[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5122 Reported in House (RH)]

Union Calendar No. 253
109th CONGRESS
2d Session
H. R. 5122

[Report No. 109-452]

To authorize appropriations for fiscal year 2007 for military
activities of the Department of Defense, to prescribe military
personnel strengths for fiscal year 2007, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 6, 2006

Mr. Hunter (for himself and Mr. Skelton) (both by request) introduced
the following bill; which was referred to the Committee on Armed
Services

May 5, 2006

Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on April
6, 2006]

_______________________________________________________________________

A BILL

To authorize appropriations for fiscal year 2007 for military
activities of the Department of Defense, to prescribe military
personnel strengths for fiscal year 2007, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``National Defense Authorization Act
for Fiscal Year 2007''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

(a) Divisions.--This Act is organized into three divisions as
follows:
(1) Division A--Department of Defense Authorizations.
(2) Division B--Military Construction Authorizations.
(3) Division C--Department of Energy National Security
Authorizations and Other Authorizations.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.

Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Family of Medium Tactical
Vehicles.
Sec. 112. Multiyear procurement authority for MH-60R helicopters and
mission equipment.
Sec. 113. Funding profile for Modular Force Initiative of the Army.
Sec. 114. Bridge to Future Networks program.

Subtitle C--Navy Programs

Sec. 121. Attack submarine force structure.
Sec. 122. Adherence to Navy cost estimates for CVN-21 class of aircraft
carriers.
Sec. 123. Adherence to Navy cost estimates for LHA Replacement
amphibious assault ship program.
Sec. 124. Adherence to Navy cost estimates for San Antonio (LPD-17)
class amphibious ship program.
Sec. 125. Multiyear procurement authority for V-22 tiltrotor aircraft
program.
Sec. 126. Quality control in procurement of ship critical safety items
and related services.
Sec. 127. DD(X) Next-Generation Destroyer program.
Sec. 128. Sense of Congress that the Navy make greater use of nuclear-
powered propulsion systems in its future
fleet of surface combatants.

Subtitle D--Air Force Programs

Sec. 131. Requirement for B-52 force structure.
Sec. 132. Strategic airlift force structure.
Sec. 133. Limitation on retirement of U-2 aircraft.
Sec. 134. Multiyear procurement authority for F-22A Raptor fighter
aircraft.
Sec. 135. Limitation on retirement of KC-135E aircraft during fiscal
year 2007.
Sec. 136. Limitation on retirement of F-117A aircraft during fiscal
year 2007.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Alternate engine for Joint Strike Fighter.
Sec. 212. Extension of authority to award prizes for advanced
technology achievements.
Sec. 213. Extension of Defense Acquisition Challenge Program.
Sec. 214. Future Combat Systems milestone review.
Sec. 215. Independent cost analyses for Joint Strike Fighter engine
program.
Sec. 216. Dedicated amounts for implementing or evaluating DD(X) and
CVN-21 proposals under Defense Acquisition
Challenge Program.

Subtitle C--Ballistic Missile Defense

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.

Subtitle D--Other Matters

Sec. 231. Review of test and evaluation policies and practices to
address emerging acquisition approaches.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense Programs.

Subtitle B--Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program
manager.
Sec. 312. Identification and monitoring of military munitions disposal
sites in ocean waters extending from United
States coast to outer boundary of outer
Continental Shelf.
Sec. 313. Reimbursement of Environmental Protection Agency for certain
costs in connection with Moses Lake
Wellfield Superfund Site, Moses Lake,
Washington.
Sec. 314. Funding of cooperative agreements under environmental
restoration program.
Sec. 315. Analysis and report regarding contamination and remediation
responsibility for Norwalk Defense Fuel
Supply Point, Norwalk, California.

Subtitle C--Workplace and Depot Issues

Sec. 321. Extension of exclusion of certain expenditures from
percentage limitation on contracting for
depot-level maintenance.
Sec. 322. Minimum capital investment for Air Force depots.
Sec. 323. Extension of temporary authority for contractor performance
of security guard functions.

Subtitle D--Reports

Sec. 331. Report on Nuclear Attack Submarine Depot Maintenance.
Sec. 332. Report on Navy Fleet Response Plan.
Sec. 333. Report on Navy surface ship rotational crew programs.
Sec. 334. Report on Army live-fire ranges in Hawaii.
Sec. 335. Comptroller General report on joint standards and protocols
for access control systems at Department of
Defense installations.
Sec. 336. Report on Personnel Security Investigations for Industry and
National Industrial Security Program.

Subtitle E--Other Matters

Sec. 341. Department of Defense strategic policy on prepositioning of
materiel and equipment.
Sec. 342. Authority to make Department of Defense horses available for
adoption at end of useful working life.
Sec. 343. Sale and use of proceeds of recyclable munitions materials.
Sec. 344. Capital security cost sharing.
Sec. 345. Prioritization of funds within Navy mission operations, ship
maintenance, combat support forces, and
weapons system support.
Sec. 346. Prioritization of funds within Army reconstitution and
transformation.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum
levels.
Sec. 403. Additional authority for increases of Army and Marine Corps
active duty end strengths for fiscal years
2008 and 2009.

Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the
reserve components.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2007 limitation on number of non-dual status
technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on
active duty for operational support.

Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Sec. 501. Authorized strength of Navy Reserve flag officers.
Sec. 502. Standardization of grade of senior dental officer of the Air
Force with that of senior dental officer of
the Army.
Sec. 503. Management of chief warrant officers.
Sec. 504. Reduction in time-in-grade requirement for promotion to
captain in the Army, Air Force, and Marine
Corps and lieutenant in the Navy.
Sec. 505. Military status of officers serving in certain Intelligence
Community positions.

Subtitle B--Reserve Component Management

Sec. 511. Revisions to reserve call-up authority.
Sec. 512. Military retirement credit for certain service by National
Guard members performed while in a State
duty status immediately after the terrorist
attacks of September 11, 2001.
Sec. 513. Report on private-sector promotion and constructive
termination of members of the reserve
components called or ordered to active
service.

Subtitle C--Education and Training

Sec. 521. Authority to permit members who participate in the guaranteed
reserve forces duty scholarship program to
participate in the health professions
scholarship program and serve on active
duty.
Sec. 522. Junior Reserve Officers' Training Corps instruction
eligibility expansion.
Sec. 523. Authority for United States Military Academy and United
States Air Force Academy permanent military
professors to assume command positions
while on periods of sabbatical.
Sec. 524. Expansion of service academy exchange programs with foreign
military academies.
Sec. 525. Review of legal status of Junior ROTC program.

Subtitle D--General Service Authorities

Sec. 531. Test of utility of test preparation guides and education
programs in enhancing recruit candidate
performance on the Armed Services
Vocational Aptitude Battery (ASVAB) and
Armed Forces Qualification Test (AFQT).
Sec. 532. Nondisclosure of selection board proceedings.
Sec. 533. Report on extent of provision of timely notice of long-term
deployments.

Subtitle E--Authorities Relating to Guard and Reserve Duty

Sec. 541. Title 10 definition of Active Guard and Reserve duty.
Sec. 542. Authority for Active Guard and Reserve duties to include
support of operational missions assigned to
the reserve components and instruction and
training of active-duty personnel.
Sec. 543. Governor's authority to order members to Active Guard and
Reserve duty.
Sec. 544. National Guard officers authority to command.
Sec. 545. Expansion of operations of civil support teams.

Subtitle F--Decorations and Awards

Sec. 551. Authority for presentation of Medal of Honor Flag to living
Medal of Honor recipients and to living
primary next-of-kin of deceased Medal of
Honor recipients.
Sec. 552. Cold War Victory Medal.
Sec. 553. Posthumous award of Purple Heart for prisoners of war who die
in or due to captivity.
Sec. 554. Advancement on the retired list of certain decorated retired
Navy and Marine Corps officers.
Sec. 555. Report on Department of Defense process for awarding
decorations.

Subtitle G--Matters Relating to Casualties

Sec. 561. Criteria for removal of member from temporary disability
retired list.
Sec. 562. Department of Defense computer/electronic accommodations
program for severely wounded members.
Sec. 563. Transportation of remains of casualties dying in a theater of
combat operations.
Sec. 564. Annual budget display of funds for POW/MIA activities of
Department of Defense.

Subtitle H--Assistance to Local Educational Agencies for Defense
Dependents Education

Sec. 571. Continuation of authority to assist local educational
agencies that benefit dependents of members
of the Armed Forces and Department of
Defense civilian employees.
Sec. 572. Enrollment in defense dependents' education system of
dependents of foreign military members
assigned to Supreme Headquarters Allied
Powers, Europe.

Subtitle I--Postal Benefits

Sec. 575. Postal benefits program for members of the Armed Forces.
Sec. 576. Funding.
Sec. 577. Duration.

Subtitle J--Other Matters

Sec. 581. Reduction in Department of Defense accrual contributions to
Department of Defense Military Retirement
Fund.
Sec. 582. Dental Corps of the Bureau of Medicine and Surgery.
Sec. 583. Permanent authority for presentation of recognition items for
recruitment and retention purposes.
Sec. 584. Report on feasibility of establishment of Military Entrance
Processing Command station on Guam.
Sec. 585. Persons authorized to administer enlistment and appointment
oaths.
Sec. 586. Repeal of requirement for periodic Department of Defense
Inspector General assessments of voting
assistance compliance at military
installations.
Sec. 587. Physical evaluation boards.
Sec. 588. Department of Labor transitional assistance program.
Sec. 589. Revision in Government contributions to Medicare-Eligible
Retiree Health Care Fund.
Sec. 590. Military chaplains.
Sec. 591. Report on personnel requirements for airborne assets
identified as Low-Density, High-Demand
Airborne Assets.
Sec. 592. Entrepreneurial Service Members Empowerment Task Force.
Sec. 593. Comptroller General report on military conscientious
objectors.
Sec. 594. Commission on the National Guard and Reserves.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2007.
Sec. 602. Targeted increase in basic pay rates.
Sec. 603. Conforming change in general and flag officer pay cap to
reflect increase in pay cap for Senior
Executive Service personnel.
Sec. 604. Availability of second basic allowance for housing for
certain reserve component or retired
members serving in support of contingency
operations.
Sec. 605. Extension of temporary continuation of housing allowance for
dependents of members dying on active duty
to spouses who are also members.
Sec. 606. Clarification of effective date of prohibition on
compensation for correspondence courses.
Sec. 607. Payment of full premium for coverage under Servicemembers'
Group Life Insurance program during service
in Operation Enduring Freedom or Operation
Iraqi Freedom.

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for
reserve forces.
Sec. 612. Extension of bonus and special pay authorities for health
care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear
officers.
Sec. 614. Extension of other bonus, special pay, and separation pay
authorities.
Sec. 615. Expansion of eligibility of dental officers for additional
special pay.
Sec. 616. Increase in maximum annual rate of special pay for Selected
Reserve health care professionals in
critically short wartime specialties.
Sec. 617. Authority to provide lump sum payment of nuclear officer
incentive pay.
Sec. 618. Increase in maximum amount of nuclear career accession bonus.
Sec. 619. Increase in maximum amount of incentive bonus for transfer
between armed forces.
Sec. 620. Clarification regarding members of the Army eligible for
bonus for referring other persons for
enlistment in the Army.
Sec. 621. Pilot program for recruitment bonus for critical health care
specialties.
Sec. 622. Enhancement of temporary program of voluntary separation pay
and benefits.
Sec. 623. Additional authorities and incentives to encourage retired
members and reserve component members to
volunteer to serve on active duty in high-
demand, low-density assignments.

Subtitle C--Travel and Transportation Allowances

Sec. 631. Authority to pay costs associated with delivery of motor
vehicle to storage location selected by
member and subsequent removal of vehicle.
Sec. 632. Transportation of additional motor vehicle of members on
change of permanent station to or from
nonforeign areas outside the continental
United States.
Sec. 633. Travel and transportation allowances for transportation of
family members incident to illness or
injury of members.

Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Military Survivor Benefit Plan beneficiaries under insurable
interest coverage.
Sec. 642. Retroactive payment of additional death gratuity for certain
members not previously covered.
Sec. 643. Equity in computation of disability retired pay for reserve
component members wounded in action.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality
Benefits

Sec. 651. Treatment of price surcharges of tobacco products and certain
other merchandise sold at commissary
stores.
Sec. 652. Limitation on use of Department of Defense lease authority to
undermine commissaries and exchanges and
other morale, welfare, and recreation
programs and nonappropriated fund
instrumentalities.
Sec. 653. Use of nonappropriated funds to supplement or replace
appropriated funds for construction of
facilities of exchange stores system and
other nonappropriated fund
instrumentalities, military lodging
facilities, and community facilities.
Sec. 654. Report on cost effectiveness of purchasing commercial
insurance for commissary and exchange
facilities and facilities of other morale,
welfare, and recreation programs and
nonappropriated fund instrumentalities.

Subtitle F--Other Matters

Sec. 661. Repeal of annual reporting requirement regarding effects of
recruitment and retention initiatives.
Sec. 662. Pilot project regarding providing golf carts accessible for
disabled persons at military golf courses.
Sec. 663. Enhanced authority to remit or cancel indebtedness of members
of the Armed Forces incurred on active
duty.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual
assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care
for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening.
Sec. 704. Prohibition on increases in certain health care costs for
members of the uniformed services.
Sec. 705. Services of mental health counselors.
Sec. 706. Demonstration project on coverage of selected over-the-
counter medications under the pharmacy
benefit program.
Sec. 707. Requirement to reimburse certain travel expenses of certain
beneficiaries covered by TRICARE for life.
Sec. 708. Inflation adjustment of differential payments to children's
hospitals participating in TRICARE program.
Sec. 709. Expanded eligibility of Selected Reserve members under
TRICARE program.
Sec. 710. Extension to TRICARE of medicare prohibition of financial
incentives not to enroll in group health
plan.

Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military
health care.
Sec. 712. Study and plan relating to chiropractic health care services.
Sec. 713. Comptroller General study and report on Defense Health
Program.
Sec. 714. Transfer of custody of the Air Force Health Study assets to
Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of Reserve
Components to retain civilian health care
coverage.

Subtitle C--Other Matters

Sec. 721. Costs of incentive payments to employees for TRICARE
enrollment made unallowable for
contractors.
Sec. 722. Requirement for military medical personnel to be trained in
preservation of remains.

Subtitle D--Pharmacy Benefits Program Improvements

Sec. 731. TRICARE pharmacy program cost-share requirements.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements Management Certification Training Program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report
requirements.
Sec. 804. Quarterly updates on implementation of acquisition reform in
the Department of Defense.
Sec. 805. Establishment of defense challenge process for critical cost
growth threshold breaches in major defense
acquisition programs.
Sec. 806. Market research required for major defense acquisition
programs before proceeding to Milestone B.

Subtitle B--Acquisition Policy and Management

Sec. 811. Applicability of statutory executive compensation cap made
prospective.
Sec. 812. Prohibition on procurement from beneficiaries of foreign
subsidies.
Sec. 813. Time-certain development for Department of Defense
information technology business systems.
Sec. 814. Establishment of Panel on Contracting Integrity.

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Limitations

Sec. 821. Extension of special temporary contract closeout authority.
Sec. 822. Limitation on contracts for the acquisition of certain
services.
Sec. 823. Use of Federal supply schedules by State and local
governments for goods and services for
recovery from natural disasters, terrorism,
or nuclear, biological, chemical, or
radiological attack.
Sec. 824. Waivers to extend task order contracts for advisory and
assistance services.
Sec. 825. Enhanced access for small business.
Sec. 826. Procurement goal for Hispanic-serving institutions.
Sec. 827. Prohibition on defense contractors requiring licenses or fees
for use of military likenesses and
designations.

Subtitle D--United States Defense Industrial Base Provisions

Sec. 831. Protection of strategic materials critical to national
security.
Sec. 832. Strategic Materials Protection Board.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Management

Sec. 901. Standardization of statutory references to ``national
security system'' within laws applicable to
Department of Defense.
Sec. 902. Correction of reference to predecessor of Defense Information
Systems Agency.
Sec. 903. Addition to membership of specified council.
Sec. 904. Consolidation and standardization of authorities relating to
Department of Defense Regional Centers for
Security Studies.
Sec. 905. Redesignation of the Department of the Navy as the Department
of the Navy and Marine Corps.

Subtitle B--Space Activities

Sec. 911. Designation of successor organizations for the disestablished
Interagency Global Positioning Executive
Board.
Sec. 912. Extension of authority for pilot program for provision of
space surveillance network services to non-
United States Government entities.
Sec. 913. Operationally Responsive Space.

Subtitle C--Chemical Demilitarization Program

Sec. 921. Transfer to Secretary of the Army of responsibility for
Assembled Chemical Weapons Alternatives
Program.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
site versus on-site treatment and disposal
of hydrolysate derived from neutralization
of VX nerve gas at Newport Chemical Depot,
Indiana.
Sec. 923. Sense of Congress regarding the safe and expeditious disposal
of chemical weapons.

Subtitle D--Intelligence-Related Matters

Sec. 931. Repeal of termination of authority of Secretary of Defense to
engage in commercial activities as security
for intelligence collection activities
abroad.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year
2006.
Sec. 1003. Increase in fiscal year 2006 general transfer authority.
Sec. 1004. United States contribution to NATO common-funded budgets in
fiscal year 2007.
Sec. 1005. Report on budgeting for fluctuations in fuel cost rates.
Sec. 1006. Reduction in authorizations due to savings resulting from
lower-than-expected inflation.

Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Transfer of naval vessels to foreign nations based upon
vessel class.
Sec. 1012. Overhaul, repair, and maintenance of vessels in foreign
shipyards.
Sec. 1013. Report on options for future lease arrangement for Guam
Shipyard.
Sec. 1014. Shipbuilding Industrial Base Improvement Program.
Sec. 1015. Transfer of operational control of certain patrol coastal
ships to Coast Guard.
Sec. 1016. Limitation on leasing of foreign-built vessels.
Sec. 1017. Overhaul, repair, and maintenance of vessels carrying
Department of Defense cargo.
Sec. 1018. Riding gang member documentation requirement.

Subtitle C--Counter-Drug Activities

Sec. 1021. Restatement in title 10, United States Code, and revision of
Department of Defense authority to provide
support for counter-drug activities of
Federal, State, local, and foreign law
enforcement agencies.
Sec. 1022. Restatement in title 10, United States Code, and revision of
Department of Defense authority to provide
support for counter-drug activities of
certain foreign governments.
Sec. 1023. Extension of authority to support unified counterdrug and
counterterrorism campaign in Colombia.
Sec. 1024. Continuation of reporting requirement regarding Department
of Defense expenditures to support foreign
counter-drug activities.
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan
and South and Central Asian regions.

Subtitle D--Other Matters

Sec. 1031. Revision to authorities relating to Commission on the
implementation of the New Strategic Posture
of the United States.
Sec. 1032. Enhancement to authority to pay rewards for assistance in
combating terrorism.
Sec. 1033. Report on assessment process of Chairman of the Joint Chiefs
of Staff relating to Global War on
Terrorism.
Sec. 1034. Presidential report on improving interagency support for
United States 21st century national
security missions.
Sec. 1035. Quarterly reports on implementation of 2006 Quadrennial
Defense Review Report.
Sec. 1036. Increased hunting and fishing opportunities for members of
the Armed Forces, retired members, and
disabled veterans .
Sec. 1037. Technical and clerical amendments.
Sec. 1038. Database of emergency response capabilities.
Sec. 1039. Information on certain criminal investigations and
prosecutions.
Sec. 1040. Date for final report of EMP Commission.

TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Increase in authorized number of defense intelligence senior
executive service employees.
Sec. 1102. Authority for Department of Defense to pay full replacement
value for personal property claims of
civilians.
Sec. 1103. Accrual of annual leave for members of the uniformed
services performing dual employment.
Sec. 1104. Death gratuity authorized for Federal employees.

TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined
operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing
agreements to lend certain military
equipment to foreign forces in Iraq and
Afghanistan for personnel protection and
survivability.
Sec. 1203. Recodification and revision to law relating to Department of
Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism
Fellowship Program.
Sec. 1205. Capstone overseas field studies trips to People's Republic
of China and Republic of China on Taiwan.
Sec. 1206. Military educational exchanges between senior officers and
officials of the United States and Taiwan.

Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. Procurement restrictions against foreign persons that
transfer certain defense articles and
services to the People's Republic of China.

Subtitle C--Other Matters

Sec. 1221. Execution of the President's policy to make available to
Taiwan diesel electric submarines.

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and
funds.
Sec. 1302. Funding allocations.
Sec. 1303. Temporary authority to waive limitation on funding for
chemical weapons destruction facility in
Russia.
Sec. 1304. National Academy of Sciences study.

TITLE XIV--HOMELAND DEFENSE TECHNOLOGY TRANSFER

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Creation of Homeland Defense Technology Transfer Consortium.

TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI
FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.

TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year
2004 and 2005 projects.

TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition
projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.

TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land
acquisition projects.
Sec. 2402. Family housing.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorized base closure and realignment activities funded
through Department of Defense Base Closure
Account 2005.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Modification of authority to carry out certain fiscal year
2006 projects.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land
acquisition projects.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be
specified by law.
Sec. 2702. Effective date.

TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

Subtitle A--Military Construction Program and Military Family Housing
Changes

Sec. 2801. Increase in maximum annual amount authorized to be obligated
for emergency military construction.
Sec. 2802. Applicability of local comparability of room pattern and
floor area requirements to construction,
acquisition, and improvement to military
unaccompanied housing.
Sec. 2803. Authority to use proceeds from sale of military family
housing to support military housing
privatization initiative.
Sec. 2804. Repeal of special requirement for military construction
contracts on Guam.
Sec. 2805. Congressional notification of cancellation ceiling for
Department of Defense energy savings
performance contracts.
Sec. 2806. Expansion of authority to convey property at military
installations to support military
construction.
Sec. 2807. Pilot projects for acquisition or construction of military
unaccompanied housing.
Sec. 2808. Consideration of alternative and more efficient uses for
general officer and flag officer quarters
in excess of 6,000 square feet.
Sec. 2809. Repeal of temporary minor military construction program.
Sec. 2810. One-year extension of temporary, limited authority to use
operation and maintenance funds for
construction projects outside the United
States.

Subtitle B--Real Property and Facilities Administration

Sec. 2821. Consolidation of Department of Defense authorities regarding
granting of easements for rights-of-way.
Sec. 2822. Authority to grant restrictive easements in connection with
land conveyances.
Sec. 2823. Maximum term of leases for structures and real property
relating to structures in foreign countries
needed for purposes other than family
housing.
Sec. 2824. Consolidation of laws relating to transfer of Department of
Defense real property within the department
and to other Federal agencies.
Sec. 2825. Congressional notice requirements in advance of acquisition
of land by condemnation for military
purposes.

Subtitle C--Base Closure and Realignment

Sec. 2831. Treatment of lease proceeds from military installations
approved for closure or realignment after
January 1, 2005.

Subtitle D--Land Conveyances

Sec. 2841. Land conveyance, Naval Air Station, Barbers Point, Hawaii.
Sec. 2842. Modification of land acquisition authority, Perquimans
County, North Carolina.
Sec. 2843. Land conveyance, Radford Army Ammunition Plant, Pulaski
County, Virginia.

Subtitle E--Other Matters

Sec. 2851. Availability of community planning assistance relating to
encroachment of civilian communities on
military facilities used for training by
the Armed Forces.
Sec. 2852. Prohibitions against making certain military airfields or
facilities available for use by civil
aircraft.
Sec. 2853. Naming housing facility at Fort Carson, Colorado, in honor
of Joel Hefley, a member of the House of
Representatives.
Sec. 2854. Naming Navy and Marine Corps Reserve Center at Rock Island,
Illinois, in honor of Lane Evans, a member
of the House of Representatives.
Sec. 2855. Naming of research laboratory at Air Force Rome Research
Site, Rome, New York, in honor of Sherwood
L. Boehlert, a member of the House of
Representatives.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Plan for transformation of National Nuclear Security
Administration nuclear weapons complex.
Sec. 3112. Extension of Facilities and Infrastructure Recapitalization
Program.
Sec. 3113. Utilization of contributions to Global Threat Reduction
Initiative.
Sec. 3114. Utilization of contributions to Second Line of Defense
program.
Sec. 3115. Two-year extension of authority for appointment of certain
scientific, engineering, and technical
personnel.
Sec. 3116. National Academy of Sciences study of quantification of
margins and uncertainty methodology for
assessing and certifying the safety and
reliability of the nuclear stockpile.
Sec. 3117. Consolidation of counterintelligence programs of Department
of Energy and National Nuclear Security
Administration.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously
authorized disposals from National Defense
Stockpile.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2007.
Sec. 3502. Limitation on transfer of Maritime Security Fleet operating
agreements.
Sec. 3503. Applicability to certain Maritime Administration vessels of
limitations on overhaul, repair, and
maintenance of vessels in foreign
shipyards.
Sec. 3504. Vessel transfer authority.
Sec. 3505. United States Merchant Marine Academy graduates: alternate
service requirements.
Sec. 3506. United States Merchant Marine Academy graduates: service
obligation performance reporting
requirement.
Sec. 3507. Temporary authority to transfer obsolete combatant vessels
to Navy for disposal.
Sec. 3508. Temporary requirement to maintain Ready Reserve Force.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

For purposes of this Act, the term ``congressional defense
committees'' has the meaning given that term in section 101(a)(16) of
title 10, United States Code.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.

Subtitle B--Army Programs

Subtitle C--Navy Programs

Subtitle D--Air Force Programs

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

Funds are hereby authorized to be appropriated for fiscal year 2007
for procurement for the Army as follows:
(1) For aircraft, $3,714,783,000.
(2) For missiles, $1,490,898,000.
(3) For weapons and tracked combat vehicles,
$2,335,004,000.
(4) For ammunition, $1,691,475,000.
(5) For other procurement, $6,970,079,000.
(6) For National Guard Equipment, $318,000,000.

SEC. 102. NAVY AND MARINE CORPS.

(a) Navy.--Funds are hereby authorized to be appropriated for
fiscal year 2007 for procurement for the Navy as follows:
(1) For aircraft, $10,760,671,000.
(2) For weapons, including missiles and torpedoes,
$2,517,020,000.
(3) For shipbuilding and conversion, $11,183,153,000.
(4) For other procurement, $5,042,766,000.
(b) Marine Corps.--Funds are hereby authorized to be appropriated
for fiscal year 2007 for procurement for the Marine Corps in the amount
of $1,223,813,000.
(c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
to be appropriated for fiscal year 2007 for procurement of ammunition
for the Navy and the Marine Corps in the amount of $758,793,000.

SEC. 103. AIR FORCE.

Funds are hereby authorized to be appropriated for fiscal year 2007
for procurement for the Air Force as follows:
(1) For aircraft, $13,042,630,000.
(2) For ammunition, $1,076,749,000.
(3) For missiles, $4,171,495,000.
(4) For other procurement, $15,428,636,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

Funds are hereby authorized to be appropriated for fiscal year 2007
for Defense-wide procurement in the amount of $2,856,461,000.

Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR FAMILY OF MEDIUM TACTICAL
VEHICLES.

(a) Authority.--The Secretary of the Army may, in accordance with
section 2306b of title 10, United States Code, enter into a multiyear
contract for the Family of Medium Tactical Vehicles (FMTV) program
beginning with the fiscal year 2008 program year.
(b) Contract Requirement.--Any multiyear contract or extension
entered into under this section for procurement under the Family of
Medium Tactical Vehicles program shall provide for incorporation of
improvements in the areas of performance capability and survivability
from lessons learned from operations involving the Global War on
Terrorism (as well as from product improvement programs carried out for
the Family of Medium Tactical Vehicles program)..
(c) Limitation on Term of Contract.--Notwithstanding subsection (k)
of section 2306b of title 10, United States Code, a contract or
extension under this section may not be for a period in excess of three
program years.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR MH-60R HELICOPTERS AND
MISSION EQUIPMENT.

(a) MH-60R Helicopter.--Subject to subsection (c), the Secretary of
the Army, acting as executive agent for the Department of the Navy, may
enter into a multiyear contract for the procurement of 144 MH-60R
helicopters.
(b) MH-60R Helicopter Mission Equipment.--Subject to subsection
(c), the Secretary of the Army, acting as executive agent for the
Department of the Navy, may enter into a multiyear contract for the
procurement of MH-60R helicopter mission equipment for the helicopters
covered by a multiyear contract under subsection (a).
(c) Contract Requirements.--Any multiyear contract under this
section--
(1) shall be entered into in accordance with section 2306b
of title 10, United States Code, and shall commence with the
fiscal year 2007 program year; and
(2) shall provide that any obligation of the United States
to make a payment under the contract is subject to the
availability of appropriations for that purpose.
(d) Cost Limitation.--The combined value for the contracts
authorized by subsections (a) and (b) may not exceed $2,600,000,000,
and the average unit cost per helicopter under those contracts may not
exceed $37,790,000.

SEC. 113. FUNDING PROFILE FOR MODULAR FORCE INITIATIVE OF THE ARMY.

The Secretary of the Army shall set forth in the budget
presentation materials of the Army submitted to Congress in support of
the President's budget for any fiscal year after fiscal year 2007, and
in other relevant materials submitted to Congress with respect to the
budget of the Army for any such fiscal year, all amounts for
procurement for the M1A2 Abrams tank System Enhancement Program (SEP)
and for the Bradley A3 fighting vehicle as elements within the amounts
requested for the Modular Force Initiative of the Army, in accordance
with the report of the Army titled ``The Army Modular Force
Initiative'', submitted to Congress in March 2006.

SEC. 114. BRIDGE TO FUTURE NETWORKS PROGRAM.

(a) Limitation on Fiscal Year 2007 Amount.--Of the amount
authorized to be appropriated for the Army for fiscal year 2007 for
Other Procurement, Army, that is available for the program of the Army
designated as the Bridge to Future Networks, not more than 70 percent
shall be made available for obligation until the Secretary of the Army
submits to the congressional defense committees a report on that
program that includes the matters specified in subsection (b).
(b) Matters to Be Included.--The report under subsection (a) shall
include the following:
(1) An analysis of how the Joint Network Node (JNN) element
of the Bridge to Future Networks program and the Warfighter
Information Network-Tactical (WIN-T) program will fit together,
including an analysis of whether there are opportunities to
leverage technologies and equipment from the Joint Network Node
program as part of the development of the Warfighter
Information Network-Tactical program.
(2) A description of the extent to which components of the
Joint Network Node and the Warfighter Information Network-
Tactical programs could be used together as elements of a
single tactical network.
(3) A description of the strategy of the Army for
completing the systems engineering necessary to ensure the end-
to-end interoperability of a single tactical network referred
to in paragraph (2).

Subtitle C--Navy Programs

SEC. 121. ATTACK SUBMARINE FORCE STRUCTURE.

Section 5062 of title 10, United States Code, is amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following new
subsection (c):
``(c) The naval combat forces of the Navy shall include not less
than 48 operational attack submarines. For purposes of this subsection,
an operational attack submarine includes an attack submarine that is
temporarily unavailable for worldwide deployment due to routine or
scheduled maintenance or repair.''.

SEC. 122. ADHERENCE TO NAVY COST ESTIMATES FOR CVN-21 CLASS OF AIRCRAFT
CARRIERS.

(a) Limitation.--
(1) Lead ship.--The total amount obligated or expended from
funds appropriated or otherwise made available for Shipbuilding
and Conversion, Navy, or for any other procurement account, for
the aircraft carrier designated as CVN-21 may not exceed
$10,500,000,000 (as adjusted pursuant to subsection (b)).
(2) Follow-on ships.--The total amount obligated or
expended from funds appropriated or otherwise made available
for Shipbuilding and Conversion, Navy, or for any other
procurement account, for the construction of any ship that is
constructed in the CVN-21 class of aircraft carriers after the
lead ship of that class may not exceed $8,100,000,000 (as
adjusted pursuant to subsection (b)).
(b) Adjustment of Limitation Amount.--The Secretary of the Navy may
adjust the amount set forth in subsection (a) for any ship constructed
in the CVN-21 class of aircraft carriers by the following:
(1) The amounts of increases or decreases in costs
attributable to economic inflation after September 30, 2006.
(2) The amounts of increases or decreases in costs
attributable to compliance with changes in Federal, State, or
local laws enacted after September 30, 2006.
(3) The amounts of outfitting costs and post-delivery costs
incurred for that ship.
(4) The amounts of increases or decreases in costs of that
ship that are attributable to insertion of new technology into
that ship, as compared to the technology baseline as it was
defined in the approved acquisition program baseline estimate
of December 2005.
(c) Limitation on Technology Insertion Cost Adjustment.--The
Secretary of the Navy may use the authority under paragraph (4) of
subsection (b) to adjust the amount set forth in subsection (a) for a
ship referred to in that subsection with respect to insertion of new
technology into that ship only if--
(1) the Secretary determines, and certifies to the
congressional defense committees, that insertion of the new
technology would lower the life-cycle cost of the ship; or
(2) the Secretary determines, and certifies to the
congressional defense committees, that insertion of the new
technology is required to meet an emerging threat and the
Secretary of Defense certifies to those committees that such
threat poses grave harm to national security.
(d) Written Notice of Change in Amount.--
(1) Requirement.--The Secretary of the Navy shall submit to
the congressional defense committees each year, at the same
time that the budget is submitted under section 1105(a) of
title 31, United States Code, for the next fiscal year, written
notice of any change in the amount set forth in subsection (a)
during the preceding fiscal year that the Secretary has
determined to be associated with a cost referred to in
subsection (b).
(2) Effective date.--The requirement in paragraph (1) shall
become effective with the budget request for the year of
procurement of the first ship referred to in subsection (a).

SEC. 123. ADHERENCE TO NAVY COST ESTIMATES FOR LHA REPLACEMENT
AMPHIBIOUS ASSAULT SHIP PROGRAM.

(a) Limitation.--The total amount obligated or expended from funds
appropriated or otherwise made available for Shipbuilding and
Conversion, Navy, or for any other procurement account, for procurement
of any ship that is constructed under the LHA Replacement (LHA(R))
amphibious assault ship program may not exceed $2,813,600,000 (as
adjusted pursuant to subsection (b)).
(b) Adjustment of Limitation Amount.--The Secretary of the Navy may
adjust the amount set forth in subsection (a) for any ship constructed
under the LHA Replacement amphibious assault ship program by the
following:
(1) The amounts of increases or decreases in costs
attributable to economic inflation after September 30, 2006.
(2) The amounts of increases or decreases in costs
attributable to compliance with changes in Federal, State, or
local laws enacted after September 30, 2006.
(3) The amounts of outfitting costs and post-delivery costs
incurred for that ship.
(4) The amounts of increases or decreases in costs of that
ship that are attributable to insertion of new technology into
that ship, as compared to the technology baseline as it was
defined at the development stage referred to as Milestone B.
(c) Limitation on Technology Insertion Cost Adjustment.--The
Secretary of the Navy may use the authority under paragraph (4) of
subsection (b) to adjust the amount set forth in subsection (a) for a
ship referred to in that subsection with respect to insertion of new
technology into that ship only if--
(1) the Secretary determines, and certifies to the
congressional defense committees, that insertion of the new
technology would lower the life-cycle cost of the ship; or
(2) the Secretary determines, and certifies to the
congressional defense committees, that insertion of the new
technology is required to meet an emerging threat and the
Secretary of Defense certifies to those committees that such
threat poses grave harm to national security.
(d) Written Notice of Change in Amount.--
(1) Requirement.--The Secretary of the Navy shall submit to
the congressional defense committees each year, at the same
time that the budget is submitted under section 1105(a) of
title 31, United States Code, for the next fiscal year, written
notice of any change in the amount set forth in subsection (a)
during the preceding fiscal year that the Secretary has
determined to be associated with a cost referred to in
subsection (b).
(2) Effective date.--The requirement in paragraph (1) shall
become effective with the budget request for the year of
procurement of the first ship referred to in subsection (a).

SEC. 124. ADHERENCE TO NAVY COST ESTIMATES FOR SAN ANTONIO (LPD-17)
CLASS AMPHIBIOUS SHIP PROGRAM.

(a) Limitation.--
(1) Procurement cost.--The total amount obligated or
expended from funds appropriated or otherwise made available
for Shipbuilding and Conversion, Navy, or for any other
procurement account, for the San Antonio-class amphibious ships
designated as LPD-18, LPD-19, LPD-20, LPD-21, LPD-22, LPD-23,
LPD-24, and LPD-25 may not exceed the amount for each such
vessel specified in paragraph (2) (those specified amounts
being the estimated total procurement end cost of those
vessels, respectively, in the fiscal year 2007 budget):
(2) Specified cost limit by vessel.--The limitation under
this subsection for each vessel specified in paragraph (1) is
the following:
(A) For the LPD-18 ship, $1,111,310,000 (as
adjusted pursuant to subsection (b)).
(B) For the LPD-19 ship, $1,137,400,000 (as
adjusted pursuant to subsection (b)).
(C) For the LPD-20 ship, $1,004,600,000 (as
adjusted pursuant to subsection (b)).
(D) For the LPD-21 ship, $1,126,966,000 (as
adjusted pursuant to subsection (b)).
(E) For the LPD-22 ship, $1,246,736,000 (as
adjusted pursuant to subsection (b)).
(F) For the LPD-23 ship, $1,191,230,000 (as
adjusted pursuant to subsection (b)).
(G) For the LPD-24 ship, $1,333,001,000 (as
adjusted pursuant to subsection (b)).
(H) For the LPD-25 ship, $1,671,800,000 (as
adjusted pursuant to subsection (b)).
(b) Adjustment of Limitation Amounts.--The Secretary of the Navy
may adjust the amount set forth in subsection (a) for any ship
specified in that subsection by the following:
(1) The amounts of increases or decreases in costs
attributable to economic inflation after September 30, 2006.
(2) The amounts of increases or decreases in costs
attributable to compliance with changes in Federal, State, or
local laws enacted after September 30, 2006.
(3) The amounts of outfitting costs and post-delivery costs
incurred for that ship.
(4) The amounts of increases or decreases in costs of that
ship that are attributable to insertion of new technology into
that ship, as compared to the technology built into the U.S.S.
San Antonio (LPD-17), the lead ship of the LPD-17 class.
(c) Limitation on Technology Insertion Cost Adjustment.--The
Secretary of the Navy may use the authority under paragraph (4) of
subsection (b) to adjust the amount set forth in subsection (a) for any
LPD-17 class ship with respect to insertion of new technology into that
ship only if--
(1) the Secretary determines, and certifies to the
congressional defense committees, that insertion of the new
technology would lower the life-cycle cost of the ship; or
(2) the Secretary determines, and certifies to the
congressional defense committees, that insertion of the new
technology is required to meet an emerging threat and the
Secretary of Defense certifies to those committees that such
threat poses grave harm to national security.
(d) Written Notice of Change in Amount.--
(1) Requirement.--The Secretary of the Navy shall submit to
the congressional defense committees each year, at the same
time that the budget is submitted under section 1105(a) of
title 31, United States Code, for the next fiscal year, written
notice of any change in the amount set forth in subsection (a)
during the preceding fiscal year that the Secretary has
determined to be associated with a cost referred to in
subsection (b).
(2) Effective date.--The requirement in paragraph (1) shall
become effective with the budget request for the year of
procurement of the first ship referred to in subsection (a).

SEC. 125. MULTIYEAR PROCUREMENT AUTHORITY FOR V-22 TILTROTOR AIRCRAFT
PROGRAM.

The Secretary of the Navy, in accordance with section 2306b of
title 10, United States Code, and acting as executive agent for the
Secretary of the Air Force and the commander of the United States
Special Operations Command, may enter into a multiyear contract,
beginning with the fiscal year 2008 program year, for procurement of V-
22 tiltrotor aircraft. The total number of aircraft procured through a
multiyear contract under this section may not exceed 211, of which not
more than 185 may be in the MV-22 configuration and not more than 26
may be in the CV-22 configuration.

SEC. 126. QUALITY CONTROL IN PROCUREMENT OF SHIP CRITICAL SAFETY ITEMS
AND RELATED SERVICES.

(a) In General.--
(1) Quality control policy.--Chapter 633 of title 10,
United States Code, is amended by adding at the end the
following new section:
``Sec. 7317. Ship critical safety items and related services: quality
control in procurement
``(a) Quality Control Policy.--The Secretary of Defense shall
prescribe in regulations a quality control policy for the procurement
of--
``(1) ship critical safety items; and
``(2) modifications, repair, and overhaul of ship critical
safety items.
``(b) Content of Regulations.--The policy set forth in the
regulations under subsection (a) shall include the following
requirements:
``(1) That the head of the design control activity for ship
critical safety items establish processes to identify and
manage the procurement, modification, repair, and overhaul of
ship critical safety items.
``(2) That the head of the contracting activity for a ship
critical safety item enter into a contract for the procurement,
modification, repair, or overhaul of such item only with a
source that is on a qualified manufacturers list or is approved
by the design control activity in accordance with section 2319
of this title.
``(3) That the ship critical safety items delivered, and
the services performed with respect to ship critical safety
items, meet all technical and quality requirements specified by
the design control activity.
``(c) Definitions.--In this section:
``(1) The term `ship critical safety item' means any part,
assembly, or support equipment of a vessel that contains a
critical characteristic the failure, malfunction, or absence of
which may cause a catastrophic or critical failure resulting in
loss or serious damage to the vessel or unacceptable risk of
personal injury or loss of life.
``(2) The term `design control activity', with respect to a
ship critical safety item, means the systems command of a
military department that is specifically responsible for
ensuring the seaworthiness of a ship system or equipment in
which the item is to be used.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``7317. Ship critical safety items and related services: quality
control in procurement.''.
(b) Conforming Amendments.--Section 2319 of title 10, United States
Code, is amended--
(1) in subsection (c)(3), by inserting ``or ship critical
safety item'' after ``aviation critical safety item''; and
(2) In subsection (g)--
(A) by redesignating paragraph (2) as paragraph
(3);
(B) by inserting after paragraph (1) the following
new paragraph (2):
``(2) The term `ship critical safety item' has the meaning
given that term in section 7317(c) of this title.''; and
(C) in paragraph (3) (as redesignated)--
(i) by inserting ``or a ship critical
safety item'' after ``aviation critical safety
item'' the first place it appears; and
(ii) by inserting ``, or the seaworthiness
of a ship system or equipment,'' after
``equipment''.

SEC. 127. DD(X) NEXT-GENERATION DESTROYER PROGRAM.

(a) Funding Authorized.--Of the amount authorized to be
appropriated by section 102(a)(3) for fiscal year 2007 for Shipbuilding
and Conversion, Navy, $2,568,000,000 is available for the DD(X) Next-
Generation Destroyer program.
(b) Contract Authority.--The Secretary of the Navy may enter into
two contracts during fiscal year 2007 for the DD(X) Next-Generation
Destroyer program. The contracts shall be entered into with two
different shipbuilders. One such contract shall provide for procurement
of a DD(X) Next-Generation destroyer, including detail design and
construction. The other contract shall provide only for detail design
of a DD(X) Next-Generation destroyer. The two contracts shall be
awarded simultaneously.

SEC. 128. SENSE OF CONGRESS THAT THE NAVY MAKE GREATER USE OF NUCLEAR-
POWERED PROPULSION SYSTEMS IN ITS FUTURE FLEET OF SURFACE
COMBATANTS.

(a) Findings.--Congress makes the following findings:
(1) Securing and maintaining access to affordable and
plentiful sources of energy is a vital national security
interest for the United States.
(2) The Nation's dependence upon foreign oil is a threat to
national security due to the inherently volatile nature of the
global oil market and the political instability of some of the
world's largest oil producing states.
(3) Given the recent increase in the cost of crude oil,
which cannot realistically be expected to improve over the long
term, other energy sources must be seriously considered.
(b) Sense of Congress.--In light of the findings in subsection (a),
it is the sense of Congress that the Navy should make greater use of
alternative technologies, including nuclear power, as a means of vessel
propulsion for its future fleet of surface combatants.

Subtitle D--Air Force Programs

SEC. 131. REQUIREMENT FOR B-52 FORCE STRUCTURE.

(a) Requirement.--Before the date specified in subsection (b), the
Secretary of the Air Force--
(1) may not retire any B-52 aircraft, other than the
aircraft with tail number 61-0025; and
(2) shall maintain not less than 44 such aircraft as
combat-coded aircraft.
(b) Termination.--For purposes of subsection (a), the date
specified in this subsection is the earlier of--
(1) January 1, 2018; and
(2) the date as of which a long-range strike replacement
aircraft with equal or greater capability than the B-52H model
aircraft has attained initial operational capability status.

SEC. 132. STRATEGIC AIRLIFT FORCE STRUCTURE.

(a) Required Force Structure.--
(1) Minimum number of aircraft.--Effective October 1, 2008,
the Secretary of the Air Force shall maintain a total aircraft
inventory of strategic airlift aircraft of not less than 299
aircraft.
(2) Definitions.--For purposes of this subsection:
(A) The term ``strategic airlift aircraft'' means
an aircraft that has a cargo capacity of at least
150,000 pounds and that is capable of transporting
outsized cargo an unrefueled range of at least 2,400
nautical miles.
(B) The term ``outsized cargo'' means any single
item of equipment that exceeds 1,090 inches in length,
117 inches in width, or 105 inches in height.
(b) Repeal of Limitation on Retirement of C-5 Aircraft.--Section
132 of the National Defense Authorization Act for Fiscal Year 2004
(Public Law 108-136; 117 Stat. 1411) is repealed.

SEC. 133. LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

(a) Fiscal Year 2007.-- The Secretary of the Air Force may not
retire any U-2 aircraft of the Air Force in fiscal year 2007.
(b) Years After Fiscal Year 2007.--After fiscal year 2007, the
Secretary of the Air Force may retire a U-2 aircraft only if the
Secretary of Defense certifies to Congress that the U-2 intelligence,
surveillance, and reconnaissance (ISR) capability provided by the U-2
aircraft no longer contributes to mitigating any gaps in ISR
capabilities identified in the 2006 Quadrennial Defense Review. No
action may be taken by the Department of Defense to retire (or to
prepare to retire) any U-2 aircraft--
(1) before such a certification is submitted to Congress;
or
(2) during the 60-day period beginning on the date on which
such a certification is submitted.

SEC. 134. MULTIYEAR PROCUREMENT AUTHORITY FOR F-22A RAPTOR FIGHTER
AIRCRAFT.

(a) Multiyear Authority.--The Secretary of the Air Force may enter
into a multiyear contract for the procurement of up to 60 F-22A Raptor
fighter aircraft beginning with the 2007 program year,
(b) Compliance With Law Applicable to Multiyear Contracts.--A
contract under subsection (a) for the procurement of F-22A aircraft
shall be entered into in accordance with section 2306b of title 10,
United States Code, except that, notwithstanding subsection (k) of that
section, such a contract may not be for a period in excess of three
program years.
(c) Required Certifications.--In the case of a contract under
subsection (a) for the procurement of F-22A aircraft, a certification
under subsection (i)(1)(A) of section 2306b of title 10, United States
Code, with respect to that contract may only be submitted if the
certification includes an additional certification that each of the
conditions specified in subsection (a) of that section has been
satisfied with respect to that contract.
(d) Notice-and-Wait Requirement.--Upon submission to Congress of a
certification referred to in subsection (c) with respect to a proposed
contract under subsection (a) for the procurement of F-22A aircraft,
the contract may then be entered into only after a period of 30 days
has elapsed after the date of the submission of the certification.

SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AIRCRAFT DURING FISCAL
YEAR 2007.

(a) Limitation.--The number of KC-135E aircraft retired by the
Secretary of the Air Force during fiscal year 2007 may not exceed 29.
(b) Treatment of Retired Aircraft.--The Secretary of the Air Force
shall maintain each KC-135E aircraft that is retired by the Secretary
after September 30, 2006, in a condition that would allow recall of
that aircraft to future service in the Air Force Reserve, Air National
Guard, or active forces aerial refueling force structure.

SEC. 136. LIMITATION ON RETIREMENT OF F-117A AIRCRAFT DURING FISCAL
YEAR 2007.

(a) Limitation.--The number of F-117A aircraft retired by the
Secretary of the Air Force during fiscal year 2007 may not exceed 10.
(b) Treatment of Retired Aircraft.--The Secretary of the Air Force
shall maintain each F-117A aircraft that is retired by the Secretary
after September 30, 2006, in a condition that would allow recall of
that aircraft to future service.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

Subtitle B--Program Requirements, Restrictions, and Limitations

Subtitle C--Ballistic Missile Defense

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.

Subtitle D--Other Matters

Sec. 231. Review of test and evaluation policies and practices to
address emerging acquisition approaches.

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year 2007
for the use of the Department of Defense for research, development,
test, and evaluation as follows:
(1) For the Army, $10,932,209,000.
(2) For the Navy, $17,377,769,000.
(3) For the Air Force, $24,810,041,000.
(4) For Defense-wide activities, $20,944,559,000, of which
$181,520,000 is authorized for the Director of Operational Test
and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

(a) Fiscal Year 2007.--Of the amounts authorized to be appropriated
by section 201, $11,735,555,000 shall be available for the Defense
Science and Technology Program, including basic research, applied
research, and advanced technology development projects.
(b) Basic Research, Applied Research, and Advanced Technology
Development Defined.--For purposes of this section, the term ``basic
research, applied research, and advanced technology development'' means
work funded in program elements for defense research and development
under Department of Defense category 6.1, 6.2, or 6.3.

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. ALTERNATE ENGINE FOR JOINT STRIKE FIGHTER.

Of the funds authorized to be appropriated for the Departments of
the Navy and Air Force for the system development and demonstration
program for the Joint Strike Fighter, not less than $408,000,000 shall
be obligated for continued development of an alternate engine for the
Joint Strike Fighter.

SEC. 212. EXTENSION OF AUTHORITY TO AWARD PRIZES FOR ADVANCED
TECHNOLOGY ACHIEVEMENTS.

Section 2374a(f) of title 10, United States Code, is amended by
striking ``September 30, 2007'' and inserting ``September 30, 2010''.

SEC. 213. EXTENSION OF DEFENSE ACQUISITION CHALLENGE PROGRAM.

(a) Extension.--Section 2359b of title 10, United States Code, is
amended by striking subsection (j).
(b) Confidentiality.--Such section is further amended in subsection
(g)--
(1) by amending the heading to read as follows: ``Conflicts
of Interest and Confidentiality.--''; and
(2) by inserting before the period at the end the
following: ``and that the identity of any person or activity
submitting a challenge proposal is not disclosed outside the
Federal Government without the consent of the person or
activity''.

SEC. 214. FUTURE COMBAT SYSTEMS MILESTONE REVIEW.

(a) Milestone Review Required.--After the preliminary design review
of the Future Combat Systems program, but in no event later than the
end of fiscal year 2008, the Secretary of Defense shall carry out a
Defense Acquisition Board milestone review of the Future Combat Systems
program. The milestone review shall include an assessment as to each of
the following:
(1) Whether the warfighter's needs are valid and can be
best met with the concept of the program.
(2) Whether the concept of the program can be developed and
produced within existing resources.
(3) Whether the program should continue.
(b) Determinations to Be Made in Assessing Whether Program Should
Continue.--In making the assessment required by subsection (a)(3), the
Secretary shall make a determination with respect to each of the
following:
(1) Whether each critical technology for the program is at
least Technical Readiness Level 6.
(2) For each system and network component of the program,
what the key design and technology risks are, based on System
Functional Reviews, Preliminary Design Reviews, and Technical
Readiness Levels.
(3) Whether actual demonstrations, rather than simulations,
have shown that the concept of the program will work.
(4) Whether actual demonstrations, rather than plans, have
shown that the software for the program is functional.
(5) What the cost estimate for the program is.
(6) What the affordability assessment for the program is,
based on that cost estimate.
(c) Report.--The Secretary shall submit to the congressional
defense committees a report on the findings and conclusions of the
milestone review required by subsection (a). The report shall include,
and display, each of the assessments required by subsection (a) and
each of the determinations required by subsection (b).
(d) Restriction on Funds Effective Fiscal 2009.--For fiscal years
beginning with 2009, the Secretary may not obligate any funds for the
Future Combat Systems program until after the report required by
subsection (c) is submitted.

SEC. 215. INDEPENDENT COST ANALYSES FOR JOINT STRIKE FIGHTER ENGINE
PROGRAM.

(a) Independent Cost Analyses.--A comprehensive and detailed cost
analysis of the Joint Strike Fighter engine program shall be
independently performed by the Comptroller General and by the Secretary
of Defense, acting through the Cost Analysis Improvement Group of the
Office of the Secretary of Defense. The cost analysis shall cover--
(1) an alternative under which the aircraft are capable of
using the F135 engine only;
(2) an alternative under which the aircraft are capable of
using either the F135 engine or the F136 engine, and is carried
out on a competitive basis; and
(3) any other alternative, whether competitive or sole
source, that would reduce total life-cycle cost, improve
program schedule, or both.
(b) Reports.--Not later than March 15, 2007, each official
specified in subsection (a) shall independently submit to the
congressional defense committees a report on the cost analysis carried
out by that official under subsection (a). Each report shall include
each of the following matters:
(1) The key assumptions used in carrying out the cost
analysis.
(2) The methodology and techniques used in carrying out the
cost analysis.
(3) For each alternative under subsection (a)--
(A) a comparison of the life-cycle costs, including
costs in current and constant collars and a net-
present-value analysis; and
(B) estimates of--
(i) supply, maintenance, and other
operations manpower required to support the
alternative;
(ii) the number of flight hours required to
achieve engine maturity and in what year that
is expected to be achieved; and
(iii) the total number of engines expected
to be procured over the lifetime of the Joint
Strike Fighter program.
(4) The acquisition strategies that were used for, and the
experience with respect to cost, schedule, and performance
under past acquisition programs for engines for tactical
fighter aircraft, including the F-15, F-16, F-18, and F-22.
(5) A comparison of the experiences under past engine
acquisition programs carried out on a sole-source basis, and
those carried out on a competitive basis, with respect to
performance, savings, maintainability, reliability, and
technical innovation.
(6) Conclusions and recommendations.
(c) Certification by Comptroller General.--In submitting the report
required by subsection (b), the Comptroller General shall also submit a
certification as to whether the Comptroller General had access to
sufficient information to enable the Comptroller General to make
informed judgments on the matters required to be included in the
report.
(d) Life-Cycle Costs Defined.--In this section, the term ``life-
cycle costs'' includes those elements of cost that would be considered
for a life-cycle cost analysis for a major defense acquisition program,
such as procurement of engines, procurement of spare engines, and
procurement of engine components and parts, and also includes good-
faith estimates of routine engine costs, such as performance upgrades
and component improvement, that historically have occurred in tactical
fighter engine programs.

SEC. 216. DEDICATED AMOUNTS FOR IMPLEMENTING OR EVALUATING DD(X) AND
CVN-21 PROPOSALS UNDER DEFENSE ACQUISITION CHALLENGE
PROGRAM.

(a) Amounts Required.--Of the amounts appropriated pursuant to the
authorization of appropriations in section 201(4) for research,
development, test, and evaluation, Defense-wide, $4,000,000 shall be
available only to implement or evaluate challenge proposals specified
in subsection (b).
(b) Challenge Proposals Covered.--A challenge proposal referred to
in subsection (a) is a proposal under the Defense Acquisition Challenge
Program established by section 2359b of title 10, United States Code,
that relates to--
(1) the DD(X) next-generation destroyer program; or
(2) the CVN-21 next-generation aircraft carrier program.

Subtitle C--Ballistic Missile Defense

SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

Upon approval by the Secretary of Defense, funds authorized to be
appropriated for fiscal years 2007 and 2008 for research, development,
test, and evaluation for the Missile Defense Agency may be used for the
development and fielding of ballistic missile defense capabilities.

SEC. 222. LIMITATION ON USE OF FUNDS FOR SPACE-BASED INTERCEPTOR.

(a) Limitation.--No funds appropriated or other wise made available
to the Department of Defense may be obligated or expended for the
testing or deployment of a space-based interceptor until 90 days after
the date on which a report described in subsection (c) is submitted.
(b) Space-Based Interceptor Defined.--For purposes of this section,
the term ``space-based interceptor'' means a kinetic or directed energy
weapon that is stationed on a satellite or orbiting platform and that
is intended to destroy another satellite in orbit or a ballistic
missile launched from earth.
(c) Report.--A report described in this subsection is a report
prepared by the Director of the Missile Defense Agency and submitted to
the congressional defense committees containing the following:
(1) A description of the essential components of a proposed
space-based interceptor system, including a description of how
the system proposed would enhance or complement other missile
defense systems.
(2) An estimate of the acquisition and life-cycle cost of
the system described under paragraph (1), including lift cost
and periodic replacement cost due to depreciation and
attrition.
(3) An analysis of the vulnerability of such a system to
counter-measures, including direct ascent and co-orbital
interceptors, and an analysis of the functionality of such a
system in the aftermath of a nuclear detonation in space.
(4) A projection of the foreign policy and national
security implications of a space-based interceptor program,
including the probable response of United States adversaries
and United States allies.

Subtitle D--Other Matters

SEC. 231. REVIEW OF TEST AND EVALUATION POLICIES AND PRACTICES TO
ADDRESS EMERGING ACQUISITION APPROACHES.

(a) Revision to Report Requirement.--Section 2399(b)(2)(B) of title
10, United States Code, is amended by striking ``tested are effective
and suitable for combat'' and inserting the following: ``tested--
``(i) are effective and suitable for combat in
accordance with the users' standards for effectiveness
and suitability as reflected in the requirements
process; or
``(ii) are operationally acceptable under certain
restricted conditions, as delineated by the
Director.''.
(b) Review of Test and Evaluation Policies.--
(1) In general.--The Under Secretary of Defense for
Acquisition, Technology, and Logistics, in coordination with
the Director of Operational Test and Evaluation and the
Director of the Defense Test Resource Management Center, shall
conduct a review of test and evaluation policies and practices
of the Department of Defense and issue such new or revised
guidance as may be necessary to address emerging acquisition
approaches.
(2) Issues to be addressed.--The issues to be addressed by
the Under Secretary in the review under paragraph (1) shall
include, at a minimum, appropriate polices and practices for--
(A) ensuring the adequacy and the expediency of
test and evaluation activities with regard to--
(i) items that are acquired pursuant to the
rapid acquisition authority in section 806 of
the Bob Stump National Defense Authorization
Act for Fiscal Year 2003 (10 U.S.C. 2302 note);
(ii) programs that are conducted pursuant
to the spiral development authority in section
803 of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (10
U.S.C. 2430 note) (or other authority for the
conduct of incremental acquisition programs) ;
(iii) systems that are acquired pursuant to
other emerging acquisition approaches, as
approved by the Under Secretary; and
(iv) materiel that is not subject to the
operational test and evaluation requirements in
sections 2366 and 2399 of title 10, United
States Code, but which may require limited
operational test and evaluation for the
purposes of ensuring the safety and realistic
survivability of the materiel and the personnel
using the materiel; and
(B) the appropriate use, if any, of operational
test and evaluation resources to assess technology
readiness levels for purposes of section 2366a of title
10, United States Code, and other applicable technology
readiness requirements.
(c) Inclusion of Testing Needs in Strategic Plan.--The Director of
the Defense Test Resource Management Center shall ensure that the
strategic plan for Department of Defense test and evaluation resources
required by section 196 of title 10, United States Code--
(1) reflects any testing needs of the Department of Defense
that are identified in the review under paragraph (1); and
(2) includes an assessment of the test and evaluation
facilities, resources, and budgets that will be required to
meet such needs.
(d) Report.--Not later than nine months after the date of the
enactment of this Act, the Under Secretary of Defense for Acquisition,
Technology, and Logistics shall submit to the congressional defense
committees a report on the review conducted, and any new or revised
guidance issued, pursuant to subsection (b).

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense Programs.

Subtitle B--Environmental Provisions

Subtitle C--Workplace and Depot Issues

Subtitle D--Reports

Subtitle E--Other Matters

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

Funds are hereby authorized to be appropriated for fiscal year 2007
for the use of the Armed Forces and other activities and agencies of
the Department of Defense for expenses, not otherwise provided for, for
operation and maintenance, in amounts as follows:
(1) For the Army, $24,920,735,000.
(2) For the Navy, $31,089,075,000.
(3) For the Marine Corps, $3,974,081,000.
(4) For the Air Force, $31,098,957,000.
(5) For Defense-wide activities, $19,876,763,000.
(6) For the Army Reserve, $2,300,102,000.
(7) For the Naval Reserve, $1,288,764,000.
(8) For the Marine Corps Reserve, $211,911,000.
(9) For the Air Force Reserve, $2,723,800,000.
(10) For the Army National Guard, $5,089,565,000.
(11) For the Air National Guard, $5,336,017,000.
(12) For the United States Court of Appeals for the Armed
Forces, $11,721,000.
(13) For Environmental Restoration, Army, $413,794,000.
(14) For Environmental Restoration, Navy, $304,409,000.
(15) For Environmental Restoration, Air Force,
$423,871,000.
(16) For Environmental Restoration, Defense-wide,
$18,431,000.
(17) For Environmental Restoration, Formerly Used Defense
Sites, $242,790,000.
(18) For Overseas Humanitarian, Disaster, and Civic Aid
programs, $63,204,000.
(19) For Cooperative Threat Reduction programs,
$372,128,000.
(20) For the Overseas Contingency Operations Transfer Fund,
$10,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

Funds are hereby authorized to be appropriated for fiscal year 2007
for the use of the Armed Forces and other activities and agencies of
the Department of Defense for providing capital for working capital and
revolving funds in amounts as follows:
(1) For the Defense Working Capital Funds, $180,498,000.
(2) For the National Defense Sealift Fund, $1,138,732,000.
(3) For the Defense Working Capital Fund, Defense
Commissary, $1,184,000,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

(a) Defense Health Program.--Funds are hereby authorized to be
appropriated for the Department of Defense for fiscal year 2007 for
expenses, not otherwise provided for, for the Defense Health Program,
in the amount of $21,226,521,000, of which--
(1) $20,699,563,000 is for Operation and Maintenance;
(2) $130,603,000 is for Research, Development, Test, and
Evaluation; and
(3) $396,355,000 is for Procurement.
(b) Drug Interdiction and Counter-Drug Activities, Defense-Wide.--
Funds are hereby authorized to be appropriated for the Department of
Defense for fiscal year 2007 for expenses, not otherwise provided for,
for Drug Interdiction and Counter-Drug Activities, Defense-wide, in the
amount of $926,890,000.
(c) Defense Inspector General.--Funds are hereby authorized to be
appropriated for the Department of Defense for fiscal year 2007 for
expenses, not otherwise provided for, for the Office of the Inspector
General of the Department of Defense, in the amount of $216,297,000, of
which--
(1) $214,897,000 is for Operation and Maintenance;
(2) $1,400,000 is for Procurement; and
(3) $0 is for Research, Development, Test, and Evaluation.

