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Committee Reports

108th Congress (2003-2004)

House Report 108-076

House Report 108-076 1 of 1

This Report: To Accompany H.R.1559     Printer Friendly: HTML  |  PDF




{link: 'http://www.congress.gov:80/cgi-bin/cpquery?',title: 'THOMAS - Committee Report - House Report 108-076' }

MAKING EMERGENCY WARTIME SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR 2003, AND FOR OTHER PURPOSES

86-454

108TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

1st Session

108-76
MAKING EMERGENCY WARTIME SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR 2003, AND FOR OTHER PURPOSES

April 12, 2003- Ordered to be printed
Mr. YOUNG of Florida, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany H.R. 1559]

The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 1559), `making emergency wartime supplemental appropriations for the fiscal year 2003, and for other purposes', having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows:

In lieu of the matter proposed to be inserted by the Senate amendment, insert the following: That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2003, and for other purposes, namely:

TITLE I--WAR-RELATED APPROPRIATIONS

CHAPTER 1

DEPARTMENT OF AGRICULTURE

AGRICULTURAL RESEARCH SERVICE

BUILDINGS AND FACILITIES

PUBLIC LAW 480 TITLE II GRANTS

(INCLUDING TRANSFER OF FUNDS)

CHAPTER 2

DEPARTMENT OF JUSTICE

GENERAL ADMINISTRATION

SALARIES AND EXPENSES

COUNTERTERRORISM FUND

DETENTION TRUSTEE

OFFICE OF INSPECTOR GENERAL

LEGAL ACTIVITIES

SALARIES AND EXPENSES, UNITED STATES MARSHALS SERVICE

FEDERAL BUREAU OF INVESTIGATION

SALARIES AND EXPENSES

OFFICE OF JUSTICE PROGRAMS

COMMUNITY ORIENTED POLICING SERVICES

THE JUDICIARY

SUPREME COURT OF THE UNITED STATES

SALARIES AND EXPENSES

UNITED STATES COURT OF APPEALS FOR THE FEDERAL CIRCUIT

SALARIES AND EXPENSES

UNITED STATES COURT OF INTERNATIONAL TRADE

SALARIES AND EXPENSES

DEPARTMENT OF STATE AND RELATED AGENCY

DEPARTMENT OF STATE

ADMINISTRATION OF FOREIGN AFFAIRS

DIPLOMATIC AND CONSULAR PROGRAMS

EMBASSY SECURITY, CONSTRUCTION, AND MAINTENANCE

EMERGENCIES IN THE DIPLOMATIC AND CONSULAR SERVICE

RELATED AGENCY

BROADCASTING BOARD OF GOVERNORS

INTERNATIONAL BROADCASTING OPERATIONS

GENERAL PROVISION, THIS CHAPTER

CHAPTER 3

DEPARTMENT OF DEFENSE--MILITARY

MILITARY PERSONNEL

MILITARY PERSONNEL, ARMY

MILITARY PERSONNEL, NAVY

MILITARY PERSONNEL, MARINE CORPS

MILITARY PERSONNEL, AIR FORCE

RESERVE PERSONNEL, ARMY

NATIONAL GUARD PERSONNEL, ARMY

OPERATION AND MAINTENANCE

OPERATION AND MAINTENANCE, ARMY

OPERATION AND MAINTENANCE, NAVY

OPERATION AND MAINTENANCE, MARINE CORPS

OPERATION AND MAINTENANCE, AIR FORCE

OPERATION AND MAINTENANCE, DEFENSE-WIDE

OPERATION AND MAINTENANCE, ARMY RESERVE

OPERATION AND MAINTENANCE, NAVY RESERVE

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

IRAQ FREEDOM FUND

(TRANSFER OF FUNDS)

NATURAL RESOURCES RISK REMEDIATION FUND

(TRANSFER OF FUNDS)

PROCUREMENT

AIRCRAFT PROCUREMENT, ARMY

MISSILE PROCUREMENT, ARMY

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

PROCUREMENT OF AMMUNITION, ARMY

OTHER PROCUREMENT, ARMY

OTHER PROCUREMENT, AIR FORCE

PROCUREMENT, DEFENSE-WIDE

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

OTHER DEPARTMENT OF DEFENSE PROGRAMS

DEFENSE HEALTH PROGRAM

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

GENERAL PROVISIONS, THIS CHAPTER

(TRANSFER OF FUNDS)

(INCLUDING TRANSFER OF FUNDS)

(INCLUDING TRANSFER OF FUNDS)

(TRANSFER OF FUNDS)

(TRANSFER OF FUNDS)

(INCLUDING TRANSFER OF FUNDS)

(RESCISSION OF FUNDS)

CHAPTER 4

DEPARTMENT OF DEFENSE--CIVIL

DEPARTMENT OF THE ARMY

CORPS OF ENGINEERS--CIVIL

OPERATION AND MAIN~TENANCE, GENERAL

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

WATER AND RELATED RESOURCES

DEPARTMENT OF ENERGY

ENERGY PROGRAMS

SCIENCE

ATOMIC ENERGY DEFENSE ACTIVITIES

NATIONAL NUCLEAR SECURITY ADMINISTRATION

WEAPONS ACTIVITIES

DEFENSE NUCLEAR NONPROLIFERATION

ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT

OTHER DEFENSE ACTIVITIES

CHAPTER 5

BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

CHILD SURVIVAL AND HEALTH PROGRAMS FUND

INTERNATIONAL DISASTER ASSISTANCE

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

OTHER BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

IRAQ RELIEF AND RECONSTRUCTION FUND

(INCLUDING TRANSFERS OF FUNDS)

ECONOMIC SUPPORT FUND

LOAN GUARANTEES TO ISRAEL

DEPARTMENT OF STATE

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

ANDEAN COUNTERDRUG INITIATIVE

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND

NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED PROGRAMS

MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

FOREIGN MILITARY FINANCING PROGRAM

PEACEKEEPING OPERATIONS

GENERAL PROVISIONS, THIS CHAPTER

SEC. 1506. REPORTS ON UNITED STATES STRATEGY FOR RELIEF AND RECONSTRUCTION IN IRAQ.

CHAPTER 6

DEPARTMENT OF HOMELAND SECURITY

DEPARTMENTAL MANAGEMENT

COUNTERTERRORISM FUND

CITIZENSHIP AND IMMIGRATION SERVICES

OPERATING EXPENSES

UNITED STATES SECRET SERVICE

OPERATING EXPENSES

BORDER AND TRANSPORTATION SECURITY

CUSTOMS AND BORDER PROTECTION

IMMIGRATION AND CUSTOMS ENFORCEMENT

TRANSPORTATION SECURITY ADMINISTRATION

FEDERAL LAW ENFORCEMENT TRAINING CENTER OPERATING EXPENSES

OFFICE FOR DOMESTIC PREPAREDNESS

UNITED STATES COAST GUARD

OPERATING EXPENSES

EMERGENCY PREPAREDNESS AND RESPONSE

OPERATING EXPENSES

EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

GENERAL PROVISIONS, THIS CHAPTER

CHAPTER 7

DEPARTMENT OF HEALTH AND HUMAN SERVICES

CENTERS FOR DISEASE CONTROL AND PREVENTION

DISEASE CONTROL, RESEARCH, AND TRAINING

OFFICE OF THE SECRETARY

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

GENERAL PROVISION

REPATRIATION

CHAPTER 8

LEGISLATIVE BRANCH

HOUSE OF REPRESENTATIVES

SALARIES AND EXPENSES

COMMITTEE EMPLOYEES

STANDING COMMITTEES, SPECIAL AND SELECT

CAPITOL POLICE

GENERAL EXPENSES

OFFICE OF COMPLIANCE

SALARIES AND EXPENSES

ARCHITECT OF THE CAPITOL

CAPITOL BUILDING

CAPITOL POWER PLANT

CAPITOL POLICE BUILDINGS AND GROUNDS

LIBRARY OF CONGRESS

SALARIES AND EXPENSES

CONGRESSIONAL RESEARCH SERVICE

SALARIES AND EXPENSES

GENERAL ACCOUNTING OFFICE

SALARIES AND EXPENSES

GENERAL PROVISONS, THIS CHAPTER

CHAPTER 9

DEPARTMENT OF DEFENSE

MILITARY CONSTRUCTION

MILITARY CONSTRUCTION, NAVY

MILITARY CONSTRUCTION, AIR FORCE

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

GENERAL PROVISIONS, THIS CHAPTER

CHAPTER 10

DEPARTMENT OF TRANSPORTATION

MARITIME ADMINISTRATION

MARITIME GUARANTEED LOAN (TITLE XI) PROGRAM ACCOUNT

TITLE II--MISCELLANEOUS AND TECHNICAL APPROPRIATIONS

CHAPTER 1

SUBCOMMITTEE ON AGRICULTURE, RURAL DEVELOPMENT, AND RELATED AGENCIES

GENERAL PROVISIONS

CHAPTER 2

DEPARTMENT OF COMMERCE AND RELATED AGENCIES

RELATED AGENCIES

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

EUROPEAN COMMUNITIES MUSIC LICENSING DISPUTE

DEPARTMENT OF COMMERCE

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

PROCUREMENT, ACQUISITION AND CONSTRUCTION

RELATED AGENCIES

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

SALARIES AND EXPENSES

NATIONAL COMMISSION ON TERRORIST ATTACKS UPON THE UNITED STATES

SALARIES AND EXPENSES

GENERAL PROVISION, THIS CHAPTER

CHAPTER 3

SUBCOMMITTEE ON DISTRICT OF COLUMBIA

DISTRICT OF COLUMBIA FUNDS

OPERATING EXPENSES

DIVISION OF EXPENSES

GOVERNMENTAL DIRECTION AND SUPPORT

(INCLUDING RESCISSIONS)

ECONOMIC DEVELOPMENT AND REGULATION

(INCLUDING RESCISSION)

PUBLIC SAFETY AND JUSTICE

PUBLIC EDUCATION SYSTEM

(INCLUDING RESCISSIONS)

HUMAN SUPPORT SERVICES

(INCLUDING RESCISSION)

PUBLIC WORKS

(INCLUDING RESCISSION)

REPAYMENT OF LOANS AND INTEREST

(INCLUDING RESCISSION)

WILSON BUILDING

(INCLUDING RESCISSION)

WORKFORCE INVESTMENTS

(INCLUDING RESCISSION)

NON-DEPARTMENTAL AGENCY

(INCLUDING RESCISSION)

GENERAL PROVISIONS, THIS CHAPTER

CHAPTER 4

SUBCOMMITTEE ON INTERIOR AND RELATED AGENCIES

DEPARTMENT OF THE INTERIOR

UNITED STATES FISH AND WILDLIFE SERVICE

STATE AND TRIBAL WILDLIFE GRANTS

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

BUREAU OF INDIAN AFFAIRS

CONSTRUCTION

GENERAL PROVISION, THIS CHAPTER

CHAPTER 5

SUBCOMMITTEE ON LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES

DEPARTMENT OF HEALTH AND HUMAN SERVICES

HEALTH RESOURCES AND SERVICES ADMINISTRATION

HEALTH RESOURCES AND SERVICES

OFFICE OF THE SECRETARY

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

GENERAL PROVISIONS

(TRANSFER AUTHORITY)

INTERNATIONAL HEALTH ACTIVITIES

DEPARTMENT OF EDUCATION

SCHOOL IMPROVEMENT PROGRAMS

HIGHER EDUCATION

GENERAL PROVISIONS

RELATED AGENCIES

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING EXPENSES

CHAPTER 6

SUBCOMMITTEE ON LEGISLATIVE BRANCH

ARCHITECT OF THE CAPITOL

LIBRARY OF CONGRESS

CHAPTER 7

SUBCOMMITTEE ON TRANSPORTATION, TREASURY AND GENERAL GOVERNMENT

GENERAL PROVISIONS, THIS CHAPTER

CHAPTER 8

SUBCOMMITTEE ON VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT AND INDEPENDENT AGENCIES

DEPARTMENT OF VETERANS AFFAIRS

DEPARTMENTAL ADMINISTRATION

GENERAL OPERATING EXPENSES

(INCLUDING TRANSFER OF FUNDS)

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

COMMUNITY PLANNING AND DEVELOPMENT

COMMUNITY DEVELOPMENT FUND

INDEPENDENT AGENCIES

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

NATIONAL AND COMMUNITY SERVICE PROGRAMS OPERATING EXPENSES

ENVIRONMENTAL PROTECTION AGENCY

STATE AND TRIBAL ASSISTANCE GRANTS

ADMINISTRATIVE PROVISION

NATIONAL SCIENCE FOUNDATION

RESEARCH AND RELATED ACTIVITIES

TITLE III--COLUMBIA ORBITER MEMORIAL ACT

SEC. 301. SHORT TITLE.

SEC. 302. CONSTRUCTION OF MEMORIAL TO CREW OF COLUMBIA ORBITER AT ARLINGTON NATIONAL CEMETERY.

SEC. 303. DONATIONS FOR MEMORIAL FOR CREW OF COLUMBIA ORBITER.

TITLE IV--AVIATION-RELATED ASSISTANCE

DEPARTMENT OF HOMELAND SECURITY

TRANSPORTATION SECURITY ADMINISTRATION

GENERAL PROVISIONS--THIS TITLE

SEC. 4002. ADDITIONAL TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION FOR DISPLACED AIRLINE AND RELATED WORKERS.

`SEC. 208. APPLICABILITY.

TITLE V--PANEL TO REVIEW SEXUAL MISCONDUCT ALLEGATIONS AT UNITED STATES AIR FORCE ACADEMY

SEC. 501. ESTABLISHMENT OF PANEL.

SEC. 502. DUTIES OF PANEL.

SEC. 503. PERSONNEL MATTERS.

TITLE VI--GENERAL PROVISIONS--THIS ACT


Bill Young,
Ralph Regula,
Jerry Lewis,
Hal Rogers,
Frank Wolf,
Jim Kolbe,
James T. Walsh,
Charles H. Taylor,
David L. Hobson,
Ernest J. Istook, Jr.,
Henry Bonilla,
Joe Knollenberg,
Jack Kingston,
Rodney P. Frelinghuysen,
David Obey,
John P. Murtha,
Norman Dicks,
Martin Olav Sabo,
Alan B. Mollohan,
Marcy Kaptur,
Peter J. Visclosky,
Nita M. Lowey,
Jose E. Serrano,
James P. Moran,
Chet Edwards,

Managers on the Part of the House.
Ted Stevens,
Thad Cochran,
Arlen Specter,
Pete V. Domenici,
Christopher S. Bond,
Mitch McConnell,
Conrad Burns,
Richard Shelby,
Judd Gregg,
Robert F. Bennett,
Ben Nighthorse Campbell,
Larry Craig,
Kay Bailey Hutchison,
Mike DeWine,
Sam Brownback,
Robert C. Byrd,
Daniel K. Inouye,
Patrick J. Leahy,
Tom Harkin,
Barbara A. Mikulski,
Harry Reid,
Herb Kohl
(except for P.L. 480),
Patty Murray,
Byron L. Dorgan,
Dianne Feinstein,
Dick Durbin,
Tim Johnson,
Mary L. Landrieu,

Managers on the Part of the Senate.

JOINT EXPLANATORY STATEMENT

The managers on the part of the House and the Senate at the conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H.R. 1559) making emergency wartime supplemental appropriations for the fiscal year ending September 30, 2003, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effects of the action agreed upon by the managers and recommended in the accompanying conference report.

Report language included by the House in the report accompanying H.R. 1559 (H. Rept. 108-55) and included by the Senate in the report accompaning S. 762 (S. Rept. 108-33) should be complied with unless specifically addressed in this statement of the managers. The statement of the managers, while repeating some report language for emphasis, is not intended to negate the language referred to above unless expressly provided herein.

TITLE I--WAR-RELATED APPROPRIATIONS

CHAPTER 1

DEPARTMENT OF AGRICULTURE

AGRICULTURE RESEARCH SERVICE

BUILDINGS AND FACILITIES

The conference agreement includes $110,000,000 for continued modernization of facilities in Ames, Iowa, which will provide a laboratory building, fixed equipment, and associated infrastructure as a complete and usable phase of construction.

