Congressional Documents



                                                        Calendar No. 88

105th CONGRESS

  1st Session

                                 S. 936

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 1998 for military 
activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
                            other purposes.

_______________________________________________________________________

                June 18 (legislative day, June 17), 1997

                 Read twice and placed on the calendar





                                                        Calendar No. 88
105th CONGRESS
  1st Session
                                 S. 936

     To authorize appropriations for fiscal year 1998 for military 
activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 18 (legislative day, June 17), 1997

   Mr. Thurmond, from the Committee on Armed Services, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 1998 for military 
activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, 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 1998''.

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 defined.
            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.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.
                       Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for AH-64D Longbow Apache 
                            fire control radar.
                       Subtitle C--Navy Programs

Sec. 121. New attack submarine program.
Sec. 122. Nuclear aircraft carrier program.
Sec. 123. Exception to cost limitation for Seawolf submarine program.
Sec. 124. Airborne self-protection jammer program.
                     Subtitle D--Air Force Programs

Sec. 131. B-2 bomber aircraft program.
                       Subtitle E--Other Matters

Sec. 141. Prohibition on use of funds for acquisition or alteration of 
                            private drydocks.
Sec. 142. Replacement of engines on aircraft derived from Boeing 707 
                            aircraft.
Sec. 143. Exception to requirement for a particular determination for 
                            sales of manufactured articles or services 
                            of Army industrial facilities outside the 
                            United States.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Joint Strike Fighter program.
Sec. 212. F-22 aircraft program.
Sec. 213. High Altitude Endurance Unmanned Vehicle program.
Sec. 214. Advanced Anti-Radiation Guided Missile program.
Sec. 215. Federally funded research and development centers.
Sec. 216. Goal for dual-use science and technology projects.
Sec. 217. Transfers of authorizations for counterproliferation support 
                            program.
Sec. 218. Kinetic Energy Tactical Anti-Satellite Technology program.
Sec. 219. Clementine 2 Micro-Satellite development program.
             Subtitle C--Ballistic Missile Defense Programs

Sec. 221. National Missile Defense program.
Sec. 222. Reversal of decision to transfer procurement funds from the 
                            Ballistic Missile Defense Organization.
                       Subtitle D--Other Matters

Sec. 231. Manufacturing Technology program.
Sec. 232. Use of major range and test facility installations by 
                            commercial entities.
Sec. 233. Eligibility for the Defense Experimental Program to Stimulate 
                            Competitive Research.
Sec. 234. Restructuring of National Oceanographic Partnership Program 
                            organizations.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working-capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Fisher House Trust Funds.
                   Subtitle B--Depot-Level Activities

Sec. 311. Percentage limitation on performance of depot-level 
                            maintenance of materiel.
Sec. 312. Centers of Industrial and Technical Excellence.
Sec. 313. Clarification of prohibition on management of depot employees 
                            by constraints on personnel levels.
Sec. 314. Annual report on depot-level maintenance and repair.
Sec. 315. Report on allocation of core logistics activities among 
                            Department of Defense facilities and 
                            private sector facilities.
Sec. 316. Review of use of temporary duty assignments for ship repair 
                            and maintenance.
Sec. 317. Repeal of a conditional repeal of certain depot-level 
                            maintenance and repair laws and a related 
                            reporting requirement.
Sec. 318. Extension of authority for naval shipyards and aviation 
                            depots to engage in defense-related 
                            production and services.
                  Subtitle C--Environmental Provisions

Sec. 331. Clarification of authority relating to storage and disposal 
                            of nondefense toxic and hazardous materials 
                            on Department of Defense property.
Sec. 332. Annual report on payments and activities in response to fines 
                            and penalties assessed under environmental 
                            laws.
Sec. 333. Annual report on environmental activities of the Department 
                            of Defense overseas.
Sec. 334. Membership terms for Strategic Environmental Research and 
                            Development Program Scientific Advisory 
                            Board.
Sec. 335. Additional information on agreements for agency services in 
                            support of environmental technology 
                            certification.
Sec. 336. Risk assessments under the Defense Environmental Restoration 
                            Program.
Sec. 337. Recovery and sharing of costs of environmental restoration at 
                            Department of Defense sites.
Sec. 338. Pilot program for the sale of air pollution emission 
                            reduction incentives.
Sec. 339. Tagging system for identification of hydrocarbon fuels used 
                            by the Department of Defense.
  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 351. Funding sources for construction and improvement of 
                            commissary store facilities.
Sec. 352. Integration of military exchange services.
                       Subtitle E--Other Matters

Sec. 361. Advance billings for working-capital funds.
Sec. 362. Center for Excellence in Disaster Management and Humanitarian 
                            Assistance.
Sec. 363. Administrative actions adversely affecting military training 
                            or other readiness activities.
Sec. 364. Financial assistance to support additional duties assigned to 
                            Army National Guard.
Sec. 365. Sale of excess, obsolete, or unserviceable ammunition and 
                            ammunition components.
Sec. 366. Inventory management.
Sec. 367. Warranty claims recovery pilot program.
Sec. 368. Adjustment and diversification assistance to enhance 
                            increased performance of military family 
                            support services by private sector sources.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
                            contingencies.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                    Subtitle A--Personnel Management

Sec. 501. Officers excluded from consideration by promotion board.
Sec. 502. Increase in the maximum number of officers allowed to be 
                            frocked to the grade of O-6.
Sec. 503. Availability of Navy chaplains on retired list or of 
                            retirement age to serve as Chief or Deputy 
                            Chief of Chaplains of the Navy.
Sec. 504. Period of recall service of certain retirees.
           Subtitle B--Matters Relating to Reserve Components

Sec. 511. Termination of Ready Reserve Mobilization Income Insurance 
                            Program.
Sec. 512. Discharge or retirement of reserve officers in an inactive 
                            status.
Sec. 513. Retention of military technicians in grade of Brigadier 
                            General after mandatory separation date.
Sec. 514. Federal status of service by National Guard members as honor 
                            guards at funerals of veterans.
              Subtitle C--Education and Training Programs

Sec. 521. Service academies foreign exchange study program.
Sec. 522. Programs of higher education of the Community College of the 
                            Air Force.
Sec. 523. Preservation of entitlement to educational assistance of 
                            members of the Selected Reserve serving on 
                            active duty in support of a contingency 
                            operation.
Sec. 524. Repeal of certain staffing and safety requirements for the 
                            Army Ranger Training Brigade.
                   Subtitle D--Decorations and Awards

Sec. 531. Clarification of eligibility of members of Ready Reserve for 
                            award of service Medal for Heroism.
Sec. 532. Waiver of time limitations for award of certain decorations 
                            to specified persons.
Sec. 533. One-year extension of period for receipt of recommendations 
                            for decorations and awards for certain 
                            military intelligence personnel.
Sec. 534. Eligibility of certain World War II military organizations 
                            for award of unit decorations.
              Subtitle E--Military Personnel Voting Rights

Sec. 541. Short title.
Sec. 542. Guarantee of residency.
Sec. 543. State responsibility to guarantee military voting rights.
                       Subtitle F--Other Matters

Sec. 551. Sense of Congress regarding study of matters relating to 
                            gender equity in the Armed Forces.
Sec. 552. Commission on Gender Integration in the Military.
Sec. 553. Sexual harassment investigations and reports.
Sec. 554. Requirement for exemplary conduct by commanding officers and 
                            other authorities.
Sec. 555. Participation of Department of Defense personnel in 
                            management of non-federal entities.
Sec. 556. Technical correction to cross reference in ROPMA provision 
                            relating to position vacancy promotion.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                            Subtitle A--Pay

Sec. 601. Military pay raise for fiscal year 1998.
         Subtitle B--Subsistence, Housing, and Other Allowances

           Part I--Reform of Basic Allowance for Subsistence

Sec. 611. Revised entitlement and rates.
Sec. 612. Transitional basic allowance for subsistence.
Sec. 613. Effective date and termination of transitional authority.
           Part II--Reform of Housing and Related Allowances

Sec. 616. Entitlement to basic allowance for housing.
Sec. 617. Rates of basic allowance for housing.
Sec. 618. Dislocation allowance.
Sec. 619. Family separation and station allowances.
Sec. 620. Other conforming amendments.
Sec. 621. Clerical amendment.
Sec. 622. Effective date.
           Part III--Other Amendments Relating to Allowances

Sec. 626. Revision of authority to adjust compensation necessitated by 
                            reform of subsistence and housing 
                            allowances.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.
           Subtitle C--Bonuses and Special and Incentive Pays

Sec. 631. One-year extension of certain bonuses and special pay 
                            authorities for reserve forces.
Sec. 632. One-year extension of certain bonuses and special pay 
                            authorities for nurse officer candidates, 
                            registered nurses, and nurse anesthetists. 
Sec. 633. One-year extension of authorities relating to payment of 
                            other bonuses and special pays.
Sec. 634. Increased amounts for aviation career incentive pay.
Sec. 635. Aviation continuation pay.
Sec. 636. Eligibility of dental officers for the multiyear retention 
                            bonus provided for medical officers.
Sec. 637. Increased special pay for dental officers.
Sec. 638. Modification of Selected Reserve reenlistment bonus 
                            authority.
Sec. 639. Modification of authority to pay bonuses for enlistments by 
                            prior service personnel in critical skills 
                            in the Selected Reserve.
Sec. 640. Increased special pay and bonuses for nuclear qualified 
                            officers.
Sec. 641. Authority to pay bonuses in lieu of special pay for enlisted 
                            members extending duty at designated 
                            locations overseas.
    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 651. One-year opportunity to discontinue participation in Survivor 
                            Benefit Plan.
Sec. 652. Time for changing survivor benefit coverage from former 
                            spouse to spouse.
Sec. 653. Paid-up coverage under Survivor Benefit Plan.
Sec. 654. Annuities for certain military surviving spouses.
                       Subtitle E--Other Matters

Sec. 661. Eligibility of Reserves for benefits for illness, injury, or 
                            death incurred or aggravated in line of 
                            duty.
Sec. 662. Travel and transportation allowances for dependents before 
                            approval of a member's court-martial 
                            sentence.
Sec. 663. Eligibility of members of the uniformed services for 
                            reimbursement of adoption expenses.
                   TITLE VII--HEALTH CARE PROVISIONS

Sec. 701. Waiver of deductibles, copayments, and annual fees for 
                            members assigned to certain duty locations 
                            far from sources of care.
Sec. 702. Payment for emergency health care overseas for military and 
                            civilian personnel of the On-Site 
                            Inspection Agency.
Sec. 703. Disclosures of cautionary information on prescription 
                            medications.
Sec. 704. Health care services for certain Reserves who served in 
                            Southwest Asia during the Persian Gulf War.
Sec. 705. Collection of dental insurance premiums.
Sec. 706. Dental insurance plan coverage for retirees of uniformed 
                            service in the Public Health Service and 
                            NOAA.
Sec. 707. Prosthetic devices for dependents.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