Subtitle B--Environmental Provisions

SEC. 311. REVISION OF REQUIREMENT FOR UNEXPLODED ORDNANCE PROGRAM
MANAGER.

Section 2701(k) of title 10, United States Code, is amended--
(1) in paragraph (1)--
(A) by striking ``establish'' and inserting
``designate'';
(B) by inserting ``research,'' after
``characterization,''; and
(C) by adding at the end the following: ``The
position of program manager shall be filled by--
``(A) in the case of an employee, an employee in a position
that is equivalent to pay grade O-6 or above; or
``(B) in the case of a member of the armed forces, a
commissioned officer of the Army, Navy, Air Force, or Marine
Corps who is serving in the grade of colonel, or in the case of
the Navy, captain, or a higher grade.''; and
(2) by striking paragraph (2) and inserting the following:
``(2) The program manager shall report to the Deputy Under
Secretary of Defense for Installations and Environment.''.

SEC. 312. IDENTIFICATION AND MONITORING OF MILITARY MUNITIONS DISPOSAL
SITES IN OCEAN WATERS EXTENDING FROM UNITED STATES COAST
TO OUTER BOUNDARY OF OUTER CONTINENTAL SHELF.

(a) Identification of Military Munitions Disposal Sites.--
(1) Review of historical records.--The Secretary of Defense
shall conduct a review of historical records to determine--
(A) the number and probable locations of sites
where the Armed Forces disposed of military munitions
within covered United States ocean waters;
(B) the size of the disposal sites; and
(C) the types and quantities of military munitions
disposed of at the sites.
(2) Cooperation.--The Secretary shall request the
assistance of the Coast Guard, the National Oceanic and
Atmospheric Administration, and other relevant Federal agencies
in conducting the review required by this subsection.
(3) Release of information.--The Secretary shall
periodically release, but no less often than annually,
information obtained during the review conducted under this
subsection. The Secretary may withhold from public release
information about the exact nature and location of a disposal
site if the Secretary determines that the potential
unauthorized retrieval of military munitions at the site could
pose a significant threat to national defense or public safety.
(4) Reporting requirements.--The Secretary shall include
the information obtained during a year through the review
conducted under this subsection in the report submitted to
Congress under section 2706(a) of title 10, United States Code,
for the same year.
(b) Identification of Navigational and Safety Hazards.--
(1) Information for nautical charts and other navigational
materials.--The Secretary shall share information obtained
through the review conducted under subsection (a) with the
Secretary of Commerce to assist the National Oceanic and
Atmospheric Administration in preparing nautical charts and
other navigational materials for covered United States ocean
waters to identify known or probable hazards from disposed
military munitions.
(2) Information for users.--The Secretary shall continue
activities to inform potentially affected users of the ocean
environment, and particularly fishing operations, of the
possible hazards from contact with military munitions and the
proper methods to mitigate such hazards.
(c) Research.--
(1) In general.--The Secretary shall conduct research on
the effects of military munitions disposed of in covered United
States ocean waters.
(2) Specified research efforts.--The research conducted
under this subsection shall include the following:
(A) The sampling and analysis of ocean waters and
seabeds at or adjacent to the military munitions
disposal sites selected by the Secretary under
paragraph (4).
(B) The investigation into the long-term effects of
seawater exposure on military munitions, particularly
chemical munitions.
(C) The development of effective safety measures
when dealing with military munitions disposed of in
seawater.
(3) Research methods.--In conducting research under this
subsection, the Secretary may make grants to, and enter into
cooperative agreements with, qualified research entities, as
determined by the Secretary.
(4) Research locations.--In conducting research under this
subsection, the Secretary shall ensure that the sampling,
analysis, and investigations are conducted at reasonably
representative sites applying factors such as depth, water
temperature, nature of the military munitions present, and
relative proximity to shore populations. The Secretary shall
select at least two representative sites from each of the
following areas:
(A) Along the Atlantic coast.
(B) Along the Pacific coast (including the coast of
Alaska).
(C) Off the shore of the Hawaiian Islands.
(d) Monitoring.--If research conducted under subsection (c) at a
military munitions disposal site indicates that the disposed military
munitions have caused or may be causing contamination of ocean waters
or seabeds, the Secretary shall institute appropriate monitoring
mechanisms at that site to recognize and track the potential release of
contamination into the ocean waters from military munitions.
(e) Definitions.--In this Act:
(1) The term ``coast line'' has the same meaning given that
term in section 2 of the Submerged Lands Act (43 U.S.C. 1301).
(2) The term ``covered United States ocean waters'' means
that part of the ocean extending from the coast line to the
outer boundary of the outer Continental Shelf.
(3) The term ``military munitions'' has the same meaning
given that term in section 101(e) of title 10, United States
Code.
(4) The term ``outer Continental Shelf'' has the same
meaning given that term in section 2 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1331).
(5) The term ``Secretary'' means the Secretary of Defense.

SEC. 313. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN
COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND
SITE, MOSES LAKE, WASHINGTON.

(a) Authority to Reimburse.--Using funds described in subsection
(b), the Secretary of Defense may transfer not more than $111,114.03 to
the Moses Lake Wellfield Superfund Site 10-6J Special Account to
reimburse the Environmental Protection Agency for the costs incurred by
the Environmental Protection Agency in overseeing a remedial
investigation and feasibility study performed by the Department of the
Army under the Defense Environmental Restoration Program at the former
Larson Air Force Base, Moses Lake Wellfield Superfund Site, Moses Lake,
Washington. This reimbursement is provided for in the March 1999
interagency agreement entered into by the Department of the Army and
the Environmental Protection Agency for the Moses Lake Wellfield
Superfund Site.
(b) Source of Funds.--Any payment under subsection (a) shall be
made using funds authorized to be appropriated by section 301(17) for
operation and maintenance for Environmental Restoration, Formerly Used
Defense Sites.

SEC. 314. FUNDING OF COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL
RESTORATION PROGRAM.

Section 2701(d)(2) of title 10, United States Code, is amended by
adding at the end the following new sentence: ``This two-year
limitation does not apply to an agreement funded using amounts in the
Department of Defense Base Closure Account 1990 or the Department of
Defense Base Closure Account 2005 established under sections 2906 and
2906A of the Defense Base Closure and Realignment Act of 1990 (part A
of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).''.

SEC. 315. ANALYSIS AND REPORT REGARDING CONTAMINATION AND REMEDIATION
RESPONSIBILITY FOR NORWALK DEFENSE FUEL SUPPLY POINT,
NORWALK, CALIFORNIA.

(a) Analysis Required.--The Secretary of the Air Force shall
conduct a comprehensive analysis on the contamination and remediation
costs of the Norwalk Defense Fuel Supply Point in Norwalk, California.
As part of the analysis, the Secretary shall--
(1) characterize the contamination at the Norwalk Defense
Fuel Supply Point;
(2) prepare a plan for the remediation of the Norwalk
Defense Fuel Supply Point;
(3) prepare an estimate of anticipated costs to responsible
parties;
(4) prepare a timeline for implementation and completion of
the remediation at the Norwalk Defense Fuel Supply Point;
(5) describe the status of efforts to reach an allocation
agreement of responsibility for remediation of the Norwalk
Defense Fuel Supply Point with all entities that have
contributed to the contamination of the property; and
(6) prepare a plan for removal or conveyance of
infrastructure at the Norwalk Defense Fuel Supply Point,
including costs and responsibility for those costs of elements
of that plan.
(b) Report Required.--Not later than January 30, 2007, the
Secretary shall submit to Congress a report containing the results of
the analysis conducted under subsection (a) and addressing each of the
matters specified in paragraphs (1) through (6) of such subsection.
(c) Conveyance Requirements.--The Secretary shall not convey
property by public auction at the Norwalk Defense Fuel Supply Point
before such time as the Secretary has--
(1) pursued a fair market transfer of the property to the
City of Norwalk, California, taking into consideration all
contamination of the property;
(2) submitted the report required by subsection (b); and
(3) submitted an additional report to Congress explaining
the efforts undertaken by the Secretary to reach agreement with
the City on the sale of the property, including the reasons
that those efforts were not successful, and 30-days have
elapsed after this report is submitted.

Subtitle C--Workplace and Depot Issues

SEC. 321. EXTENSION OF EXCLUSION OF CERTAIN EXPENDITURES FROM
PERCENTAGE LIMITATION ON CONTRACTING FOR DEPOT-LEVEL
MAINTENANCE.

Section 2474(f)(1) of title 10, United States Code, is amended by
striking ``fiscal years 2003 through 2009'' and inserting ``fiscal
years 2003 through 2014''.

SEC. 322. MINIMUM CAPITAL INVESTMENT FOR AIR FORCE DEPOTS.

(a) Investment Required.--Chapter 803 of title 10, United States
Code, is amended by adding at the end the following new section:
``Sec. 8025. Minimum capital investment in Air Force depots
``(a) Minimum Investment Requirement.--Each fiscal year, the
Secretary of the Air Force shall invest in the capital budgets of the
depots of the Air Force a total amount equal to not less than six
percent of the total combined revenue of all the depots of the Air
Force for the preceding fiscal year.
``(b) Waiver.--The Secretary of the Air Force may waive the
requirement under subsection (a) if the Secretary determines that the
waiver is necessary for reasons of national security and notifies the
congressional defense committees.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``8025. Minimum capital investment for Air Force depots.''.
(c) Effective Date.--Section 8025 of title 10, United States Code,
shall apply with respect to fiscal years beginning after the date of
the enactment of this Act.

SEC. 323. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE
OF SECURITY GUARD FUNCTIONS.

(a) One-Year Extension.--Section 332(c) of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) is
amended by striking ``September 30, 2007'' both places it appears and
inserting ``September 30, 2008''.
(b) Report on Contractor Performance of Security-Guard Functions.--
Not later than February 1, 2007, the Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives, a report on contractor
performance of security guard functions under section 332 of the Bob
Stump National Defense Authorization Act for Fiscal Year 2003 (Public
Law 107-314). The report shall include the following:
(1) An explanation of progress made toward implementing
each of the seven recommendations in the Comptroller General
report entitled ``Contract Security Guards: Army's Guard
Program Requires Greater Oversight and Reassessment of
Acquisition Approach'' (GAO-06-284).
(2) An assessment, taking into considerations the
observations made by the GAO on the report of the Department of
Defense of November 2005 that is entitled ``Department of
Defense Installation Security Guard Requirement Assessment and
Plan'', of the following:
(A) The cost-effectiveness of using contractors
rather than Department of Defense employees to perform
security-guard functions.
(B) The performance of contractors employed as
security guards compared with the performance of
military personnel who have served as security guards.
(C) Specific results of on-site visits made by
officials designated by the Secretary of Defense to
military installations using contractors to perform
security-guard functions.
(c) Contract Limitation.--No contract may be entered into under
section 332 of the Bob Stump National Defense Authorization Act for
Fiscal Year 2003 (Public Law 107-314) after September 30, 2007, until
the report required under subsection (b) is submitted.

Subtitle D--Reports

SEC. 331. REPORT ON NUCLEAR ATTACK SUBMARINE DEPOT MAINTENANCE.

(a) Report Required.--Not later than February 1, 2007, the
Secretary of the Navy shall submit to the Committee on Armed Services
of the Senate and the Committee on Armed Services of the House of
Representatives a report describing the criteria used when a nuclear
attack submarine is sent to a facility other than a facility located
within 200 miles of the homeport of the submarine for maintenance
described in subsection (d) when there is a public or private facility
located within 200 miles of the homeport at which the maintenance
required could be conducted.
(b) Contents of Report.--The report required under subsection (a)
shall include the following:
(1) An assessment of the cost of housing for the crew of
the submarine.
(2) The costs associated with traveling to the homeport of
the submarine for official duty.
(3) The treatment of crew time while the submarine is
undergoing nondeployed maintenance work away from the homeport.
(4) An assessment of the effect that maintenance conducted
away from the homeport of a submarine has on the families of
the members stationed on that submarine.
(5) An analysis of the retention of officers and enlisted
members stationed on the submarine.
(6) An analysis of the use of fixed maintenance crews or
semi-permanent engineering crews for maintenance availabilities
that exceed 13 months.
(c) Restriction on Maintenance Away From Homeport.--
(1) Restriction.--During fiscal year 2007, the Secretary of
the Navy may not conduct maintenance described in subsection
(d) on a nuclear attack submarine at a facility other than a
facility located within 200 miles of the homeport of that
submarine if there is a public or private facility located
within 200 miles of the homeport at which the maintenance
required could be conducted without adversely affecting
operational deployment schedules.
(2) Notification required.--Not later than five days before
maintenance restricted under paragraph (1) is conducted due to
operation deployment schedules, the Secretary of the Navy shall
provide to the congressional defense committees written notice
of the maintenance that is to be conducted and the
justification for conducting that maintenance.
(d) Covered Maintenance.--Maintenance described in this subsection
is any of the following:
(1) Maintenance referred to as selected restricted
availability maintenance.
(2) Maintenance referred to as preinactivation restricted
availability maintenance.
(3) Maintenance referred to as extended selected restricted
availability maintenance.
(4) Maintenance referred to as interim dry dock
availabilities.

SEC. 332. REPORT ON NAVY FLEET RESPONSE PLAN.

(a) Report Required.--Not later than December 1, 2006, the
Secretary of the Navy shall submit to the Committee on Armed Services
of the Senate and the Committee on Armed Services of the House of
Representatives a report on the program of the Navy referred to as the
Fleet Response Plan. The report shall include the following:
(1) A directive that provides guidance for the conduct of
the Plan and standardizes terms and definitions.
(2) Performance measures for evaluation of the Plan.
(3) Costs and resources needed to achieve objectives of the
Plan.
(4) Operational tests, exercises, war games, experiments,
and deployments used to test performance.
(5) A collection and synthesis of lessons learned from the
implementation of the Plan as of the date on which the report
is submitted.
(6) Evaluation of each of the following with respect to
each ship participating in the Plan:
(A) Combat Readiness.
(B) Ship material condition.
(C) Number of maintenance deficiencies.
(D) Amount of maintenance accomplished while
underway.
(E) Amount of maintenance accomplished at pier
dockings.
(F) Number of voyage repairs during each
deployment.
(G) Combat skills training requirements
accomplished during a deployment and at the home
station.
(H) Professional development training requirements
accomplished during a deployment and at home station.
(I) Crew retention statistics.
(7) Any proposed changes to the Surface Force Training
Manual.
(8) The amount of funding required to effectively implement
the operations and maintenance requirements of the Plan and the
effect of providing funding in an amount less than that amount.
(9) Any recommendations of the Secretary of the Navy with
respect to expanding the Plan to include Expeditionary Strike
Groups.
(b) Comptroller General Report.--Not later than March 15, 2007, the
Comptroller General shall submit to the congressional defense
committees a report containing a review of the Navy report required
under subsection (a). The report shall include the following:
(1) An examination of the management approaches of the Navy
in implementing the Fleet Response Plan.
(2) An assessment of the adequacy of Navy directives and
guidance with respect to maintenance and training requirements
and procedures.
(3) An analysis and assessment of the adequacy of the
Navy's test, exercises, and evaluation criteria.
(4) An evaluation of Navy data on aircraft carriers,
destroyers, and cruisers that participated in the Fleet
Response Plan with respect to readiness, response time, and
availability for routine or unforeseen deployments.
(5) An assessment of the Navy's progress in identifying the
amount of funding required to effectively implement the
operations and maintenance requirements of the Fleet Response
Plan and the effect of providing funding in an amount less than
that amount.
(6) Any recommendations of the Comptroller General with
respect to expanding the Fleet Response Plan to include
Expeditionary Strike Groups.
(c) Postponement of Expansion.--The Secretary of the Navy may not
expand the implementation of the Fleet Response Plan beyond the Carrier
Strike Groups until October 1, 2007.

SEC. 333. REPORT ON NAVY SURFACE SHIP ROTATIONAL CREW PROGRAMS.

(a) Report Required.--Not later than April 1, 2007, the Secretary
of the Navy shall submit to the Committee on Armed Services of the
Senate and the Committee on Armed Services of the House of
Representatives a report on the ship rotational crew experiment
referred to in subsection (c)(1). The report shall include the
following:
(1) A comparison between the three destroyers participating
in that experiment and destroyers not participating in the
experiment that takes into consideration each of the following:
(A) Cost-effectiveness, including a comparison of
travel and per diem expenses, maintenance costs, and
other costs.
(B) Maintenance procedures, impacts, and
deficiencies, including the number and characterization
of maintenance deficiencies, the extent of voyage
repairs, post-deployment assessments of the material
condition of the ships, and the extent to which work
levels were maintained.
(C) Mission training requirements.
(D) Professional development requirements and
opportunities.
(E) Liberty port of call opportunities.
(F) Movement and transportation of crew.
(G) Inventory and property accountability.
(H) Policies and procedures for assigning billets
for rotating crews.
(I) Crew retention statistics.
(J) Readiness and mission capability data.
(2) Results from surveys administered or focus groups held
to obtain representative views from commanding officers,
officers, and enlisted members on the effects of rotational
crew experiments on quality of life, training, professional
development, maintenance, mission effectiveness, and other
issues.
(3) The extent to which standard policies and procedures
were developed and used for participating ships.
(4) Lessons learned from the destroyer experiment.
(5) An assessment from the combatant commanders on the crew
mission performance when deployed.
(6) An assessment from the commander of the Fleet Forces
Command on the material condition, maintenance, and crew
training of each participating ship.
(7) Any recommendations of the Secretary of the Navy with
respect to the extension of the ship rotational crew experiment
or the implementation of the experiment for other surface
vessels.
(b) Postponement of Implementation.--The Secretary of the Navy may
not begin implementation of any new surface ship rotational crew
experiment or program during the period beginning on the date of the
enactment of this Act and ending on October 1, 2009.
(c) Treatment of Existing Experiments.--
(1) Destroyer experiment.--Not later than January 1, 2007,
the Secretary of the Navy shall terminate the existing ship
rotational crew experiment involving the U.S.S. Gonzalez (DDG-
66), the U.S.S. Stout (DDG-55), and the U.S.S. Laboon (DDG-58)
that is known as the ``sea swap''.
(2) Patrol coastal class ship experiment.--The Secretary of
the Navy may continue the existing ship rotational crew program
that is currently in use by overseas-based Patrol Coastal class
ships.
(d) Comptroller General Report.--Not later than July 15, 2007, the
Comptroller General shall submit to the Committee on Armed Services of
the Senate and the Committee on Armed Services of the House of
Representatives a report on the ship rotational crew experiment
referred to in subsection (c)(1). The report shall include the
following:
(1) A review of the report submitted by the Secretary of
the Navy under subsection (a) and an assessment of the extent
to which the Secretary fully addressed costs, quality of life,
training, maintenance, and mission effectiveness, and other
relevant issues in that report.
(2) An assessment of the extent to which the Secretary
established and applied a comprehensive framework for assessing
the use of ship rotational crew experiments, including formal
objectives, metrics, and methodology for assessing the cost-
effectiveness of such experiments.
(3) An assessment of the extent to which the Secretary
established effective guidance for the use of ship rotational
crew experiments.
(4) Lessons learned from recent ship rotational crew
experiments and an assessment of the extent to which the Navy
systematically collects and shares lessons learned.
(e) Congressional Budget Office Report.--Not later than July 15,
2007, the Director of the Congressional Budget Office shall submit a
report to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives on the
long-term implications of the use of crew rotation on Navy ships on the
degree of forward presence provided by Navy ships. The report shall
include the following:
(1) An analysis of different approaches to crew rotation
and the degree of forward presence each approach would provide.
(2) A comparison of the degree of forward presence provided
by the fleet under the long-term shipbuilding plan of the Navy
with and without the widespread use of crew rotation.
(3) The long-term benefits and costs of using crew rotation
on Navy ships.

SEC. 334. REPORT ON ARMY LIVE-FIRE RANGES IN HAWAII.

Not later than March 1, 2007, the Secretary of the Army shall
submit to Congress a report on the adequacy of the live-fire ranges of
the Army in the State of Hawaii with respect to current and future
training requirements. The report shall include the following:
(1) An evaluation of the capacity of the existing live-fire
ranges to meet the training requirements of the Army, including
the training requirements of Stryker Brigade Combat Teams.
(2) A description of any existing plan to modify or expand
any range in Hawaii for the purpose of meeting anticipated
live-fire training requirements.
(3) A description of the current live-fire restrictions at
the Makua Valley range and the effect of these restrictions on
unit readiness.
(4) Cost and schedule estimates for the construction of new
ranges or the modification of existing ranges that are
necessary to support future training requirements if existing
restrictions on training at the Makua Valley range remain in
place.

SEC. 335. COMPTROLLER GENERAL REPORT ON JOINT STANDARDS AND PROTOCOLS
FOR ACCESS CONTROL SYSTEMS AT DEPARTMENT OF DEFENSE
INSTALLATIONS.

(a) Report Required.--Not later than one year after the date of the
enactment of this Act, the Comptroller General shall submit to the
Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report containing the
assessment of the Comptroller General of--
(1) the extent to which consistency exists in standards,
protocols, and procedures for access control across
installations of the Department of Defense; and
(2) whether the establishment of joint standards and
protocols for access control at such installations would be
likely to--
(A) address any need of the Department identified
by the Comptroller General; or
(B) improve access control across the installations
by providing greater consistency and improved force
protection.
(b) Issues to Be Assessed.--In conducting the assessment required
by subsection (a), the Comptroller General shall assess the extent to
which each installation of the Department of Defense has or would
benefit from having an access control system with the ability to--
(1) electronically check any identification card issued by
any Federal agency or any State or local government within the
United States, including any identification card of a visitor
to the installation who is a citizen or legal resident of the
United States;
(2) verify that an identification card used to obtain
access to the installation was legitimately issued and has not
been reported lost or stolen;
(3) check on a real-time basis all relevant watch lists
maintained by the Government, including terrorist watch lists
and lists of persons wanted by State, local, or Federal law
enforcement authorities;
(4) maintain a log of individuals seeking access to the
installation and of individuals who are denied access to the
installation; and
(5) exchange information with any installation with a
system that complies with the joint standards and protocols.

SEC. 336. REPORT ON PERSONNEL SECURITY INVESTIGATIONS FOR INDUSTRY AND
NATIONAL INDUSTRIAL SECURITY PROGRAM.

(a) Reports Required.--Not later than 90 days after the date of the
enactment of this Act and every six months thereafter, the Secretary of
Defense shall submit to the congressional defense committees, the
Committee on Homeland Security and Governmental Affairs of the Senate,
and the Committee on Government Reform of the House of Representatives,
a report on the future requirements of the Department of Defense with
respect to the Personnel Security Investigations for Industry and the
National Industrial Security Program of the Defense Security Service.
(b) Contents of Reports.--
(1) Initial report.--The initial report required under
subsection (a) shall include each of the following:
(A) The number of personnel security clearance
investigations conducted during the period beginning on
October 1, 1999, and ending on September 30, 2006.
(B) The number of each type of security clearance
granted during that period.
(C) The unit cost to the Department of Defense of
each security clearance granted during that period.
(D) The amount of any fee or surcharge paid to the
Office of Personnel Management as a result of
conducting a personnel security clearance
investigation.
(E) A description of the procedures used by the
Secretary of Defense to estimate the number of
personnel security clearance investigations to be
conducted during a fiscal year.
(F) A description of any effect of delays and
backlogs in the personnel security clearance
investigation process on the national security of the
United States.
(G) A description of any effect of delays and
backlogs in the personnel security clearance
investigation process on the defense industrial base
assets of the United States.
(H) A plan developed by the Secretary of Defense to
reduce such delays and backlogs.
(I) A plan developed by the Secretary of Defense to
adequately fund the personnel security clearance
investigation process.
(J) A plan developed by the Secretary of Defense to
establish a more stable and effective Personnel
Security Investigations Program.
(K) A plan developed by the Secretary of Defense to
involve external sources, including defense
contractors, in the plans of the Secretary of Defense
under subparagraphs (H), (I), and (J).
(2) Subsequent reports.--Each report required to be
submitted under subsection (a) after the submission of the
initial report shall include each of the following:
(A) The funding requirements of the personnel
security clearance investigation program and ability of
the Secretary of Defense to fund the program.
(B) The size of the personnel security clearance
investigation process backlog.
(C) The length of the average delay for an
individual case pending in the personnel security
clearance investigation process.
(D) Any progress made by the Secretary of Defense
during the six months preceding the date on which the
report is submitted toward implementing planned changes
in the personnel security clearance investigation
process.
(E) A determination certified by the Secretary of
Defense of whether the personnel security clearance
investigation process has improved during the six
months preceding the date on which the report is
submitted.
(c) Comptroller General Report.--As soon as practicable after the
Secretary of Defense submits the initial report required under
subsection (a), the Comptroller General shall submit a report to
Congress that contains a review of such initial report.
(d) Sense of Congress on Improving the Personnel Security
Investigations Program.--
(1) Findings.--Congress finds the following:
(A) Since fiscal year 2000, the General
Accountability Office has listed the Personnel Security
Investigations Program of the Department of Defense as
a systemic weakness that affects more than one
component of the Department and may jeopardize the
operations of the Department.
(B) In 2005, the Government Accountability Office
designated the Personnel Security Investigations
Program as a high-risk area because delays by the
Program in issuing security clearances can affect
national security.
(C) In 2005, the Government Accountability Office
found that the Department of Defense continues to face
sizeable security clearance backlogs.
(D) The Government Accountability Office also
reported in 2005 that security clearance delays
increase national security risks, delay the start of
classified work, hamper employers from hiring the best
qualified workers, and increase the cost to the
Government of national security-related contracts.
(E) These security clearance backlogs and delays
continue in 2006, and have brought the security
clearance program to a reported standstill.
(2) Sense of congress.--It is the sense of Congress that--
(A) the delays and backlogs associated with the
Personnel Security Investigations Program threaten the
national security of the United States and key defense
industrial assets; and
(B) the Secretary of Defense should take such steps
as are necessary to eliminate the backlogs of
applications for security clearance and the delays
associated with the security clearance application
process and make systemic improvements to the Personnel
Security Investigations Program.

Subtitle E--Other Matters

SEC. 341. DEPARTMENT OF DEFENSE STRATEGIC POLICY ON PREPOSITIONING OF
MATERIEL AND EQUIPMENT.

(a) Strategic Policy Required.--Chapter 131 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 2229. Strategic policy on prepositioning of materiel and
equipment
``(a) Policy Required.--The Secretary of Defense shall maintain a
strategic policy on the programs of the Department of Defense for the
prepositioning of materiel and equipment. Such policy shall take into
account national security threats, strategic mobility, and service
requirements.
``(b) Limitation of Diversion of Prepositioned Materiel.--The
Secretary of a military department may not divert materiel or equipment
from prepositioned stocks except--
``(1) in accordance with a change made by the Secretary of
Defense to the policy maintained under subsection (a); or
``(2) for the purpose of supporting a contingency
operation.
``(c) Congressional Notification.--The Secretary of Defense may not
implement or change the policy required under subsection (a) until the
Secretary submits to the congressional defense committees a report
describing the policy or change to the policy.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``2229. Strategic policy on prepositioning of materiel and
equipment.''.
(c) Deadline for Establishment of Policy.--
(1) Deadline.--Not later than six months after the date of
the enactment of this Act, the Secretary of Defense shall
establish the strategic policy on the programs of the
Department of Defense for the prepositioning of materiel and
equipment required under section 2229 of title 10, United
States Code, as added by subsection (a).
(2) Limitation on diversion of prepositioned materiel.--
During the period beginning on the date of the enactment of
this Act and ending on the date on which the Secretary of
Defense submits the report required under section 2229(c) of
title 10, United States Code, on the policy established under
paragraph (1), the Secretary of a military department may not
divert materiel or equipment from prepositioned stocks except
for the purpose of supporting a contingency operation.

SEC. 342. AUTHORITY TO MAKE DEPARTMENT OF DEFENSE HORSES AVAILABLE FOR
ADOPTION AT END OF USEFUL WORKING LIFE.

(a) Inclusion of Department of Defense Horses in Existing
Authority.--Section 2583 of title 10, United States Code, is amended--
(1) in the section heading, by striking ``working dogs''
and inserting ``animals'';
(2) by striking ``working'' each place it appears;
(3) by striking ``dog'' and ``dogs'' each place they appear
and inserting ``animal'' and ``animals'', respectively;
(4) by striking ``dog's'' in paragraphs (1) and (2) of
subsection (a) and inserting ``animal's'';
(5) by striking ``a dog's adoptability'' in subsection (b)
and inserting ``the adoptability of the animal''; and
(6) by adding at the end the following new subsection:
``(g) Military Animal Defined.--In this section, the term `military
animal' means the following:
``(1) A military working dog.
``(2) A horse owned by the Department of Defense.''.
(b) Clerical Amendment.--The item relating to such section in the
table of sections at the beginning of chapter 153 of such title is
amended to read as follows:

``2583. Military animals: transfer and adoption at end of useful
working life.''.

SEC. 343. SALE AND USE OF PROCEEDS OF RECYCLABLE MUNITIONS MATERIALS.

(a) Establishment of Program.--Chapter 443 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 4690. Recyclable munitions materials: sale; use of proceeds
``(a) Authority for Program.--Notwithstanding section 2577 of this
title, the Secretary of the Army may carry out a program to sell
recyclable munitions materials resulting from the demilitarization of
conventional military munitions without regard to chapter 5 of title 40
and use any proceeds in accordance with subsection (c).
``(b) Method of Sale.--The Secretary shall use competitive
procedures to sell recyclable munitions materials under this section in
accordance with Federal procurement laws and regulations.
``(c) Proceeds.--(1) Proceeds from the sale of recyclable munitions
materials under this section shall be credited to an account that is
specified as being for Army ammunition demilitarization from funds made
available for the procurement of ammunition, to be available only for
reclamation, recycling, and reuse of conventional military munitions
(including research and development and equipment purchased for such
purpose).
``(2) Amounts credited under this subsection shall be available for
obligation for the fiscal year during which the funds are so credited
and for three subsequent fiscal years.
``(d) Regulations.--The Secretary shall prescribe regulations to
carry out the program established under this section. Such regulations
shall be consistent and in compliance with the Solid Waste Disposal Act
(42 U.S.C. 6901 et seq.) and the regulations implementing that Act.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``4690. Recyclable munitions materials: sale; use of proceeds.''.

SEC. 344. CAPITAL SECURITY COST SHARING.

(a) Reconciliation Required.--For each fiscal year, the Secretary
of Defense shall reconcile (1) the estimate of overseas presence of the
Secretary of Defense under subsection (b) for that fiscal year, with
(2) the determination of the Secretary of State under section 604(e)(1)
of the Secure Embassy Construction and Counterterrorism Act of 1999 (22
U.S.C. 4865 note) of the total overseas presence of the Department of
Defense for that fiscal year.
(b) Annual Estimate of Overseas Presence.--Not later than February
1 of each year, the Secretary of Defense shall submit to the
congressional defense committees an estimate of the total number of
Department of Defense overseas personnel subject to chief of mission
authority pursuant to section 207 of the Foreign Service Act of 1980
(22 U.S.C. 3927) during the fiscal year that begins on October 1 of
that year.

SEC. 345. PRIORITIZATION OF FUNDS WITHIN NAVY MISSION OPERATIONS, SHIP
MAINTENANCE, COMBAT SUPPORT FORCES, AND WEAPONS SYSTEM
SUPPORT.

(a) In General.--The Secretary of the Navy shall take such steps as
necessary through the planning, programming, budgeting, and execution
systems of the Department of the Navy to ensure that financial
resources are provided for each fiscal year as necessary to enable the
Navy to fund the following requirements of the Navy for that fiscal
year:
(1) 100 percent of the requirements for steaming days per
quarter for deployed ship operations.
(2) 100 percent of the requirements for steaming days per
quarter for non-deployed ship operations.
(3) 100 percent of the projected ship and air depot
maintenance.
(b) Limitation of Funds for Navy Expeditionary Combat Command.--Of
the funds appropriated for the Department of Navy for any fiscal year
after fiscal year 2006, no operation and maintenance funds may be
expended for the Navy Expeditionary Combat Command until the funding
priorities in subsection (a) are met for that fiscal year.
(c) Annual Report.--The Secretary of Navy shall submit to the
congressional defense committees an annual report, to be submitted each
year with the annual operation and maintenance justification of
estimates material for the next fiscal year, that certifies that the
requirements in subsection (a) are satisfied for the fiscal year for
which that material is submitted.

SEC. 346. PRIORITIZATION OF FUNDS WITHIN ARMY RECONSTITUTION AND
TRANSFORMATION.

(a) In General.--The Secretary of the Army shall take such steps as
necessary through the planning, programming, budgeting, and execution
systems of the Department of the Army to ensure that financial
resources are provided for each fiscal year as necessary to enable the
Army to meet its requirements in that fiscal year for each of the
following:
(1) The repair, recapitalization, and replacement of
equipment used in the Global War on Terrorism, based on
implementation of requirements based on a cost estimate for
such purposes of at least $72,300,000,000 over the period of
the five fiscal years beginning with fiscal year 2008.
(2) The fulfillment of equipment requirements of units
transforming to modularity in accordance with the Modular Force
Initiative report submitted to Congress in March 2006, based on
implementation of requirements based on a cost estimate for
such purposes of $47,600,000,000 over the period of the five
fiscal years beginning with fiscal year 2008.
(3) The reconstitution of equipment and materiel in
prepositioned stocks by 2012 in accordance with requirements
under the Army Prepositioned Stocks Strategy 2012 or a
subsequent strategy implemented under the guidelines in section
2229 of title 10, United States Code.
(b) Annual Report.--The Secretary of the Army shall submit to the
congressional defense committees an annual report, until the
requirements of subsection (a) have been met, setting forth the
progress toward meeting those requirements. Any information required to
be included in the report concerning funding priorities under paragraph
(1) or (2) of subsection (a) shall be itemized by active duty component
and reserve component. The report for any year shall be submitted at
the time the budget of the President for the next fiscal year is
submitted to Congress. Each such report shall include the following:
(1) A complete itemization of the requirements for the
funding priorities in subsection (a), including an itemization
for all types of modular brigades for both active and reserve
components.
(2) A list of any shortfalls that exist between available
funding, equipment, supplies, and industrial capacity and
required funding, equipment, supplies, and industrial capacity
in accordance with the funding priorities in subsection (a).
(3) A list of the requirements for the funding priorities
in subsection (a) that the Army has included in the budget for
that fiscal year, including a detailed listing of the type,
quantity, and cost of the equipment the Army plans to repair,
recapitalize, or procure, set forth by appropriations account
and Army component.
(4) An assessment of the progress made during that fiscal
year toward meeting the overall requirements of the funding
priorities in subsection (a).
(5) A description of how the Army defines costs associated
with modularity versus the costs associated with modernizing
equipment platforms and repairing, recapitalizing, and
replacing equipment used during the global war on terrorism.
(6) The results of Army assessments of modular force
capabilities, including lessons learned from existing modular
units and any modifications that have been made to modularity.
(7) The assessment of each of the Chief of the National
Guard Bureau and the Chief of the Army Reserve of each of the
items described in paragraphs (1) through (6).
(c) Limitation on Funds for Future Combat Systems.--Of the funds
appropriated for the Army for any fiscal year after fiscal year 2007,
not more than $2,850,000,000 may be expended for the Future Combat
Systems until the funding priorities in subsection (a) are met for that
fiscal year.
(d) Use of Excess Funds for Future Combat Systems.--Any funds
appropriated for the Future Combat Systems for any fiscal year not
expended in accordance with subsection (c) shall be used for programs
specified in subsection (a).

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Subtitle B--Reserve Forces

Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

(a) In General.--The Armed Forces are authorized strengths for
active duty personnel as of September 30, 2007, as follows:
(1) The Army, 512,400.
(2) The Navy, 340,700.
(3) The Marine Corps, 180,000.
(4) The Air Force, 334,200.
(b) Limitation.--
(1) Army.--The authorized strength for the Army provided in
paragraph (1) of subsection (a) for active duty personnel for
fiscal year 2007 is subject to the condition that costs of
active duty personnel of the Army for that fiscal year in
excess of 482,400 shall be paid out of funds authorized to be
appropriated for that fiscal year for a contingent emergency
reserve fund or as an emergency supplemental appropriation.
(2) Marine corps.--The authorized strength for the Marine
Corps provided in paragraph (3) of subsection (a) for active
duty personnel for fiscal year 2007 is subject to the condition
that costs of active duty personnel of the Marine Corps for
that fiscal year in excess of 175,000 shall be paid out of
funds authorized to be appropriated for that fiscal year for a
contingent emergency reserve fund or as an emergency
supplemental appropriation.

SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM
LEVELS.

Section 691(b) of title 10, United States Code, is amended by
striking paragraphs (1) through (4) and inserting the following:
``(1) For the Army, 504,400.
``(2) For the Navy, 340,700.
``(3) For the Marine Corps, 180,000.
``(4) For the Air Force, 334,200.''.

SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS
ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2008 AND 2009.

Effective October 1, 2007, the text of section 403 of the Ronald W.
Reagan National Defense Authorization Act for Fiscal Year 2005 (Public
Law 108-375; 118 Stat. 1863) is amended to read as follows:
``(a) Authority.--
``(1) Army.--For each of fiscal years 2008 and 2009, the
Secretary of Defense may, as the Secretary determines necessary
for the purposes specified in paragraph (3), establish the
active-duty end strength for the Army at a number greater than
the number otherwise authorized by law up to the number equal
to the fiscal-year 2007 baseline plus 20,000.
``(2) Marine corps.--For each of fiscal years 2008 and
2009, the Secretary of Defense may, as the Secretary determines
necessary for the purposes specified in paragraph (3),
establish the active-duty end strength for the Marine Corps at
a number greater than the number otherwise authorized by law up
to the number equal to the fiscal-year 2007 baseline plus
4,000.
``(3) Purpose of increases.--The purposes for which
increases may be made in Army and Marine Corps active duty end
strengths under paragraphs (1) and (2) are--
``(A) to support operational missions; and
``(B) to achieve transformational reorganization
objectives, including objectives for increased numbers
of combat brigades and battalions, increased unit
manning, force stabilization and shaping, and
rebalancing of the active and reserve component forces.
``(4) Fiscal-year 2007 baseline.--In this subsection, the
term `fiscal-year 2007 baseline', with respect to the Army and
Marine Corps, means the active-duty end strength authorized for
those services in section 401 of the National Defense
Authorization Act for Fiscal Year 2007.
``(5) Active-duty end strength.--In this subsection, the
term `active-duty end strength' means the strength for active-
duty personnel of one of the Armed Forces as of the last day of
a fiscal year.
``(b) Relationship to Presidential Waiver Authority.--Nothing in
this section shall be construed to limit the President's authority
under section 123a of title 10, United States Code, to waive any
statutory end strength in a time of war or national emergency.
``(c) Relationship to Other Variance Authority.--The authority
under subsection (a) is in addition to the authority to vary authorized
end strengths that is provided in subsections (e) and (f) of section
115 of title 10, United States Code.
``(d) Budget Treatment.--
``(1) Fiscal year 2008 budget.--The budget for the
Department of Defense for fiscal year 2008 as submitted to
Congress shall comply, with respect to funding, with
subsections (c) and (d) of section 691 of title 10, United
States Code.
``(2) Other increases.--If the Secretary of Defense plans
to increase the Army or Marine Corps active duty end strength
for a fiscal year under subsection (a), then the budget for the
Department of Defense for that fiscal year as submitted to
Congress shall include the amounts necessary for funding that
active duty end strength in excess of the fiscal year 2007
active duty end strength authorized for that service under
section 401 of the National Defense Authorization Act for
Fiscal Year 2007.''.

Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

(a) In General.--The Armed Forces are authorized strengths for
Selected Reserve personnel of the reserve components as of September
30, 2007, as follows:
(1) The Army National Guard of the United States, 350,000.
(2) The Army Reserve, 200,000.
(3) The Navy Reserve, 71,300.
(4) The Marine Corps Reserve, 39,600.
(5) The Air National Guard of the United States, 107,000.
(6) The Air Force Reserve, 74,900.
(7) The Coast Guard Reserve, 10,000.
(b) Adjustments.--The end strengths prescribed by subsection (a)
for the Selected Reserve of any reserve component shall be
proportionately reduced by--
(1) the total authorized strength of units organized to
serve as units of the Selected Reserve of such component which
are on active duty (other than for training) at the end of the
fiscal year; and
(2) the total number of individual members not in units
organized to serve as units of the Selected Reserve of such
component who are on active duty (other than for training or
for unsatisfactory participation in training) without their
consent at the end of the fiscal year.
Whenever such units or such individual members are released from active
duty during any fiscal year, the end strength prescribed for such
fiscal year for the Selected Reserve of such reserve component shall be
increased proportionately by the total authorized strengths of such
units and by the total number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE
RESERVE COMPONENTS.

Within the end strengths prescribed in section 411(a), the reserve
components of the Armed Forces are authorized, as of September 30,
2007, the following number of Reserves to be serving on full-time
active duty or full-time duty, in the case of members of the National
Guard, for the purpose of organizing, administering, recruiting,
instructing, or training the reserve components:
(1) The Army National Guard of the United States, 28,165.
(2) The Army Reserve, 15,416.
(3) The Navy Reserve, 12,564.
(4) The Marine Corps Reserve, 2,261.
(5) The Air National Guard of the United States, 13,291.
(6) The Air Force Reserve, 2,707.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

The minimum number of military technicians (dual status) as of the
last day of fiscal year 2007 for the reserve components of the Army and
the Air Force (notwithstanding section 129 of title 10, United States
Code) shall be the following:
(1) For the Army Reserve, 7,912.
(2) For the Army National Guard of the United States,
27,615.
(3) For the Air Force Reserve, 10,124.
(4) For the Air National Guard of the United States,
23,255.

SEC. 414. FISCAL YEAR 2007 LIMITATION ON NUMBER OF NON-DUAL STATUS
TECHNICIANS.

(a) Limitations.--
(1) National guard.--Within the limitation provided in
section 10217(c)(2) of title 10, United States Code, the number
of non-dual status technicians employed by the National Guard
as of September 30, 2007, may not exceed the following:
(A) For the Army National Guard of the United
States, 1,600
(B) For the Air National Guard of the United
States, 350.
(2) Army reserve.--The number of non-dual status
technicians employed by the Army Reserve as of September 30,
2007, may not exceed 595.
(3) Air force reserve.--The number of non-dual status
technicians employed by the Air Force Reserve as of September
30, 2007, may not exceed 90.
(b) Non-Dual Status Technicians Defined.--In this section, the term
``non-dual status technician'' has the meaning given that term in
section 10217(a) of title 10, United States Code.

SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON
ACTIVE DUTY FOR OPERATIONAL SUPPORT.

During fiscal year 2007, the maximum number of members of the
reserve components of the Armed Forces who may be serving at any time
on full-time operational support duty under section 115(b) of title 10,
United States Code, is the following:
(1) The Army National Guard of the United States, 17,000.
(2) The Army Reserve, 13,000.
(3) The Navy Reserve, 6,200.
(4) The Marine Corps Reserve, 3,000.
(5) The Air National Guard of the United States, 16,000.
(6) The Air Force Reserve, 14,000.

Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

There is hereby authorized to be appropriated to the Department of
Defense for military personnel for fiscal year 2007 a total of
$109,820,468,000. The authorization in the preceding sentence
supersedes any other authorization of appropriations (definite or
indefinite) for such purpose for fiscal year 2007.

SEC. 422. ARMED FORCES RETIREMENT HOME.

There is hereby authorized to be appropriated for fiscal year 2007
from the Armed Forces Retirement Home Trust Fund the sum of $54,846,000
for the operation of the Armed Forces Retirement Home.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Subtitle B--Reserve Component Management

Subtitle C--Education and Training

Subtitle D--General Service Authorities

Subtitle E--Authorities Relating to Guard and Reserve Duty

Subtitle F--Decorations and Awards

Subtitle G--Matters Relating to Casualties

Subtitle H--Assistance to Local Educational Agencies for Defense
Dependents Education

Subtitle I--Postal Benefits

Sec. 575. Postal benefits program for members of the Armed Forces.
Sec. 576. Funding.
Sec. 577. Duration.

Subtitle J--Other Matters

Subtitle A--Officer Personnel Policy

SEC. 501. AUTHORIZED STRENGTH OF NAVY RESERVE FLAG OFFICERS.

(a) Simplification of Counting of Navy Reserve Flag Officers.--
Subsection (c) of section 12004 of title 10, United States Code, is
amended to read as follows:
``(c) The authorized strength of the Navy under subsection (a) is
exclusive of officers counted under section 526 of this title.''.
(b) Conforming Amendment.--Subsection (d) of such section is
amended by striking ``of those'' and inserting ``of officers''.

SEC. 502. STANDARDIZATION OF GRADE OF SENIOR DENTAL OFFICER OF THE AIR
FORCE WITH THAT OF SENIOR DENTAL OFFICER OF THE ARMY.

(a) Air Force Assistant Surgeon General for Dental Services.--
Section 8081 of title 10, United States Code, is amended by striking
``brigadier general'' in the second sentence and inserting ``major
general''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date of the occurrence of the next vacancy in the
position of Assistant Surgeon General for Dental Services in the Air
Force that occurs after the date of the enactment of this Act or, if
earlier, on the date of the appointment to the grade of major general
of the officer who is the incumbent in that position on the date of the
enactment of the Act.

SEC. 503. MANAGEMENT OF CHIEF WARRANT OFFICERS.

(a) Retention of Chief Warrant Officers, W-4, Who Have Twice Failed
of Selection for Promotion.--Section 580(e)(1) of title 10, United
States Code, is amended by striking ``continued on active duty if'' and
all that follows and inserting ``continued on active duty if--
``(A) in the case of a warrant officer in the grade of
chief warrant officer, W-2, or chief warrant officer, W-3, the
warrant officer is selected for continuation on active duty by
a selection board convened under section 573(c) of this title;
and
``(B) in the case of a warrant officer in the grade of
chief warrant officer, W-4, the warrant officer is selected for
continuation on active duty by the Secretary concerned under
such procedures as the Secretary may prescribe.''.
(b) Mandatory Retirement for Length of Service.--Section 1305(a) of
such title is amended--
(1) by striking ``(1) Except as'' and all the follows
through ``W-5)'' and inserting ``A regular warrant officer'';
(2) by inserting ``as a warrant officer'' after ``years of
active service'';
(3) by inserting ``the date on which'' after ``60 days
after''; and
(4) by striking paragraph (2).

SEC. 504. REDUCTION IN TIME-IN-GRADE REQUIREMENT FOR PROMOTION TO
CAPTAIN IN THE ARMY, AIR FORCE, AND MARINE CORPS AND
LIEUTENANT IN THE NAVY.

Section 619(a)(1) of title 10, United States Code, is amended by
striking ``he has completed'' in the matter preceding subparagraph (A)
and all that follows through the period at the end of subparagraph (B)
and inserting ``the officer has completed 18 months of service in the
grade in which the officer holds a permanent appointment''.

SEC. 505. MILITARY STATUS OF OFFICERS SERVING IN CERTAIN INTELLIGENCE
COMMUNITY POSITIONS.

(a) Clarification of Military Status.--Section 528 of title 10,
United States Code, is amended--
(1) by striking subsections (a) and (b) and inserting the
following:
``(a) Military Status.--An officer of the armed forces, while
serving in a position covered by this section--
``(1) shall not be subject to supervision or control by the
Secretary of Defense or any other officer or employee of the
Department of Defense, except as directed by the Secretary of
Defense concerning reassignment from such position; and
``(2) may not exercise, by reason of the officer's status
as an officer, any supervision or control with respect to any
of the military or civilian personnel of the Department of
Defense except as otherwise authorized by law.
``(b) Director and Deputy Director of CIA.--When the position of
Director or Deputy Director of the Central Intelligence Agency is held
by an officer of the armed forces, the officer serving in that
position, while so serving, shall be excluded from the limitations in
sections 525 and 526 of this title. However, if both such positions are
held by an officer of the armed forces, only one such officer may be
excluded from those limitation while so serving.''; and
(2) by adding at the end the following new subsections:
``(e) Effect of Appointment.--Except as provided in subsection (a),
the appointment or assignment of an officer of the armed forces to a
position covered by this section shall not affect--
``(1) the status, position, rank, or grade of such officer
in the armed forces; or
``(2) any emolument, perquisite, right, privilege, or
benefit incident to or arising out of such status, position,
rank, or grade.
``(f) Military Pay and Allowances.--An officer of the armed forces
on active duty who is appointed or assigned to a position covered by
this section shall, while serving in such position and while remaining
on active duty, continue to receive military pay and allowances and
shall not receive the pay prescribed for such position. Funds from
which such military pay and allowances are paid to such officer while
so serving shall be reimbursed from funds available to the Director of
the Central Intelligence Agency (for an officer serving in a position
within the Central Intelligence Agency) or from funds available to the
Director of National Intelligence (for an officer serving in a position
within the Office of the Director of National Intelligence).
``(g) Covered Positions.--The positions covered by this section are
the positions specified in subsections (b) and (c) and the positions
designated under subsection (d).''.
(b) Clerical Amendments.--
(1) The heading of such section is amended to read as
follows:
``Sec. 528. Officers serving in certain intelligence positions:
military status; exclusion from distribution and strength
limitations; pay and allowances''.
(2) The table of sections at the beginning of chapter 32 of
such title is amended to read as follows:

``528. Officers serving in certain intelligence positions: military
status; exclusion from distribution and
strength limitations; pay and
allowances.''.

Subtitle B--Reserve Component Management

SEC. 511. REVISIONS TO RESERVE CALL-UP AUTHORITY.

(a) Maximum Number of Days.--Subsection (a) of section 12304 of
title 10, United States Code, is amended by striking ``270 days'' and
inserting ``365.''
(b) Support for Disasters.--Such section is further amended--
(1) in subsection (b)--
(A) by striking ``or'' at the end of paragraph (1);
(B) by striking the period at the end of paragraph
(2) and inserting ``; or''; and
(C) by adding at the end the following new
paragraph:
``(3) a serious natural or manmade disaster, accident, or
catastrophe that occurs in the United States, its territories
and possessions, or Puerto Rico.''; and
(2) in subsection (c)(1)--
(A) by striking ``title or,'' and inserting
``title,''; and
(B) by striking ``, to provide'' and all that
follows through the end and inserting a period.
(c) Fair Treatment.--Such section is further amended--
(1) by redesignating subsection (i) as subsection (j); and
(2) by inserting after subsection (h) the following new
subsection (i):
``(i) Considerations for Involuntary Order to Active Duty.--(1) In
determining which members of the Selected Reserve and Individual Ready
Reserve will be ordered to duty without their consent under this
section, appropriate consideration shall be given to--
``(A) the length and nature of previous service, to assure
such sharing of exposure to hazards as the national security
and military requirements will reasonably allow;
``(B) family responsibilities; and
``(C) employment necessary to maintain the national health,
safety, or interest.
``(2) The Secretary of Defense shall prescribe such policies and
procedures as the Secretary considers necessary to carry out this
subsection.''.

SEC. 512. MILITARY RETIREMENT CREDIT FOR CERTAIN SERVICE BY NATIONAL
GUARD MEMBERS PERFORMED WHILE IN A STATE DUTY STATUS
IMMEDIATELY AFTER THE TERRORIST ATTACKS OF SEPTEMBER 11,
2001.

Subsection (c) of section 514 of the National Defense Authorization
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3232) is
amended by adding at the end the following new paragraph:
``(3) In the State of New Jersey: Bergen, Hudson, Union,
and Middlesex.''.

SEC. 513. REPORT ON PRIVATE-SECTOR PROMOTION AND CONSTRUCTIVE
TERMINATION OF MEMBERS OF THE RESERVE COMPONENTS CALLED
OR ORDERED TO ACTIVE SERVICE.

(a) Report Required.--Not later than March 1, 2007, the Secretary
of Defense shall submit to the Committee on Armed Services of the
Senate and the Committee on Armed Services of the House of
Representatives a report on the promotion and constructive termination
by private-sector employers of members of the reserve components called
or ordered to active service.
(b) Collection of Information.--The Secretary of Defense shall base
the report required under subsection (a) on information submitted
voluntarily by members of the reserve components.
(c) Constructive Termination.--In this section, the term
``constructive termination'' means the voluntary resignation of an
employee because of working conditions the employee finds unbearable.

Subtitle C--Education and Training

SEC. 521. AUTHORITY TO PERMIT MEMBERS WHO PARTICIPATE IN THE GUARANTEED
RESERVE FORCES DUTY SCHOLARSHIP PROGRAM TO PARTICIPATE IN
THE HEALTH PROFESSIONS SCHOLARSHIP PROGRAM AND SERVE ON
ACTIVE DUTY.

Paragraph (3) of section 2107a(b) of title 10, United States Code,
is amended--
(1) by inserting ``or a cadet or former cadet under this
section who signs an agreement under section 2122 of this
title,'' after ``military junior college,''; and
(2) by inserting ``, or former cadet,'' after ``consent of
the cadet'' and after ``submitted by the cadet''.

SEC. 522. JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTION
ELIGIBILITY EXPANSION.

Section 2031 of title 10, United States Code, is amended--
(1) in subsection (d)(1), by inserting ``who are receiving
retired or retainer pay,'' after ``Fleet Marine Corps
Reserve,''; and
(2) by adding at the end the following new subsection (e):
``(e) Instead of, or in addition to, the detailing of active-duty
officers and noncommissioned officers under subsection (c)(1), and the
employment of retired officers and noncommissioned officers and members
of the Fleet Reserve or Fleet Marine Corps Reserve under subsection
(d), the Secretary of the military department concerned may authorize
qualified institutions to employ as administrators and instructors in
the program, retired officers and noncommissioned officers who qualify
for retired pay for nonregular service under the provisions of chapter
1223 of this title but for being under the age specified in section
12731(a)(1) of this title for eligibility for such retired pay, whose
qualifications are approved by the Secretary and the institution
concerned, and who request such employment, subject to the following:
``(1) The compensation package for officers and
noncommissioned officers employed under this subsection shall
not be coupled with either active duty pay or retired pay, but
instead shall be at a rate contracted individually and
determined by the Secretary of the military department
concerned. The Secretary may pay the institution an amount the
Secretary determined to be appropriate, but the amount may not
be more than the amount that would be paid on behalf of an
equivalent retiree or member of the Fleet Reserve or Fleet
Marine Corps Reserve under the provisions of subsection (d)(1).
The Secretary may continue to pay individuals employed under
this subsection pre-determined compensation packages, even
after they reach the age of 60. Payments by the Secretary
concerned under this paragraph shall be made from funds
appropriated for that purpose.
``(2) Such a retired member is not, while so employed,
considered to be on active duty or inactive duty training for
any purpose.''.

SEC. 523. AUTHORITY FOR UNITED STATES MILITARY ACADEMY AND UNITED
STATES AIR FORCE ACADEMY PERMANENT MILITARY PROFESSORS TO
ASSUME COMMAND POSITIONS WHILE ON PERIODS OF SABBATICAL.

(a) United States Military Academy.--Section 4334(d) of title 10,
United States Code, is amended--
(1) by striking ``permanent professors and the'';
(2) by striking ``exercise'' and inserting ``exercises'';
and
(3) by adding at the end the following new sentence: ``The
permanent professors exercise command only in the academic
department of the Academy and, at the discretion of the
Secretary of the Army, within Army units to which they are
assigned.''.
(b) United States Air Force Academy.--Section 9334(b) of such title
is amended--
(1) by striking ``permanent professors and the''; and
(2) by striking ``exercise'' and inserting ``exercises'';
and
(3) by adding at the end the following new sentence: ``The
permanent professors exercise command only in the academic
department of the Academy and, at the discretion of the
Secretary of the Air Force, within Air Force units to which
they are assigned.''.

SEC. 524. EXPANSION OF SERVICE ACADEMY EXCHANGE PROGRAMS WITH FOREIGN
MILITARY ACADEMIES.

(a) United States Military Academy.--
(1) Number of participants in exchange program.--Subsection
(b) of section 4345 of title 10, United States Code, is amended
by striking ``24'' and inserting ``100''.
(2) Costs and expenses.--Subsection (c) of such section is
amended--
(A) by striking ``for the Academy'' in paragraph
(3) and all that follows in that paragraph and
inserting ``for the Academy and such additional funds
as may be available to the Academy from a source other
than appropriated funds to support cultural immersion,
regional awareness, or foreign language training
activities in connection with the exchange program.'';
and
(B) by adding at the end the following new
paragraph:
``(4) Expenditures in support of the exchange program from funds
appropriated for the Academy may not exceed $1,000,000 during any
fiscal year.''.
(b) United States Naval Academy.--
(1) Number of participants in exchange program.--Subsection
(b) of section 6957a of title 10, United States Code, is
amended by striking ``24'' and inserting ``100''.
(2) Costs and expenses.--Subsection (c) of such section is
amended--
(A) by striking ``for the Academy'' in paragraph
(3) and all that follows in that paragraph and
inserting ``for the Academy and such additional funds
as may be available to the Academy from a source other
than appropriated funds to support cultural immersion,
regional awareness, or foreign language training
activities in connection with the exchange program.'';
and
(B) by adding at the end the following new
paragraph:
``(4) Expenditures in support of the exchange program from funds
appropriated for the Naval Academy may not exceed $1,000,000 during any
fiscal year.''.
(c) United States Air Force Academy.--
(1) Number of participants in exchange program.--Subsection
(b) of section 9345 of title 10, United States Code, is amended
by striking ``24'' and inserting ``100''.
(2) Costs and expenses.--Subsection (c) of such section is
amended--
(A) by striking ``for the Academy'' in paragraph
(3) and all that follows in that paragraph and
inserting ``for the Academy and such additional funds
as may be available to the Academy from a source other
than appropriated funds to support cultural immersion,
regional awareness, or foreign language training
activities in connection with the exchange program.'';
and
(B) by adding at the end the following new
paragraph:
``(4) Expenditures in support of the exchange program from funds
appropriated for the Academy may not exceed $1,000,000 during any
fiscal year.''.
(d) Effective Dates.--The amendments made by subsection (a) shall
take effect on the date of the enactment of this Act. The amendments
made by subsections (b) and (c) shall take effect on October 1, 2008.

SEC. 525. REVIEW OF LEGAL STATUS OF JUNIOR ROTC PROGRAM.

(a) Review.--The Secretary of Defense shall conduct a review of the
1976 legal opinion issued by the General Counsel of the Department of
Defense regarding instruction of non-host unit students participating
in Junior Reserve Officers' Training Corps programs. The review shall
consider whether changes to law after the issuance of that opinion
allow in certain circumstances for the arrangement for assignment of
instructors that provides for the travel of an instructor from one
educational institution to another once during the regular school day
for the purposes of the Junior Reserve Officers' Training Corps program
as an authorized arrangement that enhances administrative efficiency in
the management of the program. If the Secretary, as a result of the
review, determines that such authority is not available, the Secretary
should also consider whether such authority should be available and
whether there should be authority to waive the restrictions under
certain circumstances.
(b) Report.--The Secretary shall submit to the Committee on Armed
Services of the Senate and the Committee on Armed Services of the House
of Representatives a report containing the results of the review not
later than 180 days after the date of the enactment of this Act.
(c) Interim Authority.--A current institution that has more than 70
students and is providing support to another educational institutional
with more than 70 students and has been providing for the assignment of
instructors from one school to the other may continue to provide such
support until 180 days following receipt of the report under subsection
(b).

Subtitle D--General Service Authorities

SEC. 531. TEST OF UTILITY OF TEST PREPARATION GUIDES AND EDUCATION
PROGRAMS IN ENHANCING RECRUIT CANDIDATE PERFORMANCE ON
THE ARMED SERVICES VOCATIONAL APTITUDE BATTERY (ASVAB)
AND ARMED FORCES QUALIFICATION TEST (AFQT).

(a) Requirement for Test.--The Secretary of Defense shall conduct a
test of the utility of commercially available test preparation guides
and education programs designed to assist recruit candidates achieve
scores on military recruit qualification testing that better reflect
the full potential of those recruit candidates in terms of aptitude and
mental category. The test shall be conducted through the Secretaries of
the Army, Navy and Air Force.
(b) Assessment of Commercially Available Guides and Programs.--The
test shall assess commercially available test preparation guides and
education programs designed to enhance test performance. The test
preparation guides assessed shall test both written formats and self-
paced computer-assisted programs. Education programs assessed may test
both self-study textbook and computer-assisted courses and instructor-
led courses.
(c) Objectives.--The objectives of the test are to determine the
following:
(1) The degree to which test preparation assistance
degrades test reliability and accuracy.
(2) The degree to which test preparation assistance allows
more accurate testing of skill aptitudes and mental capability.
(3) The degree to which test preparation assistance allows
individuals to achieve higher scores without sacrificing
reliability and accuracy.
(4) What role is recommended for test preparation
assistance in military recruiting.
(d) Control Group.--As part of the test, the Secretary shall
identify a population of recruit candidates who will not receive test
preparation assistance and will serve as a control group for the test.
Data from recruit candidates participating in the test and data from
recruit candidates in the control group shall be compared in terms of
both (1) test performance, and (2) subsequent duty performance in
training and unit settings following entry on active duty.
(e) Number of Participants.--The Secretary shall provide test
preparation assistance to a minimum of 2,000 recruit candidates and
shall identify an equal number to be established as the control group
population.
(f) Duration of Test.--The Secretary shall begin the test not later
than nine months after the date of the enactment of this Act. The test
shall identify participants over a one-year period from the start of
the test and shall assess duty performance for each participant for 18
months following entry on active duty. The last participant shall be
identified, but other participants may not be identified.
(g) Report on Findings.--Not later than six months after completion
of the duty performance assessment of the last identified participant
in the test, the Secretary of Defense shall submit to the Committee on
Armed Services in the Senate and the Committee on Armed Services of the
House of Representatives a report providing the findings of the
Secretary with respect to each of the objectives specified in
subsection (c) and the Secretary's recommendations.

SEC. 532. NONDISCLOSURE OF SELECTION BOARD PROCEEDINGS.