PUBLIC LAW 480 TITLE II GRANTS

(INCLUDING TRANSFER OF FUNDS)

The conference agreement includes $369,000,000 for Public Law 480 title II grants. Within this amount, the confees provide $69,000,000 to the Bill Emerson Humanitarian Trust. In addition, the conferees recommend language to prohibit the exchange of an eligible commodity for another commodity of equal value. It is the intention of the conferees that no restriction is imposed on the purchase of any authorized commodity for replenishment of the Bill Emerson Humanitarian Trust.

The conference agreement for Public Law 480 title II grants will allow the restoration of funds to on-going food aid programs which were redirected as a result of prioritizing food aid funds to respond to the conflict in Iraq. The conferees expect that these funds will be utilized for previously approved title II food aid programs in such countries as Bangladesh, Uganda, Malawi, Haiti, Mozambique, Ghana, Kenya, Bolivia, Guatemala, Peru, and Ethiopia.

CHAPTER 2

DEPARTMENT OF JUSTICE

GENERAL ADMINISTRATION

SALARIES AND EXPENSES

The conference agreement includes $5,000,000 for the Office of Intelligence Policy and Professional Responsibility as proposed in the House bill for increased operational support for the Federal Bureau of Investigation (FBI), primarily through the application of warrants under the Foreign Intelligence Surveillance Act. Of the amount provided, $2,000,000 is for additional personnel costs, and $3,000,000 is for information technology enhancements. The Senate did not provide funding for this program.

The conferees adopt by reference House language regarding submission of a proposal on enhanced oversight of the FBI.

COUNTERTERRORISM FUND

The conference agreement includes $70,274,000 for the Counterterrorism Fund, instead of $100,274,000 as proposed in the House bill, to cover extraordinary costs associated with a terrorist threat or incident. This amount includes $20,000,000 in new direct appropriations, and $50,274,000 in unobligated balances currently available in the Fund. The Senate did not fund this program.

The Counterterrorism Fund was established in 1995 after the bombing of the Alfred P. Murrah Building in Okaloma City, and is under control and direction of the Attorney General. These funds may be used to reimburse any Department of Justice organization for the costs incurred from the reestablishment of an office or facility damaged or destroyed as a result of a domestic or international terrorist incident, and to cover extraordinary expenses necessary to counter, investigate, or prosecute domestic or international terrorism activities. The conferees include language requiring the Attorney General to notify the Committees on Appropriations in accordance with section 605 of Division B of Public Law 107-7 prior to obligation of funds from this account.

DETENTION TRUSTEE

The conference agreement provides $40,000,000 for the detention of prisoners in the custody of the U.S. Marshals Service, instead of $45,000,000 as proposed by the Senate and $15,000,000 as proposed by the House.

OFFICE OF INSPECTOR GENERAL

The conference agreement includes $2,500,000 as proposed in the House bill for the Office of Inspector General to provide additional oversight to expanded Department authorities and activities, including oversight related to the implementation of the USA PATRIOT Act. The Senate did not provide funding for this program.

LEGAL ACTIVITIES

SALARIES AND EXPENSES, UNITED STATES MARSHAL SERVICE

The conference agreement provides $8,000,000 for the Marshals Service, instead of $26,080,000 as proposed by the House and no funding as proposed by the Senate. The recommendation includes $5,800,000 to be allocated to those districts with the highest priority needs for the protection of the judicial process and $2,200,000 to upgrade the Marshals Service secure communications capability.

FEDERAL BUREAU OF INVESTIGATION

SALARIES AND EXPENSES

To respond to immediate or emerging terrorism-related prevention and response requirements in the United States, the conference agreement includes a total of $367,192,000 for the FBI instead of $398,862,000 proposed in the House bill and $63,000,000 proposed in the Senate bill. Prior to obligating any of these funds, the conferees direct the Attorney General to notify the Committees on Appropriations in accordance with section 605 of Division B of Public Law 108-7.

OFFICE OF JUSTICE PROGRAMS

COMMUNITY ORIENTED POLICING SERVICES

The conference agreement provides $54,750,000 for the Office of Community Oriented Policing Services, Interoperable Communications Technology Program, instead of $109,500,000 as proposed by the Senate and no funding as proposed by the House. funding should be used to improve State and local law enforcement cross-jurisdictional communication and information sharing.

THE JUDICIARY

SUPREME COURT OF THE UNITED STATES

SALARIES AND EXPENSES

The conference agreement provides $1,535,000 for the Supreme Court of the United States for police enhancements as proposed in the House bill. The Senate proposed no funding for this account.

UNITED STATES COURT OF APPEALS FOR THE FEDERAL CIRCUIT

SALARIES AND EXPENSES

The conference agreement provides $973,000 for the United States Court of Appeals for the Federal Circuit for court security officers as proposed in the House bill. The Senate proposed no funding for this account.

UNITED STATES COURT OF INTERNATIONAL TRADE

SALARIES AND EXPENSES

The conference agreement provides $50,000 for the United States Court of International Trade for a security system upgrade as proposed by the House. The Senate proposed no funding for this account.

DEPARTMENT OF STATE AND RELATED AGENCY

DEPARTMENT OF STATE

ADMINISTRATION OF FOREIGN AFFAIRS

DIPLOMATIC AND CONSULAR PROGRAMS

The conference agreement includes $88,420,000 for costs related to evacuations, emergency response, increased security, and re-establishing a mission in Iraq. The conference agreement includes $32,000,000 for requirements related to the provision of consular services; $35,801,000 for costs associated with the re-establishment of a diplomatic mission in Iraq; $15,619,000 for medical and vaccination services; and $5,000,000 for public diplomacy surge activities in Iraq and throughout the Middle East. The amount provided for re-establishing a diplomatic mission in Iraq includes $17,862,000 for post operations and $17,939,000 for diplomatic security.

In addition, the conference agreement includes $10,000,000 for increased security measures at United States diplomatic missions worldwide.

The conferees expect the Department to intensify public diplomacy activities in the Middle East, including the establishment of an Information Center in the Gulf region. The conferees further expect the Department to aggressively develop new public diplomacy approaches and initiatives. In this regard, the conferees expect the Department to establish an advisory group on public diplomacy for the Arab and Muslim world as described in the House report.

The conference agreement includes language requiring the Department to conduct bimonthly reviews of Machine Readable Visa fee revenue to monitor and better predict possible shortfall. The conferees direct the Department, immediately upon identifying such a shortfall, to reprogram funds as necessary to maintain the fiscal year 2003 Border Security Program, as described in the Statement of Managers accompanying Public Law 108-7.

EMBASSY SECURITY, CONSTRUCTION, AND MAINTENANCE

The conference agreement includes $149,500,000 under this account, including $61,500,000 for the costs of establishing an interim diplomatic facility in Iraq. This funding will allow the Department to acquire, secure, and renovate facilities, as necessary, to provide functional temporary facilities in Iraq. The conferees direct the Department to report to the Committees on Appropriations regarding the special security considerations and procedures associated with the hiring of Iraqi nationals to work in United States diplomatic facilities. The conferees expect the Department to submit to the Committee on Appropriations, as soon as possible, a plan for a permanent facility in Iraq. The proposed plan should adhere to right-sizing principles and rigorous security standards. The conferees expect this construction project will adhere to any cost-sharing arrangement that might be implemented.

The conference agreement includes $10,000,000 for costs of security-related enhancements to non-official facilities worldwide including non-military American schools, as described in the Senate report.

The conference agreement also includes $78,000,000 for facilities acquisition and security improvements in Rome, Italy.

EMERGENCIES IN THE DIPLOMATIC AND CONSULAR SERVICE

The conference agreement includes $50,000,000 under this heading for costs associated with evacuating United States Government employees, their families, and private American citizens, and assisting American citizens overseas, as necessary, as a result of the conflict in Iraq. The conference agreement also includes language allowing funds under this account to be transferred to, and merged with, the Diplomatic and Consular Programs account only for the purpose of maintaining funding levels for the fiscal year 2003 Border Security Program as described under that heading.

RELATED AGENCY

BROADCASTING BOARD OF GOVERNORS

INTERNATIONAL BROADCASTING OPERATIONS

The conference agreement includes $30,500,000 to expand broadcasting efforts to the Middle East, as described in the House report.

GENERAL PROVISION--THIS CHAPTER

The conference agreement includes language waiving provisions of existing legislation that require authorizations to be in place prior to the expenditure of any appropriated funds.

CHAPTER 3

DEPARTMENT OF DEFENSE--MILITARY

Chapter 3 of the conference agreement recommends $62,378,100,000 for the Department of Defense, as proposed by the Senate, instead of $62,409,500,000 as proposed by the House.

Within this amount, the conferees recommend a total of $46,699,200,000 for appropriation to specific accounts and provisions, instead of $36,973,100,000 as proposed by the House and $51,359,100,000 as proposed by the Senate. In addition, the conferees recommend $15,678,900,000 for a new appropriation, the `Iraq Freedom Fund'. This transfer account, available to the Secretary of Defense, has been expressly provided to maximize the Department of Defense's flexibility to address future requirements associated with the military operations in and around Iraq and the global war on terrorism. The conferees have also recommended additional transfer authorities for the Department of Defense.

The conference agreement also includes a new appropriations account requested by the President, the `National Resources Risk Remediation Fund', to pay for emergency fire fighting, repair damage to oil facilities and related infrastructure, and preserve a distribution capability in and around Iraq. This account has been structured to allow the use of foreign contributions, as well as a limited amount of appropriated funds, if required.

The conferees have also, consistent with existing authorities, agreed to address fiscal year 2003 funding requirements requested by the President relating to reimbursements to nations providing support to U.S. military operations; the drawdown of defense funds, articles and supplies; and special emergency expense authority for the Secretary of Defense and the combatant commanders. The conference agreement also includes funding for Department of Defense counter-terrorism military training for foreign nations, as well as funds to support ongoing Department of Defense counter-terrorism efforts in support of the government of Colombia.

The following table provides details of the supplemental appropriations in this chapter.


[Dollars in thousands]
----------------------------------------------------------------------------------------------------------------------------------
                                                                            Budget request        House     Senate     Conference 
----------------------------------------------------------------------------------------------------------------------------------
 Transfer Funds:                                                                                                                  
Defense Emergency Response Fund                                                 59,863,200              11,019,000                
Operation Iraqi Freedom Response Fund                                                        59,682,500                           
Combat, Stability Operations and Force Reconstitution Costs                                [25,436,400]                           
Iraq Freedom Fund                                                                                                      15,678,900 
 Military Personnel:                                                                                                              
Military Personnel, Army                                                                    [6,974,500]  7,724,500      7,700,000 
Military Personnel, Navy                                                                    [1,984,300]  1,784,300      1,600,000 
Military Personnel, Marine Corps                                                            [1,204,900]  1,254,900      1,200,000 
Military Personnel, Air Force                                                               [1,834,800]  2,834,800      2,800,000 
Reserve Personnel, Army                                                                         [3,000]      6,000          3,000 
National Guard Personnel, Army                                                                 [93,000]    110,000        100,000 
Total Military Personnel                                                                                13,714,500     13,403,000 
[Total, Miliary Personnel transfers]                                                       [12,094,500]                           
 Operation and Maintenance:                                                                                                       
O&M, Army                                                                                  [10,481,500] 16,142,500     16,000,000 
O&M, Navy                                                                                   [3,904,300]  5,296,600      5,100,000 
O&M, Marine Corps                                                                           [1,383,700]  1,752,700      1,650,000 
O&M, Air Force                                                                              [3,668,200]  7,209,200      7,100,000 
O&M, Defense-Wide                                                                1,400,000    1,400,000  4,007,700      1,200,000 
[O&M, Defense-Wide transfer]                                                                  [901,900]             1 [1,400,000] 
O&M, Army Reserve                                                                                                           3,000 
O&M, Navy Reserve                                                                                           15,000          7,000 
O&M, Marine Corps Reserve                                                                                   50,000         20,000 
O&M, Army National Guard                                                                       [58,400]     88,400         75,000 
O&M, Air National Guard                                                                                     20,000         20,000 
Natural Resources Risk Remediation Fund                                            489,300  1 [489,300]    489,300    1 [489,300] 
Total, O&M                                                                       1,889,300    1,400,000 35,071,400     31,175,000 
[Total, O&M transfers]                                                                     [20,434,000]                           
 Procurement:                                                                                                                     
Aircraft Procurement, Army                                                                      [4,100]      4,100          4,100 
Missile Procurement, Army                                                                       [3,100]      3,100          3,100 
Procurement of W&TCV, Army                                                                     [53,300]     53,300         53,300 
Procurement of Ammunition, Army                                                               [447,500]    447,500        447,500 
Other Procurement, Army                                                                       [241,800]    241,800        241,800 
Other Procurement, Air Force                                                                  [113,600]    113,600        113,600 
Procurement, Defense-Wide                                                                     [451,000]    451,000        451,000 
Total, Procurement                                                                                       1,314,400      1,314,400 
[Total, Procurement transfers]                                                              [1,314,400]                           
 Research, Development, Test and Evaluation:                                                                                      
RDT&E, Army                                                                                    [11,500]     11,500         11,500 
RDT&E, Defense-Wide                                                                            [90,000]                    70,000 
Total, RDT&E                                                                                                11,500         81,500 
[Total, RDT&E transfers]                                                                      [101,500]                           
Revolving and Management Funds: Defense Working Capital Funds                      430,000    1,100,000    550,000  2 [1,100,000] 
 Other Department of Defense Programs:                                                                                            
Defense Health Program                                                                        [301,700]    501,700        501,700 
Drug Interdiction and Counter-Drug Activities, Defense                              34,000       34,000     34,000         34,000 
Total, Other DoD Programs                                                           34,000       34,000    535,700        535,700 
[Total, Other DoD Programs transfers]                                                         [301,700]                           
 General Provisions:                                                                                                              
Sec. 1307 Reimburse O&M Accounts for Drawdowns [Afghan Freedom Support Act]        165,000      165,000    165,000        165,000 
Defense Cooperation Account                                                         28,000       28,000                    28,000 
Sec. 1317 RDT&E, Navy Rescissions                                                                           -3,400         -3,400 
Total, General Provisions                                                          193,000      193,000    161,600        189,600 
Grand Total, Chapter 3                                                          62,409,500    2,727,000 62,378,100     62,378,100 
[Grand Total, Transfers]                                                                   [59,682,500]                           
----------------------------------------------------------------------------------------------------------------------------------

FISCAL YEAR 2003 APPROPRIATIONS REPORTING REQUIREMENT

The conferees recommend supplemental funds based on the best financial estimates available at the time the President's request was submitted. In providing funds, the conferees held public hearings and had extensive briefings by senior Department of Defense officials and representatives of the military departments. The conferees have endeavored to achieve a workable balance between congressional oversight, providing the Department with financial flexibility to meet the unknowns of ongoing combat operations, and responding promptly to the Department's urgent financial requirements.

The conferees understand that ongoing, dynamic combat operations generate an equally dynamic situation for the Department. As operations are carried out, financial planning assumptions are replaced with actual data. Over time, even the best fiscal projections become real costs and financial obligations.

As fiscal year 2003 progresses, the conferees expect that Department of Defense and the military departments will be able to provide actual fiscal execution information, and better, more refined projections of expected costs.

Accordingly, the conferees direct the Secretary of Defense to submit to the congressional defense committees, no later than July 1, 2003, a comprehensive financial analysis and update for fiscal year 2003. This report will detail both actual and projected obligations of appropriations provided in this Act, the Department of Defense Appropriations Act, 2003 (P.L. 107-248), and the Consolidated Appropriations Resolution, 2003 (P.L. 108-7).

CLASSIFIED PROGRAMS

Recommended adjustments to classified programs are addressed in a classified annex accompanying this report.