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

Sec. 801. Streamlined approval requirements for contracts under 
                            international agreements.
Sec. 802. Restriction on undefinitized contract actions.
Sec. 803. Expansion of authority to cross fiscal years to all severable 
                            service contracts not exceeding a year.
Sec. 804. Limitation on allowability of compensation for certain 
                            contractor personnel.
Sec. 805. Increased price limitation on purchases of right-hand drive 
                            vehicles.
Sec. 806. Conversion of defense capability preservation authority to 
                            Navy shipbuilding capability preservation 
                            authority.
Sec. 807. Elimination of certification requirement for grants.
Sec. 808. Repeal of limitation on adjustment of shipbuilding contracts.
                    Subtitle B--Contract Provisions

Sec. 811. Contractor guarantees of major systems.
Sec. 812. Vesting of title in the United States under contracts paid 
                            under progress payment arrangements or 
                            similar arrangements.
              Subtitle C--Acquisition Assistance Programs

Sec. 821. Procurement technical assistance programs.
Sec. 822. One-year extension of Pilot Mentor-Protege Program.
Sec. 823. Test program for negotiation of comprehensive subcontracting 
                            plans.
Sec. 824. Price preference for small and disadvantaged businesses.
                 Subtitle D--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
                            litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Content of limited selected acquisition reports.
Sec. 834. Unit cost reports.
Sec. 835. Central Department of Defense point of contact for 
                            contracting information.
                       Subtitle E--Other Matters

Sec. 841. Defense business combinations.
Sec. 842. Lease of nonexcess property of Defense Agencies.
Sec. 843. Promotion rate for officers in an Acquisition Corps.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Principal duty of Assistant Secretary of Defense for Special 
                            Operations and Low Intensity Conflict.
Sec. 902. Professional military education schools.
Sec. 903. Use of CINC Initiative Fund for force protection.
Sec. 904. Transfer of TIARA programs.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authority for obligation of certain unauthorized fiscal year 
                            1997 defense appropriations.
Sec. 1003. Authorization of prior emergency supplemental appropriations 
                            for fiscal year 1997.
Sec. 1004. Increased transfer authority for fiscal year 1996 
                            authorizations.
Sec. 1005. Biennial financial management strategic plan.
Sec. 1006. Revision of authority for Fisher House Trust Funds.
Sec. 1007. Availability of certain fiscal year 1991 funds for payment 
                            of contract claim.
Sec. 1008. Estimates and requests for procurement and military 
                            construction for the reserve components.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Long-term charter of vessel for surveillance towed array 
                            sensor program.
Sec. 1012. Procedures for sale of vessels stricken from the Naval 
                            Vessel Register.
Sec. 1013. Transfers of naval vessels to certain foreign countries.
                  Subtitle C--Counter-Drug Activities

Sec. 1021. Authority to provide additional support for counter-drug 
                            activities of Mexico.
Sec. 1022. Authority to provide additional support for counter-drug 
                            activities of Peru and Colombia.
                    Subtitle D--Reports and Studies

Sec. 1031. Repeal of reporting requirements.
Sec. 1032. Common measurement of operations and personnel tempo.
Sec. 1033. Report on overseas deployment.
Sec. 1034. Report on military readiness requirements of the Armed 
                            Forces.
Sec. 1035. Assessment of cyclical readiness posture of the Armed 
                            Forces.
Sec. 1036. Overseas infrastructure requirements.
Sec. 1037. Report on aircraft inventory.
Sec. 1038. Disposal of excess materials.
Sec. 1039. Review of former spouse protections.
Sec. 1040. Completion of GAO reports for Congress.
                       Subtitle E--Other Matters

Sec. 1051. Psychotherapist-patient privilege in the Military Rules of 
                            Evidence.
Sec. 1052. National Guard Civilian Youth Opportunities Pilot Program.
Sec. 1053. Protection of Armed Forces personnel during peace 
                            operations.
Sec. 1054. Limitation on retirement or dismantlement of strategic 
                            nuclear delivery systems.
Sec. 1055. Acceptance and use of landing fees for use of overseas 
                            military airfields by civil aircraft.
Sec. 1056. One-year extension of international nonproliferation 
                            initiative.
Sec. 1057. Arms control implementation and assistance for facilities 
                            subject to inspection under the Chemical 
                            Weapons Convention.
Sec. 1058. Sense of Senate regarding the relationship between 
                            environmental laws and United States' 
                            obligations under the Chemical Weapons 
                            Convention.
Sec. 1059. Sense of Congress regarding funding for reserve component 
                            modernization not requested in the annual 
                            budget request.
Sec. 1060. Authority of Secretary of Defense to settle claims relating 
                            to pay, allowances, and other benefits
Sec. 1061. Coordination of access of commanders and deployed units to 
                            intelligence collected and analyzed by the 
                            intelligence community.
Sec. 1062. Protection of imagery, imagery intelligence, and geospatial 
                            information and data.
Sec. 1063. Protection of air safety information voluntarily provided by 
                            a charter air carrier.
Sec. 1064. Sustainment and operation of Global Positioning System.
Sec. 1065. Law enforcement authority for special agents of the Defense 
                            Criminal Investigative Service.
Sec. 1066. Repeal of requirement for continued operation of the Naval 
                            Academy dairy farm.
Sec. 1067. POW/MIA intelligence analysis cell.
Sec. 1068. Protection of employees from retaliation for certain 
                            disclosures of classified information.
Sec. 1069. Applicability of certain pay authorities to members of the 
                            Commission on Servicemembers and Veterans 
                            Transition Assistance.
Sec. 1070. Transfer of B-17 aircraft to museum.
Sec. 1071. Five-year extension of aviation insurance program.
Sec. 1072. Treatment of military flight operations.
Sec. 1073. Naturalization of foreign nationals who served honorably in 
                            the Armed Forces of the United States.
Sec. 1074. Designation of Bob Hope as honorary veteran.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Use of prohibited constraints to manage Department of 
                            Defense personnel.
Sec. 1102. Employment of civilian faculty at the Marine Corps 
                            University.
Sec. 1103. Extension and revision of voluntary separation incentive pay 
                            authority.
Sec. 1104. Repeal of deadline for placement consideration of 
                            involuntarily separated military reserve 
                            technicians.
Sec. 1105. Rate of pay of Department of Defense overseas teacher upon 
                            transfer to General Schedule position.
Sec. 1106. Naturalization of employees of the George C. Marshall 
                            European Center for Security Studies.
            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.
Sec. 2105. Authority to use certain prior year funds to construct a 
                            heliport at Fort Irwin, California.
                            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. Authorization of military construction project at Pascagoula 
                            Naval Station, Mississippi, for which funds 
                            have been appropriated.
                         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.
Sec. 2305. Authorization of military construction project at McConnell 
                            Air Force Base, Kansas, for which funds 
                            have been appropriated.
                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Clarification of authority relating to fiscal year 1997 
                            project at Naval Station, Pearl Harbor, 
                            Hawaii.
Sec. 2407. Authority to use prior year funds to carry out certain 
                            Defense Agency military construction 
                            projects.
Sec. 2408. Modification of authority to carry out fiscal year 1995 
                            projects.
Sec. 2409. Availability of funds for fiscal year 1995 project relating 
                            to relocatable over-the-horizon radar, 
                            Naval Station Roosevelt Roads, Puerto Rico.
   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.
Sec. 2602. Authorization of Army National Guard construction project, 
                            aviation support facility, Hilo, Hawaii, 
                            for which funds have been appropriated.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                            specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995 
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994 
                            projects.
Sec. 2704. Extension of authorization of fiscal year 1993 project.
Sec. 2705. Extension of authorizations of certain fiscal year 1992 
                            projects.
Sec. 2706. Effective date.
                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in ceiling for minor land acquisition projects.
Sec. 2802. Sale of utility systems of the military departments.
Sec. 2803. Administrative expenses for certain real property 
                            transactions.
Sec. 2804. Use of financial incentives for energy savings and water 
                            cost savings.
                      Subtitle B--Land Conveyances

Sec. 2811. Modification of authority for disposal of certain real 
                            property, Fort Belvoir, Virginia.
Sec. 2812. Correction of land conveyance authority, Army Reserve 
                            Center, Anderson, South Carolina.
Sec. 2813. Land conveyance, Hawthorne Army Ammunition Depot, Mineral 
                            County, Nevada.
Sec. 2814. Long-term lease of property, Naples, Italy.
Sec. 2815. Land conveyance, Topsham Annex, Naval Air Station, 
                            Brunswick, Maine.
Sec. 2816. Land conveyance, Naval Weapons Industrial Reserve Plant No. 
                            464, Oyster Bay, New York.
Sec. 2817. Land conveyance, Charleston Family Housing Complex, Bangor, 
                            Maine.
Sec. 2818. Land conveyance, Ellsworth Air Force Base, South Dakota.
                       Subtitle C--Other Matters

Sec. 2831. Disposition of proceeds of sale of Air Force Plant No. 78, 
                            Brigham City, Utah.
 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. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense environmental management privatization.
Sec. 3105. Defense nuclear waste disposal.
                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
                            activities.
Sec. 3127. Funds available for all national security programs of the 
                            Department of Energy.
Sec. 3128. Availability of funds.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Defense environmental management privatization projects.
Sec. 3132. International cooperative stockpile stewardship programs.
Sec. 3133. Modernization of enduring nuclear weapons complex.
Sec. 3134. Tritium production.
Sec. 3135. Processing, treatment, and disposition of spent nuclear fuel 
                            rods and other legacy nuclear materials at 
                            the Savannah River Site.
Sec. 3136. Limitations on use of funds for laboratory directed research 
                            and development purposes.
Sec. 3137. Permanent authority for transfers of defense environmental 
                            management funds.
Sec. 3138. Prohibition on recovery of certain additional costs for 
                            environmental response actions associated 
                            with the Formerly Utilized Site Remedial 
                            Action Project program.
                       Subtitle D--Other Matters

Sec. 3151. Administration of certain Department of Energy activities.
Sec. 3152. Modification and extension of authority relating to 
                            appointment of certain scientific, 
                            engineering, and technical personnel.
Sec. 3153. Annual report on plan and program for stewardship, 
                            management, and certification of warheads 
                            in the nuclear weapons stockpile.
Sec. 3154. Submittal of biennial waste management reports.
Sec. 3155. Repeal of obsolete reporting requirements.
Sec. 3156. Commission on safeguarding and security of nuclear weapons 
                            and materials at Department of Energy 
                            facilities.
Sec. 3157. Modification of authority on commission on maintaining 
                            United States nuclear weapons expertise.
Sec. 3158. Land transfer, Bandelier National Monument.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National 
                            Defense Stockpile.
Sec. 3304. Return of surplus platinum from the Department of the 
                            Treasury.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Leasing of certain oil shale reserves.
Sec. 3403. Repeal of requirement to assign Navy officers to Office of 
                            Naval Petroleum and Oil Shale Reserves.
                  TITLE XXXV--PANAMA CANAL COMMISSION