(a) Active-Duty Selection Board Proceedings.--
(1) Extension to all active-duty boards.--Chapter 36 of
title 10, United States Code, is amended by inserting after
section 613 the following new section:
``Sec. 613a. Nondisclosure of board proceedings
``(a) Nondisclosure.--The proceedings of a selection board convened
under section 611 this title may not be disclosed to any person not a
member of the board.
``(b) Prohibited Uses of Board Records.--The discussions and
deliberations of such a selection board and any written or documentary
record of such discussions and deliberations--
``(1) are immune from legal process;
``(2) may not be admitted as evidence; and
``(3) may not be used for any purpose in any action, suit,
or judicial or administrative proceeding without the consent of
the Secretary of the military department concerned.
``(c) Applicability.--The section shall apply with respect to the
proceedings of all selection boards convened under section 611 of this
title, including selection boards convened before the date of the
enactment of this section.''.
(2) Conforming amendment.--Section 618 of such title is
amended by striking subsection (f).
(b) Reserve Selection Board Proceedings.--Section 14104 of such
title is amended to read as follows:
``Sec. 14104. Nondisclosure of board proceedings
``(a) Nondisclosure.--The proceedings of a selection board convened
under section 14101of this title may not be disclosed to any person not
a member of the board.
``(b) Prohibited Uses of Board Records.--The discussions and
deliberations of such a selection board and any written or documentary
record of such discussions and deliberations--
``(1) are immune from legal process;
``(2) may not be admitted as evidence; and
``(3) may not be used for any purpose in any action, suit,
or judicial or administrative proceeding without the consent of
the Secretary of the military department concerned.
``(c) Applicability.--The section shall apply with respect to the
proceedings of all selection boards convened under section 14101 of
this title, including selection boards convened before the date of the
enactment of this section.''.
(c) Clerical Amendments.--
(1) The table of sections at the beginning of subchapter I
of chapter 36 of such title is amended by inserting after the
item relating to section 613 the following new item:

``14104. Nondisclosure of board proceedings.''.
(2) The item relating to section 14104 in the table of
sections at the beginning of chapter 1403 of such title is
amended to read as follows:

``14104. Nondisclosure of board proceedings.''.

SEC. 533. REPORT ON EXTENT OF PROVISION OF TIMELY NOTICE OF LONG-TERM
DEPLOYMENTS.

Not later than March 1, 2007, the Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives a report on the number
of members of the Armed Forces (shown by service and within each
service by reserve component and active component) who, since September
11, 2001, have not received at least 30 days notice (in the form of an
official order) before a deployment that will last 180 days or more.
With respect to members of the reserve components, the report shall
describe the degree of compliance (or noncompliance) with Department of
Defense policy concerning the amount of notice to be provided before
long-term mobilizations or deployments.

Subtitle E--Authorities Relating to Guard and Reserve Duty

SEC. 541. TITLE 10 DEFINITION OF ACTIVE GUARD AND RESERVE DUTY.

Section 101 of title 10, United States Code, is amended--
(1) by adding at the end of subsection (b) the following
new paragraph:
``(16) The term `Active Guard and Reserve' means a member
of a reserve component who is on active duty pursuant to
section 12301(d) of this title or, if a member of the Army
National Guard or Air National Guard, is on full-time National
Guard duty pursuant to section 502(f) of title 32, and who is
performing Active Guard and Reserve duty.''; and
(2) in paragraph (6)(A) of subsection (d)--
(A) by striking ``or full-time National Guard
duty'' after ``means active duty''; and
(B) by striking ``, pursuant to an order to active
duty or full-time National Guard duty'' and inserting
``pursuant to an order to full-time National Guard
duty,''.

SEC. 542. AUTHORITY FOR ACTIVE GUARD AND RESERVE DUTIES TO INCLUDE
SUPPORT OF OPERATIONAL MISSIONS ASSIGNED TO THE RESERVE
COMPONENTS AND INSTRUCTION AND TRAINING OF ACTIVE-DUTY
PERSONNEL.

(a) AGR Duty Under Title 10.--Subsections (a) and (b) of section
12310 of title 10, United States Code, are amended to read as follows:
``(a) Authority.--(1) The Secretary concerned may order a member of
a reserve component under the Secretary's jurisdiction to active duty
pursuant to section 12301(d) of this title to perform Active Guard and
Reserve duty organizing, administering, recruiting, instructing, or
training the reserve components.
``(2) A Reserve ordered to active duty under paragraph (1) shall be
ordered in the Reserve's reserve grade. While so serving, the Reserve
continues to be eligible for promotion as a Reserve, if otherwise
qualified.
``(b) Duties.--A Reserve on active duty under subsection (a) may
perform the following duties in addition to (and not in lieu of) the
Reserve's primary Active Guard and Reserve duties described in
subsection (a)(1):
``(1) Supporting operations or missions assigned in whole
or in part to the reserve components.
``(2) Supporting operations or missions performed or to be
performed by--
``(A) a unit composed of elements from more than
one component of the same armed force; or
``(B) a joint forces unit that includes--
``(i) one or more reserve component units;
or
``(ii) a member of a reserve component
whose reserve component assignment is in a
position in an element of the joint forces
unit.
``(3) Advising the Secretary of Defense, the Secretaries of
the military departments, the Joint Chiefs of Staff, and the
commanders of the unified combatant command regarding reserve
component matters.
``(4) Instructing or training in the United States or the
Commonwealth of Puerto Rico or possessions of the United States
of--
``(A) active-duty members of the armed forces;
``(B) members of foreign military forces (under the
same authorities and restrictions applicable to active-
duty members providing such instruction or training);
``(C) Department of Defense contractor personnel;
or
``(D) Department of Defense civilian employees.''.
(b) Military Technicians Under Title 10.--Section 10216(a) of such
title is amended--
(1) in paragraph (1)(C), by striking ``administration and''
and inserting ``organizing, administering, instructing, or'';
and
(2) by adding at the end the following new paragraph:
``(3) A military technician (dual status) who is employed under
section 3101 of title 5 may perform the following duties in addition to
(and not in lieu of) those primary duties described in paragraph (1):
``(A) Supporting operations or missions assigned in whole
or in part to the technician's unit;
``(B) Supporting operations or missions performed or to be
performed by--
``(i) a unit composed of elements from more than
one component of the technician's armed force; or
``(ii) a joint forces unit that includes--
``(I) one or more units of the technician's
component; or
``(II) a member of the technician's
component whose reserve component assignment is
in a position in an element of the joint forces
unit.
``(C) Instructing or training in the United States or the
Commonwealth of Puerto Rico or possessions of the United States
of--
``(i) active-duty members of the armed forces;
``(ii) members of foreign military forces (under
the same authorities and restrictions applicable to
active-duty members providing such instruction or
training);
``(iii) Department of Defense contractor personnel;
or
``(iv) Department of Defense civilian employees.''.
(c) National Guard Title 32 Training Duty.--Section 502(f) of title
32, United States Code, title is amended--
(1) by inserting ``(1)'' before ``Under regulations'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(3) by striking the last sentence and inserting the
following:
``(2) The training or duty ordered to be performed under paragraph
(1) may include the following:
``(A) Support of operations or missions undertaken by the
member's unit at the request of the President or Secretary of
Defense.
``(B) Support of training operations and training missions
assigned in whole or in part to the National Guard by the
Secretary concerned, but only to the extent that such training
missions and training operations--
``(i) are performed in the territorial limits of
the United States, its territories and possessions, the
District of Columbia, and the Commonwealth of Puerto
Rico; and
``(ii) are only to instruct active duty military,
foreign military (under the same authorities and
restrictions applicable to active duty troops),
Department of Defense contractor personnel, or
Department of Defense civilian employees.
``(3) Duty without pay shall be considered for all purposes as if
it were duty with pay.''.
(d) National Guard Technicians Under Title 32.--Section 709(a) of
title 32, United States Code, is amended--
(1) in paragraph (1)--
(A) by striking ``administration and'' and
inserting ``organizing, administering, instructing,
or''; and
(B) by striking ``and'' at the end of such
paragraph;
(2) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) the performance of the following duties in addition
to (and not in lieu of) those duties described by paragraphs
(1) and (2):
``(A) Support of operations or missions undertaken
by the technician's unit at the request of the
President or the Secretary of Defense.
``(B) Support of Federal training operations or
Federal training missions assigned in whole or in part
to the technician's unit.
``(C) Instructing or training in the United States
or the Commonwealth of Puerto Rico or possessions of
the United States of--
``(i) active-duty members of the armed
forces;
``(ii) members of foreign military forces
(under the same authorities and restrictions
applicable to active-duty members providing
such instruction or training);
``(iii) Department of Defense contractor
personnel; or
``(iv) Department of Defense civilian
employees.''.
(e) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``328. Active Guard and Reserve duty: Governor's authority.''.

SEC. 543. GOVERNOR'S AUTHORITY TO ORDER MEMBERS TO ACTIVE GUARD AND
RESERVE DUTY.

(a) In General.--Chapter 3 of title 32, United States Code, is
amended by adding at the end the following new section:
``Sec. 328. Active Guard and Reserve duty: Governor's authority
``(a) Authority.--The Governor of a State or the Commonwealth of
Puerto Rico, Guam, or the Virgin Islands, or the commanding general of
the District of Columbia National Guard, as the case may be, with the
consent of the Secretary concerned, may order a member of the National
Guard to perform Active Guard and Reserve duty, as defined by section
101(d)(6) of title 10, pursuant to section 502(f) of this title.
``(b) Duties.--A member of the National Guard performing duty under
subsection (a) may perform the following duties in addition to (and not
in lieu of) that member's primary Active Guard and Reserve duties of
organizing, administering, recruiting, instructing, and training the
reserve components:
``(1) Support of operations or missions undertaken by the
member's unit at the request of the President or the Secretary
of Defense.
``(2) Support of training operations and training missions
assigned in whole or in part by the Secretary concerned to the
National Guard, but only to the extent that such training
operation and training missions--
``(A) are performed in the territorial limits of
the United States, its territories and possessions, and
the Commonwealth of Puerto Rico; and
``(B) are only to instruct--
``(i) active-duty members of the armed
forces;
``(ii) members of foreign military forces
(under the same authorities and restrictions
applicable to active-duty members providing
such instruction or training);
``(iii) Department of Defense contractor
personnel; or
``(iv) Department of Defense civilian
employees.''.

SEC. 544. NATIONAL GUARD OFFICERS AUTHORITY TO COMMAND.

Section 325 of title 32, United States Code, is amended--
(1) in subsection (a)(2), by striking ``in command of a
National Guard unit'';
(2) by redesignating subsection (b) as subsection (c); and
(3) by inserting after subsection (a) the following new
subsection (b):
``(b) Advance Authorization and Consent.--The President and
Governor of the State or Commonwealth of Puerto Rico, Guam, or the
Virgin Islands, or the commanding general of the District of Columbia
National Guard, as the case may be, respectively, may give the
authorization and consent required by subsection (a)(2), in advance,
for the purpose of establishing the succession of command of a unit.'';
and
(4) by adding at the end the following new subsection:
``(d) National Guard Duties.--An officer who is not relieved from
duty in the National Guard while serving on active duty pursuant to
subsection (a)(2) may perform any duty authorized to be performed by
the laws of that officer's State or the laws of the Commonwealth of
Puerto Rico, Guam, the Virgin Islands, or the District of Columbia, as
the case may be, to be performed by the National Guard without regard
to the limitations imposed by section 1385 of title 18.''.

SEC. 545. EXPANSION OF OPERATIONS OF CIVIL SUPPORT TEAMS.

(a) In General.--Section 12310(c) of title 10, United States Code,
is amended--
(1) in paragraph (1)--
(A) by striking ``involving--'' and inserting
``involving any of the following:''; and
(B) by striking subparagraphs (A) and (B) and
inserting the following:
``(A) The use or threatened use of a weapon of mass
destruction (as defined in section 12304(i)(2) of this title)
in the United States.
``(B) A terrorist attack or threatened terrorist attack in
the United States that results, or could result, in
catastrophic loss of life or property.
``(C) The intentional or unintentional release of nuclear,
biological, radiological, or toxic or poisonous chemical
materials in the United States that results, or could result,
in catastrophic loss of life or property.
``(D) A natural or manmade disaster in the United States
that results in, or could result in, catastrophic loss of life
or property.'';
(2) by amending paragraph (3) to read as follows:
``(3) A Reserve may perform duty described in paragraph (1) only
while assigned to a reserve component weapons of mass destruction civil
support team.''; and
(3) by adding at the end the following new paragraph:
``(7) In this subsection, the term `United States' includes the
Commonwealth of Puerto Rico, Guam, and the Virgin Islands.''.
(b) Technical and Conforming Amendments.--Such section is further
amended--
(1) by striking the subsection heading and inserting
``Operations Relating to Defense Against Weapons of Mass
Destruction and Terrorist Attacks.--'';
(2) in paragraph (5), by striking ``rapid assessment
element team'' and inserting ``weapons of mass destruction
civil support team''; and
(3) in paragraph (6)--
(A) in the matter preceding subparagraph (A), by
striking ``paragraph (3)'' and inserting ``paragraphs
(1) and (3)''; and
(B) in subparagraph (B), by striking ``paragraph
(3)(B)'' and inserting ``paragraph (3)''.

Subtitle F--Decorations and Awards

SEC. 551. AUTHORITY FOR PRESENTATION OF MEDAL OF HONOR FLAG TO LIVING
MEDAL OF HONOR RECIPIENTS AND TO LIVING PRIMARY NEXT-OF-
KIN OF DECEASED MEDAL OF HONOR RECIPIENTS.

(a) Army.--Section 3755 of title 10, United States Code, is
amended--
(1) by striking ``after October 23, 2002''; and
(2) by adding at the end the following new sentence: ``In
the case of a posthumous presentation of the medal, the flag
shall be presented to the person to whom the medal is
presented''.
(b) Navy.--Section 6257 of such title is amended--
(1) by striking ``after October 23, 2002''; and
(2) by adding at the end the following new sentence: ``In
the case of a posthumous presentation of the medal, the flag
shall be presented to the person to whom the medal is
presented''.
(c) Air Force.--Section 8755 of such title is amended--
(1) by striking ``after October 23, 2002''; and
(2) by adding at the end the following new sentence: ``In
the case of a posthumous presentation of the medal, the flag
shall be presented to the person to whom the medal is
presented''.
(d) Coast Guard.--Section 505 of title 14, United States Code, is
amended--
(1) by striking ``after October 23, 2002''; and
(2) by adding at the end the following new sentence: ``In
the case of a posthumous presentation of the medal, the flag
shall be presented to the person to whom the medal is
presented''.
(e) Presentation of Flag for Prior Recipients of Medal of Honor.--
(1) Living recipients.--The President shall provide for the
presentation of the Medal of Honor Flag as expeditiously as
possible after the date of the enactment of this Act to each
living recipient of the Medal of Honor who was awarded the
Medal of Honor before that date.
(2) Survivors of deceased recipients.--The President shall
provide for posthumous presentation of the Medal of Honor Flag,
upon written application therefor, to the primary next of kin
of any recipient of the Medal of Honor who was awarded the
Medal of Honor before the date of the enactment of this Act and
who is deceased as of such date (or who dies after such date
and before the presentation required by paragraph (1)). For
purposes of this paragraph, the primary next-of-kin is the
person who would be entitled to receive the award of the Medal
of Honor for such deceased individual if the award were being
made posthumously at the time of the presentation of the Medal
of Honor Flag.
(3) Medal of honor flag.--In this subsection, the term
``Medal of Honor Flag'' means the flag designated under section
903 of title 36, United States Code.

SEC. 552. COLD WAR VICTORY MEDAL.

(a) Authority.--Chapter 57 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 1135. Cold War Victory Medal
``(a) Medal Authorized.--The Secretary concerned shall issue a
service medal, to be known as the `Cold War Victory Medal', to persons
eligible to receive the medal under subsection (b). The Cold War
Victory Medal shall be of an appropriate design approved by the
Secretary of Defense, with ribbons, lapel pins, and other
appurtenances.
``(b) Eligible Persons.--The following persons are eligible to
receive the Cold War Victory Medal:
``(1) A person who--
``(A) performed active duty or inactive duty
training as an enlisted member during the Cold War;
``(B) completed the person's initial term of
enlistment or, if discharged before completion of such
initial term of enlistment, was honorably discharged
after completion of not less than 180 days of service
on active duty; and
``(C) has not received a discharge less favorable
than an honorable discharge or a release from active
duty with a characterization of service less favorable
than honorable.
``(2) A person who--
``(A) performed active duty or inactive duty
training as a commissioned officer or warrant officer
during the Cold War;
``(B) completed the person's initial service
obligation as an officer or, if discharged or separated
before completion of such initial service obligation,
was honorably discharged after completion of not less
than 180 days of service on active duty; and
``(C) has not been released from active duty with a
characterization of service less favorable than
honorable and has not received a discharge or
separation less favorable than an honorable discharge.
``(c) One Award Authorized.--Not more than one Cold War Victory
Medal may be issued to any person.
``(d) Issuance to Representative of Deceased.--If a person
described in subsection (b) dies before being issued the Cold War
Victory Medal, the medal shall be issued to the person's
representative, as designated by the Secretary concerned.
``(e) Replacement.--Under regulations prescribed by the Secretary
concerned, a Cold War Victory Medal that is lost, destroyed, or
rendered unfit for use without fault or neglect on the part of the
person to whom it was issued may be replaced without charge.
``(f) Application for Medal.--The Cold War Victory Medal shall be
issued upon receipt by the Secretary concerned of an application for
such medal, submitted in accordance with such regulations as the
Secretary prescribes.
``(g) Uniform Regulations.--The Secretary of Defense shall ensure
that regulations prescribed by the Secretaries of the military
departments under this section are uniform so far as is practicable.
``(h) Definition.--In this section, the term `Cold War' means the
period beginning on September 2, 1945, and ending at the end of
December 26, 1991.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``1135. Cold War Victory Medal.''.

SEC. 553. POSTHUMOUS AWARD OF PURPLE HEART FOR PRISONERS OF WAR WHO DIE
IN OR DUE TO CAPTIVITY.

(a) Deceased POWs Not Otherwise Eligible for Purple Heart.--Chapter
57 of title 10, United States Code, is amended by adding after section
1135, as added by section 552(a), the following new section:
``Sec. 1136. Purple Heart: posthumous award for prisoners of war or
former prisoners of war dying in or due to captivity
``(a) For purposes of the award of the Purple Heart, the Secretary
concerned shall treat a death described in subsection (b) in the same
manner as the death of a member of the armed forces in action as the
result of an act of an enemy of the United States.
``(b) A death described in this subsection is either of the
following:
``(1) The death of a member of the armed forces who dies in
captivity under circumstances establishing eligibility for the
prisoner-of-war medal under section 1128 of this title but
under circumstances not otherwise establishing eligibility for
the Purple Heart.
``(2) The death of a member or former member of the armed
forces who following captivity as a prisoner of war is issued
the prisoner-of-war medal under section 1128 of this title and
who dies due to a disease or disability that was incurred
during that captivity, unless the member or former member
received a Purple Heart due to the injury or conditions
resulting in that disease or disability.
``(c) The Secretary of Defense shall prescribe regulations for
determining eligibility for the Purple Heart under this section. Such
regulations shall include criteria for the determination under
paragraph (2) of subsection (b) of whether a death is due to a disease
or disability incurred while a prisoner of war.
``(d) This section applies to any member of the armed forces who is
held as a prisoner of war after December 7, 1941. ''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding after the item relating to section
1135, as added by section 552(b), the following new item:

``1136. Purple Heart: posthumous award for prisoners of war or former
prisoners of war dying in or due to
captivity.''.
(c) Retroactive Awards.--In the case of a member or former member
of the Armed Forces covered by section 1135 of title 10, United States
Code, whose death is before the date of the enactment of this Act, the
Secretary concerned shall award the Purple Heart under that section
upon receipt of an application that is made to the Secretary in such
manner, and containing such information, as the Secretary requires.

SEC. 554. ADVANCEMENT ON THE RETIRED LIST OF CERTAIN DECORATED RETIRED
NAVY AND MARINE CORPS OFFICERS.

(a) Advancement on Retired List.--The Secretary of the Navy shall,
upon receipt of a qualifying application, advance on the retired list
of the Navy or Marine Corps, as applicable, any retired officer of the
Navy or Marine Corps described in subsection (b). Each such officer
shall be advanced to the next higher grade above the officer's retired
grade as of the day before the date of the enactment of this Act.
(b) Covered Officers.--Subsection (a) applies to any retired
officer of the Navy or Marine Corps--
(1) who was eligible to retire before November 1, 1959, but
who retired on or after that date; and
(2) who, under the provisions of law in effect before
November 1, 1959, would have been eligible, by reason of having
been specifically commended for performance of duty in actual
combat, to have been retired in the next higher grade if the
officer had retired before that date.
(c) Qualifying Application.--A qualifying application is an
application from an officer described in subsection (b) or, in the case
of a deceased officer, the surviving spouse or another immediate family
member (as determined by the Secretary) of the officer, that--
(1) requests advancement on the retired list under this
section; and
(2) provides such information as the Secretary may require.
(d) Effect of Advancement on Retired List.--The advancement of an
officer on the retired list pursuant to subsection (a) shall not
affect--
(1) in the case of a retired office who is living as of the
date of the enactment of this Act, the retired pay or other
benefits of the officer or the grade in which the officer could
be ordered or recalled to active duty; and
(2) any benefit to which any other person is or may become
entitled based upon the officer's service.

SEC. 555. REPORT ON DEPARTMENT OF DEFENSE PROCESS FOR AWARDING
DECORATIONS.

(a) Review.-- The Secretary of Defense shall conduct a review of
the policy, procedures, and processes of the military departments for
awarding decorations to members of the Armed Forces.
(b) Time Periods.--As part of the review, the Secretary shall
determine how long the award process takes--
(1) from the time a recommendation for the award of a
decoration is submitted until the time the award of the
decoration is approved; and
(2) from the time award of a decoration is approved until
the time when the decoration is presented to the recipient.
(c) Reserve Components.--In conducting the review, the Secretary
shall ensure that the timeliness of the awards process for members of
the reserve components is the same or similar as that for members of
the active components.
(d) Report.--Not later than 90 days after the date of the enactment
of this Act, the Secretary shall submit to the Committee on Armed
Services of the Senate and the Committee on Armed Services of the House
of Representatives a report containing the Secretary's findings as a
result of the review under subsection (a), together with a plan for
implementing whatever changes are determined to be appropriate to the
process for awarding decorations in order to ensure that decorations
are awarded in a timely manner, to the extent practicable.

Subtitle G--Matters Relating to Casualties

SEC. 561. CRITERIA FOR REMOVAL OF MEMBER FROM TEMPORARY DISABILITY
RETIRED LIST.

(a) Criteria.--Section 1210(e) of title 10, United States Code, is
amended by inserting ``of a permanent nature and stable and is'' after
``physical disability''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to any case received for consideration by a physical evaluation
board after the date of the enactment of this Act.

SEC. 562. DEPARTMENT OF DEFENSE COMPUTER/ELECTRONIC ACCOMMODATIONS
PROGRAM FOR SEVERELY WOUNDED MEMBERS.

(a) In General.--Chapter 58 of title 10, United States Code, is
amended by inserting after section 1150 the following new section:
``Sec. 1151. Severely wounded members: assistive technology and
services
``(a) Authority.--The Secretary of Defense may provide assistive
technology, assistive technology devices, and assistive technology
services, as those terms are defined in section 3 of the Assistive
Technology Act of 1998 (29 U.S.C. 3002), to a member of the armed
forces who has sustained a severe or debilitating illness or injury
while serving in support of a contingency operation.
``(b) Duration and Provision of Technology and Services.--The
Secretary may provide technology and services authorized by subsection
(a) for an indefinite period, without regard to whether the person
assisted continues to be a member of the armed forces.
``(c) Authority to Allow Retention of Devices, etc.--Upon the
separation from active service of a member who has been provided
assistance as specified in subsection (a), the Secretary may allow the
member to retain any assistive technology, device, or service provided
to the member before the member's separation.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1150 the following new item:

``1151. Severely wounded members: assistive technology and services.''.

SEC. 563. TRANSPORTATION OF REMAINS OF CASUALTIES DYING IN A THEATER OF
COMBAT OPERATIONS.

(a) In General.--The Secretary concerned shall provide
transportation of the remains of a member of the Armed Forces who dies
in a combat theater of operations and whose remains are returned to the
United States through the mortuary facility at Dover Air Force Base,
Delaware, in accordance with section 1482(a)(8) of title 10, United
States Code, and this section.
(b) Escort.--The Secretary concerned shall ensure that such remains
are escorted under that section at all times by at least one person,
who shall be a member of the Armed Forces of appropriate grade.
(c) Air Transportation From Dover AFB.--
(1) Use of military aircraft.--If transportation of remains
described in subsection (a) from Dover Air Force Base to the
escorted remains destination includes transportation by
aircraft, such transportation by aircraft (unless otherwise
directed by the next-of-kin) shall be made by military aircraft
or military-contracted aircraft to the military airfield that
is closest to the escorted remains destination. In the case of
any such flight, the exclusive mission of the flight shall be
the transportation of those remains.
(2) Escorted remains destination.--In this subsection, the
term ``escorted remains destination'' means the place to which
remains are to be transported pursuant to section 1482(a)(8) of
title 10, United States Code.
(d) Honor Guard Escort.--In a case of the transportation of remains
covered by subsection (a), there shall be a military escort (in
addition to the escort under subsection (b)) that either travels with
the remains from Dover Air Force Base or meets the remains at the place
to which transportation by air (or by rail or motor vehicle, if
applicable) is made. Such escort shall be of sufficient number to
transfer the casket containing the remains from the aircraft (or other
means of transportation to that place) to a hearse for local
transportation. Such escort shall remain with the remains until the
remains are delivered to the next-of-kin. Such escort shall consist of
members of the Armed Forces on active duty or in the Ready Reserve.

SEC. 564. ANNUAL BUDGET DISPLAY OF FUNDS FOR POW/MIA ACTIVITIES OF
DEPARTMENT OF DEFENSE.

(a) Consolidated Budget Justification.--Chapter 9 of title 10,
United States Code, is amended by adding at the end the following new
section:
``Sec. 234. POW/MIA activities: display of budget information
``(a) Submission With Annual Budget Justification Documents.--The
Secretary of Defense shall submit to Congress, as a part of the defense
budget materials for a fiscal year, a consolidated budget justification
display, in classified and unclassified form, that covers all programs
and activities of Department of Defense POW/MIA accounting and recovery
organizations.
``(b) Requirements for Budget Display.--The budget display under
subsection (a) for a fiscal year shall include the following for each
such organization:
``(1) The amount, by appropriation and functional area,
originally requested by that organization for that fiscal year,
with the supporting narrative describing the rationale for the
requested funding level.
``(2) A summary of actual or estimated expenditures by that
organization for the fiscal year during which the budget is
submitted and for the fiscal year preceding that year.
``(3) The amount in the budget for that organization.
``(4) A detailed explanation of any inconsistencies between
the amount originally requested by the organization (shown
pursuant to paragraph (1)) and the amount in the budget for
that organization (shown pursuant to paragraph (3)).
``(5) The budget estimate for that organization for the
next five fiscal years after the fiscal year for which the
budget is submitted.
``(c) Department of Defense POW/MIA Accounting and Recovery
Organizations.--In this section, the term `Department of Defense POW/
MIA accounting and recovery organization' means any of the following
(and any successor organization):
``(1) The Defense Prisoner of War/Missing Personnel Office
(DPMO).
``(2) The Joint POW/MIA Accounting Command (JPAC).
``(3) The Armed Forces DNA Identification Laboratory
(AFDIL).
``(4) The Life Sciences Equipment Laboratory (LSEL) of the
Air Force.
``(5) Any other element of the Department of Defense the
mission of which (as designated by the Secretary of Defense)
involves the accounting for and recovery of members of the
armed forces who are missing in action or prisoners of war or
who are unaccounted for.
``(d) Other Definitions.--In this section:
``(1) The term `budget', with respect to a fiscal year,
means the budget for that fiscal year that is submitted to
Congress by the President under section 1105(a) of title 31.
``(2) The term `defense budget materials', with respect to
a fiscal year, means the materials submitted to Congress by the
Secretary of Defense in support of the budget for that fiscal
year.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``234. POW/MIA activities: display of budget information.''.

Subtitle H--Assistance to Local Educational Agencies for Defense
Dependents Education

SEC. 571. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL
AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED
FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

(a) Assistance to Schools With Significant Numbers of Military
Dependent Students.--Of the amount authorized to be appropriated
pursuant to section 301(5) for operation and maintenance for Defense-
wide activities, $50,000,000 shall be available only for the purpose of
providing assistance to local educational agencies under subsection (a)
of section 572 of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 7703b).
(b) Assistance to Schools With Enrollment Changes Due to Base
Closures, Force Structure Changes, or Force Relocations.--Of the amount
authorized to be appropriated pursuant to section 301(5) for operation
and maintenance for Defense-wide activities, $15,000,000 shall be
available only for the purpose of providing assistance to local
educational agencies under subsection (b) of such section 572.
(c) Local Educational Agency Defined.--In this section, the term
``local educational agency'' has the meaning given that term in section
8013(9) of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7713(9)).

SEC. 572. ENROLLMENT IN DEFENSE DEPENDENTS' EDUCATION SYSTEM OF
DEPENDENTS OF FOREIGN MILITARY MEMBERS ASSIGNED TO
SUPREME HEADQUARTERS ALLIED POWERS, EUROPE.

Section 1404A of the Defense Dependents' Education Act of 1978 (20
U.S.C. 923a) is amended--
(1) in subsection (a)--
(A) by striking ``of the children'' and inserting
``of--
``(1) the children'';
(B) by striking the period at the end and inserting
``; and''; and
(C) by adding at the end the following new
paragraph:
``(2) the children of a foreign military member assigned to
the Supreme Headquarters Allied Powers, Europe, but only in a
school of the defense dependents' education system in Mons,
Belgium.''; and
(2) by adding at the end the following new subsection:
``(c) Special Rules Regarding Enrollment of Dependents of Foreign
Military Members Assigned to Supreme Headquarters Allied Powers,
Europe.--(1) In the regulations required by subsection (a), the
Secretary shall prescribe a methodology based on the estimated total
number of dependents of sponsors under section 1414(2) enrolled in
schools of the defense dependents' education system in Mons, Belgium,
to determine the number of children described in paragraph (2) of
subsection (a) who will be authorized to enroll under such subsection.
``(2) If the number of children described in paragraph (2) of
subsection (a) who seek enrollment in schools of the defense
dependents' education system in Mons, Belgium, exceeds the number
authorized by the Secretary under paragraph (1), the Secretary may
enroll the additional children on a space-available, tuition-free basis
notwithstanding section 1404(d)(2).''.

Subtitle I--Postal Benefits

SEC. 575. POSTAL BENEFITS PROGRAM FOR MEMBERS OF THE ARMED FORCES.

(a) In General.--The Secretary of Defense, in consultation with the
United States Postal Service, shall provide for a program under which
postal benefits shall be provided to qualified individuals in
accordance with this subtitle.
(b) Qualified Individual.--For purposes of this subtitle, the term
``qualified individual'' means an individual--
(1) who is a member of the Armed Forces on active duty (as
defined in section 101 of title 10, United States Code); and
(2) who is--
(A) serving in Iraq or Afghanistan; or
(B) hospitalized at a facility under the
jurisdiction of the Armed Forces as a result of a
disease or injury incurred as a result of service in
Iraq or Afghanistan.
(c) Postal Benefits Described.--
(1) In general.--The postal benefits provided under this
subtitle shall consist of such coupons or other similar
evidence of credit (whether in printed, electronic, or other
format, and hereinafter in this subtitle referred to as
``vouchers'') as the Secretary of Defense (in consultation with
the Postal Service) shall determine, entitling the bearer or
user to make qualified mailings free of postage.
(2) Qualified mailing.--For purposes of this subtitle, the
term ``qualified mailing'' means the mailing of any mail matter
which--
(A) is described in subparagraph (A), (B), (C), or
(D) of paragraph (3);
(B) is sent from within an area served by a United
States post office; and
(C) is addressed to a qualified individual.
(3) Mail matter described.--The mail matter described in
this paragraph is--
(A) any letter mail not exceeding 13 ounces in
weight and having the character of personal
correspondence;
(B) any sound- or video-recorded communications not
exceeding 15 pounds in weight and having the character
of personal correspondence;
(C) any ground parcel not exceeding 15 pounds in
weight; and
(D) any bound printed matter not exceeding 15
pounds in weight.
(4) Limitations.--
(A) Number.--An individual shall be eligible for
one voucher for each month in which such individual is
a qualified individual.
(B) Use.--Any such voucher may not be used--
(i) for more than a single qualified
mailing; or
(ii) after the earlier of--
(I) the expiration date of such
voucher, as designated by the Secretary
of Defense; or
(II) the last day of the one-year
period referred to in section 577.
(5) Coordination rule.--Postal benefits under this subtitle
shall be in addition to, and not in lieu of, any reduced rates
of postage or other similar benefits which might otherwise be
available by or under law, including any rates of postage
resulting from the application of section 3401(b) of title 39,
United States Code.
(d) Regulations.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of Defense (in consultation with
the Postal Service) shall prescribe any regulations necessary to carry
out this subtitle, including--
(1) procedures by which vouchers will be provided or made
available (including measures to allow vouchers to reach, in a
timely manner, the persons selected by qualified individuals to
use the vouchers); and
(2) procedures to ensure that the number of vouchers
provided or made available with respect to any qualified
individual complies with subsection (c)(4)(A).

SEC. 576. FUNDING.

(a) In General.--Funding for the expenses incurred by the
Department of Defense for any fiscal year in providing postal benefits
under this subtitle shall be paid out of funds authorized to be
appropriated for that fiscal year for a contingent emergency reserve
fund or as an emergency supplemental appropriations.
(b) Transfers to Postal Service.--
(1) Based on estimates.--The Secretary of Defense shall
transfer to the Postal Service, out of any amount so
appropriated and in advance of each calendar quarter during
which postal benefits under this subtitle may be used, an
amount equal to the amount of postal benefits that the
Secretary of Defense estimates will be used during such
quarter, reduced or increased (as the case may be) by any
amounts by which the Secretary finds that a determination under
this subtitle for a prior quarter was greater than or less than
the amount finally determined for such quarter.
(2) Based on final determination.--A final determination of
the amount necessary to correct any previous determination
under this section, and any transfer of amounts between the
Postal Service and the Department of Defense based on that
final determination, shall be made not later than six months
after the end of the one-year period referred to in section
577.
(c) Consultation Required.--All estimates and determinations under
this section of the amount of postal benefits under this subtitle used
in any period shall be made by the Secretary of Defense in consultation
with the Postal Service.

SEC. 577. DURATION.

The postal benefits under this subtitle shall apply with respect to
mail matter sent during the one-year period beginning on the date on
which the regulations under section 575(d) take effect.

Subtitle J--Other Matters

SEC. 581. REDUCTION IN DEPARTMENT OF DEFENSE ACCRUAL CONTRIBUTIONS TO
DEPARTMENT OF DEFENSE MILITARY RETIREMENT FUND.

(a) Determination of Contributions to the Fund.--
(1) Calculation of annual department of defense
contribution.--Subsection (b)(1) of section 1465 of title 10,
United States Code, is amended--
(A) in subparagraph (A)(ii), by striking ``to
members of '' and all that follows and inserting ``for
active duty (other than the Coast Guard) and for full-
time National Guard duty (other than full-time National
Guard duty for training only), but excluding any duty
that would be excluded for active-duty end strength
purposes by section 115(i) of this title.''; and
(B) in subparagraph (B)(ii)--
(i) by striking ``Ready Reserve'' and
inserting ``Selected Reserve''; and
(ii) by striking ``Coast Guard and other
than members on full-time National Guard duty
other than for training) who are'' and
inserting ``Coast Guard) for service''.
(2) Quadrennial actuarial valuation.--Subsection (c)(1) of
such section is amended --
(A) in subparagraph (A), by striking ``for members
of the armed forces'' and all that follows through
``for training only)'' and inserting ``for active duty
(other than the Coast Guard) and for full-time National
Guard duty (other than full-time National Guard duty
for training only), but excluding any duty that would
be excluded for active-duty end strength purposes by
section 115(i) of this title''; and
(B) in subparagraph (B)--
(i) by striking ``Ready Reserve'' and
inserting ``Selected Reserve''; and
(ii) by striking ``Coast Guard and other
than members on full-time National Guard duty
other than for training) who are'' and
inserting ``Coast Guard) for service''.
(b) Payments Into the Fund.--Section 1466(a) of such title is
amended--
(1) in paragraph (1)(B), by striking ``by members'' and all
that follows and inserting ``for active duty (other than the
Coast Guard) and for full-time National Guard duty (other than
full-time National Guard duty for training only), but excluding
any duty that would be excluded for active-duty end strength
purposes by section 115(i) of this title''; and
(2) in paragraph (2)(B)--
(A) by striking ``Ready'' and inserting
``Selected''; and
(B) by striking ``Coast Guard and other than
members on full-time National Guard duty other than for
training) who are'' and inserting ``Coast Guard) for
service''.

SEC. 582. DENTAL CORPS OF THE BUREAU OF MEDICINE AND SURGERY.

(a) Deletion of References to Dental Division.--Section 5138 of
title 10, United States Code, is amended--
(1) in subsection (a)--
(A) by striking the first sentence; and
(B) by striking ``Dental Division'' and inserting
``Dental Corps'' in the second sentence;
(2) in subsection (b), by striking ``Dental Division'' and
inserting ``Dental Corps'';
(3) in subsection (c)--
(A) by striking ``so'' in the first sentence;
(B) by striking ``, that all such'' in the first
sentence and all that follows through ``Dental
Division''; and
(C) by striking the second sentence.; and
(b) Functions of Chief of Dental Corps.--Subsection (d) of such
section is amended to read as follows:
``(d) The Chief of the Dental Corps shall serve as the advisor to
the Surgeon General on all matters relating directly to dentistry,
including professional standards and policies for dental practice.''.
(c) Clerical Amendments.--
(1) The heading of such section is amended to read as
follows:
``Sec. 5138. Bureau of Medicine and Surgery: Dental Corps; Chief''.
(2) The item relating to section 5138 in the table of
sections at the beginning of chapter 513 of such title is
amended to read as follows:

``5138. Bureau of Medicine and Surgery: Dental Corps; Chief.''.

SEC. 583. PERMANENT AUTHORITY FOR PRESENTATION OF RECOGNITION ITEMS FOR
RECRUITMENT AND RETENTION PURPOSES.

Section 2261 of title 10, United States Code, is amended by
striking subsection (d).

SEC. 584. REPORT ON FEASIBILITY OF ESTABLISHMENT OF MILITARY ENTRANCE
PROCESSING COMMAND STATION ON GUAM.

(a) Review.--The Secretary of Defense shall review the feasibility
and cost effectiveness of establishing on Guam a station of the
Military Entrance Processing Command to process new recruits for the
Armed Forces who are drawn from the western Pacific region. For the
purposes of the review, the cost effectiveness of establishing such a
facility on Guam shall be measured, in part, against the system in
effect in early 2006 of using Hawaii and other locations for the
processing of new recruits from Guam and other locations in the western
Pacific region.
(b) Report.--Not later than June 1, 2007, the Secretary shall
submit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a report
providing the results of the study under subsection (a).

SEC. 585. PERSONS AUTHORIZED TO ADMINISTER ENLISTMENT AND APPOINTMENT
OATHS.

(a) Enlistment Oath.--Section 502 of title 10, United States Code,
is amended--
(1) by inserting ``(a) Enlistment Oath.--'' before ``Each
person enlisting'';
(2) by striking the last sentence; and
(3) by adding at the end the following:
``(b) Who May Administer.--The oath may be taken before the
President, the Vice-President, the Secretary of Defense, any
commissioned officer, or any other person designated under regulations
prescribed by the Secretary of Defense.''.
(b) Oaths Generally.--Section 1031 of such title is amended by
striking ``Any commissioned officer of any component of an armed force,
whether or not on active duty, may administer any oath'' and inserting
``The President, the Vice-President, the Secretary of Defense, any
commissioned officer, and any other person designated under regulations
prescribed by the Secretary of Defense may administer any oath''.

SEC. 586. REPEAL OF REQUIREMENT FOR PERIODIC DEPARTMENT OF DEFENSE
INSPECTOR GENERAL ASSESSMENTS OF VOTING ASSISTANCE
COMPLIANCE AT MILITARY INSTALLATIONS.

(a) Repeal of Duplicative Assessment Requirement.--Section 1566 of
title 10, United States Code, is amended by striking subsection (d).
(b) Repeal of Expired Provision.--Subsection (g)(2) of such section
is amended by striking the last sentence.

SEC. 587. PHYSICAL EVALUATION BOARDS.

(a) In General.--
(1) Procedural requirements.--Chapter 61 of title 10,
United States Code, is amended by adding at the end the
following new section:
``Sec. 1222. Physical evaluation boards
``(a) Response to Applications and Appeals.--The Secretary of each
military department shall ensure, in the case of any member of the
armed forces appearing before a physical evaluation board under that
Secretary's supervision, that documents announcing a decision of the
board in the case convey the findings and conclusions of the board in
an orderly and itemized fashion with specific attention to each issue
presented by the member in regard to that member's case. The
requirement under the preceding sentence applies to a case both during
initial consideration and upon subsequent consideration due to appeal
by the member or other circumstance.
``(b) Liaison Officer (PEBLO) Requirements and Training.--(1) The
Secretary of Defense shall prescribe regulations establishing --
``(A) a requirement for the Secretary of each military
department to make available to members of the armed forces
appearing before physical evaluation boards operated by that
Secretary employees, designated as physical evaluation board
liaison officers, to provide advice, counsel, and general
information to such members on the operation of physical
evaluation boards operated by that Secretary; and
``(B) standards and guidelines concerning the training of
such physical evaluation board liaison officers.
``(2) The Secretary shall assess compliance by the Secretary of
each military department with physical evaluation board liaison officer
requirements and training standards and guidelines at least once every
three years.
``(c) Standardized Staff Training and Operations.--(1) The
Secretary of Defense shall prescribe regulations on standards and
guidelines concerning the physical evaluation board operated by each of
the Secretaries of the military departments with regard to--
``(A) assignment and training of staff;
``(B) operating procedures; and
``(C) consistency and timeliness of board decisions.
``(2) The Secretary shall assess compliance with standards and
guidelines prescribed under paragraph (1) by each physical evaluation
board at least once every three years.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``1222. Physical evaluation boards.''.
(b) Effective Date.--Section 1222 of title 10, United States Code,
as added by subsection (a), shall apply with respect to decisions
rendered on cases commenced more than 120 days after the date of the
enactment of this Act.

SEC. 588. DEPARTMENT OF LABOR TRANSITIONAL ASSISTANCE PROGRAM.

(a) Required Participation for Certain Members.--Subsection (c) of
section 1144 of title 10, United States Code, is amended to read as
follows:
``(c) Participation.--(1) Except as provided in paragraph (2), the
Secretary of Defense shall require participation by members of the
armed forces eligible for assistance under the program carried out
under this section.
``(2) The Secretary of Defense need not require, but shall
encourage and otherwise promote, participation in the program by the
following members described in paragraph (1):
``(A) A member who has previously participated in the
program.
``(B) A member who, upon discharge or release from active
duty, is returning to--
``(i) a position of employment; or
``(ii) pursuit of an academic degree or other
educational or occupational training objective that the
members was pursuing when called or ordered to such
active duty.
``(3) Members of the armed forces eligible for assistance under
this section include--
``(A) members of the reserve components being separated
from service on active duty for a period of more than 30 days;
and
``(B) members of the National Guard being separated from
full-time National Guard duty.
``(4) The Secretary concerned shall ensure that commanders of
members who are required to be provided assistance under this section
authorize the members to be provided such assistance during duty
time.''.
(b) Required Updating of Materials.--Such section is further
amended by adding at the end the following new subsection:
``(e) Updating of Materials.--The Secretary concerned shall, on a
continuing basis, update the content of the materials used by the
National Veterans Training Institute of the Department of Labor and the
Secretary's other materials that provide direct training support to
personnel who carry out the program established in this section.''.

SEC. 589. REVISION IN GOVERNMENT CONTRIBUTIONS TO MEDICARE-ELIGIBLE
RETIREE HEALTH CARE FUND.

(a) Medicare Eligible Retiree Health Care Fund.--Section 1111 of
title 10, United States Code, is amended--
(1) in subsection (a), by striking ``of the Department of
Defense'';
(2) in subsection (b), by adding at the end of the
following new paragraph:
``(5) The term `members of the uniformed services on active
duty' does not include a cadet at the United States Military
Academy, the United States Air Force Academy, or the Coast
Guard Academy or a midshipman at the United States Naval
Academy.''; and
(3) in the last sentence of subsection (c)--
(A) by striking ``Secretary of Defense'' and
inserting ``Secretary of the Treasury''; and
(B) by striking ``section 1116(a)'' and inserting
``section 1116 of this title''.
(b) Determination of Contributions to the Fund.--Section 1115 of
such title is amended--
(1) in the last sentence of subsection (a)--
(A) by inserting ``by the Secretary of the
Treasury'' after ``Contributions to the Fund''; and
(B) by striking ``section 1116(c)'' and inserting
``section 1116(a)(1)''.
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by
striking the first sentence and inserting the
following: ``The Secretary of the Treasury, based on
data provided by the Secretary of Defense, shall
determine, before the beginning of each fiscal year,
the amount that the Secretary of the Treasury shall
contribute to the Fund during that fiscal year under
section 1116(a)(2) of this title.'';
(B) in paragraph (1)(B), by inserting before the
period at the end the following: ``, but excluding any
member who would be excluded for active-duty end
strength purposes by section 115(I) of this title'';
and
(C) in paragraph (2)(B)--
(I) by striking ``Ready Reserve'' and
inserting ``Selected Reserve''; and
(ii) by striking ``(other than members on
full-time National Guard duty other than for
training)''; and
(3) in subsection (c)--
(A) in paragraph (1)(A), by inserting before the
semicolon the following: ``, but excluding any member
who would be excluded for active-duty end strength
purposes by section 115(I) of this title'';
(B) in paragraph (1)(B)--
(I) by striking ``Ready Reserve'' and
inserting ``Selected Reserve''; and
(ii) by striking ``(other than members on
full-time National Guard duty other than for
training)''; and
(C) in paragraph (5), by inserting after ``(5)''
the following new sentence: ``The Secretary of Defense,
before the beginning of each fiscal year, shall
promptly provide data to the Secretary of the Treasury
regarding the actuarial valuations conducted under this
subsection that would affect the contributions of the
Secretary of the Treasury to the Fund for that fiscal
year.''.
(c) Payments Into the Fund.--Section 1116 of such title is
amended--
(1) in the matter in subsection (a) preceding paragraph
(1)--
(A) by striking ``after September 30, 2005''; and
(B) by striking ``Treasury--'' and inserting
``Treasury the following:'';
(2) by redesignating paragraph (2) of subsection (a) as
paragraph (3);
(3) by striking paragraph (1) of subsection (a) and
inserting the following:
``(1) The amount determined to be required as the
contribution to the Fund under subsection (a) of section 1115
of this title.
``(2) The amount determined to be required as the
contribution to the Fund under subsection (b) of section 1115
of this title.'';
(4) in paragraph (3) of subsection (a) (as redesignated by
paragraph (2)), by capitalizing the first letter of the first
word;
(5) by transferring paragraphs (3), (4), and (5) of
subsection (b) to the end of subsection (a) and redesignating
those paragraphs as paragraphs (4), (5), and (6), respectively;
and
(6) by striking subsection (b) (as amended by paragraph
(5)) and subsections (c) and (d) and inserting the following
new subsection (b):
``(b) No funds authorized or appropriated to the Department of
Defense may be used to fund, or otherwise provide for, the payments
required by this section.''.
(d) Effective Date.--The amendments made by this section shall take
effect with respect to payments under chapter 56 of title 10, United
States Code, beginning with fiscal year 2008.

SEC. 590. MILITARY CHAPLAINS.

(a) United States Army.--Section 3547 of title 10, United States
Code, is amended by adding at the end the following new subsection:
``(c) Each chaplain shall have the prerogative to pray according to
the dictates of the chaplain's own conscience, except as must be
limited by military necessity, with any such limitation being imposed
in the least restrictive manner feasible.''.
(b) United States Military Academy.--Section 4337 of such title is
amended--
(1) by inserting ``(a)'' before ``There''; and
(2) by adding at the end the following new subsection:
``(b) The Chaplain shall have the prerogative to pray according to
the dictates of the Chaplain's conscience, except as must be limited by
military necessity, with any such limitation being imposed in the least
restrictive manner feasible.''.
(c) United States Navy and Marine Corps.--Section 6031 of such
title is amended by adding at the end the following new subsection:
``(d) Each chaplain shall have the prerogative to pray according to
the dictates of the chaplain's own conscience, except as must be
limited by military necessity, with any such limitation being imposed
in the least restrictive manner feasible.''.
(d) United States Air Force.--Section 8547 of such title is amended
by adding at the end the following new subsection:
``(c) Each chaplain shall have the prerogative to pray according to
the dictates of the chaplain's own conscience, except as must be
limited by military necessity, with any such limitation being imposed
in the least restrictive manner feasible.''.
(e) United States Air Force Academy.--Section 9337 of such title is
amended--
(1) by inserting ``(a)'' before ``There''; and
(2) by adding at the end the following new subsection:
``(b) The Chaplain shall have the prerogative to pray according to
the dictates of the Chaplain's conscience, except as must be limited by
military necessity, with any such limitation being imposed in the least
restrictive manner feasible.''.

SEC. 591. REPORT ON PERSONNEL REQUIREMENTS FOR AIRBORNE ASSETS
IDENTIFIED AS LOW-DENSITY, HIGH-DEMAND AIRBORNE ASSETS.

(a) Report Required.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on personnel
requirements for airborne assets identified as Low-Density, High-Demand
Airborne Assets based on combatant commander requirements to conduct
and sustain operations for the global war on terrorism.
(b) Matter to Be Included.--The report shall include the following
for each airborne asset identified as a Low-Density, High-Demand
Airborne Asset:
(1) The numbers of operations and maintenance crews to meet
tasking contemplated to conduct operations for the global war
on terrorism.
(2) The current numbers of operations and maintenance
crews.
(3) If applicable, shortages of operations and maintenance
crews.
(4) Whether such shortages are addressed in the future-
years defense program.
(5) Whether end-strength increases are required to meet any
such shortages.
(6) Costs of personnel needed to address shortfalls.
(7) If applicable, the number and types of equipment needed
to address training shortfalls.

SEC. 592. ENTREPRENEURIAL SERVICE MEMBERS EMPOWERMENT TASK FORCE.

(a) Establishment.--The Secretary of Defense, in coordination with
the Administrator of the Small Business Administration, shall establish
a task force to provide timely input to the Secretary and the
Administrator with respect to--
(1) measures that would improve the programs and activities
of the Department and the Administration that are designed to
address the economic concerns, as well as the business
challenges and opportunities, of entrepreneurial service
members; and
(2) measures that would improve the coordination of the
programs and activities relating to entrepreneurial service
members conducted by--
(A) the National Committee for Employer Support of
the National Guard and Reserve;
(B) Veterans Business Outreach Centers;
(C) Federal procurement entities; and
(D) any other elements within, or affiliates of,
the Department of Defense or the Small Business
Administration.
(b) Plan.--The task force shall develop within 90 days after its
first meeting, and revise as appropriate thereafter, a plan for
carrying out the duty under subsection (a).
(c) Consultation.--In carrying out the duty under subsection (a),
the task force shall consult with appropriate Federal, State, and local
agencies and appropriate elements of the private sector, including
academic institutions and industry representatives.
(d) Composition.--
(1) Co-chairs.--The task force shall have two co-chairs,
one an officer or employee of the Department of Defense
assigned by the Secretary, and one an officer or employee of
the Small Business Administration assigned by the
Administrator. The initial assignments shall be made within 60
days after the date of the enactment of this Act.
(2) Other members.--The Secretary, in coordination with the
Administrator, shall appoint the remaining task force members,
numbering not less than 8 and not more than 15. The selections
shall be made within 120 days after the date of the enactment
of this Act. The Secretary, in coordination with the
Administrator, shall ensure that the task force includes
individuals from both public service and the private sector,
and that each of the following groups is represented on the
task force:
(A) Entrepreneurial service members who are owners
of small businesses.
(B) Small businesses that employ entrepreneurial
service members as essential employees.
(C) Associations that further the interests of
small businesses, members of the reserve components of
the Armed Forces, or both.
(D) Any other entities that the Secretary, in
coordination with the Administrator, considers
appropriate.
(3) Compensation.--An individual serving as a member of the
task force shall not receive compensation by reason of that
service.
(e) Meetings.--
(1) Frequency.--The task force shall meet not less
frequently than twice per year. The initial meeting shall be
held within 150 days after the date of the enactment of this
Act.
(2) Quorum.--A majority of the members of the task force
shall constitute a quorum.
(f) Reports.--The task force shall provide to the Secretary and the
Administrator not only the minutes of each meeting, but also a report
of its findings and recommendations, should there be any, within 90
days of each meeting. Not later than 60 days after the receipt of such
a report--
(1) the Secretary shall submit a copy of the report to the
Committee on Armed Services of the House of Representatives and
the Committee on Armed Services of the Senate; and
(2) the Administrator shall submit a copy of the report to
the Committee on Small Business of the House of Representatives
and the Committee on Small Business and Entrepreneurship of the
Senate.
(g) Detail of Certain Federal Employees.--The Secretary may detail
an officer or employee of the Department of Defense, and the
Administrator may detail an officer or employee of the Small Business
Administration, to the task force without additional reimbursement and
without interruption or loss of civil status or privilege.
(h) Expenses.--The Department of Defense and the Small Business
Administration shall share equally in the cost of supporting the task
force.
(i) Definition.--In this section, the term ``entrepreneurial
service member'' means an individual who is both--
(1) an actual or prospective owner of, or an essential
employee of, a small business; and
(2) a member of a reserve component of the Armed Forces.
(j) Termination.--The task force shall terminate September 30,
2009.

SEC. 593. COMPTROLLER GENERAL REPORT ON MILITARY CONSCIENTIOUS
OBJECTORS.

(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Comptroller General shall submit to Congress
a report concerning the frequency and consequences of members of the
Armed Forces claiming status as a military conscientious objector
between January 1, 1989, and December 31, 2006.
(b) Content of Report.--The report shall specifically address the
following:
(1) The number of all applications for status as a military
conscientious objector, even if the application was not acted
on or other discharge given, broken down by military branch,
including the Coast Guard, and regular and reserve components.
(2) Number of discharges or reassignments given.
(3) The process used to consider applications, including
average time frame and any reassignment to non-combatant duties
while claim pending.
(4) Reasons for approval or disapproval of applications.
(5) Any difference in benefits upon discharge as a military
conscientious objector compared to other discharges.
(6) The effect of stop loss provisions in First Gulf War
and currently, cancellation of orders to combat or rear
attachment duty while claim pending.
(7) Pre-war statistical comparisons.

SEC. 594. COMMISSION ON THE NATIONAL GUARD AND RESERVES.

(a) Six-Month Extension of Commission.--Subsection (f)(2) of
section 513 of the Ronald W. Reagan National Defense Authorization Act
for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1882) is amended by
striking ``one year'' and inserting ``18 months''.
(b) Additional Matters to Be Reviewed by Commission.--The
Commission on the National Guard and Reserves shall include among the
matters it studies (in addition to the matters specified in subsection
(c) of such section 513) the following:
(1) Provisions of h.r. 5200, 109th congress.--The
advisability and feasibility of implementing the provisions of
H.R. 5200 of the 109th Congress, as introduced in the House of
Representatives on April 26, 2006.
(2) Chief of national guard bureau.--As an alternative to
implementation of the provisions of the bill specified in
paragraph (1) that provide for the Chief of the National Guard
Bureau to be a member of the Joint Chiefs of Staff and to hold
the grade of general, the advisability and feasibility of
providing for the Chief of the National Guard Bureau to hold
the grade of general in the performance of the current duties
of that office.
(3) National guard equipment and funding requirements.--The
adequacy of the Department of Defense processes for defining
the equipment and funding necessary for the National Guard to
conduct both its responsibilities under title 10, United States
Code, and its responsibilities under title 32, United States
Code, including homeland defense and related homeland missions,
including as part of such study--
(A) consideration of the extent to which those
processes should be developed taking into consideration
the views of the Chief of the National Guard Bureau, as
well as the views of the 54 Adjutant Generals and the
views of the Chiefs of the Army National Guard and the
Air Guard; and
(B) whether there should be an improved means by
which National Guard equipment requirements are
validated by the Joint Chiefs of Staff and are
considered for funding by the Secretaries of the Army
and Air Force.
(c) Priority Review and Report.--
(1) Priority review.--The Commission on the National Guard
and Reserves shall carry out its study of the matters specified
in paragraphs (1) and (2) of subsection (b) on a priority
basis, with a higher priority for matters under those
paragraphs relating to the grade and functions of the Chief of
the National Guard Bureau.
(2) Report.--In addition to the reports required under
subsection (f) of section 513 of the Ronald W. Reagan National
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375; 118 Stat. 1882), the Commission shall submit to the
Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives an interim
report, not later than March 1, 2007, specifically on the
matters covered by paragraph (1). In such report, the
Commission shall set forth its findings and any recommendations
it considers appropriate with respect to those matters.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Subtitle B--Bonuses and Special and Incentive Pays

Subtitle C--Travel and Transportation Allowances

Subtitle D--Retired Pay and Survivor Benefits

Subtitle E--Commissary and Nonappropriated Fund Instrumentality
Benefits

Subtitle F--Other Matters

Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2007.

(a) Waiver of Section 1009 Adjustment.--The adjustment to become
effective during fiscal year 2007 required by section 1009 of title 37,
United States Code, in the rates of monthly basic pay authorized
members of the uniformed services shall not be made.
(b) Increase in Basic Pay.--Effective on January 1, 2007, the rates
of monthly basic pay for members of the uniformed services are
increased by 2.7 percent.

SEC. 602. TARGETED INCREASE IN BASIC PAY RATES.

Effective on April 1, 2007, the rates of monthly basic pay for
members of the uniformed services within each pay grade are as follows:

COMMISSIONED OFFICERS1
Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6
----------------------------------------------------------------------------------------------------------------
O-102 $0.00 $0.00 $0.00 $0.00 $0.00
O-9 0.00 0.00 0.00 0.00 0.00
O-8 8,494.20 8,772.60 8,957.10 9,008.70 9,239.10
O-7 7,058.40 7,386.00 7,538.10 7,658.40 7,876.80
O-6 5,231.40 5,747.40 6,124.50 6,124.50 6,147.60
O-5 4,361.10 4,912.80 5,253.00 5,316.90 5,529.00
O-4 3,762.90 4,356.00 4,646.40 4,711.50 4,981.20
O-33 3,308.40 3,750.60 4,048.20 4,413.60 4,624.50
O-23 2,858.10 3,255.60 3,749.70 3,876.30 3,956.10
O-13 2,481.30 2,582.40 3,121.80 3,121.80 3,121.80
---------------------------------------------------------------------
Over 8 Over 10 Over 12 Over 14 Over 16
---------------------------------------------------------------------
O-102 $0.00 $0.00 $0.00 $0.00 $0.00
O-9 0.00 0.00 0.00 0.00 0.00
O-8 9,624.00 9,713.40 10,079.10 10,183.80 10,498.80
O-7 8,092.20 8,341.80 8,590.80 8,840.40 9,624.00
O-6 6,411.30 6,446.10 6,446.10 6,812.40 7,460.10
O-5 5,656.20 5,935.20 6,140.10 6,404.40 6,809.70
O-4 5,270.40 5,630.10 5,911.20 6,105.90 6,217.80
O-33 4,856.70 5,007.00 5,253.90 5,382.30 5,382.30
O-23 3,956.10 3,956.10 3,956.10 3,956.10 3,956.10
O-13 3,121.80 3,121.80 3,121.80 3,121.80 3,121.80
---------------------------------------------------------------------
Over 18 Over 20 Over 22 Over 24 Over 26
---------------------------------------------------------------------
O-102 $0.00 $13,725.90 $13,793.10 $14,079.90 $14,579.70
O-9 0.00 12,005.10 12,177.60 12,427.80 12,863.70
O-8 10,954.20 11,374.50 11,655.00 11,655.00 11,655.00
O-7 10,286.10 10,286.10 10,286.10 10,286.10 10,338.30
O-6 7,840.20 8,220.00 8,436.30 8,655.00 9,080.10
O-5 7,002.30 7,192.80 7,409.10 7,409.10 7,409.10
O-4 6,282.90 6,282.90 6,282.90 6,282.90 6,282.90
O-33 5,382.30 5,382.30 5,382.30 5,382.30 5,382.30
O-23 3,956.10 3,956.10 3,956.10 3,956.10 3,956.10
O-13 3,121.80 3,121.80 3,121.80 3,121.80 3,121.80
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
oficers in pay grades 0-7 through 0-10 may not exceed the rate of pay for level II of the Executive Schedule
and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the
Executive Schedule.
2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff,
Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the
Marine Corps, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as
defined in section 161(c) of title 10, United States Code, basic pay for this grade is $16,037.40, regardless
of cumulative years of service computed under section 205 of title 37, United States Code.
3 This table does not apply to commissioned officers in pay grade O-1, O-2, or O-3 who have been credited with
over 4 years of active duty service as an enlisted member or warrant officer.