MILITARY PERSONNEL

The conference agreement recommends $13,403,000,000 for the military personnel accounts, instead of $12,094,500,000 as proposed by the House (by transfer from the `Operation Iraqi Freedom Response Fund') and $13,714,500,000 as proposed by the Senate. The conferees' recommendation will fund the known incremental costs of pays and allowances for active duty and Reserve personnel through the end of the fiscal year. The conferees recommend including section 1316, as proposed by the Senate, which increases Imminent Danger Pay and Family Separation Allowance.

OPERATION AND MAINTENANCE

The conference agreement recommends $31,175,000,000 for the Operation and Maintenance accounts, instead of $21,834,000,000 ($1,400,000,000 by direct appropriation in `Operation and Maintenance, Defense-Wide', and $20,434,000,000 by transfer from the `Operation Iraqi Freedom Response Fund') as proposed by the House, and $35,071,400,000 as proposed by the Senate.

DEFENSE EMERGENCY RESPONSE FUND

The President requested $59,863,200,000 for the `Defense Emergency Response Fund'. The House proposed no appropriation. The Senate recommended $11,019,000,000 for this fund. The conferees recommend no appropriation for the `Defense Emergency Response Fund'.

OPERATION IRAQI FREEDOM RESPONSE FUND

The House recommended $59,682,500,000 in the `Operation Iraqi Freedom Response Fund' of which $34,246,100,000 was for transfer to service appropriation accounts, and $25,436,400,000 was for transfer to a new `Combat, Stability Operations and Force Reconstitution Costs' account. The Senate provided no appropriation for either account. The conference agreement recommends no appropriation in the `Operation Iraqi Freedom Response Fund'.

IRAQ FREEDOM FUND

The conference agreement recommends an appropriation of $15,678,900,000 for a new appropriation called the `Iraq Freedom Fund'. These funds will be available to the Secretary of Defense for transfer. In exercising their oversight role in the use of these funds, the conferees provide language requiring five day prior notification to the congressional defense committees, in writing, of the details of any transfer of funds, as well as quarterly reports.

The conference agreement creates a framework within which these funds are expressly provided to maximize flexibility for the President and the Department of Defense. The conferees provide the authority for the Department of Defense to transfer not less than $1,771,180,000 for classified programs; not less than $1,100,000,000 for increased fuel costs; up to $1,400,000,000 for payments to key cooperating nations; up to $489,300,000 for the `Natural Resources Risk Remediation Fund'; up to $400,000,000 for the United States Coast Guard; up to $57,600,000 for research, development, test, and evaluation; and up to $25,000,000 for counter-terrorism training activities.

The conferees direct the Department of Defense give priority in using the `Iraq Freedom Fund' to ensure that military personnel accounts and the Defense Health Program are adequately supported.

PAYMENTS TO REIMBURSE KEY COOPERATING NATIONS

The conference agreement includes language under the `Iraq Freedom Fund' and in section 1310 of the general provisions that provides up to $1,400,000,000 in authority to make payments to reimburse Pakistan, Jordan, and other key cooperating nations for certain expenses. The conference agreement limits funds available for such reimbursements to those provided in this chapter. The conference agreement includes language similar to the House bill on notification and reporting requirements.

NATURAL RESOURCES RISK REMEDIATION FUND

The conference agreement includes language creating a new account called `Natural Resources Risk Remediation Fund' (NRRRF). Funds may be transferred to, appropriated to, and contributions made to the NRRRF in order to cover expenses incurred in and around Iraq for emergency fire fighting, repairing damage to oil facilities and related infrastructure, and preservation of a distribution capability. Up to $489,300,000 of the funds appropriated to the `Iraq Freedom Fund' in this Act may be transferred to this fund.

In addition, the Secretary of Defense is authorized to accept contributions for the fund. The conferees also recommend that amounts available in the `Defense Cooperation Account' may be transferred to and merged with this fund, and that the Secretary of Defense may transfer funds available in the NRRRF to other appropriations. The Secretary of Defense may transfer funds appropriated to the `Iraq Freedom Fund' only to the extent that amounts transferred from the `Defense Cooperation Account' and other contributions are not available. To the extent that it becomes necessary to transfer funds from appropriations made in this chapter, and contributions become available later in the fiscal year, the conferees intend that these contributions shall be used to reimburse the `Iraq Freedom Fund'.

COUNTER-TERRORISM TRAINING

The conference agreement includes language that provides up to $25,000,000 for counter-terrorism military training activities for foreign governments in connection with the global war on terrorism 15 days following submission of a financial plan to the congressional defense committees.

PROCUREMENT

The conferees have reviewed possible allocations of funding requested by the President and believe that there are sufficient funds in the `Iraq Freedom Fund' for procurement of items to meet anticipated requirements for weapons, and equipment such as munitions, unmanned aerial vehicles, communications equipment, and other items required for military operations in Iraq, Afghanistan, and the global war on terrorism. The conferees note that in addition to equipment lost in Operation Iraqi Freedom, the Department has also sustained losses in Afghanistan, as well as losses due to mishaps. Among these losses are high-demand, low-density items such as Special Operations MH-47 helicopters and Marine Corps CH-46 helicopters. The conferees believe that the Department of Defense should consider replacing or seeking safety improvements to these assets as well as those described in the President's request.

Within the total recommended by the conferees, funds are also available to restock munitions, including precision munitions, expended in combat or in training. Precision-guided weapons may include Laser Guided Bombs, Wind Corrected Munitions Dispenser (WCMD), Joint Standoff Weapon (JSOW), Affordable Weapon System, Javelin, Tube-launched Optically-tracked Wire-guided (TOW) Anti-tank Missile, Laser and Longbow Hellfire, Army Tactical Missile System (ATACMS), Multiple Launch Rocket System (MLRS) Rockets, and Stinger. In some cases, this is not intended to be a one-for-one replacement of expended munitions and precision-guided weapons, but should instead be used to acquire upgraded versions of these munitions, such as Tactical Tomahawk and Patriot missiles. The conferees agree to the reporting requirements concerning precision-guided munitions, as proposed by the House.

APPROPRIATE USE OF FUNDS FOR ACQUISITION

The conferees agree with the House direction regarding the appropriate use of funds for acquisition with the following changes:

(1) Items or capabilities that can be fielded in less than 18 months (from the date of obligation) require no additional notification.

(2) Items or capabilities requiring greater than 18 months (from the date of obligation) to operationally field require submission of a prior approval reprogramming.

OTHER DEPARTMENT OF DEFENSE PROGRAMS

DEFENSE HEALTH PROGRAM

The conference agreement recommends $501,700,000 for Defense Health Program operation and maintenance costs. From within this amount, the conferees direct that the Department of Defense give priority to the direct care system and military medical treatment facilities.

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

The conference agreement provides $34,000,000, as requested by the President, to fund increased operational tempo in Colombia's unified campaign against narcotics trafficking and terrorist activities. The conferees also agree to the reporting requirement concerning the obligation of these funds proposed by the House.

GENERAL PROVISIONS--THIS CHAPTER

The conferees agree to retain section 1301, as proposed by the House, which directs that amounts in the bill shall be available for the same time period and subject to the same terms and conditions as in Public Law 107-248 and Public Law 108-7.

The conferees agree to retain and amend section 1302, as proposed by the Senate, which prohibits the financing of activities specifically denied by Congress or the initiation of a procurement or research, development, test and evaluation new start program without prior notification to the congressional defense committees. The conferees direct the Department of Defense to submit a prior approval reprogramming in any instance in which it seeks to use funds in this Act for any program denied in previous fiscal year 2003 Appropriations Acts as delineated in either the Act or the Statement of the Managers accompanying those Acts.

The conferees agree to retain section 1303, as proposed by the House, which prohibits the use of funds provided for programs that require greater than four years to operationally field.

The conferees agree to retain and amend section 1304, as proposed by the House and the Senate, which provides additional funds for the CINC Initiative Fund.

The conferees agree to retain and amend section 1305, as proposed by the House and the Senate, which amends the limitation on the amount of `Operation and Maintenance, Defense-Wide' funds that may be used for emergency and extraordinary expenses.

The conferees agree to retain and amend section 1306, as proposed by the House and the Senate, which amends section 8005 of Public Law 107-248 and Public Law 108-7, addressing transfer authority.

The conferees agree to retain and amend section 1307, as proposed by the House and the Senate, which appropriates $165,000,000 to reimburse appropriations accounts for the value of drawdown support provided by the Department of Defense under the Afghan Freedom Support Act. The conference agreement includes House language that requires prior written notification of the source of funds in any future drawdown. The conferees note that the net remaining drawdown authority under the Afghan Freedom Support Act of $135,000,000.

The conferees agree to retain section 1308, as proposed by the Senate, which provides that funds appropriated in this Act are deemed specifically authorized for the purposes of section 504 of the National Security Act of 1947 (50 U.S.C. 414). The House included similar language.

The conferees agree to retain and amend section 1309, as proposed by the House and the Senate, which allows for the use of $63,500,000 of the amounts available to the Department of Defense to reimburse appropriations accounts for the value of support provided under the Iraq Liberation Act of 1998. Senate language is also included that provides for specific transfer authority in addition to other transfer authorities available to the Department of Defense. The conference report amends House language that provides that the aggregate value of drawdown authority in fiscal year 2003 may not exceed $86,500,000. The Department of Defense is required to provide the congressional defense committees written notification not later than seven days following the use of the drawdown authority under the Iraq Liberation Act of the sources of the funds to be used for such purpose. The conferees note that the net remaining drawdown authority available in fiscal years 2003 and 2004 under the Iraq Liberation Act of 1998 is $120,000,000.

The conference agreement includes a new provision, section 1310, similar to language in the House bill and the Senate amendment that provides guidance and restrictions on the use of up to $1,400,000,000 for the reimbursement of key cooperating nations, as discussed elsewhere in this Statement.

The conferees agree to include a new provision, section 1311, regarding additional transfer authority for funds provided in this chapter. While the conferees believe that the allocation of funding recommended in this bill will closely reflect the needs of the military services, they also recognize that the unpredictable nature of conflict could require some reallocation of funds. As such, the conference agreement provides the Secretary of Defense with an additional $2,000,000,000 in transfer authority for the funds provided in this chapter. The conferees direct that the use of this transfer authority should be in accordance with restrictions in section 8005 of the fiscal year 2003 Department of Defense Appropriations Act (PL 107-248). Furthermore, the conferees direct that the Defense Department shall comply with accepted reprogramming practices to include the submission of DD Form 1415 prior approval reprogramming requests in using this expanded authority.

The conferees agree to retain section 1312, as proposed by the Senate, and deletes language as proposed by the House which provides for notification 15 days after obligation of military construction funds in excess of $7,500,000.

The conferees agree to amend section 1313, as proposed by the House, which transfers all balances of funds remaining in the `Defense Emergency Response Fund' on October 31, 2003 to the `Iraq Freedom Fund'.

The conferees agree to delete language, as proposed by the Senate, that would have allowed for the use of unobligated Cooperative Threat Reduction funds outside the states of the former Soviet Union. The House bill did not address this matter.

The conferees agree to amend and retain section 1314, which amends three sections as proposed by the Senate, making certain technical adjustments regarding funds in the fiscal year 2003 Department of Defense Appropriations Act (P.L. 107-248).

The conferees agree to retain section 1315, as proposed by the Senate, which makes a technical correction to the National Defense Authorization Act of 2003 with respect to certain multi-year services contracts.

The conferees agree to retain section 1316, as proposed by the Senate, which increases the monthly allowance for Imminent Danger Pay and Family Separation Allowance for fiscal year 2003.

The conferees agree to delete language, as proposed by the Senate, which provided $7,500,000 for the Armed Forces Institute of Pathology (AFIP) and halted any decrease in the number of personnel, but expect the Department of Defense to provide sufficient funds and personnel to meet the mission of AFIP through the end of the fiscal year.

The conferees agree to retain section 1317, as proposed by the Senate, which rescinds $3,400,000 of the Public Law 107-248 `Research, Development, Test and Evaluation, Navy' appropriation, for Treatment of Radiation Sickness Research.

The conferees agree to retain and amend section 1318, as proposed by the Senate, which provides certain authorities to cover travel and transportation benefits for family members of military personnel injured during Operation Noble Eagle, Operation Enduring Freedom, or Operation Iraqi Freedom.

The conferees agree to retain section 1319, as proposed by the Senate, which provides certain authorities for the procurement of civilian attire for medically evacuated military personnel.

The conferees agree to delete section 607 of title VI in the Senate passed bill.

CHAPTER 4

DEPARTMENT OF DEFENSE--CIVIL

DEPARTMENT OF THE ARMY

CORPS OF ENGINEERS--CIVIL

OPERATION AND MAINTENANCE, GENERAL

The conference agreement provides $39,000,000 to support increased security measures at Corps of Engineers owned and operated infrastructure facilities instead of $29,000,000 as proposed by the Senate.

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

WATER AND RELATED RESOURCES

The conference agreement provides $25,000,000 to support increased security measures at Bureau of Reclamation owned and operated infrastructure facilities as proposed by the Senate. The conferees expect that the funds provided in this Act will be used primarily for facility hardening activities, additional vulnerability assessments, and guards and law enforcement.

DEPARTMENT OF ENERGY

ENERGY PROGRAMS

SCIENCE

The conference agreement provides an additional $11,000,000 for the Office of Science to enhance safeguards and security at its laboratories, to meet the requirements of a revised design basis threat, to fund the costs of maintaining those facilities at an elevated security condition in fiscal year 2003, and for other purposes.

ATOMIC ENERGY DEFENSE ACTIVITIES

NATIONAL NUCLEAR SECURITY ADMINISTRATION

WEAPONS ACTIVITIES

The conference agreement includes $67,000,000 for the National Nuclear Security Administration (NNSA) to meet increased safeguards and security needs throughout the nuclear weapons complex. The funding provided includes $20,000,000 for the activities of the Secure Transportation Asset and $47,000,000 to meet increased safeguards and security needs throughout the nuclear weapons complex.

DEFENSE NUCLEAR NONPROLIFERATION

The conference agreement provides $148,000,000 for Defense Nuclear Nonproliferation activities by the National Nuclear Security Administration. This funding includes: $84,000,000 under the International Nuclear Materials Protection and Cooperation program to develop and deploy radiation detectors at mega seaports, in coordination with the Department of Homeland Security, Bureau of Customs and Border Protection; $17,000,000 to expand efforts under the International Nuclear Materials Protection and Cooperation program to secure radioactive materials that may be used to construct a radioactive dispersal device (RDD), and to develop standards for the cleanup of contamination resulting from a potential RDD event; $15,000,000 under Nonproliferation and International Security Assistance to expand nonproliferation assistance to countries other than the former Soviet Union; $15,000,000 under Nonproliferation and Verification R&D for nuclear nonproliferation programs, including $2,500,000 for the Caucasus Seismic Network; $5,000,000 under Nonproliferation and International Security for international export controls; $5,000,000 under International Nuclear Materials Protection and Cooperation to support activities in Iraq; $5,000,000 under Nonproliferation and Verification R&D for materials and devices to detect nuclear materials; and $2,000,000 under Nonproliferation and International Security to conduct vulnerability assessments for spent nuclear fuel casks.

ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT

The conference recommendation provides $6,000,000 for the Office of Environmental Management to meet safeguards and security requirements at its defense cleanup and waste disposal sites.

OTHER DEFENSE ACTIVITIES

The conference recommendation provides $4,000,000 under Other Defense Activities, including $1,000,000 for additional security testing by the Office of Independent Oversight and Performance Assessment, and $3,000,000 to meet increased intelligence and counterintelligence mission requirements.

CHAPTER 5

BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

CHILD SURVIVAL AND HEALTH PROGRAMS FUNDS

The conference agreement appropriates $90,000,000 as proposed by the Senate instead of $40,000,000 as proposed by the House. The recommended level is provided to reimburse the account for funds previously borrowed and provided to preposition personnel and commodities to address humanitarian needs anticipated prior to the commencement of the conflict with Iraq. The conferees include language that provides that funds are made available until September 30, 2004.