     Subtitle A--Authorization of Expenditures From Revolving Fund

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.
          Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to Canal transition.
    Part I--Transition Matters Relating to Commission Officers and 
                               Employees

Sec. 3521. Authority for the Administrator of the Commission to accept 
                            appointment as the Administrator of the 
                            Panama Canal Authority.
Sec. 3522. Post-Canal transfer personnel authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation 
                            of Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for 
                            Commission personnel no longer subject to 
                            Federal Travel Regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance 
                            pay for certain employees separated by 
                            Panama Canal Authority after Canal Transfer 
                            Date.
Part II--Transition Matters Relating to Operation and Administration of 
                                 Canal

Sec. 3541. Establishment of procurement system and board of contract 
                            appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory 
                            functions relating to employment 
                            classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    For purposes of this Act, the term ``congressional defense 
committees'' means--
            (1) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on National Security and the Committee on 
        Appropriations of the House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Army as follows:
            (1) For aircraft, $1,394,459,000.
            (2) For missiles, $1,223,851,000.
            (3) For weapons and tracked combat vehicles, 
        $1,179,107,000.
            (4) For ammunition, $1,043,202,000.
            (5) For other procurement, $2,918,730,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 1998 for procurement for the Navy as follows:
            (1) For aircraft, $6,482,265,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,200,393,000.
            (3) For shipbuilding and conversion, $8,593,358,000.
            (4) For ammunition for the Navy and Marine Corps, 
        $369,797,000.
            (5) For other procurement, $3,177,700,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1998 for procurement for the Marine Corps in the amount 
of $554,806,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Air Force as follows:
            (1) For aircraft, $6,048,915,000.
            (2) For missiles, $2,411,241,000.
            (3) For ammunition, $420,784,000.
            (4) For other procurement, $6,798,453,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for Defense-wide procurement in the amount of $1,749,285,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement of aircraft, vehicles, communications equipment, and 
other equipment for the reserve components of the Armed Forces as 
follows:
            (1) For the Army National Guard, $100,000,000.
            (2) For the Air National Guard, $186,300,000.
            (3) For the Army Reserve, $40,000,000.
            (4) For the Naval Reserve, $40,000,000.
            (5) For the Air Force Reserve, $246,700,000.
            (6) For the Marine Corps Reserve, $40,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Inspector General of the Department of Defense 
in the amount of $1,800,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is are hereby authorized to be appropriated for fiscal year 
1998 the amount of $614,700,000 for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $274,068,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for the Department of Defense for carrying out the Defense Export Loan 
Guarantee Program established under section 2540 of title 10, United 
States Code, in the total amount of $1,231,000.

                       Subtitle B--Army Programs

SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.

    (a) Limitation.--Not more than 25 percent of the amounts authorized 
to be appropriated pursuant to section 101(1), 105(1), or 105(3) for 
modifications or upgrades of helicopters may be obligated before the 
date that is 30 days after the Secretary of the Army submits to the 
congressional defense committees a comprehensive plan for the 
modernization of the Army's helicopter fleet.
    (b) Content of Plan.--The plan required by subsection (a) shall, at 
a minimum, contain the following:
            (1) A detailed assessment of the Army's present and future 
        helicopter requirements and present and future helicopter 
        inventory, including number of aircraft, age of aircraft, 
        availability of spare parts, flight hour costs, roles and 
        functions assigned to the fleet as a whole and to its 
        individual types of aircraft, and the mix of active component 
        aircraft and reserve component aircraft in the fleet.
            (2) Estimates and analysis of requirements and funding 
        proposed for procurement of new aircraft.
            (3) An analysis of the requirements for and funding 
        proposed for extended service plans or service life extension 
        plans for fleet aircraft.
            (4) A plan for retiring aircraft no longer required or 
        capable of performing assigned functions, including a 
        discussion of opportunities to eliminate older aircraft models 
        and to focus future funding on current or future generation 
        aircraft.
            (5) The implications of the plan for the defense industrial 
        base.
    (c) Funding in Future-Years Defense Program.--The Secretary of the 
Army shall include in the plan required by subsection (a) a 
certification that the plan is to be funded in the future-years defense 
program submitted to Congress in 1998 pursuant to section 221(a) of 
title 10, United States Code.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR AH-64D LONGBOW APACHE 
              FIRE CONTROL RADAR.

    Beginning with the fiscal year 1998 program year, the Secretary of 
the Army may, in accordance with section 2306b of title 10, United 
States Code, enter into a multiyear procurement contract for the 
procurement of the AH-64D Longbow Apache fire control radar.

                       Subtitle C--Navy Programs

SEC. 121. NEW ATTACK SUBMARINE PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts authorized 
to be appropriated by section 102(a)(3) for fiscal year 1998, 
$2,599,800,000 is available for the New Attack Submarine Program.
    (b) Contract Authority.--(1) The Secretary of the Navy may enter 
into a contract for the procurement of four submarines under the New 
Attack Submarine program.
    (2) Any contract entered into under paragraph (1)--
            (A) shall, notwithstanding section 2304(k) of title 10, 
        United States Code, be awarded to one of the two eligible 
        shipbuilders as the prime contractor on the condition that the 
        prime contractor enter into one or more subcontracts (under 
        such prime contract) with the other of the two eligible 
        shipbuilders as contemplated in the New Attack Submarine Team 
        Agreement; and
            (B) shall provide for--
                    (i) construction of the first submarine in fiscal 
                year 1998; and
                    (ii) advance construction and advance procurement 
                of materiel for the second, third, and fourth 
                submarines in fiscal year 1998.
    (3) The following shipbuilders are eligible for a contract under 
this subsection:
            (A) The Electric Boat Corporation.
            (B) The Newport News Shipbuilding and Drydock Company.
    (4) In paragraph (2)(A), the term ``New Attack Submarine Team 
Agreement'' means the agreement known as the Team Agreement between 
Electric Boat Corporation and Newport News Shipbuilding and Drydock 
Company, dated February 25, 1997, that was submitted to Congress by the 
Secretary of the Navy on March 31, 1997.
    (c) Limitation of Liability.--If a contract entered into under this 
section is terminated, the United States shall not be liable for 
termination costs in excess of the total amount appropriated for the 
New Attack Submarine program.
    (d) Repeals of Superseded Provisions of Previous Defense 
Authorization Laws.--(1) Section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
206) is amended--
            (A) in subsection (a)(1)(B)--
                    (i) in clause (i), by striking out ``, which shall 
                be built by Electric Boat Division''; and
                    (ii) in clause (ii), by striking out ``, which 
                shall be built by Newport News Shipbuilding''; and
            (B) in subsection (b), by striking out paragraph (1).
    (2) Section 121 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2441) is amended--
            (A) in subsection (a)--
                    (i) in paragraph (1)(B), by striking out ``to be 
                built by Electric Boat Division''; and
                    (ii) in paragraph (1)(C), by striking out ``to be 
                built by Newport News Shipbuilding'';
            (B) in subsection (d), by striking out paragraph (2);
            (C) in subsection (e), by striking out paragraph (1); and
            (D) in subsection (g), by striking out ``the committees 
        specified in subsection (e)(1)'' in paragraphs (3) and(4) and 
        inserting in lieu thereof ``the Committee on Armed Services of 
        the Senate and the Committee on National Security of the House 
        of Representatives''.
    (e) Inapplicability of Superseded Aspects of Attack Submarine 
Development Plan.--The Secretary of Defense and the Secretary of the 
Navy are not required to carry out the portions of the program plan 
submitted under subsection (c) of section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 that are included in the plan 
pursuant to subparagraphs (A), (B), and (E) of paragraph (2) of such 
subsection.

SEC. 122. NUCLEAR AIRCRAFT CARRIER PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts authorized 
to be appropriated by section 102(a)(3) for fiscal year 1998, 
$345,000,000 is available for the procurement and construction of 
nuclear and non-nuclear components for the CVN-77 nuclear aircraft 
carrier program. The Secretary of the Navy is authorized to enter into 
a contract or contracts with the shipbuilder for the procurement and 
construction of such components.
    (b) Amounts Authorized From RDT&E Account.--Of the amounts 
authorized to be appropriated by section 201(2) for fiscal year 1998, 
$35,000,000 is available for research, development, test, and 
evaluation of technologies that have potential for use in the CVN-77 
nuclear aircraft carrier program.

SEC. 123. EXCEPTION TO COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

    In the application of the limitation in section 133(a) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 211), there shall not be taken into account 
$745,700,000 of the amounts that were obligated or expended for 
procurement of Seawolf class submarines before the date of the 
enactment of this Act (that amount being the total of amounts of funds 
appropriated for fiscal years 1990, 1991, and 1992 for the procurement 
of Seawolf class submarines that have been obligated or expended for 
procurement under the SSN-23, SSN-24, and SSN-25 Seawolf class 
submarine programs, which have been canceled since the limitation took 
effect).

SEC. 124. AIRBORNE SELF-PROTECTION JAMMER PROGRAM.

    (a) Limitation on Resumption of Serial Production.--Serial 
production of the airborne self-protection jammer may not be resumed 
until the Director of Operational Test and Evaluation of the Department 
of Defense has certified in writing to Congress that--
            (1) the capabilities of the airborne self-protection jammer 
        exceed the capabilities of the integrated defensive electronics 
        countermeasure system that is under development for use in F/A-
        18E/F aircraft;
            (2) the units of the airborne self-protection jammer to be 
        produced are to be used in F/A-18E/F aircraft; and
            (3) the deficiencies in the airborne self-protection jammer 
        noted by the Director before the date of the enactment of this 
        Act have been eliminated.
    (b) Limitation on Obligation of Funds.--No funds authorized to be 
appropriated by this or any other Act may be obligated for serial 
production of the airborne self-protection jammer until the Secretary 
of Defense has certified in writing to Congress that funding is 
programmed for serial production of the airborne self-protection jammer 
in the future-years defense program.

                     Subtitle D--Air Force Programs

SEC. 131. B-2 BOMBER AIRCRAFT PROGRAM.

    (a) Prohibition.--None of the funds authorized to be appropriated 
in this or any other Act may be used--
            (1) to procure any additional B-2 bomber aircraft; or
            (2) to maintain any part of the bomber industrial base 
        solely for the purpose of preserving the option to procure 
        additional B-2 bomber aircraft in the future.
    (b) Exceptions.--The prohibition in subsection (a) does not apply 
to--
            (1) any B-2 bomber aircraft that is covered by a contract 
        for the production of that aircraft as of the date of the 
        enactment of this Act; or
            (2) any part of the bomber industrial base that is 
        necessary for producing all B-2 bomber aircraft referred to in 
        paragraph (1), but only for so long as is necessary to complete 
        the production of such aircraft.

                       Subtitle E--Other Matters

SEC. 141. PROHIBITION ON USE OF FUNDS FOR ACQUISITION OR ALTERATION OF 
              PRIVATE DRYDOCKS.