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6
----------------------------------------------------------------------------------------------------------------
O-3E $0.00 $0.00 $0.00 $4,413.60 $4,624.50
O-2E 0.00 0.00 0.00 3,876.30 3,956.10
O-1E 0.00 0.00 0.00 3,121.80 3,333.90
---------------------------------------------------------------------
Over 8 Over 10 Over 12 Over 14 Over 16
---------------------------------------------------------------------
0-3E $4,856.70 $5,007.00 $5,253.90 $5,462.10 $5,581.20
0-2E 4,082.10 4,294.20 4,458.90. 4,581.00 4,581.00
0-1E 3,456.90 3,582.90 3,706.80 3,876.30 3,876.30
---------------------------------------------------------------------
Over 18 Over 20 Over 22 Over 24 Over 26
---------------------------------------------------------------------
0-3E $5,743.80 $5,743.80 $5,743.80 $5,743.80 $5,743.80
0-2E 4,581.00 4,581.00 4,581.00 4,581.00 4,581.00
0-1E 3,876.30 3,876.30 3,876.30 3,876.30 3,876.30
----------------------------------------------------------------------------------------------------------------

WARRANT OFFICERS1
Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6
----------------------------------------------------------------------------------------------------------------
W-5 $0.00 $0.00 $0.00 $0.00 $0.00
W-4 3,418.80 3,677.70 3,783.60 3,887.40 4,066.20
W-3 3,122.10 3,252.30 3,385.50 3,429.60 3,569.40
W-2 2,762.70 3023.40 3,104.40 3,159.90 3,338.70
W-1 2,425.20 2,685.00 2,756.40 2,904.30 3,080.10
---------------------------------------------------------------------
Over 8 Over 10 Over 12 Over 14 Over 16
---------------------------------------------------------------------
W-5 $0.00 $0.00 $0.00 $0.00 $0.00
W-4 4,242.90 4,422.30 4,691.40 4,927.80 5152.80
W-3 3,843.90 4,130.10 4,265.40 4,421.40 4,582.20
W-2 3,616.80 3,754.80 3,890.70 4,056.60 4,186.20
W-1 3,337.80 3,458.40 3,627.00 3,792.90 3,922.80
---------------------------------------------------------------------
Over 18 Over 20 Over 22 Over 24 Over 26
---------------------------------------------------------------------
W-5 $0.00 $6,078.30 $6,386.10 $6,615.60 $6,869.70
W-4 5,336.40 5,516.10 5,779.50 5,995.80 6,242.70
W-3 4,870.50 5,065.80 5,181.90 5,306.40 5,475.30
W-2 4,303.80 4,444.20 4,536.90 4,611.30 4,611.30
W-1 4,042.80 4,188.90 4,188.90 4,188.90 4,188.90
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers
may not exceed the rate of pay for level V of the Executive Schedule.

ENLISTED MEMBERS1
Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6
----------------------------------------------------------------------------------------------------------------
E-92 $0.00 $0.00 $0.00 $0.00 $0.00
E-8 0.00 0.00 0.00 0.00 0.00
E-7 2,350.50 2,565.60 2,663.70 2,794.20 2,895.60
E-6 2,033.10 2,236.80 2,335.80 2,431.50 2,531.70
E-5 1,863.00 1,987.50 2,083.50 2,181.90 2,335.20
E-4 1,707.90 1,795.20 1,892.40 1,988.10 2,073.00
E-3 1,541.70 1,638.90 1,737.60 1,737.60 1,737.60
E-2 1,465.80 1,465.80 1,465.80 1,465.80 1,465.80
E-13 1,308.00 1,308.00 1,308.00 1,308.00 1,308.00
---------------------------------------------------------------------
Over 8 Over 10 Over 12 Over 14 Over 16
---------------------------------------------------------------------
E-92 $0.00 $4,130.70 $4,224.30 $4,342.50 $4,481.40
E-8 3,381.30 3,531.00 3,623.70 3,734.40 3,854.70
E-7 3,070.20 3,168.30 3,326.70 3,471.00 3,569.70
E-6 2,757.60 2,845.20 3,000.00 3,051.90 3,089.70
E-5 2,483.70 2,613.90 2,630.10 2,630.10 2,630.10
E-4 2,073.00 2,073.00 2,073.00 2,073.00 2,073.00
E-3 1,737.60 1,737.60 1,737.60 1,737.60 1,737.60
E-2 1,465.80 1,465.80 1,465.80 1,465.80 1,465.80
E-13 1,308.00 1,308.00 1,308.00 1,308.00 1,308.00
---------------------------------------------------------------------
Over 18 Over 20 Over 22 Over 24 Over 26
---------------------------------------------------------------------
E-92 $4,620.90 $4,845.30 $5,034.60 $5,234.70 $5,539.50
E-8 4,071.60 4,181.40 4,368.60 4,472.40 4,727.70
E-7 3,674.40 3,715.50 3,852.00 3,944.40 4,224.60
E-6 3,133.50 3,133.50 3,133.50 3,133.50 3,133.50
E-5 2,630.10 2,630.10 2,630.10 2,630.10 2,630.10
E-4 2,073.00 2,073.00 2,073.00 2,073.00 2,073.00
E-3 1,737.60 1,737.60 1,737.60 1,737.60 1,737.60
E-2 1,465.80 1,465.80 1,465.80 1,465.80 1,465.80
E-13 1,308.00 1,308.00 1,308.00 1,308.00 1,308.00
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the pay rates specified in this table, the actual basic pay for enlisted members may not
exceed the rate of pay for level V of the Executive Schedule.
2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while serving as
Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force,
Sergeant Major of the Marine Corps, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor
to the Chairman of the Joint Chiefs of Statff is $6,675.00, regardless of cumulative years of service computed
under section 205 of title 37, United States Code.
3 In the case of members in pay grade E-1 who have served less than 4 months on active duty, the rate of basic
pay is $1,209.90.

SEC. 603. CONFORMING CHANGE IN GENERAL AND FLAG OFFICER PAY CAP TO
REFLECT INCREASE IN PAY CAP FOR SENIOR EXECUTIVE SERVICE
PERSONNEL.

(a) Increase.--Section 203(a)(2) of title 37, United States Code,
is amended by striking ``level III of the Executive Schedule'' and
inserting ``level II of the Executive Schedule''.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2006.

SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE FOR HOUSING FOR
CERTAIN RESERVE COMPONENT OR RETIRED MEMBERS SERVING IN
SUPPORT OF CONTINGENCY OPERATIONS.

Section 403(g) of title 37, United States Code, is amended--
(1) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively;
(2) by inserting after paragraph (1) the following new
paragraph (2):
``(2) The Secretary concerned may provide a basic allowance for
housing to a member described in paragraph (1) at a monthly rate equal
to the rate of the basic allowance for housing established under
subsection (b) or the overseas basic allowance for housing established
under subsection (c), whichever applies to the location at which the
member is serving, for members in the same grade at that location
without dependents. The member may receive both a basic allowance for
housing under paragraph (1) and under this paragraph for the same
month, but may not receive the portion of the allowance authorized
under section 404 of this title, if any, for lodging expenses if a
basic allowance for housing is provided under this paragraph.''; and
(3) in paragraph (3), as so redesignated, by striking
``Paragraph (1)'' and inserting ``Paragraphs (1) and (2)''.

SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING ALLOWANCE FOR
DEPENDENTS OF MEMBERS DYING ON ACTIVE DUTY TO SPOUSES WHO
ARE ALSO MEMBERS.

(a) Extension.--Section 403(l) of title 37, United States Code, is
amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) An allowance may be paid under paragraph (2) to the spouse of
the deceased member even though the spouse is also a member of the
uniformed services. The allowance paid under such paragraph is in
addition to any other pay and allowances to which the spouse is
entitled as a member.''.
(b) Effective Date.--
(1) General rule.--The amendments made by subsection (a)
shall take effect on October 1, 2006.
(2) Transitional rule.--After October 1, 2006, the
Secretary of Defense, and the Secretary of Homeland Security in
the case of the Coast Guard, may pay the allowance authorized
by section 403(l)(2) of title 37, United States Code, to a
member of the uniformed services who is the spouse of a member
who died on active duty during the one-year period ending on
that date, except that the payment of the allowance must
terminate within 365 days after the date of the member's death.

SEC. 606. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON
COMPENSATION FOR CORRESPONDENCE COURSES.

Section 206(d) of title 37, United States Code, is amended by
adding at the end the following new paragraph:
``(3) The prohibition in paragraph (1), including the prohibition
as it relates to a member of the National Guard while not in Federal
service, applies to--
``(A) any work or study performed on or after September 7,
1962, unless that work or study is specifically covered by the
exception in paragraph (2); and
``(B) any claim based on that work or study arising after
that date.''.

SEC. 607. PAYMENT OF FULL PREMIUM FOR COVERAGE UNDER SERVICEMEMBERS'
GROUP LIFE INSURANCE PROGRAM DURING SERVICE IN OPERATION
ENDURING FREEDOM OR OPERATION IRAQI FREEDOM.

(a) Enhanced Allowance to Cover SGLI Deductions.--Subsection (a)(1)
of section 437 of title 37, United States Code, is amended by striking
``for the first $150,000'' and all that follows through ``of such
title'' and inserting ``for the amount of Servicemembers' Group Life
Insurance coverage held by the member under section 1967 of such
title''.
(b) Conforming Amendments.--Such section is further amended--
(1) in subsection (a)--
(A) by striking ``(1)'' before ``in the case of'';
and
(B) by striking paragraph (2);
(2) by striking subsection (b); and
(3) by redesignating subsection (c) as subsection (b) and
in paragraph (2) of that subsection by striking ``coverage
amount specified in subsection (a)(1) or in effect pursuant to
subsection (b),'' and inserting ``maximum coverage amount
available for such insurance,''.
(c) Clerical Amendments.--The heading for such section, and the
item relating to such section in the table of sections at the beginning
of chapter 7 of such title, are each amended by striking the fourth and
fifth words.
(d) Effective Date.--The amendments made by this section shall take
effect on the first day of the first month beginning on or after the
date of the enactment of this Act and shall apply with respect to
service by members of the Armed Forces in the theater of operations for
Operation Enduring Freedom or Operation Iraqi Freedom for months
beginning on or after that date.
(e) Funding Source.--Of the amounts authorized to be appropriated
to the Department of Defense for military personnel accounts as
emergency supplemental appropriations for fiscal years 2006 and 2007 to
provide funds for additional costs due to Operation Iraqi Freedom and
Operation Enduring Freedom, $31,000,000 shall be available to cover the
additional costs incurred to implement the amendments made by this
section.

Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR
RESERVE FORCES.

(a) Selected Reserve Reenlistment Bonus.--Section 308b(g) of title
37, United States Code, is amended by striking ``December 31, 2006''
and inserting ``December 31, 2007''.
(b) Selected Reserve Affiliation or Enlistment Bonus.--Section
308c(i) of such title is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2007''.
(c) Special Pay for Enlisted Members Assigned to Certain High
Priority Units.--Section 308d(c) of such title is amended by striking
``December 31, 2006'' and inserting ``December 31, 2007''.
(d) Ready Reserve Enlistment Bonus for Persons Without Prior
Service.--Section 308g(h)(2) of such title is amended by striking
``December 31, 2006'' and inserting ``December 31, 2007''.
(e) Ready Reserve Enlistment and Reenlistment Bonus for Persons
With Prior Service.--Section 308h(e) of such title is amended by
striking ``December 31, 2006'' and inserting ``December 31, 2007''.
(f) Selected Reserve Enlistment Bonus for Persons With Prior
Service.--Section 308i(f) of such title is amended by striking
``December 31, 2006'' and inserting ``December 31, 2007''.

SEC. 612. EXTENSION OF BONUS AND SPECIAL PAY AUTHORITIES FOR HEALTH
CARE PROFESSIONALS.

(a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)
of title 10, United States Code, is amended by striking ``December 31,
2006'' and inserting ``December 31, 2007''.
(b) Repayment of Education Loans for Certain Health Professionals
Who Serve in the Selected Reserve.--Section 16302(d) of such title is
amended by striking ``January 1, 2007'' and inserting ``January 1,
2008''.
(c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of
title 37, United States Code, is amended by striking ``December 31,
2006'' and inserting ``December 31, 2007''.
(d) Incentive Special Pay for Nurse Anesthetists.--Section
302e(a)(1) of such title is amended by striking ``December 31, 2006''
and inserting ``December 31, 2007''.
(e) Special Pay for Selected Reserve Health Professionals in
Critically Short Wartime Specialties.--Section 302g(e) of such title is
amended by striking ``December 31, 2006'' and inserting ``December 31,
2007''.
(f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of
such title is amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.
(g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such
title is amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.

SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR NUCLEAR
OFFICERS.

(a) Special Pay for Nuclear-Qualified Officers Extending Period of
Active Service.--Section 312(e) of title 37, United States Code, is
amended by striking ``December 31, 2006'' and inserting ``December 31,
2007''.
(b) Nuclear Career Accession Bonus.--Section 312b(c) of such title
is amended by striking ``December 31, 2006'' and inserting ``December
31, 2007''.
(c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such
title is amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.

SEC. 614. EXTENSION OF OTHER BONUS, SPECIAL PAY, AND SEPARATION PAY
AUTHORITIES.

(a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,
United States Code, is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2007''.
(b) Assignment Incentive Pay.--Section 307a(g) of such title is
amended by striking ``December 31, 2007'' and inserting ``December 31,
2008''.
(c) Reenlistment Bonus for Active Members.--Section 308(g) of such
title is amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.
(d) Enlistment Bonus for Active Members.--Section 309(e) of such
title is amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.
(e) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31,
2006'' and inserting ``December 31, 2007''.
(f) Accession Bonus for New Officers in Critical Skills.--Section
324(g) of such title is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2007''.
(g) Military Occupational Specialty Conversion Incentive Bonus.--
Section 326(g) of such title is amended by striking ``December 31,
2006'' and inserting ``December 31, 2007''.
(h) Transfer Between Armed Forces Incentive Bonus.--Section 327(h)
of such title is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2007''.

SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFICERS FOR ADDITIONAL
SPECIAL PAY.

(a) Repeal of Internship and Residency Exception.--Section
302b(a)(4) of title 37, United States Code, is amended by striking the
first sentence and inserting the following new sentence: ``An officer
who is entitled to variable special pay under paragraph (2) or (3) is
also entitled to additional special pay for any 12-month period during
which an agreement executed under subsection (b) is in effect with
respect to the officer.''.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2006.

SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPECIAL PAY FOR SELECTED
RESERVE HEALTH CARE PROFESSIONALS IN CRITICALLY SHORT
WARTIME SPECIALTIES.

(a) Increase.--Section 302g(a) of title 37, United States Code, is
amended by striking ``$10,000'' and inserting ``$25,000''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2006.

SEC. 617. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF NUCLEAR OFFICER
INCENTIVE PAY.

(a) Lump Sum Payment Option.--Subsection (a) of section 312 of
title 37, United States Code, is amended in the matter after paragraph
(3)--
(1) by striking ``in equal annual installments'' and
inserting ``in a single lump-sum or in annual installments of
equal or different amounts''; and
(2) by striking ``with the number of installments being
equal to the number of years covered by the contract plus one''
and inserting ``and, if the special pay will be paid in annual
installments, the number of installments may not exceed the
number of years covered by the agreement plus one''.
(b) Clerical and Conforming Amendments.--Such section is further
amended--
(1) by redesignating subsections (b) through (e) as
subsections (c) through (f), respectively;
(2) in subsection (a)--
(A) by striking ``an officer'' in the matter before
paragraph (1) and inserting ``the Secretary may pay
special pay under subsection (b) to an officer'';
(B) by striking the semicolon at the end of
paragraph (3) and inserting a period;
(C) by striking ``may, upon'' and all that follows
through ``The Secretary of the Navy shall'' and
inserting the following:
``(b) Payment Amount; Payment Options.--(1) The total amount paid
to an officer under an agreement under subsection (a) or (e)(1) may not
exceed $30,000 for each year of the active-service agreement. Amounts
paid under the agreement are in addition to all other compensation to
which the officer is entitled.
``(2) The Secretary shall'';
(D) by striking ``Upon acceptance of the agreement
by the Secretary or his designee'' and inserting the
following:
``(3) Upon acceptance of an agreement under subsection (a) or
(e)(1) by the Secretary '';
(E) by striking ``The Secretary (or his designee)''
and inserting the following:
``(4) The Secretary'';
(3) in subsection (c), as redesignated by paragraph (1), by
striking ``subsection (a) or subsection (d)(1)'' and inserting
``subsection (b) or (e)(1)''; and
(4) in the first sentence of subsection (e)(1), as
redesignated by paragraph (1)--
(A) by striking ``such subsection'' and inserting
``subsection (b)''; and
(B) by striking ``that subsection'' and inserting
``this subsection''.
(c) Stylistic Amendments.--Such section is further amended--
(1) in subsection (a), by inserting ``Special Pay
Authorized; Eligibility.--'' after ``(a)'';
(2) in subsection (c), as redesignated by subsection
(b)(1), by inserting ``Repayment.--'' after ``(c)'';
(3) in subsection (d), as redesignated by subsection
(b)(1), by inserting ``Relation to Service Obligation.--''
after ``(d)'';
(4) in subsection (e), as redesignated by subsection
(b)(1), by inserting ``New Agreement.--'' after ``(e)''; and
(5) in subsection (f), as redesignated by subsection
(b)(1), by inserting ``Duration of Authority.--'' after
``(f)''.

SEC. 618. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CAREER ACCESSION BONUS.

(a) Increase.--Section 312b(a)(1) of title 37, United States Code,
is amended by striking ``$20,000'' and inserting ``$30,000''.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2006.

SEC. 619. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE BONUS FOR TRANSFER
BETWEEN ARMED FORCES.

(a) Increase.--Section 327(d)(1) of title 37, United States Code,
is amended by striking ``$2,500'' and inserting ``$10,000''.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2006.

SEC. 620. CLARIFICATION REGARDING MEMBERS OF THE ARMY ELIGIBLE FOR
BONUS FOR REFERRING OTHER PERSONS FOR ENLISTMENT IN THE
ARMY.

Section 645(a) of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109-163; 119 Stat. 3310) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'';
(2) by striking ``, whether in the regular component of the
Army or in the Army National Guard or Army Reserve,'' and
inserting ``described in paragraph (2)''; and
(3) by adding at the end the following new paragraph:
``(2) Members eligible for bonus.--Subject to subsection
(c), the following members of the Army are eligible for a
referral bonus under this section:
``(A) A member in the regular component of the
Army.
``(B) A member of the Army National Guard.
``(C) A member of the Army Reserve.
``(D) A member of the Army in a retired status,
including a member under 60 years of age who, but for
age, would be eligible for retired pay.''.

SEC. 621. PILOT PROGRAM FOR RECRUITMENT BONUS FOR CRITICAL HEALTH CARE
SPECIALTIES.

(a) Pilot Program.--Section 2121 of title 10, United States Code,
is amended by adding at the end the following new subsection:
``(e)(1) The Secretary of Defense may carry out a pilot program for
payment of a recruitment incentive bonus to increase participation in
the program. The Secretary shall prescribe regulations specifying the
amount and terms of the bonus. The bonus shall be used to improve
recruitment for critical health care specialties. A bonus under the
pilot program shall be in addition to the stipend under subsection (d).
``(2) The amount prescribed under paragraph (1) for the bonus under
the pilot program shall be determined by the Secretary.
``(3) The scope of the pilot program shall be limited to no more
than 100 total participants in no more than five critical medical
specialties. The program shall last no more than two years, beginning
on the earlier of the date the first participant is selected or January
1, 2010. ''.
(b) Reports.--The Secretary of Defense shall prepare a mid-term
report and a final report on the findings and recommendations resulting
from the pilot program. The Secretary shall submit those reports to the
Committees on Armed Services of the Senate and the House of
Representatives.

SEC. 622. ENHANCEMENT OF TEMPORARY PROGRAM OF VOLUNTARY SEPARATION PAY
AND BENEFITS.

(a) One-Year Extension of Authority.--Section 1175a(k)(1) of title
10, United States Code, is amended by striking ``December 31, 2008,''
and inserting ``December 31, 2009''.
(b) Expansion of Eligible Members.--Section 643 of the National
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119
Stat. 3306) is amended by striking subsection (b).

SEC. 623. ADDITIONAL AUTHORITIES AND INCENTIVES TO ENCOURAGE RETIRED
MEMBERS AND RESERVE COMPONENT MEMBERS TO VOLUNTEER TO
SERVE ON ACTIVE DUTY IN HIGH-DEMAND, LOW-DENSITY
ASSIGNMENTS.

(a) Authority to Offer Incentive Bonus.--Chapter 5 of title 37,
United States Code, is amended by adding at the end the following new
section:
``Sec. 329. Incentive bonus: retired members and reserve component
members volunteering for high-demand, low-density
assignments
``(a) Incentive Bonus Authorized.--The Secretary of Defense may pay
a bonus under this section to a retired member or former member of the
Army, Navy, Air Force, or Marine Corps or to a member of a reserve
component of the Army, Navy, Air Force, or Marine Corps (who is not
otherwise serving on active duty) who executes a written agreement to
serve on active duty for a period specified in the agreement in an
assignment intended to alleviate a high-demand, low-density military
capability or in any other specialty designated by the Secretary as
critical to meet wartime or peacetime requirements.
``(b) Maximum Amount of Bonus.--A bonus under subsection (a) and
any incentive developed under subsection (d) may not exceed $50,000.
``(c) Methods of Payment.--At the election of the Secretary, a
bonus under subsection (a) and any incentive developed under subsection
(d) shall be paid or provided--
``(1) when the member commences service on active duty; or
``(2) in annual installments in such amounts as may be
determined by the Secretary.
``(d) Development of Additional Incentives.--(1) The Secretary may
develop and provide to members referred to in subsection (a) additional
incentives to encourage such members to return to active duty in
assignments intended to alleviate a high-demand, low-density military
capability or in others specialties designated by the Secretary as
critical to meet wartime or peacetime requirements.
``(2) The provision of any incentive developed under this
subsection shall be subject to an agreement, as required for bonuses
under subsection (a).
``(3) Not later than 30 days before first offering any incentive
developed under this subsection, the Secretary shall submit to the
congressional defense committees a report that contains a description
of that incentive and an explanation why a bonus under subsection (a)
or other pay and allowances are not sufficient to alleviate the high-
demand, low-density military capability or otherwise fill critical
military specialties.
``(e) Relationship to Other Pay and Allowances.--A bonus or other
incentive paid or provided to a member under this section is in
addition to any other pay and allowances to which the member is
entitled.
``(f) Repayment.--A member who does not complete the period of
active duty specified in the agreement executed under subsection (a) or
(d) shall be subject to the repayment provisions of section 303a(e) of
this title.
``(g) High-Demand, Low-Density Assignment Defined.--In this
section, the term `high-demand, low-density military capability' means
a combat, combat support or service support capability, unit, system,
or occupational specialty that the Secretary determines has funding,
equipment, or personnel levels that are substantially below the levels
required to fully meet or sustain actual or expected operational
requirements set by regional commanders.
``(h) Regulations.--The Secretary of Defense may prescribe such
regulations as the Secretary considers necessary to carry out this
section.
``(i) Termination of Authority.--No agreement under subsection (a)
or (d) may be entered into after December 31, 2010.''.
(b) Temporary Authority to Order Retired Members to Active Duty in
High-Demand, Low-Density Assignments.--Section 688a of title 10, United
States Code, is amended--
(1) in subsection (a)--
(A) by striking the first sentence and inserting
the following new sentence: ``The Secretary of a
military department may order to active duty a retired
member who agrees to serve on active duty in an
assignment intended to alleviate a high-demand, low-
density military capability or in any other specialty
designated by the Secretary as critical to meet wartime
or peacetime requirements.''; and
(B) in the second sentence, by striking ``officer''
both places it appears and inserting ``member'';
(2) in subsection (b), by striking ``an officer'' and
inserting ``a member'';
(3) in subsection (c), by striking ``500 officers'' and
inserting ``1,000 members'';
(4) in subsection (d), by striking ``officer'' and
inserting ``member'';
(5) in subsection (e), by striking ``Officers'' and
inserting ``Retired members'';
(6) in subsection (f)--
(A) by striking ``An officer'' and inserting ``A
retired member''; and
(B) by striking ``September 30, 2008'' and
inserting ``December 31, 2010''; and
(7) by adding at the end the following new subsection:
``(g) High-Demand, Low-Density Assignment Defined.--In this
section, the term `high-demand, low-density military capability' means
a combat, combat support or service support capability, unit, system,
or occupational specialty that the Secretary of Defense determines has
funding, equipment, or personnel levels that are substantially below
the levels required to fully meet or sustain actual or expected
operational requirements set by regional commanders.''.
(c) Clerical Amendments.--
(1) Title 37.--The table of sections at the beginning of
chapter 5 of title 37, United States Code, is amended by adding
at the end the following new item:

``329. Incentive bonus: retired members and reserve component members
volunteering for high-demand, low-density
assignments.''.
(2) Title 10.--(A) The heading of section 688a of title 10,
United States Code, is amended to read as follows:
``Sec. 688a. Retired members: temporary authority to order to active
duty in high-demand, low-density assignments''.
(B) The table of sections at the beginning of chapter 39 of
such title is amended by striking the item relating to section
688a and inserting the following new item:

``688a. Retired members: temporary authority to order to active duty in
high-demand, low-density assignments.''.
(d) Effective Date.--No agreement may be entered into under section
329 of title 37, United States Code, as added by subsection (a), before
October 1, 2006.
(e) Limitation on Fiscal Year 2007 Obligations.--During fiscal year
2007, obligations incurred under section 329 of title 37, United States
Code, as added by subsection (a), to provide bonuses or other
incentives to retired members and former members of the Army, Navy, Air
Force, or Marine Corps or to members of the reserve components of the
Army, Navy, Air Force, and Marine Corps may not exceed $5,000,000.

Subtitle C--Travel and Transportation Allowances

SEC. 631. AUTHORITY TO PAY COSTS ASSOCIATED WITH DELIVERY OF MOTOR
VEHICLE TO STORAGE LOCATION SELECTED BY MEMBER AND
SUBSEQUENT REMOVAL OF VEHICLE.

Subsection (b) of section 2634 of title 10, United States Code, is
amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) If a member elects to have a motor vehicle described in
subsection (a) stored at a location other than a storage location
approved by the Secretary concerned, the delivery and removal costs
described in paragraph (3) are the only costs that may be paid by the
Secretary. The delivery or removal costs paid by the Secretary under
this paragraph may not exceed the total cost that would have been
incurred by the United States had the storage location approved by the
Secretary been used to store the motor vehicle. The United States is
not responsible for any costs associated with the actual storage of the
motor vehicle at the unapproved location.''.

SEC. 632. TRANSPORTATION OF ADDITIONAL MOTOR VEHICLE OF MEMBERS ON
CHANGE OF PERMANENT STATION TO OR FROM NONFOREIGN AREAS
OUTSIDE THE CONTINENTAL UNITED STATES.

(a) Authority to Transport Additional Motor Vehicle.--Subsection
(a) of section 2634 of title 10, United States Code, is amended--
(1) by striking the sentence following paragraph (4);
(2) by redesignating paragraphs (1), (2), (3), and (4) as
subparagraphs (A), (B), (C), and (D), respectively;
(3) by inserting ``(1)'' after ``(a)''; and
(4) by adding at the end the following new paragraph:
``(2) One additional motor vehicle of a member (or a dependent of
the member) may be transported as provided in paragraph (1) if--
``(A) the member is ordered to make a change of permanent
station to or from a nonforeign area outside the continental
United States and the member has at least one dependent of
driving age who will use the motor vehicle; or
``(B) the Secretary concerned determines that a replacement
for the motor vehicle transported under paragraph (1) is
necessary for reasons beyond the control of the member and is
in the interest of the United States and the Secretary approves
the transportation in advance.''.
(b) Technical and Conforming Amendments.--Such subsection is
further amended--
(1) by striking ``his dependents'' and inserting ``a
dependent of the member'';
(2) by striking ``him'' and inserting ``the member'';
(3) by striking ``his)'' and inserting ``the member)'';
(4) by striking ``his new'' and inserting ``the member's
new''; and
(5) in paragraph (1)(C), as redesignated by subsection (a),
by striking ``clauses (1) and (2)'' and inserting
``subparagraphs (A) and (B)''.
(c) Effective Date.--Paragraph (2)(A) of subsection (a) of section
2634 of title 10, United States Code, as added by subsection (a)(4),
shall apply with respect to orders issued on or after the date of the
enactment of this Act for members of the Armed Forces to make a change
of permanent station to or from nonforeign areas outside the
continental United States.

SEC. 633. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRANSPORTATION OF
FAMILY MEMBERS INCIDENT TO ILLNESS OR INJURY OF MEMBERS.

Section 411h(b)(1) of title 37, United States Code, is amended--
(1) by striking ``and'' at the end of subparagraph (C);
(2) by striking the period at the end of subparagraph (D)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(E) a person related to the member as described in
subparagraph (A), (B), (C), or (D) who is also a member of the
uniformed services.''.

Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. MILITARY SURVIVOR BENEFIT PLAN BENEFICIARIES UNDER INSURABLE
INTEREST COVERAGE.

(a) Authority to Elect New Beneficiary.--Section 1448(b)(1) of
title 10, United States Code, is amended--
(1) by inserting ``or under subparagraph (G) of this
paragraph'' in the second sentence of subparagraph (E) before
the period at the end; and
(2) by adding at the end the following new subparagraph:
``(G) Election of new beneficiary upon death of
previous beneficiary.--
``(i) Authority for election.--If the
reason for discontinuation in the Plan is the
death of the beneficiary, the participant in
the Plan may elect a new beneficiary. Any such
beneficiary must be a natural person with an
insurable interest in the participant. Such an
election may be made only during the 180-day
period beginning on the date of the death of
the previous beneficiary.
``(ii) Procedures.--Such an election shall
be in writing, signed by the participant, and
made in such form and manner as the Secretary
concerned may prescribe. Such an election shall
be effective the first day of the first month
following the month in which the election is
received by the Secretary.
``(iii) Vitiation of election by
participant who dies within two years of
election.--If a person providing an annuity
under a election under clause (i) dies before
the end of the two-year period beginning on the
effective date of the election--
``(I) the election is vitiated; and
``(II) the amount by which the
person's retired pay was reduced under
section 1452 of this title that is
attributable to the election shall be
paid in a lump sum to the person who
would have been the deceased person's
beneficiary under the vitiated election
if the deceased person had died after
the end of such two-year period.''.
(b) Change in Premium for Coverage of New Beneficiary.--Section
1452(c) of such title is amended by adding at the end the following new
paragraph:
``(5) Rule for designation of new insurable interest
beneficiary following death of original beneficiary.--The
Secretary of Defense shall prescribe in regulations premiums
which a participant making an election under section
1448(b)(1)(G) of this title shall be required to pay for
participating in the Plan pursuant to that election. The total
amount of the premiums to be paid by a participant under the
regulations shall be equal to the sum of the following:
``(A) The total additional amount by which the
retired pay of the participant would have been reduced
before the effective date of the election if the
original beneficiary (i) had not died and had been
covered under the Plan through the date of the
election, and (ii) had been the same number of years
younger than the participant (if any) as the new
beneficiary designated under the election.
``(B) Interest on the amounts by which the retired
pay of the participant would have been so reduced,
computed from the dates on which the retired pay would
have been so reduced at such rate or rates and
according to such methodology as the Secretary of
Defense determines reasonable.
``(C) Any additional amount that the Secretary
determines necessary to protect the actuarial soundness
of the Department of Defense Military Retirement Fund
against any increased risk for the fund that is
associated with the election.''.
(c) Transition.--
(1) Transition period.--In the case of a participant in the
Survivor Benefit Plan who made a covered insurable-interest
election (as defined in paragraph (2)) and whose designated
beneficiary under that election dies before the date of the
enactment of this Act or during the 18-month period beginning
on such date, the time period applicable for purposes of the
limitation in the third sentence of subparagraph (G)(i) of
section 1448(b)(1) of title 10, United States Code, as added by
subsection (a), shall be the two-year period beginning on the
date of the enactment of this Act (rather than the 180-day
period specified in that sentence).
(2) Covered insurable-interest elections.--For purposes of
paragraph (1), a covered insurable-interest election is an
election under section 1448(b)(1) of title 10, United States
Code, made before the date of the enactment of this Act, or
during the 18-month period beginning on such date, by a
participant in the Survivor Benefit Plan to provide an annuity
under that plan to a natural person with an insurable interest
in that person.
(3) Survivor benefit plan.--For purposes of this
subsection, the term ``Survivor Benefit Plan'' means the
program under subchapter II of chapter 73 of title 10, United
States Code.

SEC. 642. RETROACTIVE PAYMENT OF ADDITIONAL DEATH GRATUITY FOR CERTAIN
MEMBERS NOT PREVIOUSLY COVERED.

(a) Specification of Additional Members Covered.--Section
1478(d)(2) of title 10, United States Code, is amended by striking
``May 11, 2005'' and inserting ``August 31, 2005''.
(b) Funding.--Amounts for payments under section 1478(d) of title
10, United States Code, as amended by subsection (a), with respect to
deaths during the period beginning on May 12, 2005, and ending on
August 31, 2005, may be derived from appropriations available to for
the Department of Defense for fiscal year 2006 or fiscal year 2007.

SEC. 643. EQUITY IN COMPUTATION OF DISABILITY RETIRED PAY FOR RESERVE
COMPONENT MEMBERS WOUNDED IN ACTION.

Section 1208(b) of title 10, United States Code, is amended by
adding at the end the following new sentence: ``However, in the case of
such a member who is retired under this chapter, or whose name is
placed on the temporary disability retired list under this chapter,
because of a disability incurred after the date of the enactment of
this sentence for which the member is awarded the Purple Heart, the
member shall be credited, for the purposes of this chapter, with the
number of years of service that would be counted if computing the
member's years of service under section 12732 of this title.''.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality
Benefits

SEC. 651. TREATMENT OF PRICE SURCHARGES OF TOBACCO PRODUCTS AND CERTAIN
OTHER MERCHANDISE SOLD AT COMMISSARY STORES.

(a) Merchandise Procured From Exchanges.--Subsection (c)(3) of
section 2484 of title 10, United States Code, is amended--
(1) by inserting ``(A)'' after ``(3)'';
(2) by striking ``Subsections'' and inserting ``Except as
provided in subparagraph (B), subsections''; and
(3) by adding at the end the following new subparagraph:
``(B) When a military exchange is the vendor of tobacco products or
other merchandise authorized for sale in a commissary store under
paragraph (1), any revenue above the cost of procuring the merchandise
shall be allocated as if the revenue were a uniform sales price
surcharge described in subsection (d).''.
(b) Merchandise Treated as Noncommissary Store Inventory.--
Subsection (g) of such section is amended--
(1) by inserting ``(1)'' before ``Notwithstanding'';
(2) by striking ``Subsections'' and inserting ``Except as
provided in paragraph (2), subsections''; and
(3) by adding at the end the following new paragraph:
``(2) When tobacco products are authorized for sale in a commissary
store as noncommissary store inventory, any revenue above the cost of
procuring the tobacco products shall be allocated as if the revenue
were a uniform sales price surcharge described in subsection (d).''.

SEC. 652. LIMITATION ON USE OF DEPARTMENT OF DEFENSE LEASE AUTHORITY TO
UNDERMINE COMMISSARIES AND EXCHANGES AND OTHER MORALE,
WELFARE, AND RECREATION PROGRAMS AND NONAPPROPRIATED FUND
INSTRUMENTALITIES.

Section 2667(f) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(5) Except in the case of a lease under this subsection, a lease
of real property may not be entered into under this section to
fascilitate the establishment or operation of an ancillary supporting
facility (as defined in section 2871 of this title) if, as determined
by the Secretary concerned, the facility is to be used for providing
merchandise or services in direct competition with--
``(A) the Army and Air Force Exchange Service;
``(B) the Navy Exchange Service Command;
``(C) a Marine Corps exchange;
``(D) the Defense Commissary Agency; or
``(E) any nonappropriated fund activity of the Department
of Defense for the morale, welfare, and recreation of members
of the armed forces.''.

SEC. 653. USE OF NONAPPROPRIATED FUNDS TO SUPPLEMENT OR REPLACE
APPROPRIATED FUNDS FOR CONSTRUCTION OF FACILITIES OF
EXCHANGE STORES SYSTEM AND OTHER NONAPPROPRIATED FUND
INSTRUMENTALITIES, MILITARY LODGING FACILITIES, AND
COMMUNITY FACILITIES.

(a) In General.--Subchapter III of chapter 147 of title 10, United
States Code, is amended by inserting after section 2491c the following
new section:
``Sec. 2491d. Use of nonappropriated funds to supplement or replace
appropriated funds for construction of facilities of
exchange stores system and other nonappropriated fund
instrumentalities, military lodging facilities, and
community facilities
``(a) Use of Nonappropriated Funds.--The Secretary of Defense may
authorize the use of nonappropriated funds in lieu of or to supplement
funds appropriated to the Department of Defense for the construction of
the following:
``(1) Facilities of the exchange stores system and other
revenue-generating facilities operated by nonappropriated fund
instrumentalities of the Department of Defense for the morale,
welfare, and recreation of members of the armed forces.
``(2) Facilities of other nonappropriated fund
instrumentalities of the Department of Defense for the morale,
welfare, and recreation of members of the armed forces.
``(3) Military lodging facilities used to provide temporary
lodging to authorized members of the armed forces, including
temporary duty lodging, permanent change of station lodging,
recreational lodging, and military treatment facility lodging.
``(4) Community facilities intended to supplement mission
activities, such as military museums and service academy extra-
curricular activities, or to facilitate private organizations
or enterprises, such as financial services, memorials, and
thrift shop facilities, on military installations.
``(b) Use Criteria.--The Secretary of Defense may prescribe by
regulation the criteria under which nonappropriated funds may be used
under subsection (a).
``(c) Congressional Notification.--When a decision is made to use
nonappropriated funds under subsection (a), the Secretary of Defense
shall submit a report to the congressional defense committees
containing the reasons for using nonappropriated funds in lieu of or to
supplement appropriated funds and the amount of nonappropriated funds
to be used. The nonappropriated funds may be used only after the end of
the 21-day period beginning on the date the report is received by such
committees or, if earlier, the end of the 14-day period beginning on
the date on which a copy of the report is provided in an electronic
medium pursuant to section 480 of this title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such subchapter is amended by inserting after the item relating to
section 2491c the end the following new item:

``2491d. Use of nonappropriated funds to supplement or replace
appropriated funds for construction of
facilities of exchange stores system and
other nonappropriated fund
instrumentalities, military lodging
facilities, and community facilities.''.

SEC. 654. REPORT ON COST EFFECTIVENESS OF PURCHASING COMMERCIAL
INSURANCE FOR COMMISSARY AND EXCHANGE FACILITIES AND
FACILITIES OF OTHER MORALE, WELFARE, AND RECREATION
PROGRAMS AND NONAPPROPRIATED FUND INSTRUMENTALITIES.

(a) Report Required.--Not later than July 31, 2007, the Secretary
of Defense shall submit to Congress a report evaluating the cost
effectiveness of the Defense Commissary Agency and the nonappropriated
fund activities specified in subsection (b) purchasing commercial
insurance to protect financial interests in facilities operated by the
Defense Commissary Agency or those nonappropriated fund activities.
(b) Covered Nonappropriated Fund Activities.--The report shall
apply with respect to--
(1) the Army and Air Force Exchange Service;
(2) the Navy Exchange Service Command;
(3) a Marine Corps exchange; and
(4) any nonappropriated fund activity of the Department of
Defense for the morale, welfare, and recreation of members of
the armed forces.

Subtitle F--Other Matters

SEC. 661. REPEAL OF ANNUAL REPORTING REQUIREMENT REGARDING EFFECTS OF
RECRUITMENT AND RETENTION INITIATIVES.

(a) Repeal.--Section 1015 of title 37, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 19 of title 37, United States Code, is amended by striking the
item relating to section 1015.

SEC. 662. PILOT PROJECT REGARDING PROVIDING GOLF CARTS ACCESSIBLE FOR
DISABLED PERSONS AT MILITARY GOLF COURSES.

(a) Pilot Project Required.--The Secretary of Defense shall conduct
a pilot project at not less than three military golf courses to
evaluate the cost effectiveness and utility of making available at
military golf courses golf carts that are accessible for disabled
persons authorized to use such courses and the demand among disabled
persons authorized to use such courses for accessible golf carts. The
Secretary shall provide at least two accessible golf carts at each
pilot project location.
(b) Pilot Project Locations.--The military golf courses selected to
participate in the pilot project shall be geographically dispersed,
except that one of the military golf courses shall be in the Washington
metropolitan area.
(c) Duration.--The Secretary shall conduct the pilot project for a
minimum of one year.
(d) Report Required.--Not later than 180 days after the conclusion
of the pilot project, the Secretary shall submit a report to Congress
containing the results of the project and such recommendations as the
Secretary considers appropriate regarding providing golf carts
accessible to disabled persons.

SEC. 663. ENHANCED AUTHORITY TO REMIT OR CANCEL INDEBTEDNESS OF MEMBERS
OF THE ARMED FORCES INCURRED ON ACTIVE DUTY.

(a) Period of Exercise of Service Secretary Authority After
Separation From Active Duty.--Sections 4837(b), 6161(b), and 9837(b) of
title 10, United States Code, are each amended by striking ``one-year
period'' each place it appears and inserting ``five-year period''.
(b) Two-Year Extension of Enhanced Authority.--Subsections (a)(3),
(b)(3), and (c)(3) of section 683 of the National Defense Authorization
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3322) are
amended by striking ``December 31, 2007'' in the first sentence and
inserting ``December 31, 2009''.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--TRICARE Program Improvements

Subtitle B--Studies and Reports

Subtitle C--Other Matters

Subtitle D--Pharmacy Benefits Program Improvements

Sec. 731. TRICARE pharmacy program cost-share requirements.

Subtitle A--TRICARE Program Improvements

SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINATION FOLLOWING SEXUAL
ASSAULT OR DOMESTIC VIOLENCE.

Section 1079(a) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(17) Forensic examinations following a sexual assault or
domestic violence may be provided.''.

SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER COSTS FOR DENTAL CARE
FOR CHILDREN AND CERTAIN OTHER PATIENTS.

Section 1079(a)(1) of title 10, United States Code, is amended to
read as follows:
``(1) With respect to dental care--
``(A) except as provided in subparagraph (B), only
that care required as a necessary adjunct to medical or
surgical treatment may be provided; and
``(B) in connection with dental treatment for
patients with developmental, mental, or physical
disabilities or for pediatric patients age 5 or under,
only institutional and anesthesia services may be
provided.''.

SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER SCREENING.

(a) Terms Related to Primary and Preventive Health Care Services
for Women.--Section 1074d(b) of title 10, United States Code, is
amended--
(1) in paragraph (1), by striking ``Papanicolaou tests (pap
smear)'' and inserting ``Cervical cancer screening''; and
(2) in paragraph (2), by striking ``Breast examinations and
mammography'' and inserting ``Breast cancer screening''.
(b) Terms Related to Contracts for Medical Care for Spouses and
Children.--Section 1079(a)(2) of such title is amended--
(1) in the matter preceding subparagraph (A), by striking
``the schedule of pap smears and mammograms'' and inserting
``the schedule and method of breast and cervical cancer
screenings''; and
(2) in subparagraph (B), by striking ``pap smears and
mammograms or'' and inserting ``cervical, breast,''.

SEC. 704. PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE COSTS FOR
MEMBERS OF THE UNIFORMED SERVICES.

(a) Prohibition on Increase in Charges Under Contracts for Medical
Care.--Section 1097(e) of title 10, United States Code, is amended by
adding at the end the following: ``A premium, deductible, copayment, or
other charge prescribed by the Secretary under this subsection may not
be increased during the period beginning on April 1, 2006, and ending
on December 31, 2007.''.
(b) Prohibition on Increase in Charges for Inpatient Care.--Section
1086(b)(3) of title 10, United States Code, is amended by inserting
after ``charges for inpatient care'' the following: ``, except that in
no case may the charges for inpatient care for a patient exceed $535
per day during the period beginning on April 1, 2006, and ending on
December 31, 2007.''.
(c) Prohibition on Increase in Premiums Under TRICARE Coverage for
Certain Members in the Selected Reserve.--Section 1076d(d)(3) of title
10, United States Code, is amended by adding at the end the following:
``During the period beginning on April 1, 2006, and ending on December
31, 2007, the monthly amount of the premium may not be increased above
the amount in effect for the month of March 2006.''.
(d) Prohibition on Increase in Premiums Under TRICARE Coverage for
Members of the Ready Reserve.--Section 1076b(e)(3) of title 10, United
States Code, is amended by adding at the end the following: ``During
the period beginning on April 1, 2006, and ending on December 31, 2007,
the monthly amount of a premium under paragraph (2) may not be
increased above the amount in effect for the first month health care is
provided under this section as amended by Public Law 109-163.''.

SEC. 705. SERVICES OF MENTAL HEALTH COUNSELORS.

(a) Reimbursement of Mental Health Counselors Under TRICARE.--
(1) reimbursement under tricare.--Section 1079(a)(8) of
title 10, United States Code, is amended--
(A) by inserting ``or licensed or certified mental
health counselors'' after ``certified marriage and
family therapists'' both places it appears; and
(B) by inserting ``or licensed or certified mental
health counselors'' after ``that the therapists.''
(2) Authority to assess medical or psychological necessity
of service or supply.--Section 1079(a)(13) of such title is
amended by inserting ``, licensed or certified mental health
counselor, '' after ``certified marriage and family
therapist''.
(b) Services of Mental Health Counselors.--
(1) Authority to enter into personal services contracts.--
Section 704(c)(2) of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2799; 10 U.S.C.
1091 note) is amended by inserting ``mental health
counselors,'' after ``psychologists,''.
(2) Applicability of licensure requirement for health-care
professionals.--Section 1094 (e)(2) of title 10, United States
Code, is amended by inserting ``mental health counselor,''
after ``psychologist,''.

SEC. 706. DEMONSTRATION PROJECT ON COVERAGE OF SELECTED OVER-THE-
COUNTER MEDICATIONS UNDER THE PHARMACY BENEFIT PROGRAM.

(a) Requirement to Conduct Demonstration.--The Secretary of Defense
shall conduct a demonstration project under section 1092 of title 10,
United States Code, to allow particular over-the-counter medications to
be included on the uniform formulary under section 1074g of such title.
(b) Elements of Demonstration Project.--
(1) Inclusion of certain over-the-counter medications.--As
part of the demonstration project, the Secretary shall modify
uniform formulary specifications under section 1074g(a)(2) of
such title to include on the uniform formulary any
pharmaceutical agent that does not require a prescription
(commonly referred to as an over-the-counter medication) if the
Pharmacy and Therapeutics Committee finds that the over-the-
counter medication is a clinically effective and cost-effective
alternative to a pharmaceutical agent that requires a
prescription. If the Pharmacy and Therapeutics Committee makes
such a finding, the over-the-counter medication shall be
considered to be in the same therapeutic class of
pharmaceutical agents that the agent requiring a prescription
is in, and to the same extent as any agent in the class that
requires a prescription. Such an over-the-counter medication
shall be made available to a beneficiary through the
demonstration program only if the medication is in place of a
pharmaceutical agent requiring a prescription and the
beneficiary has a prescription for that pharmaceutical agent.
(2) Conduct through military facilities, retail pharmacies,
or mail order program.--The Secretary shall conduct the
demonstration project through at least two of the means
described in subparagraph (E) of section 1074g(a)(2) through
which over-the-counter medications are provided and may conduct
the demonstration project throughout the entire pharmacy
benefits program or at a limited number of sites. If the
project is conducted at a limited number of sites, the number
of sites shall be not less than five in each TRICARE region for
each of the two means described in such subparagraph (E).
(3) Period of demonstration.--The Secretary shall provide
for conducting the demonstration project for a period of time
necessary to evaluate the feasibility and cost effectiveness of
the demonstration. Such period shall be at least as long as the
period covered by pharmacy contracts in existence on the date
of the enactment of this Act (including any extensions of the
contracts), or five years, whichever is shorter.
(4) Implementation deadline.-- Implementation of the
demonstration project shall begin not later than May 1, 2007.
(c) Report.--Not later than 60 days before the end of the
demonstration project, the Secretary shall submit to the Committees on
Armed Services of the House of Representatives and the Senate a report
on the demonstration project. The report shall contain an evaluation by
the Secretary of the costs and benefits of the project, and
recommendations on whether permanent authority should be provided to
cover over-the-counter medications under the pharmacy benefits program.
(d) Continuation of Demonstration Project.--If the Secretary
recommends in the report under subsection (c) that permanent authority
should be provided, the Secretary may continue the demonstration
project for up to one year after submitting the report.

SEC. 707. REQUIREMENT TO REIMBURSE CERTAIN TRAVEL EXPENSES OF CERTAIN
BENEFICIARIES COVERED BY TRICARE FOR LIFE.

(a) Requirement.--Section 1074i of title 10, United States Code, is
amended by adding at the end the following new subsection:
``(c) TRICARE for Life Beneficiaries.--
``(1) An eligible TRICARE for Life beneficiary shall be
provided reimbursement for travel expenses to a military
medical treatment facility if--
``(A) the purpose of the travel is for a follow-up
appointment for medical treatment of a condition of the
beneficiary; and
``(B) the initial appointment for medical treatment
of the condition was at the same facility.
``(2) Reimbursement under this subsection shall, as nearly
as practicable, be under the same terms and conditions, and
shall be at the same rate, as apply to beneficiary travel
reimbursement provided under subsection (a), except that
reimbursement shall be provided--
``(A) for no more than 3 follow-up appointments;
and
``(B) only if adequate follow-up medical treatment,
as determined under the TRICARE program, cannot be
obtained within 100 miles of the residence of the
beneficiary.
``(3) In this subsection, the term `eligible TRICARE for
Life beneficiary' means a person--
``(A) who is eligible for health benefits under
section 1086 of this title by reason of subsection
(d)(2)(A) of that section;
``(B) who attained age 65 after an initial
appointment for medical treatment at a military medical
treatment facility; and
``(C) who resides more than 100 miles from the
military medical treatment facility and was referred to
such facility for treatment by a specialty care
provider.''.
(b) Effective Date.--Subsection (c) of section 1074i of title 10,
United States Code, as added by subsection (a), shall apply with
respect to beneficiaries who attain age 65 after the date of the
enactment of this Act.

SEC. 708. INFLATION ADJUSTMENT OF DIFFERENTIAL PAYMENTS TO CHILDREN'S
HOSPITALS PARTICIPATING IN TRICARE PROGRAM.

(a) Annual Inflation Adjustment.--Beginning in fiscal year 2007,
the Secretary of Defense shall annually adjust for inflation the
TRICARE children's hospital differential payment rate. The adjustment
for a fiscal year shall be the same as the applicable percentage
increase defined under section 1886(d)(3)(B)(i) of the Social Security
Act (42 U.S.C. 1395ww(d)(3)(B)(i)) for that fiscal year for hospitals
located in large urban areas.
(b) TRICARE Children's Hospital Differential Payment Rate.--In this
section, the term ``TRICARE children's hospital differential payment
rate'' means the differential payment rate by the Department of Defense
to children's hospitals for health care services for dependent children
of members of the uniformed services under the TRICARE program.

SEC. 709. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER
TRICARE PROGRAM.

(a) General Eligibility.--Subsection (a) of section 1076d of title
10, United States Code, is amended--
(1) by striking ``(a) Eligibility.--A member'' and
inserting ``(a) Eligibility.--(1) Except as provided in
paragraph (2), a member'';
(2) by striking ``after the member completes'' and all that
follows through ``one or more whole years following such
date''; and
(3) by adding at the end the following new paragraph:
``(2) Paragraph (1) does not apply to a member who is enrolled, or
is eligible to enroll, in a health benefits plan under chapter 89 of
title 5.''.
(b) Condition for Termination of Eligibility.--Subsection (b) of
such section is amended--
(1) by striking ``(b) Period of Coverage.--(1) TRICARE
Standard'' and all that follows through ``(4) Eligibility'' and
inserting ``(b) Termination of Eligibility Upon Termination of
Service.--Eligibility''; and
(2) by striking paragraph (5).
(c) Conforming Amendments.--
(1) Such section is further amended--
(A) by striking subsection (e);
(B) by redesignating subsection (g) as subsection
(e) and transferring such subsection within such
section so as to appear following subsection (d); and
(C) by striking paragraph (3) of subsection (f).
(2) The heading for such section is amended to read as
follows:
``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of
the Selected Reserve''.
(d) Repeal of Obsolete Provision.--Section 1076b of title 10,
United States Code, is repealed.
(e) Clerical Amendments.--The table of sections at the beginning of
chapter 55 of title 10, United States Code, is amended--
(1) by striking the item relating to section 1076b; and
(2) by striking the item relating to section 1076d and
inserting the following:

``1076d. TRICARE program: TRICARE Standard coverage for members of the
Selected Reserve.''.
(f) Savings Provision.--Enrollments in TRICARE Standard that are in
effect on the day before the date of the enactment of this Act under
section 1076d of title 10, United States Code, as in effect on such
day, shall be continued until terminated after such day under such
section 1076d as amended by this section.
(g) Effective Date.--The Secretary of Defense shall ensure that
health care under TRICARE Standard is provided under section 1076d of
title 10, United States Code, as amended by this section, beginning not
later than October 1, 2007.

SEC. 710. EXTENSION TO TRICARE OF MEDICARE PROHIBITION OF FINANCIAL
INCENTIVES NOT TO ENROLL IN GROUP HEALTH PLAN.

(a) In General.--Section 1097b of title 10, United States Code, is
amended by redesignating subsection (c) as subsection (d) and by adding
the following after subsection (b):
``(c) Prohibition of Financial Incentives not to Enroll in a Group
Health Plan.--(1) Except as provided in this subsection, the provisions
of section 1862(b)(3)(C) of the Social Security Act shall apply with
respect to financial or other incentives for an individual eligible for
benefits under section 1086 of this title not to enroll (or to
terminate enrollment) under a health plan which would (in the case of
such enrollment) be a primary plan under sections 1079(j)(1) and
1086(g) of this title in the same manner as such section 1862(b)(3)(C)
applies to financial or other incentives for an individual entitled to
benefits under title XVIII of the Social Security Act not to enroll (or
to terminate enrollment) under a group health plan or a large group
health plan which would (in the case of enrollment) be a primary plan
(as defined in section 1862(b)(2)(A) of such Act).
``(2)(A) The Secretary of Defense may by regulation adopt such
exceptions to the prohibition referenced and applied under paragraph
(1) as the Secretary deems appropriate and such paragraph (1) shall be
implemented taking into account the adoption of such exceptions.
``(B) The Secretary of Defense and the Secretary of Health and
Human Services are authorized to enter into agreements for carrying out
this subsection. Any such agreement shall provide that any expenses
incurred by the Secretary of Health and Human Services pertaining to
carrying out this subsection shall be reimbursed by the Secretary of
Defense.
``(C) Authorities of the Inspector General of the Department of
Defense shall be available for oversight and investigations of
responsibilities of employers and other entities under this subsection.
``(D) Information obtained under section 1095(k) of this title may
be used in carrying out this subsection in the same manner as
information obtained under section 1862(b)(5) may be used in carrying
out section 1862(b).
``(E) Any amounts collected in carrying out paragraph (1) shall be
handled in accordance with section 1079a of this title.
``(3) In addition to any penalty applied under the authority of
paragraph (1), the Secretary of Defense may by regulation provide that
repeated violations by an employer or other entity of the prohibition
referenced and applied under paragraph (1) are grounds for exclusion of
the employer or other entity from any contract or subcontract to
provide goods or services to, or any financial assistance from, the
Department of Defense.''.
(b) Conforming Amendment.--Section 1095(k)(5) of such title is
amended by striking ``and 1086(d)'' and inserting ``, 1086(d), and
1097b(c)''.
(c) Effective Date.--The amendments made by this section shall take
effect January 1, 2008.

Subtitle B--Studies and Reports

SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE FUTURE OF MILITARY
HEALTH CARE.

(a) Requirement to Establish.--The Secretary of Defense shall
establish within the Department of Defense a task force to examine
matters relating to the future of military health care.
(b) Composition.--
(1) Members.--The task force shall consist of not more than
14 members appointed by the Secretary of Defense from among
individuals described in paragraph (2) who have demonstrated
expertise in the area of health care programs and costs.
(2) Range of members.--The individuals appointed to the
task force shall include--
(A) at least one member of each of the Medical
Departments of the Army, Navy, and Air Force;
(B) a number of persons from outside the Department
of Defense equal to the total number of personnel from
within the Department of Defense (whether members of
the Armed Forces or civilian personnel) who are
appointed to the task force;
(C) persons who have experience in--
(i) health care actuarial forecasting;
(ii) health care program development;
(iii) health care budget management;
(iv) evidence-based medicine;
(v) health care performance measurement;
(vi) health care quality improvement; and
(vii) academic institute research in health
care services;
(D) at least one member from the Institute of
Medicine;
(E) at least one member from the Defense Business
Board; and
(F) at least one representative from a military or
veterans service organization who has experience in
health care.
(3) Individuals appointed outside the department of
defense.--
(A) Individuals appointed to the task force from
outside the Department of Defense may include officers
or employees of other departments or agencies of the
Federal Government, officers or employees of State and
local governments, or individuals from the private
sector.
(B) Individuals appointed to the task force from
outside the Department of Defense shall include--
(i) an officer or employee of the
Department of Veterans Affairs; and
(ii) an officer or employee of the
Department of Health and Human Services.
(4) Deadline for appointment.--All appointments of
individuals to the task force shall be made not later than 90
days after the date of the enactment of this Act.
(5) Co-chairs of task force.--There shall be two co-chairs
of the task force. One of the co-chairs shall be designated by
the Secretary of Defense at the time of appointment from among
the Department of Defense personnel appointed to the task
force. The other co-chair shall be selected from among the
members appointed from outside the Department of Defense by
members so appointed.
(c) Assessment and Recommendations on the Future of Military Health
Care.--
(1) In general.--Not later than 12 months after the date on
which all members of the task force have been appointed, the
task force shall submit to the Secretary a report containing an
assessment of, and recommendations for, sustaining the military
health care services being provided to members of the Armed
Forces, retirees, and their families.
(2) Utilization of other efforts.--In preparing the report,
the task force shall take into consideration the findings and
recommendation included in the Healthcare for Military Retirees
Task Group of the Defense Business Board, previous Government
Accountability Office reports, studies and reviews by the
Assistant Secretary of Defense for Health Affairs, and any
other studies or research conducted by organizations regarding
improvements to sustain the military health care system.
(3) Elements.--The assessment and recommendations
(including recommendations for legislative or administrative
action) shall include measures to improve the following:
(A) Wellness initiatives and disease management
programs of the Department of Defense, including health
risk tracking and the use of rewards for wellness.
(B) Education programs focused on prevention
awareness and patient-initiated health care.
(C) The ability to account for the true and
accurate cost of health care in the military health
system.
(D) Alternative health care initiatives to manage
patient behavior and costs.
(E) The appropriate command and control structure
within the Department of Defense and the Armed Forces
to manage the military health system.
(F) The adequacy of the military health care
procurement system, including methods to streamline
existing procurement activities.
(G) The appropriate mix of military and civilian
personnel to meet future readiness and high-quality
health care service requirements.
(H) The beneficiary and Government cost sharing
structure required to sustain the military health
benefits over the long term.
(I) Programs focused on managing the health care
needs of Medicare-eligible military beneficiaries.
(J) Efficient and cost effective contracts for
health care services, including performance-based
requirements for health care provider reimbursement.
(c) Administrative Matters.--
(1) Compensation.--Each member of the task force who is a
member of the Armed Forces or a civilian officer or employee of
the United States shall serve without compensation (other than
compensation to which entitled as a member of the Armed Forces
or an officer or employee of the United States, as the case may
be). Other members of the task force shall be treated for
purposes of section 3161 of title 5, United States Code, as
having been appointed under subsection (b) of such section.
(2) Oversight.--The Under Secretary of Defense for
Personnel and Readiness shall oversee the activities of the
task force.
(3) Administrative support.--The Washington Headquarters
Services of the Department of Defense shall provide the task
force with personnel, facilities, and other administrative
support as necessary for the performance of the duties of the
task force.
(4) Access to facilities.--The Under Secretary of Defense
for Personnel and Readiness shall, in coordination with the
Secretaries of the military departments, ensure appropriate
access by the task force to military installations and
facilities for purposes of the discharge of the duties of the
task force.
(e) Report.--
(1) In general.--The task force shall submit to the
Secretary of Defense a report on its activities under this
section. The report shall include--
(A) a description of the activities of the task
force;
(B) the assessment and recommendations required by
subsection (c); and
(C) such other matters relating to the activities
of the task force that the task force considers
appropriate.
(2) Transmittal to congress.--Not later than 90 days after
receipt of the report under paragraph (1), the Secretary shall
transmit the report to the Committees on Armed Services of the
Senate and the House of Representatives. The Secretary may
include in the transmittal such comments on the report as the
Secretary considers appropriate.
(f) Plan Required.--Not later than 6 months after receipt of the
report from the task force under subsection (e)(1), the Secretary of
Defense shall develop a plan based on the recommendations of the task
force and submit the plan to the Committees on Armed Services of the
Senate and the House of Representatives.
(g) Termination.--The task force shall terminate 90 days after the
date on which the report of the task force is submitted to Congress
under subsection (e)(2).

SEC. 712. STUDY AND PLAN RELATING TO CHIROPRACTIC HEALTH CARE SERVICES.

(a) Study Required.--
(1) Groups covered.--The Secretary of Defense shall conduct
a study of providing chiropractic health care services and
benefits to the following groups:
(A) All members of the uniformed services on active
duty and entitled to care under section 1074(a) of
title 10, United States Code.
(B) All members described in subparagraph (A) and
their eligible dependents, and all members of reserve
components of the uniformed services and their eligible
dependents.
(C) All members or former members of the uniformed
services who are entitled to retired or retainer pay or
equivalent pay and their eligible dependents.
(2) Matters examined.--
(A) For each group listed in subparagraphs (A),
(B), and (C) of paragraph (1), the study shall examine
the following with respect to chiropractic health care
services and benefits:
(i) The cost of providing such services and
benefits.
(ii) The feasibility of providing such
services and benefits.
(iii) An assessment of the health care
benefits of providing such services and
benefits.
(iv) An estimate of the potential cost
savings of providing such services and benefits
in lieu of other medical services.
(v) The identification of existing and
planned health care infrastructure, including
personnel, equipment, and facilities, to
accommodate the provision of chiropractic
health care services.
(B) For the members of the group listed in
subparagraph (A) of paragraph (1), the study shall
examine the effects of providing chiropractic health
care services and benefits--
(i) on the readiness of such members; and
(ii) on the acceleration of the return to
duty of such members following an identified
injury or other malady that can be
appropriately treated with chiropractic health
care services.
(3) Space available costs.--The study shall also include a
detailed analysis of the projected costs of providing
chiropractic health care services on a space available basis in
the military treatment facilities currently providing
chiropractic care under section 702 of the Floyd D. Spence
National Defense Authorization Act of Fiscal Year 2001 (as
enacted by Public Law 106-398; 10 U.S.C. 1092 note).
(4) Eligible dependents defined.--In this section, the term
``eligible dependent'' has the meaning given that term in
section 1076a(k) of title 10, United States Code.
(b) Plan Required.--Not later than March 31, 2007, the Secretary of
Defense shall revise the plan required under section 702 of the Floyd
D. Spence National Defense Authorization Act of Fiscal Year 2001 (as
enacted by Public Law 106-398; 10 U.S.C. 1092 note), including a
detailed analysis of the projected costs, to provide chiropractic
health care services and benefits as a permanent part of the Defense
Health Program (including the TRICARE program) as required under that
section.
(c) Report Required.--Not later than March 31, 2007, the Secretary
of Defense shall submit a report on the study required under subsection
(a), together with the plan required under subsection (b), to the
Committees on Armed Services of the Senate and the House of
Representatives.