INTERNATIONAL DISASTER ASSISTANCE

The conference agreement appropriates $143,800,000, to remain available until expended, instead of $160,000,000 as proposed by the House and $112,500,000 as proposed by the Senate. These funds include $112,500,000 to reimburse the account for funds used to preposition in the vicinity of Iraq the necessary personnel, supplies and commodities required to rapidly commence implementation of humanitarian assistance in Iraq.

The conference agreement includes language requested by the President that would allow additional `borrowing' from other foreign assistance accounts within this Act. In the event that additional `borrowing' is contemplated, the conferees expect to be consulted by USAID simultaneously with the initiation of any discussions with the Office of Management and Budget.

UNITED STATES EMERGENCY FUND FOR COMPLEX FOREIGN CRISES

The President requested $150,000,000 for a new United States Emergency Fund for Complex Foreign Crises. The Senate provided the President's request; the House did not. The conferees believe that this request should be considered within the context of the fiscal year 2004 appropriations and authorization processes and therefor do not provide funds for this initiative in fiscal year 2003. The conference agreement distributes amounts requested for this account to similar existing accounts and the new Iraq Relief and Reconstruction Fund (Iraq Fund).

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

The conference agreement appropriates $24,500,000 for Operating Expenses of United States Agency for International Development instead of $23,000,000 as proposed by the House and $23,600,000 as proposed by the Senate. These funds are to be used to implement programs recommended elsewhere in this chapter and for security costs in Afghanistan and Pakistan. The conferees intend for $1,000,000 to be provided to reimburse the USAID Bureau for Asia and the Near East for costs incurred in connection with the evacuation of its mission in Jakarta, Indonesia, for which no request was received.

Not less than $3,500,000 from this account may be transferred and merged with `Operating Expenses of the United States Agency for International Development Office of Inspector General' to support financial and program audits of the Iraq Relief and Reconstruction Fund. The conferees expect the Inspector General of USAID to monitor, in particular, the contracts and awards that utilize the Iraq Fund, and to report promptly to the Committees any credible information he may receive regarding impediments to rapid program implementation or irregularities in contracting. In making awards to contractors engaged in the reconstruction of Iraq, the conferees request the Administrator of the U.S. Agency for International Development to actively seek to include significant participation by small, minority, and disadvantaged American-owned business enterprises.

OTHER BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

IRAQ RELIEF AND RECONSTRUCTION FUND

(INCLUDING TRANSFERS OF FUNDS)

The conference agreement appropriates to the President $2,475,000,000 for a new Iraq Relief and Reconstruction Fund, to remain available until September 30, 2004, instead of $2,483,300,000 as proposed by the House and $2,468,300,000 as proposed by the Senate.

The conferees note that this appropriation, some of which is requested to meet immediate relief requirements, is likely to be a down payment on a much larger United States contribution toward the longer-term reconstruction of Iraq.

As requested by the President, the Iraq Relief and Reconstruction Fund (the Iraq Fund) will be used for such programs as (1) water/sanitation infrastructure; (2) feeding and food distribution; (3) supporting relief efforts related to refugees, internally displaced persons, and vulnerable individuals, including assistance for families of innocent Iraqi civilians who suffer losses as the result of military operations; (4) electricity; (5) healthcare; (6) telecommunications; (7) economic and financial policy; (8) education; (9) transportation; (10) rule of law and governance; (11) humanitarian demining; and (12) agriculture.

The conferees expect that initial obligations from the Iraq Fund will focus on the first six priorities listed above, especially water/sanitation infrastructure. The conferees expect the Office of Foreign Disaster Assistance in cooperation with the Office of Reconstruction and Humanitarian Assistance to initially focus on provision of clean water, food, electricity and other forms of direct relief to vulnerable communities. As regions of Iraq are declared to be secure by the United States Central Command, economic stabilization technical assistance of the Department of the Treasury and longer-term reconstruction activities the United States Agency for International Development would be mobilized within Iraq.

The conference agreement designates the Iraq Fund as bilateral economic assistance under the authorities of the Foreign Assistance Act of 1961, as amended. The funds are appropriated to the President who customarily has apportioned them to the Department of State and the United States Agency for International Development. Because of the special circumstances in Iraq, the conferees also provide for direct apportionment from the Fund, as necessary, to the Departments of Treasury, Defense, and Health and Human Services for activities such as Treasury technical assistance, Army Corps of Engineers, civil affairs team grants, and for deployment of personnel of the Centers for Disease Control.

The conferees request that the relevant officials of the Departments of the Treasury, Defense, and Health and Human Services promptly consult with the Subcommittee on Foreign Operations, Export Financing, and Related Programs regarding modalities for provisions of financial data regarding Iraq activities under this account, including memoranda of understanding with the USAID Inspector General and notification documentation. The conference agreement also provides that obligations from the Iraq Fund are subject to notification to the Committees on Appropriations 5 days in advance of the obligation of such funds. The conferees intend such notifications to be treated by the Administration as having the same force and effect as notifications provided to the Committees on Appropriations in accordance with the Committees' regular notification procedures.

In addition, transfers to agencies other than the Department of State and USAID under section 632 of the Foreign Assistance Act and under the general provisions of this chapter are made subject to notification procedures of the Committees on Appropriations.

The conference agreement includes language directing that the Iraq Fund shall be used to fully and promptly reimburse accounts administered by the Departments of State and the Treasury and the United States Agency for International Development, not otherwise reimbursed from funds appropriated by this chapter, for obligations incurred for the purposes provided under this heading prior to enactment of this Act from funds appropriated for foreign operations, export financing, and related programs. In particular, $150,000,000 `borrowed' for purchase of food under the authority of section 507 of the fiscal year 2003 Foreign Operations, Export Financing and Related Programs Appropriations Act from the Development Assistance account and the Economic Support Fund should be reimbursed without delay. The conferees expect rapid reimbursement of an additional $50,000,000 that was `borrowed' from the Development Assistance account for Iraq assistance under the provisions of section 492(b) of the Foreign Assistance Act.

The conference agreement provides that funds made available for rehabilitation and reconstruction in Iraq should include assistance to families of innocent Iraqi civilians who suffer losses as a result of the military operations. The managers intend that USAID and the Department of State, in coordination with the Department of Defense and nongovernmental organizations, will seek to identify families of non-combatant Iraqis who were killed or injured or whose homes were damaged during recent military operations, and to provide appropriate assistance.

The conference agreement also includes a general provision requiring two reports from the President: (1) within 30 days of enactment on this Act on the proposed Iraq Fund management structure and (2) within 45 days on strategies for reconstruction and the establishment of an independent civil government in Iraq, coordination with other governments and international organizations, burden-sharing, and estimated costs.

Beginning not later than 90 days following enactment of this Act and every 90 days thereafter until September 2004, the conference agreement requires the President to submit periodic reports on significant ongoing and proposed United States-funded reconstruction activities in Iraq and the extent of financial pledges and actual contributions for assistance in Iraq by foreign governments and international organizations.

ECONOMIC SUPPORT FUND

The conference agreement appropriates $2,422,000,000 instead of $2,342,000,000 as proposed by the House and $2,357,900,000 as proposed by the Senate.

The conference agreement includes not less than $700,000,000 for Jordan, as proposed by both the Senate and the House.

The conference agreement includes $300,000,000, to remain available until September 30, 2005, only for grants to Egypt, which may be used to guarantee loans of not to exceed $2,000,000,000 as proposed by both the House and Senate. The conference agreement: (1) provides that all fees associated with Egypt's loan guarantees shall be paid by the Government of Egypt to the Government of the United States; (2) allows funds in this Act and prior appropriated funds for Egypt to be used for the cost of loan guarantees; (3) provides that the President should take into consideration budgetary and economic reforms undertaken by Egypt; and (4) provides that loan guarantees are backed by the full faith and credit of the United States.

The conference agreement includes permissive language that allows the President to provide not to exceed $1,000,000,000 for Turkey similar to the Senate bill and the same as the House bill. These funds remain available until September 30, 2005 and may be used to provide or guarantee loans up to $8,500,000,000. The conferees agree to the Senate provision that any balance of funds not made available to Turkey under this paragraph shall be transferred to, and merged with, funds appropriated for the Iraq Relief and Reconstruction Fund.

The conference agreement provides that none of the funds for Turkey in this Act under the Economic Support Fund may be made available for Turkey if the Secretary of State determines and reports to the Committees on Appropriations of the House and Senate, the Committee on Foreign Relations of the Senate and the Committee on International Relations of the House that the Government of Turkey is not cooperating with the United States in Operation Iraqi Freedom, including the facilitation of humanitarian assistance to Iraq, or has unilaterally deployed forces into northern Iraq.

The conference agreement also: (1) allows funds in this Act and prior appropriated funds for Turkey to be used by the Government of Turkey to pay the United States for all fees associated with loans and loan guarantees; (2) provides that the President should take into consideration budgetary and economic reforms undertaken by Turkey; and (3) specifies that loan guarantees are backed by the full faith and credit of the United States.

The conference agreement includes not less than $30,000,000 for assistance for the Philippines to further the prospects for peace in Mindanao. The Senate Bill included $50,000,000 for this purpose and the House bill did not address this issue. The conferees endorse the Senate report language related to this assistance.

The conference agreement includes $167,000,000 for Afghanistan to continue efforts to support security and economic growth in that nation, of which up to $100,000,000 is provided to accelerate the completion of the major Kabul-Kandahar road; $10,000,000 is provided, as necessary, for grants by provincial reconstruction teams; and $57,000,000 is provided for implementation of the Bonn electoral process and operational support for the Afghanistan Government.

The conferees note the continued importance of ensuring that women are active participants in all facets of the reconstruction process in Afghanistan, particularly as the Afghan people assume greater responsibility for Afghan development. The conferees support efforts by women-led, Afghan nongovernmental organizations to expand their capacity to manage critical programs and services. The conferees also urge that United States funds be used to bolster the role of women in the Bonn electoral process.

The conference agreement includes $10,000,000 for investigations and research into allegations of war crimes, crimes against humanity, or genocide committed by Saddam Hussein or other Iraqis, and for a contribution to an international tribunal to bring these individuals to justice. This proviso is similar to language included in the Senate bill as section 505. The House bill did not address this issue. The conferees request that not later than 120 days after enactment of this Act the Secretary of State report to the Committees on Appropriations on plans for the prosecution of these individuals.

The conference agreement also includes $40,000,000 to reimburse the Economic Support Fund account for resources advanced to fund supplies, commodities and services prior to the conflict in Iraq.

As all fiscal year 2003 funds that were transferred from this account to accommodate pre-positioning of Iraq relief and reconstruction are being fully reimbursed and restored by this Act, the conferees expect the Department of State to revise its current 653(a) country allocation report, consistent with the intent of Congress in Division E of Public Law 108-7 and House Report 108-10, with regard to the Special Court for Sierra Leone, the Muslim Exchange Program, and technical assistance to implement the Kimberley Process Certification Scheme.

LOAN GUARANTEES TO ISRAEL

The conference agreement includes $9,000,000,000 in loan guarantees for Israel during the period beginning March 1, 2003 and ending September 30, 2005 as included in both the House and Senate bills. Of this assistance, $3,000,000,000 may be issued in fiscal year 2003 or thereafter, and $3,000,000,000 may be issued subsequent to September 30, 2004. The conference agreement provides that these guarantees shall be backed by the full faith and credit of the United States. The agreement restricts these resources to support activities in the geographic areas which were subject to the administration of the Government of Israel before June 5, 1967 and that guarantees may be reduced for any activities that the President of the United States determines are inconsistent with the objectives and understandings reached between the United States and the Government of Israel regarding the implementation of the loan guarantee program, as was proposed by the House and Senate bills. The conference agreement provides that the President shall take into consideration budgetary and economic reforms undertaken by Israel. The conferees expect the State Department to provide to the appropriate Committees of Congress any letters of understanding reached between the government of the United States and Israel on economic reform measures and settlement related activities that pertain to the issuance of these loan guarantees.

As was previously the case with the 1992 loan guarantees, all associated fees are to be paid by the Government of Israel to the United States Government, and the conference agreement includes language, not in the House or Senate bills, clarifying that the interest rate for loans guaranteed may include a reasonable fee to cover the costs and fees incurred by the borrower in connection with this financing.

DEPARTMENT OF STATE

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

The conference agreement appropriates $25,000,000 as proposed by the House and the Senate. These funds would remain available for obligation until September 30, 2004, as proposed by the House and the Senate.

ANDEAN COUNTERDRUG INITIATIVE

The conference agreement appropriates $34,000,000 as proposed by the House and the Senate. The conference agreement provides that funds shall remain available for obligation until September 30, 2004 as proposed by the House and by the Senate.

The conferees are concerned with reports of rising numbers of impoverished Colombians who are displaced from their homes as a result of armed conflict. Therefore, the conference agreement provides that not less than $5,000,000 should be made available for assistance to these people, and encourages USAID and the State Department's Bureau of Population, Refugees and Migration to support organizations such as the League of Displaced Women in Bolivar, which work to protect the rights and needs of displaced women and children.

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND

The conference agreement appropriates $80,000,000 as proposed by the House instead of $75,000,000 as proposed by the Senate. The President has drawn down $40,000,000 to date from ERMA for Iraq-related costs. Including the President's request for ERMA replenishment, the ERMA balance is considerably lower than recent historical levels. Therefore the conferees recommend an additional $40,000,000 for ERMA to meet unforeseen emergency needs.

NONPROLIFERATION, ANTI-TERRORISM, DEMINING, AND RELATED PROGRAMS

The conference agreement appropriates $28,000,000 as proposed by the House and the Senate for Nonproliferation, Anti-Terrorism, Demining and Related Programs.

MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

FOREIGN MILITARY FINANCING PROGRAM

The conference agreement recommends $2,059,100,000 for Foreign Military Financing Program as provided by the House and Senate.

The conference agreement includes not less than $1,000,000,000 for grants only for Israel, requires these funds to be disbursed within 30 days of enactment of this Act, and specifies $263,000,000 of this allocation shall be available for acquisition of defense services and articles in Israel. The conference agreement also provides not less than $406,000,000 for Jordan.

The conference agreement assumes the following allocations as supported in the House and Senate reports; $170,000,000 for Afghanistan to train, equip and support the Afghan National Army; $175,000,000 to provide Pakistan with improved border security and counter-terrorism capabilities, and $30,000,000 for counter-terrorism assistance to the Philippines.

The conferees agree to Senate language that provides up to $20,000,000 may be transferred to and merged with the Andean Counterdrug Initiative account for aircraft, training and other assistance for the Colombian Armed Forces.

The conferees have included language requiring regular notification procedures of the Committees on Appropriations in advance of commitment of funds and clarifying the basis for such notifications. The Senate bill included language that required notification in advance of obligation of funds and the House did not address the issue.

The conferees expect that notifications to the Committees of deviation from the notification report in terms of the amount, and significant deviation in terms of the kind of assistance being provided, will be transmitted to the Committee five days in advance of commitment.

PEACEKEEPING OPERATIONS

The conference agreement appropriates $100,000,000 for Peacekeeping Operations instead of $115,000,000 as provided by the House and $150,000,000 as recommended by the Senate. The conferees include language that provides that the funds are available until September 30, 2004. The conferees note that the supplemental budget request provided little detail in support of the $200,000,000 request. The conferees note that section 1501 provides not to exceed $100,000,000 in transfer authority should peacekeeping activities occur in excess of the amounts provided in this agreement.

GENERAL PROVISIONS--THIS CHAPTER

Under section 1501, the conference report includes language similar to section 501 of the Senate amendment that allows transfers among certain international assistance programs in this chapter in an amount not to exceed $100,000,000. The section requires consultation and a five-day notification. The Senate amendment included an amount not to exceed $200,000,000 and the House bill did not address this matter.

Under section 1502 of the general provisions, language is included similar to that in the House bill and Senate amendment that would extend the authority to provide assistance for Iraq notwithstanding any other provision of law. The conference agreement provides that funds made available for assistance for Iraq under this chapter are subject to section 553 of Public Law 108-7. However, the conferees recognize that the uniquely insecure conditions in Iraq may necessitate some modification of normal vetting procedures under section 553 until the security conditions improve.