    None of the funds authorized to be appropriated by this or any 
other Act may be used, directly or indirectly, to purchase, lease, 
upgrade, or modify privately-owned drydocks.

SEC. 142. REPLACEMENT OF ENGINES ON AIRCRAFT DERIVED FROM BOEING 707 
              AIRCRAFT.

    (a) Analysis Required.--The Under Secretary of Defense for 
Acquisition and Technology shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives an analysis of the requirements of the 
Department of Defense for replacing engines on the aircraft of the 
department that are derived from the Boeing 707 aircraft and the costs 
of meeting the requirements.
    (b) Content.--The analysis shall include the following:
            (1) The number of aircraft described in subsection (a) that 
        are in the inventory of the Department of Defense and the 
        number of such aircraft that are projected to be in the 
        inventory of the department in 5 years, in 10 years, and in 15 
        years.
            (2) For each type of such aircraft, the estimated cost of 
        operating the aircraft for each fiscal year after fiscal year 
        1997 and before fiscal year 2015, taking into account 
        historical patterns of usage and projected support costs.
            (3) For each type of such aircraft, the estimated costs and 
        the benefits of replacing the engines on the aircraft, analyzed 
        on the basis of the experience under the limited program for 
        replacing the engines on RC-135 aircraft that was undertaken 
        during fiscal years 1995, 1996, and 1997.
            (4) The estimated total cost of replacing the engines 
        pursuant to a program that provides for replacement of the 
        engines on all of the aircraft of one type before undertaking 
        the replacement of the engines on the aircraft of another type, 
        with a higher priority being given in turn to each type of 
        aircraft in which the replacement of the engines is expected to 
        yield the anticipated benefits of replacement faster.
            (5) Various plans for replacement of engines that the Under 
        Secretary considers best on the basis of costs and benefits.
    (c) Submission Deadline.--The Under Secretary shall submit the 
report under this section not later than March 1, 1998.

SEC. 143. EXCEPTION TO REQUIREMENT FOR A PARTICULAR DETERMINATION FOR 
              SALES OF MANUFACTURED ARTICLES OR SERVICES OF ARMY 
              INDUSTRIAL FACILITIES OUTSIDE THE UNITED STATES.

    Section 4543 of title 10, United States Code, is amended--
            (1) in subsection (a)(5), by inserting ``, except in the 
        case of a sale described in subsection (b),'' after ``the 
        Secretary of the Army determines'';
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Exception to Requirement for a Particular Determination.--A 
determination described in subsection (a)(5) is not necessary under the 
regulations in the case of--
            ``(1) a sale of articles to be incorporated into a weapon 
        system being procured by the Department of Defense; or
            ``(2) a sale of services to be used in the manufacture of a 
        weapon system being procured by the Department of Defense.''.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,750,462,000.
            (2) For the Navy, $7,812,972,000.
            (3) For the Air Force, $14,302,264,000.
            (4) For Defense-wide activities, $10,072,347,000, of 
        which--
                    (A) $268,183,000 is authorized for the activities 
                of the Director, Test and Evaluation; and
                    (B) $31,384,000 is authorized for the Director of 
                Operational Test and Evaluation.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. JOINT STRIKE FIGHTER PROGRAM.

    (a) Report.--Not later than February 15, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the options for the sequence in which the variants of the joint 
strike fighter are to be produced and fielded.
    (b) Content of Report.--The report shall contain the following:
            (1) A review of the plan for production under the Joint 
        Strike Fighter program that was used by the Department of 
        Defense for developing the funding estimates for the fiscal 
        year 1999 budget request for the Department of Defense.
            (2) An estimate of the costs, and an analysis of the costs 
        and benefits, of producing the joint strike fighter variants in 
        a sequence that provides for fielding of the naval variant of 
        the aircraft first.
            (3) A comparison of the costs and benefits of the various 
        options for the sequence for fielding the variants of the joint 
        strike fighter that the Secretary of Defense considers likely 
        to be the options from among which a sequence for fielding is 
        selected, including a discussion of the effects that selection 
        of each such option would have on the costs and rates of 
        production of the units of F/A-18E/F and F-22 aircraft that are 
        in production when the Joint Strike Fighter Program proceeds 
        into production.
    (c) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 90 percent of the total amount authorized to be appropriated 
under this Act for the Joint Strike Fighter Program may be obligated 
until the date that is 30 days after the date on which the 
congressional defense committees receive the report required under this 
section.
    (d) Fiscal Year 1998 Budget Defined.--In this section, the term 
``fiscal year 1999 budget request for the Department of Defense'' means 
the budget estimates for the Department of Defense for fiscal year 1999 
that were submitted to Congress by the Secretary of Defense in 
connection with the submission of the budget for fiscal year 1998 to 
Congress under section 1105 of title 31, United States Code.

SEC. 212. F-22 AIRCRAFT PROGRAM.

    (a) Limitation on Total Cost of Engineering and Manufacturing 
Development.--The total amount obligated or expended for engineering 
and manufacturing development under the F-22 aircraft program may not 
exceed $18,688,000,000.
    (b) Limitation on Obligation of Funds.--Of the total amount 
authorized to be appropriated for the F-22 aircraft program for a 
fiscal year, not more than 90 percent of the amount may be obligated 
until the Comptroller General submits to Congress--
            (1) the report required to be submitted in that fiscal year 
        under subsection (c); and
            (2) a certification that the Comptroller General has had 
        access to sufficient information to make informed judgments on 
        the matters covered by the report.
    (c) Annual GAO Review.--(1) Not later than December 1 of each year, 
the Comptroller General shall review the F-22 aircraft program and 
submit to Congress a report on the results of the review. The 
Comptroller General shall also submit to Congress for each report a 
certification regarding whether the Comptroller General has had access 
to sufficient information to make informed judgments on the matters 
covered by the report.
    (2) The report submitted on the program each year shall include the 
following:
            (A) The extent to which engineering and manufacturing 
        development under the program is meeting the goals established 
for engineering and manufacturing development under the program.
            (B) The status of costs, testing, and modifications.
            (C) The plan for engineering and manufacturing development 
        (leading to production) under the program for the fiscal year 
        that begins in the following year.
            (D) A conclusion regarding whether the plan referred to in 
        subparagraph (C) can be successfully carried out consistent 
        with the limitation in subsection (a).
            (E) A conclusion regarding whether engineering and 
        manufacturing development (leading to production) under the 
        program is likely to be completed at a total cost not in excess 
        of the amount specified in subsection (a).
    (3) The Comptroller General shall submit the first report under 
this subsection not later than December 1, 1997. No report is required 
under this subsection after engineering and manufacturing development 
under the program has been completed.
    (d) Requirement To Support Annual GAO Review.--The Secretary of the 
Air Force and the prime contractor under the F-22 aircraft program 
shall provide the Comptroller General with such information on the 
program as the Comptroller considers necessary to carry out the 
responsibilities under subsection (c).

SEC. 213. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.

    (a) Limitation on Total Cost of Advanced Concept Technology 
Demonstration.--(1) The total amount obligated or expended for advanced 
concept technology demonstration under the High Altitude Endurance 
Unmanned Vehicle Program through fiscal year 2003 may not exceed 
$476,826,000.
    (2) The total amount obligated or expended in fiscal year 1999, 
2000, 2001, or 2002 for advanced concept technology demonstration under 
the High Altitude Endurance Unmanned Vehicle Program may not exceed the 
amount specified for that fiscal year, as follows:
            (A) In fiscal year 1999, not more than $167,864,000.
            (B) In fiscal year 2000, not more than $31,374,000.
            (C) In fiscal year 2001, not more than $19,106,000.
            (D) In fiscal year 2002, not more than $20,866,000.
    (b) Limitation on Acquisition.--No high altitude endurance unmanned 
vehicle may be acquired after the date of the enactment of this Act 
until 50 percent of the testing programmed in the test and evaluation 
master plan (as of such date) for the high altitude endurance unmanned 
vehicle has been completed.
    (c) Limitation on Proceeding.--The High Altitude Endurance Unmanned 
Vehicle Program may not proceed beyond advanced concept technology 
demonstration until the Comptroller General has certified to Congress 
that the high altitude endurance unmanned vehicles can be produced 
under the program at an average unit cost that does not exceed 
$10,000,000 (the so-called fly away price) in fiscal year 1994 constant 
dollars.
    (d) GAO Review.--(1) The Comptroller General shall review the High 
Altitude Endurance Unmanned Vehicle Program for purposes of making the 
certification under subsection (c).
    (2) The Secretary of Defense and the prime contractors under the 
High Altitude Endurance Unmanned Vehicle Program shall provide the 
Comptroller General with such information on the program as the 
Comptroller considers necessary to make the determinations required for 
the certification under subsection (c).

SEC. 214. ADVANCED ANTI-RADIATION GUIDED MISSILE PROGRAM.

    To the extent provided in appropriations Acts, the Secretary of the 
Navy may use not more than $25,000,000 of the amount appropriated for 
the Navy for fiscal year 1997 for research, development, test, 
evaluation for the Advanced Anti-Radiation Guided Missile Program in 
order to fund fiscal year 1998 research, development, test, and 
evaluation programs of the Navy that have a higher priority than such 
program.

SEC. 215. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

    (a) Limitation on Staff Years Funded.--Not more than 6,006 staff 
years of technical effort (staff years) may be funded for federally 
funded research and development centers out of the funds authorized to 
be appropriated for the Department of Defense for fiscal year 1998.
    (b) Allocations Among Centers.--(1) Not later than 60 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report that specifies 
the number of staff years of technical effort that is to be allocated 
(for funding as described in subsection (a)) to each defense federally 
funded research and development center for fiscal year 1998.
    (2) After the submission of the report on allocation of staff years 
of technical effort under paragraph (1), the Secretary of Defense may 
not reallocate more than 5 percent of the staff years of technical 
effort allocated to a federally funded research and development center 
for fiscal year 1998 from that center to other federally funded 
research and development centers until 30 days after the date on which 
the Secretary has submitted a justification for the reallocation to the 
congressional defense committees.
    (c) Fiscal Year 1999 Allocation.--(1) The Secretary of Defense 
shall submit to the congressional defense committees a report that 
specifies the number of staff years of technical effort that is to be 
allocated to each federally funded research and development center for 
fiscal year 1999 for funding out of the funds authorized to be 
appropriated for the Department of Defense for that fiscal year.
    (2) The report shall be submitted at the same time that the 
President submits the budget for fiscal year 1999 to Congress under 
section 1105 of title 31, United States Code.
    (c) Staff Year Defined.--In this section, the term ``staff year of 
technical effort'' means 1,810 hours of paid effort by direct and 
consultant labor performing professional-level technical work primarily 
in the fields of studies and analysis, system engineering and 
integration, systems planning, program and policy planning and 
analyses, and basic and applied research.

SEC. 216. GOAL FOR DUAL-USE SCIENCE AND TECHNOLOGY PROJECTS.