SEC. 713. COMPTROLLER GENERAL STUDY AND REPORT ON DEFENSE HEALTH
PROGRAM.

(a) Study Required.--The Comptroller General, in cooperation with
the Congressional Budget Office, shall conduct a study of the projected
cost savings to the Defense Health Program included in the fiscal year
2007 budget request.
(b) Elements.--The study required by subsection (a) shall include
the following:
(1) An evaluation of the rationale for calculations made by
the Department of Defense for the portion of total health care
costs paid by beneficiaries in 1995 and in 2005, including
issues such as--
(A) the rationale for the Department's stated costs
of providing the benefit in 1995 and in 2005;
(B) the basis for the Department's calculations of
increases in cost between 1995 and 2005; and
(C) the amounts paid by beneficiaries for health
care in 1995 and 2005.
(2) An evaluation of the rationale for calculations and
assumptions made by the Department of Defense for the estimated
savings associated with the implementation of its cost share
increases.
(3) A review of the annual rate of medical inflation of the
Department of Defense and how it compares with the annual rates
of increase in health care premiums in the Federal Employee
Health Benefit Program and other health care programs as well
as other health care indexes for the past 5 years.
(4) An assessment of the rationale for the cost share
increase amounts made by the Department of Defense.
(c) Independent Experts.--To ensure the availability of appropriate
expertise in addressing the elements of the study required under this
section, the Comptroller General may use independent experts, such as
actuaries, if needed.
(d) Report.--The Comptroller General shall submit to the Committees
on Armed Services of the Senate and the House of Representatives a
report on the study required by subsection (a) not later than June 1,
2007.

SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY ASSETS TO
MEDICAL FOLLOW-UP AGENCY.

(a) Transfer.--
(1) Notification of participants.--The Secretary of the Air
Force shall notify the participants of the Air Force Health
Study that the study as currently constituted is ending as of
September 30, 2006. In consultation with the Medical Follow-up
Agency (in this section referred to as the ``Agency'') of the
Institute of Medicine of the National Academy of Sciences, the
Secretary of the Air Force shall request the written consent of
the participants to transfer their data and biological
specimens to the Agency during fiscal year 2007 and written
consent for the Agency to maintain the data and specimens and
make them available for additional studies.
(2) Completion of transfer.--Custodianship of the Air Force
Health Study shall be completely transferred to the Agency on
or before September 30, 2007. Assets to be transferred shall
include electronic data files and biological specimens of all
the study participants.
(3) Copies to archives.--The Air Force shall send paper
copies of all study documents to the National Archives.
(b) Report on Transfer.--
(1) Requirement.--Not later than 30 days after completion
of the transfer of the assets of the Air Force Health Study
under subsection (a), the Secretary of the Air Force shall
submit to the Committees on Armed Services of the Senate and
the House of Representatives a report on the transfer.
(2) Matters covered.--At a minimum, the report shall
include information on the number of study participants whose
data and biological specimens were not transferred, the efforts
that were taken to contact such participants, and the reasons
why the transfer of their data and specimens did not occur.
(c) Disposition of Assets Not Transferred.--The Secretary of the
Air Force may not destroy any data or biological specimens not
transferred under subsection (a) until the expiration of the one-year
period following submission of the report under subsection (b).
(d) Funding.--
(1) Costs of transfer.--The Secretary of Defense shall make
available to the Air Force $850,000 for preparation, transfer
of the assets of the Air Force Health Study and shipment of
data and specimens to the Medical Follow-up Agency and the
National Archives during fiscal year 2007 from amounts
available from the Department of Defense for that year. The
Secretary of Defense is authorized to transfer the freezers and
other physical assets assigned to the Air Force Health Study to
the Agency without charge.
(2) Costs of collaboration.--The Secretary of Defense may
reimburse the National Academy of Sciences up to $200,000 for
costs of the Medical Follow-up Agency to collaborate with the
Air Force in the transfer and receipt of the assets of the Air
Force Health Study to the Agency during fiscal year 2007 from
amounts available from the Department of Defense for that year.

SEC. 715. STUDY ON ALLOWING DEPENDENTS OF ACTIVATED MEMBERS OF RESERVE
COMPONENTS TO RETAIN CIVILIAN HEALTH CARE COVERAGE.

(a) Study Requirement.--The Secretary of Defense shall conduct a
study on the feasibility of allowing family members of members of the
Reserve Components who are called or ordered to active duty to continue
health care coverage under a civilian health care program and provide
reimbursement for such health care.
(b) Elements.--The study required by subsection (a) shall include
the following:
(1) An assessment of the number of military dependents with
special health care needs (such as ongoing chemotherapy or
physical therapy) who would benefit from continued coverage
under the member's civilian health care plan instead of
enrolling in the TRICARE program.
(2) An assessment of the feasibility of providing
reimbursement to the member or the sponsor of the civilian
health coverage.
(3) A recommendation on the appropriate rate of
reimbursement for civilian employers or members.
(4) The feasibility of including dependents who do not have
access to health care providers that accept payment under the
TRICARE program (such as those in rural areas).
(c) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives a report on the study required under subsection (a).

Subtitle C--Other Matters

SEC. 721. COSTS OF INCENTIVE PAYMENTS TO EMPLOYEES FOR TRICARE
ENROLLMENT MADE UNALLOWABLE FOR CONTRACTORS.

(a) Defense Contracts.--Section 2324(e)(1) of title 10, United
States Code, is amended by adding at the end the following new
subparagraph:
``(Q) Costs incurred by a contractor for incentive payments
to employees to encourage enrollment in the TRICARE program
under chapter 55 of this title or any other Government-
sponsored health care program, except that this subparagraph
does not apply to such costs incurred by a contractor
performing a contract to which any of the following applies:
``(i) The Services Contract Act of 1965 (41 U.S.C.
351 et seq.).
``(ii) Any other law or labor agreement that
requires a company to compensate its employees for
health care whether or not the employee participates in
a company health plan.''.
(b) Civilian Agency Contracts.--Section 306(e)(1) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 256(e)(1))
is amended by adding at the end the following new subparagraph:
``(P) Costs incurred by a contractor for incentive payments
to employees to encourage enrollment in the TRICARE program
under chapter 55 of title 10, United States Code, or any other
Government-sponsored health care program, except that this
subparagraph does not apply to such costs incurred by a
contractor performing a contract to which any of the following
applies:
``(i) The Services Contract Act of 1965 (41 U.S.C.
351 et seq.).
``(ii) Any other law or labor agreement that
requires a company to compensate its employees for
health care whether or not the employee participates in
a company health plan.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to contracts entered into after the date occurring
180 days after the date of the enactment of this Act.

SEC. 722. REQUIREMENT FOR MILITARY MEDICAL PERSONNEL TO BE TRAINED IN
PRESERVATION OF REMAINS.

(a) Requirement.--The Secretary of Defense shall develop a program
requiring each military department to include training in the
preservation of remains for health care professionals under the
department's jurisdiction. The training shall be provided before a
health care professional is deployed into a theater of operation and
periodically thereafter as determined necessary for refresher training.
(b) Matters Covered by Training.--The training shall include, at a
minimum--
(1) best practices and procedures for the preservation of
the remains of a member of the Armed Forces after death, taking
into account the needs, sensitivities, and potential wishes of
the family of the decedent, including the return of the remains
to the family in the best possible condition; and
(2) practical case studies to illustrate the objectives of
paragraph (1) and provide a real world perspective.
(c) Health Care Professional.--In this section, the term ``health
care professional'' means a physician, dentist, clinical psychologist,
nurse, nurse practitioner, or physician assistant and any other person
providing direct patient care as may be designated by the Secretary of
Defense in regulations.

Subtitle D--Pharmacy Benefits Program Improvements

SEC. 731. TRICARE PHARMACY PROGRAM COST-SHARE REQUIREMENTS.

Paragraph (6) of section 1074g(a) of title 10, United States Code,
is amended to read as follows:
``(6)(A) The Secretary, in regulations prescribed under subsection
(g), may establish cost-sharing requirements (which may be established
as a percentage or fixed dollar amount) under the pharmacy benefits
program for generic, formulary, and nonformulary agents.
``(B)(i) With respect to agents available through the national
mail-order pharmacy program, the Secretary of Defense may not establish
requirements for cost sharing for generic and formulary agents that are
in excess of cost sharing requirements for generic and formulary agents
available through facilities of the uniformed services.
``(ii) With respect to agents available through retail pharmacies,
the Secretary of Defense may not establish cost sharing in excess of--
``(I) $6 for generic agents;
``(II) $16 for formulary agents; and
``(III) $22 for nonformulary agents.
``(iii) The cost sharing requirements of this subparagraph shall be
in effect during the period beginning 90 days after the date of the
enactment of the National Defense Authorization Act for Fiscal Year
2007 and ending on December 31, 2007.''.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Subtitle B--Acquisition Policy and Management

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Limitations

Subtitle D--United States Defense Industrial Base Provisions

Sec. 831. Protection of strategic materials critical to national
security.
Sec. 832. Strategic Materials Protection Board.

Subtitle A--Provisions Relating to Major Defense Acquisition Programs

SEC. 801. REQUIREMENTS MANAGEMENT CERTIFICATION TRAINING PROGRAM.

(a) Training Program.--
(1) Requirement.--The Under Secretary of Defense for
Acquisition, Technology, and Logistics, in consultation with
the Defense Acquisition University, shall develop a training
program to certify civilian and military personnel of the
Department of Defense with responsibility for generating
requirements for major defense acquisition programs (as defined
in section 2430 of title 10, United States Code).
(2) Competency and other requirements.--The Under Secretary
shall establish competency requirements for the personnel
undergoing the training program. The Under Secretary shall
define the target population for such training program by
identifying which civilian and military personnel should have
responsibility for generating requirements. The Under Secretary
also may establish other training programs for personnel not
subject to chapter 87 of title 10, United States Code, and who
contribute significantly to other types of acquisitions by the
Department of Defense.
(3) Matters covered.--At a minimum, the training program
shall, with respect to a major defense acquisition program--
(A) provide instruction on the interrelationship
among the requirements generation process, the budget
process, and the acquisition process within the
Department of Defense for such a program;
(B) stress the importance of generating
requirements for such a program that result in joint
applications to the maximum extent possible;
(C) provide instruction on the effects of
introducing new requirements for such a program--
(i) both before and after the commencement
of system development and demonstration; and
(ii) during initial operational test and
evaluation;
(D) ensure that requirements for such a program are
derived primarily from capability shortfalls in the
program identified by a commander of a combatant
command;
(E) ensure that requirements for such a program are
informed by a sound analysis of alternatives, by
realistic technical assessments based on technology
readiness levels, and by fiscal guidance, including
consultation with production engineers on the cost,
schedule and technical feasibility of the requirements;
(F) ensure that, for the introduction of any
changes to requirements for such a program, an
engineering feasibility assessment that weighs
technology readiness, integration, cost, and schedule
impacts is conducted after Milestone B approval at the
latest, and before Milestone B approval to the maximum
extent practicable;
(G) stress the importance of introducing
requirements for such a program that are
technologically mature, feasible, and achievable
without schedule risk; and
(H) stress the importance of stable requirements
for such a program to provide the baseline for
successful execution of the program.
(4) Availability.--The training program shall be made
available on the Internet to ensure the widest dissemination
possible.
(b) Applicability.--Effective on and after September 30, 2007, a
member of the Armed Forces or an employee of the Department of Defense
with authority to generate requirements for a major defense acquisition
program may not continue to participate in the requirements generation
process unless the member or employee successfully completes the
certification training program developed under this section.

SEC. 802. ADDITIONAL REQUIREMENTS RELATING TO TECHNICAL DATA RIGHTS.

(a) Additional Requirements Relating to Technical Data Rights .--
Section 2320 of title 10, United States Code, is amended by adding at
the end the following new subsection:
``(e) Additional Regulations.--(1) Regulations prescribed under
subsection (a) shall ensure, at a minimum, that--
``(A) in the case of a major system that is developed
exclusively with Federal funds, in part with Federal funds and
in part at private expense, or exclusively at private expense,
rights are acquired in full by the United States to technical
data necessary to support competition for contracts required
for sustainment of the system; and
``(B) any contract for a major system includes price and
delivery options for acquiring, at any point during the life
cycle of the system, major elements of technical data not
acquired at the time of initial contract award.
``(2) Regulations prescribed under subsection (a) also shall
establish a standard for acquiring rights in technical data that
supports the purchase of data rights appropriate to minimize life cycle
costs.
``(3) The Under Secretary of Defense for Acquisition, Technology,
and Logistics shall ensure that members of the acquisition workforce
working with any contract in an amount greater than $5,000,000 and
involving the acquisition of rights in technical data be provided
information and formal training sufficient to carry out the regulations
prescribed under subsection (a) to implement this subsection.''.
(b) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall revise
regulations under section 2320 of title 10, United States Code, to
implement subsection (e) of such section (as added by this section).

SEC. 803. STUDY AND REPORT ON REVISIONS TO SELECTED ACQUISITION REPORT
REQUIREMENTS.

(a) Study Requirement.--The Secretary of Defense, acting through
the Under Secretary of Defense for Acquisition, Technology, and
Logistics in coordination with the service acquisition executives of
each military department, shall conduct a study on revisions to
requirements relating to Selected Acquisition Reports, as set forth in
section 2432 of title 10, United States Code.
(b) Matters Covered.--The study required under subsection (a)
shall--
(1) focus on incorporating into the Selected Acquisition
Report those elements of program progress that the Department
of Defense considers most relevant to evaluating the
performance and progress of major defense acquisition programs,
with particular reference to the cost estimates and program
schedule established when a major defense acquisition program
receives Milestone B approval; and
(2) include any recommendations to eliminate elements of
the Selected Acquisition Report that the Department believes
are no longer needed (other than the elimination of any unit
cost information).
(c) Report.--Not later than March 1, 2007, the Secretary shall
submit to the Committees on Armed Services of the Senate and the House
of Representatives a report on the results of the study, including such
recommendations as the Secretary considers appropriate.

SEC. 804. QUARTERLY UPDATES ON IMPLEMENTATION OF ACQUISITION REFORM IN
THE DEPARTMENT OF DEFENSE.

(a) Quarterly Updates Requirement.--Not later than 45 days after
the date of the enactment of this Act, and on the first day of each
calendar quarter thereafter, the Secretary of Defense shall provide an
update to the Committees on Armed Services of the Senate and the House
of Representatives on the implementation of plans to reform the
acquisition system in the Department of Defense.
(b) Matters Covered.--Each update provided under subsection (a)
shall cover the implementation of reforms of the processes for
acquisition, including generation of requirements, award of contracts,
and financial management. At a minimum, the updates shall take into
account the recommendations made by the following:
(1) The Defense Acquisition Performance Assessment Panel.
(2) The Defense Science Board Summer Study on
Transformation, issued in February 2006.
(3) The Beyond Goldwater-Nichols Study of the Center for
Strategic and International Studies.
(4) The Quadrennial Defense Review, issued February 6,
2006.
(5) The Committee Defense Review of the Committee on Armed
Services of the House of Representatives (when available).
(c) Recommendations.--Each report submitted under subsection (a)
shall include such recommendations as the Secretary considers
appropriate, and implementation plans for the recommendations.
(d) Termination of Report Requirement.--The requirement to submit
reports under subsection (a) shall terminate on the first day of the
calendar quarter following the first calendar quarter in which the
Selected Acquisition Report submitted to Congress under section 2432 of
title 10, United States Code, does not indicate that there has been an
increase by a percentage equal to or greater than the significant cost
growth threshold or the critical cost growth threshold in any major
defense acquisition program (as such thresholds are defined in section
2433(a) of such title).

SEC. 805. ESTABLISHMENT OF DEFENSE CHALLENGE PROCESS FOR CRITICAL COST
GROWTH THRESHOLD BREACHES IN MAJOR DEFENSE ACQUISITION
PROGRAMS.

(a) Preliminary Evaluation of Challenge Proposals for Critical Cost
Breaches.--
(1) Submission of challenge proposals.--Section 2359b(c))
of title 10, United States Code, is amended--
(A) in paragraph (1), by striking ``Panel,'' and
all that follows through the end and inserting the
following: ``Panel--
``(A) through the unsolicited proposal process;
``(B) in response to a broad agency announcement; or
``(C) in response to a solicitation issued as a result of a
critical cost growth threshold breach (as defined in paragraph
(4)).'';
(B) by redesignating paragraphs (4), (5), and (6)
as paragraphs (5), (7), and (8), respectively;
(C) by inserting after paragraph (3) the following
new paragraph (4):
``(4)(A) If the program acquisition unit cost or
procurement unit cost of a major defense acquisition program
increases by a percentage equal to or greater than the critical
cost growth threshold for the program, as determined by the
Secretary concerned under section 2433(d) of this title (in
this section referred to as a `critical cost growth threshold
breach'), the Under Secretary shall issue a solicitation for
challenge proposals that would result in improvements in
affordability of the program. The solicitation shall
specifically identify (i) the cost and schedule variances, and
(ii) the design, engineering, manufacturing, or technology
integration issues, contributing to the breach.
``(B) A solicitation referred to in subparagraph (A) shall
be made public before the end of the 14-day period beginning on
the day the Selected Acquisition Report containing the
information described in section 2433(g) of this title is
required to be submitted under section 2432(f) of this title.
``(C) A solicitation referred to in subparagraph (A) shall
require any challenge proposals responding to the solicitation
to be submitted within 30 days after the date of issuance of
the solicitation.'';
(D) in paragraph (5) (as so redesignated) in the
matter preceding subparagraph (A)--
(i) by striking ``or submitted'' and
inserting ``submitted''; and
(ii) by inserting after ``paragraph (2),''
the following: ``or submitted in response to a
solicitation issued as a result of a critical
cost growth threshold breach''; and
(E) by inserting after paragraph (5) (as so
redesignated) the following new paragraph (6):
``(6) A panel shall complete a preliminary evaluation of
challenge proposals submitted in response to a solicitation
issued as a result of a critical cost growth threshold breach
before the end of the 60-day period beginning on the day the
Selected Acquisition Report referred to in paragraph (4)(B) is
submitted to Congress and shall inform the Secretary of Defense
of the results of the evaluation to aid in the completion of
the Secretary's certification under section 2433(e)(2)(B) of
this title.''.
(b) Action Upon Favorable Full Review and Evaluation of Challenge
Proposals for Critical Cost Breaches.--Section 2359b(e) of such title
is amended by adding at the end the following new paragraph:
``(3) In the case of a challenge proposal referred to in
paragraph (1) that was submitted in response to a solicitation
issued as a result of a critical cost growth threshold breach,
the costs of the proposal shall be borne by the major defense
acquisition program with respect to which the breach
occurred.''.
(c) Action Upon Unfavorable Full Review and Evaluation of Challenge
Proposals for Critical Cost Breaches.--Section 2359b of such title, as
amended by section 213, is further amended--
(1) by redesignating subsections (f), (g), (h), and (i) as
subsections (g), (h), (i), and (j), respectively; and
(2) by inserting after subsection (e) the following new
subsection (f):
``(f) Action Upon Unfavorable Full Review and Evaluation of
Critical Cost Breach Solicitations.--In the case of a challenge
proposal that was submitted in response to a solicitation issued as a
result of a critical cost growth threshold breach and that is not
determined under a full review and evaluation to satisfy each of the
criteria specified in subsection (c)(5), the following provisions
apply:
``(1) The office carrying out the full review and
evaluation shall provide to the Panel that conducted the
preliminary evaluation a statement containing a summary of the
rationale for the unfavorable evaluation.
``(2) If the Panel disagrees with the rationale provided
under paragraph (1), the Panel may return the challenge
proposal to the office for further consideration.
``(3) The full review and evaluation, including a further
consideration of the review and evaluation under paragraph (2),
shall be completed not later than the expiration of the 60-day
period beginning on the date of completion of the preliminary
evaluation of the proposal by a Panel under subsection (c).
``(4) After a full review and evaluation of all such
challenge proposals submitted for such review and evaluation
are completed, including further consideration under paragraph
(2), the Under Secretary shall submit to the congressional
defense committees a report containing a list of each challenge
proposal with an unfavorable evaluation, including an
identification of each such challenge proposal returned to an
office for further consideration, and a detailed rationale for
the unfavorable evaluations upon both initial and further
consideration (if any). Such report shall be submitted not
later than the expiration of the 60-day period beginning on the
date of completion of the last preliminary evaluation of the
proposals by a Panel under subsection (c).''.
(d) Amendments to Unit Cost Reports Provisions.--
(1) Additional assessment required upon breach of critical
cost growth threshold.--Section 2433(e)(2)(A) of title 10,
United States Code, is amended--
(A) by striking ``and'' at the end of clause (ii);
(B) by inserting ``and'' at the end of clause
(iii); and
(C) by adding at the end the following new clause:
``(iv) the availability of components, subsystems,
or systems that may result in near-term improvements in
affordability of the program, as identified under the
Defense Acquisition Challenge Program through a
solicitation issued pursuant to section 2359b(c)(1)(C)
of this title;''.
(2) Additional certification required upon breach of
critical cost growth threshold.--Section 2433(e)(2)(B) of such
title is amended--
(A) by redesignating clauses (iii) and (iv) as
clauses (iv) and (v), respectively; and
(B) by inserting after clause (ii) the following
new clause (iii):
``(iii) the Panel conducting preliminary evaluation
of challenge proposals submitted in response to the
solicitation issued under the Defense Acquisition
Challenge Program pursuant to section 2359b(c)(1)(C) of
this title has identified no promising proposals
meriting full review and evaluation;''.
(3) Additional information in certain report required.--
Section 2433(g)(1)(P)(vi) of such title is amended by inserting
after ``of the program'' the following: ``and design,
engineering, manufacturing, or technology integration issues''.
(e) Additional Conforming Amendments.--Section 2359b of such title
is further amended--
(1) in subsection (c)(8), as redesignated by subsection
(a), by striking ``paragraph (4)'' and inserting ``paragraph
(5)'';
(2) in subsection (d)(1), by striking ``subsection (c)(6)''
and inserting ``subsection (c)(8)'';
(3) in subsection (d)(2), by striking ``subsection (c)(4)''
and inserting ``subsection (c)(5)''; and
(4) in subsection (e)(1), by striking ``subsection (c)(4)''
and inserting ``subsection (c)(5)''.

SEC. 806. MARKET RESEARCH REQUIRED FOR MAJOR DEFENSE ACQUISITION
PROGRAMS BEFORE PROCEEDING TO MILESTONE B.

Section 2366a(a) of title 10, United States Code, is amended--
(1) by redesignating paragraphs (1) through (7) as
paragraphs (2) through (8), respectively; and
(2) by inserting before paragraph (2) (as so redesignated)
the following new paragraph (1):
``(1) market research has been conducted prior to
technology development to reduce duplication of existing
technology and products;''.

Subtitle B--Acquisition Policy and Management

SEC. 811. APPLICABILITY OF STATUTORY EXECUTIVE COMPENSATION CAP MADE
PROSPECTIVE.

(a) Prospective Applicability of Executive Compensation Cap.--
Section 808(e)(2) of Public Law 105-85 (41 U.S.C. 435 note; 111 Stat.
1838) is amended by striking ``before, on,'' and inserting ``on''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply as if included in Public Law 105-85 as enacted.

SEC. 812. PROHIBITION ON PROCUREMENT FROM BENEFICIARIES OF FOREIGN
SUBSIDIES.

(a) Prohibition.--The Secretary of Defense may not enter into a
contract for the procurement of goods or services from any foreign
person to which the government of a foreign country that is a member of
the World Trade Organization has provided a subsidy if--
(1) the United States has requested consultations with that
foreign country under the Agreement on Subsidies and
Countervailing Measures on the basis that the subsidy is a
prohibited subsidy under that Agreement; and
(2) either--
(A) the issue before the World Trade Organization
has not been resolved; or
(B) the World Trade Organization has ruled that the
subsidy provided by the foreign country is a prohibited
subsidy under the Agreement on Subsidies and
Countervailing Measures.
(b) Joint Ventures.--The prohibition under subsection (a) with
respect to a foreign person also applies to any joint venture,
cooperative organization, partnership, or contracting team of which
that foreign person is a member.
(c) Subcontracts and Task Orders.--The prohibition under subsection
(a) with respect to a contract also applies to any subcontracts at any
tier entered into under the contract and any task orders at any tier
issued under the contract.
(d) Definitions.--In this section:
(1) The term ``Agreement on Subsidies and Countervailing
Measures'' means the agreement described in section 101(d)(12)
of the Uruguay Round Agreements Act (19 U.S.C. 3501(d)(12)).
(2) The term ``foreign person'' means--
(A) an individual who is not a United States person
or an alien lawfully admitted for permanent residence
into the United States; or
(B) a corporation, partnership, or other
nongovernmental entity which is not a United States
person.
(3) The term ``United States person'' means--
(A) a natural person who is a citizen of the United
States or who owes permanent allegiance to the United
States; and
(B) a corporation or other legal entity which is
organized under the laws of the United States, any
State or territory thereof, or the District of
Columbia, if natural persons described in subparagraph
(A) own, directly or indirectly, more than 50 percent
of the outstanding capital stock or other beneficial
interest in such legal entity.
(e) Applicability.--
(1) Programs with milestone b approval not covered.--The
prohibition under subsection (a) shall not apply to any
contract under a major defense acquisition program that has
received Milestone B approval as of the date of the enactment
of this Act.
(2) Definitions.--In this subsection:
(A) The term ``major defense acquisition program''
means a Department of Defense acquisition program that
is a major defense acquisition program for purposes of
section 2430 of title 10, United States Code.
(B) The term ``Milestone B approval'' has the
meaning provided that term in section 2366(e)(7) of
such title.

SEC. 813. TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT OF DEFENSE
INFORMATION TECHNOLOGY BUSINESS SYSTEMS.

(a) Milestone a Limitation.--The Department of Defense executive or
entity that is the milestone decision authority for an information
system described in subsection (c) may not provide Milestone A approval
for the system unless, as part of the decision process for such
approval, that authority determines that the system will achieve
initial operational capability within five years of such approval.
(b) Initial Operational Capability Limitation.--Funds appropriated
or otherwise available to the Department of Defense may not be
obligated or expended for an information system described in subsection
(c) if the system, having received Milestone A approval, has not
achieved initial operational capability within five years of the date
of such approval.
(c) Covered Systems.--An information system described in this
subsection is any Department of Defense information technology business
system that is not a national security system, as defined in 3542(b)(2)
of title 44, United States Code.
(d) Applicability to Existing Programs.--
(1) Waiver authority for existing programs in
development.--The Secretary of Defense may waive the
applicability of subsection (b) in the case of a program
described in subsection (c) that as of the date of the
enactment of this Act has received Milestone A approval but has
not as of such date achieved initial operational capability.
(2) Inapplicability to programs through development.--This
section does not apply to an information system that achieved
initial operational capability before the date of the enactment
of this Act.
(e) Definitions.--In this section:
(1) Milestone decision authority.--The term ``milestone
decision authority'' has the meaning given that term in
Department of Defense Instruction 5000.2, dated May 12, 2003.
(2) Milestone a.--The term ``Milestone A'' has the meaning
given that term in Department of Defense Instruction 5000.2,
dated May 12, 2003.

SEC. 814. ESTABLISHMENT OF PANEL ON CONTRACTING INTEGRITY.

(a) Establishment.--
(1) In general.--The Secretary of Defense shall establish a
panel to be known as the ``Panel on Contracting Integrity''.
(2) Composition.--The panel shall be composed of the
following:
(A) The Deputy Secretary of Defense, who shall be
the chairman of the panel.
(B) The service acquisition executive of each
military department.
(C) The Inspector General of the Department of
Defense.
(D) The Director of the Defense Logistics Agency.
(E) The Director of the Defense Contract Management
Agency.
(F) The Director of the Defense Contract Audit
Agency.
(G) Such other members as determined appropriate by
the Secretary of Defense.
(b) Duties.--In addition to other matters assigned to it by the
Secretary of Defense, the panel shall--
(1) conduct reviews of progress made by the Department of
Defense to eliminate areas of vulnerability of the defense
contracting system that allow fraud, waste, and abuse to occur;
(2) review the report by the Comptroller General required
by section 841 of the National Defense Authorization Act for
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3389), relating
to areas of vulnerability of Department of Defense contracts to
fraud, waste, and abuse; and
(3) recommend changes in law, regulations, and policy that
it determines necessary to eliminate such areas of
vulnerability.
(c) Meetings.--The panel shall meet as determined necessary by the
Secretary of Defense but not less often than once every six months.
(d) Report.--
(1) Requirement.--The panel shall prepare and submit to the
congressional defense committees an annual report on its
activities. The report shall contain a summary of its findings
and recommendations for the year covered by the report.
(2) First report.--The first report under this subsection
shall be submitted not later than 180 days after the date of
the enactment of this Act and shall contain an examination of
the current structure in the Department of Defense for
personnel accountability relating to the contracting system and
recommendations for any changes needed to the system of
administrative safeguards and disciplinary actions to ensure
accountability at the appropriate level for any violations of
appropriate standards of behavior in contracting.

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Limitations

SEC. 821. EXTENSION OF SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

Section 804 of the National Defense Authorization Act for Fiscal
Year 2004 (Public Law 108-136; 117 Stat. 1541) is amended in subsection
(d) by striking ``September 30, 2006'' and inserting ``September 30,
2007''.

SEC. 822. LIMITATION ON CONTRACTS FOR THE ACQUISITION OF CERTAIN
SERVICES.

(a) Limitation.--Except as provided in subsection (b), the
Secretary of Defense may not enter into a contract for covered services
if the amount of the contract--
(1) exceeds 75 percent of the estimated value of any asset
required for the provision of services under the contract, as
of the date on which contract performance begins; or
(2) exceeds $150,000,000 in payments over the life of the
contract assuming all options to extend the contract are
exercised.
(b) Waiver.--The Secretary of Defense may waive subsection (a) with
respect to a contract for covered services if the Secretary--
(1) determines that a waiver is necessary for national
security purposes; and
(2) provides to the congressional defense committees an
economic analysis as described in subsection (c) at least 30
days before the waiver takes effect.
(c) Economic Analysis.--The economic analysis provided under
subsection (b) shall include, at a minimum, the following:
(1) A clear explanation of the need for the contract for
covered services.
(2) An examination of at least two alternatives for
fulfilling the requirements that the contract is meant to
fulfill, including the following with respect to each
alternative:
(A) A rationale for including the alternative.
(B) A cost estimate of the alternative and an
analysis of the quality of each cost estimate.
(C) A discussion of the benefits to be realized
from the alternative.
(D) A best value determination of each alternative
and a detailed explanation of the life-cycle cost
calculations used in the determination.
(d) Covered Services.--The limitation in subsection (a) applies to
any contract for the following types of services:
(1) Operation, maintenance, or support of facilities or
installations, or construction of facilities needed for
performing the contract.
(2) Maintenance or modification of aircraft, ships,
vehicles, or other highly complex military equipment, or the
provision of aircraft, ships, vehicles, or other highly complex
military equipment needed for performing the contract.
(3) Specialized training necessitating high quality
instructor skills (for example, pilot and air crew members;
foreign language training).
(4) Base services (for example, ground maintenance, in-
plane refueling; bus transportation; refuse collection and
disposal).

SEC. 823. USE OF FEDERAL SUPPLY SCHEDULES BY STATE AND LOCAL
GOVERNMENTS FOR GOODS AND SERVICES FOR RECOVERY FROM
NATURAL DISASTERS, TERRORISM, OR NUCLEAR, BIOLOGICAL,
CHEMICAL, OR RADIOLOGICAL ATTACK.

(a) Authority to Use Supply Schedules for Certain Goods and
Services.--Section 502 of title 40, United States Code, is amended by
adding at the end the following new subsection:
``(d) Use of Supply Schedules for Certain Goods and Services.--
``(1) In general.--The Administrator may provide for the
use by State or local governments of Federal supply schedules
of the General Services Administration for goods or services
that are to be used to facilitate recovery from a major
disaster declared by the President under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.) or to facilitate recovery from terrorism or nuclear,
biological, chemical, or radiological attack.
``(2) Determination by secretary of homeland security.--The
Secretary of Homeland Security shall determine which goods and
services qualify as goods and services described in paragraph
(1) before the Administrator provides for the use of the
Federal supply schedule relating to such goods and services.
``(3) Voluntary use.--In the case of the use by a State or
local government of a Federal supply schedule pursuant to
paragraph (1), participation by a firm that sells to the
Federal Government through the supply schedule shall be
voluntary with respect to a sale to the State or local
government through such supply schedule.
``(4) Definitions.--The definitions in subsection (c)(3)
shall apply for purposes of this subsection.''.
(b) Procedures.--Not later than 30 days after the date of the
enactment of this Act, the Administrator of General Services shall
establish procedures to implement section 502(d) of title 40, United
States Code (as added by subsection (a)).

SEC. 824. WAIVERS TO EXTEND TASK ORDER CONTRACTS FOR ADVISORY AND
ASSISTANCE SERVICES.

(a) Defense Contracts.--Section 2304b(b) of title 10, United States
Code, is amended--
(1) by inserting ``(1)'' before ``The period'';
(2) by inserting before the period the following: ``or a
waiver is issued under paragraph (2)''; and
(3) by adding at the end the following new paragraph:
``(2) The head of an agency may issue a waiver to extend a
task order contract entered into under this section for a
period not exceeding 10 years, through five one-year options,
if the head of the agency determines in writing--
``(A) that the contract provides engineering or
technical services of such a unique and substantial
technical nature that award of a new contract would be
harmful to the continuity of the program for which the
services are performed;
``(B) that award of a new contract would create a
large disruption in services provided to the Department
of Defense; and
``(C) the Department of Defense would endure
program risk during critical program stages due to loss
of program corporate knowledge of ongoing program
activities.''.
(b) Civilian Agency Contracts.--Section 303I(b) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253i) is
amended--
(1) by inserting ``(1)'' before ``The period'';
(2) by inserting before the period the following: ``or a
waiver is issued under paragraph (2)''; and
(3) by adding at the end the following new paragraph:
``(2) An executive agency may issue a waiver to extend a task order
contract entered into under this section for a period not exceeding 10
years, through five one-year options, if the head of the agency
determines in writing--
``(A) that the contract provides engineering or technical
services of such a unique and substantial technical nature that
award of a new contract would be harmful to the continuity of
the program for which the services are performed;
``(B) that award of a new contract would create a large
disruption in services provided to the executive agency; and
``(C) the executive agency would endure program risk during
critical program stages due to loss of program corporate
knowledge of ongoing program activities.''.
(c) Report.--Not later than April 1, 2007, the Secretary of Defense
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives a report on advisory and assistance services.
The report shall include the following information:
(1) The methods used by the Department of Defense to
identify a contract as an advisory and assistance services
contract, as defined in section 2304b of title 10, United
States Code.
(2) The number of such contracts awarded by the Department
during the five-year period preceding the date of enactment of
this Act.
(3) The average annual expenditures by the Department for
such contracts.
(4) The average length of such contracts.
(5) The number of such contracts recompeted and awarded to
the previous award winner.
(6) The number of contractors performing such contracts
that previously qualified as a small business but no longer
qualify as a small business for a recompetition.
(7) The number of such contracts required for a period of
greater than five years and a justification of why those
services are required for greater than five years, including
the rationale for not performing the services inside the
Department of Defense.
(8) The percentage of such contracts awarded by the
Department during the five-year period preceding the date of
the enactment of this Act for assistance in the introduction
and transfer of engineering and technical knowledge for fielded
systems, equipment, and components.
(9) The actions taken by the Department to prevent
organizational conflicts of interest in the use of such
contracts.
(d) Prohibition on Use of Authority by Department of Defense If
Report Not Submitted.--The head of an agency may not issue a waiver
under 2304b(b)(2) of title 10, United States Code, as added by
subsection (a), if the report required by subsection (c) is not
submitted by the date set forth in that subsection.

SEC. 825. ENHANCED ACCESS FOR SMALL BUSINESS.

Section 9(a) of the Contract Disputes Act of 1978 (41 U.S.C. 608)
is amended by striking the period at the end of the first sentence and
inserting the following: ``or, in the case of a small business concern
(as defined in the Small Business Act and regulations under that Act),
$150,000 or less.''.

SEC. 826. PROCUREMENT GOAL FOR HISPANIC-SERVING INSTITUTIONS.

Section 2323 of title 10, United States Code, is amended--
(1) in subsection (a)(1)--
(A) by striking ``and'' at the end of subparagraph
(B);
(B) by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(D) Hispanic-serving institutions, as designated
by the Department of Education.'';
(2) in subsection (a)(2)--
(A) by inserting after ``historically Black
colleges and universities'' the following: ``,
Hispanic-serving institutions,''; and
(B) by inserting after ``such colleges and
universities'' the following: ``and institutions'';
(3) in subsection (c)(1), by inserting after ``historically
Black colleges and universities'' the following: ``, Hispanic-
serving institutions,''; and
(4) in subsection (c)(3), by inserting after ``historically
Black colleges and universities'' the following: ``, to
Hispanic-serving institutions,''.

SEC. 827. PROHIBITION ON DEFENSE CONTRACTORS REQUIRING LICENSES OR FEES
FOR USE OF MILITARY LIKENESSES AND DESIGNATIONS.

The Secretary of Defense shall require that any contract entered
into or renewed by the Department of Defense include a provision
prohibiting the contractor from requiring toy and hobby manufacturers,
distributors, or merchants to obtain licenses from or pay fees to the
contractor for the use of military likenesses or designations on items
provided under the contract.

Subtitle D--United States Defense Industrial Base Provisions

SEC. 831. PROTECTION OF STRATEGIC MATERIALS CRITICAL TO NATIONAL
SECURITY.

(a) Requirement to Buy From American Sources.--
(1) In general.--Chapter 148 of title 10, United States
Code, is amended by inserting after section 2533a the following
new section:
``Sec. 2533b. Requirement to buy strategic materials critical to
national security from American sources; exceptions
``(a) Requirement.--Except as provided in subsections (c) through
(h), funds appropriated or otherwise available to the Department of
Defense may not be used for the procurement of an item described in
subsection (b) if the item is not reprocessed, reused, or produced in
the United States.
``(b) Covered Items.--An item referred to in subsection (a) is any
of the following:
``(1) A specialty metal.
``(2) An item critical to national security, as determined
by the Strategic Materials Protection Board.
``(c) Availability Exception.--Subsection (a) does not apply to the
extent that the Secretary of Defense or the Secretary of the military
department concerned determines that satisfactory quality and
sufficient quantity of any item described in subsection (b) cannot be
procured as and when needed.
``(d) Exception for Certain Procurements.--Subsection (a) does not
apply to the following:
``(1) Procurements outside the United States in support of
combat operations or in support of contingency operations.
``(2) Procurements by vessels in foreign waters for use of
the item.
``(3) Procurements for which the use of procedures other
than competitive procedures has been approved on the basis of
section 2304(c)(2) of this title, relating to unusual and
compelling urgency of need.
``(e) Exception Relating to Agreements With Foreign Governments.--
Subsection (a) does not preclude the procurement of an item described
in subsection (b) if--
``(1) the procurement is necessary--
``(A) to comply with agreements with foreign
governments requiring the United States to purchase
supplies from foreign sources for the purposes of
offsetting sales made by the United States Government
or United States firms under approved programs serving
defense requirements; or
``(B) in furtherance of agreements with foreign
governments in which both such governments agree to
remove barriers to purchases of supplies produced in
the other country or services performed by sources of
the other country;
``(2) any such agreement with a foreign government
complies, where applicable, with the requirements of section 36
of the Arms Export Control Act (22 U.S.C. 2776) and with
section 2457 of this title; and
``(3) the item is grown, produced, or manufactured in the
United States or in the country from which it is procured.
``(f) Exception for Commissaries, Exchanges, and Other
Nonappropriated Fund Instrumentalities.--Subsection (a) does not apply
to items purchased for resale purposes in commissaries, exchanges, and
nonappropriated fund instrumentalities operated by the Department of
Defense.
``(g) Exception for Small Purchases.--Subsection (a) does not apply
to procurements in amounts not greater than the simplified acquisition
threshold referred to in section 2304(g) of this title.
``(h) Applicability to Procurements of Commercial Items.--This
section applies to procurements of commercial items notwithstanding
section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
430).
``(i) Applicability to Subcontracts.--This section applies to
subcontracts at any tier under a prime contract.
``(j) Applicability to Noncompliant Components.--A procurement
subject to subsection (a) shall not be considered to be in compliance
with subsection (a) if noncompliant components are delivered under the
procurement without charge to the Federal Government. In this
subsection, the term `noncompliant component' means a component that is
not reprocessed, reused, or produced in the United States.
``(k) Specialty Metal Defined.--In this section, the term
`specialty metal' means any of the following:
``(1) Steel--
``(A) with a maximum alloy content exceeding one or
more of the following limits: manganese, 1.65 percent;
silicon, 0.60 percent; or copper, 0.60 percent; or
``(B) containing more than 0.25 percent of any of
the following elements: aluminum, chromium, cobalt,
columbium, molybdenum, nickel, titanium, tungsten, or
vanadium.
``(2) Metal alloys consisting of nickel, iron-nickel, and
cobalt base alloys containing a total of other alloying metals
(except iron) in excess of 10 percent.
``(3) Titanium and titanium alloys.
``(4) Zirconium and zirconium base alloys.
``(5) A metal determined by the Strategic Materials
Protection Board (established under section 187 of this title)
to be a specialty metal critical to national security.
``(l) Additional Definitions.--In this section:
``(1) The term `United States' includes possessions of the
United States.
``(2) The term `micropurchase' means a procurement in an
amount not greater than the micropurchase threshold, as defined
by section 32(f) of the Office of Federal Procurement Policy
Act (41 U.S.C. 428).
``(3) The term `component' has the meaning provided in
section 4 of such Act (41 U.S.C. 403).''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2533b. Requirement to buy strategic materials critical to national
security from American sources;
exceptions.''.
(3) Conforming amendments.--Section 2533a of title 10,
United States Code, is amended--
(A) by striking paragraph (2) of subsection (b);
(B) in subsection (c), by striking ``or specialty
metals (including stainless steel flatware)''; and
(C) in subsection (e)--
(i) by striking ``Specialty Metals And'' in
the heading; and
(ii) by striking ``specialty metals or''.
(4) Effective dates.--
(A) Section 2533b of title 10, United States Code,
as added by paragraph (1), shall apply with respect to
contracts entered into after the date occurring 30 days
after the date of the enactment of this Act.
(B) The amendments made by paragraph (3) shall take
effect on the date occurring 30 days after the date of
the enactment of this Act.
(b) One-Time Inadvertent Micropurchase Waiver of Specialty Metals
Domestic Source Requirement.--
(1) Notice of noncompliance.--In the case of a contract
with the Department of Defense in effect before the date of the
enactment of this Act with respect to which the contracting
officer for the contract determines the contractor is not in
compliance with section 2533a of title 10, United States Code
(as in effect before such date of enactment) with respect to
specialty metals, the contracting officer shall--
(A) post a notice on FedBizOpps.gov that the
contractor is not in compliance with such section;
(B) notify the contractor (and any subcontractor
under the prime contract that is also noncompliant) in
writing that the contractor (or subcontractor) is not
in compliance with such section; and
(C) require the contractor and any subcontractor
notified under subparagraph (B) to submit to the
contracting officer a compliance plan for becoming
compliant with such section.
(2) Waiver authority.--In the case of a contract described
in paragraph (1), the contracting officer for the contract may
waive the applicability to the contract of section 2533a of
title 10, United States Code (as in effect before such date of
enactment) with respect to specialty metals if--
(A) the procurement is a micropurchase of
components (whether in a prime contract or a
subcontract under such contract) and the aggregate
value of all such procurements in the prime contract
and all the subcontracts under such contract does not
exceed 1 percent of the amount of the contract or
$100,000, whichever is less;
(B) the contracting officer determines in writing
that the contractor was and continues to be
inadvertently not in compliance with such section with
respect to such metals and the contractor has submitted
a compliance plan under paragraph (1)(C); and
(C) the Secretary of the military department
concerned approves the waiver.
(3) Notice.--Not later than 15 days after a contracting
officer makes a determination under paragraph (2)(B) with
respect to a contract, the contracting officer shall post a
notice on FedBizOpps.gov that a waiver has been granted for the
contract under this subsection. The notice shall include
information about the applicability of section 1001 of title
18, United States Code (relating to criminal penalties for
false statements).
(4) Challenge period.--
(A) During the 15-day period beginning on the date
of the posting of a notice of a waiver under paragraph
(3) for a contract (in this subsection referred to as
the ``challenge period''), the contracting officer
shall accept challenges submitted with respect to the
contract.
(B) For purposes of this paragraph, a challenge,
with respect to a contract for which a waiver has been
granted under this subsection, is a submission of
information by an entity (referred to as a
``challenger'' in this section) stating that the
challenger can provide the specialty metals needed for
performance of the contract and can certify in writing
that the metals are reprocessed, reused, or produced in
the United States. The information shall be submitted
to the contracting officer in such form and manner as
may be prescribed by the Under Secretary of Defense for
Acquisition, Technology, and Logistics.
(5) Determination by contracting officer.--During the 15-
day period beginning on the day after the end of the challenge
period with respect to a contract, if any challenge has been
submitted to the contracting officer, the contracting officer
shall make a determination regarding whether the challenger can
provide the specialty metals for the components concerned in
sufficient quantity, of satisfactory quality, within a
reasonable time, and at a cost that is not unreasonable.
(6) Rescission of waiver.--(A) Except as provided in
subparagraph (B), if the determination under paragraph (5) is
in the affirmative, the contracting officer shall--
(i) rescind the waiver granted with respect to the
contract under this subsection; and
(ii) require the contractor to comply with
subsection (a) by purchasing specialty metals from the
challenger.
(B) If the contracting officer makes a determination in the
affirmative under paragraph (5) with respect to two or more
challengers, the contracting officer shall select or require
the contractor to select, in such manner as the contracting
officer considers appropriate, the challenger to provide
specialty metals under the contract.
(7) Definitions.--In this subsection:
(A) The term ``micropurchase'' means a procurement
in an amount not greater than the micropurchase
threshold, as defined by section 32(f) of the Office of
Federal Procurement Policy Act (41 U.S.C. 428).
(B) The term ``component'' has the meaning provided
in section 4 of such Act (41 U.S.C. 403).
(C) The term ``FedBizOpps.gov'' means the website
maintained by the General Services Administration known
as FedBizOpps.gov (or any successor site).
(8) Termination of waiver authority.--A contracting officer
may exercise the waiver authority under this subsection only
after the date of the enactment of this Act and before July 1,
2008.

SEC. 832. STRATEGIC MATERIALS PROTECTION BOARD.

(a) In General.--Chapter 7 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 187. Strategic Materials Protection Board
``(a) Establishment.--(1) The Secretary of Defense shall establish
a Strategic Materials Protection Board.
``(2) The Board shall be composed of the following:
``(A) The Secretary of Defense, who shall be the chairman
of the Board.
``(B) The Under Secretary of Defense for Acquisition,
Technology, and Logistics.
``(C) The Under Secretary of Defense for Intelligence.
``(D) The Secretary of the Army.
``(E) The Secretary of the Navy.
``(F) The Secretary of the Air Force.
``(b) Duties.--In addition to other matters assigned to it by the
Secretary of Defense, the Board shall--
``(1) determine the need to provide a long term domestic
supply of items designated as critical to national security to
ensure that national defense needs are met;
``(2) analyze the risk associated with each item designated
as critical to national security and the affect on national
defense that the nonavailability of such item from a domestic
source would have;
``(3) recommend a strategy to the President to ensure the
domestic availability of items designated as critical to
national security;
``(4) recommend such other strategies to the President as
the Board considers appropriate to strengthen the industrial
base with respect to items critical to national security; and
``(5) publish, not less frequently than once every two
years, in the Federal Register a list of items determined to be
critical to national security, including a list of specialty
metals determined to be critical to national security for
purposes of section 2533b of this title (and referred to in
section 2533b(l)((1)(5) of such title).
``(c) Meetings.--The Board shall meet as determined necessary by
the Secretary of Defense but not less frequently than once every two
years to--
``(1) determine and publish a list of items critical to
national security as described in subsection (b)(5); and
``(2) review items previously determined by the Board to be
critical to national security, including specialty metals
critical to national security for purposes of section 2533b of
this title, to determine the appropriateness of their
continuing classification as critical to national security.
``(d) Reports.--After each meeting of the Board, the Board shall
prepare and submit to Congress a report containing the results of the
meeting and such recommendations as the Board determines appropriate.
``(e) Removal of Items From List.--The Board may not remove from
the list referred to in subsection (b)(5) an item previously determined
to be critical to national security by the Board until a period of 30
days expires after the Board submits to the congressional defense
committees a written notification of the removal.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``187. Strategic Materials Protection Board.''.
(c) First Meeting of Board.--The first meeting of the Strategic
Materials Protection Board, established by section 187 of title 10,
United States Code (as added by paragraph (1)) shall be not later than
180 days after the date of the enactment of this Act.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Management

Subtitle B--Space Activities

Subtitle C--Chemical Demilitarization Program

Subtitle D--Intelligence-Related Matters

Sec. 931. Repeal of termination of authority of Secretary of Defense to
engage in commercial activities as security
for intelligence collection activities
abroad.

Subtitle A--Department of Defense Management

SEC. 901. STANDARDIZATION OF STATUTORY REFERENCES TO ``NATIONAL
SECURITY SYSTEM'' WITHIN LAWS APPLICABLE TO DEPARTMENT OF
DEFENSE.

(a) Defense Business Systems.--Section 2222(j)(6) of title 10,
United States Code, is amended by striking ``in section 2315 of this
title'' and inserting ``in section 3542(b)(2) of title 44''.
(b) Chief Information Officer Responsibilities.--Section 2223(c)(3)
of such title is amended by striking ``section 11103 of title 40'' and
inserting ``section 3542(b)(2) of title 44''.
(c) Procurement of Automatic Data Processing Equipment and
Services.--The text of section 2315 of such title is amended to read as
follows:
``For purposes of subtitle III of title 40, the term `national
security system', with respect to a telecommunications and information
system operated by the Department of Defense, has the meaning given
that term by section 3542(b)(2) of title 44.''.

SEC. 902. CORRECTION OF REFERENCE TO PREDECESSOR OF DEFENSE INFORMATION
SYSTEMS AGENCY.

Paragraph (1) of section 193(f) of title 10, United States Code, is
amended to read as follows:
``(1) The Defense Information Systems Agency.''.

SEC. 903. ADDITION TO MEMBERSHIP OF SPECIFIED COUNCIL.

Section 179(a) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(5) The commander of the United States Strategic
Command.''.

SEC. 904. CONSOLIDATION AND STANDARDIZATION OF AUTHORITIES RELATING TO
DEPARTMENT OF DEFENSE REGIONAL CENTERS FOR SECURITY
STUDIES.

(a) Basic Authorities for Regional Centers.--
(1) In general.--Section 184 of title 10, United States
Code, is amended to read as follows:
``Sec. 184. Regional Centers for Security Studies
``(a) In General.--The Secretary of Defense shall administer the
Department of Defense Regional Centers for Security Studies in
accordance with this section as international venues for bilateral and
multilateral research, communication, and exchange of ideas involving
military and civilian participants.
``(b) Regional Centers Specified.--(1) A Department of Defense
Regional Center for Security Studies is a Department of Defense
institution that--
``(A) is operated, and designated as such, by the Secretary
of Defense for the study of security issues relating to a
specified geographic region of the world; and
``(B) serves as a forum for bilateral and multilateral
research, communication, and exchange of ideas involving
military and civilian participants.
``(2) The Department of Defense Regional Centers for Security
Studies are the following:
``(A) The George C. Marshall European Center for Security
Studies, established in 1993 and located in Garmisch-
Partenkirchen, Germany.
``(B) The Asia-Pacific Center for Security Studies,
established in 1995 and located in Honolulu, Hawaii.
``(C) The Center for Hemispheric Defense Studies,
established in 1997 and located in Washington, D.C.
``(D) The Africa Center for Strategic Studies, established
in 1999 and located in Washington, D.C.
``(E) The Near East South Asia Center for Strategic
Studies, established in 2000 and located in Washington, D.C.
``(3) No institution or element of the Department of Defense may be
designated as a Department of Defense Regional Center for Security
Studies for purposes of this section, other than the institutions
specified in paragraph (2), except as specifically provided by law
after the date of the enactment of this section.
``(c) Regulations.--The administration of the Regional Centers
under this section shall be carried out under regulations prescribed by
the Secretary.
``(d) Participation.--Participants in activities of the Regional
Centers may include United States military and civilian personnel,
governmental and nongovernmental personnel, and foreign military and
civilian, governmental and nongovernmental personnel.
``(e) Employment and Compensation of Faculty.--At each Regional
Center, the Secretary may, subject to appropriations--
``(1) employ a Director, a Deputy Director, and as many
civilians as professors, instructors, and lecturers as the
Secretary considers necessary; and
``(2) prescribe the compensation of such persons, in
accordance with Federal guidelines.
``(f) Payment of Costs.--(1) Participation in activities of a
Regional Center shall be on a reimbursable basis (or by payment in
advance), except in a case in which reimbursement is waived in
accordance with paragraph (3).
``(2) For a foreign national participant, payment of costs may be
made by the participant, the participant's own government, by a
Department or agency of the United States other than the Department of
Defense, or by a gift or donation on behalf of one or more Regional
Centers accepted under section 2611 of this title on behalf of the
participant's government.
``(3) The Secretary of Defense may waive reimbursement of the costs
of activities of the Regional Centers for foreign military officers and
foreign defense and security civilian government officials from a
developing country if the Secretary determines that attendance of such
personnel without reimbursement is in the national security interest of
the United States. Costs for which reimbursement is waived pursuant to
this paragraph shall be paid from appropriations available to the
Regional Centers.
``(4) Funds accepted for the payment of costs shall be credited to
the appropriation then currently available to the Department of Defense
for the Regional Center that incurred the costs. Funds so credited
shall be merged with the appropriation to which credited and shall be
available to that Regional Center for the same purposes and same period
as the appropriation with which merged.
``(5) Funds available for the payment of personnel expenses under
the Latin American cooperation authority set forth in section 1050 of
this title are also available for the costs of the operation of the
Center for Hemispheric Defense Studies.
``(g) Support to Other Agencies.--The Director of a Regional Center
may enter into agreements with the Secretaries of the military
departments, the heads of the Defense Agencies, and, with the
concurrence of the Secretary of Defense, the heads of other Federal
departments and agencies for the provision of services by that Regional
Center under this section. Any such participating department and agency
shall transfer to the Regional Center funds to pay the full costs of
the services received.
``(h) Annual Report.--Not later than February 1 of each year, the
Secretary of Defense shall submit to the Committee on Armed Services of
the Senate and the Committee on Armed Services of the House of
Representatives a report on the operation of the Regional Centers for
security studies during the preceding fiscal year. The annual report
shall include, for each Regional Center, the following information:
``(1) The status and objectives of the center.
``(2) The budget of the center, including the costs of
operating the center.
``(3) A description of the extent of the international
participation in the programs of the center, including the
costs incurred by the United States for the participation of
each foreign nation.
``(4) A description of the foreign gifts and donations, if
any, accepted under section 2611 of this title.''.
(2) Clerical amendment.--The item relating to such section
in the table of sections at the beginning of chapter 7 of such
title is amended to read as follows:

``184. Regional Centers for Security Studies.''.
(b) Conforming Amendments.--
(1) Employment and compensation authority for civilian
faculty.--Section 1595 of title 10, United States Code, is
amended--
(A) in subsection (c)--
(i) by striking paragraphs (3) and (5); and
(ii) by redesignating paragraphs (4) and
(6) as paragraphs (3) and (4), respectively;
and
(B) by striking subsection (e).
(2) Status of center for hemispheric defense studies.--
Section 2165 of title 10, United States Code, is amended--
(A) in subsection (b)--
(i) by striking paragraph (6); and
(ii) by redesignating paragraph (7) as
paragraph (6); and
(B) by striking subsection (c).

SEC. 905. REDESIGNATION OF THE DEPARTMENT OF THE NAVY AS THE DEPARTMENT
OF THE NAVY AND MARINE CORPS.

(a) Redesignation of Military Department.--The military department
designated as the Department of the Navy is redesignated as the
Department of the Navy and Marine Corps.
(b) Redesignation of Secretary and Other Statutory Offices.--
(1) Secretary.--The position of the Secretary of the Navy
is redesignated as the Secretary of the Navy and Marine Corps.
(2) Other statutory offices.--The positions of the Under
Secretary of the Navy, the four Assistant Secretaries of the
Navy, and the General Counsel of the Department of the Navy are
redesignated as the Under Secretary of the Navy and Marine
Corps, the Assistant Secretaries of the Navy and Marine Corps,
and the General Counsel of the Department of the Navy and
Marine Corps, respectively.
(c) Conforming Amendments to Title 10, United States Code.--
(1) Definition of ``military department''.--Paragraph (8)
of section 101(a) of title 10, United States Code, is amended
to read as follows:
``(8) The term `military department' means the Department
of the Army, the Department of the Navy and Marine Corps, and
the Department of the Air Force.''.
(2) Organization of department.--The text of section 5011
of such title is amended to read as follows: ``The Department
of the Navy and Marine Corps is separately organized under the
Secretary of the Navy and Marine Corps.''.
(3) Position of secretary.--Section 5013(a)(1) of such
title is amended by striking ``There is a Secretary of the
Navy'' and inserting ``There is a Secretary of the Navy and
Marine Corps''.
(4) Chapter headings.--
(A) The heading of chapter 503 of such title is
amended to read as follows:

``CHAPTER 503--DEPARTMENT OF THE NAVY AND MARINE CORPS''.

(B) The heading of chapter 507 of such title is
amended to read as follows:

``CHAPTER 507--COMPOSITION OF THE DEPARTMENT OF THE NAVY AND MARINE
CORPS''.

(5) Other amendments.--
(A) Title 10, United States Code, is amended by
striking ``Department of the Navy'' and ``Secretary of
the Navy'' each place they appear other than as
specified in paragraphs (1), (2), (3), and (4)
(including in section headings, subsection captions,
tables of chapters, and tables of sections) and
inserting ``Department of the Navy and Marine Corps''
and ``Secretary of the Navy and Marine Corps'',
respectively, in each case with the matter inserted to
be in the same typeface and typestyle as the matter
stricken.
(B)(i) Sections 5013(f), 5014(b)(2), 5016(a),
5017(2), 5032(a), and 5042(a) of such title are amended
by striking ``Assistant Secretaries of the Navy'' and
inserting ``Assistant Secretaries of the Navy and
Marine Corps''.
(ii) The heading of section 5016 of such title, and
the item relating to such section in the table of
sections at the beginning of chapter 503 of such title,
are each amended by inserting ``and Marine Corps''
after ``of the Navy'', with the matter inserted in each
case to be in the same typeface and typestyle as the
matter amended.
(d) Title 37, United States Code.--Title 37, United States Code, is
amended by striking ``Department of the Navy'' and ``Secretary of the
Navy'' each place they appear and inserting ``Department of the Navy
and Marine Corps'' and ``Secretary of the Navy and Marine Corps'',
respectively.
(e) Other References.--Any reference in any law other than in title
10 or title 37, United States Code, or in any regulation, document,
record, or other paper of the United States, to the Department of the
Navy shall be considered to be a reference to the Department of the
Navy and Marine Corps. Any such reference to an office specified in
subsection (b)(2) shall be considered to be a reference to that office
as redesignated by that subsection.
(f) Effective Date.--This section and the amendments made by this
section shall take effect on the first day of the first month beginning
more than 60 days after the date of the enactment of this Act.

Subtitle B--Space Activities

SEC. 911. DESIGNATION OF SUCCESSOR ORGANIZATIONS FOR THE DISESTABLISHED
INTERAGENCY GLOBAL POSITIONING EXECUTIVE BOARD.

(a) Successor Organizations.-- Section 8 of the Commercial Space
Transportation Competitiveness Act of 2000 (10 U.S.C. 2281 note) is
amended by striking ``by Congress'' and all that follows and inserting
``for the functions and activities of the following organizations
established pursuant to the national security presidential directive
issued December 8, 2004 (and any successor organization, to the extent
the successor organization performs the functions of the specified
organization):
``(1) The interagency committee known as the National
Space-Based Positioning, Navigation, and Timing Executive
Committee.
``(2) The support office for the committee specified in
paragraph (1) known as the National Space-Based Positioning,
Navigation, and Timing Coordination Office.
``(3) The Federal advisory committee known as the National
Space-Based Positioning, Navigation, and Timing Advisory
Board.''.
(b) Clarification.--Such section is further amended by striking
``interagency funding'' and inserting ``multi-agency funding''.

SEC. 912. EXTENSION OF AUTHORITY FOR PILOT PROGRAM FOR PROVISION OF
SPACE SURVEILLANCE NETWORK SERVICES TO NON-UNITED STATES
GOVERNMENT ENTITIES.

Section 2274(i) of title 10, United States Code, is amended by
striking ``shall be conducted'' and all that follows and inserting
``may be conducted through September 30, 2009.''.

SEC. 913. OPERATIONALLY RESPONSIVE SPACE.