Use of the notwithstanding provision in section 1502 is subject to a five-day notification in advance of obligation. Similar to the House provision, the section allows a waiver of notification in the case of substantial risk to human health or welfare.

The conference agreement, under section 1503, includes a provision similar to the House bill that would make inapplicable the Iraq Sanctions Act of 1990 and authorize the President to make inapplicable with respect to Iraq section 620A and section 307 of the Foreign Assistance Act with respect to Iraq. The conference agreement includes a provision similar to that proposed by the House and Senate stating that nothing in this section shall affect the applicability of the Iran-Iraq Arms Non-Proliferation Act of 1992, but the conferees allow for an exception as it applies to humanitarian assistance and supplies. The purpose of this proviso is to clarify that the suspension of the Iraq Sanctions Act is not intended to affect the continued applicability of that Act to Iran pursuant to section 1603 of the Iran-Iraq Arms Non-Proliferation Act of 1992. The exception in the proviso for humanitarian assistance and supplies will permit, notwithstanding section 1603, the issuance of export licenses for Iran that support the provision of humanitarian assistance and supplies to Iraq. The conference agreement provides that military equipment as defined by Title XVI, section 1608(1)(A) of Public Law 102-484 shall not be exported. The conference agreement requires that the exercise of authorities of section 1503 are subject to notification, and the conferees require a periodic report containing a summary of all licenses approved for export to Iraq if the item is on the Commerce Control List contained in the Export Administration Regulations, including the identification of end users of such items. The conferees do not intend for the authorities contained in this section to be permanent, and the section will expire on September 30, 2004 unless a prior Iraq authorization bill has been enacted that amends, repeals or makes the section inapplicable.

Under section 1504, the conference agreement provides for the export to Iraq of any nonlethal military equipment notwithstanding any other provision of law. The conference agreement provides an exception to the non-lethal military equipment limitation for equipment designated by the Secretary of State for use by a reconstituted (or interim) Iraqi military or police force. The conferees intend that such exports be limited to small arms and ammunition.

The section provides the President with the flexibility to authorize exports to Iraq upon determining that they are in the national interest of the United States. The conferees do not intend for the authority contained in this section to be permanent, and the section will expire on September 30, 2004 unless a prior authorization bill has been enacted that amends, repeals or makes the section inapplicable.

The conference agreement does not include section 505 of the Senate amendment. This provision is addressed under the Economic Support Fund. The House did not address this matter.

The conference agreement does not include section 506 of the Senate amendment that expressed the Sense of the Senate regarding the awarding of contracts and grants for relief and reconstruction in Iraq from funds in this chapter. The House addressed this matter in section 3002 of Title III.

The conference agreement does not include section 507 of the Senate amendment that expressed the Sense of the Senate that reconstruction of Iraq should be funded from Iraqi oil revenues. The House did not address this matter.

Under section 1505 the conference agreement amends current law restrictions on fiscal year 2003 funding for Ukraine to limit assistance to the central Government of Ukraine if the Secretary of State reports that the Government of Ukraine has facilitated arms sales or arms transfers to Iraq. The Senate proposed a waiver of current law, and the House did not address this matter.

Under section 1506 the conference agreement requires reports related to United States and other activities in Iraq and associated costs.

CHAPTER 6

HOMELAND SECURITY APPROPRIATIONS, 2003 SUPPLEMENTAL

The conference agreement on the Homeland Security chapter of the Emergency Wartime Supplemental Appropriations Act, 2003, incorporates some of the language and allocations set forth in House Report 108-55 and some of the language and allocations set forth in Senate Report 108-33. The language in House Report 108-55 and Senate Report 108-33 should be complied with unless specifically addressed in the accompanying statement of managers.

Throughout the accompanying explanatory statement, the managers refer to the Committee and Committees on Appropriations. Unless otherwise noted, in both instances, the managers are referring to the House Subcommittee on Homeland Security and the Senate Subcommittee on Homeland Security.

DEPARTMENT OF HOMELAND SECURITY

DEPARTMENTAL MANAGEMENT

COUNTERTERRORISM FUND

The conferees agree to provide $150,000,000 for the Counterterrorism Fund, instead of $1,135,000,000 as proposed by the Senate. The Counterterrorism Fund exists to reimburse any Department of Homeland Security organization for the unanticipated costs of providing support to prevent, counter, investigate, respond to, or prosecute unexpected threats or acts of terrorism. Funds shall remain available until expended, but may not be obligated until 15 days after notification of the Committees on Appropriations. In addition, the funds are subject to the reprogramming requirements set forth in Section 1601 of this chapter.

CITIZENSHIP AND IMMIGRATION SERVICES

OPERATING EXPENSES

The conferees agree to provide $3,000,000 for additional expenses related to Operation Liberty Shield, instead of $1,000,000 as proposed by the House. Funds shall remain available until expended, but may not be obligated until 15 days after notification of the Committees on Appropriations.

UNITED STATES SECRET SERVICE

OPERATING EXPENSES

The conferees agree to provide $30,000,000 for additional expenses related to Operation Liberty Shield, as proposed by the House. Funds shall remain available until expended, but may not be obligated until 15 days after notification of the Committees on Appropriations.

BORDER AND TRANSPORTATION SECURITY

CUSTOMS AND BORDER PROTECTION

The conferees agree to provide $333,000,000 for additional expenses related to Operation Liberty Shield and for other homeland security purposes, instead of $428,000,000 as proposed by the House. Funds shall remain available until expended, but may not be obligated until 15 days after notification of the Committees on Appropriations. This amount includes $35,000,000 to support the Container Security Initiative and $25,000,000 to fully fund the transfer of 285 Border Patrol Agents to the Northern Border.

In addition, the conferees include $60,000,000 for the cost of additional inspectors and associated positions on the Northern Border and at maritime ports of entry, and $90,000,000 for portal radiation detection and monitoring technology and non-intrusive inspection technology. In addition to the requirement for a 15-day prior notification, the conferees direct that none of these funds may be obligated (1) for additional personnel until the Commissioner of the Bureau of Customs and Border Protection submits to the Committees on Appropriations a detailed budget execution plan for hiring and deploying the additional personnel, including timeframe and locations; or (2) for new detection, monitoring and inspection technology until the Commissioner submits to the Committees a revised technology investment plan that includes the impact of this additional funding on agency performance, as well as proposed deployment schedules and locations.

COMMERCIAL VEHICLE SCREENING AT KEY BRIDGES

The conferees are concerned about the vulnerability of bridge ports of entry on the U.S.-Canada border to vehicle traffic that might contain radioactive material and direct the Bureau of Customs and Border Protection to implement its current plan to install a portal radiation monitor in May of 2003 at the Blue Water Bridge port of entry at Port Huron, Michigan. The conferees also direct that inspectors at the port of entry be fully trained in the detection of radioactive materials in cargo and equipped, as appropriate, with both personal radiation detectors and isotope identifiers. Because commercial motor vehicles carrying municipal solid waste may be used intentionally or accidentally to transport radioactive or other hazardous material, the conferees direct the Bureau to screen and inspect such vehicles as necessary to enforce federal law and, as appropriate, State law governing such traffic. The Bureau should give particular attention to traffic using the Ambassador Bridge port of entry in Detroit, Michigan, and the Blue Water Bridge port of entry in Port Huron, Michigan. The Bureau of Customs and Border Protection shall also reevaluate whether municipal solid waste should continue to be classified as a `low risk commodity' under the Border Release Advanced Screening and Selectivity (BRASS) System.

IMMIGRATION AND CUSTOMS ENFORCEMENT

The conferees agree to provide $170,000,000 for additional expenses related to Operation Liberty Shield and related homeland security missions, instead of $185,000,000 as proposed by the House. Funds shall remain available until expended, but may not be obligated until 15 days after notification of the Committees on Appropriations. This amount includes $15,000,000 for additional special agents, intelligence analysts, and air and marine enforcement personnel at the Northern Border and maritime ports of entry. However, none of these funds may be obligated until the Assistant Secretary for Immigration and Customs Enforcement submits to the Committees on Appropriations a detailed budget execution plan for hiring and deploying the additional personnel, including timeframe and locations.

ENTRY EXIT SYSTEM

The Department has not formally submitted a budget execution plan for the use of the $380,000,000 appropriated for the Entry Exit project as provided by Public Law 108-7. However, in order to avoid significant delays, the conferees approve the Department's use of up to $5,000,000 of these funds to support contract work on critical prerequisite elements to include privacy impacts, system security, cost-benefit analysis, statement of work, and systems requirements specifications. The conferees direct that no additional obligations shall be made until an expenditure plan has been approved by the Department and by the Office of Management and Budget, reviewed by the General Accounting Office (GAO), and approved by the Committee on Appropriations. Such plan must meet the requirements specified in Public Law 108-7, with the exception that availability of these funds for obligation and expenditure shall be governed by reprogramming guidelines set forth in Section 1601 of this Act. The conferees expect that the expenditure plan will contain sufficient detail and documentation to explain planned capabilities and benefits, timeframes for delivery, costs, and progress in meeting prior expenditure plan targets. The plan should also describe the management actions being taken to assure that the Entry Exit system will meet established goals for system capability, benefits, schedule, and cost. The conferees also direct that the Bureau and Department, in their quarterly briefings to the Committee, include information on any changes in previously submitted expenditure plans and documentation.

As the Entry Exit project is now the responsibility of the Department of Homeland Security, the conferees direct the Department to develop a close cooperative working relationship with GAO. In order for GAO to support the Committees in their oversight of this important and expensive project, the Department should allow access to working documents and consultation and Departmental, Directorate, Bureau and project staff on a routine, confidential and professional basis prior to submission of spending plans to the Committees. The Department should establish the same relationship with GAO on Entry Exit as has been established with the Automated Commercial Environment (ACE) project. The Committees on Appropriations will take no action on funding requests until GAO has completed its review of proposed plans and shares its evaluation with the Committees. If GAO has been permitted to develop sufficient understanding of the overall management of the Entry Exit program, and is provided adequate information of a plan before its submission, the review should be completed within 30 days. If GAO is afforded insufficient advance information, the time will be as long as reasonably required for GAO to conduct its review to assess compliance of the plan with established requirements.

TRANSPORTATION SECURITY ADMINISTRATION

The conferees agree to provide $665,000,000 for the Transportation Security Administration (TSA) instead of $390,000,000 as proposed by the House. Funds shall remain available until expended but may not be obligated until 15 days after notification of the Committees on Appropriations. The Act includes funding for critically needed transportation security requirements as follows:

Physical modifications of commercial service airports to install checked baggage explosive detection machines $235,000,000
Port security grants 20,000,000
Passenger screener hiring, training, and related costs 280,000,000

No funding has been provided in this Act to hire additional staff, particularly aviation screeners, or to otherwise supplement previously appropriated funding for TSA staffing requirements.

FISCAL YEAR 2003 FUNDING REQUIREMENTS

By May 1, 2003, the conferees direct the Administrator of the Transportation Security Administration to submit a budget execution plan, approved by the Office of Management and Budget, detailing spending levels, by budget line item, program, project, and activity. The conferees expect the budget line items included in this plan to be the same line items informally submitted by TSA to the Committees on Appropriations in July of 2002 and modified in December of 2002. In developing this budget execution plan, TSA should detail the following: (1) fiscal year 2003 obligations by budget line item as of March 31, 2003, (2) TSA's fiscal year 2003 yearly obligation estimates by budget line item, (3) how the yearly estimates by budget line item were derived, and (4) a detailed explanation of why and how these costs have changed since the July and December 2003 budget documents. The conferees expect all programs and activities specifically funded by Congress either in bill or report language in Public Laws 107-206 and 108-7 to be fully funded in this plan. For those items that TSA believes should be reprogrammed, a detailed explanation of why this reprogramming should occur must accompany the plan. TSA shall follow the reprogramming guidelines contained in this Act.

PORT SECURITY GRANTS

The conferees are aware of approximately $1,000,000,000 in port security requirements in the first year and $4,400,000,000 over 10 years, as estimated by the Coast Guard. To date, $368,000,000 has been appropriated to these efforts and an additional $20,000,000 is provided in this Act. However, TSA has only issued port security grants totaling $93,000,000. The conferees direct TSA to issue grants for the remainder of these previous appropriations no later than 60 days after enactment of this Act.

TRUCKING INDUSTRY GRANTS

Of the funds provided under Public Law 108-7 for trucking industry grants, the conferees direct that $20,000,000 (as adjusted by section 601 of Division N of Public Law 108-7) be used to fund nation-wide trucking security and safety initiative utilizing the existing joint industry-government Highway Watch program.

OPERATION SAFE COMMERCE

Of the funds provided under Public Law 108-7 for Maritime and Land Security, the conferees direct that $30,000,000 (as adjusted by section 601 of Division N of Public Law 108-7) be used for Operation Safe Commerce.

FEDERAL LAW ENFORCEMENT TRAINING CENTER

OPERATING EXPENSES

The conferees agree to provide $2,000,000 for additional expenses of the Federal Law Enforcement Training Center as proposed by the House. Funds shall remain available until expended, but may not be obligated until 15 days after notification of the Committees on Appropriations.

OFFICE FOR DOMESTIC PREPAREDNESS

The conferees agree to provide $2,230,000,000 for the Office for Domestic Preparedness (ODP) instead of $2,200,000,000 as proposed by the House and the Senate. The conferees agree that none of these funds may be used for construction activities and further agree that these funds shall be used for purposes consistent with State domestic preparedness plans.

Within the amounts provided, the conferees include $1,300,000,000 for a formula grant program to be allocated to the States subject to Section 1014 of Public Law 107-56. The conferees agree that funds shall be disbursed within 60 days of enactment of this Act; the conferees further agree that not less than 80 percent of funding provided to each State shall be transferred to local governments within 45 days of the State's receipt of funds.

An additional $200,000,000 is provided for critical infrastructure formula-based grants subject to Section 1014(c)(3) of Public Law 107-56. The conferees agree that funds shall be disbursed within 60 days of enactment of this Act; the conferees further agree that not less than 50 percent of funding provided to each State shall be transferred to local governments within 45 days of the State's receipt of funds.

The conferees also provide $700,000,000 for discretionary grants to high-threat, high-density urban areas, and for the protection of critical infrastructure. The conferees expect that ODP will allocate these funds no later than 30 days after enactment of this Act. The conferees also agree that no less than 80 percent of discretionary grants provided to any State shall be transferred to local governments within 45 days of the State's receipt of funds. In making grants to State and local governments, the conferees further direct the Secretary of Homeland Security to take into consideration credible threat, vulnerability, the presence of infrastructure of national importance, population, and identified needs of public agencies. Grants may be made to single or multiple jurisdictions in the same urban area.

Finally, the conferees agree to provide $30,000,000 for direct technical assistance to States.

The conferees agree that overtime expenses incurred and related to heightened security levels are an eligible use of funds provided for both critical infrastructure grants and discretionary grants to high-threat, high-density urban areas and for the protection of critical infrastructure.

The conferees direct ODP to submit a plan, no later than 120 days after enactment of this Act, on overtime accountability. This report shall include how overtime costs in direct support of increased security can be properly measured at the State and local government levels and a plan for reimbursement of these expenses.

In addition to reports to be submitted to the Committees on Appropriations in accordance with Senate Report 108-33, the conferees further direct the Department to provide a report that lists all federal programs within the Department of Homeland Security that make grants to States and/or local governments, including those for emergency preparedness and support for first responders, public health agencies, local law enforcement agencies and other security providers. The report shall be submitted by May 30, 2003 and include: (1) the amount of funds appropriated for each of fiscal years 2002 and 2003; (2) the amount of appropriated funds that have been obligated by the Department of Homeland Security and the grantee and expended by the grantee; (3) the point of contact in the federal government responsible for responding to inquiries on the status of grant funds; and (4) the administrative or other impediments that may delay the obligation of grant funds.

