Housing, Construction accounts to the DOD Family Housing Improvement Fund. New language proposed by the Administration is included.

Section 124 of the General Provisions requires the Secretary of Defense to notify congressional defense committees of all family housing privatization solicitations and agreements which contain any clause providing consideration for base realignment and closure, force reductions, and extended deployments.

Section 125 of the General Provisions provides transfer authority to the Homeowners Assistance Program. New language proposed by the Administration is included.

Section 126 of the General Provisions requires that appropriations from this Act be the sole source of all operation and maintenance for flag and general officer quarter houses and limits the repair on these quarters to $35,000 per year. Language proposed by the Administration is not included.

Section 127 of the General Provisions authorizes the Navy to use gift funds until September 30, 2006, to renovate the historic residences of the Marine Corps at 8th and I in Washington, D.C.

Section 128 of the General Provisions rescinds $44,627,000 from various accounts to reflect savings from favorable foreign currency fluctuations.

Section 129 of the General Provisions limits funds from being transferred from this appropriation measure into any new instrumentality without authority from an appropriation Act.

Section 130 of the General Provisions limits funds from being expended to prepare conveyance documents at the former Fort Ord in California, intended for use for housing development, as defined in the redevelopment plant for Fort Ord.

Section 131 of the General Provisions transfers amounts appropriated for a physical fitness center at Camp Kyle, Korea, to a similar project at Camp Bonifas, Korea.

HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

The following items are included in accordance with various requirements of the rules of the House of Representatives.

CHANGES IN APPLICATION OF EXISTING LAW

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House of Representatives, the following statements are submitted describing the effect of provisions in the accompanying bill that directly or indirectly change the application of existing law.

Language is included in various parts of the bill to continue on-going activities that require annual authorization or additional legislation, which to date has not been enacted.

The bill includes a number of provisions which place limitations on the use of funds in the bill or change existing limitations and which might, under some circumstances, be construed as changing the application of existing law.

Language is included that enables various appropriations to remain available for more than one year for some programs for which the basic authority legislation does not presently authorize such extended availability.

Language is included under Military Construction, Defense-wide, which permits the Secretary of Defense to transfer funds to other accounts for military construction or family housing.

Language is included under Military Construction, Defense-wide, conditioning Department of Army's receipt of $84,400,000 on notification that it is able to meet milestones for construction of chemical weapons destruction facilities.

Language is included under Base Realignment and Closure Account, Part IV, limiting the amount of funds that shall be available solely for environmental restoration.

Language is included under the General Provisions authorizing gift funds to be used to renovate the Marine Corps Barracks at 8th and I in Washington, D.C.

Language is included in the General Provisions limiting funds from this appropriation measure from being transferred to any new government instrumentality without authority from an appropriation Act.

Language is included in the General Provisions limiting funds from being expended to prepare conveyance documents at the former Fort Ord in California.

Language is included in the General Provisions that transfers amounts appropriated for a physical fitness center at Camp Kyle, Korea, to a similar project at Camp Bonifas, Korea.

DEFINITION OF PROGRAM, PROJECT AND ACTIVITY

For the purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177) as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100-119), and by the Budget Enforcement Act of 1990 (Public Law 101-508), the following information provides the definitions of the terms `program, project and activity' for appropriations contained in the Military Construction Appropriations Act. The term `program, project, and activity' shall include the most specific level of budget items, identified in the Military Construction Appropriations Act, 2002, the accompanying House and Senate reports, and the conference report of the joint explanatory statement of the managers of the committee of conference.

In carrying out any sequestrations, the Department of Defense (DOD) and related agencies shall carry forth the sequestration order in a manner that would not adversely affect or alter Congressional policies and priorities established for the DoD and the related agencies, and no program, project, and activity should be eliminated or reduced to a level of funding that would adversely affect DOD's ability to effectively continue any program, project, and activity.

APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House of Representatives, the following table lists the appropriations in the accompanying bill which are not authorized by law:


[Dollars in thousands]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Agency/Program                                              Last year of authorization Authorization level Appropriations in last year of authorization Appropriations in this bill 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Military Construction, Army                                                       2002          $1,762.556                                   $1,762,556                  $1,514,557 
Military Construction, Navy                                                       2002           1,126,633                                    1,126,633                   1,245,765 
Military Construction, Air Force                                                  2002           1,237,580                                    1,237,580                     964,302 
Military Construction, Defense-wide                                               2002             806,278                                      806,278                     901,066 
Military Construction, Army National Guard                                        2002             405,565                                      405,565                     159,672 
Military Construction, Army National Guard                                        2002             253,386                                      253,386                     119,613 
Military Construction, Army Reserve                                               2002             167,019                                      167,019                      99,059 
Military Construction, Naval Reserve                                              2002              52,276                                       52,276                      75,821 
Military Construction, Air Force Reserve                                          2002              74,857                                       74,857                      75,276 
North Atlantic Treaty Organization Security Investment Prog                       2002             162,600                                      162,600                     168,200 
Family Housing Construction, Army                                                 2002             312,742                                      312,742                     283,346 
Family Housing Operation and Maintenance, Army                                    2002           1,089,573                                    1,089,573                   1,119,007 
Family Housing Construction, Navy and Marine Corps                                2002             331,780                                      331,780                     380,268 
Family Housing Operation and Maintenance, Navy and Marine                         2002             910,095                                      910,095                     867,788 
Family Housing Construction, Air Force                                            2002             550,703                                      550,703                     689,824 
Family Housing Operation and Maintenance, Air Force                               2002             844,715                                      844,715                     874,050 
Family Housing Construction, Defense-wide                                         2002                 250                                          250                       5,480 
Family Housing Operation and Maintenance, Defense-wide                            2002              43,762                                       43,762                      42,395 
Department of Defense Family Housing Improvement Fund                             2002               2,000                                        2,000                       2,000 
Howeowners Assistance Fund, Defense                                               2002              10,119                                       10,119                           0 
Base Realignment and Closure                                                      2002             632,713                                      632,713                     545,138 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, a statement is required describing the transfer of funds provided in the accompanying bill. Sections 118, 120, 123, 125, and 129 of the General Provisions, and language included under `Military Construction, Defense-wide' provide certain transfer authority.

RESCISSION OF FUNDS

In compliance with clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the Committee recommends rescissions of:

      Military Construction, Army--$18,676,000

      Military Construction, Navy--$1,340,000

      Military Construction, Air Force--$10,281,000

      Military Construction, Defense-wide--$2,976,000

      Family Housing Construction, Army--$4,920,000

      Family Housing Construction, Navy--$2,652,000

      Family Housing Construction, Air Force--$8,782,000

CONSTITUTIONAL AUTHORITY

Clause 3(d)(1) of rule XIII of the Rules of the House of Representatives states that:

Each report of a committee on a bill or joint resolution of a public character shall include a statement citing the specific powers granted to the Congress in the Constitution to enact the law proposed by the bill or joint resolution.

The Committee on Appropriations bases its authority to report this legislation from Clause 7 of Section 9 of Article I of the Constitution of the United States of America which states:

No money shall be drawn from the Treasury but in consequence of Appropriations made by law * * *

Appropriations contained in this bill are made pursuant to this specific power granted by the Constitution.

COMPARISONS WITH BUDGET RESOLUTION

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives requires an explanation of compliance with section 308(a)(1)(A) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, which requires that the report accompanying a bill providing new budget authority contain a statement detailing how that authority compares with the reports submitted under section 302 of the Act for the most recently agreed to concurrent resolution on the budget for the fiscal year from the Committee's section of 302(a) allocation.


[In millions of dollars]
-----------------------------------------------------------------
              302(b) allocation             This bill 1          
               Budget authority Outlays Budget authority Outlays 
-----------------------------------------------------------------
Discretionary            10,083  10,058           10,083  10,052 
Mandatory                     0       0                0       0 
-----------------------------------------------------------------

FIVE-YEAR PROJECTION OF OUTLAYS

In compliance with section 308(a)(1)(B) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, the following table contains five-year projections associated with the budget authority provided in the accompanying bill:

[In thousands of dollars]
Budget authority, fiscal year 2003 $10,083,000
Outlays:
2003 2,703,000
2004 3,797,000
2005 2,225,000
2006 791,000
2007 and beyond 522,000

The bill will not affect the levels of revenues, tax expenditures, direct loan obligations, or primary loan guarantee commitments under existing law.

FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, the financial assistance to State and local governments is as follows:

[In millions of dollars]
New budget authority 0
Fiscal year 2001 outlays resulting therefrom 0

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding:

The Committee on Appropriations considers program performance, including a program's success in developing and attaining outcome-related goals and objectives, in developing funding recommendations.

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House of Representatives, the results of each roll call vote on an amendment or on the motion to report, together with the names of those voting for and those voting against, are printed below:

There were no recorded votes.

STATE LIST

The following is a complete listing, by State and country, of the Committee's recommendations for military construction and family housing projects:

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