    (a) Goals.--(1) Subject to paragraph (3), it shall be the objective 
of the Secretary of each military department to obligate for dual-use 
projects in each fiscal year referred to in paragraph (2), out of the 
total amount authorized to be appropriated for such fiscal year for new 
projects initiated under the applied research programs of the military 
department, the percent of such amount that is specified for that 
fiscal year in paragraph (2).
    (2) The objectives for fiscal years under paragraph (1) are as 
follows:
            (A) For fiscal year 1998, 5 percent.
            (B) For fiscal year 1999, 7 percent.
            (C) For fiscal year 2000, 10 percent.
    (3) The Secretary of Defense may establish for a military 
department for a fiscal year an objective different from the objective 
set forth in paragraph (2) if the Secretary--
            (A) determines that compelling national security 
        considerations require the establishment of the different 
        objective; and
            (2) notifies Congress of the determination and the reasons 
        for the determination.
    (b) Designation of Official for Dual-Use Programs.--(1) The 
Secretary of Defense shall designate a senior official in the Office of 
the Secretary of Defense to carry out responsibilities for dual-use 
programs under this subsection. The designated official shall report 
directly to the Under Secretary of Defense for Acquisition and 
Technology.
    (2) The primary responsibilities of the designated official shall 
include developing policy and overseeing the establishment of, and 
adherence to, procedures for ensuring that dual-use programs are 
initiated and administered effectively and that applicable commercial 
technologies are integrated into current and future military systems.
    (3) In carrying out the responsibilities, the designated official 
shall ensure that--
            (A) dual-use projects are consistent with the joint 
        warfighting science and technology plan referred to in section 
        270 of the National Defense Authorization Act for Fiscal Year 
        1997 (Public Law 104-201; 10 U.S.C. 2501 note); and
            (B) the dual-use projects of the military departments and 
        defense agencies of the Department of Defense are coordinated 
        and avoid unnecessary duplication.
    (c) Financial Commitment of Non-Federal Government Participants.--
The total amount of funds provided by a military department for a dual-
use project entered into by the Secretary of that department shall not 
exceed 50 percent of the total cost of the project. The Secretary may 
consider in-kind contributions by non-Federal participants for dual-use 
projects for the purpose of calculating the share of project costs that 
has been or is being undertaken by such participants only to the extent 
provided in regulations issued pursuant to section 2511(c)(2) of title 
10, United States Code.
    (d) Use of Competitive Procedures.--Funds obligated for a dual-use 
project may be counted toward meeting an objective under subsection (a) 
only if the funds are obligated for a contract, grant, cooperative 
agreement, or other transaction that was entered into through the use 
of competitive procedures.
    (e) Report.--(1) Not later than January 31 of each of 1998, 1999, 
and 2000, the Secretary of Defense shall submit a report to the 
congressional defense committees on the progress made by the Department 
of Defense in meeting the objectives set forth in subsection (a) during 
the preceding fiscal year.
    (2) The report for a fiscal year shall contain, at a minimum, the 
following:
            (A) The aggregate value of all contracts, grants, 
        cooperative agreements, or other transactions entered into 
        during the fiscal year for which funding is counted toward 
        meeting an objective under this section, expressed in 
        relationship to the total amount appropriated for the applied 
        research programs in the Department of Defense for that fiscal 
        year.
            (B) For each military department, the value of all 
        contracts, grants, cooperative agreements, or other 
        transactions entered into during the fiscal year for which 
        funding is counted toward meeting an objective under this 
        section, expressed in relationship to the total amount 
        appropriated for the applied research program of the military 
        department for that fiscal year.
            (C) A summary of the cost-sharing arrangements in dual-use 
        projects that were initiated during the fiscal year and are 
        counted toward reaching an objective under this section.
            (D) A description of the regulations, directives, or other 
        procedures that have been issued by the Secretary of Defense or 
        the Secretary of a military department to increase the 
        percentage of the total value of the dual-use projects 
        undertaken to meet or exceed an objective under this section.
            (E) Any recommended legislation to facilitate achievement 
        of objectives under this section.
    (f) Repeal of Superseded Authority.--Section 203 of the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2451) is repealed.
    (g) Definitions.--In this section:
            (1) The term ``applied research program'' means a program 
        of a military department which is funded under the 6.2 
        Research, Development, Test and Evaluation account of that 
        department.
            (2) The term ``dual-use project'' means a project under a 
        program of a military department or a defense agency under 
        which research or development of a dual-use technology is 
        carried out and the costs of which are shared by the Department 
        of Defense and non-Government entities.

SEC. 217. TRANSFERS OF AUTHORIZATIONS FOR COUNTERPROLIFERATION SUPPORT 
              PROGRAM.

    (a) In General.--In addition to the transfer authority provided in 
section 1001, 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 1998 to counterproliferation 
programs, projects, and activities identified as areas for progress by 
the Counterproliferation Program Review Committee established by 
section 1605 of the National Defense Authorization Act for Fiscal Year 
1994 (22 U.S.C. 2751 note). Amounts of authorizations so transferred 
shall be merged with and be available for the same purposes as the 
authorization to which transferred.
    (b) Limitations.--(1) The total amount of authorizations 
transferred under the authority of this section may not exceed 
$50,000,000.
    (2) The authority provided by this section to transfer 
authorizations--
            (A) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (B) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect of Transfers on Accounts.--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) Congressional Notification.--The Secretary of Defense shall 
promptly notify Congress of transfers made under the authority of this 
section.

SEC. 218. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated under 
section 201(4), $80,000,000 shall be available for the kinetic energy 
tactical anti-satellite technology program.
    (b) Limitation.--None of the funds authorized to be appropriated to 
the Department of Defense for fiscal year 1998 for program element 
65104D, relating to technical studies and analyses, may be obligated or 
expended until the funds specified in subsection (a) have been released 
to the program manager of the tactical kinetic energy anti-satellite 
technology program for implementation of that program.

SEC. 219. CLEMENTINE 2 MICRO-SATELLITE DEVELOPMENT PROGRAM.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 201(3), $50,000,000 shall be available for the Clementine 2 
micro-satellite near-earth asteroid interception mission.
    (b) Limitation.--Of the funds authorized to be appropriated 
pursuant to this Act in program element 64480F for the Global 
Positioning System Block IIF satellite system, not more than 
$35,000,000 may be obligated until the Secretary of Defense certifies 
to Congress that the Secretary has made available for obligation the 
funds appropriated pursuant to subsection (a) for the purpose specified 
in that subsection.

             Subtitle C--Ballistic Missile Defense Programs

SEC. 221. NATIONAL MISSILE DEFENSE PROGRAM.

    (a) Program Structure.--To preserve the option of achieving an 
initial operational capability in fiscal year 2003, the Secretary of 
Defense shall ensure that the National Missile Defense Program is 
structured and programmed for funding so as to support a test, in 
fiscal year 1999, of an integrated national missile defense system that 
is representative of the national missile defense system architecture 
that could achieve initial operational capability in fiscal year 2003.
    (b) Elements of NMD System.--The national missile defense system 
architecture specified in subsection (a) shall consist of the following 
elements:
            (1) An interceptor system that optimizes defensive coverage 
        of the continental United States, Alaska, and Hawaii against 
        limited ballistic missile attack (whether accidental, 
        unauthorized, or deliberate).
            (2) Ground-based radars.
            (3) Space-based sensors.
            (4) Battle management, command, control, and communications 
        (BM/C3).
    (c) Plan for NMD System Development and Deployment.--Not later than 
February 15, 1998, the Secretary of Defense shall submit to the 
congressional defense committees a plan for the development and 
deployment of a national missile defense system that could achieve 
initial operational capability in fiscal year 2003. The plan shall 
include the following matters:
            (1) A detailed description of the system architecture 
        selected for development.
            (2) A discussion of the justification for the selection of 
        that particular architecture.
            (3) The Secretary's estimate of the amounts of the 
        appropriations that would be necessary for research, 
        development, test, evaluation, and for procurement for each of 
        fiscal years 1999 through 2003 in order to achieve an initial 
        operational capability of the system architecture in fiscal 
        year 2003.
            (4) For each activity necessary for the development and 
        deployment of the national missile defense system architecture 
        selected by the Secretary that would at some point conflict 
        with the terms of the ABM Treaty, if any--
                    (A) a description of the activity;
                    (B) a description of the point at which the 
                activity would conflict with the terms of the ABM 
                Treaty;
                    (C) the legal analysis justifying the Secretary's 
                determination regarding the point at which the activity 
                would conflict with the terms of the ABM Treaty; and
                    (D) an estimate of the time at which such point 
                would be reached in order to achieve a test of an 
                integrated missile defense system in fiscal year 1999 
                and initial operational capability of such a system in 
                fiscal year 2003.
    (d) Funding for Fiscal Year 1998.--Of the funds authorized to be 
appropriated under section 201(4), $978,091,000 shall be available for 
the national missile defense program.
    (e) ABM Treaty Defined.--In this section, the term ``ABM Treaty'' 
means the Treaty Between the United States of America and the Union of 
Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile 
Systems, signed at Moscow on May 26, 1972, and includes the Protocol to 
that treaty, signed at Moscow on July 3, 1974.

SEC. 222. REVERSAL OF DECISION TO TRANSFER PROCUREMENT FUNDS FROM THE 
              BALLISTIC MISSILE DEFENSE ORGANIZATION.

    (a) Transfers Required.--The Secretary of Defense shall--
            (1) transfer to appropriations available to the Ballistic 
        Missile Defense Organization for procurement for fiscal year 
        1998 the amounts that were transferred to accounts of the Army, 
        Navy, Air Force, and Marine Corps pursuant to Program Budget 
        Decision 224C3, signed by the Under Secretary of Defense 
        (Comptroller) on December 23, 1996; and
            (2) ensure that, in the future-years defense program, the 
        procurement funding covered by that program budget decision is 
        programmed for appropriations accounts of the Ballistic Missile 
        Defense Organization rather than appropriations accounts of the 
        Armed Forces.
    (b) Relationship to Other Transfer Authority.--The transfer 
authority provided in subsection (a) is in addition to the transfer 
authority provided in section 1001.

                       Subtitle D--Other Matters

SEC. 231. MANUFACTURING TECHNOLOGY PROGRAM.

    Section 2525(c)(2) of title 10, United States Code, is amended to 
read as follows:
    ``(2) In order to promote increased dissemination and use of 
manufacturing technology throughout the national defense technology and 
industrial base, the Secretary shall seek, to the maximum extent 
practicable, the participation of manufacturers of manufacturing 
equipment in the projects under the program.''.

SEC. 232. USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS BY 
              COMMERCIAL ENTITIES.

    (a) Extension of Authority.--Subsection (g) of section 2681 of 
title 10, United States Code, is amended by striking out ``1998'' and 
inserting in lieu thereof ``2001''.
    (b) Additional Reporting Requirement.--Subsection (h) of such 
section is amended--
            (1) by striking out ``Report.--'' and inserting in lieu 
        thereof ``Reports.--(1)''; and
            (2) by adding at the end the following:
    ``(2) Not later than February 15, 1998, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
identifying existing and proposed procedures to ensure that the use of 
Major Range and Test Facility Installations by commercial entities does 
not compete with private sector test and evaluation services.''.
    (c) Repeal of Reporting Requirements When Executed.--Effective on 
October 1, 1998, subsection (h) of such section is repealed.