UNITED STATES COAST GUARD

OPERATING EXPENSES

The conferees agree to provide a total of $228,000,000 for additional operating expenses of the Coast Guard instead of $230,000,000 as proposed by the House and $580,000,000 as proposed by the Senate. In addition to the $228,000,000 provided under this heading, $400,000,000 is provided to the Coast Guard by transfer from the Department of Defense. Funds shall remain available until expended, but may not be obligated until 15 days after notification of the Committees on Appropriations. Funds are provided as follows:

Deployment of Coast Guard personnel and assets overseas $180,000,000
Military outload security 220,000,000
Targeted increase to homeland security activities related to Operation Liberty Shield 180,000,000
Port security assessments 38,000,000
Merchant mariners documentation 10,000,000

The conferees expect that the funding provided under this act will allow the Coast Guard to complete port security assessments at all tier one strategic ports.

SCIENCE AND TECHNOLOGY

The conferees direct the Under Secretary for Science and Technology to prepare a program plan for the development of an anti-missile device for commercial aircraft. The plan should identify the process for delivery and certification of a prototype and the proposed cost and schedule for such an activity. The report should be provided to the Committees on Appropriations within 30 days of enactment of this Act.

EMERGENCY PREPAREDNESS AND RESPONSE

OPERATING EXPENSES

The conferees agree to provide $45,000,000 as proposed by the House. Funds shall remain available until expended, but may not be obligated until 15 days after notification of the Committees on Appropriations.

EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

The conferees agree to provide $54,750,000 for the Emergency Management Planning and Assistance account for interoperable communications, instead of $109,500,000 as proposed by the Senate. Funds may not be obligated until 15 days after notification of the Committees on Appropriations.

INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

OPERATING EXPENSES

The conferees agree to provide no funds for the Information Analysis and Infrastructure Protection Directorate, instead of $10,000,000 as proposed by the House.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 1601. The conferees agree to modify a provision proposed by the House providing reprogramming guidelines for the Department of Homeland Security.

Section 1601 requires the Department of Homeland Security to promptly and fully inform the Committees on Appropriations when a change in program execution and funding is required during the fiscal year. To assist the Department in this effort, the following guidance is provided for reprogramming during fiscal year 2003.

A reprogramming shall be submitted for any action that (1) creates a new program; (2) eliminates a program, project or activity; (3) increases funds for any program, project, or activity for which funds have been denied or restricted by Congress; or (4) proposes to use funds directed for a specific activity in an appropriations Act or accompanying reports of the House and Senate Committees on Appropriations, or accompanying conference reports and joint explanatory statements of the committee of conference, for a different purpose.

A reprogramming shall be submitted when any Departmental action results in the movement of funds to or from any program, project, or activity in excess of $5,000,000 or 10 percent, whichever is less.

The Department must notify the Committees on Appropriations on both Houses of Congress 15 days in advance of such reprogrammings. The Department must also notify the Committees at the end of each quarter during the fiscal year of all reprogramming actions that have been completed during that quarter involving less then $5,000,000 or 10 percent.

Clearly stated and detailed documentation presenting justification for the reprogramming shall accompany each request. Additionally, each request shall include a declaration that, as of the date of the request, none of the funds included in the request have been obligated, and none will be obligated, until the Committees on Appropriations have approved the request.

For purposes of this section, the term `program, project, and activity' shall mean any item for which a dollar amount is contained in an appropriations Act (including joint resolutions providing continuing appropriations) or accompanying reports of the House and Senate Committees on Appropriations, or accompanying conference reports and joint explanatory statement of the committee of conference.

The conferees further expect the Department to comply with directives in the statements of managers accompanying any appropriations conference report relative to appropriations for programs, projects and activities transferred to the Department.

Sec. 1602. The conferees agree to include a provision proposed by the Senate allowing the Under Secretary of Homeland Security for Border and Transportation Security to issue letters of intent to airports to provide assistance for the installation of explosive detection systems and requiring status reports.

Sec. 1603. The conferees agree to include a provision proposed by the Senate allowing the Bureau of Customs and Border Protection to accept donations of body armor for United States Border Patrol agents and Border Patrol canines.

Senate Bill Sec. 601. --The conferees agree not to include a provision proposed by the Senate requiring inspection of all commercial motor vehicles entering the United States through specific ports of entry. This issue has been addressed in the Bureau of Customs and Border Protection section of the statement of managers.

CHAPTER 7

DEPARTMENT OF HEALTH AND HUMAN SERVICES

CENTERS FOR DISEASE CONTROL AND PREVENTION

DISEASE CONTROL, RESEARCH, AND TRAINING

The conference agreement includes $16,000,000 for costs associated with the prevention and control of Severe Acute Respiratory Syndrome (SARS) as proposed by the House. The Senate had provided the same amount within the Office of the Secretary.

The conferees understand that sufficient funds were made available to the CDC for injury prevention and control to maintain support for activities to better understand the scope of child abuse and neglect and its consequences at the FY2002 level.

OFFICE OF THE SECRETARY

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

The conference agreement includes $100,000,000 within the Public Health and Social Services Emergency Fund for the Centers for Disease Control and Prevention to assist State and local health authorities with the costs associated with the civilian smallpox vaccination program, instead of $94,000,000 as proposed by the House. The Senate had provided $105,000,000 for this purpose within the Office of the Secretary. Because many State and local health departments have already devoted substantial resources to the smallpox vaccination program, often at the expense of other important public health and bioterrorism preparedness tasks, the conferees intend that these funds be available to assist health departments in covering costs already incurred as well as to assist with costs that will be incurred in the future.

In addition, the conference agreement includes $42,000,000 within the Public Health and Social Services Emergency Fund for costs associated with compensating individuals with injuries resulting from smallpox vaccine and related countermeasures, instead of $50,000,000 as proposed by the House and $35,000,000 as proposed by the Senate. The funds are made available subject to the enactment of authorizing legislation and remain available until expended as proposed by both the House and Senate. The conferees intend the funds to be used to provide compensation under the rules and conditions specified in legislation authorizing a smallpox vaccine compensation program.

SMALLPOX AND OTHER BIOTERRORISM INOCULATION ACTIVITIES

The conference agreement does not include funds within this new account to support grants to States for smallpox and other bioterrorism inoculation activities as proposed by the Senate. Funds for this purpose have been provided within the Public Health and Social Services Emergency Fund account as proposed by the House.

SEVERE ACUTE RESPIRATORY SYNDROME (SARS)

The conference agreement does not include funds within this new account to support costs associated with the prevention and control of Severe Acute Respiratory Syndrome as proposed by the Senate. Funds for this purpose have been provided within the Centers for Disease Control and Prevention account as proposed by the House.

GENERAL PROVISION

REPATRIATION

Section 1701 of the conference agreement includes a provision proposed by the Administration and included in both the House and Senate bills that removes, for fiscal year 2003, the $1,000,000 statutory cap included in the Social Security Act on funds used to provide assistance to U.S. citizens and their dependents returning from foreign countries who have been determined by the Department of State to be destitute, mentally ill, or requiring emergency evacuation due to threatened armed conflict, civil strife, or natural disasters.

CHAPTER 8

LEGISLATIVE BRANCH APPROPRIATIONS

HOUSE OF REPRESENTATIVES

SALARIES AND EXPENSES

COMMITTEE EMPLOYEES STANDING COMMITTEES, SPECIAL AND SELECT

Appropriates $11,000,000 for Committee Employees Standing Committees, Special and Select, to fund the Select Committee on Homeland Security authorized by House Resolution 5, adopted January 7, 2003. Inasmuch as this item relates solely to the House, and in accord with the long practice under which each body determines its own housekeeping requirements and the other concurs without intervention, the managers on the part of the Senate, at the request of the managers on the part of the House, have receded to the amendments of the House.

CAPITOL POLICE

GENERAL EXPENSES

Appropriates $37,738,000 for general expenses of the Capitol Police. The conferees note that no part of such amount may be obligated without prior approval of the Committee on Appropriations of the House of Representatives and the Senate.

OFFICE OF COMPLIANCE

SALARIES AND EXPENSES

Appropriates $111,000 to cover contracted services of hearing officers and mediators for the increased number of hearings.

ARCHITECT OF THE CAPITOL

CAPITOL BUILDING

Appropriates $1,100,000 for an emergency egress project.

CAPITOL POWER PLANT

Appropriates $22,679,000, of which $3,900,000 is for high voltage switchgear transformers and $18,779,000 is provided for Phase II of the West Refrigeration Plant Expansion.

CAPITOL POLICE BUILDINGS AND GROUNDS

Appropriates a total of $40,140,000 for the Capitol Police Buildings and Grounds. Of this amount, $14,140,000 is provided to be used, in addition, to previously appropriated fund for the Headquarters requirements. The conferees anticipate that additional funding for construction will be requested in the future through the normal budget process. In addition, the Architect of the Capitol is directed to have the Naval Facilities Command serve as the primary executing agency for this project. A total of $10,000,000 is for the cost of leasing interim space, pending execution of the facilities master plan. The remaining $16,000,000 shall be used to construct the Tactical Training Facility in Cheltenham, Maryland, for the sole use of the United States Capitol Police.

LIBRARY OF CONGRESS

SALARIES AND EXPENSES

Appropriates $5,500,000 for the purchase and installation of a public address system for the Library buildings. The conferees direct procurement and installation of any public address system to conform with any system selected by the United States Capitol Police. The Librarian of Congress, in conjunction with the Chief of the Capitol Police, shall report to the Committees on Appropriations of the House and the Senate no later than June 1, 2003 that the system meets the requirements as specified by the Capitol Police.

CONGRESSIONAL RESEARCH SERVICE

SALARIES AND EXPENSES

Appropriates $1,863,000 for the implementation of the Congressional Research Service's portion of the alternate computer facility.

GENERAL ACCOUNTING OFFICE

SALARIES AND EXPENSES

Appropriates $4,849,000 for the security of GAO facilities and information systems.

GENERAL PROVISIONS, THIS CHAPTER

A general provision is included making a technical correction relative to a Senate item regarding town meeting notices. Inasmuch as this item relates solely to the Senate, and in accord with long practice under which each body determines its own housekeeping requirements and the other concurs without intervention, the managers on the part of the House, at the request of the managers on the part of the Senate, have receded to the Senate.

CHAPTER 9

DEPARTMENT OF DEFENSE

MILITARY CONSTRUCTION

MILITARY CONSTRUCTION, NAVY

The conference agreement includes a proviso, as proposed by the House, which provides project authorization pursuant to section 2802, title 10, United States Code. The Senate did not include a similar provision.

The following project is includes in the account:


------------------------------------------------------------------
Location/installation Project title                          Cost 
------------------------------------------------------------------
Cuba: Guantanamo Bay  JTF Military Commission Complex $48,100,000 
------------------------------------------------------------------

MILITARY CONSTRUCTION, AIR FORCE

The conference agreement includes $152,900,000 for Military Construction, Air Force, instead of $5,100,000 as proposed by the House and $127,400,000 as proposed by the Senate. The conference agreement also includes a proviso, as proposed by the House, which provides project authorization pursuant to section 2802, title 10, United States Code. The Senate did not include a similar provision.

The following projects are included in the account:


--------------------------------------------------------------
Location/installation Project title                      Cost 
--------------------------------------------------------------
Diego Garcia          Explosive Ordnance Pad       $3,200,000 
Classified Location   Millennium Village          110,500,000 
Guam: Andersen AFB    Aircraft Maintenance Hangar  35,500,000 
Worldwide Various     Planning and Design           3,700,000 
Total                                             152,900,000 
--------------------------------------------------------------

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

The conference agreement includes $1,800,000 for `Family Housing Operation and Maintenance, Air Force,' as proposed by the House instead of $2,000,000 as proposed by the Senate. The funding is provided for the following purpose:


--------------------------------------------------------
Location/installation Project title                Cost 
--------------------------------------------------------
Guam: Andersen AFB    Family Housing Repairs $1,800,000 
--------------------------------------------------------

GENERAL PROVISIONS--THIS CHAPTER

This chapter contains two provisions.

The conferees agree to provide authority for the Department of Defense (DOD) to expend up to $150,000,000 of funds from the Act for military construction, not otherwise authorized by law, which is certified necessary to support the war on terrorism or operations in Iraq. Section 1901 establishes guidelines for transferring funds from other accounts into the contingency construction account under the auspices of section 2804 of title 10. The provision creates a notification system that informs Congress of the transfer and justifies the need for the project without slowing down the obligation of funds for urgent requirements. The provision clarifies the definition of military construction to preclude interpretations that would permit the expenditure of inappropriate funds for military construction purposes.

Approximately $750,000,000 appropriated to operation and maintenance accounts has been obligated for construction activities supporting the global war on terrorism and operations in Iraq. Funds for these projects have been expended without providing notice to Congress despite repeated requests for information by both House and Senate Appropriations Committees and House and Senate Armed Services Committees and as required by law.

Some of these projects are, by definition, military construction projects. Under title 10, chapter 169, military construction projects require congressional authorization and appropriation before funds can be obligated. Exceptions exist but are limited. Admittedly, the statutorily-mandated military construction process is cumbersome and can be slow. Another complication is the lack of a dedicated source of funding for contingency construction needs. These problems impede timely response to urgent requirements of armed conflict.

To circumvent these obstacles, DOD created a class of construction activities for which it deemed operation and maintenance funds could be expended. Effectively, without benefit of legal authority or regulation, the statutory definition of `military construction' was obviated for certain types of construction projects. Formalized in a memorandum issued by the Under Secretary of Defense/Comptroller on February 27, 2003, DOD purported to establish a `practice of expending operation and maintenance appropriations for construction activities--apart from those projects for which [these] appropriations are available under Title 10, United States Code, Chapter 169--under narrowly limited conditions.'

DOD argues that long-standing practice enables it to utilize this legal construct under certain circumstances despite its effect of vitiating and/or amending the underlying statute. Furthermore, DOD asserts that if Congress opposed the practice, then Congress would amend the law. The conferees disagree with this pronouncement, which effectively obviates the law and turns an alleged practice into de facto law. Even more troubling to the conferees is the lack of information and/or notification to Congress about this practice despite repeated requests.

This provision is narrowly tailored to affect only those military construction projects that have been construed by the February 27, 2003, memorandum to be operation and maintenance construction. The provision neither modifies current law regarding the use of operation and maintenance funds nor does it change the threshold amounts for operation and maintenance or unspecified minor construction. The provisions are not intended to, nor do they, hamstring the commanders in the field who need to execute projects quickly and efficiently. The conferees have been assured that the authorization committees will investigate this matter further and seek to amend the law to prevent future actions of this kind.

Section 1902 provides the Secretary of the Army with authority to accept funds from the State of Utah to extend a runway at Michael Army Airfield, Dugway Proving Ground, Utah.

CHAPTER 10

DEPARTMENT OF TRANSPORTATION

MARITIME ADMINISTRATION

MARITIME GUARANTEED LOAN (TITLE XI) PROGRAM ACCOUNT

The conference agreement appropriates $25,000,000 instead of $50,000,000 as proposed by the Senate, for the cost of guaranteed loans under the Maritime Guaranteed Loan (title XI) program. As proposed by the Senate, such funds are to remain available until September 30, 2005. The House bill contained no similar appropriation. The bill specifies that none of these funds may be obligated until the House and Senate Committees on Appropriations receive a certification from the Department of Transportation Inspector General that the Maritime Administration has adopted and is implementing the recommendations of report #CR-2003-031 to his satisfaction. The Conferees further direct the Maritime Administration to submit a written report to the House and Senate Committees on Appropriations on the status of implementation of these recommendations no later than June 1, 2003. It is expected that the Maritime Administration will work closely with the Secretary of Defense to ensure that priority is given to vessels that not only provide commercial viability, but also exhibit military utility, such as tank vessels capable of transporting refined product as a business commodity and jet fuel in time of war or roll-on/roll-off vessels capable of carrying automobiles during peacetime and light military vehicles in time of armed conflict.