(a) Operationally Responsive Space Program Office.--
(1) Establishment of office.--Section 2273a of title 10,
United States Code, is amended to read as follows:
``Sec. 2273a. Operationally Responsive Space Program Office
``(a) Establishment of Office.--(1) The Secretary of Defense shall
establish within the Department of Defense an office to be known as the
Operationally Responsive Space Program Office.
``(2) The head of the Office shall be the official in the
Department of Defense who is designated by the Secretary of Defense as
the Department of Defense Executive Agent for Space.
``(b) Mission.--The mission of the Office shall be to contribute to
the development of low-cost, rapid reaction payloads, spacelift, and
launch control capabilities in order to fulfill joint military
operational requirements for on-demand space support or reconstitution.
The Office shall manage the program element required under subsection
(g).
``(c) Organization.--The Office shall be organized into integrated
and co-located elements that include the following:
``(1) A science and technology section, which shall perform
the functions specified in subsection (d).
``(2) An operations section, which shall perform the
functions specified in subsection (e).
``(3) An acquisition section, which shall perform the
functions specified in subsection (f).
``(d) Science and Technology.--As directed by the head of the
Office, the science and technology section shall pursue innovative
approaches to the development of capabilities for operationally
responsive space through basic and applied research focused on (but not
limited to) payloads, bus, and launch equipment.
``(e) Operations.--As directed by the head of the Office, the
operations section shall serve as the primary intermediary between the
Office and the combatant commands in order to--
``(1) ascertain the needs of the warfighter; and
``(2) integrate operationally responsive space capabilities into--
``(A) operations plans of the combatant commands;
``(B) techniques, tactics, and procedures of the military
departments; and
``(C) military exercises, demonstrations, and war games.
``(f) Acquisition.--(1) As directed by the head of the Office, the
acquisition section shall undertake the acquisition of systems
necessary to integrate, sustain, and launch assets for operationally
responsive space.
``(2) In the case of any system or subsystem to be acquired by the
Office, the acquisition may be carried out only after the commander of
the United States Strategic Command has validated the system
requirements for the system or subsystem to be acquired.
``(3) The commander of the United States Strategic Command shall
participate in the approval of any acquisition program initiated by the
Office.
``(g) Required Program Element.--(1) The Secretary of Defense shall
ensure that, within budget program elements for space programs of the
Department of Defense--
``(A) that there is a separate, dedicated program element
for operationally responsive national security payloads and
buses of the Department of Defense for space satellites; and
``(B) that programs and activities for such payloads and
buses are planned, programmed, and budgeted for through that
program element.
``(2) In this subsection, the term `operationally responsive', with
respect to a national security payload and bus for a space satellite,
means an experimental or operational payload and bus with a weight not
in excess of 5,000 pounds that--
``(A) can be developed and acquired within 18 months after
authority to proceed with development is granted; and
``(B) is responsive to requirements for capabilities at the
operational and tactical levels of warfare.''.
(2) Clerical amendment.--The item relating to that section
in the table of sections at the beginning of chapter 135 of
such title is amended to read as follows:

``2273a. Operationally Responsive Space Program Office.''.
(b) Plan for Operationally Responsive Space.--
(1) Plan required.--Not later than 180 days after the date
of the enactment of this Act, the Secretary of Defense shall
submit to the congressional defense committees a report setting
forth a plan for the acquisition by the Department of Defense
of capabilities for operationally responsive space to support
the warfighter.
(2) Elements.--The plan required by paragraph (1) shall
include the following:
(A) An identification of the capabilities required
by the Department to fulfill the mission of the
Department with respect to operationally responsive
space.
(B) An identification of the roles and missions of
each military department, Defense Agency, and other
component or element of the Department of Defense for
the fulfillment of the mission of the Department with
respect to operationally responsive space.
(C) A description of the chain of command and
reporting structure of the Operationally Responsive
Space Program Office established under section 2273a of
title 10, United States Code, as amended by subsection
(a).
(D) A description of the classification of
information required for that Office in order to ensure
that the Office carries out its responsibilities in a
proper and efficient manner.
(E) A description of the acquisition policies and
procedures applicable to that Office, including a
description of any legislative or administrative action
necessary to provide the Office additional acquisition
authority to carry out its responsibilities.
(F) A complete schedule for the implementation of
the plan.
(G) The funding required to implement the plan over
the course of the future-years defense program under
section 221 of title 10, United States Code, in effect
as of the submission of the plan.
(3) Definition.--In this subsection, the term
``operationally responsive space'' means the development and
launch of space assets upon demand in a low-cost manner.

Subtitle C--Chemical Demilitarization Program

SEC. 921. TRANSFER TO SECRETARY OF THE ARMY OF RESPONSIBILITY FOR
ASSEMBLED CHEMICAL WEAPONS ALTERNATIVES PROGRAM.

Effective January 1, 2007, the text of section 142 of the Strom
Thurmond National Defense Authorization Act for Fiscal Year 1999
(Public Law 105-261; 50 U.S.C. 1521 note) is amended to read as
follows:
``(a) Program Management.--(1) The program manager for the
Assembled Chemical Weapons Alternatives program shall report to the
Secretary of the Army.
``(2) The Secretary of the Army shall provide for that program to
be managed as part of the management organization within the Department
of the Army specified in section 1412(e) of Public Law 99-145 (50
U.S.C. 1521(e)).
``(b) Continued Implementation of Previously Selected Alternative
Technologies.--(1) In carrying out the destruction of lethal chemical
munitions at Pueblo Chemical Depot, Colorado, the Secretary of the Army
shall continue to implement fully the alternative technology for such
destruction at that depot selected by the Under Secretary of Defense
for Acquisition, Technology, and Logistics on July 16, 2002.
``(2) In carrying out the destruction of lethal chemical munitions
at Blue Grass Army Depot, Kentucky, the Secretary of the Army shall
continue to implement fully the alternative technology for such
destruction at that depot selected by the Under Secretary of Defense
for Acquisition, Technology, and Logistics on February 3, 2003.''.

SEC. 922. COMPTROLLER GENERAL REVIEW OF COST-BENEFIT ANALYSIS OF OFF-
SITE VERSUS ON-SITE TREATMENT AND DISPOSAL OF HYDROLYSATE
DERIVED FROM NEUTRALIZATION OF VX NERVE GAS AT NEWPORT
CHEMICAL DEPOT, INDIANA.

(a) Review Required.--Not later than December 1, 2006, the
Comptroller General shall submit to Congress a report containing a
review of the cost-benefit analysis prepared by the Secretary of the
Army entitled ``Cost-Benefit Analysis of Off-Site Versus On-Site
Treatment and Disposal of Newport Caustic Hydrolysate'' and dated April
24, 2006.
(b) Content of Review.--In conducting the review under subsection
(a), the Comptroller General shall consider and assess at a minimum the
following matters:
(1) The adequacy of the rationale contained in the cost-
benefit analysis referred to in subsection (a) in dismissing
five of the eight technologies for hydrolysate treatment
directed for consideration on page 116 of the the Report of the
Committee on Armed Services of the House of Representatives on
H.R. 1815 (House Report 109-89).
(2) The rationale for the failure of the Secretary of the
Army to consider other technical solutions, such as
constructing a wastewater disposal system at the Newport
Chemical Depot.
(3) The adequacy of the cost-benefit analysis presented for
the three technologies considered.
(c) Delay Pending Report.--The Secretary of the Army shall not
proceed with any action to transport or relocate neutralized bulk nerve
agent (other than those small quantities necessary for laboratory
evaluation of the disposal process) from the Newport Chemical Depot
until--
(1) the report required by subsection (a) is submitted; and
(2) a period of 60 days expires after the submission of the
report.

SEC. 923. SENSE OF CONGRESS REGARDING THE SAFE AND EXPEDITIOUS DISPOSAL
OF CHEMICAL WEAPONS.

(a) Findings.--Congress makes the following findings:
(1) The disposal of chemical weapons needs to be
accomplished as safely and expeditiously as possible.
(2) It is apparent, however, that any disposal method for
chemical weapons that involves the transportation of chemical
munitions or processed chemical munitions is difficult to
implement
(b) Sense of Congress.--In light of these findings, it is the sense
of Congress that, when chemical munitions or processed chemical
munitions are proposed for treatment or disposal at a location remote
from the location where the munitions are stored--
(1) the method of actually selecting the disposal location
should be free from political interference; and
(2) a process like that used for selecting and approving
military installations for closure or realignment should be
considered.

Subtitle D--Intelligence-Related Matters

SEC. 931. REPEAL OF TERMINATION OF AUTHORITY OF SECRETARY OF DEFENSE TO
ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR
INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

Section 431(a) of title 10, United States Code, is amended by
striking the last sentence.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Subtitle B--Policy Relating to Vessels and Shipyards

Subtitle C--Counter-Drug Activities

Subtitle D--Other Matters

Sec. 1031. Revision to authorities relating to Commission on the
implementation of the New Strategic Posture
of the United States.
Sec. 1032. Enhancement to authority to pay rewards for assistance in
combating terrorism.
Sec. 1033. Report on assessment process of Chairman of the Joint Chiefs
of Staff relating to Global War on
Terrorism.
Sec. 1034. Presidential report on improving interagency support for
United States 21st century national
security missions.
Sec. 1035. Quarterly reports on implementation of 2006 Quadrennial
Defense Review Report.
Sec. 1036. Increased hunting and fishing opportunities for members of
the Armed Forces, retired members, and
disabled veterans.
Sec. 1037. Technical and clerical amendments.
Sec. 1038. Database of emergency response capabilities.
Sec. 1039. Information on certain criminal investigations and
prosecutions.
Sec. 1040. Date for final report of EMP Commission.

Subtitle A--Financial Matters

SEC. 1001. GENERAL TRANSFER AUTHORITY.

(a) Authority to Transfer Authorizations.--
(1) Authority.--Upon determination by the Secretary of
Defense that such action is necessary in the national interest,
the Secretary may transfer amounts of authorizations made
available to the Department of Defense in this division for
fiscal year 2007 between any such authorizations for that
fiscal year (or any subdivisions thereof). Amounts of
authorizations so transferred shall be merged with and be
available for the same purposes as the authorization to which
transferred.
(2) Limitation.--The total amount of authorizations that
the Secretary may transfer under the authority of this section
may not exceed $3,750,000,000.
(b) Limitations.--The authority provided by this section to
transfer authorizations--
(1) may only be used to provide authority for items that
have a higher priority than the items from which authority is
transferred; and
(2) may not be used to provide authority for an item that
has been denied authorization by Congress.
(c) Effect on Authorization Amounts.--A transfer made from one
account to another under the authority of this section shall be deemed
to increase the amount authorized for the account to which the amount
is transferred by an amount equal to the amount transferred.
(d) Notice to Congress.--The Secretary shall promptly notify
Congress of each transfer made under subsection (a).

SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR
2006.

Amounts authorized to be appropriated to the Department of Defense
and the Department of Energy for fiscal year 2006 in the National
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) are
hereby adjusted, with respect to any such authorized amount, by the
amount by which appropriations pursuant to such authorization are
increased by a supplemental appropriation or decreased by a rescission,
or both, or are increased by a transfer of funds, pursuant to an
emergency supplemental appropriations Act for 2006.

SEC. 1003. INCREASE IN FISCAL YEAR 2006 GENERAL TRANSFER AUTHORITY.

Section 1001(a)(2) of the National Defense Authorization Act for
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3418) is amended by
striking ``$3,500,000,000'' and inserting ``$3,750,000,000''.

SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN
FISCAL YEAR 2007.

(a) Fiscal Year 2007 Limitation.--The total amount contributed by
the Secretary of Defense in fiscal year 2007 for the common-funded
budgets of NATO may be any amount up to, but not in excess of, the
amount specified in subsection (b) (rather than the maximum amount that
would otherwise be applicable to those contributions under the fiscal
year 1998 baseline limitation).
(b) Total Amount.--The amount of the limitation applicable under
subsection (a) is the sum of the following:
(1) The amounts of unexpended balances, as of the end of
fiscal year 2006, of funds appropriated for fiscal years before
fiscal year 2007 for payments for those budgets.
(2) The amount specified in subsection (c)(1).
(3) The amount specified in subsection (c)(2).
(4) The total amount of the contributions authorized to be
made under section 2501.
(c) Authorized Amounts.--Amounts authorized to be appropriated by
titles II and III of this Act are available for contributions for the
common-funded budgets of NATO as follows:
(1) Of the amount provided in section 201(1), $797,000 for
the Civil Budget.
(2) Of the amount provided in section 301(1), $310,277,000
for the Military Budget.
(d) Definitions.--For purposes of this section:
(1) Common-funded budgets of nato.--The term ``common-
funded budgets of NATO'' means the Military Budget, the
Security Investment Program, and the Civil Budget of the North
Atlantic Treaty Organization (and any successor or additional
account or program of NATO).
(2) Fiscal year 1998 baseline limitation.--The term
``fiscal year 1998 baseline limitation'' means the maximum
annual amount of Department of Defense contributions for
common-funded budgets of NATO that is set forth as the annual
limitation in section 3(2)(C)(ii) of the resolution of the
Senate giving the advice and consent of the Senate to the
ratification of the Protocols to the North Atlantic Treaty of
1949 on the Accession of Poland, Hungary, and the Czech
Republic (as defined in section 4(7) of that resolution),
approved by the Senate on April 30, 1998.

SEC. 1005. REPORT ON BUDGETING FOR FLUCTUATIONS IN FUEL COST RATES.

(a) Secretary of Defense Report.--
(1) Report on budgeting for fuel cost fluctuations.--Not
later than January 15, 2007, the Secretary of Defense shall
submit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a
report on the fuel rate and cost projection used in the annual
Department of Defense budget presentation.
(2) Matters to be included.--In the report under paragraph
(1), the Secretary shall--
(A) identify alternative approaches for selecting
fuel rates that would produce more realistic estimates
of amounts required to be appropriated or otherwise
made available for the Department of Defense to
accommodate fuel rate fluctuations;
(B) discuss the advantages and disadvantages of
each approach identified pursuant to subparagraph (A);
and
(C) identify the Secretary's preferred approach
among the alternative identified pursuant to
subparagraph (A) and provide the Secretary's rationale
for preferring that approach.
(3) Identification of alternative approaches.--In
identifying alternative approaches pursuant to paragraph
(2)(A), the Secretary shall examine--
(A) approaches used by other Federal departments
and agencies; and
(B) the feasibility of using private economic
forecasting.
(b) Comptroller General Review and Report.--The Comptroller General
shall review the report under subsection (a), including the basis for
the Secretary's conclusions stated in the report, and shall submit, not
later than March 15, 2007, to the Committee on Armed Services of the
Senate and the Committee on Armed Services of the House of
Representatives a report containing the results of that review.

SEC. 1006. REDUCTION IN AUTHORIZATIONS DUE TO SAVINGS RESULTING FROM
LOWER-THAN-EXPECTED INFLATION.

(a) Reduction.--The total amount authorized to be appropriated by
titles I, II, and III is the amount equal to the sum of the separate
amounts authorized to be appropriated by those titles reduced by
$1,583,000,000.
(b) Source of Savings.--Reduction required in order to comply with
subsection (a) shall be derived from savings resulting from lower-than-
expected inflation.
(c) Allocation of Reduction.--The Secretary of Defense shall
allocate the reduction required by subsection (a) among the amounts
authorized to be appropriated for accounts in title I, II, and III to
reflect the extent to which net savings from lower-than-expected
inflation are allocable to amounts authorized to be appropriated to
those accounts.

Subtitle B--Policy Relating to Vessels and Shipyards

SEC. 1011. TRANSFER OF NAVAL VESSELS TO FOREIGN NATIONS BASED UPON
VESSEL CLASS.

Section 7307(a) of title 10, United States Code, is amended--
(1) by striking ``disposition of that vessel is approved''
and inserting ``disposal of that vessel, or of a vessel of the
class of that vessel, is authorized''; and
(2) by adding at the end the following new sentences: ``In
the case of an authorization by law for the disposal of such a
vessel that names a specific vessel as being authorized for
such disposal, the Secretary of Defense may substitute another
vessel of the same class, if the vessel substituted has
virtually identical capabilites as the named vessel. In the
case of an authorization by law for the disposal of vessels of
a specified class, the Secretary may dispose of vessels of that
class pursuant to that authorization only in the number of such
vessels specified in that law as being authorized for
disposal.''.

SEC. 1012. OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS IN FOREIGN
SHIPYARDS.

(a) In General.--Section 7310 of title 10, United States Code, is
amended to read as follows:
``Sec. 7310. Overhaul, repair, etc. of vessels in foreign shipyards
``(a) In General.--A vessel covered by this section the homeport of
which is in the United States may not be overhauled, repaired, or
maintained in a shipyard outside the United States, other than in the
case of emergency voyage repairs.
``(b) Covered Vessels.--(1) Vessels covered by this section are the
following:
``(A) Any naval vessel.
``(B) Any other vessel under the jurisdiction of the
Secretary of the Navy, including any vessel under the
jurisdiction of the Military Sealift Command that is owned or
chartered by the United States.
``(2)(A) Notwithstanding paragraph (1), a naval vessel or other
vessel certified by the Secretary of the Navy that is deployed
conducting special mission operations is not subject to this section.
``(B) The Secretary of the Navy shall submit to the congressional
defense committees each year a written certification of those vessels
that are excluded from this section. The certification shall be
submitted each year with the annual submission of the Navy budget
justification materials.
``(c) Certain Vessels to Be Considered to Be Homeported in United
States.--In the case of a vessel that does not have a designated
homeport, the vessel shall be considered to have a homeport in the
United States for the purposes of this section if any of the following
applies to the vessel during the preceding 12-month period:
``(1) The vessel has operated within 1,400 nautical miles
of the United States.
``(2) The vessel has returned to the United States more
than two times.
``(3) The vessel has made a port call or return to the
United States that exceeded seven days.
``(d) Vessel Changing Homeports.--(1) In the case of a vessel
covered by this section the homeport of which is not in the United
States, the Secretary of the Navy may not during the 15-month period
preceding the planned reassignment of the vessel to a homeport in the
United States begin any work for the overhaul, repair, or maintenance
of the vessel that is scheduled to be for a period of more than six
months
``(2) In the case of a vessel covered by this section the homeport
of which is in the United States, the Secretary of the Navy shall--
``(A) not less than 60 days before designating a homeport
for that vessel at a location outside the United States, submit
to Congress notification in writing of the intent to designate
a homeport for that vessel outside the United States, together
with the reasons for that designation; and
``(B) during the 15-month period preceding the planned
reassignment of the vessel to a homeport not in the United
States, perform in the United States any work for the overhaul,
repair, or maintenance of the vessel that is scheduled--
``(i) to begin during the 15-month period; and
``(ii) to be for a period of more than six months.
``(e) Definitions.--In this section:
``(1)(A) The term `emergency voyage repair' means the
following:
``(i) Repairs on mission-essential or safety-
essential items that are needed for a vessel to deploy,
to continue on a deployment, or to comply with
regulatory requirements.
``(ii) Standard maintenance, but only to the extent
that such maintenance is absolutely necessary to ensure
machinery and equipment operational reliability or to
comply with regulatory requirements.
``(iii) Repair or maintenance that is not executed
with a contract request for proposal.
``(B) Such term does not include corrective maintenance
actions that may be deferred until the next scheduled regular
overhaul and dry docking availability at a shipyard in the
Unites States without degrading operational readiness,
habitability standards, or personnel safety or adversely
affecting regulatory compliance.
``(2) The term `United States', when used in a geographic
sense, includes the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, Guam, and the
Virgin Islands.''.
(b) Effective Date.--Subsection (c) of section 7310 of title 10,
United States Code, as amended by subsection (a), shall take effect on
October 1, 2006, or the date of the enactment of this Act, whichever is
later, and shall apply only with respect to events specified in
paragraphs (1), (2), and (3) of that subsection occurring on or after
that effective date.
(c) Limitation on Application to Vessel Operating Under Existing
Charter.--This section does not affect the application of section 7310
of title 10, United States Code, to a vessel operating under a charter
to the United States in effect on the date of the enactment of this
Act, unless such charter is terminated or renewed after such date of
enactment.

SEC. 1013. REPORT ON OPTIONS FOR FUTURE LEASE ARRANGEMENT FOR GUAM
SHIPYARD.

(a) Report Required.-- Not later than December 15, 2006, the
Secretary of the Navy shall submit to the Committee on Armed Services
of the Senate and the Committee on Armed Service of the House of
Representatives a report describing the options available with respect
to the Guam Shipyard in Santa Rita, Guam.
(b) Contents of Report.--The report required under subsection (a)
shall include the following:
(1) An evaluation of the performance of the entities that,
as of the date of the enactment of this Act, are the lessee and
operators of the Guam Shipyard under the terms of the lease in
effect on the date of the enactment of this Act.
(2) An evaluation of each of the following options with
respect to the Guam Shipyard lease:
(A) Terminating the remaining term of the lease and
issuing a new 25 year lease with the same entity.
(B) Terminating the remaining term of the lease
with respect to the approximately 73 acres within the
Guam Shipyard that are required for mission
requirements and leaving the remaining term of the
lease in effect with respect to the approximately 27
acres within the Facility that are not required for
mission requirements.
(C) Terminating the remaining term of the lease and
negotiating a new use arrangement with a different
lessee or operator. The new use arrangement options
shall include:
(i) Government-owned and government-
operated facility.
(ii) Government-owned and contractor-
operated facility.
(iii) Government-leased property for
contractor-owned and contractor-operated
facility.
(c) Options for New Use Arrangements.--In evaluating the options
under subsection (b)(2)(C), the Secretary of the Navy shall include an
evaluation of each of the following:
(1) The anticipated future military vessel repair and
workload on Guam in relation to the 2006 Quadrennial Defense
Review, issued on February 6, 2006, pursuant to section 118 of
title 10, United States Code.
(2) The anticipated military vessel repair and workload
attributable to vessels comprising the Maritime Prepositioning
Ship Squadron Three.
(3) The anticipated military vessel repair and workload due
to a change in section 7310 of title 10, United States Code,
that would designate Guam as a United States homeport facility.
(4) The expected workload if the submarine tender the
U.S.S. Frank Cable (AS-40) is decommissioned.
(5) The estimated reacquisition costs of transferred
Government property.
(6) Costs to improve floating dry dock mooring
certification and required nuclear certification for the
floating dry dock designated as AFDB-8 to conduct the following
maintenance:
(A) Dry-docking selected restricted availabilities
and mid-term availability for attack submarines.
(B) Dry-docking phased maintenance availabilities
for amphibious vessels, including to amphibious assault
ships, dock landing ships, and amphibious transport
dock ships.
(C) Dry-docking phased maintenance availabilities
for surface combatants, including cruisers, destroyers,
and frigates.
(7) Commercial opportunities for development to expand
commercial ship repair and general industrial services, given
anti-terrorism force protection requirements at the current
facility.
(8) Estimates from three contractors for the maintenance
and repair costs associated with executing a multiship,
multioption contract that would generate a minimum 60,000
manday commitment for the Department of the Navy and Military
Sealift Command vessels.
(9) A projection of the maintenance and repair costs
associated with executing a minimum 60,000 mandays for the
Department of the Navy and Military Sealift Command vessels as
a Government-owned and Government-operated Navy ship repair
facility.
(d) Input From Contractors.--In evaluating the options under
clauses (ii) and (iii) of subsection (b)(2)(C) for the purposes of
paragraphs (1), (2), and (3) of subsection (c), the Secretary of the
Navy shall seek input from at least three contractors on the viability
of operations based on the projected workload fiscal years 2008 through
2013.
(e) Recommendations.--The Secretary of the Navy shall include in
the report the following:
(1) The recommendations of the Secretary with respect to
continuation of the existing Guam Shipyard lease based on
evaluations conducted pursuant to subsection (b)(1).
(2) The option under subsection (b)(2) that the Secretary
recommends for fiscal year 2008.
(f) GAO Report.--Not later than March 1, 2007, the Comptroller
General shall submit to the Committee on Armed Services of the Senate
and the Committee on Armed Service of the House of Representatives a
report evaluating the report submitted by the Secretary of the Navy
under subsection (a). The report shall include the option under
subsection (b)(2) that the Secretary recommends for fiscal year 2008.
(g) Support for National Strategic Objectives.--For fiscal year
2007, the Secretary of the Navy, under the authority of section
2304(c)(3) of title 10, United States Code, and section 6.302-
3(a)(2)(i) of the Federal Acquisition Regulation, shall award contracts
to the Guam Shipyard in amounts equal to the average amount of the
mandays contracts awarded to the Guam Shipyard for fiscal years 1998
through 2006 for the purpose of maintaining the industrial base in case
of a national emergency or to achieve industrial mobilization.

SEC. 1014. SHIPBUILDING INDUSTRIAL BASE IMPROVEMENT PROGRAM.

(a) Program for United States Private Shipyards.--The Secretary of
the Navy shall establish a program, to be known as the Shipbuilding
Industrial Base Improvement Program, under which the Secretary--
(1) shall make grants to qualified applicants to facilitate
the development of innovative design and production
technologies and processes for naval vessel construction and
the development of modernized shipbuilding infrastructure; and
(2) shall provide loan guarantees for qualifying shipyards
to facilitate the acquisition by such shipyards of
technologies, processes, and infrastructure to improve their
productivity and cost effectiveness.
(b) Purposes of Program.--The purposes of the program established
under subsection (a) are--
(1) to improve the efficiency and cost-effectiveness of the
construction of naval vessels for the United States;
(2) to enhance the quality of naval vessel construction;
and
(3) to promote the international competitiveness of United
States shipyards for the construction of commercial ships and
naval ships intended for sale to foreign governments.
(c) Selection of Grant Recipients.--
(1) Application for development funding.--An entity
requesting a grant under subsection (a)(1) to develop new
design or production technologies or processes for naval
vessels or to improve shipbuilding infrastructure shall submit
to the Secretary of the Navy an application that describes the
proposal of the entity and provides evidence of its capability
to develop one or more of the following:
(A) Numerically controlled machine tools, robots,
automated process control equipment, computerized
flexible manufacturing systems, associated computer
software, and other technology designed to improve
shipbuilding and related industrial productivity.
(B) Novel techniques and processes designed to
improve shipbuilding quality, productivity, and
practice on a broad and sustained basis, including in
such areas as engineering design, quality assurance,
concurrent engineering, continuous process production
technology, employee skills enhancement, and management
of customers and suppliers.
(C) Technology, techniques, and processes
appropriate to enhancing the productivity of shipyard
infrastructure.
(2) Selection .--From applications submitted under
paragraph (1), the Secretary of the Navy shall select entities
to receive funds under subsection (a)(1) based on their ability
to research and develop innovative technologies, processes, and
infrastructure to alleviate areas of shipyard construction
inefficiencies as determined through the assessment described
in subsection (f).
(d) Matching Requirement for Grants.--
(1) Federal funding.--Except as provided in paragraph (2),
Federal funds from a grant under subsection (a)(1) for any
purpose shall not exceed 75 percent of the total cost.
(2) Exceptions.--
(A) Small projects.--Paragraph (1) shall not apply
to grants under this section for stand-alone projects
costing not more than $25,000. The amount under this
subparagraph shall be indexed to the consumer price
index and modified each fiscal year after the annual
publication of the consumer price index.
(B) Reduction in matching requirement.--If the
Secretary of the Navy determines that a proposed
project merits support and cannot be undertaken without
a higher percentage of Federal financial assistance,
the Secretary may award a grant for such project with a
lesser matching requirement than is described in
paragraph (1).
(e) Loan Guarantees for Shipyard Use of Developed Technologies,
Processes, and Infrastructure.--
(1) In general.--Upon making a determination that a
technology, a process, or an infrastructure improvement
(whether developed using a grant under subsection (a)(1),
through the National Shipbuilding Research Program, or
otherwise) will improve the productivity and cost-effectiveness
of naval vessel construction, the Secretary of the Navy may
provide a loan guarantee under subsection (a)(2) for a
qualifying shipyard to facilitate the purchase by such shipyard
of such technology, process, or infrastructure improvement.
(2) Payment of cost of loan guarantee.--The cost of a
guarantee under this subsection shall be paid for with amounts
made available in appropriations Acts.
(3) Percentage limitation; term.--A loan guarantee under
this subsection may apply--
(A) to up to 87.5 percent of the loan principal;
and
(B) for a term of up to 30 years.
(4) Authorities, procedures, requirements, and
restrictions.--The Secretary of the Navy, subject to the other
provisions of this section--
(A) in implementing this section, may exercise
authorities that are similar to the authorities
available to the Secretary of Transportation under
title XI of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1271 et seq.), with respect to loan guarantees
under that title; and
(B) may establish such additional requirements for
loan guarantees under this section as the Secretary
determines to be necessary to minimize the cost of such
guarantees.
(5) Limitation on total amount of loan guarantees.--The
total amount of loans for which guarantees are provided under
this subsection may not exceed $1,000,000,000.
(6) Definitions.--In this subsection:
(A) Qualifying shipyard.--The term ``qualifying
shipyard'', with respect to a loan guarantee under this
section, means a shipyard that, over the three years
preceding the year in which the loan guarantee is made,
derived less than 40 percent of its revenue either
directly or indirectly from United States Government
contracts.
(B) Cost.--The term ``cost'', with respect to a
loan guarantee under this section, has the meaning
given that term in section 502 of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C.
661a), with cost for that purpose calculated assuming
that the borrowing entity receives no revenue directly
or indirectly from United States Government contracts.
(7) Termination of authority.--The authority of the
Secretary of the Navy to provide loan guarantees under this
subsection expires at the close of September 30, 2011.
(f) Assessments of Naval Vessel Construction Inefficiencies.--
(1) Periodic assessments required.--The Secretary of the
Navy shall conduct, in the third quarter of each fiscal year or
as often as necessary, an assessment of the following aspects
of naval vessel construction to determine where and to what
extent inefficiencies exist and to what extent innovative
design and production technologies, processes, and
infrastructure can be developed to alleviate such
inefficiencies:
(A) Program design, engineering, and production
engineering.
(B) Organization and operating systems.
(C) Steelwork production.
(D) Ship construction and outfitting.
(2) Consideration of prior assessments.--In making the
assessments required by paragraph (1), the Secretary shall take
into consideration the results of--
(A) the study of the cost effectiveness of the ship
construction program of the Navy required by section
1014 of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005 (Public Law 108-
375; 118 Stat. 2041); and
(B) the assessment of the United States naval
shipbuilding industry required by section 254 of the
National Defense Authorization Act for Fiscal Year 2006
(Public Law 109-163; 119 Stat. 3180).
(g) Availability of Funds.--
(1) Authority subject to availability of appropriations.--
The authority of the Secretary of the Navy to make grants and
provide loan guarantees under this section for any fiscal year
is subject to the availability of appropriations for that
purpose.
(2) Fiscal year 2007.--Of the amount authorized to be
appropriated pursuant to section 201(2) for research,
development, test, and evaluation for the Navy for fiscal year
2007--
(A) $50,000,000 shall be available to the Secretary
of the Navy only to make grants under this section; and
(B) $50,000,000 shall be available only for the
cost (as defined in subsection (e)(6)(B)) of loan
guarantees under this section.
(h) Identification in Budget of Annual Amount for Support of NSRP
Activities.--Amounts in the budget of the President for any fiscal year
for research, development, test, and evaluation for the Navy that are
intended to be made available for the National Shipbuilding Research
Program shall be separately identified and set forth in budget
justification materials submitted to Congress for that fiscal year in
support of that budget.
(i) Definition of Shipyard.--In this section, the term ``shipyard''
means a private shipyard located in the United States the business of
which includes the construction, repair, and maintenance of United
States naval vessels.

SEC. 1015. TRANSFER OF OPERATIONAL CONTROL OF CERTAIN PATROL COASTAL
SHIPS TO COAST GUARD.

Not later than September 30, 2008, the Secretary of the Navy shall
enter into an agreement with the Commandant of the Coast Guard for the
transfer by the Secretary of the Navy to the Coast Guard of operational
control of not less than five 179-foot Cyclone-class patrol coastal
ships for a period extending at least through September 30, 2012.

SEC. 1016. LIMITATION ON LEASING OF FOREIGN-BUILT VESSELS.

(a) In General.--(1) Chapter 141 of title 10, United States Code,
is amended by inserting after section 2401a the following new section:
``Sec. 2401b. Limitation on lease of foreign-built vessels
``(a) Limitation.--The Secretary of a military department may not
make a contract for a lease or charter of a vessel for a term of more
than 24 months (including all options to renew or extend the contract)
if the hull, or a component of the hull and superstructure of the
vessel, is constructed in a foreign shipyard.
``(b) Presidential Waiver for National Security Interest.--(1) The
President may authorize exceptions to the limitation in subsection (a)
when the President determines that it is in the national security
interest of the United States to do so.
``(2) The President shall transmit notice to Congress of any such
determination, and no contract may be made pursuant to the exception
authorized until the end of the 30-day period beginning on the date on
which the notice of the determination is received by Congress.''.
(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 2401a the
following new item:

``2401b. Limitation on lease of foreign-built vessels.''.
(b) Effective Date.--Section 2401b of title 10, United States Code,
as added by subsection (a), shall apply with respect to contracts
entered into after the date of the enactment of this Act.

SEC. 1017. OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS CARRYING
DEPARTMENT OF DEFENSE CARGO.

The Secretary of Defense may not award any contract for the
carriage by vessel of cargo for the Department of Defense, unless the
contract includes a requirement under which the contractor shall--
(1) ensure that all overhaul, repair, and maintenance
performed on the vessel during the period of the contract is
performed in a shipyard located in the United States; or
(2) report to the Secretary every fiscal year quarter all
overhaul, repair, and maintenance performed on the vessel in a
shipyard located outside the United States during the period
covered by the report.

SEC. 1018. RIDING GANG MEMBER DOCUMENTATION REQUIREMENT.

(a) Requirement.--The Secretary of Defense may not award any
charter of a vessel for the Department of Defense, or contract for the
carriage of cargo by vessel for the Department of Defense, unless the
charter or contract, respectively, requires that each riding gang
member that performs any work on the vessel during the effective period
of the charter or contract holds a merchant mariner's document issued
under chapter 73 of title 46, United States Code.
(b) Riding Gang Member Defined.--In this section the term ``riding
gang member'' means an individual who--
(1) does not perform--
(A) watchstanding, automated engine room duty
watch, or personnel safety functions; or
(B) cargo handling functions, including any
activity relating to the loading or unloading of cargo,
the operation of cargo-related equipment (whether or
not integral to the vessel), and the handling of
mooring lines on the dock when the vessel is made fast
or let go;
(2) does not serve as part of the crew complement required
under section 8101 of title 46, United States Code;
(3) is not a member of the steward's department; and
(4) is not a citizen or temporary or permanent resident of
a country designated by the United States as a sponsor of
terrorism or any other country that the Secretary of Defense,
in consultation with the Secretary of State and the heads of
other appropriate United States agencies, determines to be a
security threat to the United States.
(c) Limitations on Application.--
(1) Vessel operating under existing charter or contract.--
This section does not apply with respect to a vessel operating
under a charter or contract in effect on the date of the
enactment of this section, unless such charter or contract is
renewed after such date of enactment.
(2) Exemptions by secretary of defense.--
(A) In general.--The Secretary of Defense may issue
regulations that exempt a riding gang member from
subsection (a) for the performance of specific
technical work on original equipment of a vessel.
(B) Background check.--Such regulations shall
include a requirement that a riding gang member must
pass a background check before performing work under
such an exemption.

Subtitle C--Counter-Drug Activities

SEC. 1021. RESTATEMENT IN TITLE 10, UNITED STATES CODE, AND REVISION OF
DEPARTMENT OF DEFENSE AUTHORITY TO PROVIDE SUPPORT FOR
COUNTER-DRUG ACTIVITIES OF FEDERAL, STATE, LOCAL, AND
FOREIGN LAW ENFORCEMENT AGENCIES.

(a) Restatement and Revision of Authority.--Chapter 18 of title 10,
United States Code, is amended by adding at the end a new section 383
consisting of--
(1) a heading as follows:
``Sec. 383. Support for counter-drug activities: Federal, State, local,
and foreign law enforcement agencies''; and
(2) a text consisting of the text of section 1004 of the
National Defense Authorization Act for Fiscal Year 1991 (Public
Law 101-510; 10 U.S.C. 374 note), revised as follows:
(A) In subsection (a), by replacing ``During fiscal
years 2002 through 2006, the'' with ``The''.
(B) In subsection (e), by replacing ``section 376
of title 10, United States Code,'' with ``section 376
of this title,''.
(C) In subsection (f), by deleting the
parenthetical phrase beginning ``(including training''
and ending ``1564))''.
(D) In subsection (g)--
(i) in paragraph (1), by replacing
``chapter 18, United States Code'' with ``this
chapter''; and
(ii) in paragraph (2), by replacing ``title
10, United States Code'' with ``this title''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``383. Support for counter-drug activities: Federal, State, local, and
foreign law enforcement agencies.''.
(c) Repeal of Fiscal Year 1991 Authority.--Section 1004 of the
National Defense Authorization Act for Fiscal Year 1991 (Public Law
101-510; 10 U.S.C. 374 note) is repealed.

SEC. 1022. RESTATEMENT IN TITLE 10, UNITED STATES CODE, AND REVISION OF
DEPARTMENT OF DEFENSE AUTHORITY TO PROVIDE SUPPORT FOR
COUNTER-DRUG ACTIVITIES OF CERTAIN FOREIGN GOVERNMENTS.

(a) Restatement and Revision of Authority.--Chapter 18 of title 10,
United States Code, is amended by inserting after section 383, as added
by section 1021, a new section 384 consisting of--
(1) a heading as follows:
``Sec. 384. Support for counter-drug activities: foreign governments'';
and
(2) a text consisting of the text of section 1033 of the
National Defense Authorization Act for Fiscal Year 1998 (Public
Law 105-85; 111 Stat. 1881), revised as follows:
(A) In subsection (a)(2)--
(i) by deleting the first sentence; and
(ii) by replacing ``the governments'' with
``those governments''.
(B) In subsection (b), by adding at the end the
following new paragraphs:
``(10) The Government of Azerbaijan.
``(11) The Government of Kazakhstan.
``(12) The Government of Kyrgyzstan.
``(13) The Government of Guatemala.
``(14) The Government of Belize.
``(15) The Government of Panama.''.
(C) In subsection (c), by replacing paragraphs (1),
(2), and (3) with the following new paragraphs:
``(1) The transfer of nonlethal protective and utility
personnel equipment.
``(2) The transfer of the following nonlethal specialized
equipment:
``(A) Navigation equipment.
``(B) Secure and nonsecure communications
equipment.
``(C) Photo equipment.
``(D) Radar equipment.
``(E) Night vision systems.
``(3) The transfer of nonlethal components, accessories,
attachments, parts (including ground support equipment),
firmware, and software and repair equipment related to the
equipment specified in paragraph (2).
``(4) The transfer of patrol boats, vehicles, and aircraft
and detection, interception, monitoring and testing equipment.
``(5) The maintenance and repair or upgrade of equipment of
the government that is used for counter-drug activities.
``(6) For fiscal years 2007 and 2008, for the Government of
Afghanistan only, individual and crew-served weapons of 50
caliber or less and ammunition for such weapons for counter-
narcotics security forces.''.
(D) In subsection (d), by replacing ``the
provisions of section 1004 of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101-
510; 10 U.S.C. 374 note)'' with ``section 383 of this
title''.
(E) By replacing subsection (e) with the following
new subsection (e):
``(e) Limitation on Obligations.--Amounts made available to carry
out this section shall remain available until expended, except that the
total amount obligated and expended under this section may not exceed
$40,000,000 during fiscal year 2006 or $60,000,000 during fiscal year
2007 or fiscal year 2008.''.
(F) In subsection (f), by replacing paragraphs (3)
and (4) with the following new paragraph:
``(3) For purposes of this subsection and subsection (h), the term
`congressional committees' means the following:
``(A) The Committee on Armed Services, the Committee on
Appropriations, and the Committee on Foreign Relations of the
Senate.
``(B) The Committee on Armed Services, the Committee on
Appropriations, and the Committee on International Relations of
the House of Representatives.''.
(G) In subsection (g)(1), by replacing ``United
States Armed Forces'' with ``armed forces''.
(H) In subsection (h)--
(i) in the first sentence, by replacing
``prepare for fiscal year 2004 (and revise as
necessary for subsequent fiscal years) a
counter-drug plan'' with ``submit to the
congressional committees not later than
December 31 of each fiscal year a counter-drug
plan for the next fiscal year''; and
(ii) by adding at the end the following new
paragraph:.
``(10) A copy of the certification required by subsection
(f)(1) with respect to the government.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
383, as added by section 1021, the following new item:

``384. Support for counter-drug activities: foreign governments.''.
(c) Repeal of Fiscal Year 1998 Authority.--Section 1033 of the
National Defense Authorization Act for Fiscal Year 1998 (Public Law
105-85; 111 Stat. 1881) is repealed.

SEC. 1023. EXTENSION OF AUTHORITY TO SUPPORT UNIFIED COUNTERDRUG AND
COUNTERTERRORISM CAMPAIGN IN COLOMBIA.

Section 1021 of the Ronald W. Reagan National Defense Authorization
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2042) is
amended--
(1) in subsection (a)(1), by striking ``and 2006'' and
inserting ``through 2008''; and
(2) in subsection (c), by striking ``and 2006'' and
inserting ``through 2008''.

SEC. 1024. CONTINUATION OF REPORTING REQUIREMENT REGARDING DEPARTMENT
OF DEFENSE EXPENDITURES TO SUPPORT FOREIGN COUNTER-DRUG
ACTIVITIES.

(a) Additional Report Required.--Section 1022 of the Floyd D.
Spence National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114 Stat. 1654A-255), as
amended by section 1022 of the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1215) and section 1021
of the National Defense Authorization Act for Fiscal Year 2006 (Public
Law 109-163; 119 Stat. 3426), is further amended by inserting ``and
February 15, 2007,'' after ``April 15, 2006,''.
(b) Form of Report and Additional Information Required.--Such
section is further amended--
(1) in the first sentence, by inserting ``, in both
classified and unclassified form,'' after ``report''; and
(2) in paragraph (2), by inserting before the period at the
end the following: ``and the amount of funds provided for each
type of counter-drug activity assisted''.

SEC. 1025. REPORT ON INTERAGENCY COUNTER-NARCOTICS PLAN FOR AFGHANISTAN
AND SOUTH AND CENTRAL ASIAN REGIONS.

(a) Report Required.--Not later than December 31, 2006, the
Secretary of Defense shall submit to the congressional defense
committees a report updating the interagency counter-narcotics
implementation plan for Afghanistan and the South and Central Asian
regions, including Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan,
Kazakhstan, Iran, Azerbaijan, Pakistan, India, and China, originally
prepared pursuant to section 1033 of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881).
(b) Consultation.--The report under this section shall be prepared
in consultation with the Secretary of State, the Administrator of the
Agency for International Development, and the Director of the Drug
Enforcement Administration.
(c) Matters to Be Included.--The report shall include the following
for each foreign government covered by the report:
(1) A consideration of what activities should be
reallocated among the United States and the foreign government
based on the capabilities of each department and agency
involved.
(2) Any measures necessary to clarify the legal authority
required to complete the mission and the measures necessary for
the United States to successfully complete its counter-
narcotics efforts in Afghanistan and the South and Central
Asian regions.
(3) Current and proposed United States funding to support
counter-narcotics activities of the foreign government.

Subtitle D--Other Matters

SEC. 1031. REVISION TO AUTHORITIES RELATING TO COMMISSION ON THE
IMPLEMENTATION OF THE NEW STRATEGIC POSTURE OF THE UNITED
STATES.

Section 1051 of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109-163; 119 Stat. 3431) is amended--
(1) in subsections (b)(1)(E) and (b)(2)(B), by striking
``though 2008'' and inserting ``through 2025'';
(2) in subsection (c)(1), by striking ``Not later than June
30, 2007'' and inserting ``Not later than 18 months after the
date of the Commission's first meeting''; and
(3) in subsection (f), by striking ``July 30, 2007'' and
inserting ``60 days after the date of the submission of its
report''.

SEC. 1032. ENHANCEMENT TO AUTHORITY TO PAY REWARDS FOR ASSISTANCE IN
COMBATING TERRORISM.

(a) Increase in Delegation Limitation.--Paragraph (2) of section
127b(c) of title 10, United States Code, is amended by striking
``$2,500'' and inserting ``$10,000''.
(b) Expansion of Senior Officers to Whom Combatant Commander
Authority May Be Delegated.--Such paragraph is further amended--
(1) by inserting after ``deputy commander'' the following:
``, or to the commander of a command directly subordinate to
that commander,''; and
(2) by adding at the end the following new sentence: ``Such
a delegation may be made to the commander of a command directly
subordinate to the commander of a combatant command only with
the approval of the Secretary of Defense, the Deputy Secretary
of Defense, or an Under Secretary of Defense designated by the
Secretary.''.

SEC. 1033. REPORT ON ASSESSMENT PROCESS OF CHAIRMAN OF THE JOINT CHIEFS
OF STAFF RELATING TO GLOBAL WAR ON TERRORISM.

Not later than March 1, 2007, the Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives a report on the findings
of the semiannual assessment process relating to the Global War on
Terrorism that is described in the annex to the National Military
Strategic Plan for the War on Terrorism, issued by the Secretary of
Defense on February 1, 2006, that is designated as the Implementation
and Assessment Annex (Annex R).

SEC. 1034. PRESIDENTIAL REPORT ON IMPROVING INTERAGENCY SUPPORT FOR
UNITED STATES 21ST CENTURY NATIONAL SECURITY MISSIONS.

(a) Report Required.--Not later than February 1, 2007, the
President shall submit to Congress a report on building interagency
capacity and enhancing the integration of civilian capabilities of the
executive branch with the capabilities of the Armed Forces as required
to achieve United States national security goals and objectives. To the
maximum extent practicable, the report shall be unclassified, with a
classified annex if necessary.
(b) Report Elements.--The report under subsection (a) shall include
the following:
(1) An assessment of the capabilities required within the
executive branch (other than the Armed Forces) to achieve the
full spectrum of United States national security goals and
objectives, to defend United States national security
interests, and, in particular, to coordinate with the efforts
of elements of the Armed Forces where deployed, including at
least in the following areas:
(A) Organizations and organizational structure.
(B) Planning and assessment capabilities.
(C) Information sharing policies, practices, and
systems.
(D) Leadership issues, including command and
control of forces and personnel in the field.
(E) Personnel policies and systems, including
recruiting, retention, training, education, promotion,
awards, employment, deployment, and retirement.
(F) Acquisition authorities.
(2) The criteria and considerations used to evaluate
progress in each of the areas specified in paragraph (1)
towards building and integrating the interagency capacities
required to achieve United States national security goals and
objectives.
(3) Recommendations for specific legislative proposals that
would improve interagency capacity and enhance the integration
of civilian capabilities with the capabilities of deployed
elements of the Armed Forces for each of the areas specified in
paragraph (1).

SEC. 1035. QUARTERLY REPORTS ON IMPLEMENTATION OF 2006 QUADRENNIAL
DEFENSE REVIEW REPORT.

(a) Reports Required.--Not later than 30 days after the end of each
fiscal-year quarter, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on the implementation
of recommendations described in the Department of Defense 2006
Quadrennial Defense Review Report.
(b) Contents of Reports.--Each quarterly report under subsection
(a) shall, at a minimum--
(1) describe the processes and procedures established by
the Secretary of Defense to examine the various recommendations
referred to in subsection (a);
(2) discuss implementation plans and strategies for each
area highlighted by the Quadrennial Defense Review Report;
(3) provide relevant information about the status of such
implementation; and
(4) indicate changes in the Secretary's assessment of the
defense strategies or capabilities required since the
publication of the 2006 Quadrennial Defense Review Report.
(c) Initial Report.--The first report under subsection (a) shall be
submitted not later than January 31, 2007.
(d) Expiration of Requirement.--The reporting requirement in
subsection (a) shall terminate upon the earlier of the following:
(1) The date of the publication of the next Quadrennial
Defense Review Report after the date of the enactment of this
Act pursuant to section 118 of title 10, United States Code.
(2) The date of transmission of a written notification by
the Secretary of Defense to the Committee on Armed Services of
the Senate and the Committee on Armed Services of the House of
Representatives that implementation of the recommendations of
the 2006 Quadrennial Defense Review is complete.

SEC. 1036. INCREASED HUNTING AND FISHING OPPORTUNITIES FOR MEMBERS OF
THE ARMED FORCES, RETIRED MEMBERS, AND DISABLED VETERANS.

(a) Access for Members, Retired Members, and Disabled Veterans.--
Consistent with section 2671 of title 10, United States Code, and using
such funds as are made available for this purpose, the Secretary of
Defense shall ensure that members of the Armed Forces, retired members,
disabled veterans, and persons assisting disabled veterans are able to
utilize lands under the jurisdiction of the Department of Defense that
are available for hunting or fishing.
(b) Assessment.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to Congress a report
containing the results of an assessment of those lands under the
jurisdiction of the Department of Defense and suitable for hunting or
fishing and describing the actions necessary--
(1) to further increase the acreage made available to
members of the Armed Forces, retired members, disabled
veterans, and persons assisting disabled veterans for hunting
and fishing; and
(2) to make that acreage more accessible to disabled
veterans.
(c) Recreational Activities on Santa Rosa Island.--The Secretary of
the Interior shall immediately cease the plan, approved in the
settlement agreement for case number 96-7412 WJR and case number 97-
4098 WJR, to exterminate the deer and elk on Santa Rosa Island, Channel
Islands, California, by helicopter and shall not exterminate or nearly
exterminate the deer and elk.

SEC. 1037. TECHNICAL AND CLERICAL AMENDMENTS.

(a) Title 10, United States Code.--Title 10, United States Code, is
amended as follows:
(1) Section 1406(i)(3)(B)(vi) is amended by striking
``Advisor for'' and inserting ``Advisor to''.
(2) Section 2105 is amended by striking by adding a period
at the end of the last sentence.
(3) Section 2703(h) is amended by striking ``subsection''
in the first sentence and inserting ``section''.
(b) Title 37, United States Code.--Title 37, United States Code, is
amended as follows:
(1) Section 210(c)(6) is amended by striking ``Advisor
for'' and inserting ``Advisor to''.
(2) Section 308g(h) is amended by striking the second
period at the end.
(3) Section 308j is amended by striking subsection (g) and
inserting the following new subsection:
``(g) Repayment.--A person who enters into an agreement under this
section and receives all or part of the bonus under the agreement, but
who does not accept a commission or an appointment as an officer or
does not commence to participate or does not satisfactorily participate
in the Selected Reserve for the total period of service specified in
the agreement, shall be subject to the repayment provisions of section
303a(e) of this title.''.
(4) Section 414(c) is amended by striking ``, or the Senior
Enlisted Advisor for the Chairman of the Joint Chiefs of
Staff'' before the period at the end.
(c) National Defense Authorization Act for Fiscal Year 2006.--
Effective as of January 6, 2006, and as if included therein as enacted,
the National Defense Authorization Act for Fiscal Year 2006 (Public Law
109-163) is amended as follows:
(1) Section 608(b) (119 Stat. 3289) is amended--
(A) in paragraph (1), by striking ``the first
sentence'' and inserting ``the second sentence''; and
(B) in paragraph (2), by striking ``the second
sentence'' and inserting ``the third sentence''.
(2) Section 683 (119 Stat. 3322) is amended--
(A) in subsection (a)(3), by striking ``section
4873'' and inserting ``section 4837'';
(B) in subsetion (c)(3), by striking ``section
9873'' and inserting ``section 9837''.
(C) in subsection (b)(2)--
(i) by striking ``by striking the
penultimate word.'' and inserting ``to read as
follows:''; and
(ii) by adding at the end the following:

``6161. Settlement of accounts: remission or cancellation of
indebtedness of members.''.
(3) Section 685(a) (119 Stat. 3325) is amended by striking
``Advisor for'' both places it appears and inserting ``Advisor
to''.
(4) Section 687(a)(2) (119 Stat. 3327) is amended by
striking ``subsection (a)'' and inserting ``subsection (e)''.
(5) Section 687(b)(15) (119 Stat. 3330) is amended--
(A) by striking ``Subsection (d)'' and inserting
``Subsection (e)''; and
(B) in the matter inserted by that section, by
striking ``(d) Repayment.--'' and inserting ``(e)
Repayment.--''.

SEC. 1038. DATABASE OF EMERGENCY RESPONSE CAPABILITIES.

The Secretary of Defense shall ensure that a database of emergency
response capabilities is maintained by the Department of Defense that
includes the following:
(1) The types of capabilities that each State's National
Guard will likely provide in response to domestic natural and
manmade disasters, both to their home States and under State-
to-State mutual assistance agreements.
(2) The types of capabilities that the Department of
Defense will likely provide in order to fulfill Department of
Defense responsibilities to provide support under the National
Response Plan's 15 Emergency Support Functions, as well as
identification of the units that provide those capabilities.

SEC. 1039. INFORMATION ON CERTAIN CRIMINAL INVESTIGATIONS AND
PROSECUTIONS.

(a) Annual Report.--Subsection (c) of section 1093 of the Ronald W.
Reagan National Defense Authorization Act for Fiscal Year 2005 (Public
Law 108-375; 118 Stat. 2070) is amended--
(1) in paragraph (1)--
(A) by inserting ``, or any prosecution on account
of,'' after ``Notice of any investigation into''; and
(B) by inserting before the period at the end the
following: ``, and, as to any such criminal
investigation or prosecution described in this
paragraph, a detailed and comprehensive description of
such investigation or prosecution and any resulting
judicial or nonjudicial punishment or other
disciplinary action''; and
(2) by adding at the end the following new paragraph:
``(3) Information about any officer nominated for command,
or nominated for promotion or appointment to a position
requiring the advice and consent of the Senate, who has been
subject to any investigation into, or prosecution of, a
violation of international obligations or laws of the United
States regarding the treatment of individuals detained by the
United States Armed Forces or by a person providing services to
the Department of Defense on a contractual basis, if the
inclusion of such information in the report will not compromise
any ongoing criminal or administrative investigation or
prosecution, and including the following:
``(A) A description of any allegation of detainee
death, torture or abuse.
``(B) The status of any investigation or
prosecution.
``(C) Any judicial or nonjudicial punishment or
other disciplinary action.''.
(b) Nomination Information.--Such section is further amended by
adding at the end the following new subsection:
``(f) Nominations.--Information described in paragraph (3) of
subsection (c), in addition to being included in the annual report
under that subsection, shall be submitted to the Committee of Armed
Services of the Senate and the Committee on Armed Services of the House
of Representatives on a regular, timely basis in advance of any
nomination described in that paragraph.''.

SEC. 1040. DATE FOR FINAL REPORT OF EMP COMMISSION.

(a) Revised Deadline for Submission of Final Report.--The final
report of the EMP Commission shall be submitted to Congress not later
than the end of the 18-month period beginning on the date of the
commission's first meeting after being reestablished pursuant to
section 1052 of the National Defense Authorization Act for Fiscal Year
2006 (Public Law 109-163; 119 Stat. 3434) (rather than the date
prescribed in section 1403(a) of the Commisssion Charter).
(b) Definitions.--For purposes of this section:
(1) Emp commission.--The term ``EMP Commission'' means the
Commission to Assess the Threat to the United States from
Electromagnetic Pulse (EMP) Attack Commission, established
pursuant to title XIV of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-345 et seq.) and
reestablished pursuant to section 1052 of the National Defense
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119
Stat. 3434).
(2) Commission charter.--The term ``Commission charter''
means title XIV of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-345 et seq.), as amended by
section 1052 of the National Defense Authorization Act for
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3434).

TITLE XI--CIVILIAN PERSONNEL MATTERS

SEC. 1101. INCREASE IN AUTHORIZED NUMBER OF DEFENSE INTELLIGENCE SENIOR
EXECUTIVE SERVICE EMPLOYEES.

Section 1606(a) of title 10, United States Code, is amended by
striking ``594'' and inserting ``644''.

SEC. 1102. AUTHORITY FOR DEPARTMENT OF DEFENSE TO PAY FULL REPLACEMENT
VALUE FOR PERSONAL PROPERTY CLAIMS OF CIVILIANS.

Section 2636a(a) of title 10, United States Code, is amended by
striking ``of baggage and household effects for members of the armed
forces at Government expense'' and inserting ``at Government expense of
baggage and household effects for members of the armed forces or
civilian employees of the Department of Defense (or both)''.

SEC. 1103. ACCRUAL OF ANNUAL LEAVE FOR MEMBERS OF THE UNIFORMED
SERVICES PERFORMING DUAL EMPLOYMENT.

Section 5534a of title 5, United States Code, is amended by adding
at the end the following new sentence: ``Such a member also is entitled
to accrue annual leave with pay in the manner specified in section
6303(a) of this title for a retired member of a uniformed service.''.

SEC. 1104. DEATH GRATUITY AUTHORIZED FOR FEDERAL EMPLOYEES.

(a) Death Gratuity Authorized.--Chapter 81 of title 5, United
States Code, is amended by inserting after section 8102 the following
new section:
``Sec. 8102a. Death gratuity
``(a) Death Gratuity Authorized.--The United States shall pay a
death gratuity of $100,000 to or for the survivor prescribed by
subsection (d) immediately upon receiving official notification of the
death of an employee who dies of injuries incurred in connection with
the employee's service with an Armed Force in a contingency operation,
or who dies of injuries incurred in connection with a terrorist
incident occurring during the employee's service with an Armed Force.
``(b) Retroactive Payment in Certain Cases.--With respect to an
employee who dies on or after October 7, 2001, as a result of wounds,
injuries, or illnesses incurred in the performance of duty in the
theater of operations of Operation Enduring Freedom or Operation Iraqi
Freedom, subsection (a) also shall apply.
``(c) Other Benefits.--The death gratuity payable under this
section is in addition to any death benefits otherwise provided for in
law.
``(d) Eligible Survivors.--
``(1) A death gratuity payable upon the death of a person
covered by subsection (a) shall be paid to or for the living
survivor highest on the following list:
``(A) The employee's surviving spouse.
``(B) The employee's children, as prescribed by
paragraph (2), in equal shares.
``(C) If designated by the employee, any one or
more of the following persons:
``(i) The employee's parents or persons in
loco parentis, as prescribed by paragraph (3).
``(ii) The employee's brothers.
``(iii) The employee's sisters.
``(D) The employee's parents or persons in loco
parentis, as prescribed by paragraph (3), in equal
shares.
``(E) The employee's brothers and sisters in equal
shares.
Subparagraphs (C) and (E) of this paragraph include brothers
and sisters of the half blood and those through adoption.
``(2) Paragraph (1)(B) applies, without regard to age or
marital status, to--
``(A) legitimate children;
``(B) adopted children;
``(C) stepchildren who were a part of the
decedent's household at the time of death;
``(D) illegitimate children of a female decedent;
and
``(E) illegitimate children of a male decedent--
``(i) who have been acknowledged in writing
signed by the decedent;
``(ii) who have been judicially determined,
before the decedent's death, to be his
children;
``(iii) who have been otherwise proved, by
evidence satisfactory to the employing agency,
to be children of the decedent; or
``(iv) to whose support the decedent had
been judicially ordered to contribute.
``(3) Subparagraphs (C) and (D) of paragraph (1), so far as
they apply to parents and persons in loco parentis, include
fathers and mothers through adoption, and persons who stood in
loco parentis to the decedent for a period of not less than one
year at any time before the decedent became an employee.
However, only one father and one mother, or their counterparts
in loco parentis, may be recognized in any case, and preference
shall be given to those who exercised a parental relationship
on the date, or most nearly before the date, on which the
decedent became an employee.
``(4) If an eligible survivor dies before he receives the
death gratuity, it shall be paid to the living survivor next in
the order prescribed by paragraph (1).
``(e) Definitions.--The term `contingency operation' has the
meaning given to that term in section 1482a(c) of title 10, United
States Code.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 81 of such title is amended by inserting after the item
relating to section 8102 the following new item:

``8102a. Death gratuity.''.

TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

Subtitle A--Assistance and Training

Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. Procurement restrictions against foreign persons that
transfer certain defense articles and
services to the People's Republic of China.

Subtitle C--Other Matters

Sec. 1221. Execution of the President's policy to make available to
Taiwan diesel electric submarines.

Subtitle A--Assistance and Training

SEC. 1201. LOGISTIC SUPPORT FOR ALLIED FORCES PARTICIPATING IN COMBINED
OPERATIONS.

(a) Authority.--Chapter 3 of title 10, United States Code, is
amended by inserting after section 127b the following new section:
``Sec. 127c. Allied forces participating in combined operations:
authority to provide logistic support, supplies, and
services
``(a) Authority.--Subject to subsections (b) and (c), the Secretary
of Defense may provide logistic support, supplies, and services to
allied forces participating in a combined operation with the armed
forces. Provision of such support, supplies, and services to the forces
of an allied nation may be made only with the concurrence of the
Secretary of State.
``(b) Limitations.--The authority provided by subsection (a) may be
used only--
``(1) in accordance with the Arms Export Control Act and
other export control laws of the United States; and
``(2) for a combined operation--
``(A) that is carried out during active hostilities
or as part of a contingency operation or a noncombat
operation (including an operation in support of the
provision of humanitarian or foreign disaster
assistance, a country stabilization operation, or a
peacekeeping operation under chapter VI or VII of the
Charter of the United Nations); and
``(B) in a case in which the Secretary of Defense
determines that the allied forces to be provided
logistic support, supplies, and services (i) are
essential to the success of the combined operation, and
(ii) would not be able to participate in the combined
operation but for the provision of such logistic
support, supplies, and services by the Secretary.
``(c) Limitation on Value.--The value of logistic support,
supplies, and services provided under this section in any fiscal year
may not exceed $100,000,000.
``(d) Definition.--In this section, the term `logistic support,
supplies, and services' has the meaning given that term in section
2350(1) of this title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
127b the following new item:

``127c. Allied forces participating in combined operations: authority
to provide logistic support, supplies, and
services.''.

SEC. 1202. TEMPORARY AUTHORITY TO USE ACQUISITION AND CROSS-SERVICING
AGREEMENTS TO LEND CERTAIN MILITARY EQUIPMENT TO FOREIGN
FORCES IN IRAQ AND AFGHANISTAN FOR PERSONNEL PROTECTION
AND SURVIVABILITY.