SEC. 233. ELIGIBILITY FOR THE DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
              COMPETITIVE RESEARCH.

    Section 257 of the National Defense Authorization Act for Fiscal 
Year 1995 (10 U.S.C. 2358 note) is amended by adding at the end the 
following:
    ``(f) State Defined.--In this section, the term `State' means a 
State of the United States, the District of Columbia, Puerto Rico, 
Guam, the Virgin Islands of the United States, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.''.

SEC. 234. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM 
              ORGANIZATIONS.

    (a) National Ocean Research Leadership Council.--Section 7902 of 
title 10, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking out paragraphs (11), (14), (15), 
                (16) and (17); and
                    (B) by redesignating paragraphs (12) and (13) as 
                paragraphs (11) and (12), respectively;
            (2) by striking out subsection (d); and
            (3) by redesignating subsections (e), (f), (g), (h), and 
        (i) as subsections (d), (e), (f), (g), and (h), respectively.
    (b) Ocean Research Advisory Panel.--(1) Section 7903(a) of such 
title is amended by striking out ``government, academia, and industry'' 
and inserting in lieu thereof ``State governments, academia, and ocean 
industries''.
    (2) Section 282(c) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2473) is amended by 
striking out ``January 1, 1997'' and inserting in lieu thereof 
``January 1, 1998''.
    (c) Conforming Amendments.--Section 282 of the National Defense 
Authorization Act for Fiscal Year 1997 is amended--
            (1) by striking out subsection (b); and
            (2) by redesignating subsections (c), (d), (e), and (f) as 
        subsections (b), (c), (d), and (e), respectively.
    (d) Effective Date.--The amendments made by subsection (a) and (b) 
shall be effective as of September 23, 1996, as if included in section 
282 of Public Law 104-201.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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, $17,194,284,000.
            (2) For the Navy, $21,681,330,000.
            (3) For the Marine Corps, $2,379,445,000.
            (4) For the Air Force, $18,861,685,000.
            (5) For Defense-wide activities, $10,280,838,000.
            (6) For the Army Reserve, $1,212,891,000.
            (7) For the Naval Reserve, $834,711,000.
            (8) For the Marine Corps Reserve, $110,366,000.
            (9) For the Air Force Reserve, $1,624,420,000.
            (10) For the Army National Guard, $2,288,932,000.
            (11) For the Air National Guard, $2,991,219,000.
            (12) For the Defense Inspector General, $136,580,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $6,952,000.
            (14) For Environmental Restoration, Army, $350,337,000.
            (15) For Environmental Restoration, Navy, $257,500,000.
            (16) For Environmental Restoration, Air Force, 
        $351,900,000.
            (17) For Environmental Restoration, Defense-Wide, 
        $25,900,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $188,300,000.
            (19) For Overseas Contingency Operations, $1,467,500,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $660,882,000.
            (21) For Medical Programs, Defense, $9,954,782,000.
            (22) For Former Soviet Union Threat Reduction programs, 
        $322,000,000.
            (23) For Overseas Humanitarian Demining and CINC Initiative 
        activities, $40,130,000.
            (24) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $10,000,000.

SEC. 302. WORKING-CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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 Fund, $33,400,000.
            (2) For the National Defense Sealift Fund, $516,126,000.
            (3) For the Military Commissary Fund, $938,552,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1998 
from the Armed Forces Retirement Home Trust Fund the sum of $79,977,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

    (a) Transfer Authority.--To the extent provided in appropriations 
Acts, not more than $150,000,000 is authorized to be transferred from 
the National Defense Stockpile Transaction Fund to operation and 
maintenance accounts for fiscal year 1998 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this 
section--
            (1) shall be merged with, and be available for the same 
        purposes and the same period as, the amounts in the accounts to 
        which transferred; and
            (2) may not be expended for an item that has been denied 
        authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the transfer 
authority provided in section 1001.

SEC. 305. FISHER HOUSE TRUST FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 
1998, out of funds in Fisher House Trust Funds not otherwise 
appropriated, for the operation and maintenance of Fisher houses 
described in section 2221(d) of title 10, United States Code, as 
follows:
            (1) The Fisher House Trust Fund, Department of the Army, 
        $150,000 for Fisher houses that are located in proximity to 
        medical treatment facilities of the Army.
            (2) The Fisher House Trust Fund, Department of the Navy, 
        $150,000 for Fisher houses that are located in proximity to 
        medical treatment facilities of the Navy.

                   Subtitle B--Depot-Level Activities

SEC. 311. PERCENTAGE LIMITATION ON PERFORMANCE OF DEPOT-LEVEL 
              MAINTENANCE OF MATERIEL.

    (a) Performance in Non-Government Facilities.--Subsection (a) of 
section 2466 of title 10, United States Code, is amended to read as 
follows:
    ``(a) Percentage Limitation.--(1) Except as provided in paragraph 
(2), not more than 50 percent of the funds made available in a fiscal 
year to a military department or a Defense Agency for depot-level 
maintenance and repair workload may be used to contract for the 
performance of such workload in facilities other than Government-owned, 
Government-operated facilities.
    ``(2) In the administration of paragraph (1) for fiscal years 
ending before October 1, 1998, the percentage specified in that 
paragraph shall be deemed to be 40 percent.''.
    (b) Treatment of Performance by Public-Private Partnership.--Such 
section is further amended by inserting after subsection (a), as 
amended by subsection (a), the following:
    ``(b) Treatment of Performance by Public-Private Partnership.--For 
the purposes of subsection (a), any performance of a depot-level 
maintenance and repair workload by a public-private partnership formed 
under section 2474(b) of this title shall be treated as performance of 
the workload in a Government-owned, Government-operated facility.''.

SEC. 312. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

    (a) Designation and Purpose.--(1) Chapter 146 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2474. Centers of Industrial and Technical Excellence: 
              designation; public-private partnerships
    ``(a) Designation.--(1) The Secretary of Defense shall designate 
each depot-level activity of the military departments and the Defense 
Agencies (other than facilities recommended for closure or major 
realignment under 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)) as a 
Center of Industrial and Technical Excellence in the recognized core 
competencies of the activity.
    ``(2) The Secretary shall establish a policy to encourage the 
Secretary of each military department and the head of each Defense 
Agency to reengineer industrial processes and adopt best-business 
practices at their depot-level activities in connection with their core 
competency requirements, so as to serve as recognized leaders in their 
core competencies throughout the Department of Defense and in the 
national technology and industrial base (as defined in section 2491(1) 
of this title).
    ``(b) Public-Private Partnerships.--The Secretary of Defense shall 
enable Centers of Industrial and Technical Excellence to form public-
private partnerships for the performance of depot-level maintenance and 
repair at such centers and shall encourage the use of such partnerships 
to maximize the utilization of the capacity at such Centers.
    ``(c) Additional Work.--The policy required under subsection (a) 
shall include measures to enable a private sector entity that enters 
into a partnership arrangement under subsection (b) or leases excess 
equipment and facilities at a Center of Industrial and Technical 
Excellence pursuant to section 2471 of this title to perform additional 
work at the Center, subject to the limitations outlined in subsection 
(b) of such section, outside of the types of work normally assigned to 
the Center.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2474. Centers of Industrial and Technical Excellence: designation; 
                            public-private partnerships.''.
    (b) Reporting Requirement.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report describing the 
policies established by the Secretary pursuant to section 2474 of title 
10, United States Code (as added by subsection (a)), to carry out that 
section.

SEC. 313. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT EMPLOYEES 
              BY CONSTRAINTS ON PERSONNEL LEVELS.

    Section 2472(a) of title 10, United States Code, is amended by 
striking out the first sentence and inserting in lieu thereof the 
following: ``The civilian employees of the Department of Defense, 
including the civilian employees of the military departments and the 
Defense Agencies, who perform, or are involved in the performance of, 
depot-level maintenance and repair workloads may not be managed on the 
basis of any constraint or limitation in terms of man years, end 
strength, full-time equivalent positions, or maximum number of 
employees.''.

SEC. 314. ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.

    Subsection (e) of section 2466 of title 10, United States Code, is 
amended to read as follows:
    ``(e) Report.--(1) Not later than February 1 of each year, the 
Secretary of Defense shall submit to Congress a report identifying, for 
each military department and Defense Agency--
            ``(A) the percentage of the funds referred to in subsection 
        (a) that were used during the preceding fiscal year for 
        performance of depot-level maintenance and repair workloads in 
        Government-owned, Government-operated facilities; and
            ``(B) the percentage of the funds referred to in subsection 
        (a) that were used during the preceding fiscal year to contract 
        for the performance of depot-level maintenance and repair 
        workloads in facilities that are not owned and operated by the 
        Federal Government.
    ``(2) Not later than 90 days after the date on which the Secretary 
submits the annual report under paragraph (1), the Comptroller General 
shall submit to the Committees on Armed Services and on Appropriations 
of the Senate and the Committees on National Security and on 
Appropriations of the House of Representatives the Comptroller's views 
on whether the Department of Defense has complied with the requirements 
of subsection (a) for the fiscal year covered by the report.''.

SEC. 315. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG 
              DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR 
              FACILITIES.