TITLE II--MISCELLANEOUS AND TECHNICAL APPROPRIATIONS

CHAPTER 1

SUBCOMMITTEE ON AGRICULTURE, RURAL DEVELOPMENT, AND RELATED AGENCIES

GENERAL PROVISIONS

Senate Section 101- The conference agreement (Section 2106) includes certain provisions related to technical assistance for conservation programs.

Senate Section 102- The conference agreement does not include bill language proposed by the Senate establishing a statutory reporting requirement. The conferees direct that not later than 180 days after the date of enactment of this Act, the Secretary of Agriculture (in coordination with the Administrator of the Agency for International Development) shall submit to the Committee on Agriculture of the House of Representatives, the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committees on Appropriations, a report that describes the policy of the Secretary with respect to the Bill Emerson Humanitarian Trust. This report shall include: whether that policy includes an intent to replenish the trust; the means by which the Secretary proposes to ensure that the United States retains the long-term capability to respond to international food shortages; and whether, and to what extent, other food aid programs conducted by the Secretary and the Administrator will be part of that strategy.

Senate Section 201(a)- The conference agreement (Section 2101) includes language regarding a USDA task force.

Senate Section 201(b)- The conference agreement does not include language regarding ginseng labeling requirements.

Senate Section 201(c)- The conference agreement (Section 2102) includes language regarding certain losses in New Mexico.

Senate Section 201(d)- The conference agreement does not include language regarding dairy provisions.

Senate Section 201(e)- The conference agreement (Section 2103) includes language regarding the Livestock Compensation Program.

Senate Section 202- The conference agreement (Section 2104) includes language regarding organically produced feed.

Senate Section 203- The conference agreement (Section 2105) includes language regarding wild seafood.

CHAPTER 2

DEPARTMENT OF COMMERCE AND RELATED AGENCIES

RELATED AGENCIES

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

EUROPEAN COMMUNITIES MUSIC LICENSING DISPUTE

The conference agreement includes $3,300,000 for a one-time only, lump-sum payment of the European Communities to cover a three-year period for nullification or impairment from Section 110(5) of the U.S. Copyright Act.

DEPARTMENT OF COMMERCE

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

PROCUREMENT, ACQUISITION AND CONSTRUCTION

The conference agreement includes $65,000,000 for the costs of weather satellite systems, including $41,000,000 or geostationary systems and $24,000,000 for polar orbiting systems.

RELATED AGENCIES

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

SALARIES AND EXPENSES

The conference agreement includes $15,000,000 for the salaries and expenses of the Equal Employment Opportunity Commission (EEOC) for fiscal year 2003. The conferees expect the EEOC to use these funds to avoid furloughs during fiscal year 2003. The EEOC may use funds provided to pursue employee buyouts, as authorized by Public Law 107-296.

The conferees are concerned about the lack of sound managerial and fiscal practices that resulted in the EEOC's shortfall in fiscal year 2003. It is troubling that the Commission's shortfall was not uncovered until after a quarter of the fiscal year had transpired.

The conferees direct the EEOC to submit quarterly reports to the Committees on Appropriations, including projected and actual spending and staffing levels. This information will allow the Committees to better understand EEOC's fluctuations in cost and staff. This data will also assist the EEOC in making more accurate estimates during the budget formulation process or, at a minimum, making adjustments to the budget request prior to the commencement of the fiscal year.

NATIONAL COMMISSION ON TERRORIST ATTACKS UPON THE UNITED STATES

SALARIES AND EXPENSES

The conference agreement includes $11,000,000 for the Commission, as described in the Senate report.

GENERAL PROVISION--THIS CHAPTER

The conference agreement includes language amending a provision of law regarding fisheries capacity reduction programs, as proposed in the Senate bill.

CHAPTER 3

SUBCOMMITTEE ON DISTRICT OF COLUMBIA

DISTRICT OF COLUMBIA FUNDS

OPERATING EXPENSES

DIVISION OF EXPENSES

On February 20, 2003, the District of Columbia announced additional fiscal year 2003 budget pressures totaling $128,000,000 resulting from $52,500,000 in lower estimated revenues and $75,500,000 in higher estimated operating costs. A revised outlook on March 10, 2003 increased the budget deficit to $133,567,000. On March 31, 2003, the Council of the District of Columbia enacted the Fiscal Year 2003 Supplemental Budget Request Emergency Act of 2003 to close this budget gap. This Chapter of the conference agreement provides the necessary Congressional action to balance the District's budget. The conferees expect the Chief Financial Officer of the District of Columbia to submit a final accounting of all actions taken to close the budget gap no later than May 5, 2003.

GOVERNMENTAL DIRECTION AND SUPPORT

(INCLUDING RESCISSIONS)

The conferees rescind $8,752,000 from Governmental Direction and Support, instead of $9,358,000 as proposed by the Senate. Included in this amount is a rescission of $8,655,000 from local funds and $97,000 from other funds. The House bill contained no similar provision. These funds are attributable to savings associated with the reduction in risk management functions within the Office of the Corporation Counsel, a District-wide hiring freeze, and a reduction of telecommunications costs and contractual obligation savings within various agencies.

The conferees authorize the District to expend additional other-type revenues with the understanding that these funds will only be used for the purposes for which they are designated.

ECONOMIC DEVELOPMENT AND REGULATION

(INCLUDING RESCISSIONS)

The conferees provide a net increase of $13,428,000 for Economic Development and Regulation, instead of $14,998,000 as proposed by the Senate. Included in this amount are a rescission of $1,282,000 from local funds and an increase of $14,710,000 from other funds. The House bill contained no similar provision. The additional funds are attributable to increased costs associated with the Summer Youth Program, the Home Purchasing Assistance Program, the Multi-family Rehabilitation Program, the Relocation Program and Workers Compensation Fund, and the Public Charter School Revolving Fund and Credit Enhancement Fund. The rescission is attributable to reducing various Department of Housing and Community Development programs, the suspension of the Net 200 Partnership Program, and savings associated with a District-wide hiring freeze.

The conferees authorize the District to expend additional other-type revenues with the understanding that these funds will only be used for the purpose for which they are designated.

PUBLIC SAFETY AND JUSTICE

The conferees provide an increase of $11,462,000 in local funds for Public Safety and Justice instead of $10,422,000 as proposed by the Senate. The House bill contained no similar provision. These funds are attributable to increased costs associated with additional overtime for the Metropolitan Police Department, the Department of Corrections, and the Fire and Emergency Management Agency.

PUBLIC EDUCATION SYSTEM

(INCLUDING RESCISSIONS)

The Conferees rescind $11,435,000 from the Public Education System instead of $11,667,000 as proposed by the Senate. Included in this amount is a rescission of $13,546,000 from local funds and an additional amount of $2,111,000 from other funds. The House bill contained no similar provision. This funding is to be distributed as follows: and increase of $2,029,000 for the District of Columbia Public Schools; a rescission of $181,000 from the State Education Office from savings attributable to a District-wide hiring freeze; a rescission of $12,000,000 from the District of Columbia Public Charter Schools from savings attributable to a lower than projected student enrollment; a rescission of $1,040,000 from the University of the District of Columbia from savings attributable to a District-wide hiring freeze; and a rescission of $237,000 from the District of Columbia Public Libraries and $6,000 from the Commission on the Arts and Humanities from savings attributable to reductions made in the Arts project program.

The conferees do not include language proposed by the Senate to require that not less than $3,000,000 of the $12,000,000 rescinded from the District of Columbia Public Charter Schools be used for providing adequate charter school facilities and educational programming in public charter schools. The House bill contained no similar provision.

The conferees authorize the District to expend additional other-type revenues with the understanding that these funds will only be used for the purposes for which they are designated.

HUMAN SUPPORT SERVICES

(INCLUDING RESCISSION)

The conferees provide a net increase of $30,258,000 for Human Support Services instead of $28,278,000 as proposed by the Senate. Included in this amount are an additional amount of $34,292,000 from local funds and a rescission of $4,034,000 from other funds. The House bill contained no similar provision. The additional funds are attributable to an increase in Health Care Safety Net medical claims, higher Medicaid costs at nursing facilities, a Medicaid shortfall for the Youth Service Administration and the Child and Family Services Agency, enhanced court order costs associated with the Mental Retardation and Developmental Disabilities Agency, unbudgeted costs associated with out-of-state tuition for foster care students, increased unemployment compensation funds, and a decrease of TANF surplus funds. The rescission is attributable to savings associated with a District-wide hiring freeze and a reduction of telecommunications costs and contractual obligation savings within various agencies.

The conferees do not include language proposed by the Senate to amend the District of Columbia Appropriations Act, 2003 to delete the earmark for the Interim Disability Assistance Fund. The House bill contained no similar provision.

The conferees include language proposed by the Senate to amend the District of Columbia Appropriations Act, 2003 to increase the amount of local funds to be deposited in the Medicaid and Special Education Reform Fund from $37,500,000 to $74,500,000. The House bill contained no similar provision.

The conferees authorize the District to expend additional other-type revenues with the understanding that these funds will only be used for the purposes for which they are designated.

PUBLIC WORKS

(INCLUDING RESCISSION)

The conferees provide a net increase of $2,420,000 for Public Works instead of $3,107,000 as proposed by the Senate. Included in this amount are a rescission of $8,998,000 from local funds and an additional amount of $11,418,000 from other funds. The House bill contained no similar provision.

The conferees include language proposed by the Senate to extend the availability of $512,000 from other funds for the taxicab revolving loan fund until expended. The House bill contained no similar provision.

The conferees authorize the District to expend additional other-type revenues with the understanding that these funds will only be used for the purposes for which they are designated.

REPAYMENT OF LOANS AND INTEREST

(INCLUDING RESCISSION)

The conferees rescind $2,466,000 from Repayment of Loans and Interest as proposed by the Senate. The House bill contained no similar provision.

WILSON BUILDING

(INCLUDING RESCISSION)

The conferees rescind $700,000 from the Wilson Building. The House and Senate bills contained no similar provision.

WORKFORCE INVESTMENT

(INCLUDING RESCISSION)

The conferees rescind $2,000,000 from Workforce Investment as proposed by the Senate. The House bill contained no similar provision.

NON-DEPARTMENTAL AGENCY

(INCLUDING RESCISSION)

The conferees rescind $5,799,000 from the Non-Departmental Agency as proposed by the Senate. The House bill contained no similar provision.

GENERAL PROVISIONS, THIS CHAPTER

Sec. 2301. The conferees include a modified Senate provision to allow the District of Columbia to use $12,081,000 from funds identified in the fiscal year 2002 Comprehensive Annual Financial Report (CAFR) as the District's undesignated, unreserved fund balance to cover revenue shortfalls. The House bill contained no similar provision.

The CAFR is a government-wide financial statement prepared by the Chief Financial Officer of the District of Columbia. At the close of fiscal year 2002, the total fund balance was $865,328,000. Of this total, $115,327,000 is unreserved, undesignated, and available for expenditure pending appropriation authority. The conferees provide authority to transfer $12,081,000 of these funds to the District of Columbia's operating budget to partially cover the $52,500,000 reduction in revenues that is part of the $133,567,000 budget shortfall.

The conferees note that of the total fund balance amount, $447,431,000 or 52 percent is restricted. These restricted funds may be expended only when established legal prerequisites have been met. It is within this restricted fund balance that the District maintains its congressionally-mandated seven percent emergency and contingency cash reserve of $248,731,000, established under section 450A of the District of Columbia Home Rule Act (Public Law 93-198). The conference agreement allows the District to transfer funds to address revenue shortfalls due to the economic downturn, but does not provide authority for the District to draw upon this restricted portion of the fund balance. Any funds expended from the emergency and contingency cash reserves must be replenished during fiscal year 2004.

Sec. 2302. The conferees include a provision proposed by the Senate to extend the Chief Financial Officer's personnel, procurement, and preparation of fiscal impact statement authorities through September 30, 2004. The House bill contained no similar provision.

Sec. 2303. The conferees include a provision to amend the District of Columbia Appropriations Act, 2003 to allow funds made available to the Friends of Fort Dupont to be used to support the Fort Dupont's Kids on Ice program. The House and Senate bills contained no similar provision.

CHAPTER 4

DEPARTMENT OF THE INTERIOR

UNITED STATES FISH AND WILDLIFE SERVICE

STATE AND TRIBAL WILDLIFE GRANTS

The conference agreement includes a technical correction to the fiscal year 2003 appropriation for State and Tribal Wildlife Grants, correcting a reference to the amount to be deducted for competitive grants to Tribes prior to the distribution of the remaining grant funds. The House and Senate proposed identical language.

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

The conference agreement corrects the amount provided for the Operation of the National Park System in fiscal year 2003 as proposed by the Senate. The agreement adds $9,000,000 for park operations to reflect accurately the fiscal year 2003 conference agreement for this account.

BUREAU OF INDIAN AFFAIRS

CONSTRUCTION

The conference agreement provides for the release of previously appropriated funds for construction of the Ojibwa Indian School in North Dakota as proposed by the Senate. The House had no similar provision.

GENERAL PROVISION, THIS CHAPTER

SEC. 2401. The conference agreement, as proposed by the Senate, modifies section 328 of the Interior and Related Agencies Appropriations Act, 2003, dealing with the processing of grazing permits by the Forest Service. The House had no similar provision.

The managers are concerned that an ambiguity may exist with respect to Section 328 of Division F of Public Law 108-7 concerning grazing permits issued by the Forest Service. This ambiguity may lead to court decisions that are not consistent with Congressional intent. The intent of Section 328, among other things, was that no grazing permit should be invalidated because the Forest Service had not completed the allotment analysis prior to the date listed in a 1996 Forest Service schedule adopted by the agency pursuant to Section 504 of the Recissions Act. Accordingly, this section has been included to remove the clause, `. . . under the authority of Section 504 of the Rescissions Act of 1995 (Public Law 104-19)' from Section 328. The managers reiterate that any Forest Service grazing permit issued to replace a permit that expired after the date for analysis of the allotment in the 1996 schedule is valid even though the allotment analysis may not have been completed by the due date in the 1996 schedule.

This section does not exempt the Forest Service from completing the environmental analysis of grazing allotments on the 1996 Schedule. It simply allows for the continuation of ongoing grazing activities while the required environmental analysis is completed. The managers emphasize that this provision does not prevent the Forest Service from taking appropriate action consistent with agency policies and procedures to address violations of permit terms and conditions.

The conference agreement does not require the Secretary of the Interior to report on her intentions with respect to the sale of 983 acres in Clark County, Nevada as proposed by the Senate.

The conference agreement does not extend the authorization for energy savings performance contracting as proposed by the Senate in section 602 of title VI.

CHAPTER 5

DEPARTMENT OF LABOR

EMPLOYMENT AND TRAINING ADMINISTRATION

TRAINING AND EMPLOYMENT SERVICES

The conference agreement does not include language as proposed by the Senate providing $1,000,000 for the Jobs for America's Graduates program. The House bill did not have a similar provision.

DEPARTMENT OF HEALTH AND HUMAN SERVICES

HEALTH RESOURCES AND SERVICES ADMINISTRATION

HEALTH RESOURCES AND SERVICES

The conference agreement includes Senate bill language making technical corrections to projects funded in the fiscal year 2003 appropriations act. The House bill included almost identical language. In addition to the technical corrections described in the House and Senate reports accompanying the supplemental appropriations bill, the conferees also include the following technical changes to the statement of the managers of the committee of conference accompanying H.J. Res. 2 (Public Law 108-7; House Report 108-10) in the matter in title II of Division G:

--the provision specifying Northwestern Medical Center, St. Albans, Vermont shall be deemed to read as follows: `Missisquoi Valley Union High School District, Swanton, Vermont';

--the provision specifying Springfield Regional Outpatient Cancer Center shall be deemed to read as follows: `Mercy Health Partners, Springfield, Ohio';

--the provision specifying St. John Bosco Clinic, Miami, Florida shall be deemed to read as follows: `Mercy Hospital, Miami, Florida';

--the provision specifying Oklahoma State Department of Health, Oklahoma City, Oklahoma, for a Mississippi-Oklahoma Rural Telemedicine Initiative shall be deemed to read as follows: `Oklahoma State Office of Rural Health'; and

--the provision specifying Iowa Telecare Consortium to develop a disease management demonstration project in Iowa shall be deemed to read as follows: `Iowa Chronic Care Consortium to develop a disease management demonstration project in Iowa'.