(a) Authority.--
(1) In general.--Subject to paragraphs (2), (3), and (4),
the Secretary of Defense may treat covered military equipment
as logistic support, supplies, and services under subchapter I
of chapter 138 of title 10, United States Code, for the purpose
of providing for the use of such equipment by military forces
of a nation participating in combined operations with the
United States in Iraq or Afghanistan.
(2) Required determinations.--Equipment may be provided to
the military forces of a nation under the authority of this
section only upon--
(A) a determination by the Secretary of Defense
that the United States forces in the combined operation
have no unfilled requirements for that equipment; and
(B) a determination by the Secretary of Defense,
with the concurrence of the Secretary of State, that it
is in the national security interest of the United
States to provide for the use of such equipment by the
military forces of that nation under this section.
(3) Limitation on use of equipment.--Equipment provided to
the military forces of a nation under the authority of this
section may be used by those forces only in Iraq or Afghanistan
and only for personnel protection or to aid in the personnel
survivability of those forces.
(4) Limitation on duration of provision of equipment.--
Equipment provided to the military forces of a nation under the
authority of this section may be used by the military forces of
that nation for not longer than one year.
(b) Semiannual Reports to Congressional Committees.--
(1) Use of authority during first six months of fiscal
year.--If the authority provided in subsection (a) is exercised
during the first six months of a fiscal year, the Secretary of
Defense shall submit to the specified congressional committees
a report on that exercise of such authority not later than the
following April 30.
(2) Use of authority during second six months of fiscal
year.--If the authority provided in subsection (a) is exercised
during the second six months of a fiscal year, the Secretary of
Defense shall submit to the specified congressional committees
a report on that exercise of such authority not later than the
following October 30.
(3) Content.--Each report under paragraph (1) or (2) shall
include, with respect to each exercise of the authority
provided in subsection (a) during the period covered by the
report, the following:
(A) A description of the basis for the
determination of the Secretary of Defense that it is in
the national security interests of the United States to
provide for the use of covered military equipment in
the manner authorized in subsection (a).
(B) Identification of each foreign force that
receives such equipment.
(C) A description of the type, quantity, and value
of the equipment provided to each foreign force that
receives such equipment.
(D) A description of the terms and duration of the
provision of the equipment to each foreign force that
receives such equipment.
(4) Coordination.--Each report under paragraph (1) or (2)
shall be prepared in coordination with the Secretary of State.
(c) Limitations on Provision of Military Equipment.--The provision
of military equipment under this section is subject to the provisions
of the Arms Export Control Act (22 U.S.C. 2751 et seq.) and of any
other export control process under laws relating to the transfer of
military equipment and technology to foreign nations.
(d) Definitions.--In this section:
(1) The term ``covered military equipment'' means items
designated as significant military equipment in categories I,
II, III, and VII of the United States Munitions List under
section 38(a)(1) of the Arms Export Control Act (22 U.S.C.
2778(a)(1)).
(2) The term ``specified congressional committees'' means--
(A) the Committee on Armed Services and the
Committee on Foreign Relations of the Senate; and
(B) the Committee on Armed Services and the
Committee on International Relations of the House of
Representatives.
(e) Expiration.--The authority to provide military equipment to the
military forces of a foreign nation under this section expires on
September 30, 2008.

SEC. 1203. RECODIFICATION AND REVISION TO LAW RELATING TO DEPARTMENT OF
DEFENSE HUMANITARIAN DEMINING ASSISTANCE.

(a) Repeal.--Section 401 of title 10, United States Code, is
amended--
(1) in subsection (a), by striking paragraph (4);
(2) in subsection (b)--
(A) by striking ``(1)'' after ``(b)''; and
(B) by striking paragraph (2);
(3) in subsection (c), by striking paragraphs (2) and (3);
and
(4) in subsection (e), by striking paragraph (5).
(b) Recodification and Revision.--
(1) In general.--Chapter 20 of such title is amended by
adding at the end the following new section:
``Sec. 407. Humanitarian demining assistance: authority; limitations
``(a) Authority.--(1) Under regulations prescribed by the Secretary
of Defense, the Secretary of a military department may carry out
humanitarian demining assistance in conjunction with authorized
military operations of the armed forces in a country if the Secretary
concerned determines that the assistance will promote either--
``(A) the security interests of both the United States and
the country in which the activities are to be carried out; or
``(B) the specific operational readiness skills of the
members of the armed forces who participate in the activities.
``(2) Humanitarian demining assistance under this section shall
complement, and may not duplicate, any other form of social or economic
assistance which may be provided to the country concerned by any other
department or agency of the United States.
``(3) The Secretary of Defense shall ensure that no member of the
armed forces, while providing humanitarian demining assistance under
this section--
``(A) engages in the physical detection, lifting, or
destroying of landmines or other explosive remnants of war
(unless the member does so for the concurrent purpose of
supporting a United States military operation); or
``(B) provides such assistance as part of a military
operation that does not involve the armed forces.
``(b) Limitations.--(1) Humanitarian demining assistance may not be
provided under this section unless the Secretary of State specifically
approves the provision of such assistance.
``(2) Any authority provided under any other provision of law to
provide humanitarian demining assistance to a foreign country shall be
carried out in accordance with, and subject to, the limitations
prescribed in this section.
``(c) Expenses.--(1) Expenses incurred as a direct result of
providing humanitarian demining assistance under this section to a
foreign country shall be paid for out of funds specifically
appropriated for the purpose of the provision by the Department of
Defense of overseas humanitarian assistance.
``(2) Expenses covered by paragraph (1) include the following:
``(A) Travel, transportation, and subsistence expenses of
Department of Defense personnel providing such assistance.
``(B) The cost of any equipment, services, or supplies
acquired for the purpose of carrying out or supporting
humanitarian demining activities, including any nonlethal,
individual, or small-team equipment or supplies for clearing
landmines or other explosive remnants of war that are to be
transferred or otherwise furnished to a foreign country in
furtherance of the provision of assistance under this section.
``(3) The cost of equipment, services, and supplies provided in any
fiscal year under this section may not exceed $10,000,000.
``(d) Annual Report.--The Secretary of Defense shall include in the
annual report under section 401 of this title a separate discussion of
activities carried out under this section during the preceding fiscal
year, including--
``(1) a list of the countries in which humanitarian
demining assistance was carried out during the preceding fiscal
year; and
``(2) the amount expended in carrying out such assistance
in each such country during the preceding fiscal year.
``(e) Humanitarian Demining Assistance Defined.--In this section,
the term `humanitarian demining assistance' means detection and
clearance of landmines and other explosive remnants of war, including
activities related to the furnishing of education, training, and
technical assistance with respect to the detection and clearance of
landmines and other explosive remnants of war.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``407. Humanitarian demining assistance: authority; limitations.''.

SEC. 1204. ENHANCEMENTS TO REGIONAL DEFENSE COMBATING TERRORISM
FELLOWSHIP PROGRAM.

(a) Authorized Purposes.-- Subsection (a) of section 2249c of title
10, United States Code, is amended by striking ``associated with'' and
all that follows and inserting: ``associated with the education and
training of foreign military officers, ministry of defense officials,
or security officials at military or civilian educational institutions,
regional centers, conferences, seminars, or other training programs
conducted under the Regional Defense Combating Terrorism Fellowship
Program. Costs for which payment may be made under this section include
the costs of transportation and travel and subsistence costs.''.
(b) Annual Limitation on Amount Obligated.--Subsection (b) of such
section is amended by striking ``$20,000,000'' and inserting
``$25,000,000''.
(c) Expenditures Across Fiscal Years.--Such section is further
amended by adding at the end the following new subsection:
``(d) Obligation of Funds Across Fiscal Years.--Funds made
available for a fiscal year may be obligated for the total cost of an
education or training program conducted under subsection (a) that
begins in that fiscal year, including a program that begins in that
fiscal year and ends in the next fiscal year, so long as the duration
of the program does not exceed one year.''.
(d) Clerical Amendments.--
(1) Reference to program.--Subsection (c)(3) of such
section is amended by striking ``Regional Defense
Counterterrorism Fellowship Program'' and inserting ``program
referred to in subsection (a)''
(2) Section heading.--The heading of such section is
amended to read as follows:
``Sec. 2249c. Regional Defense Combating Terrorism Fellowship Program:
authority to use appropriated funds for costs associated
with education and training of foreign officials''.
(3) Table of sections.--The item relating to such section
in the table of sections at the beginning of subchapter I of
chapter 134 of such title is amended to read as follows

``2249c. Regional Defense Combating Terrorism Fellowship Program:
authority to use appropriated funds for
costs associated with education and
training of foreign officials.''.

SEC. 1205. CAPSTONE OVERSEAS FIELD STUDIES TRIPS TO PEOPLE'S REPUBLIC
OF CHINA AND REPUBLIC OF CHINA ON TAIWAN.

Section 2153 of title 10, United States Code, is amended by adding
at the end of the following new subsection:
``(c) Overseas Field Studies to China and Taiwan.--The Secretary of
Defense shall direct the National Defense University to ensure that
visits to China and Taiwan are an integral part of the field study
programs conducted by the university as part of the military education
course carried out pursuant to subsection (a) and that such field study
programs include annually at least one class field study trip to the
People's Republic of China and at least one class field study trip to
the Republic of China on Taiwan.''.

SEC. 1206. MILITARY EDUCATIONAL EXCHANGES BETWEEN SENIOR OFFICERS AND
OFFICIALS OF THE UNITED STATES AND TAIWAN.

(a) Defense Exchanges.--The Secretary of Defense shall undertake a
program of senior military officer and senior official exchanges with
Taiwan designed to improve Taiwan's defenses against the People's
Liberation Army of the People's Republic of China.
(b) Exchanges Described.--For purposes of this section, the term
``exchange'' means an activity, exercise, event, or observation
opportunity between Armed Forces personnel or Department of Defense
officials of the United States and armed forces personnel and officials
of Taiwan.
(c) Focus of Exchanges.--The senior military officer and senior
official exchanges undertaken pursuant to subsection (a) shall include
exchanges focused on the following, especially as they relate to
defending Taiwan against potential submarine attack and potential
missile attack:
(1) Threat analysis
(2) Military doctrine
(3) Force planning
(4) Logistical support
(5) Intelligence collection and analysis
(6) Operational tactics, techniques, and procedures.
(d) Civil-Military Affairs.--The senior military officer and senior
official exchanges undertaken pursuant to subsection (a) shall include
activities and exercises focused on civil-military relations, including
parliamentary relations.
(e) Location of Exchanges.--The senior military officer and senior
official exchanges undertaken pursuant to subsection (a) shall be
conducted in both the United States and Taiwan.
(f) Definitions.--For purposes of this section:
(1) The term ``senior military officer'' means a general or
flag officer of the Armed Forces on active duty.
(2) The term ``senior official'' means a civilian official
of the Department of Defense at the level of Deputy Assistant
Secretary or above.

Subtitle B--Nonproliferation Matters and Countries of Concern

SEC. 1211. PROCUREMENT RESTRICTIONS AGAINST FOREIGN PERSONS THAT
TRANSFER CERTAIN DEFENSE ARTICLES AND SERVICES TO THE
PEOPLE'S REPUBLIC OF CHINA.

(a) Declaration of Policy.--Congress declares that it is the policy
of the United States to deny the People's Republic of China such
defense goods and defense technology that could be used to threaten the
United States or undermine the security of Taiwan or the stability of
the Western Pacific region.
(b) Procurement Sanction.--(1) The Secretary of Defense may not
procure, by contract or otherwise, any goods or services from--
(A) any foreign person the Secretary of Defense determines
has, with actual knowledge, on or after the date of the
enactment of this Act, exported, transferred, or otherwise
provided to governmental or nongovernmental entities of the
People's Republic of China any item or class of items on the
United States Munitions List (or any item or class of items
that are identical, substantially identical, or directly
competitive to an item or class of items on the United States
Munitions List); or
(B) any foreign person the Secretary of Defense
determines--
(i) is a successor entity to a person
referred to in paragraph (1):
(ii) is a parent or subsidiary of a person
referred to in paragraph (1); or
(iii) is an affiliate of a person referred
to in paragraph (1) if that affiliate is
controlled in fact by such person.
(2) The prohibition under paragraph (1) with respect to a
foreign person shall last for a period of five years after a
determination is made by the Secretary of Defense with respect
to that person under paragraph (1)(A).
(c) Public Availability of List of Sanctioned Persons.--(1) The
Secretary of Defense shall annually publish in the Federal Register a
current list of any foreign persons sanctioned under subsection (b).
The removal of foreign persons from, and the addition of foreign
persons to, the list shall also be published.
(2) The Secretary shall maintain the list published under
paragraph (1) on the internet website of the Department of
Defense.
(c) Removal From List of Sanctioned Persons.--The Secretary of
Defense may remove a person from the list of sanctioned persons
referred to in subsection (c) only after the five-year prohibition
period imposed under subsection (b) with respect to the person has
expired.
(d) Exceptions.--(1) Subsection (b) shall not apply
(A) to contracts, or subcontracts under such
contracts, in existence on the date of the enactment of
this Act, including options under such contracts;
(B) if the Secretary of Defense determines in
writing that the person to which the sanctions would
otherwise be applied is a sole source supplier of the
goods or services being procured, that the goods or
services are essential, and that alternative sources
are not readily or reasonably available;
(C) in the case of a contract for routine servicing
and maintenance, if the Secretary of Defense determines
in writing alternative sources for performing the
contract are not readily or reasonably available; or
(D) if the Secretary of Defense determines in
writing that goods or services proposed to be procured
under the contract are essential to the national
security of the United States.
(2) Determinations under paragraph (1) shall be published
in the Federal Register.
(f) Definitions.--In this section:
(1) The term ``foreign person'' has the meaning given the
term in section 14 of the Iran and Libya Sanctions Act of 1996
(50 U.S.C. 1701 note).
(2) The term ``United States Munitions List'' means the
list referred to in section 38(a)(1) of the Arms Export Control
Act (22 U.S.C. 2778 (a)(1)).

Subtitle C--Other Matters

SEC. 1221. EXECUTION OF THE PRESIDENT'S POLICY TO MAKE AVAILABLE TO
TAIWAN DIESEL ELECTRIC SUBMARINES.

(a) Findings.--Congress makes the following findings:
(1) It is the policy of the United States under the Taiwan
Relations Act of 1979 to ``make available to Taiwan such
defense articles and defense services in such quantity as may
be necessary to enable Taiwan to maintain a sufficient self-
defense capability''.
(2) In April 2001, the President of the United States
approved for sale eight diesel electric submarines to the
Republic of China on Taiwan.
(3) The buildup of attack submarines by the People's
Republic of China threatens the stability in the Taiwan Strait
and longstanding United States national security interests in
the Western Pacific.
(4) Taiwan has a legitimate defense need for diesel
electric submarines.
(5) The sale of diesel electric submarines to Taiwan
supports stability in the Taiwan Strait and Western Pacific.
(6) The Legislative Yuan of the Republic of China on Taiwan
should make every effort to support the President of Taiwan to
fund the acquisition of diesel electric submarines from the
United States.
(7) The sale of diesel electric submarines to Taiwan is
beneficial to the health and wellbeing of the United States
shipbuilding industrial base and, therefore, United States
national security.
(b) Policy of the United States.--It shall be the policy of the
United States to make available to Taiwan plans and options for design
work and construction work on future diesel electric submarines under
the United States foreign military sales process. The availability of
such design work and construction work shall be made in a manner
consistent with United States national disclosure policy and is subject
to the provisions of the Arms Export Control Act (22 U.S.C. 2751 et
seq.) and any other export control law of the United States.
(c) Report.--Not later than 30 days after the date of the enactment
of this Act, the Secretary of Defense shall submit to the congressional
defense committees a report on the present and future efforts of the
Department of the Navy to execute the policy of the President to sell
diesel electric submarines to the Republic of China on Taiwan. The
report shall include the following:
(1) Ongoing activities by the Navy International Programs
Office, in consultation with the Defense Security and
Cooperation Agency, to make the Government of Taiwan aware of
available Foreign Military Sales options.
(2) Future activities planned by the Navy International
Programs Office, in consultation with the Defense Security and
Cooperation Agency, to make the Government of Taiwan aware of
available Foreign Military Sales options to acquire diesel
electric submarines from the United States.
(d) Definitions.--In this section:
(1) The term ``design work'' means the process by which a
submarine is designed.
(2) The term ``construction work'' means the process by
which a submarine is constructed.
(3) The term ``activities'' means all interactions between
the Government of the United States and the Government of
Taiwan.

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
SOVIET UNION

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND
FUNDS.

(a) Specification of CTR Programs.--For purposes of section 301 and
other provisions of this Act, Cooperative Threat Reduction programs are
the programs specified in section 1501(b) of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat.
2731; 50 U.S.C. 2362 note).
(b) Fiscal Year 2007 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2007 Cooperative Threat
Reduction funds'' means the funds appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative Threat
Reduction programs.
(c) Availability of Funds.--Funds appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative Threat
Reduction programs shall be available for obligation for three fiscal
years.

SEC. 1302. FUNDING ALLOCATIONS.

(a) Funding for Specific Purposes.--Of the $372,128,000 authorized
to be appropriated to the Department of Defense for fiscal year 2007 in
section 301(19) for Cooperative Threat Reduction programs, the
following amount may be obligated for the purposes specified:
(1) For strategic offensive arms elimination in Russia,
$76,985,000.
(2) For nuclear weapons storage security in Russia,
$87,100,000.
(3) For nuclear weapons transportation security in Russia,
$33,000,000.
(4) For weapons of mass destruction proliferation
prevention in the states of the former Soviet Union,
$37,486,000.
(5) For biological weapons proliferation prevention in the
former Soviet Union, $68,357,000.
(6) For chemical weapons destruction in Russia,
$42,700,000.
(7) For defense and military contacts, $8,000,000.
(8) For activities designated as Other Assessments/
Administrative Support, $18,500,000.
(b) Report on Obligation or Expenditure of Funds for Other
Purposes.--No fiscal year 2007 Cooperative Threat Reduction funds may
be obligated or expended for a purpose other than a purpose listed in
paragraphs (1) through (8) of subsection (a) until 30 days after the
date that the Secretary of Defense submits to Congress a report on the
purpose for which the funds will be obligated or expended and the
amount of funds to be obligated or expended. Nothing in the preceding
sentence shall be construed as authorizing the obligation or
expenditure of fiscal year 2007 Cooperative Threat Reduction funds for
a purpose for which the obligation or expenditure of such funds is
specifically prohibited under this title or any other provision of law.
(c) Limited Authority to Vary Individual Amounts.--
(1) In general.--Subject to paragraphs (2) and (3), in any
case in which the Secretary of Defense determines that it is
necessary to do so in the national interest, the Secretary may
obligate amounts appropriated for fiscal year 2007 for a
purpose listed in any of the paragraphs in subsection (a) in
excess of the specific amount authorized for that purpose.
(2) Notice-and-wait required.--An obligation of funds for a
purpose stated in any of the paragraphs in subsection (a) in
excess of the specific amount authorized for such purpose may
be made using the authority provided in paragraph (1) only
after--
(A) the Secretary submits to Congress notification
of the intent to do so together with a complete
discussion of the justification for doing so; and
(B) 15 days have elapsed following the date of the
notification.
(3) Restriction.--The Secretary may not, under the
authority provided in paragraph (1), obligate amounts for a
purpose stated in any of paragraphs (6) through (8) of
subsection (a) in excess of 125 percent of the specific amount
authorized for such purpose.

SEC. 1303. TEMPORARY AUTHORITY TO WAIVE LIMITATION ON FUNDING FOR
CHEMICAL WEAPONS DESTRUCTION FACILITY IN RUSSIA.

Section 1303 of the Ronald W. Reagan National Defense Authorization
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2094; 22 U.S.C.
5952 note) is amended--
(1) in subsection (b), by striking ``shall expire on
December 31, 2006, and no waiver shall remain in effect after
that date'' and inserting ``shall expire upon completion of the
Chemical Weapons Destruction Facility currently under
construction at Shchuch'ye in the Russian Federation, and no
waiver shall remain in effect after that date''; and
(2) by adding at the end the following new subsection:
``(c) Report.--Not later than 30 days after completion of the
facility referred to in subsection (b), the Secretary of Defense shall
submit to Congress a written notification that specifies the date of
completion.''.

SEC. 1304. NATIONAL ACADEMY OF SCIENCES STUDY.

(a) Study Required.--The Secretary of Defense shall enter into an
arrangement with the National Academy of Sciences under which the
Academy shall carry out a study to analyze lessons learned, past and
present challenges, and possible options in effectively managing and
facilitating threat reduction and nonproliferation projects under the
Cooperative Threat Reduction program. The study shall cover all
existing Cooperative Threat Reduction projects for securing or
eliminating nuclear, chemical, and biological weapons and related
systems in the states of the former Soviet Union.
(b) Report.--Not later than December 31, 2007, the Secretary shall
submit to Committee on Armed Services of the Senate and the Committee
on Armed Services of the House of Representatives a report on the study
carried out under subsection (a). The report shall include a review and
evaluation of each of the following matters:
(1) Project management.
(2) Interagency interaction concerning threat reduction and
nonproliferation projects of other Federal departments or
agencies.
(3) Public outreach and community involvement.
(4) Cooperation of Russia and of other states of the former
Soviet Union (including site access, visa approval, and
contractor support).
(5) Legal frameworks.
(6) Transparency.
(7) Adequacy of funding from the United States and any
Cooperative Threat Reduction program partner.
(8) Interaction with threat reduction and nonproliferation
projects of Global Partnership countries.
(c) Funding.--Of the amounts made available pursuant to the
authorization of appropriations in section 301(19) for Cooperative
Threat Reduction programs, not more than $2,000,000 shall be available
only to carry out this section.

TITLE XIV--HOMELAND DEFENSE TECHNOLOGY TRANSFER

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Creation of Homeland Defense Technology Transfer Consortium.

SEC. 1401. SHORT TITLE.

This title may be cited as the ``Homeland Defense Technology
Transfer Act of 2006''.

SEC. 1402. FINDINGS.

Congress finds the following:
(1) The Federal Government funds billions of dollars for
research each year that has the potential to meet the needs of
Federal, State, and local first responders, yet examples of
successful technology transitions are few and far between.
(2) Congress has made repeated efforts to authorize the
Department of Defense to effectively transfer its technologies
to Federal, State, and local first responders. However, while
progress has been made in implementing these authorities, this
process can be significantly improved.
(3) Although the Department of Defense Strategy for
Homeland Defense and Civil Support calls for active
participation in an interagency process that improves
interoperability and compatibility with public safety
technologies and initiatives, greater participation is needed
to ensure that all technologies used by the Department of
Defense in their homeland defense mission are interoperable and
compatible with standards being developed for public safety
technologies.
(4) Even when technologies with promise have been
identified, additional research and development efforts are
needed to adapt these technologies into readily available,
affordable products. No program with a sense of urgency to
quickly produce results exists to bridge this gap.
(5) Tragedies such as Hurricanes Katrina and Rita
demonstrate the need for prompt, decisive action by Congress to
solve a problem that has eluded attempts by the Department of
Defense to solve.
(6) Legislation is needed to codify the process for
effectively moving and adapting needed technologies from the
Department of Defense to Federal, State, and local first
responders so that the lives of the American public and
emergency responders are protected to the maximum extent
possible.

SEC. 1403. CREATION OF HOMELAND DEFENSE TECHNOLOGY TRANSFER CONSORTIUM.

(a) Authorization of Consortium.--In order to improve the speed and
effectiveness of identifying, evaluating, deploying, and transferring
to Federal, State, and local first responders technology items and
equipment in support of homeland security as required by section 1401
of the Bob Stump National Defense Authorization Act for Fiscal Year
2003 (Public Law 107-314; 50 U.S.C. 2312 note) and work towards
interoperability and compatibility of inter-agency homeland defense and
security technologies, it is urgent that the technology adaptation and
transfer process be consistent within the Department of Defense.
Towards that end, the Secretary of Defense is authorized to create a
Homeland Defense Technology Transfer Consortium.
(b) Composition of Consortium.--To contribute to the rapid
development and adoption of new technologies needed to ensure the
safety of the United States public and the welfare of emergency service
providers, the Homeland Defense Technology Transfer Consortium shall be
composed of--
(1) organizations and entities working with the Department
of Defense;
(2) Federal, State, and local first responders; and
(3) other relevant Federal agencies with established
expertise in identifying, assessing, testing, evaluating, and
training emergency response and other public safety entities.
(c) Authorities of Consortium.--
(1) Process improvements.--The Homeland Defense Technology
Transfer Consortium shall systematize--
(A) the process for the identification, assessment,
adaptation, and transition of defense technologies that
have the potential to enhance public safety and improve
homeland security, thereby assisting the Department of
Defense in meeting its statutory obligation to
identify, evaluate, deploy, and transfer to Federal,
State, and local first responders technology items and
equipment of homeland security; and
(B) the process of coordinating and acting as
liaison on behalf of the Department of Defense with
other Federal agencies as appropriate to collect and
prioritize Federal, State, and local first responder
technology requirements already gathered by those
entities.
(2) Funding recommendations.--The Consortium shall submit
recommendations to the Secretary of Defense for funding for the
development, adaptation, test and evaluation, or other needed
activities for any technology identified under paragraph (1)
with a high potential to benefit Federal, State, and local
first responders.
(3) Technology integration.--The Consortium may assist in
the integration of new technologies into appropriate first
responder training exercises to maximize their rapid adoption
as well as disseminating best practices in the profession.
(4) Interoperability and compatibility.--The Consortium,
under the direction of the Secretary of Defense, shall act as
liaison with relevant Federal agencies, as well as Federal,
State, and local first responders where appropriate, to work
towards ensuring that technologies used by the Department of
Defense in its homeland defense mission are interoperable and
compatible with standards being developed for technologies used
by Federal, State, and local first responders.
(d) Annual Report of the Consortium.--The Homeland Defense
Technology Transfer Consortium shall submit to the President and
Congress an annual report on its activities. Each report shall include,
at a minimum--
(1) a listing of specific Department of Defense and related
technologies it has identified that appear to meet needs of
Federal, State, and local first responders;
(2) the results of any tests and evaluations conducted on
particular technologies, except that no company proprietary
information may be disclosed in the report;
(3) a listing of any recommendations the Consortium has
made to the Department of Defense that developmental, adaptive,
test and evaluation, or other funding be provided related to
the development and deployment of technologies identified by
the Consortium of particular interest for meeting the needs of
emergency response providers;
(4) a listing of any technology development activities
undertaken under the authorities of subsection (c);
(5) a listing of any technologies that have been
subsequently used by Federal, State, and local first responders
as a result of activities of the Consortium; and
(6) any recommendations determined appropriate by the
Consortium on barriers to the prompt deployment of technologies
needed by Federal, State, and local first responders.
(e) Annual Report by the Secretary of Defense.--The Secretary of
Defense shall submit to the President and Congress an annual report on
activities the Department of Defense has taken to identify, test and
evaluate, or develop technologies with application to Federal, State,
and local first responders. Each report shall include, at a minimum, a
description of the activities the Department of Defense has taken
pursuant to recommendations of the Homeland Defense Technology Transfer
Consortium, including activities to fund development or testing and
evaluation of technologies created under programs of the Department.
(f) Authorization of Appropriations.--There is authorized to be
appropriated $2,500,000 for the Department of Defense Office of
Homeland Defense to fund the activities of the Homeland Defense
Technology Transfer Consortium in each of fiscal years 2007 and 2008,
for carrying out the duties of the Consortium under this section.

TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI
FREEDOM AND OPERATION ENDURING FREEDOM

SEC. 1501. PURPOSE.

The purpose of this title is to authorize estimated future
emergency supplemental appropriations for the Department of Defense for
fiscal year 2007 to provide funds for additional costs due to Operation
Iraqi Freedom and Operation Enduring Freedom.

SEC. 1502. ARMY PROCUREMENT.

Funds are hereby authorized to be appropriated for fiscal year 2007
for procurement accounts of the Army in amounts as follows:
(1) For aircraft procurement, $232,400,000.
(2) For ammunition procurement, $328,341,000.
(3) For weapons and tracked combat vehicles procurement,
$1,029,672,000.
(4) For other procurement, $2,183,430,000.

SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

(a) Navy.--Funds are hereby authorized to be appropriated for
fiscal year 2007 for procurement accounts for the Navy in amounts as
follows:
(1) For weapons procurement, $131,400,000.
(2) For other procurement, $44,700,000.
(b) Marine Corps.--Funds are hereby authorized to be appropriated
for fiscal year 2007 for the procurement account for the Marine Corps
in the amount of $636,125,000.
(c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
to be appropriated for fiscal year 2007 for the procurement account for
ammunition for the Navy and the Marine Corps in the amount of
$143,150,000.

SEC. 1504. AIR FORCE PROCUREMENT.

Funds are hereby authorized to be appropriated for fiscal year 2007
for procurement accounts for the Air Force in amounts as follows:
(1) For aircraft procurement, $201,550,000.
(2) For missile procurement, $32,650,000.
(3) For other procurement, $62,650,000.

SEC. 1505. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

Funds are hereby authorized to be appropriated for fiscal year
2007 for the procurement account for Defense-wide in the amount of
$140,200,000.

SEC. 1506. RESEARCH, DEVELOPMENT, TEST AND EVALUATION.

Funds are hereby authorized to be appropriated for fiscal year
2007 for the use of the Department of Defense for research,
development, test and evaluation as follows:
(1) For the Army, $25,500,000.
(2) For Defense-wide activities, $5,000,000.
(3) For the Air Force, $7,000,000.

SEC. 1507. OPERATION AND MAINTENANCE.

Funds are hereby authorized to be appropriated for fiscal year 2007
for the use of the Armed Forces for expenses, not otherwise provided
for, for operation and maintenance, in amounts as follows:
(1) For the Army, $22,396,986,000.
(2) For the Navy, $1,834,560,000.
(3) For the Marine Corps, $1,485,920,000.
(4) For the Air Force, $2,822,998,000.
(5) For Defense-wide activities, $3,377,402,000.
(6) For the Army National Guard, $50,000,000.
(7) For the Air National Guard, $15,400,000.

SEC. 1508. DEFENSE HEALTH PROGRAM.

Funds are hereby authorized to be appropriated for the Department
of Defense for fiscal year 2007 for expenses, not otherwise provided
for, the Defense Health Program, in the amount of $950,200,000 for
operation and maintenance.

SEC. 1509. CLASSIFIED PROGRAMS.

Funds are hereby authorized to be appropriated to the Department of
Defense for fiscal year 2007 for Classified Programs, in the amount of
$2,500,000,000.

SEC. 1510. MILITARY PERSONNEL.

There is hereby authorized to be appropriated to the Department of
Defense for military personnel accounts for fiscal year 2007 a total of
$9,362,766,000.

SEC. 1511. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

The amounts authorized to be appropriated by this title are in
addition to amounts otherwise authorized to be appropriated by this
Act.

SEC. 1512. TRANSFER AUTHORITY.

(a) Authority to Transfer Authorizations.--
(1) Authority.--Upon determination by the Secretary of
Defense that such action is necessary in the national interest,
the Secretary may transfer amounts of authorizations made
available to the Department of Defense in this title for fiscal
year 2007 between any such authorizations for that fiscal year
(or any subdivisions thereof). Amounts of authorizations so
transferred shall be merged with and be available for the same
purposes as the authorization to which transferred.
(2) Limitation.--The total amount of authorizations that
the Secretary may transfer under the authority of this section
may not exceed $3,000,000,000. The transfer authority provided
in this section is in addition to any other transfer authority
available to the Secretary of Defense.
(b) Limitations.--The authority provided by this section to
transfer authorizations--
(1) may only be used to provide authority for items that
have a higher priority than the items from which authority is
transferred;
(2) may not be used to provide authority for an item that
has been denied authorization by Congress; and
(3) may not be combined with the authority under section
1001.
(c) Effect on Authorization Amounts.--A transfer made from one
account to another under the authority of this section shall be deemed
to increase the amount authorized for the account to which the amount
is transferred by an amount equal to the amount transferred.
(d) Notice to Congress.--A transfer may be made under the authority
of this section only after the Secretary of Defense--
(1) consults with the chairmen and ranking members of the
congressional defense committees with respect to the proposed
transfer; and
(2) after such consultation, notifies those committees in
writing of the proposed transfer not less than five days before
the transfer is made.

SEC. 1513. AVAILABILITY OF FUNDS.

Funds in this title shall be made available for obligation to the
Army, Navy, Marine Corps, Air Force, and Defense-wide components by the
end of the second quarter of fiscal year 2007.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

This division may be cited as the ``Joel Hefley Military
Construction Authorization Act for Fiscal Year 2007''.

TITLE I--ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2104(a)(1), the
Secretary of the Army may acquire real property and carry out military
construction projects for the installations or locations inside the
United States, and in the amounts, set forth in the following table:

Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
State Installation or Location Amount
----------------------------------------------------------------------------------------------------------------
Alabama................................... Redstone Arsenal.................................. $4,300,000
Alaska.................................... Fort Richardson................................... $70,656,000
California................................ Fort Irwin........................................ $18,200,000
Colorado.................................. Fort Carson....................................... $30,800,000
Georgia................................... Fort Gillem....................................... $15,000,000
Fort Stewart/Hunter Army Air Field................ $95,300,000
Hawaii.................................... Schofield Barracks................................ $54,500,000
Kansas.................................... Fort Leavenworth.................................. $23,200,000
Fort Riley........................................ $37,200,000
Kentucky.................................. Blue Grass Army Depot............................. $3,500,000
Fort Campbell..................................... $123,500,000
Louisiana................................. Fort Polk......................................... $6,100,000
Maryland.................................. Fort Detrick...................................... $12,400,000
Missouri.................................. Fort Leonard Wood................................. $27,600,000
New Jersey................................ Picatinny Arsenal................................. $9,900,000
New York.................................. Fort Drum......................................... $218,600,000
North Carolina............................ Fort Bragg........................................ $89,000,000
Sunny Point Military Ocean Terminal............... $46,000,000
Oklahoma.................................. McAlester Army Ammunition Plant................... $3,050,000
Texas..................................... Corpus Christi Army Depot......................... $12,200,000
Fort Bliss........................................ $8,200,000
Fort Hood......................................... $93,000,000
Utah...................................... Dugway Proving Ground............................. $14,400,000
Virginia.................................. Fort Lee.......................................... $4,150,000
Washington................................ Fort Lewis........................................ $502,600,000
----------------------------------------------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2104(a)(2), the
Secretary of the Army may acquire real property and carry out military
construction projects for the installations or locations outside the
United States, and in the amounts, set forth in the following table:

Army: Outside the United States
------------------------------------------------------------------------
Country Installation or Location Amount
------------------------------------------------------------------------
Germany...................... Grafenwoehr.............. $157,632,000
Vilseck.................. $19,000,000
Italy........................ Vicenza.................. $223,000,000
Japan........................ Camp Hansen.............. $7,150,000
Korea........................ Camp Humphreys........... $77,000,000
Yongpyong................ $7,400,000
------------------------------------------------------------------------

(c) Unspecified Worldwide.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2104(a)(3), the
Secretary of the Army may acquire real property and carry out military
construction projects for unspecified installations or locations in the
amount set forth in the following table:

Army: Unspecified Worldwide
------------------------------------------------------------------------
Location Installation or Location Amount
------------------------------------------------------------------------
Unspecified Worldwide.... $34,800,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(6)(A), the Secretary of the Army may construct or acquire
family housing units (including land acquisition and supporting
facilities) at the installations or locations, in the number of units,
and in the amounts set forth in the following table:

Army: Family Housing
----------------------------------------------------------------------------------------------------------------
State Installation or Location Units Amount
----------------------------------------------------------------------------------------------------------------
Alaska.................................. Fort Richardson................ 162.................. $70,000,000
Fort Wainwright................ 234.................. $132,000,000
Arizona................................. Fort Huachuca.................. 119.................. $32,000,000
Arkansas................................ Pine Bluff Arsensal............ 10................... $2,900,000
Wisconsin............................... Fort McCoy..................... 13................... $4,900,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2104(a)(6)(A), the
Secretary of the Army may carry out architectural and engineering
services and construction design activities with respect to the
construction or improvement of family housing units in an amount not to
exceed $16,332,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2104(6)(5)(A), the Secretary of the Army may improve existing
military family housing units in an amount not to exceed $320,659,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

TITLE II--NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2204(a)(1), the
Secretary of the Navy may acquire real property and carry out military
construction projects for the installations or locations inside the
United States, and in the amounts, set forth in the following table:

Navy: Inside the United States
----------------------------------------------------------------------------------------------------------------
State Installation or Location Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................... Marine Corps Air Station, Yuma.................... $5,966,000
California................................ Marine Corps Air Station, Camp Pendleton.......... $6,412,000
Marine Corps Air Station, Miramar................. $2,968,000
Marine Corps Base, Camp Pendleton................. $106,142,000
Marine Corps Base, Twentynine Palms............... $27,217,000
Naval Air Station, North Island................... $21,535,000
Naval Support Activity, Monterey.................. $7,380,000
Connecticut............................... Naval Submarine Base, New London.................. $9,580,000
Florida................................... Naval Air Station, Pensacola...................... $13,486,000
Georgia................................... Marine Corps Logistics Base, Albany............... $70,540,000
Naval Submarine Base, Kings Bay................... $20,282,000
Hawaii.................................... Naval Base, Pearl Harbor.......................... $48,338,000
Naval Magazine, Pearl Harbor...................... $6,010,000
Indiana................................... Naval Support Activity, Crane..................... $6,730,000
Maryland.................................. Naval Air Station, Patuxent River................. $16,316,000
National Maritime Intelligence Center, Suitland... $67,939,000
North Carolina............................ Marine Corps Air Station, Cherry Point............ $2,790,000
Marine Corps Air Station, New River............... $21,500,000
Marine Corps Base, Camp Lejeune................... $160,904,000
South Carolina............................ Marine Corps Air Station, Beaufort................ $25,575,000
Virginia.................................. Marine Corps Base, Quantico....................... $30,628,000
Naval Shipyard, Norfolk........................... $34,952,000
Naval Station, Norfolk............................ $12,062,000
Naval Support Activity, Norfolk................... $41,712,000
Washington................................ Naval Base, Kitsap................................ $17,617,000
Naval Air Station, Whidbey Island................. $67,303,000
----------------------------------------------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2204(a)(2), the
Secretary of the Navy may acquire real property and carry out military
construction projects for the installations or locations outside the
United States, and in the amounts, set forth in the following table:

Navy: Outside the United States
------------------------------------------------------------------------
Country Installation or Location Amount
------------------------------------------------------------------------
Diego Garcia................. Diego Garcia............. $37,473,000
Italy........................ Naval Air Station, $13,051,000
Sigonella.
------------------------------------------------------------------------

(c) Unspecified Worldwide.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2204(a)(3), the
Secretary of the Navy may acquire real property and carry out military
construction projects for unspecified installations or locations in the
amount set forth in the following table:

Navy: Unspecified Worldwide
------------------------------------------------------------------------
Location Project Amount
------------------------------------------------------------------------
Helicopter Support $12,185,000
Facility.
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(6)(A), the Secretary of the Navy may construct or acquire
family housing units (including land acquisition and supporting
facilities) at the installations, in the number of units, and in the
amounts set forth in the following table:

Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
Location Installation Units Amount
----------------------------------------------------------------------------------------------------------------
California.............................. Marine Corps Log. Base, Barstow 74................... $27,851,000
Guam.................................... Naval Station, Guam........... 176.................. $98,174,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2204(a)(6)(A), the
Secretary of the Navy may carry out architectural and engineering
services and construction design activities with respect to the
construction or improvement of military family housing units in an
amount not to exceed $2,785,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2204(a)(6)(A), the Secretary of the Navy may improve existing
military family housing units in an amount not to exceed $180,146,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

(a) Authorization of Appropriations.--Funds are hereby authorized
to be appropriated for fiscal years beginning after September 30, 2006,
for military construction, land acquisition, and military family
housing functions of the Department of the Navy in the total amount of
$2,037,953,000, as follows:
(1) For military construction projects inside the United
States authorized by section 2201(a), $764,572,000,000.
(2) For military construction projects outside the United
States authorized by section 2201(b), $50,524,000.
(3) For military construction projects at unspecified
worldwide locations authorized by section 2201(c), $12,185,000.
(4) For unspecified minor military construction projects
authorized by section 2805 of title 10, United States Code,
$8,939,000.
(5) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $72,857,000.
(6) For military family housing functions:
(A) For construction and acquisition, planning and
design, and improvement of military family housing and
facilities, $308,956,000.
(B) For support of military family housing
(including functions described in section 2833 of title
10, United States Code), $509,126,000.
(7) For the construction of increment 2 of a reclamation
and conveyance project for Marine Corps Base, Camp Pendleton,
California, authorized by section 2201(a) of the Military
Construction Authorization Act of Fiscal Year 2006 (division B
of Public Law 109-163; 119 Stat. 3490), $33,290,000.
(8) For the construction of increment 2 of a helicopter
hangar replacement at Naval Air Station, Jacksonville, Florida,
authorized by section 2201(a) of the Military Construction
Authorization Act for Fiscal Year 2006 (division B of Public
Law 109-163; 119 Stat. 3489), $43,250,000.
(9) For the construction of increment 2 of recruit training
barracks infrastructure upgrades at Recruit Training Command,
Great Lakes, Illinois, authorized by section 2201(a) of the
Military Construction Authorization Act for Fiscal Year 2006
(division B of Public Law 109-163; 119 Stat. 3490),
$23,589,000.
(10) For the construction of increment 2 of a field house
at the United States Naval Academy, Annapolis, Maryland,
authorized by section 2201(a) of the Military Construction
Authorization Act of Fiscal Year 2006 (division B of Public Law
109-163; 119 Stat. 3490), $21,685,000.
(11) For the construction of increment 2 of the replacement
of Ship Repair Pier 3 at Naval Station, Norfolk, Virginia,
authorized by section 2201(a) of the Military Construction
Authorization Act of Fiscal Year 2006 (division B of Public Law
109-163; 119 Stat. 3490), $30,939,000.
(12) For the construction of increment 2 of an addition to
Hockmuth Hall, Marine Corps Base, Quantico, Virginia,
authorized by section 2201(a) of the Military Construction
Authorization Act of Fiscal Year 2006 (division B of Public Law
109-163; 119 Stat. 3490), $10,159,000.
(13) For the construction of increment 2 of wharf upgrades
at Naval Station Guam, Marianas Islands, authorized by section
2201(b) of the Military Construction Authorization Act for
Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat.
3490), $29,772,000.
(14) For the construction of increment 2 of wharf upgrades
at Yokosuka, Japan, authorized by section 2201(b) of the
Military Construction Authorization Act of Fiscal Year 2006
(division B of Public Law 109-163; 119 Stat. 3490),
$44,360,000.
(15) For the construction of increment 2 of bachelor
quarters at Naval Station, Everett, Washington, authorized by
section 2201(a) of the Military Construction Authorization Act
of Fiscal Year 2006 (division B of Public Law 109-163; 119
Stat. 3490), $20,917,000.
(16) For the construction of increment 3 of the limited
area production and storage complex at Strategic Weapons
Facility Pacific, Bangor, Washington, authorized by section
2201(a) of the Military Construction Authorization Act for
Fiscal Year 2005 (division B of Public Law 108-375; 118 Stat.
2105), as amended by section 2206 of this Act, $14,274,000.
(17) For the construction of the next increment of the
outlaying landing field facilities at Washington County, North
Carolina, authorized by section 2201(a) of the Military
Construction Authorization Act for Fiscal Year 2004 (division B
of Public Law 108-136; 117 Stat. 1704), as amended by section
2205(a) of this Act, $7,926,000.
(18) For the construction of increment 4 of pier 11
replacement at Naval Station, Norfolk, Virginia, authorized by
section 2201(a) of the Military Construction Authorization Act
for Fiscal Year 2004 (division B of Public Law 108-136; 117
Stat. 1704), $30,633,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title
10, United States Code, and any other cost variation authorized by law,
the total cost of all projects carried out under section 2201 of this
Act may not exceed the sum of the following:
(1) The total amount authorized to be appropriated under
paragraphs (1), (2), and (3) of subsection (a).
(2) $56,159,000 (the balance of the amount authorized under
section 2201(a) for construction of an addition to the National
Maritime Intelligence Center, Suitland, Maryland).
(3) $31,153,000 (the balance of the amount authorized under
section 2201(a) to recapitalize Hangar 5 at Naval Air Station,
Whidbey Island, Washington).

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2004 AND 2005 PROJECTS.

(a) Fiscal Year 2004 Inside the United States Project.--
(1) Modification.--The table in section 2201(a) of the
Military Construction Authorization Act for Fiscal Year 2004
(division B of Public Law 108-136; 117 Stat. 1704), as amended
by section 2205 of the Military Construction Authorization Act
for Fiscal Year 2006 (division B of Public Law 109-163; 119
Stat. 3492), is amended--
(A) at the end of the items relating to North
Carolina, by inserting a new item entitled ``Navy
Outlying Landing Field, Washington County'' in the
amount of ``$193,260,000'';
(B) by striking the item relating to Various
Locations, CONUS; and
(C) by striking the amount identified as the total
in the amount column and inserting ``$1,489,424,000''.
(2) Conforming amendments.--Section 2204(b)(6) of that Act
(117 Stat. 1706) is amended--
(A) by striking ``$28,750,000'' and inserting
``$165,650,000''; and
(B) by striking ``outlying landing field
facilities, various locations in the continental United
States'' and inserting ``an outlying landing field in
Washington County, North Carolina''.
(b) Fiscal Year 2005 Inside the United States Project.--
(1) Modification.--The table in section 2201(a) of the
Military Construction Authorization Act for Fiscal Year 2005
(division B of Public Law 108-375; 118 Stat. 2105), as amended
by section 2206 of the Military Construction Authorization Act
for Fiscal Year 2006 (division B of Public Law 109-163; 119
Stat. 3493), is amended--
(A) by striking the item relating to Navy Outlying
Landing Field, Washington County, North Carolina; and
(B) by striking the amount identified as the total
in the amount column and inserting ``$825,479,000''.
(2) Conforming amendments.--Section 2204 of that Act (118
Stat. 2107), as amended by section 2206 of the Military
Construction Authorization Act for Fiscal Year 2006 (division B
of Public Law 109-163; 119 Stat. 3493), is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking
``$752,927,000'' and inserting ``722,927,000'';
and
(ii) by adding at the end the following new
paragraph:
``(10) For the construction of increment 2 of the Navy
outlying landing field in Washington County, North Carolina,
authorized by section 2201(a) of the Military Construction
Authorization Act for Fiscal Year 2004 (division B of Public
Law 108-136; 117 Stat. 1704), as amended by section 2205(a) of
the Military Construction Authorization Act for Fiscal Year
2007, $30,000,000.''; and
(B) in subsection (b), by striking paragraph (3).

TITLE III--AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION
PROJECTS.

(a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2304(a)(1), the
Secretary of the Air Force may acquire real property and carry out
military construction projects for the installations or locations
inside the United States, and in the amounts, set forth in the
following table:

Air Force: Inside the United States
----------------------------------------------------------------------------------------------------------------
State Installation or Location Amount
----------------------------------------------------------------------------------------------------------------
Alaska...................................... Eielson Air Force Base.......................... $38,300,000
Elmendorf Air Force Base........................ $56,100,000
Arizona..................................... Davis-Monthan Air Force Base.................... $11,800,000
Arkansas.................................... Little Rock Air Force Base...................... $9,800,000
California.................................. Beale Air Force Base............................ $28,000,000
Travis Air Force Base........................... $73,900,000
Colorado.................................... Buckley Air Force Base.......................... $10,700,000
Peterson Air Force Base......................... $4,900,000
Schriever Air Force Base........................ $21,000,000
Delaware.................................... Dover Air Force Base............................ $26,400,000
Florida..................................... Eglin Air Force Base............................ $30,350,000
Hurlburt Field.................................. $32,950,000
MacDill Air Force Base.......................... $71,000,000
Tyndall Air Force Base.......................... $8,200,000
Georgia..................................... Robins Air Force Base........................... $45,600,000
Hawaii...................................... Hickam Air Force Base........................... $28,538,000
Illinois.................................... Scott Air Force Base............................ $20,000,000
Kansas...................................... McConnell Air Force Base........................ $3,875,000
Kentucky.................................... Fort Knox....................................... $3,500,000
Montana..................................... Malmstrom Air Force Base........................ $5,700,000
Nevada...................................... Indian Springs Auxiliary Field.................. $49,923,000
New Jersey.................................. McGuire Air Force Base.......................... $28,500,000
Oklahoma.................................... Altus Air Force Base............................ $1,500,000
Tinker Air Force Base.......................... $5,700,000
South Carolina.............................. Shaw Air Force Base............................. $31,500,000
South Dakota................................ Ellsworth Air Force Base....................... $3,000,000
Texas....................................... Fort Bliss...................................... $8,500,000
Lackland Air Force Base......................... $13,200,000
Laughlin Air Force Base......................... $12,600,000
Sheppard Air Force Base......................... $7,000,000
Utah........................................ Hill Air Force Base............................. $53,400,000
Virginia.................................... Langley Air Force Base.......................... $57,700,000
Washington.................................. Fairchild Air Force Base....................... $4,250,000
Wyoming..................................... Francis E. Warren Air Force Base................ $11,000,000
----------------------------------------------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2304(a)(2), the
Secretary of the Air Force may acquire real property and carry out
military construction projects for the installations or locations
outside the United States, and in the amounts, set forth in the
following table:

Air Force: Outside the United States
------------------------------------------------------------------------
Country Installation or Location Amount
------------------------------------------------------------------------
Germany...................... Ramstein Air Base........ $53,150,000
Guam......................... Andersen Air Base........ $80,800,000
Korea........................ Kunsan Air Base.......... $46,700,000
Osan Air Base............ $2,156,000
------------------------------------------------------------------------

(c) Unspecified Worldwide.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2304(a)(3), the
Secretary of the Air Force may acquire real property and carry out
military construction projects for unspecified installations or
locations in the amount set forth in the following table:

Air Force: Unspecified Worldwide
------------------------------------------------------------------------
Location Installation or Location Amount
------------------------------------------------------------------------
Unspecified Worldwide.... $35,677,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(6)(A), the Secretary of the Air Force may construct or acquire
family housing units (including land acquisition and supporting
facilities) at the installations or locations, in the number of units,
and in the amounts set forth in the following table:

Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country Installation or Location Units Amount
----------------------------------------------------------------------------------------------------------------
Alaska.................................. Eielson Air Force Base........... 129................ $87,414,000
Idaho................................... Mountain Home Air Force Base..... 457................ $107,800,000
Missouri................................ Whiteman Air Force Base.......... 116................ $39,270,000
Montana................................. Malmstrom Air Force Base......... 493................ $140,252,000
North Carolina.......................... Seymour Johnson Air Force Base... 56................. $22,956,000
North Dakota............................ Minot Air Force Base............. 575................ $171,188,000
Texas................................... Dyess Air Force Base............. 199................ $49,215,000
Germany................................. Ramstein Air Base................ 101................ $59,488,000
Spangdahlem Air Base............. 60................. $39,294,000
United Kingdom.......................... Royal Air Force Lakenheath....... 74................. $35,282,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2304(a)(6)(A), the
Secretary of the Air Force may carry out architectural and engineering
services and construction design activities with respect to the
construction or improvement of military family housing units in an
amount not to exceed $13,202,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2304(a)(6)(A), the Secretary of the Air Force may improve
existing military family housing units in an amount not to exceed
$403,777,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

TITLE IV--DEFENSE AGENCIES

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2405(a)(1), the
Secretary of Defense may acquire real property and carry out military
construction projects for the installations or locations inside the
United States, and in the amounts, set forth in the following tables:

Defense Education Activity
----------------------------------------------------------------------------------------------------------------
State Installation or Location Amount
----------------------------------------------------------------------------------------------------------------
Kentucky...................................... Fort Knox....................................... $18,108,000
----------------------------------------------------------------------------------------------------------------

Defense Logistics Agency
------------------------------------------------------------------------
State Installation or Location Amount
------------------------------------------------------------------------
Arizona...................... Marine Corps Air Station, $8,715,000
Yuma.
California................... Beale Air Force Base..... $9,000,000
Pennsylvania................. Defense Distribution $8,900,000
Depot, New Cumberland.
Viginia...................... Fort Belvoir............. $5,500,000
Washington................... Naval Air Station, $26,000,000
Whidbey Island.
------------------------------------------------------------------------

National Security Agency
------------------------------------------------------------------------
State Installation or Location Amount
------------------------------------------------------------------------
Maryland..................... Fort Meade............... $4,517,000
------------------------------------------------------------------------

Special Operations Command
------------------------------------------------------------------------
State Installation or Location Amount
------------------------------------------------------------------------
California.................. Marine Corps Base, Camp $24,400,000
Pendleton.
Colorado.................... Fort Carson............... $26,100,000
Florida..................... Hurlburt Field............ $14,482,000
MacDill Air Force Base.... $27,300,000
Kentucky.................... Fort Campbell............. $24,500,000
Mississippi................. Stennis Space Center...... $10,200,000
North Carolina.............. Fort Bragg................ $67,044,000
Marine Corps Base, Camp $51,600,000
Lejeune.
Virginia.................... Naval Air Base, Little $22,000,000
Creek.
------------------------------------------------------------------------

TRICARE Management Activity
----------------------------------------------------------------------------------------------------------------
State Installation or Location Amount
----------------------------------------------------------------------------------------------------------------
Alaska....................................... Fort Richardson.................................. $37,200,000
California................................... Fort Irwin....................................... $6,050,000
Florida...................................... MacDill Air Force Base........................... $92,000,000
Naval Hospital, Jacksonville..................... $16,000,000
Hawaii....................................... Naval Base, Pearl Harbor......................... $7,700,000
Illinois..................................... Naval Hospital, Great Lakes...................... $20,000,000
Maryland..................................... Fort Detrick..................................... $550,000,000
New York..................................... Fort Drum........................................ $9,700,000
Texas........................................ Fort Hood........................................ $18,000,000
----------------------------------------------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2405(a)(2), the
Secretary of Defense may acquire real property and carry out military
construction projects for the installations or locations outside the
United States, and in the amounts, set forth in the following tables:

Defense Education Activity
----------------------------------------------------------------------------------------------------------------
Country Installation or Location Amount
----------------------------------------------------------------------------------------------------------------
Italy......................................... Vicenza......................................... $47,210,000
Korea......................................... Osan Air Base................................... $4,589,000
Spain......................................... Naval Station, Rota............................. $23,048,000
----------------------------------------------------------------------------------------------------------------

Defense Logistics Agency
----------------------------------------------------------------------------------------------------------------
Country or Possession Installation or Location Amount
----------------------------------------------------------------------------------------------------------------
Japan...................................... Okinawa............................................ $5,000,000
Wake Island................................ ................................................... $2,600,000
----------------------------------------------------------------------------------------------------------------

Special Operations Command
------------------------------------------------------------------------
Country Installation or Location Amount
------------------------------------------------------------------------
Qatar........................ Al Udeid AB.............. $44,500,000
------------------------------------------------------------------------

TRICARE Management Activity
------------------------------------------------------------------------
Country Installation or Location Amount
------------------------------------------------------------------------
Italy........................ Vicenza.................. $52,000,000
------------------------------------------------------------------------

SEC. 2402. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2405(a)(9)(A), the Secretary of Defense may construct or acquire family
housing units (including land acquisition and supporting facilities) at
the location, in the number of units, and in the amount set forth in
the following table:

Defense Logistics Agency: Family Housing
----------------------------------------------------------------------------------------------------------------
State Location Units Amount
----------------------------------------------------------------------------------------------------------------
Virginia................................ Richmond International Airport. 25................... $7,840,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2405(a)(9)(A), the
Secretary of Defense may carry out architectural and engineering
services and construction design activities with respect to the
construction or improvement of military family housing units in an
amount not to exceed $200,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to the authorization of
appropriations in section 2405(a)(6), the Secretary of Defense may
carry out energy conservation projects under section 2865 of title 10,
United States Code, in the amount of $55,000,000.

SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES FUNDED
THROUGH DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.

(a) Authorized Activities.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2405(a)(8), the
Secretary of Defense may carry out base closure and realignment
activities, including real property acquisition and military
construction projects, as authorized by the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note) and funded through the Department of Defense Base
Closure Account 2005 established by section 2906A of such Act, in the
amount of $5,902,723,000.
(b) Conforming Amendments to Fiscal Year 2006 Authorizations.--
(1) Authorized activities.--Title XXIV of the Military
Construction Authorization Act for Fiscal Year 2006 (division B
of Public Law 109-163; 119 Stat. 3496) is amended by adding at
the end the following new section:

``SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES FUNDED
THROUGH DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.

``Using amounts appropriated pursuant to the authorization of
appropriations in section 2403(a)(7), the Secretary of Defense may
carry out base closure and realignment activities, including real
property acquisition and military construction projects, as authorized
by the Defense Base Closure and Realignment Act of 1990 (part A of
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) and funded
through the Department of Defense Base Closure Account 2005 established
by section 2906A of such Act, in the amount of $2,035,466,000.''.
(2) Authorization of appropriations and limitations.--
Section 2403 of that Act (119 Stat. 3499) is amended--
(A) in subsection (a)(7)--
(i) by striking ``as authorized by the
Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101-
510; 10 U.S.C. 2687 note)'' and inserting
``authorized by section 2404 of this Act''; and
(ii) by striking ``section 2906 of such
Act'' and inserting ``section 2906A of the
Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101-
510; 10 U.S.C. 2687 note)'';
(B) by redesignating subsection (c) as subsection
(d); and
(C) by inserting after subsection (b) the following
new subsection (c):
``(c) Limitation on Total Cost of Base Closure and Realignment
Activities.--Notwithstanding the cost variations authorized by section
2853 of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all base closure and realignment
activities, including real property acquisition and military
construction projects, carried out under section 2404 of this Act may
not exceed the sum of the following:
``(1) The total amount authorized to be appropriated under
subsection (a)(7).
``(2) $531,000,000 (the balance of the amount authorized
under section 2404 for base closure and realignment
activities).''.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

(a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 2006, for military
construction, land acquisition, and military family housing functions
of the Department of Defense (other than the military departments) in
the total amount of $7,160,356,000, as follows:
(1) For military construction projects inside the United
States authorized by section 2401(a), $537,616,000.
(2) For military construction projects outside the United
States authorized by section 2401(b), $163,197,000.
(3) For unspecified minor military construction projects
under section 2805 of title 10, United States Code,
$21,672,000.
(4) For contingency construction projects of the Secretary
of Defense under section 2804 of title 10, United States Code,
$10,000,000.
(5) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $172,950,000.
(6) For energy conservation projects authorized by section
2403 of this Act, $55,000,000.
(7) For base closure and realignment activities as
authorized by the Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C.
2687 note) and funded through the Department of Defense Base
Closure Account 1990 established by section 2906 of such Act,
$191,220,000.
(8) For base closure and realignment activities authorized
by section 2404 of this Act and funded through the Department
of Defense Base Closure Account 2005 established by section
2906A of the Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note), $5,236,223,000.
(9) For military family housing functions:
(A) For construction and acquisition, planning and
design, and improvement of military family housing and
facilities, $8,808,000.
(B) For support of military family housing
(including functions described in section 2833 of title
10, United States Code), $48,506,000.
(C) For credit to the Department of Defense Family
Housing Improvement Fund established by section
2883(a)(1) of title 10, United States Code, $2,500,000
(10) For the construction of increment 2 of the regional
security operations center at Augusta, Georgia, authorized by
section 2401(a) of the Military Construction Authorization Act
of Fiscal Year 2006 (division B of Public Law 109-163; 119
Stat. 3497), as amended by section 2406 of this Act,
$87,118,000.
(11) For the construction of increment 2 of the regional
security operations center at Kunia, Hawaii, authorized by
section 2401(a) of the Military Construction Authorization Act
of Fiscal Year 2006 (division B of Public Law 109-163; 119
Stat. 3497), $47,016,000.
(12) For the construction of increment 2 of the classified
material conversion facility at Fort Meade, Maryland,
authorized by section 2401(a) of the Military Construction
Authorization Act of Fiscal Year 2006 (division B of Public Law
109-163; 119 Stat. 3497), $11,151,000.
(13) For the construction of increment 2 of an operations
building, Royal Air Force Menwith Hill Station, United Kingdom,
authorized by section 2401(b) of the Military Construction
Authorization Act of Fiscal Year 2006 (division B of Public Law
109-163; 119 Stat. 3498), as amended by section 2406 of this
Act, $46,386,000.
(14) For the construction of the second increment of
certain base closure and realignment activities authorized by
section 2404 of the Military Construction Authorization Act of
Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat.
3500), as added by section 2404(b) of this Act, $390,000,000.
(15) For the construction of increment 7 of a munitions
demilitarization facility at Blue Grass Army Depot, Kentucky,
authorized by section 2401(a) of the Military Construction
Authorization Act for Fiscal Year 2000 (division B of Public
Law 106-65; 113 Stat. 835), as amended by section 2405 of the
Military Construction Authorization Act of 2002 (division B of
Public Law 107-107; 115 Stat. 1298), and section 2405 of the
Military Construction Authorization Act for Fiscal Year 2003
(division B of Public Law 107-314; 116 Stat. 2698),
$89,157,000.
(16) For the construction of increment 8 of a munitions
demilitarization facility at Pueblo Chemical Activity,
Colorado, authorized by section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 1997 (division B
of Public Law 104-201; 110 Stat. 2775), as amended by section
2406 of the Military Construction Authorization Act for Fiscal
Year 2000 (division B of Public Law 106-65; 113 Stat. 839), and
section 2407 of the Military Construction Authorization Act for
Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat.
2698), $41,836,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title
10, United States Code, and any other cost variation authorized by law,
the total cost of all projects carried out under section 2401 of this
Act may not exceed the sum of the following:
(1) The total amount authorized to be appropriated under
paragraphs (1) and (2) of subsection (a).
(2) $46,400,000 (the balance of the amount authorized under
section 2401(a) for construction of a health clinic at MacDill
Air Force Base, Florida).
(3) $521,000,000 (the balance of the amount authorized
under section 2401(a) for stage 1 of the replacement of the
Army Medical Research Institute of Infectious Diseases at Fort
Detrick, Maryland).
(c) Limitation on Total Cost of Base Closure and Realignment
Activities.--Notwithstanding the cost variations authorized by section
2853 of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all base closure and realignment
activities, including real property acquisition and military
construction projects, carried out under section 2404(a) of this Act
may not exceed the sum of the following:
(1) The total amount authorized to be appropriated under
subsection (a)(8).
(2) $666,500,000 (the balance of the amount authorized
under section 2404(a) for base closure and realignment
activities).
(d) Notice and Wait Requirement Applicable to Obligation of Funds
for Base Closure and Realignment Activities.--Funds appropriated
pursuant to the authorization of appropriations in subsection (a)(8)
may not be obligated until--
(1) a period of 21 days has expired following the date on
which the Secretary of Defense submits to the congressional
defense committees a report describing the specific programs,
projects, and activities for which the funds are to be
obligated; or
(2) if over sooner, a period of 14 days has expired
following the date on which a copy of the report is provided in
an electronic medium pursuant to section 480 of title 10,
United States Code.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2006 PROJECTS.