    (a) Report.--Not later than May 31, 1998, the Secretary of Defense 
shall submit to Congress a report on the allocation among facilities of 
the Department of Defense and facilities in the private sector of the 
logistics activities that are necessary to maintain and repair the 
weapon systems and other military equipment identified by the 
Secretary, in consultation with the Joint Chiefs of Staff, as being 
necessary to enable the Armed Forces to conduct a strategic or major 
theater war.
    (b) Elements.--The report under subsection (a) shall set forth the 
following:
            (1) The systems or equipment identified under subsection 
        (a) that must be maintained and repaired in Government-owned, 
        Government-operated facilities, using personnel and equipment 
        of the Department, as a result of the Secretary's determination 
        that--
                    (A) the work involves unique or valuable workforce 
                skills that should be maintained in the public sector 
                in the national interest;
                    (B) the base of private sector sources having the 
                capability to perform the workloads includes industry 
                sectors that are vulnerable to work stoppages;
                    (C) the private sector sources having the 
                capability to perform the workloads have insufficient 
                workforce levels or skills to perform the depot-level 
                maintenance and repair workloads--
                            (i) in the quantity necessary, or as 
                        rapidly as the Secretary considers necessary, 
                        to enable the armed forces to fulfill the 
                        national military strategy; or
                            (ii) without a significant disruption or 
                        delay in the maintenance and repair of 
                        equipment;
                    (D) the need for performance of workloads is too 
                infrequent, cyclical, or variable to sustain a reliable 
                base of private sector sources having the workforce 
                levels or skills to perform the workloads;
                    (E) the market conditions or workloads are 
                insufficient to ensure that the price of private sector 
                performance of the workloads can be controlled through 
                competition or other means;
                    (F) private sector sources are not adequately 
                responsive to the requirements of the Department for 
                rapid, cost-effective, and flexible response to surge 
                requirements or other contingency situations, including 
                changes in the mix or priority of previously scheduled 
                workloads and reassignment of employees to different 
                workloads without the requirement for additional 
                contractual negotiations;
                    (G) private sector sources are less willing to 
                assume responsibility for performing the workload as a 
                result of the possibility of direct military or 
                terrorist attack; or
                    (H) private sector sources cannot maintain 
                continuity of workforce expertise as a result of high 
                rates of employee turnover.
            (2) The systems or equipment identified under subsection 
        (a) that must be maintained and repaired in Government-owned 
        facilities, whether Government operated or contractor-operated, 
        as a result of the Secretary's determination that--
                    (A) the work involves facilities, technologies, or 
                equipment that are unique and sufficiently valuable 
                that the facilities, technologies, or equipment must be 
                maintained in the public sector in the national 
                interest;
                    (B) the private sector sources having the 
                capability to perform the workloads have insufficient 
                facilities, technology, or equipment to perform the 
                depot-level maintenance and repair workloads--
                            (i) in the quantity necessary, or as 
                        rapidly as the Secretary considers necessary, 
                        to enable the armed forces to fulfill the 
                        national military strategy; or
                            (ii) without a significant disruption or 
                        delay in the maintenance and repair of 
                        equipment; or
                    (C) the need for performance of workloads is too 
                infrequent, cyclical, or variable to sustain a reliable 
                base of private sector sources having the facilities, 
                technology, or equipment to perform the workloads.
            (3) The systems or equipment identified under subsection 
        (a) that may be maintained and repaired in private sector 
        facilities.
            (4) The approximate percentage of the total maintenance and 
        repair workload of the Department of Defense necessary for the 
        systems and equipment identified under subsection (a) that 
        would be performed at Department of Defense facilities, and at 
        private sector facilities, as a result of the determinations 
        made for purposes of paragraphs (1), (2), and (3).

SEC. 316. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP REPAIR 
              AND MAINTENANCE.

    (a) Findings.--Congress makes the following findings:
            (1) In order to reduce the time that the crew of a naval 
        vessel is away from the homeport of the vessel, the Navy seeks 
        to perform ship repair and maintenance of the vessel at the 
        homeport of the vessel whenever it takes six months or less to 
        accomplish the work involved.
            (2) At the same time, the Navy seeks to distribute ship 
        repair and maintenance work among the Navy shipyards (known as 
        to ``level load'') in order to more fully utilize personnel 
        resources.
            (3) During periods when a Navy shipyard is not utilized to 
        its capacity, the Navy sometimes sends workers at the shipyard, 
        on a temporary duty basis, to perform ship repairs and 
        maintenance at a homeport not having a Navy shipyard.
            (4) This practice is a more efficient use of civilian 
        employees who might otherwise not be fully employed on work 
        assigned to Navy shipyards.
    (b) GAO Review and Report.--(1) The Comptroller General of the 
United States shall review the Navy's practice of using temporary duty 
assignments of personnel to perform ship maintenance and repair work at 
homeports not having Navy shipyards. The review shall include the 
following:
            (A) An assessment of the rationale, conditions, and factors 
        supporting the Navy's practice.
            (B) A determination of whether the practice is cost-
        effective.
            (C) The factors affecting future requirements for, and the 
        adherence to, the practice, together with an assessment of the 
        factors.
    (2) Not later than May 1, 1998, the Comptroller General shall 
submit a report on the review to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives.

SEC. 317. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOT-LEVEL 
              MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING 
              REQUIREMENT.

    Section 311 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 247; 10 U.S.C. 2464 note) is 
amended by striking out subsections (f) and (g).

SEC. 318. EXTENSION OF AUTHORITY FOR NAVAL SHIPYARDS AND AVIATION 
              DEPOTS TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND 
              SERVICES.

    Section 1425(e) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended by 
striking out ``September 30, 1997'' and inserting in lieu thereof 
``September 30, 1998''.

                  Subtitle C--Environmental Provisions

SEC. 331. CLARIFICATION OF AUTHORITY RELATING TO STORAGE AND DISPOSAL 
              OF NONDEFENSE TOXIC AND HAZARDOUS MATERIALS ON DEPARTMENT 
              OF DEFENSE PROPERTY.

    (a) Materials of Members and Dependents.--Subsection (a)(1) of 
section 2692 of title 10, United States Code, is amended by inserting 
``or by a member of the armed forces (or a dependent of a member) 
living on the installation'' before the period at the end.
    (b) Storage of Materials Connected with Compatible Use.--Subsection 
(b)(8) of such section is amended--
            (1) by striking out ``by a private person'';
            (2) by striking out ``by that private person of an 
        industrial-type'' and inserting in lieu thereof ``of a''; and
            (3) by striking out ``; and'' and inserting in lieu thereof 
        ``, including a space launch facility located on a Department 
        of Defense installation or other land controlled by the United 
        States and a Department of Defense facility for testing 
        materiel or training personnel;''.
    (c) Treatment and Disposal of Materials Connected with Compatible 
Use.--Subsection (b)(9) of such section is amended--
            (1) by striking out ``by a private person'';
            (2) by striking out ``commercial use by that person of an 
        industrial-type'' and inserting in lieu thereof ``use of a'';
            (3) by striking out ``with that person'' and inserting in 
        lieu thereof ``with the prospective user''; and
            (4) in subparagraph (B), by striking out ``for that 
        person's'' and inserting in lieu thereof ``for the prospective 
        user's''.
    (d) Additional Authority.--Subsection (b) of such section is 
further amended--
            (1) by striking out the period at the end of paragraph (9) 
        and inserting in lieu thereof ``; and''; and
            (2) by adding at the end the following:
            ``(10) the storage of materials that will be used in 
        connection with an activity of the Department of Defense or in 
        connection with a service performed for the benefit of the 
        Department of Defense or the disposal of materials that have 
        been used in such connection.''.

SEC. 332. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE TO FINES 
              AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.

    (a) Annual Reports.--Section 2706(b)(2) of title 10, United States 
Code, is amended by adding at the end the following:
                    ``(H) A statement of the fines and penalties 
                imposed or assessed against the Department of Defense 
                under Federal, State, or local environmental law during 
                the fiscal year preceding the fiscal year in which the 
                report is submitted, which statement sets forth--
                            ``(i) each Federal environmental statute 
                        under which a fine or penalty was imposed or 
                        assessed during the fiscal year;
                            ``(ii) with respect to each such statute--
                                    ``(I) the aggregate amount of fines 
                                and penalties imposed or assessed 
                                during the fiscal year;
                                    ``(II) the aggregate amount of 
                                fines and penalties paid during the 
                                fiscal year;
                                    ``(III) the total amount required 
                                to meet commitments to environmental 
                                enforcement authorities under 
                                agreements entered into by the 
                                Department of Defense during the fiscal 
                                year for supplemental environmental 
                                projects agreed to in lieu of the 
                                payment of fines or penalties; and
                                    ``(IV) the number of fines and 
                                penalties imposed or assessed during 
                                the fiscal year that were--
                                            ``(aa) $10,000 or less;
                                            ``(bb) more than $10,000, 
                                        but not more than $50,000;
                                            ``(cc) more than $50,000, 
                                        but not more than $100,000; and
                                            ``(dd) more than $100,000; 
                                        and
                            ``(iii) with respect to each fine or 
                        penalty set forth under clause (ii)(IV)(dd)--
                                    ``(I) the installation or facility 
                                to which the fine or penalty applies; 
                                and
                                    ``(II) the agency that imposed or 
                                assessed the fine or penalty.''.
    (b) Report in Fiscal Year 1998.--The statement submitted by the 
Secretary of Defense under subparagraph (H) of section 2706(b)(2) of 
title 10, United States Code, as added by subsection (a), in 1998 
shall, to the maximum extent practicable, include the information 
required by that subparagraph for each of fiscal years 1994 through 
1997.

SEC. 333. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE DEPARTMENT 
              OF DEFENSE OVERSEAS.

    Section 2706 of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Report on Environmental Activities Overseas.--(1) The 
Secretary of Defense shall submit to Congress each year, not later than 
30 days after the date on which the President submits to Congress the 
budget for a fiscal year, a report on the environmental activities of 
the Department of Defense overseas.
    ``(2) Each such report shall include the following:
            ``(A) A statement of the funding levels and full-time 
        personnel required for the Department of Defense to comply 
        during such fiscal year with each requirement under a treaty, 
        law, contract, or other agreement for environmental restoration 
        or compliance activities.
            ``(B) A statement of the funds to be expended by the 
        Department of Defense during such fiscal year in carrying out 
        other activities relating to the environment overseas, 
        including conferences, meetings, and studies for pilot programs 
        and travel related to such activities.''.

SEC. 334. MEMBERSHIP TERMS FOR STRATEGIC ENVIRONMENTAL RESEARCH AND 
              DEVELOPMENT PROGRAM SCIENTIFIC ADVISORY BOARD.

    (a) Terms.--Section 2904(b)(4) of title 10, United States Code, is 
amended by striking out ``three'' and inserting in lieu thereof ``not 
less than two or more than four''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to appointments to the Strategic Environmental Research and 
Development Program Scientific Advisory Board made before, on, or after 
the date of enactment of this Act.

SEC. 335. ADDITIONAL INFORMATION ON AGREEMENTS FOR AGENCY SERVICES IN 
              SUPPORT OF ENVIRONMENTAL TECHNOLOGY CERTIFICATION.

    (a) Additional Information.--Subsection (d) of section 327 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 110 Stat. 2483; 10 U.S.C. 2702 note) is amended by adding at 
the end the following:
            ``(5) A statement of the funding that will be required to 
        meet commitments made to State and local governments under 
        agreements entered into during the fiscal year preceding the 
        fiscal year in which the report is submitted.
            ``(6) A description of any cost-sharing arrangement under 
        any cooperative agreement entered into under this section.''.
    (b) Guidelines for Reimbursement and Cost-Sharing.--Not later than 
90 days after the date of enactment of this Act, the Secretary of 
Defense shall submit to Congress a report setting forth the guidelines 
established by the Secretary for reimbursement of State and local 
governments, and for cost-sharing between the Department of Defense, 
such governments, and vendors, under agreements entered into under such 
section 327.

SEC. 336. RISK ASSESSMENTS UNDER THE DEFENSE ENVIRONMENTAL RESTORATION 
              PROGRAM.

    (a) In General.--In carrying out risk assessments as part of the 
evaluation of facilities of the Department of Defense for purposes of 
allocating funds and establishing priorities for environmental 
restoration projects at such facilities under the Defense Environmental 
Restoration Program, the Secretary of Defense shall--
            (1) utilize a risk assessment method that meets the 
        requirements in subsection (b); and
            (2) ensure the uniform and consistent utilization of the 
        risk assessment method in all evaluations of facilities under 
        the program.
    (b) Risk Assessment Method.--The risk assessment method utilized 
under subsection (a) shall--
            (1) take into account as a separate factor of risk--
                    (A) the extent to which the contamination level of 
                a particular contaminant exceeds the permissible 
                contamination level for the contaminant;
                    (B) the existence and extent of any population 
                (including human populations and natural populations) 
                potentially affected by the contaminant; and
                    (C) the existence and nature of any mechanism that 
                would cause the population to be affected by the 
                contaminant; and
            (2) provide appropriately for the significance of any such 
        factor in the final determination of risk.
    (c) Defense Environmental Restoration Program Defined.--In this 
section, the term ``Defense Environmental Restoration Program'' means 
the program of environmental restoration carried out under chapter 160 
of title 10, United States Code.

SEC. 337. RECOVERY AND SHARING OF COSTS OF ENVIRONMENTAL RESTORATION AT 
              DEPARTMENT OF DEFENSE SITES.

    (a) Guidelines.--
            (1) In general.--The Secretary of Defense shall prescribe 
        in regulations guidelines concerning the cost-recovery and 
        cost-sharing activities of the military departments and defense 
        agencies.
            (2) Covered matters.--The guidelines prescribed under 
        paragraph (1) shall--
                    (A) establish uniform requirements relating to 
                cost-recovery and cost-sharing activities for the 
                military departments and defense agencies;
                    (B) require the Secretaries of the military 
                departments and the heads of the defense agencies to 
                obtain all appropriate data regarding activities of 
                contractors of the Department or other private parties 
                responsible for environmental contamination at 
                Department sites that is relevant for purposes of cost-
                recovery and cost-sharing activities;
                    (C) require the Secretaries of the military 
                departments and the heads of the defense agencies to 
                use consistent methods in estimating the costs of 
                environmental restoration at sites under the 
jurisdiction of such departments and agencies for purposes of reports 
to Congress on such costs;
                    (D) require the Secretaries of the military 
                departments to reduce the amounts requested for 
                environmental restoration activities of such 
                departments for a fiscal year by the amounts 
                anticipated to be recovered in the preceding fiscal 
                year as a result of cost-recovery and cost-sharing 
                activities; and
                    (E) resolve any unresolved issues regarding the 
                crediting of amounts recovered as a result of such 
                activities under section 2703(d) of title 10, United 
                States Code.
    (b) Implementation of Guidelines.--The Secretary shall take 
appropriate actions to ensure the implementation of the guidelines 
prescribed under subsection (a), including appropriate requirements 
to--
            (1) identify contractors of the Department and other 
        private parties responsible for environmental contamination at 
        Department sites;
            (2) review the activities of contractors of the Department 
        and other private parties in order to identify negligence or 
        other misconduct in such activities that would preclude 
        Department indemnification for the costs of environmental 
        restoration relating to such contamination or justify the 
        recovery or sharing of costs associated with such restoration;
            (3) obtain data as provided for under subsection (a)(2)(B); 
        and
            (4) pursue cost-recovery and cost-sharing activities where 
        appropriate.
    (c) Definition.--In this section, the term ``cost-recovery and-cost 
sharing activities'' means activities concerning--
            (1) the recovery of the costs of environmental restoration 
        at Department sites from contractors of the Department and 
        other private parties that contribute to environmental 
        contamination at such sites; and
            (2) the sharing of the costs of such restoration with such 
        contractors and parties.

SEC. 338. PILOT PROGRAM FOR THE SALE OF AIR POLLUTION EMISSION 
              REDUCTION INCENTIVES.

    (a) Authority.--(1) The Secretary of Defense may, in consultation 
with the Administrator of General Services, carry out a pilot program 
to assess the feasibility and advisability of the sale of economic 
incentives for the reduction of emission of air pollutants attributable 
to a facility of a military department.
    (2) The Secretary may carry out the pilot program during the period 
beginning on October 1, 1997, and ending on September 30, 1999.
    (b) Incentives Available for Sale.--(1) Under the pilot program, 
the Secretary may sell economic incentives for the reduction of 
emission of air pollutants attributable to a facility of a military 
department only if such incentives are not otherwise required for the 
activities or operations of the military department.
    (2) The Secretary may not, under the pilot program, sell economic 
incentives attributable to the closure or realignment of a military 
installation under a base closure law.
    (3) If the Secretary determines that additional sales of economic 
incentives are likely to result in amounts available for allocation 
under subsection (c)(2) in a fiscal year in excess of the limitation 
set forth in subparagraph (B) of that subsection, the Secretary shall 
not carry out such additional sales in that fiscal year.
    (c) Use of Proceeds.--(1) The proceeds of sale of economic 
incentives attributable to a facility of a military department shall be 
credited to the funds available to the facility for the costs of 
identifying, quantifying, or valuing economic incentives for the 
reduction of emission of air pollutants. The amount credited shall be 
equal to the cost incurred in identifying, quantifying, or valuing the 
economic incentives sold.
    (2)(A)(i) If after crediting under paragraph (1) a balance remains, 
the amount of such balance shall be available to the Department of 
Defense for allocation by the Secretary to the military departments for 
programs, projects, and activities necessary for compliance with 
Federal environmental laws, including the purchase of economic 
incentives for the reduction of emission of air pollutants.
    (ii) To the extent practicable, amounts allocated to the military 
departments under this subparagraph shall be made available to the 
facilities that generated the economic incentives providing the basis 
for the amounts.
    (B) The total amount allocated under this paragraph in a fiscal 
year from sales of economic incentives may not equal or exceed 
$500,000.
    (3) If after crediting under paragraph (1) a balance remains in 
excess of an amount equal to the limitation set forth in paragraph 
(2)(B), the amount of the excess shall be covered over into the 
Treasury as miscellaneous receipts.
    (4) Funds credited under paragraph (1) or allocated under paragraph 
(2) shall be merged with the funds to which credited or allocated, as 
the case may be, and shall be available for the same purposes and for 
the same period as the funds with which merged.
    (d) Definitions.--In this section:
            (1) The term ``base closure law'' means the following:
                    (A) Section 2687 of title 10, United States Code.
                    (B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).
                    (C) 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).
            (2) The term ``economic incentives for the reduction of 
        emission of air pollutants'' means any transferable economic 
        incentives (including marketable permits and emission rights) 
        necessary or appropriate to meet air quality requirements under 
        the Clean Air Act (42 U.S.C. 7401 et seq.).

SEC. 339. TAGGING SYSTEM FOR IDENTIFICATION OF HYDROCARBON FUELS USED 
              BY THE DEPARTMENT OF DEFENSE.

    (a) Authority To Conduct Pilot Program.--The Secretary of Defense 
may conduct a pilot program using existing technology to determine--
            (1) the feasibility of tagging hydrocarbon fuels used by 
        the Department of Defense for the purposes of analyzing and 
        identifying such fuels;
            (2) the deterrent effect of such tagging on the theft and 
        misuse of fuels purchased by the Department; and
            (3) the extent to which such tagging assists in determining 
        the source of surface and underground pollution in locations 
        having separate fuel storage facilities of the Department and 
        of civilian companies.
    (b) System Elements.--The tagging system under the pilot program 
shall have the following characteristics:
            (1) The tagging system does not harm the environment.
            (2) Each chemical used in the tagging system is--
                    (A) approved for use under the Toxic Substances 
                Control Act (15 U.S.C. 2601 et seq.); and
                    (B) substantially similar to the fuel to which 
                added, as determined in accordance with criteria 
                established by the Environmental Protection Agency for 
                the introduction of additives into hydrocarbon fuels.
            (3) The tagging system permits a determination if a tag is 
        present and a determination if the concentration of a tag has 
        changed in order to facilitate identification of tagged fuels 
        and detection of dilution of tagged fuels.
            (4) The tagging system does not impair or degrade the 
        suitability of tagged fuels for their intended use.
    (c) Report.--Not later than 30 days after the completion of the 
pilot program, the Secretary shall submit to Congress a report setting 
forth the results of the pilot program and including any 
recommendations for legislation relating to the tagging of hydrocarbon 
fuels by the Department that the Secretary considers appropriate.
    (d) Funding.--Of the amounts authorized to be appropriated under 
section 301(5) for operation and maintenance for defense-wide 
activities, not more than $5,000,000 shall be available for the pilot 
program.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 351. FUNDING SOURCES FOR CONSTRUCTION AND IMPROVEMENT OF 
              COMMISSARY STORE FACILITIES.

    (a) Additional Funding Sources.--Section 2685 of title 10, United 
States Code, is amended--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Funds for Construction and Improvements.--Revenues received 
by the Department of Defense from the following sources or activities 
of commissary store facilities shall be available for the purposes set 
forth in subsections (c), (d), and (e):
            ``(1) Adjustments or surcharges authorized by subsection 
        (a).
            ``(2) Sale of recyclable materials.
            ``(3) Sale of excess property.
            ``(4) License fees.
            ``(5) Royalties.
            ``(6) Fees paid by sources of products in order to obtain 
        favorable display of the products for resale, known as business 
        related management fees.
            ``(7) Products offered for sale in commissaries under 
        consignment with exchanges, as designated by the Secretary of 
        Defense.''.

SEC. 352. INTEGRATION OF MILITARY EXCHANGE SERVICES.

    (a) Integration Required.--The Secretaries of the military 
departments shall integrate the military exchange services, including 
the managing organizations of the military exchange services, not later 
than September 30, 2000.
    (b) Submission of Plan to Congress.--Not later than 180 days after 
the date of the enactment of this Act, the Secretaries of the military 
departments shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives the plan for achieving the integration required by 
subsection (a).

                       Subtitle E--Other Matters

SEC. 361. ADVANCE BILLINGS FOR WORKING-CAPITAL FUNDS.

    (a) Restriction.--Section 2208 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (k) as subsection (l); and
            (2) by inserting after subsection (j) the following new 
        subsection (k):
    ``(k)(1) An advance billing of a customer for a working-capital 
fund is prohibited except as provided in paragraph (2).
    ``(2) An advance billing of a customer for a working-capital fund 
is authorized if--
            ``(A) the Secretary of Defense has submitted to the 
        Committees on Armed Services and on Appropriations of the 
        Senate and the Committees on National Security and on 
        Appropriations of the House of Representatives a notification 
        of the advance billing; and
            ``(B) in the case of an advance billing in an amount that 
        exceeds $50,000,000, thirty days have elapsed since the date of 
        the notification.
    ``(3) A notification of an advance billing of a customer for a 
working-capital fund that is submitted under paragraph (2) shall 
include the following:
            ``(A) The reasons for the advance billing.
            ``(B) An analysis of the effects of the advance billing on 
        military readiness.
            ``(C) An analysis of the effects of the advance billing on 
        the customer.
    ``(4) The Secretary of Defense may waive the applicability of this 
subsection--
            ``(A) during a period war or national emergency; or
            ``(B) to