The conferees concur in the description in the Senate report of the grant for the Children's Hospital Central California as being in Madera, CA rather than in Fresno, CA as described in the House report.

The conferees intend that the amounts provided will still be subject to the across the board cut of 0.65 percent included in Public Law 108-7.

ADMINISTRATION FOR CHILDREN AND FAMILIES

CHILDREN AND FAMILIES SERVICES PROGRAMS

The conferees concur with language contained in the Senate report that makes a technical correction to a project contained in the statement of managers accompanying H.J. Res. 2.

ADMINISTRATION ON AGING

AGING SERVICES PROGRAMS

The conferees concur with language contained in the Senate report that makes technical corrections to projects contained in the statement of managers accompanying H.J. Res. 2.

OFFICE OF THE SECRETARY

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

The conference agreement includes language making a technical correction to the Public Health and Social Services Emergency Fund as proposed by the Senate. The House bill had included the same correction in section 2003 of Title II.

GENERAL PROVISIONS

Section 2501 of the conference agreement includes a provision making a technical correction to section 207 of the Departments of Labor, Health and Human Services, and Related Agencies Appropriations Act, 2003 (Public Law 108-7, div. G) as proposed by the House. The Senate bill included no similar provision.

Section 2502 of the conference agreement includes a provision making a technical correction to language in Section 215 in title II of the Departments of Labor, Health and Human Services, and Related Agencies Appropriations Act, 2003 (Public Law 108-7, div. G) regarding international health activities as proposed by the House and Senate.

DEPARTMENT OF EDUCATION

SCHOOL IMPROVEMENT PROGRAMS

The conference agreement includes language making technical corrections to the Math and Science Partnerships program and the Troops to Teachers program as proposed by both the House and the Senate. The conference agreement also includes technical corrections to various projects as proposed by the House and the Senate. The conferees intend that the amounts provided will still be subject to the across the board cut of 0.65 percent included in Public Law 108-7.

HIGHER EDUCATION

The conference agreement includes technical corrections to various projects as proposed by the House and the Senate. The agreement also includes a technical correction relating to a project for the University of Southern Maine that was not contained in either House or Senate bills. The conferees intend that the amounts provided will still be subject to the across the board cut of 0.65 percent included in Public Law 108-7.

GENERAL PROVISIONS

Section 2503 of the conference agreement includes language proposed by the Senate amending the Elementary and Secondary Education Act to raise the maximum age of student eligibility in the Advanced Placement program from 17 to 19. The House bill contained no similar provision.

Section 2504 of the conference agreement also includes a provision proposed by the Senate (Title VI, Section 605 of the Senate bill) amending the Elementary and Secondary Education Act to make a technical change to the Alaska Native Equity in Education program. The House bill contained no similar provision.

RELATED AGENCIES

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING EXPENSES

The conference agreement includes a technical correction clarifying the restrictions on providing stipends to certain volunteers as proposed by both the House and the Senate.

CHAPTER 6

SUBCOMMITTEE ON THE LEGISLATIVE BRANCH

Includes two technical corrections related to the `Library of Congress--Salaries and Expenses' of the Legislative Branch Appropriations Act, 2003 (Public Law 108-7, Division H).

Includes a technical correction to Section 1203(a) of the Legislative Branch Appropriations Act, 2003 (Public Law 108-7, Division H).

Includes a provision related to the Capitol Preservation Fund.

CHAPTER 7

DEPARTMENT OF TRANSPORTATION

The conference agreement includes a provision proposed by the House and Senate amending section 336 of division I of Public Law 108-7 by striking `Transportation Management' and inserting `Urbanized'.

The conference agreement includes a provision proposed by the Senate amending section 321 of division I of Public Law 108-7 by: (1) inserting `or underneath' in subsection (q)(2) before `the Class B airspace'; (2) deleting `has sufficient capacity and' in subsection (q)(3) after `Title 49'; and (3) inserting `passenger' in subsection (q)(3) before `delays'. The House bill contained no similar provision.

The conference agreement includes a provision proposed by the House clarifying that amounts made available to carry out sections 1212(k) and 5117(b)(6) of 112 Stat. 107 et seq. shall be used to carry out item number 1278 of the table contained in section 1602 of 112 Stat. 263. The Senate bill contained no similar provision.

The conference agreement includes a provision proposed by the Senate expressing the sense of the Senate regarding the integration of employee groups resulting from the acquisition of Trans World Airlines by American Airlines. The conferees reiterate that this provision expresses the sense of the Senate. The House bill contained no similar provision.

The conference agreement includes a provision proposed by the Senate which states that no provision of this Act may be construed as altering or amending provisions of law requiring the use of privately-owned United States flag commercial vessels for certain transportation purposes. The House bill contained no similar provision.

The conference agreement includes provisions clarifying the eligibility of certain projects funded in Public Law 108-7 and adjusting the funding for projects under `Federal Highway Administration, limitation on administrative expenses' in that bill to conform to the intent of Congress as referenced in the Statement of the Managers accompanying that conference agreement.

The conference agreement includes a provision relating to the use of Federal Transit Administration formula grant operating funds for certain communities that became part of an urbanized area as determined by the 2000 federal decennial census. This provision is similar to statutory changes enacted last year in Public Law 107-232.

The conference agreement includes a provision amending section 41743(c)(4) of title 49, U.S. Code, to provide flexibility in the award of grants under the Small Community Air Service Development Pilot Program. The revision will allow the Department of Transportation to consider grant requests from applicants who are not currently in the program.

The conference agreement includes a provision proposed by the Senate amending section 626 of title VI of division B of Public Law 108-7 by striking the word `previously'. The House bill contained no similar provision.

The conference agreement modifies language proposed by the Senate limiting the use of funds for transportation services provided under section 41106 of title 49. The agreement limits the obligation of funds in this or any other Act for transportation described in section 41106 to air carriers effectively controlled by citizens of the United States. The agreement further provides criteria to make this determination, and specifies that the Secretary of Defense may waive these provisions in certain instances. The agreement further directs the Secretary of Transportation to use the services of an administrative law judge in a formal proceeding to resolve docket number OST-2002-13089. The House bill contained no similar provision.

The conferees direct the Secretary of Transportation to examine the impact that airlines emerging from bankruptcy could have on hub airports as well as the ramifications on airport systems and U.S. capital bond markets. The conferees further direct the Secretary of Transportation to report his findings to the House and Senate Committees on Appropriations no later than thirty days after enactment of this Act.

CHAPTER 8

SUBCOMMITTEE ON VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES

DEPARTMENT OF VETERANS AFFAIRS

DEPARTMENT ADMINISTRATION

GENERAL OPERATING EXPENSES

(INCLUDING TRANSFER OF FUNDS)

The conference agreement includes $100,000,000 for providing medical care and for the evaluation and administration of benefits to veterans returning from the conflict in the Persian Gulf pursuant to 38 U.S.C. 1710(e)(1)(D). The Secretary has the authority to transfer such sums in this paragraph as necessary to medical care.

ADMINISTRATIVE PROVISION

The conference agreement does not include a provision proposed by the House allowing the VA to use funds appropriated in Pub. L. 108-7 for the purpose of creating medical response centers. The Senate did not include a similar provision.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

COMMUNITY PLANNING AND DEVELOPMENT

COMMUNITY DEVELOPMENT FUND

The conference agreement includes modified language similar to language proposed by the Senate, making technical corrections to specific grants funded in prior appropriations Acts. The House bill did not include similar language.

MANAGEMENT AND ADMINISTRATION

SALARIES AND EXPENSES

The conference agreement does not include language proposed by the Senate related to the Chief Financial Officer. The House bill did not include similar language.

INDEPENDENT AGENCIES

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

NATIONAL AND COMMUNITY SERVICE PROGRAMS OPERATING EXPENSES

Appropriates $64,000,000 to the Corporation for National and Community Service (`Corporation') to liquidate prior year obligations as proposed by both the House and the Senate. The conference agreement includes two provisions proposed by the Senate limiting the funds provided under this heading only for liquidation of the prior year obligations and only after the Corporation provides a letter declaring the deficiency pursuant to the Anti deficiency Act and OMB Circular A-11.

The conferees have included a technical correction to Pub. L. 108-7, proposed by both the House and the Senate, regarding funds provided to the Office of the Chief Financial Officer.

ENVIRONMENTAL PROTECTION AGENCY

STATE AND TRIBAL ASSISTANCE GRANTS

The conferees have included language which makes technical corrections to specific grants funded in previous appropriations Acts.

ADMINISTRATIVE PROVISION

The conferees have included language as proposed by the Senate making a technical correction in order to maintain the balance among payers of the maintenance fees as previously established by FIFRA. The language requires the Administrator of EPA to adjust the `maximum annual fee payable' (per-company caps) for pesticide maintenance fees proportional to the increase from the previous maximum collection level of $17,000,000 as set forth in Public Law 107-73 to the newly-established maximum level of $21,500,000 as set forth in Public Law 108-7. The House bill included no similar provision.

NATIONAL SCIENCE FOUNDATION

RESEARCH AND RELATED ACTIVITIES

Amends Pub. L. 108-7 by allowing up to $330,000,000 of previously appropriated funds to be used for the U.S. Polar Research Program as proposed by the Senate. This is an increase of up to $10,000,000 to cover unanticipated costs due to weather. The House did not include a similar provision.

GENERAL PROVISIONS, THIS TITLE

The conferees have not included funding nor legislative language regarding the Waterbury Dam, Vermont, project as proposed by the Senate. The conferees direct the Corps of Engineers to report to Congress within 30 days of enactment of this Act on what is required to address the seepage and stability problems at Waterbury Dam for fiscal year 2004.

TITLE III--COLUMBIA ORBITER MEMORIAL ACT

The conference agreement includes the Columbia Orbiter Memorial Act as proposed by the Senate. The House did not include a similar title.

TITLE IV--AIRLINE-RELATED ASSISTANCE

The conference agreement includes a separate title providing airline-related assistance, as proposed by the Senate. The House bill provided airline-related assistance in Title I, chapter 5 under `Transportation Security Administration.'

DEPARTMENT OF HOMELAND SECURITY

TRANSPORTATION SECURITY ADMINISTRATION

The conference agreement includes an appropriation of $2,395,750,000 for grants to air carriers. Of this appropriation, the first $100,000,000 shall remain available until expended and shall compensate air carriers for the direct costs associated with the strengthening of flight deck doors and locks on aircraft required by the Aviation and Transportation Security Act. The remaining amount, or $2,295,750,000, is for grants to be made by the Transportation Security Administration to U.S. flag air carriers based on the proportional share of expenses incurred related to aviation security each such carrier has paid or collected by the date of enactment of this Act by such air carrier in passenger security and air carrier security fees to the Transportation Security Administration. Air carriers may use these funds for such purposes as each air carrier determines appropriate; however, the conferees intend that the direct assistance to air carriers made available under this heading should be expended, to the greatest extent possible, to address aviation security and should not be used to support non-security related business entities, ventures or activities including, but not limited to, ticket agent ventures.

The Transportation Security Administration may not remit passenger security and air carrier security fees to any airline providing compensation as defined in this Act to the two most highly compensated named executive officers that exceeds the base compensation that such executives received in 2002. The Transportation Security Administration shall not apply any conditions of receiving such assistance to any air carrier that operates aircraft exclusively with 85 seats or less, any Hawaii-based carrier or any carrier that does not operate trans-Pacific or trans-Atlantic flights.

Not later than thirty days after the last disbursement of funds made to airlines, the Transportation Security Administration shall certify that such funds were allocated by air carriers for security related expenses or revenue forgone as a result of meeting Federal security mandates and shall transmit such certification to the Senate Committee on Appropriations, the Senate Committee on Commerce, Science and Transportation, the House of Representatives Committee on Appropriations and the House Committee on Transportation and Infrastructure.

The conference agreement includes a provision that directs the Undersecretary for Border and Transportation Security of the Department of Homeland Security not to impose the fees authorized by section 44940(a) of title 49, U.S.C., during the period beginning June 1, 2003 ending September 30, 2003.

Though the Senate bill proposed appropriations to compensate airports for operating expenses and capital investments related to improvements in aviation security, the conferees have addressed this item in Title I, under Department of Homeland Security.

The conferees not that the additional burden placed upon the Transportation Security Administration in administering these grants is nominal and of limited duration since these payments constitute simple rebates. As such, the conferees direct that the administrative costs associated with this activity to be absorbed within existing staffing levels.

The conference agreement deletes sections 407 and 408 of the Senate bill. The House bill contained no similar provisions. The conferees direct the General Accounting Office to submit a report to the Congress on measures taken by air carriers to reduce costs and to improve their revenues and profits and to strengthen their balance sheets, as well as how the funds provided in this Act were expended by the air carriers to offset operating expenses. As part of this effort, the conferees expect that each carrier receiving assistance under this heading will transmit a plan to the Comptroller General within 90 days of enactment of this Act to reduce that air carrier's annual operating expenses by an amount equal to the greater of 10 percent of that carrier's annual operating expenses or the amount of financial assistance that the carrier has received under this heading.

The conference agreement extends the war risk insurance program under current conditions through the end of fiscal year 2004 as proposed by the Senate. The House bill contained no similar provision.

The conference agreement contains a provision providing an additional 26 weeks of temporary extended unemployment. compensation for displaced airline related workers, as proposed by the Senate. The House bill contained no similar provision.

TITLE V

PANEL TO REVIEW SEXUAL MISCONDUCT ALLEGATIONS AT UNITED STATES AIR FORCE ACADEMY

The conferees agree to amend language in this title, as proposed by the Senate, which establishes a panel to review sexual misconduct allegations at the U.S. Air Force Academy.

TITLE VI--GENERAL PROVISIONS--THIS ACT

The conference agreement includes a provision, as proposed by the House, that limits the availability of funds provided in this Act to the current fiscal year unless provided otherwise in this Act. The Senate bill contained no similar provision.

CONFERENCE TOTAL--WITH COMPARISONS

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

[In thousands of dollars]
Budget estimates of new (obligational) authority, fiscal year 2003 $74,725,028
House bill, fiscal year 2003 77,903,328
Senate bill, fiscal year 2003 77,947,209
Conference agreement, fiscal year 2003 78,459,520
Conference agreement compared with:
Budget estimates of new (obligational) authority, fiscal year 2003 +3,734,492
House bill, fiscal year 2003 +556,192
Senate bill, fiscal year 2003 +512,311

Bill Young,
Ralph Regula,
Jerry Lewis,
Hal Rogers,
Frank Wolf,
Jim Kolbe,
James T. Walsh,
Charles H. Taylor,
David L. Hobson,
Ernest J. Istook, Jr.,
Henry Bonilla,
Joe Knollenberg,
Jack Kingston,
Rodney P. Frelinghuysen,
David Obey,
John P. Murtha,
Norman Dicks,
Martin Olav Sabo,
Alan B. Mollohan,
Marcy Kaptur,
Peter J. Visclosky,
Nita M. Lowey,
Jose E. Serrano,
James P. Moran,
Chet Edwards,

Managers on the Part of the House.
Ted Stevens,
Thad Cochran,
Arlen Specter,
Pete V. Domenici,
Christopher S. Bond,
Mitch McConnell,
Conrad Burns,
Richard Shelby,
Judd Gregg,
Robert F. Bennett,
Ben Nighthorse Campbell,
Larry Craig,
Kay Bailey Hutchison,
Mike DeWine,
Sam Brownback,
Robert C. Byrd,
Daniel K. Inouye,
Patrick J. Leahy,
Tom Harkin,
Barbara A. Mikulski,
Harry Reid,
Herb Kohl,
(except for P.L. 480),
Patty Murray,
Byron L. Dorgan,
Dianne Feinstein,
Dick Durbin,
Tim Johnson,
Mary L. Landrieu,

Managers on the Part of the Senate.



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