(a) Modification of Inside the United States National Security
Agency Projects.--The table relating to the National Security Agency in
subsection (a) of section 2401 of the Military Construction
Authorization Act for Fiscal Year 2006 (division B of Public Law 109-
163; 119 Stat. 3497) is amended--
(1) in the item relating to Augusta, Georgia, by striking
``$61,466,000'' in the amount column and inserting
``$340,836,000''; and
(2) in the item relating to Kunia, Hawaii, by striking
``$305,000,000'' in the amount column and inserting
``$350,490,000''.
(b) Modification of Outside the United States National Security
Agency Project.--The table relating to the National Security Agency in
subsection (b) of such section (119 Stat. 3498) is amended in the item
relating to Menwith Hill, United Kingdom, by striking ``$86,354,000''
in the amount column and inserting ``$87,752,000''.
(c) Conforming Amendments.--Section 2403(b) of that Act (119 Stat.
3500) is amended--
(1) in paragraph (2), by striking ``$12,500,000'' and
inserting ``$291,870,000'';
(2) in paragraph (3), by striking ``$256,034,000'' and
inserting ``$301,524,000''; and
(3) in paragraph (5), by striking ``$44,657,000'' and
inserting ``$46,055,000''.

TITLE V--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

The Secretary of Defense may make contributions for the North
Atlantic Treaty Organization Security Investment program as provided in
section 2806 of title 10, United States Code, in an amount not to
exceed the sum of the amount authorized to be appropriated for this
purpose in section 2502 and the amount collected from the North
Atlantic Treaty Organization as a result of construction previously
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

Funds are hereby authorized to be appropriated for fiscal years
beginning after September 30, 2006, for contributions by the Secretary
of Defense under section 2806 of title 10, United States Code, for the
share of the United States of the cost of projects for the North
Atlantic Treaty Organization Security Investment program authorized by
section 2501, in the amount of $200,985,000.

TITLE VI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land
acquisition projects.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

Funds are hereby authorized to be appropriated for fiscal years
beginning after September 30, 2006, for the costs of acquisition,
architectural and engineering services, and construction of facilities
for the Guard and Reserve Forces, and for contributions therefor, under
chapter 1803 of title 10, United States Code (including the cost of
acquisition of land for those facilities), in the following amounts:
(1) For the Department of the Army--
(A) for the Army National Guard of the United
States, $518,403,000; and
(B) for the Army Reserve, $169,487,000.
(2) For the Department of the Navy, for the Navy Reserve
and Marine Corps Reserve, $55,158,000.
(3) For the Department of the Air Force--
(A) for the Air National Guard of the United
States, $212,788,000; and
(B) for the Air Force Reserve, $56,836,000.

TITLE VII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be
specified by law.
Sec. 2702. Effective date.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE
SPECIFIED BY LAW.

(a) Expiration of Authorizations After Three Years.--Except as
provided in subsection (b), all authorizations contained in titles XXI
through XXVI for military construction projects, land acquisition,
family housing projects and facilities, and contributions to the North
Atlantic Treaty Organization Security Investment program (and
authorizations of appropriations therefor) shall expire on the later
of--
(1) October 1, 2009; or
(2) the date of the enactment of an Act authorizing funds
for military construction for fiscal year 2010.
(b) Exception.--Subsection (a) shall not apply to authorizations
for military construction projects, land acquisition, family housing
projects and facilities, and contributions to the North Atlantic Treaty
Organization Security Investment program (and authorizations of
appropriations therefor), for which appropriated funds have been
obligated before the later of--
(1) October 1, 2009; or
(2) the date of the enactment of an Act authorizing funds
for fiscal year 2010 for military construction projects, land
acquisition, family housing projects and facilities, or
contributions to the North Atlantic Treaty Organization
Security Investment program.

SEC. 2702. EFFECTIVE DATE.

Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this Act shall take
effect on the later of--
(1) October 1, 2006; or
(2) the date of the enactment of this Act.

TITLE VIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

Subtitle A--Military Construction Program and Military Family Housing
Changes

Subtitle B--Real Property and Facilities Administration

Subtitle C--Base Closure and Realignment

Sec. 2831. Treatment of lease proceeds from military installations
approved for closure or realignment after
January 1, 2005.

Subtitle D--Land Conveyances

Subtitle E--Other Matters

Subtitle A--Military Construction Program and Military Family Housing
Changes

SEC. 2801. INCREASE IN MAXIMUM ANNUAL AMOUNT AUTHORIZED TO BE OBLIGATED
FOR EMERGENCY MILITARY CONSTRUCTION.

Section 2803(c)(1) of title 10, United States Code, is amended by
striking ``$45,000,000'' and inserting ``$60,000,000''.

SEC. 2802. APPLICABILITY OF LOCAL COMPARABILITY OF ROOM PATTERN AND
FLOOR AREA REQUIREMENTS TO CONSTRUCTION, ACQUISITION, AND
IMPROVEMENT TO MILITARY UNACCOMPANIED HOUSING.

(a) Application to Military Unaccompanied Housing.--Section 2826 of
title 10, United States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``or military unaccompanied
housing'' after ``military family housing'' the first
place it appears; and
(B) by striking ``military family housing'' the
second place it appears and inserting ``such housing'';
and
(2) in subsection (b)--
(A) by striking ``Requests for Authority for
Military Family Housing'' and inserting ``Information
on Net Floor Areas of Proposed Units'';
(B) in paragraph (1)--
(i) by inserting ``or military
unaccompanied housing'' after ``military family
housing'' the first place it appears; and
(ii) by striking ``military family
housing'' the second place it appears and
inserting ``such housing''; and
(C) in paragraph (2), by striking ``military family
housing unit'' and inserting ``unit of military family
housing or military unaccompanied housing''.
(b) Waiver Authority.--Such section is further amended by adding at
the end the following new subsection:
``(c) Waiver Authority.--The Secretary concerned may waive the
requirements of subsection (a) in the case of the construction,
acquisition, or improvement of military unaccompanied housing on a
case-by-case basis. The Secretary shall include the reasons for the
waiver in the request submitted to Congress for authority to carry out
the construction, acquisition, or improvement project.''.
(c) Clerical Amendments.--
(1) Section heading.--The heading of such section is
amended to read as follows:
``Sec. 2826. Local comparability of room patterns and floor areas''.
(2) Table of sections.--The table of sections at the
beginning of subchapter II of chapter 169 of such title is
amended by striking the item relating to section 2826 and
inserting the following new item:

``2826. Local comparability of room patterns and floor areas.''.
(d) Repeal of Superseded Provision.--
(1) Repeal.--Section 2856 of such title is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of subchapter III of chapter 169 of such title is
amended by striking the item relating to section 2856.
(e) Conforming Amendments Regarding Alternative Acquisition and
Improvement Authority.--Section 2880(b) of such title is amended--
(1) by striking ``(1)'';
(2) by inserting ``or military unaccompanied housing''
after ``military family housing''; and
(3) by striking paragraph (2).

SEC. 2803. AUTHORITY TO USE PROCEEDS FROM SALE OF MILITARY FAMILY
HOUSING TO SUPPORT MILITARY HOUSING PRIVATIZATION
INITIATIVE.

(a) Transfer Flexibility.--Section 2831 of title 10, United States
Code, is amended--
(1) in subsection (b), by striking ``There'' and inserting
``Except as provided in subsection (e), there'';
(2) by redesignating subsections (e) and (f) as subsections
(f) and (g), respectively; and
(3) by inserting after subsection (d) the following new
subsection (e):
``(e) Authority to Transfer Certain Proceeds to Support Military
Housing Privatization Initiative.--(1) The Secretary concerned may
transfer family housing proceeds referred to in subsection (b)(3) to
the Department of Defense Family Housing Improvement Fund established
under section 2883(a)(1) of this title.
``(2) A transfer of proceeds under paragraph (1) may be made only
after the end of the 30-day period beginning on the date the Secretary
concerned submits written notice of, and justification for, the
transfer to the appropriate committees of Congress or, if earlier, the
end of the 14-day period beginning on the date on which a copy of the
notice and justification is provided in an electronic medium pursuant
to section 480 of this title.''.
(b) Stylistic Amendments.--Such section is further amended--
(1) in subsection (a), by inserting ``Establishment.--''
after ``(a)'';
(2) in subsection (b), by inserting ``Credits to Account.--
'' after ``(b)'';
(3) in subsection (c), by inserting ``Availability of
Amounts in Account.--'' after ``(c)''; and
(4) in subsection (d), by inserting ``Use of Account.--''
after ``(d)''.
(c) Conforming Amendment.--Section 2883(c)(1) of such title is
amended by adding at the end the following new subparagraph:
``(G) Proceeds of the handling and the disposal of family
housing of a military department that the Secretary concerned
transfers to that Fund pursuant to section 2831(e) of this
title.''.

SEC. 2804. REPEAL OF SPECIAL REQUIREMENT FOR MILITARY CONSTRUCTION
CONTRACTS ON GUAM.

(a) Repeal.--Section 2864 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
subchapter III of chapter 169 of such title is amended by striking the
item relating to section 2864.

SEC. 2805. CONGRESSIONAL NOTIFICATION OF CANCELLATION CEILING FOR
DEPARTMENT OF DEFENSE ENERGY SAVINGS PERFORMANCE
CONTRACTS.

Section 2865 of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(g) Congressional Notification of Cancellation Ceiling for Energy
Savings Performance Contracts.--When a decision is made to award an
energy savings performance contract that contains a clause setting
forth a cancellation ceiling in excess of $7,000,000, the Secretary of
Defense shall submit to the appropriate committees of Congress written
notification of the proposed contract and of the proposed cancellation
ceiling for the contract. The notification shall include the
justification for the proposed cancellation ceiling. The contract may
then be awarded only after the end of the 30-day period beginning on
the date the notification is received by such committees or, if
earlier, the end of the 15-day period beginning on the date on which a
copy of the notification is provided in an electronic medium pursuant
to section 480 of this title.''.

SEC. 2806. EXPANSION OF AUTHORITY TO CONVEY PROPERTY AT MILITARY
INSTALLATIONS TO SUPPORT MILITARY CONSTRUCTION.

(a) Inclusion of All Military Installations.--Subsection (a) of
section 2869 of title 10, United States Code, is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ``(1)'' before ``The Secretary
concerned'';
(3) by striking ``located on a military installation that
is closed or realigned under a base closure law'' and inserting
``described in paragraph (2)''; and
(4) by adding at the end the following new paragraph:
``(2) Paragraph (1) applies with respect to real property under the
jurisdiction of the Secretary concerned that--
``(A) is located on a military installation that is closed
or realigned under a base closure law; or
``(B) is determined to be excess to the needs of the
Department of Defense.''.
(b) Use of Authority to Support Agreements to Limit
Encroachments.--Subparagraph (A) of paragraph (1) of subsection (a) of
such section, as redesignated and amended by subsection (a), is further
amended by striking ``land acquisition'' and inserting ``land
acquisition, including a land acquisition under an agreement entered
into under section 2684a of this title to limit encroachments and other
constraints on military training, testing, and operations''.
(c) Advance Notice of Use of Authority; Content of Notice.--
Subsection (d) of such section is amended--
(1) in paragraph (1), by striking ``closed or realigned
under the base closure laws is to be conveyed'' and inserting
``is proposed for conveyance'';
(2) by striking paragraph (2) and inserting the following
new paragraph:
``(2) The Secretary concerned may not enter into an agreement under
subsection (a) for the conveyance of real property until--
``(A) the Secretary submits to Congress notice of the
conveyance, including--
``(i) a description of the military construction
project, land acquisition, military family housing, or
military unaccompanied housing to be carried out under
the agreement in exchange for the conveyance of the
property; and
``(ii) the amount of any payment to be made under
subsection (b) or under section 2684a(d) of this title
to equalize the fair market values of the property to
be conveyed and the military construction project, land
acquisition, military family housing, or military
unaccompanied housing to be carried out under the
agreement in exchange for the conveyance of the
property; and
``(B) a period of 21 days has elapsed from the date of
receipt of the notice or, if over sooner, a period of 14 days
has elapsed from the date on which a copy of the notice is
provided in an electronic medium pursuant to section 480 of
this title.''.
(d) Deposit and Use of Funds.--Subsection (e) of such section is
amended to read as follows:
``(e) Deposit and Use of Funds.--(1) The Secretary concerned shall
deposit funds received under subsection (b) in the appropriation
`Foreign Currency Fluctuations, Construction, Defense'.
``(2) The funds deposited under paragraph (1) shall be available,
in such amounts as provided in appropriation Acts, for the purpose of
paying increased costs of overseas military construction and family
housing construction or improvement associated with unfavorable
fluctuations in currency exchange rates. The use of such funds for this
purpose does not relieve the Secretary concerned from the duty to
provide advance notice to Congress under section 2853(c) of this title
whenever the Secretary approves an increase in the cost of an overseas
project under such section.''.
(e) Annual Reports; Effect of Failure to Submit.--Subsection (f) of
such section is amended--
(1) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively;
(2) in subparagraph (C), as so redesignated, by inserting
before the period at the end the following: ``and of excess
real property at military installations'';
(3) by striking ``(f)'' and all that follows through ``the
following:'' and inserting the following:
``(f) Annual Reports; Effect of Failure to Submit.--(1) Not later
than March 15 of each year, the Secretary of Defense shall submit to
Congress a report detailing the following:''; and
(4) by adding at the end the following new paragraph:
``(2) If the report for a year is not submitted to Congress by the
date specified in paragraph (1), the Secretary concerned may not enter
into an agreement under subsection (a) after that date for the
conveyance of real property until the date on which the report is
finally submitted.''.
(f) Clerical Amendments.--
(1) Section heading.--The heading of such section is
amended to read as follows:
``Sec. 2869. Conveyance of property at military installations to
support military construction or limit encroachment''.
(2) Table of sections.--The table of sections at the
beginning of subchapter III of chapter 169 of such title is
amended by striking the item relating to section 2869 and
inserting the following new item:

``2869. Conveyance of property at military installations to support
military construction or limit
encroachment.''.
(g) Conforming Amendments to Department of Defense Housing Funds.--
Section 2883(c) of such title is amended--
(1) in paragraph (1), by striking subparagraph (F); and
(2) in paragraph (2), by striking subparagraph (F).
(h) Conforming Amendments to Authority to Limit Encroachments.--
Subsection (d)(3) of section 2684a of such title is amended--
(1) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(2) in subparagraph (C), as so redesignated, by striking
``in the sharing of acquisition costs of real property, or an
interest in real property, under paragraph (1)(B)'' and
inserting ``under subparagraph (A), either through the
contribution of funds or excess real property, or both,''; and
(3) by inserting after subparagraph (A) the following new
subparagraph (B):
``(B) In lieu of or in addition to making a monetary contribution
toward the cost of acquiring a parcel of real property, or an interest
therein, pursuant to an agreement under this section, the Secretary
concerned may convey, using the authority provided by section 2869 of
this title, real property described in subsection (a)(2) of such
section.''.

SEC. 2807. PILOT PROJECTS FOR ACQUISITION OR CONSTRUCTION OF MILITARY
UNACCOMPANIED HOUSING.

(a) Extension of Authority to Carry Out Pilot Projects.--Subsection
(f) of section 2881a of title 10, United States Code, is amended by
striking ``2007'' and inserting ``2011''.
(b) Authorized Projects.--Subsection (a) of such section is amended
by striking ``three pilot projects'' and inserting ``six pilot
projects''.
(c) Notification of Funding Transfers.--Subsection (d)(2) of such
section is amended by striking ``90 days prior notification'' and
inserting ``45 days prior notification, or 30 days if the notification
is provided in an electronic medium pursuant to section 480 of this
title,''.
(d) Report Submission.--Subsection (e)(2) of such section is
amended by striking the second sentence and inserting the following new
sentence: ``The Secretary may then issue the contract solicitation or
offer the conveyance or lease after the end of the 45-day period
beginning on the date the report is received by the appropriate
committees of Congress or, if earlier, the end of the 30-day period
beginning on the date on which a copy of the report is provided in an
electronic medium pursuant to section 480 of this title.''.

SEC. 2808. CONSIDERATION OF ALTERNATIVE AND MORE EFFICIENT USES FOR
GENERAL OFFICER AND FLAG OFFICER QUARTERS IN EXCESS OF
6,000 SQUARE FEET.

(a) Reporting Requirements.--Paragraph (1) of subsection (f) of
section 2831 of title 10, United States Code, as redesignated by
section 2803(a)(2), is amended--
(1) in subparagraph (A), by striking ``and'' at the end of
the subparagraph;
(2) in subparagraph (B)--
(A) by striking ``so identified'' and inserting
``identified under subparagraph (A)''; and
(B) by striking the period at the end of the
subparagraph and inserting a semicolon; and
(3) by adding at the end the following new subparagraphs:
``(C) identifying each family housing unit in excess of
6,000 square feet used, or intended for use, as quarters for a
general officer or flag officer;
``(D) for each family housing unit identified under
subparagraph (C), specifying any alternative and more efficient
use to which the unit could be converted (which would include
any costs necessary to convert the unit) and containing an
explanation of the reasons why the unit is not being converted
to the alternative use; and
``(E) for each family housing unit identified under
subparagraph (C) for which costs under subparagraph (A) or new
construction costs are anticipated to exceed $100,000 in the
next fiscal year, specifying any alternative use to which the
unit could be converted (which would include any costs
necessary to convert the unit) and an estimate of the costs to
demolish and rebuild the unit to private sector standards.''.
(b) Conforming Amendment.--The heading of such subsection is
amended by striking ``Cost Of''.

SEC. 2809. REPEAL OF TEMPORARY MINOR MILITARY CONSTRUCTION PROGRAM.

Section 2810 of the Military Construction Authorization Act for
Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 3509) is
repealed.

SEC. 2810. ONE-YEAR EXTENSION OF TEMPORARY, LIMITED AUTHORITY TO USE
OPERATION AND MAINTENANCE FUNDS FOR CONSTRUCTION PROJECTS
OUTSIDE THE UNITED STATES.

Section 2808(a) of the Military Construction Authorization Act for
Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat. 1723), as
amended by section 2810 of the Military Construction Authorization Act
for Fiscal Year 2005 (division B of Public Law 108-375; 118 Stat. 2128)
and section 2809 of the Military Construction Authorization Act for
Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 3508), is
further amended by striking ``and 2006'' and inserting ``through
2007''.

Subtitle B--Real Property and Facilities Administration

SEC. 2821. CONSOLIDATION OF DEPARTMENT OF DEFENSE AUTHORITIES REGARDING
GRANTING OF EASEMENTS FOR RIGHTS-OF-WAY.

(a) Consolidation.--Subsection (a) of section 2668 of title 10,
United States Code, is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``he'' both places it appears and
inserting ``the Secretary''; and
(B) by striking ``his control, to a State,
Commonwealth, or possession, or political subdivision
thereof, or to a citizen, association, partnership, or
corporation of a State, Commonwealth, or possession,''
and inserting ``the Secretary's control'';
(2) in paragraph (2), by striking ``oil pipe lines'' and
inserting ``gas, water, sewer, and oil pipe lines''; and
(3) in paragraph (13), by striking ``he considers
advisable, except a purpose covered by section 2669 of this
title'' and inserting ``the Secretary considers advisable''.
(b) Stylistic Amendments.--Such section is further amended--
(1) in subsection (a), by inserting ``Authorized Types of
Easements.--'' after ``(a)'';
(2) in subsection (b), by inserting ``Limitation on Size of
Easement.--'' after ``(b)'';
(3) in subsection (c), by inserting ``Termination.--''
after ``(c)'';
(4) in subsection (d), by inserting ``Notice to Department
of the Interior.--'' after ``(d)''; and
(5) in subsection (e), by inserting ``Disposition of
Consideration.--'' after ``(e)''.
(c) Conforming Repeal.--Section 2669 of such title is repealed.
(d) Clerical Amendment.--The table of sections at the beginning of
chapter 159 of such title is amended by striking the item related to
section 2669.

SEC. 2822. AUTHORITY TO GRANT RESTRICTIVE EASEMENTS IN CONNECTION WITH
LAND CONVEYANCES.

(a) Restrictive Easements.--Chapter 159 of title 10, United States
Code, is amended by inserting after section 2668 the following new
section:
``Sec. 2668a. Restrictive easements: granting easement in connection
with land conveyances
``(a) Authority to Include Restrictive Easement.--In connection
with the conveyance of real property by the Secretary concerned under
any provision of law, the Secretary concerned may grant an easement
restricting future uses of the conveyed real property for a
conservation purpose consistent with section 170(h)(4)(A)(iv) of the
Internal Revenue Code of 1986 (26 U.S.C. 170(h)(4)(A)(iv)).
``(b) Authorized Recipients.--An easement under subsection (a) may
be granted only to a State or local government or a qualified
organization, as that term is used in section 170(h) of the Internal
Revenue Code of 1986 (26 U.S.C. 170(h)).
``(c) Limitation on Use of Conservation Easements.--An easement
under subsection (a) may not be granted unless--
``(1) the Secretary concerned determines that the
conservation purpose to be promoted by the easement cannot be
effectively achieved through the application of State law by
the State or a local government;
``(2) the Secretary consults with the local government
whose jurisdiction encompasses the property regarding the grant
of the easement; and
``(3) the Secretary can give or assign to a third party the
responsibility for monitoring and enforcing the easement.
``(d) Acreage Limitation.--No easement granted under this section
may include more land than is necessary for the easement.
``(e) Terms and Conditions.--The grant of an easement under this
section shall be subject to such terms and conditions as the Secretary
considers advisable.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2668 the following new item:

``2668a. Restrictive easements: granting easement in connection with
land conveyances.''.

SEC. 2823. MAXIMUM TERM OF LEASES FOR STRUCTURES AND REAL PROPERTY
RELATING TO STRUCTURES IN FOREIGN COUNTRIES NEEDED FOR
PURPOSES OTHER THAN FAMILY HOUSING.

Section 2675(a) of title 10, United States Code, is amended by
striking ``five years'' and inserting ``10 years''.

SEC. 2824. CONSOLIDATION OF LAWS RELATING TO TRANSFER OF DEPARTMENT OF
DEFENSE REAL PROPERTY WITHIN THE DEPARTMENT AND TO OTHER
FEDERAL AGENCIES.

(a) Inclusion of Transfer Authority Between Armed Forces.--Section
2696 of title 10, United States Code, is amended--
(1) by redesignating subsections (a) and (b) as subsections
(b) and (c), respectively; and
(2) by inserting before subsection (b), as so redesignated,
the following new subsection:
``(a) Transfers Between Armed Forces.--If either of the Secretaries
concerned requests it and the other approves, real property may be
transferred, without compensation, from one armed force to another.
Section 2571(d) of this title shall apply to the transfer of real
property under this subsection.''.
(b) Inclusion of Department of Justice Program.--The text of
section 2693 of such title is amended--
(1) by redesignating paragraphs (1), (2), and (3) of
subsection (a) as subparagraphs (A), (B), and (C),
respectively;
(2) by redesignating paragraphs (1) and (2) of subsection
(b) as subparagraphs (A) and (B), respectively, and in such
subparagraph (B), as so redesignated, by striking ``this
section'' and inserting ``paragraph (1)'';
(3) by striking ``(a) Except as provided in subsection
(b)'' and inserting ``(f) Department of Justice Correctional
Options Program.--(1) Except as provided in paragraph (2)'';
(4) by striking ``(b) The provisions of this section'' and
inserting ``(2) Paragraph (1)''; and
(5) by transferring the text, as so redesignated and
amended, to appear as a new subsection (f) at the end of
section 2696 of such title.
(c) Conforming Amendments.--
(1) Section 2571.--Section 2571(a) of such title is amended
by striking ``and real estate''.
(2) Section 2693.--Section 2693 of such title is repealed.
(3) Section 2696.--Section 2696 of such title is amended--
(A) in subsection (b), as redesignated by
subsection (a)(1), by striking ``Screening
Requirement.--'' and inserting ``Screening Requirements
for Additional Federal Use.--'';
(B) in subsection (c)(1), as redesignated by
subsection (a)(1), by striking ``subsection (a)'' in
the first sentence and inserting ``subsection (b)'';
(C) in subsection (d), by striking ``subsection
(b)(1)'' and inserting ``subsection (c)(1)''; and
(D) in subsection (e), by striking ``this section''
and inserting ``subsection (b)''.
(d) Clerical Amendments.--
(1) Section 2571.--(A) The heading of section 2571 of such
title is amended to read as follows:
``Sec. 2571. Interchange of supplies and services''.
(B) The table of sections at the beginning of chapter 153
of such title is amended by striking the item relating to
section 2571 and inserting the following new item:

``2571. Interchange of supplies and services.''.
(2) Sections 2693 and 2696.--(A) The heading of section
2696 of such title is amended to read as follows:
``Sec. 2696. Transfers and disposals: interchange among armed forces
and screening requirements for other Federal use''.
(B) The table of sections at the beginning of chapter 159
of such title is amended--
(i) by striking the item relating to section 2693;
and
(ii) by striking the item relating to section 2696
and inserting the following new item:

``2696. Transfers and disposals: interchange among armed forces and
screening requirements for other Federal
use.''.

SEC. 2825. CONGRESSIONAL NOTICE REQUIREMENTS IN ADVANCE OF ACQUISITION
OF LAND BY CONDEMNATION FOR MILITARY PURPOSES.

(a) Sense of Congress.--It is the sense of Congress that the
Secretary of Defense, when acquiring land for military purposes, should
make every effort to do so by means of purchases from willing sellers
and should employ condemnation, eminent domain, or seizure procedures
only as a measure of last resort in cases of compelling national
security requirements.
(b) Congressional Notice.--Section 2663(a) of title 10, United
States Code, is amended by adding at the end the following new
paragraph:
``(3) Before using condemnation, eminent domain, or seizure
procedures to acquire any interest in land, including land for
temporary use, under this subsection, the Secretary of Defense or the
Secretary of the military department concerned shall submit to the
congressional defense committees a report that includes certification
that the Secretary has made every effort to acquire the property
without use of such procedures, explains the compelling requirements
for the acquisition and why alternative acquisition strategies, such as
purchases of easements, are inadequate, and describes the property for
which the procedures will be employed. Proceedings may be brought with
respect to the land only after the end of the 14-day period beginning
on the date on which the report is received by the committees or, if
over sooner, a period of 10 days elapses from the date on which a copy
of the report is provided in an electronic medium pursuant to section
480 of this title.''.

Subtitle C--Base Closure and Realignment

SEC. 2831. TREATMENT OF LEASE PROCEEDS FROM MILITARY INSTALLATIONS
APPROVED FOR CLOSURE OR REALIGNMENT AFTER JANUARY 1,
2005.

Paragraph (5) of section 2667(d) of title 10, United States Code,
is amended to read as follows:
``(5) Money rentals received by the United States from a lease
under subsection (f) at a military installation to be closed or
realigned under a base closure law shall be deposited--
``(A) into the account established under section 2906(a) of
the Defense Base Closure and Realignment Act of 1990 (part A of
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), if the
installation was approved for closure or realignment before
January 1, 2005; or
``(B) into the account established under section 2906A(a)
of such Act, if the installation was approved for closure or
realignment after January 1, 2005.''.

Subtitle D--Land Conveyances

SEC. 2841. LAND CONVEYANCE, NAVAL AIR STATION, BARBERS POINT, HAWAII.

(a) Conveyance of Property.--Not later than September 30, 2008, the
Secretary of the Navy shall convey, by sale, lease, or a combination
thereof, to any public or private person or entity outside the
Department of Defense certain parcels of real property, including any
improvements thereon, consisting of approximately 499 acres located at
the former Naval Air Station, Barbers Point, Oahu, Hawaii, that are
subject to the Ford Island Master Development Agreement developed
pursuant to section 2814(a)(2) of title 10, United States Code, for the
purpose of promoting the beneficial development of the real property.
(b) Use of Existing Authority.--To implement subsection (a), the
Secretary may utilize the special conveyance and lease authorities
provided to the Secretary by subsections (b) and (c) of section 2814 of
title 10, United States Code, for the purpose of developing or
facilitating the development of Ford Island, Hawaii.
(c) Description of Property.--The exact acreage and legal
description of real property to be conveyed under subsection (a) shall
be determined by a survey satisfactory to the Secretary.
(d) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with a conveyance
under subsection (a) as the Secretary considers appropriate to protect
the interests of the United States.

SEC. 2842. MODIFICATION OF LAND ACQUISITION AUTHORITY, PERQUIMANS
COUNTY, NORTH CAROLINA.

Section 2846 of the Military Construction Authorization Act for
Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 1320), as
amended by section 2865 of the Military Construction Authorization Act
for Fiscal Year 2005 (division B of Public Law 108-375; 118 Stat. 2149)
is further amended by striking ``840 acres'' and inserting ``1,540
acres''.

SEC. 2843. LAND CONVEYANCE, RADFORD ARMY AMMUNITION PLANT, PULASKI
COUNTY, VIRGINIA.

(a) Conveyance Authorized.--The Secretary of the Army may convey,
without consideration, to the Department of Veterans' Services of the
Commonwealth of Virginia (in this section referred to as the
``Department'') all right, title, and interest of the United States in
and to a parcel of real property, including any improvements thereon,
consisting of approximately 85 acres at the Radford Army Ammunition
Plant in Pulaski County, Virginia, for the purpose of permitting the
Department to establish and operate a State-run cemetery for veterans
of the Armed Forces.
(b) Reversionary Interest.--If the Secretary determines at any time
that the real property conveyed under subsection (a) is not being used
in accordance with the purpose of the conveyance specified in such
subsection, all right, title, and interest in and to the property shall
revert, at the option of the Secretary, to the United States, and the
United States shall have the right of immediate entry onto the
property. Any determination of the Secretary under this subsection
shall be made on the record after an opportunity for a hearing.
(c) Payment of Costs of Conveyance.--
(1) Payment required.--The Secretary shall require the
Department to cover costs to be incurred by the Secretary, or
to reimburse the Secretary for costs incurred by the Secretary,
to carry out the conveyance under subsection (a), including
survey costs, costs related to environmental documentation, and
other administrative costs related to the conveyance. If
amounts are collected from the Department in advance of the
Secretary incurring the actual costs, and the amount collected
exceeds the costs actually incurred by the Secretary to carry
out the conveyance, the Secretary shall refund the excess
amount to the Department.
(2) Treatment of amounts received.--Amounts received as
reimbursement under paragraph (1) shall be credited to the fund
or account that was used to cover the costs incurred by the
Secretary in carrying out the conveyance. Amounts so credited
shall be merged with amounts in such fund or account and shall
be available for the same purposes, and subject to the same
conditions and limitations, as amounts in such fund or account.
(d) Description of Real Property.--The exact acreage and legal
description of the real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
(e) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the conveyance
under subsection (a) as the Secretary considers appropriate to protect
the interests of the United States.

Subtitle E--Other Matters

SEC. 2851. AVAILABILITY OF COMMUNITY PLANNING ASSISTANCE RELATING TO
ENCROACHMENT OF CIVILIAN COMMUNITIES ON MILITARY
FACILITIES USED FOR TRAINING BY THE ARMED FORCES.

Section 2391(d)(1) of title 10, United States Code, is amended by
adding at the end the following new sentence: ``For purposes of
subsection (b)(1)(D), the term `military installation' includes a
military facility owned and operated by any of the several States, the
District of Columbia, the Commonwealth of Puerto Rico, Guam, or the
Virgin Islands, even though the facility is not under the jurisdiction
of the Department of Defense, if the Secretary of Defense determines
that the military facility is subject to significant use for training
by the armed forces.''.

SEC. 2852. PROHIBITIONS AGAINST MAKING CERTAIN MILITARY AIRFIELDS OR
FACILITIES AVAILABLE FOR USE BY CIVIL AIRCRAFT.

(a) Prohibitions.--The Secretary of the Navy may not enter into any
agreement concerning a military installation specified in subsection
(b) that would--
(1) authorize civil aircraft to regularly use an airfield
or any other property at the installation;
(2) convey any real property at the installation, including
any airfield at the installation, for the purpose of permitting
the use of the property by civil aircraft.
(b) Covered Installations.--The prohibitions in subsection (a)
apply with respect to the following military installations:
(1) Marine Corps Air Station, Camp Pendleton, California.
(2) Marine Corps Air Station, Miramar, California.
(3) Marine Corps Base, Camp Pendleton, California.
(4) Naval Air Station, North Island, California.
(c) Repeal of Existing Limited Prohibition.--Section 2894 of the
Military Construction Authorization Act for Fiscal Year 1996 (division
B of Public Law 104-106; 110 Stat. 592) is repealed.

SEC. 2853. NAMING HOUSING FACILITY AT FORT CARSON, COLORADO, IN HONOR
OF JOEL HEFLEY, A MEMBER OF THE HOUSE OF REPRESENTATIVES.

(a) Findings.--Congress makes the following findings:
(1) Representative Joel Hefley was elected to represent
Colorado's 5th Congressional district in 1986 and has served in
the House of Representatives since that time with distinction,
class, integrity, and honor.
(2) Representative Hefley has served on the Committee on
Armed Services of the House of Representatives for 18 years,
including service as Chairman of the Subcommittee on Military
Installations and Facilities from 1995 through 2000 and, since
2001, as Chairman of the Subcommittee on Readiness.
(3) Representative Hefley's colleagues know him to be a
fair and effective lawmaker who works for the national interest
while never forgetting his Western roots.
(4) Representative Hefley's efforts on the Committee on
Armed Services have been instrumental to the military value of,
and quality of life at, installations in the State of Colorado,
including Fort Carson, Cheyenne Mountain, Peterson Air Force
Base, Schriever Air Force Base, Buckley Air Force Base, and the
United States Air Force Academy.
(5) Representative Hefley was a leader in efforts to retain
and expand Fort Carson as an essential part of the national
defense system during the Defense Base Closure and Realignment
process.
(6) Representative Hefley has consistently advocated for
providing members of the Armed Forces and their families with
quality, safe, and affordable housing and supportive
communities.
(7) Representative Hefley spearheaded the Military Housing
Privatization Initiative to eliminate inadequate housing on
military installations, with the first pilot program located at
Fort Carson.
(8) Representative Hefley's leadership on the Military
Housing Privatization Initiative has allowed for the
privatization of more than 121,000 units of military family
housing, which brought meaningful improvements to living
conditions for thousands of members of the Armed Forces and
their spouses and children at installations throughout the
United States.
(9) It is fitting and proper that an appropriate military
family housing area or structure at Fort Carson be designated
in honor of Representative Hefley, and it is further
appropriate that division B of this Act, which authorizes funds
for fiscal year 2007 for military construction projects, land
acquisition, and family housing projects and facilities, be
designated in honor of Representative Hefley.
(b) Designation.--The Secretary of the Army shall designate one of
the military family housing areas or facilities constructed for Fort
Carson, Colorado, using the authority provided by subchapter IV of
chapter 169 of title 10, United States Code, as the ``Joel Hefley
Village''.

SEC. 2854. NAMING NAVY AND MARINE CORPS RESERVE CENTER AT ROCK ISLAND,
ILLINOIS, IN HONOR OF LANE EVANS, A MEMBER OF THE HOUSE
OF REPRESENTATIVES.

(a) Findings.--Congress makes the following findings:
(1) Representative Lane Evans was elected to the House of
Representatives in 1982 and is now in his 12th term
representing the people of Illinois' 17th Congressional
district.
(2) As a member of the Committee on Armed Services of the
House of Representatives, Representative Evans has worked to
bring common sense priorities to defense spending and
strengthen the military's conventional readiness.
(3) Representative Evans has been a tireless advocate for
military veterans, ensuring that veterans receive the medical
care they need and advocating for individuals suffering from
post-traumatic stress disorder and Gulf War Syndrome.
(4) Representative Evans' efforts to improve the transition
of individuals from military service to the care of the
Department of Veterans Affairs will continue to benefit
generations of veterans long into the future.
(5) Representative Evans is credited with bringing new
services to veterans living in his Congressional district,
including outpatient clinics in the Quad Cities and Quincy and
the Quad-Cities Vet Center.
(6) Representative Evans has worked with local leaders to
promote the Rock Island Arsenal and has seen it win new jobs
and missions through his support.
(7) In honor of his service in the Marine Corps and to his
district and the United States, it is fitting and proper that
the Navy and Marine Corps Reserve Center at Rock Island Arsenal
be named in honor of Representative Evans.
(b) Designation.--The Navy and Marine Corps Reserve Center at Rock
Island Arsenal, Illinois, shall be known and designated as the ``Lane
Evans Navy and Marine Corps Reserve Center''. Any reference in a law,
map, regulation, document, paper, or other record of the United States
to the Navy and Marine Corps Reserve Center at Rock Island Arsenal
shall be deemed to be a reference to the Lane Evans Navy and Marine
Corps Reserve Center.

SEC. 2855. NAMING OF RESEARCH LABORATORY AT AIR FORCE ROME RESEARCH
SITE, ROME, NEW YORK, IN HONOR OF SHERWOOD L. BOEHLERT, A
MEMBER OF THE HOUSE OF REPRESENTATIVES.

The new laboratory building at the Air Force Rome Research Site,
Rome, New York, shall be known and designated as the ``Sherwood L.
Boehlert Engineering Center''. Any reference in a law, map, regulation,
document, paper, or other record of the United States to such
laboratory facility shall be deemed to be a reference to the Sherwood
L. Boehlert Engineering Center.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

Subtitle B--Program Authorizations, Restrictions, and Limitations

Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

(a) Authorization of Appropriations.--Funds are hereby authorized
to be appropriated to the Department of Energy for fiscal year 2007 for
the activities of the National Nuclear Security Administration in
carrying out programs necessary for national security in the amount of
$9,265,811,000 to be allocated as follows:
(1) For weapons activities, $6,467,889,000.
(2) For defense nuclear nonproliferation activities,
$1,616,213,000.
(3) For naval reactors, $795,133,000.
(4) For the Office of the Administrator for Nuclear
Security, $386,576,000.
(b) Authorization of New Plant Projects.--From funds referred to in
subsection (a) that are available for carrying out plant projects, the
Secretary of Energy may carry out the following new plant projects:
(1) For weapons activities:
Project 07-D-140, project engineering and design,
various locations, $4,977,000.
Project 07-D-220, Radioactive Liquid Waste
Treatment Facility upgrade, Los Alamos National
Laboratory, $14,828,000.
Project 07-D-253, TA-1 Heating Systems
Modernization, Facilities and Infrastructure
Recapitalization Program, $14,500,000.
(2) For defense nuclear nonproliferation activities:
Project 07-SC-05, Physical Sciences Facility,
Pacific Northwest National Laboratory, $4,220,000.
(3) For naval reactors:
Project 07-D-190, project engineering and design,
Materials Research Technology Complex, $1,485,000.

SEC. 3102. DEFENSE ENVIRONMENTAL CLEANUP.

Funds are hereby authorized to be appropriated to the Department
of Energy for fiscal year 2007 for defense environmental cleanup
activities in carrying out programs necessary for national security in
the amount of $5,440,312,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

Funds are hereby authorized to be appropriated to the Department
of Energy for fiscal year 2007 for other defense activities in carrying
out programs necessary for national security in the amount of
$717,788,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

Funds are hereby authorized to be appropriated to the Department
of Energy for fiscal year 2007 for defense nuclear waste disposal for
payment to the Nuclear Waste Fund established in section 302(c) of the
Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of
$388,080,000.

Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3111. PLAN FOR TRANSFORMATION OF NATIONAL NUCLEAR SECURITY
ADMINISTRATION NUCLEAR WEAPONS COMPLEX.

(a) Plan Required.--Subtitle A of title XLII of the Atomic Energy
Defense Act (division D of Public Law 107-314) is amended by inserting
after section 4213 (50 U.S.C. 2533) the following new section:

``SEC. 4214. PLAN FOR TRANSFORMATION OF NATIONAL NUCLEAR SECURITY
ADMINISTRATION NUCLEAR WEAPONS COMPLEX.

``(a) Plan Required.--The Secretary of Energy and the Secretary of
Defense shall develop a plan to transform the nuclear weapons complex
so as to achieve a responsive infrastructure by 2030. The plan shall be
designed to accomplish the following objectives:
``(1) To maintain the safety, reliability, and security of
the United States nuclear weapons stockpile.
``(2) To continue Stockpile Life Extension Programs that
the Nuclear Weapons Council considers necessary.
``(3) To prepare to produce replacement warheads under the
Reliable Replacement Warhead program at a rate necessary to
meet future stockpile requirements, commencing with a first
production unit in 2012 and achieving steady-state production
using modern manufacturing processes by 2025.
``(4) To eliminate, within the nuclear weapons complex,
duplication of production capability except to the extent
required to ensure the safety, reliability, and security of the
stockpile.
``(5) To maintain the current philosophy within the
national security laboratories of peer review of nuclear
weapons designs while eliminating duplication of laboratory
capabilities except to the extent required to ensure the
safety, reliability, and security of the stockpile.
``(6) To maintain the national security mission, and in
particular the science-based Stockpile Stewardship Program, as
the primary mission of the national security laboratories while
optimizing the work-for-others activities of those laboratories
to support other national security objectives in fields such as
intelligence and homeland security.
``(7) To consolidate to the maximum extent practicable, and
to provide for the ultimate disposition of, special nuclear
material throughout the nuclear weapons complex, with the
ultimate goal of eliminating Category I and II special nuclear
material from the national security laboratories no later than
March 1, 2010, so as to further reduce the footprint of the
nuclear weapons complex, reduce security costs, and reduce
transportation costs for special nuclear material.
``(8) To employ a risk-based approach to ensure compliance
with Design Basis Threat security requirements.
``(9) To expeditiously dismantle inactive nuclear weapons
to reduce the size of the stockpile to the lowest level
required by the Nuclear Weapons Council.
``(10) To operate the nuclear weapons complex in a more
cost-effective manner.
``(b) Report.--Not later than February 1, 2007, the Secretary of
Energy and Secretary of Defense shall submit to the congressional
defense committees a report on the transformation plan required by
subsection (a). The report shall address each of the objectives
required by subsection (c) and also include each of the following:
``(1) A comprehensive list of the capabilities, facilities,
and project staffing that the National Nuclear Security
Administration will need to have in place at the nuclear
weapons complex as of 2030 to meet the requirements of the
transformation plan.
``(2) a comprehensive list of the capabilities and
facilities that the National Nuclear Security Administration
currently has in place at the nuclear weapons complex that will
not be needed as of 2030 to meet the requirements of the
transformation plan.
``(3) A plan for implementing the transformation plan,
including a schedule with incremental milestones.
``(c) Consultation.--The Secretary of Energy and the Secretary of
Defense shall develop the transformation plan required by subsection
(a) in consultation with the Nuclear Weapons Council.
``(d) Definition.--In this section, the term `national security
laboratory' has the meaning given such term in section 3281 of the
National Nuclear Security Administration Act (50 U.S.C. 2471).''.
(b) Inclusion in Future-Years Nuclear Security Program.--Section
3253 of the National Nuclear Security Administration Act (50 U.S.C.
2453) is amended in subsection (b) by adding at the end the following
new paragraph:
``(5) A statement of proposed budget authority, estimated
expenditures, and proposed appropriations necessary to support
the programs required to implement the plan to transform the
nuclear weapons complex under section 4214 of the Atomic Energy
Defense Act, together with a detailed description of how the
funds identified for each program element specified pursuant to
paragraph (1) in the budget for the Administration for each
fiscal year during that five-fiscal-year period will help
ensure that those programs are implemented. The statement shall
assume year-to-year funding profiles that account for increases
only for projected inflation.''.

SEC. 3112. EXTENSION OF FACILITIES AND INFRASTRUCTURE RECAPITALIZATION
PROGRAM.

Section 3114 of the National Defense Authorization Act for Fiscal
Year 2004 (Public Law 108-136; 50 U.S.C. 2453 note), as amended by
section 3113 of the Ronald W. Reagan National Defense Authorization Act
for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2160), is amended--
(1) in subsection (a)(3)(F), by striking ``2011'' and
inserting ``2013''; and
(2) in subsection (b), by striking ``2011'' and inserting
``2013''.

SEC. 3113. UTILIZATION OF CONTRIBUTIONS TO GLOBAL THREAT REDUCTION
INITIATIVE.

Section 3132 of the Ronald W. Reagan National Defense Authorization
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2166; 50 U.S.C.
2569) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by adding after subsection (e) the following new
subsection:
``(f) Participation by Other Governments and Organizations.--
``(1) In general.--The Secretary of Energy may, with the
concurrence of the Secretary of State, enter into one or more
agreements with any person (including a foreign government,
international organization, or multinational entity) that the
Secretary of Energy considers appropriate under which the
person contributes funds for purposes of the program under this
section.
``(2) Retention and use of amounts.--The Secretary of
Energy may retain and use amounts contributed under an
agreement under paragraph (1) for purposes of the program under
this section. Amounts so contributed shall be retained in a
separate fund established in the Treasury for such purposes and
shall be available until expended, without further
appropriation, for such purposes.''.

SEC. 3114. UTILIZATION OF CONTRIBUTIONS TO SECOND LINE OF DEFENSE
PROGRAM.

(a) In General.--The Secretary of Energy may, with the concurrence
of the Secretary of State, enter into one or more agreements with any
person (including a foreign government, international organization, or
multinational entity) that the Secretary of Energy considers
appropriate under which the person contributes funds for purposes of
the Second Line of Defense program of the National Nuclear Security
Administration.
(b) Retention and Use of Amounts.--The Secretary of Energy may
retain and use amounts contributed under an agreement under subsection
(a) for purposes of the Second Line of Defense program. Amounts so
contributed shall be retained in a separate fund established in the
Treasury for such purposes and shall be available until expended,
without further appropriation, for such purposes.
(c) Termination of Authority.--The authority to accept
contributions under subsection (a) terminates December 31, 2013.

SEC. 3115. TWO-YEAR EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN
SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.

Section 4601(c)(1) of the Atomic Energy Defense Act (50 U.S.C.
2701(c)(1)) is amended by striking ``September 30, 2006'' and inserting
``September 30, 2008''.

SEC. 3116. NATIONAL ACADEMY OF SCIENCES STUDY OF QUANTIFICATION OF
MARGINS AND UNCERTAINTY METHODOLOGY FOR ASSESSING AND
CERTIFYING THE SAFETY AND RELIABILITY OF THE NUCLEAR
STOCKPILE.

(a) Study Required.--The Secretary of Energy shall, as soon as
practicable and no later than 120 days after the date of the enactment
of this Act, enter into an arrangement with the National Research
Council of the National Academy of Sciences for the Council to carry
out a study of the quantification of margins and uncertainty
methodology used by the national security laboratories for assessing
and certifying the safety and reliability of the nuclear stockpile.
(b) Matters Included.--The study required by subsection (a) shall
evaluate the following:
(1) The use of the quantification of margins and
uncertainty methodology by the national security laboratories,
including underlying assumptions of weapons performance and the
ability of modeling and simulation tools to predict nuclear
explosive package characteristics.
(2) The manner in which that methodology is used to conduct
the annual assessments of the nuclear weapons stockpile.
(3) How the use of that methodology compares and contrasts
between the national security laboratories.
(4) The process by which conflicts between the national
security laboratories in the application of that methodology
are resolved.
(5) An assessment of whether the application of the
quantification of margins and uncertainty used for annual
assessments and certification of the nuclear weapons stockpile
can be applied to the planned Reliable Replacement Warhead
program so as to carry out the objective of that program to
reduce the likelihood of the resumption of underground testing
of nuclear weapons.
(c) Report.--
(1) In general.--Not later than one year after the date on
which the arrangement required by subsection (a) is entered
into, the National Research Council shall submit to the
Secretary of Energy and the congressional committees specified
in paragraph (2), a report on the study that addresses the
matters listed in subsection (b) and any other matters
considered by the National Research Council to be relevant to
the use of the quantification of margins and uncertainty
methodology in assessing the current or future nuclear weapons
stockpile.
(2) Specified committees.--The congressional committees
referred to in paragraph (1) are the following:
(A) The Committee on Armed Services of the Senate.
(B) The Committee on Armed Services of the House of
Representatives.
(d) Provision of Information.--The Secretary of Energy shall, in a
timely manner, make available to the National Research Council all
information that the National Research Council considers necessary to
carry out its responsibilities under this section.
(e) Funding.--Of the amounts made available to the Department of
Energy pursuant to the authorization of appropriations in section 3101,
$2,000,000 shall be available only for carrying out the study required
by this section.

SEC. 3117. CONSOLIDATION OF COUNTERINTELLIGENCE PROGRAMS OF DEPARTMENT
OF ENERGY AND NATIONAL NUCLEAR SECURITY ADMINISTRATION.

(a) Transfer of Functions.--The functions, personnel, funds,
assets, and other resources of the Office of Defense Nuclear
Counterintelligence of the National Nuclear Security Administration are
transferred to the Secretary of Energy, to be administered (except to
any extent otherwise directed by the Secretary) by the Director of the
Office of Counterintelligence of the Department of Energy.
(b) NNSA Counterintelligence Office Abolished.--
(1) In general.--Section 3232 of the National Nuclear
Security Administration Act (50 U.S.C. 3232) is amended--
(A) by amending the heading to read as follows:

``SEC. 3232. OFFICE OF DEFENSE NUCLEAR SECURITY.'';

(B) by striking subsection (a) and inserting the
following new subsection (a):
``(a) Establishment.--There is within the Administration an Office
of Defense Nuclear Security, headed by a Chief appointed by the
Secretary of Energy. The Administrator shall recommend to the Secretary
suitable candidates for such position.'';
(C) by striking subsection (b); and
(D) by redesignating subsection (c) as subsection
(b).
(2) Conforming amendment.--The table of sections at the
beginning of the National Nuclear Security Administration Act
is amended by striking the item relating to section 3232 and
inserting the following new item:

``Sec. 3232. Office of Defense Nuclear Security.''.
(c) Counterintelligence Programs at NNSA Facilities.--Section 3233
of the National Nuclear Security Administration Act (50 U.S.C. 2423) is
amended--
(1) in each of subsections (a) and (b), by striking ``The
Administrator shall'' and inserting ``The Secretary of Energy
shall''; and
(2) in subsection (b), by striking ``Office of Defense
Nuclear Counterintelligence'' and inserting ``Office of
Counterintelligence of the Department of Energy''.
(d) Status of NNSA Intelligence and Counterintelligence
Personnel.--Section 3220 of the National Nuclear Security
Administration Act (50 U.S.C. 2410) is amended by adding at the end the
following new subsection:
``(e) Status of Intelligence and Counterintelligence Personnel.--
Notwithstanding the restrictions of subsections (a) and (b), each
officer or employee of the Administration, or of a contractor of the
Administration, who is carrying out activities related to intelligence
or counterintelligence shall, in carrying out those activities, be
subject to the authority, direction, and control of the Secretary of
Energy or the Secretary's delegate.''.
(e) Service From Which DOE Intelligence Director and
Counterintelligence Director Appointed.--Section 215(b)(1) (42 U.S.C.
7144b(b)(1)) and section 216(b)(1) (42 U.S.C. 7144c(b)(1)) of the
Department of Energy Organization Act are each amended by striking
``which shall be a position in the Senior Executive Service'' and
inserting ``who shall be an employee in the Senior Executive Service,
the Senior Intelligence Service, the Senior National Intelligence
Service, or any other Service that the Secretary, in coordination with
the Director of National Intelligence, considers appropriate''.
(f) Intelligence Executive Committee; Budget for Intelligence and
Counterintelligence.--Section 214 of the Department of Energy
Organization Act (42 U.S.C. 7144a) is amended--
(1) by inserting ``(a)'' before ``The Secretary shall be
responsible''; and
(2) by adding at the end the following:
``(b)(1) There is within the Department an Intelligence Executive
Committee. The Committee shall consist of the Deputy Secretary of
Energy, who shall chair the Committee, and each Under Secretary of
Energy.
``(2) The Committee shall be staffed by the Director of the Office
of Intelligence and the Director of the Office of Counterintelligence.
``(3) The Secretary shall use the Committee to assist in developing
and promulgating the counterintelligence and intelligence policies,
requirements, and priorities of the Department.
``(c) In the budget justification materials submitted to Congress
in support of each budget submitted by the President to Congress under
title 31, United States Code, the amounts requested for the Department
for intelligence functions and the amounts requested for the Department
for counterintelligence functions shall each be specified in
appropriately classified individual, dedicated program elements. Within
the amounts requested for counterintelligence functions, the amounts
requested for the National Nuclear Security Administration shall be
specified separately from the amounts requested for other elements of
the Department.''.
(g) Report.--Not later than 1 year after the date of the enactment
of this Act, the Inspector General of the Department of Energy shall
submit to Congress a report on the implementation of this section and
of the amendments required by this section. The report shall include
the Inspector General's evaluation of that implementation.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for fiscal year 2007,
$22,260,000 for the operation of the Defense Nuclear Facilities Safety
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286
et seq.).

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously
authorized disposals from National Defense
Stockpile.

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

(a) Obligation of Stockpile Funds.--During fiscal year 2007, the
National Defense Stockpile Manager may obligate up to $52,132,000 of
the funds in the National Defense Stockpile Transaction Fund
established under subsection (a) of section 9 of the Strategic and
Critical Materials Stock Piling Act (50 U.S.C. 98h) for the authorized
uses of such funds under subsection (b)(2) of such section, including
the disposal of hazardous materials that are environmentally sensitive.
(b) Additional Obligations.--The National Defense Stockpile Manager
may obligate amounts in excess of the amount specified in subsection
(a) if the National Defense Stockpile Manager notifies Congress that
extraordinary or emergency conditions necessitate the additional
obligations. The National Defense Stockpile Manager may make the
additional obligations described in the notification after the end of
the 45-day period beginning on the date on which Congress receives the
notification.
(c) Limitations.--The authorities provided by this section shall be
subject to such limitations as may be provided in appropriations Acts.

SEC. 3302. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR PREVIOUSLY
AUTHORIZED DISPOSALS FROM NATIONAL DEFENSE STOCKPILE.

(a) Fiscal Year 1999 Disposal Authority.--Section 3303(a) of the
Strom Thurmond National Defense Authorization Act for Fiscal Year 1999
(Public Law 105-261; 50 U.S.C. 98d note), as amended by section 3302 of
the Ronald W. Reagan National Defense Authorization Act for Year 2005
(Public Law 108-375; 118 Stat. 2193) and section 3302 of the National
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119
Stat. 3545), is amended--
(1) by striking ``and'' at the end of paragraph (5); and
(2) by striking the period at the end of paragraph (6) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(7) $1,365,000,000 by the end of fiscal year 2014.''.
(b) Fiscal Year 1998 Disposal Authority.--Section 3305(a)(5) of the
National Defense Authorization Act for Fiscal Year 1998 (Public Law
105-85; 50 U.S.C. 98d note), as amended by section 3305 of the National
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115
Stat. 1390), is amended by striking ``2006'' and inserting ``2008''.
(c) Fiscal Year 1997 Disposal Authority.--Section 3303 of the
National Defense Authorization Act for Fiscal Year 1997 (Public Law
104-201; 50 U.S.C. 98d note), as amended by section 3402(f) of the
National Defense Authorization Act for Year 2000 (Public Law 106-65;
113 Stat. 973) and section 3304(c) of the National Defense
Authorization Act for 2002 (Public Law 107-107; 115 Stat. 1390), is
amended--
(1) in subsection (a), by striking paragraph (2) and
inserting the following new paragraph (2):
``(2) $720,000,000 during the 12-fiscal year period ending
September 30, 2008.''; and
(2) in subsection (b)(2), by striking ``the 10-fiscal year
period'' and inserting ``the period''.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

(a) Amount.--There are hereby authorized to be appropriated to the
Secretary of Energy $18,810,000 for fiscal year 2007 for the purpose of
carrying out activities under chapter 641 of title 10, United States
Code, relating to the naval petroleum reserves.
(b) Period of Availability.--Funds appropriated pursuant to the
authorization of appropriations in subsection (a) shall remain
available until expended.

TITLE XXXV--MARITIME ADMINISTRATION

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2007.

Funds are hereby authorized to be appropriated for fiscal year
2007, to be available without fiscal year limitation if so provided in
appropriations Acts, for the use of the Department of Transportation
for the Maritime Administration as follows:
(1) For expenses necessary for operations and training
activities, $138,647,000, of which $19,500,000 shall be
available only for paying reimbursement under section 3517 of
the Maritime Security Act of 2003 (46 U.S.C. 53101 note).
(2) For expenses to dispose of obsolete vessels in the
National Defense Reserve Fleet, including provision of
assistance under section 7 of Public Law 92-402, $25,740,000.

SEC. 3502. LIMITATION ON TRANSFER OF MARITIME SECURITY FLEET OPERATING
AGREEMENTS.

Section 53105(e) of title 46, United States Code, is amended--
(1) by inserting ``(1) In General.--'' before the first
sentence;
(2) by moving paragraph (1) (as designated by the amendment
made by paragraph (1) of this subsection) so as to appear
immediately below the heading for such subsection, and 2 ems to
the right; and
(3) by adding at the end the following:
``(2) Limitation.--The Secretary of Defense may not approve
under paragraph (1) transfer of an operating agreement to a
person that is not a citizen of the United States under section
2 of the Shipping Act, 1916 (46 U.S.C. App. 802), unless the
Secretary of Defense determines that there is no person who is
a citizen under such section and is interested in obtaining the
operating agreement for a vessel that is otherwise eligible to
be included in the Fleet under section 53102(b).''.

SEC. 3503. APPLICABILITY TO CERTAIN MARITIME ADMINISTRATION VESSELS OF
LIMITATIONS ON OVERHAUL, REPAIR, AND MAINTENANCE OF
VESSELS IN FOREIGN SHIPYARDS.

Section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App.
1744) is amended by inserting after subsection (c) the following:
``(d) Applicability of Limitations on Overhaul, Repair, and
Maintenance in Foreign Shipyards.--
``(1) Application of limitation.--The provisions of section
7310 of title 10, United States Code, shall apply to vessels
specified in subsection (b), and to the Secretary of
Transportation with respect to those vessels, in the same
manner as those provisions apply to vessels specified in
subsection (b) of such section, and to the Secretary of the
Navy, respectively.
``(2) Covered vessels.--Vessels specified in this paragraph
are vessels maintained by the Secretary of Transportation in
support of the Department of Defense, including any vessel
assigned by the Secretary of Transportation to the Ready
Reserve Force that is owned by the United States.''.

SEC. 3504. VESSEL TRANSFER AUTHORITY.

The Secretary of Transportation may transfer or otherwise make
available without reimbursement to any other department a vessel under
the jurisdiction of the Department of Transportation, upon request by
the Secretary of the department that receives the vessel.

SEC. 3505. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES: ALTERNATE
SERVICE REQUIREMENTS.

(a) Service on Active Duty.--Section 1303(e) of the Merchant Marine
Act, 1936 (46 U.S.C. App. 1295b(e)) is amended by adding at the end the
following:
``(6)(A) An individual who for the 5-year period following
graduation from the Academy, serves as a commissioned officer on active
duty in an armed force of the United States or as a commissioned
officer in the National Oceanic and Atmospheric Administration shall be
excused from the requirements of subparagraphs (C), (D), and (E) of
paragraph (1).
``(B) The Secretary may modify or waive any of the terms and
conditions set forth in paragraph (1) through the imposition of
alternative service requirements.''.
(b) Application.--Paragraph (6) of section 1303(e) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1295b(e)), as added by this
subsection, applies only to an individual who enrolls as a cadet at the
United States Merchant Marine Academy, and signs an agreement under
section paragraph (1) of that section, after the date of the enactment
of this Act.

SEC. 3506. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES: SERVICE
OBLIGATION PERFORMANCE REPORTING REQUIREMENT.

(a) In General.--Section 1303(e) of the Merchant Marine Act, 1936
(46 U.S.C. App. 1295b(e)) is further amended by adding at the end the
following:
``(7)(A) Subject to any otherwise applicable restrictions on
disclosure in section 552a of title 5, United States Code, the
Secretary of Defense or the Secretary of the department in which the
Coast Guard is operating, and the Administrator of the National Oceanic
and Atmospheric Administration--
``(i) shall report the status of obligated service
of an individual graduate of the Academy upon request
of the Secretary; and
``(ii) may, in their discretion, notify the
Secretary of any failure of the graduate to perform the
graduate's duties, either on active duty or in the
Ready Reserve component of their respective service, or
as a commissioned officer of the National Oceanic and
Atmospheric Administration, respectively.
``(B) A report or notice under subparagraph (A) shall identify any
graduate determined to have failed to comply with service obligation
requirements and provide all required information as to why such
graduate failed to comply.
``(C) Upon receipt of such a report or notice, such graduate may be
considered to be in default of the graduate's service obligations by
the Secretary, and subject to all remedies the Secretary may have with
respect to such a default.''.
(b) Application.--The amendment made by this section does not apply
with respect to an agreement entered into under section 1303(e) of the
Merchant Marine Act, 1936 (46 U.S.C. 1295b(e)) before the date of the
enactment of this Act.

SEC. 3507. TEMPORARY AUTHORITY TO TRANSFER OBSOLETE COMBATANT VESSELS
TO NAVY FOR DISPOSAL.

The Secretary of Transportation shall, subject to the availability
of appropriations and consistent with section 1535 of title 31, United
States Code, popularly known as the Economy Act, transfer to the
Secretary of the Navy during fiscal year 2006 for disposal by the Navy,
no fewer than 6 combatant vessels in the nonretention fleet of the
Maritime Administration that are acceptable to the Secretary of the
Navy.

SEC. 3508. TEMPORARY REQUIREMENT TO MAINTAIN READY RESERVE FORCE.

(a) Report to Congress.--The Secretary of Defense, in consultation
with the Secretary of Transportation, shall submit to Congress by not
later than March 1, 2007, a report describing a five-year plan for
maintaining the capability of the Ready Reserve Force of the National
Defense Reserve Fleet necessary to support Department of Defense
wartime missions and support to civil authority missions.
(b) Requirement to Maintain the Ready Reserve Force at Current
Strength.--The Secretary of Transportation shall maintain 58 vessels in
the Ready Reserve Force of the National Defense Reserve Fleet until the
end of the 45-day period beginning on the date the report required
under subsection (a) is submitted to Congress.
Amend the title so as to read: ``A bill to authorize
appropriations for fiscal year 2007 for military activities of
the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe
military personnel strengths for such fiscal year, and for
other purposes.''.
Union Calendar No. 253

109th CONGRESS

2d Session

H. R. 5122

[Report No. 109-452]

_______________________________________________________________________

A BILL

To authorize appropriations for fiscal year 2007 for military
activities of the Department of Defense, to prescribe military
personnel strengths for fiscal year 2007, and for other purposes.

_______________________________________________________________________

May 5, 2006

Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed