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   This joint statement describes the effect of the conference agreement relative to the versions of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act (H.R. 2642) as passed by the House of Representatives and the Senate. References to amounts or language proposed by the House of Representatives or the Senate refer to amounts and language in the House or Senate passed versions of H.R. 2642 or in the accompanying committee reports (House Report 110-186 and Senate Report 110-85).

   The Senate amendment to the text deleted the entire House bill after the enacting clause and inserted the Senate bill. The conference agreement includes a revised bill.

   Matters Addressed by Only One Committee.--The language and allocations set forth in House Report 110-186 and Senate Report 110-85 should be complied with unless specifically addressed to the contrary in the conference report and statement of the managers. Report language included by the House, which is not changed by the report of the Senate or the conference, and Senate report language, which is not changed by the conference is approved by the committee of conference. The statement of the managers, while repeating some report language for emphasis, does not intend to negate the language referred to above unless expressly provided herein. In cases where the House or the Senate have directed the submission of a report, such report is to be submitted to both Houses of Congress.

   TITLE I

   Department of Defense

   ITEMS OF GENERAL INTEREST

   ``Grow the Force''.--The conferees note that the President, in the fiscal year 2008 budget submission to Congress, did not identify individual projects associated with the Administration's $2,820,898,000 ``Grow the Force'' initiative, instead requesting lump sum funding for the initiative. Detailed information on individual projects was not provided by the Army and Marine Corps until weeks after the budget submission. The conferees provide full funding for this initiative, by project, and have identified the ``Grow the Force'' projects in the table at the back of the statement of the managers. The conferees remind the Department that the ``Grow the Force'' projects for which the President requested lump sum funding are part of the regular military construction program and are therefore subject to the same notification and reprogramming requirements that apply to all military construction appropriations.

   Construction Inflation.--The conferees are concerned by the continuing impact of high inflation rates for construction material prices and labor costs. These high rates have made it increasingly difficult for the services and Defense agencies to execute their military construction and family housing construction programs in a timely manner without scope reductions, project cancellations, and reprogramming requests. Given the enormous volume of construction to be completed over the next five years due to BRAC, global rebasing, end-strength increases for the Army and Marine Corps, and numerous smaller initiatives, realistic budgeting for construction inflation is necessary if the quality of life and quality of service for military personnel and their families are to be maintained at a high level. The conferees are dismayed by the failure of the Office of Management and Budget and the Department of Defense to incorporate realistic inflation estimates in the budget submissions, even though the consequences of this failure are predictable. The conferees support and encourage current efforts to more accurately account for regional variations in construction inflation; however, the conferees also believe that such efforts will be of limited value if the overall inflation figure used by the Administration to build the military construction program is unrealistically low. The conferees direct the Department of Defense to report to the Committees on Appropriations of both Houses of Congress on the baseline construction inflation rate incorporated in the fiscal year 2009 military construction and family housing budget request, as well as a justification for that rate, no later than seven days following the submission of that request to Congress.

   Integrated Construction Plans for the ``Grow the Force,'' Global Basing, and Base Realignment and Closure Initiatives.--The conferees remain concerned about the ability of the Department of Defense to effectively coordinate and integrate the significant construction demands of the ``Grow the Force'' initiative with the equally daunting construction programs associated with the Department's global rebasing plan and the 2005 Base Realignment and Closure program, particularly within the short timeframe allotted for the completion of each of these initiatives. The conferees agree that the Secretary of Defense shall submit a separate report to the Committees on Appropriations of both Houses of Congress by January 31, 2008, identifying the installations at which there is any overlap of military construction and/or family housing construction among any or all of the three initiatives. In addition to a detailed list of the projects by installation, the report should include the projected timeline for completing each of the identified projects and the projected timeline for the movement of military personnel associated with the initiatives into the affected installations.

   Government Accountability Office (GAO) Review of Global Defense Posture Report.--The conferees agree that the GAO review of the status of the Defense Department's Global Defense Posture should be submitted to the Committees on Appropriations of both Houses of Congress no later than April 15, 2008.

   Failure to Comply With Report Deadlines.--The conferees note the Department of Defense's failure to comply with deadlines for several reports directed by the Committees on Appropriations of both Houses of Congress. These deadlines have passed without the reports being delivered, or even notice from the Department as to why it has been unable to meet the deadlines. Some of these reports are merely collections of data that are readily available. The conferees find this delay unacceptable. These reports are directed to ensure proper congressional oversight and to inform congressional decisions on the Department's budget requests. The conferees direct the Department to submit all reports directed by House Report 110-186 and Senate Report 110-85 that are currently overdue, or an explanation of why these reports have not been delivered along with the expected date of delivery, no later than seven days after the enactment of this Act. The conferees direct the Department and the services to meet future reporting deadlines. If future deadlines are not met, the Department or service shall submit an explanation for the failure to deliver and the expected date of delivery no later than seven days after the deadline.

   Incrementally Funded Projects.--The conferees note that the Administration requested several large military construction projects that can be incrementally funded, but were instead submitted as large single-year requests, in accordance with a directive from the Office of Management and Budget to the Department of Defense to severely restrict the use of incremental funding for military construction. The Committees on Appropriations of both Houses of Congress have previously notified the Administration that they reserve the prerogative to provide incremental funding where appropriate, in accordance with authorizing legislation. The conferees continue to believe that military construction projects should be fully funded or separated into stand-alone phases when practical. In some cases, however, incremental funding makes fiscal and programmatic sense. The conferees have therefore agreed that the following projects will be incrementally funded: Fuel Storage Facilities, Point Loma, California; Southern Command Headquarters, Miami, Florida; Submarine Drive-in Magnetic Silencing Facility, Pearl Harbor, Hawaii; SOF Operations Facility, Dam Neck Annex, Virginia; Kilo Wharf, Naval Base Guam; and Brigade Operations Support Facility and Brigade Barracks/Community Facility, Vicenza, Italy.

   Guam Master Plan.--The conferees agree that the massive construction program planned to expand the presence of the U.S. military on Guam presents a major challenge to the Department of Defense, and requires a well-planned execution strategy. However, the conferees are concerned that the Senate provision requiring the Secretary of Defense to submit a master plan for Guam by December 29, 2007, does not give the Department adequate time to complete the plan, particularly in view of the ongoing environmental assessments being conducted on Guam. The conferees do not concur with the Senate position and instead direct the Secretary of Defense to submit to the Committees on Appropriations of both Houses of Congress no later than September 15, 2008, a report on the Department's planning efforts for Guam. The report should identify in detail the size and makeup of the U.S. military forces to be located on Guam, the number of dependents expected to accompany those forces, and the infrastructure required to support the troops and their families. The report should also outline the Department's plan to accomplish the projected level of construction associated with the build-up, within the constrained construction capacity of Guam, and the infrastructure required to

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   Military Construction, Army

   (INCLUDING RESCISSION OF FUNDS)

   The conference agreement appropriates $3,950,383,000 for Military Construction, Army, instead of $4,070,959,000 as proposed by the House and $3,928,149,000 as proposed by the Senate. Within this amount, the conference agreement provides $321,983,000 for study, planning, design, architect and engineer services, and host nation support instead of $481,468,000 as proposed by the House and $317,149,000 as proposed by the Senate.

   The conference agreement rescinds $8,690,000 from funds previously appropriated to this account due to bid savings as follows:

   Aviation Maintenance Hangar, Phase I, Fort Rucker, Alabama.--Of the funds provided for planning and design in this account, the conferees direct that $1,513,000 be made available for the design of this facility.

   Chapel Center, Fort Campbell, Kentucky.--Of the funds provided for planning and design in this account, the conferees direct that $450,000 be made available for the design of this facility.

   Component Rebuild Shop, Anniston Depot, Alabama.--Of the funds provided for planning and design in this account, the conferees direct that $800,000 be made available for the design of this facility.

   Emergency Services Center, Fort Belvoir, Virginia.--Of the funds provided for planning and design in this account, the conferees direct that $288,000 be made available for the design of this facility.

   Medical Parking Garage, Fort Bliss, Texas.--Of the funds provided for planning and design in this account, the conferees direct that $1,000,000 be made available for the design of this facility.

   Regional Training Institute, Fort Leonard Wood, Missouri.--Of the funds provided for planning and design in this account, the conferees direct that $500,000 be made available for the design of this facility.

   Sapper Leader Course General Instruction Building, Fort Leonard Wood, Missouri.--Of the funds provided for planning and design in this account, the conferees direct that $360,000 be made available for the design of this facility.

   Training Support Center, Phase I, Fort Eustis, Virginia.--Of the funds provided for planning and design in this account, the conferees direct that $594,000 be made available for the design of this facility.

   Military Construction, Navy and Marine Corps

   (INCLUDING RESCISSIONS OF FUNDS)

   The conference agreement appropriates $2,220,784,000 for Military Construction, Navy and Marine Corps, instead of $2,125,138,000 as proposed by the House and $2,168,315,000 as proposed by the Senate. Within this amount, the conference agreement provides $113,017,000 for study, planning, design, architect and engineer services instead of $110,167,000 as proposed by the House and $115,258,000 as proposed by the Senate.

   The conference agreement rescinds $10,557,000 from funds previously appropriated to this account due to bid savings and unexecuted construction as follows:

   Bachelor Quarters Addition, Naval Station Newport, Rhode Island.--Of the funds provided for planning and design in this account, the conferees direct that $750,000 be made available for the design of this facility.

   Dry Dock #3 Waterfront Support Facility, Portsmouth NSY, Maine.--Of the funds provided for planning and design in this account, the conferees direct that $1,200,000 be made available for the design of this facility.

   Fitness Center, Naval Station Newport, Rhode Island.--Of the funds provided for planning and design in this account, the conferees direct that $900,000 be made available for the design of this facility.

   Military Construction, Air Force

   (INCLUDING RESCISSIONS OF FUNDS)

   The conference agreement appropriates $1,159,747,000 for Military Construction, Air Force, instead of $927,428,000 as proposed by the House and $1,048,518,000 as proposed by the Senate. Within this amount, the conference agreement provides $43,721,000 for study, planning, design, architect and engineer services instead of $51,587,000 as proposed by the House and $64,958,000 as proposed by the Senate.

   The conference agreement rescinds $10,470,000 from funds previously appropriated to this account due to bid savings as follows:

   Joint Security Forces Building, Lackland AFB, Texas.--Of the funds provided for planning and design in this account, the conferees direct that $900,000 be made available for the design of this facility.

   Logistics Readiness Center, 366th Wing, Mountain Home AFB, Idaho.--Of the funds provided for planning and design in this account, the conferees direct that $1,593,000 be made available for the design of this facility.

   Multi-Purpose Education Facility, Little Rock AFB, Arkansas.--Of the funds provided for planning and design in this account, the conferees direct that $882,000 be made available for the design of this facility.

   Runway Paving, Dyess AFB, Texas.--Of the funds provided for planning and design in this account, the conferees direct that $1,710,000 be made available for the design of this facility.

   Security Forces Operations Building, Wright-Patterson AFB, Ohio.--Of the funds provided for planning and design in this account, the conferees direct that $640,000 be made available for the design of this facility.

   Taxiway, Randolph AFB, Texas.--Of the funds provided for planning and design in this account, the conferees direct that $554,000 be made available for the design of this facility.

   Military Construction, Defense-Wide

   (INCLUDING RESCISSION AND TRANSFER OF FUNDS)

   The conference agreement appropriates $1,609,596,000 for Military Construction, Defense-Wide, instead of $1,806,928,000 as proposed by the House and $1,758,755,000 as proposed by the Senate. Within this amount, the conference agreement provides $155,569,000 for study, planning, design, architect and engineer services instead of $154,728,000 as proposed by both the House and the Senate.

   The conference agreement provides $70,000,000 for the Energy Conservation Investment Program as proposed by the House, instead of $85,000,000 as proposed by the Senate. The agreement also provides $5,000,000 for contingency construction, instead of $10,000,000 as proposed by both the House and the Senate.

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   The conference agreement rescinds $10,192,000 from funds previously appropriated to this account as follows:

   Of the funds rescinded from Public Law 110-5, the conference agreement rescinds $7,592,000 from a Missile Defense Agency (MDA) project on Kwajalein Atoll and directs MDA to fund this project using its research, development, testing and evaluation construction authority. The conference agreement also rescinds $2,600,000 from contingency construction in Public Law 110-5. The fiscal year 2007 National Defense Authorization Act authorized a project to replace a fuel truck loading facility on Wake Island. The Department of Defense opted not to execute this project, shifting the funds to the contingency construction sub-account. A cancellation notice for the Wake Island project was not submitted until October 16, 2007 even though Pacific Air Forces had decided to place the island in caretaker status in March 2007. The conferees remind the Department that timely notification of project cancellations is mandatory in accordance with 10 U.S.C. 2853.

   SOF C-130 Fuel Cell and Corrosion Control Hangars, Cannon AFB, New Mexico.--Of the funds provided for planning and design in this account, the conferees direct that $855,000 be made available for the design of this facility.

   SOF CV-22 Simulator Facility, Cannon AFB, New Mexico.--Of the funds provided for planning and design in this account, the conferees direct that $711,000 be made available for the design of this facility.

   Wilford Hall Medical Center, Ambulatory Care Center, Lackland AFB, Texas.--Of the funds provided for planning and design in this account, the conferees direct that $130,000 be made available for the design of this facility.

   Military Construction, Army National Guard

   The conference agreement appropriates $536,656,000 for Military Construction, Army National Guard, instead of $439,291,000 as proposed by the House and $478,836,000 as proposed by the Senate.

   Add/Alter Readiness Center, Hamilton, Alabama.--Of the funds provided for planning and design in this account, the conferees direct that $1,164,000 be made available for the design of this facility.

   Armed Forces Reserve Center/Security Forces Facility, Klamath Falls, Oregon.--Of the funds provided for planning and design in this account, the conferees direct that $1,452,000 be made available for the design of this facility.

   Combined Support Maintenance Facility, Camp Smith, New York.--Of the funds provided for planning and design in this account, the conferees direct that $2,727,000 be made available for the design of this facility.

   Combined Support Maintenance Shop, Camp Lincoln, Illinois.--Of the funds provided for planning and design in this account, the conferees direct that $666,000 be made available for the design of this facility.

   Field Maintenance Shop, Arden Hills, Minnesota.--Of the funds provided for planning and design in this account, the conferees direct that $1,366,000 be made available for the design of this facility.

   Joint Forces Headquarters, New Castle County Air National Guard Base, Delaware.--Of the funds provided for planning and design in this account, the conferees direct that $1,020,000 be made available for the design of this facility.

   Joint Forces Headquarters and Emergency Operations Center, Arden Hills Army Training Site, Minnesota.--Of the funds provided for planning and design in this account, the conferees direct that $3,536,000 be made available for the design of this facility.

   Readiness Center, Cabot, Arkansas.--Of the funds provided for planning and design in this account, the conferees direct that $840,000 be made available for the design of this facility.

   Readiness Center, Dundalk, Maryland.--Of the funds provided for planning and design in this account, the conferees direct that $829,000 be made available for the design of this facility.

   Readiness Center, Ethan Allen Range, Vermont.--Of the funds provided for planning and design in this account, the conferees direct that $792,000 be made available for the design of this facility.

   Readiness Center, Miles City, Montana.--Of the funds provided for planning and design in this account, the conferees direct that $906,000 be made available for the design of this facility.

   Readiness Center, Tacoma, Washington.--Of the funds provided for planning and design in this account, the conferees direct that $152,000 be made available for the design of this facility.

   Readiness Center, The Dalles, Oregon.--Of the funds provided for planning and design in this account, the conferees direct that $960,000 be made available for the design of this facility.

   Readiness Center, Tullahoma, Tennessee.--Of the funds provided for planning and design in this account, the conferees direct that $264,000 be made available for the design of this facility.

   Readiness Center Rehabilitation, Wilkes-Barre, Pennsylvania.--Of the funds provided for planning and design in this account, the conferees direct that $263,000 be made available for the design of this facility.

   Training Facility, Phase V, Camp Gruber, Oklahoma.--Of the funds provided for planning and design in this account, the conferees direct that $2,705,000 be made available for the design of this facility.

   United States Property and Fiscal Office, North Kingstown, Rhode Island.--Of the funds provided for planning and design in this account, the conferees direct that $810,000 be made available for the design of this facility.

   Military Construction, Air National Guard

   The conference agreement appropriates $287,537,000 for Military Construction, Air National Guard, instead of $95,517,000 as proposed by the House and $228,995,000 as proposed by the Senate.

   Replace Squadron Operations and Relocate Security Perimeter, McGhee Tyson Airport, Tennessee.--Of the funds provided for planning and design in this account, the conferees direct that $1,120,000 be made available for the design of this facility.

   Military Construction, Army Reverve

   The conference agreement appropriates $148,133,000 for Military Construction, Army Reserve, instead of $154,684,000 as proposed by the House and $138,424,000 as proposed by the Senate.

   Army Reserve Center, Letterkenny Army Depot, Pennsylvania.--Of the funds provided for planning and design in this account, the conferees direct that $675,000 be made available for the design of this facility.

   Tactical Training Base, Phase I, Fort Dix, New Jersey.--Of the funds provided for planning and design in this account, the conferees direct that $531,000 be made available for the design of this facility.

   Military Construction, Navy Reserve

   The conference agreement appropriates $64,430,000 for Military Construction, Navy Reserve, instead of $69,150,000 as proposed by the House and $59,150,000 as proposed by the Senate.

   Marine Corps Reserve Center, Windy Hill, Georgia.--Of the funds provided for planning and design in this account, the conferees direct that $310,000 be made available for the design of this facility.

   Military Construction, Air Force Reserve

   (INCLUDING RESCISSION OF FUNDS)

   The conference agreement appropriates $28,359,000 for Military Construction, Air Force Reserve, instead of $39,628,000 as proposed by the House and $27,559,000 as proposed by the Senate.

   The conference agreement rescinds $3,069,000 from funds previously appropriated to this account due to a cancelled project as follows:

   Joint Deployment Processing Facility, March ARB, California.--Of the funds provided for planning and design in this account, the conferees direct that $972,000 be made available for the design of this facility.

   Visiting Quarters, Phase I, Pittsburgh Air Reserve Station, Coraopolis, Pennsylvania.--Of the funds provided for planning and design

[Page: H12668]

   North Atlantic Treaty Organization Security Investment Program

   The conference agreement appropriates $201,400,000 for the North Atlantic Treaty Organization Security Investment Program as proposed by both the House and the Senate.

   Missile Defense.--The conferees do not agree to a Senate provision requiring prior approval from the Committees on Appropriations of both Houses of Congress before NATO Security Investment Program (NSIP) funds can be obligated for the construction of missile defense facilities in Poland or the Czech Republic. Instead, the conferees require that the Committees on Appropriations of both Houses of Congress be notified in writing 21 days in advance of the obligation or expenditure of NSIP funds for missile defense studies, planning and design, or other activities related to the construction of missile defense facilities in Poland or the Czech Republic.

   Family Housing Overview

   Incorporation of Additional Information Into Semi-Annual Reports on Family Housing Privatization.--The conferees direct the Department of Defense to include data on the maintenance of family housing units and the contributions of housing privatization entities to the recapitalization accounts of each ongoing family housing privatization project in each future semi-annual progress report on the privatization program.

   Transfer of Funds Between Family Housing Construction and Operation and Maintenance Sub-Accounts.--The conferees direct the services and Defense agencies to notify the Committees on Appropriations of both Houses of Congress within 30 days of a transfer of funds between sub-accounts within the family housing construction and family housing operation and maintenance accounts, if such transfer is in excess of 10 percent of the funds appropriated to the sub-account to which the funds are being transferred. Notifications to the Committees shall indicate the sub-accounts and amounts that are being used to source the transfer.

   Family Housing Construction, Army

   (INCLUDING RESCISSION OF FUNDS)

   The conference agreement appropriates $424,400,000 for Family Housing Construction, Army, instead of $419,400,000 as proposed by both the House and the Senate. The conference agreement rescinds $4,559,000 from funds previously appropriated to this account due to cancelled or reduced projects as follows:

   Family Housing Operation and Maintenance, Army

   The conference agreement appropriates $731,920,000 for Family Housing Operation and Maintenance, Army, instead of $742,920,000 as proposed by both the House and the Senate.

   Family Housing Construction, Navy and Marine Corps

   The conference agreement appropriates $293,129,000 for Family Housing Construction, Navy and Marine Corps, instead of $298,329,000 as proposed by the House and $288,329,000 as proposed by the Senate.

   Family Housing Operation and Maintenance, Navy and Marine Corps

   The conference agreement appropriates $371,404,000 for Family Housing Operation and Maintenance, Navy and Marine Corps as proposed by both the House and the Senate.

   Family Housing Construction, Air Force

   (INCLUDING RESCISSION OF FUNDS)

   The conference agreement appropriates $327,747,000 for Family Housing Construction, Air Force, instead of $362,747,000 as proposed by both the House and the Senate.

   The conference agreement includes a general rescission of $15,000,000 from funds provided to this account by Public Law 108-132, due to savings generated by privatization.

   Family Housing Operation and Maintenance, Air Force

   The conference agreement appropriates $688,335,000 for Family Housing Operation and Maintenance, Air Force as proposed by both the House and the Senate.

   Family Housing Operation and Maintenance, Defense-Wide

   The conference agreement appropriates $48,848,000 for Family Housing Operation and Maintenance, Defense-Wide as proposed by both the House and the Senate.

   Department of Defense Family Housing Improvement Fund

   The conference agreement appropriates $500,000 for the Department of Defense Family Housing Improvement Fund as proposed by both the House and the Senate.

   Chemical Demilitarization Construction, Defense-Wide

   The conference agreement appropriates $104,176,000 for Chemical Demilitarization Construction, Defense-Wide as proposed by the Senate, instead of $86,176,000 as proposed by the House.

   Department of Defense Base Closure Account 1990

   The conference agreement appropriates $295,689,000 for the Department of Defense Base Closure Account 1990, instead of $270,689,000 as proposed by the House and $320,689,000 as proposed by the Senate. The agreement includes an increase of $75,000,000 above the budget request, of which $25,000,000 is provided for the Army and $50,000,000 is provided for the Navy. The conferees direct the Army and Navy to submit an expenditure plan for the additional funds provided no later than 30 days following the enactment of this Act. The conferees further direct the services to notify the Committees on Appropriations of both Houses of Congress 14 days prior to obligating an amount for a site or closure package that exceeds or reduces the amount identified for that site or closure package in the fiscal year 2008 budget submission (plus additional funds as identified by the expenditure plan) by 20 percent or $2,000,000, whichever is less. This direction shall not apply to sites or closure packages for which the requested amount is less than $5,000,000.

   Department of Defense Base Closure Account 2005

   The conference agreement appropriates $8,040,401,000 for the Department of Defense Base Closure Account 2005, instead of $8,174,315,000 as proposed by both the House and the Senate. The decrease from the request is a general reduction. The funds requested for this account, which are appropriated by lump sum, are allocated among 189 BRAC projects earmarked for funding by the President for fiscal year 2008. The requested projects and related planning and design total $6,419,748,000. Additional funding provided in this account is for environmental, operations and maintenance, personnel, and related programs associated with the BRAC process. A detailed listing of the individual projects earmarked for funding by the President is provided in Senate report 110-85, and a list of the President's earmarks by BRAC closure package is provided in House report 110-186.

   The conferees note that it is the practice of the Committees to not add congressional earmarks for BRAC construction because of the complicated and inter-related nature of the BRAC construction program. The conferees reaffirm this policy, and have included no congressionally directed earmarks in the BRAC 2005 account.

   Administrative Provisions

   The conference agreement includes section 101 as proposed by both the House and the Senate limiting the use of funds under a cost-plus-a-fixed-fee contract.

   The conference agreement includes section 102 as proposed by both the House and the Senate allowing the use of construction funds in this title for hire of passenger motor vehicles.

   The conference agreement includes section 103 as proposed by both the House and the Senate allowing the use of construction funds in this title for advances to the Federal Highway Administration for the construction of access roads.

   The conference agreement includes section 104 as proposed by both the House and the Senate prohibiting construction of new bases in the United States without a specific appropriation.

   The conference agreement includes section 105 as proposed by both the House and the Senate limiting the use of funds for the purchase of land or land easements that exceed 100 percent of the value.

   The conference agreement includes section 106 as proposed by both the House and the Senate prohibiting the use of funds, except funds appropriated in this title for that purpose, for family housing.

   The conference agreement includes section 107 as proposed by both the House and the Senate limiting the use of minor construction funds to transfer or relocate activities.

   The conference agreement includes section 108 as proposed by both the House and the Senate prohibiting the procurement of steel unless American producers, fabricators, and manufacturers have been allowed to compete.

   The conference agreement includes section 109 as proposed by both the House and the Senate prohibiting the use of construction and family housing funds available to pay real property taxes in any foreign nation.

   The conference agreement includes section 110 as proposed by both the House and the Senate prohibiting the use of funds to initiate a new installation overseas without prior notification.

   The conference agreement includes section 111 as proposed by the House establishing a

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   The conference agreement includes section 112 as proposed by both the House and the Senate establishing a preference for American contractors in certain locations.

   The conference agreement includes section 113 as proposed by the House requiring congressional notification of military exercises where construction costs exceed $100,000. The Senate bill included a similar provision, but increased the threshold to $750,000.

   The conference agreement includes section 114 as proposed by both the House and the Senate limiting obligations in the last two months of the fiscal year.

   The conference agreement includes section 115 as proposed by both the House and the Senate allowing funds appropriated in prior years for new projects authorized during the current session of Congress.

   The conference agreement includes section 116 as proposed by both the House and the Senate allowing the use of lapsed or expired funds to pay the cost of supervision for any project being completed with lapsed funds.

   The conference agreement includes section 117 as proposed by both the House and the Senate allowing military construction funds to be available for five years.

   The conference agreement modifies section 118 requiring an annual report on actions taken to encourage other nations to assume a greater share of the common defense burden to include a classified report option, if necessary.

   The conference agreement includes section 119 as proposed by both the House and the Senate allowing the transfer of proceeds between BRAC accounts.

   The conference agreement includes section 120 as proposed by both the House and the Senate allowing the transfer of funds from Family Housing Construction accounts to the Family Housing Improvement Fund.

   The conference agreement includes section 121 as proposed by both the House and the Senate requiring congressional notification prior to issuing a solicitation for a contract with the private sector for family housing.

   The conference agreement includes section 122 as proposed by both the House and the Senate allowing transfers to the Homeowners Assistance Fund.

   The conference agreement includes section 123 as proposed by the House limiting the source of operation and maintenance funds for flag and general officer quarters. The Senate bill included a similar provision, but also allowed the use of gift funds.

   The conference agreement includes section 124 as proposed by the House to require the Department of Defense to respond to a question or inquiry, in writing, within 21 days of the request. The Senate bill contained no similar provision.

   The conference agreement includes section 125 as proposed by both the House and the Senate extending the availability of funds in the Ford Island Improvement Fund.

   The conference agreement includes section 126 as proposed by both the House and the Senate placing limitations on the expenditure of funds for projects impacted by BRAC 2005.

   The conference agreement includes section 127 as proposed by the House allowing the transfer of expired funds to the Foreign Currency Fluctuation, Construction, Defense account. The Senate bill contained no similar provision.

   The conference agreement includes section 128 as proposed by the House prohibiting the use of funds for any activity related to the construction of an Outlying Landing Field in Washington County, North Carolina. The Senate bill contained no similar provision.

   The conference agreement does not include a provision as proposed by the House (Sec. 121) limiting the obligation of funds for Partnership for Peace programs. The Senate bill contained no similar provision.

   The conference agreement does not include a provision as proposed by the Senate (Sec. 126) related to reprogramming and notification requirements of ``Grow the Force'' projects. The House bill contained no similar provision. The issue is addressed elsewhere in the statement of the managers.

   TITLE II--DEPARTMENT OF VETERANS AFFAIRS

   Items of General Interest

   Veterans Rights and Feedback.--The conferees are encouraged by the progress the Department has made in providing veterans with the opportunity to offer feedback and obtain assistance through the Internet and the use of toll-free telephone numbers. The conferees agree there are additional measures the Department should take to enhance these programs and to ensure that the Secretary, the Under Secretary for Health, the Under Secretary for Benefits, and the Office of Inspector General are kept informed of the feedback that is provided. The conference agreement includes sufficient funding to ensure the Department is able to provide a clearly marked, direct link that allows veterans to seek assistance and provide feedback on the Veterans Affairs Internet home page; provide a separate toll-free telephone number for the Veterans Health Administration and for the Veterans Benefits Administration that allows a veteran to check on his or her eligibility, seek assistance in obtaining services and/or resolving difficulties, and provide feedback; and provide the Secretary, the Under Secretary for Health, the Under Secretary for Benefits, and the Office of Inspector General with a report that informs them of the types of issues that are being addressed through these systems so that they may more easily identify evolving problems and take early corrective action. The Secretary is directed to report to the Committees on Appropriations of both Houses of Congress by February 1, 2008, on the actions that have been taken to implement this direction. Further, the Under Secretary for Health is directed to report to the Committees on Appropriations of both Houses of Congress by March 3, 2008, on the actions that have been taken to ensure that patient advocate contact information, including a telephone number, is clearly posted in all clinics, on all inpatient wards, and at the entrance of every Veterans Health Administration facility.

   Services for Women Veterans.--The conferees agree more can be done by the Department to refine its programs, services and outreach efforts in order to inform women veterans of their eligibility status and improve their access to services. While the conference agreement does not retain the provision proposed by the House under General Operating Expenses, the conference agreement includes sufficient funds for the operation of both the Advisory Committee on Women Veterans and the Center for Women Veterans. Additionally, the conferees direct the Department to report to the Committees on Appropriations of both Houses of Congress by February 1, 2008, on the actions that have been taken to implement the recommendations of the Advisory Committee on Women Veterans 2006 Report. The conferees further direct the Government Accountability Office (GAO) to report to the Committees on Appropriations of both Houses of Congress by September 1, 2008, an assessment of the adequacy of mental health services provided by the Departments of Veterans Affairs to women veterans.

   Reprogrammings.--The conferees would like to emphasize that reprogrammings permitted by this Act are to be transmitted to Congress in a timely manner.

   Quarterly Financial Report.--The quarterly financial report required by this Act shall contain, at a minimum, both the planned and actual expenditure rates, unobligated balances, potential financial shortfalls, any transfers between major accounts (medical services, medical administration, and medical facilities), and status of any equipment or non-recurring maintenance funds--including whether they have been used to pay for operating expenses. In addition, the service portion of the report will contain, at a minimum, the time required for new patients to get their first appointment, the time required for established patients to get their next appointment, and the number of unique veterans and patients being served. Each report should address data for the system total and for each VISN. Further, the conferees direct that the Department include progress reports on the revision of the International Classification of Diseases--9th Revision (ICD-9) codes with respect to Traumatic Brain Injury.

   Contracting Out.--The conferees note that the competition requirement provided in this Act already applies to the Department of Veterans Affairs. For any function performed by more than ten employees, the Department, like other agencies covered by this competition requirement, must conduct a public-private competition, involving both a Most Efficient Organization plan and a Minimum Cost Differential, before that function can be converted to contractor performance. Unless specifically excluded, the Department of Veterans Affairs would be held to any successor public-private competition requirements included in legislation, as well as 38 U.S.C. 8110(a)(5).

   Veterans Benefits Administration

   COMPENSATION AND PENSIONS

   (INCLUDING TRANSFER OF FUNDS)

   The conference agreement appropriates $41,236,322,000 for Compensation and Pensions as proposed by both the House and the Senate. Of the amount provided, not more than $28,583,000 is to be transferred to General Operating Expenses and Medical Administration for reimbursement of necessary expenses in implementing provisions of title 38.

   READJUSTMENT BENEFITS

   The conference agreement appropriates $3,300,289,000 for Readjustment Benefits as proposed by both the House and the Senate.

   VETERANS INSURANCE AND INDEMNITIES

   The conference agreement appropriates $41,250,000 for Veterans Insurance and Indemnities as proposed by both the House and the Senate.

   VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

   The conference agreement appropriates such sums as may be necessary for costs associated with direct and guaranteed loans for the Veterans Housing Benefit Program Fund Program Account as proposed by both the House and the Senate. The agreement limits obligations for direct loans to not more than $500,000 and provides that $154,562,000 shall be available for administrative expenses. The conference agreement does not include a transfer provision as proposed by the House.

   VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

   (INCLUDING TRANSFER OF FUNDS)

   The conference agreement appropriates $71,000 for the cost of direct loans from the

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   NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

   The conference agreement appropriates $628,000 for administrative expenses of the Native American Veteran Housing Loan Program Account as proposed by both the House and the Senate. The conference agreement does not include a transfer provision or loan limitation as proposed by the House.

   GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS VETERANS PROGRAM ACCOUNT

   The conference agreement provides up to $750,000 of the funds available in General Operating Expenses and Medical Administration to carry out the Guaranteed Transitional Housing Loans for Homeless Veterans Program Account as proposed by both the House and the Senate.

   Veterans Health Administration

   Health Care Sharing Incentive Fund.--The conferees have included bill language to allow a minimum of $15,000,000, to be transferred to the Health Care Sharing Incentive Fund to facilitate collaboration between the Departments of Defense and Veterans Affairs. The conferees agree the most important area for collaboration and investment between these departments is to ensure a seamless transition for our veterans. While the conferees do not intend to preclude the use of this fund for any joint project, the conferees strongly urge that priority for funding be given to the implementation of recommendations of the Report on the President's Commission on Care for America's Returning Wounded Warriors, July 2007. The conferees further urge the Departments of Defense and Veterans Affairs to seek every opportunity to partner to improve the continuity of care for our veterans through joint clinics; joint Centers of Excellence for Post Traumatic Stress Disorder (PTSD) and Traumatic Brain Injury (TBI); joint research and/or treatment; and the development of joint clinical practice guidelines for polytrauma injury, traumatic brain injury (to include diagnostics), blast injury, mental health/PTSD, burn, and amputee patients based on evidence based medicine.

   Traumatic Brain Injury (TBI).--Current data make it difficult for the Department to provide budget information on TBI as a Select Program. The conferees are encouraged to learn the Department is working with the National Center for Health Statistics and the Department of Defense to refine current International Classification of Diseases-9th Revision (ICD-9) codes to better reflect the TBI patient population within the Departments of Defense and Veterans Affairs. The conferees direct the Department of Veterans Affairs to include an update of progress on the revision of the ICD-9 codes for TBI within the quarterly reports provided to Congress during fiscal year 2008. The conferees also direct the Department of Veterans Affairs to include TBI as a Select Program within the Medical Services account in the fiscal year 2009 budget submission and all future budget submissions thereafter.

   Level I Polytrauma Centers and Centers of Excellence on Mental Health and Post Traumatic Stress Disorder (PTSD).--The conferees agree that every effort must be made to ensure that the Level I polytrauma centers and the Centers of Excellence on Mental Health and PTSD are resourced to provide the very best in medical care to our veterans who have suffered multiple trauma injuries or require mental health services. The conference agreement has increased funding within the Veterans Health Administration accounts to ensure that the current Level I polytrauma centers and the Centers of Excellence on Mental Health and PTSD will be fully staffed and operational in fiscal year 2008.

   Credentialing and Privileging in Rural Health Care Facilities.--The conferees are concerned about potential quality of care issues that may exist in rural VA medical facilities, including the qualifications of medical professionals. The conferees direct the Government Accountability Office to assess the standards that are being followed in rural VA hospitals, including the consistency with which VA standards are being applied across urban and rural facilities.

   MEDICAL SERVICES

   (INCLUDING TRANSFER OF FUNDS)

   The conference agreement appropriates $29,104,220,000 for Medical Services, instead of $29,031,400,000 as proposed by the House and $28,979,220,000 as proposed by the Senate. Additionally, the Senate had proposed an additional $125,000,000 in section 230 of the administrative provisions.

   Of the amount provided, $1,350,000,000 is available for obligation until September 30, 2009 as proposed by the Senate, instead of $1,100,000,000 as proposed by the House. The conferees also agree that the Department shall spend not less than $2,900,000,000 for specialty mental health services as proposed by the House and not less than $130,000,000 for the homeless grants and per diem program.

   The conference agreement includes a net increase of $1,936,549,000 above the budget request in order to address shortfalls anticipated in the Department's projection of health care demand and to address the Department's failure to adjust the beneficiary travel reimbursement rate despite consistently rising gasoline prices. The conference agreement includes a 5.5 percent increase for workload and a 4.45 percent increase for inflation which the conferees believe is necessary to ensure that sufficient funding is available to maintain services at their current level. The agreement also includes an additional $125,000,000 to increase the beneficiary travel reimbursement mileage rate to 28.5 cents per mile; an additional $70,000,000 for substance abuse services; an additional $12,500,000 for expanded outpatient services for the blind; an additional $15,000,000 for Vet Centers; and provides sufficient funding to allow for additional personnel for the HUD-Veterans Affairs Supportive Housing Program to address any increase in the number of vouchers offered and directs the Department to increase the number of case workers as necessary to accommodate the increase in vouchers.

   Mental Health and Substance Abuse.--The conferees are concerned mental health and substance abuse services were not sufficiently addressed within the fiscal year 2008 budget submission which includes a reduction in the number of inpatient beds for psychiatric care and an anticipated increase of less than one percent for substance abuse services. The conferees believe these projections are unrealistic and have increased funding within the Medical Services account in order to increase access to substance abuse services; ensure that adequate inpatient psychiatric care is maintained; and to allow the Department to pursue all opportunities to improve access to mental health services for all veterans. To this end, the Department is directed to re-examine the policy for a reduction in psychiatric inpatient care, taking into account the needs of returning Operation Enduring Freedom and Operation Iraqi Freedom (OEF/OIF) veterans and the recommendations of OIG Report: Implementing VHA's Mental Health Strategic Plan Initiatives for Suicide Prevention, May 10, 2007, and is further directed to report to the Committees on Appropriations of both Houses of Congress by February 29, 2008, the findings of this review and what additional resources have been utilized to ensure that adequate inpatient care is available. Further, the conferees direct the Department not to reduce the number of inpatient psychiatric beds at any facility that currently has a waiting list. Additionally, the Department is directed to report to the Committees on Appropriations of both Houses of Congress by February 1, 2008, on its plan to better utilize all opportunities to improve access to mental health services for all veterans. This report should include, but not be limited to, the Department's plan to better utilize the services of the Community Mental Health Centers; implementation of peer training programs; additional fee-basis access to local mental health providers; mobile Vet Centers; and the development of Internet based services like the Network of Care for Mental Health recommended in the President's New Freedom Commission on Mental Health.

   HIV/AIDS Among Veterans.--The conferees concur with the Senate's recommendations on the VA health care system's HIV testing policy guidelines and direct the Department to submit a progress report to the Committees on Appropriations of both Houses of Congress by January 30, 2008.

   Access to Medical Care in Remote Rural Areas.--The conferees direct the Secretary of Veterans Affairs to report to the Committees on Appropriations of both Houses of Congress not later than six months after the date of the enactment of this Act, a description of: the unique challenges and costs faced by veterans in remote rural areas of contiguous and non-contiguous States when obtaining medical services from the Department of Veterans Affairs, and the need to improve access to locally administered care for veterans who reside in remote rural areas. The report should also identify the need to fund alternative sources of medical services in areas where facilities of the Department of Veterans Affairs are not accessible to veterans without leaving such areas; and in cases in which receipt of medical services by a veteran in a facility of the Department requires transportation of such veteran by air due to geographic and infrastructural constraints. The report should also contain an assessment of the potential for increasing local access to medical services for veterans in remote rural areas of contiguous and non-contiguous States through strategic partnerships with other government and local private health care providers.

   MEDICAL ADMINISTRATION

   The conference agreement appropriates $3,517,000,000 for Medical Administration, instead of $3,510,600,000 as proposed by the House and $3,642,000,000 as proposed by the Senate.

   Office of Rural Health.--The conferees agree the Office of Rural Health is vital to ensuring that equal access to health care is provided to all of our returning Reserve and National Guard veterans. While the conferees do not earmark a specific amount for the office, the conferees have provided sufficient funding within Medical Administration to ensure a robust Office of Rural Health. The conferees strongly encourage the Department to make full use of this office and direct the Secretary to submit a report to the Committees on Appropriations of both Houses of Congress on the actions that have been taken to improve access to health in rural areas by February 1, 2008.

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   MEDICAL FACILITIES

   The conference agreement appropriates $4,100,000,000 for Medical Facilities as proposed by the House, instead of $4,092,000,000 as proposed by the Senate. The agreement also includes language allowing $350,000,000 of the funds to be available until September 30, 2009, as proposed by the Senate, instead of $250,000,000 as proposed by the House. The conference agreement further specifies that $325,000,000 for non-recurring maintenance shall be allocated in a manner not subject to the Veterans Equitable Resource Allocation model, instead of $300,000,000 as proposed by the House and $350,000,000 as proposed by the Senate. The conferees are in agreement that the funding provided above the budget request shall be used to address both facility condition assessment deficiencies and other essential requirements.

   Non-Recurring Maintenance.--The conferees remain concerned that the Department is not adequately addressing specific issues regarding obligation of non-recurring maintenance (NRM) funds raised in a May 16, 2007, GAO report. The conferees fully expect that by fiscal year 2009 the Department will be obligating not more than twenty percent of its annual allocation of NRM funds in the last two months of the fiscal year. By May 16, 2008, the Department shall submit to the Committees on Appropriations of both Houses of Congress a report outlining these management objectives and a business plan to reach that goal.

   Community Based Outpatient Clinics.--The conferees direct the Department to provide the Committees on Appropriations of both Houses of Congress with a report on the actual number of Community Based Outpatient Clinics (CBOC) opened in fiscal year 2007 and the planned CBOC activations in fiscal year 2008. In addition, the conferees further direct the Department to examine the need for, and report on the feasibility of and/or plans for clinics in the following locations: El Centro, California; rural Colorado; Brandon, Florida; Statesboro, Georgia; Belleville, Illinois; Moline, Illinois; Whiteside County, Illinois; Plymouth, Massachusetts; Dover-Foxcroft, Maine; Houlton, Maine; Lewiston-Auburn, Maine; Plattsburg, New York; Riverhead, New York; Southeastern Pennsylvania; Port Angeles, Washington; Wenatchee, Washington; Green Bay, Wisconsin; and Lynchburg, Virginia.

   MEDICAL AND PROSTHETIC RESEARCH

   The conference agreement appropriates $480,000,000 for Medical and Prosthetic Research as proposed by the House, instead of $500,000,000 as proposed by the Senate.

   National Cemetery Administration

   The conference agreement appropriates $195,000,000 for the National Cemetery Administration, instead of $170,000,000 as proposed by the House and $217,709,000 as proposed by the Senate. Of the amount provided, $20,000,000 is available until September 30, 2009, instead of $7,800,000 as proposed by the House and $25,000,000 as proposed by the Senate. The amount provided includes $900,000 from the Information Technology Systems account which was erroneously transferred during the recent reorganization of information technology programs.

   The conferees have provided $28,191,000 in additional funding for the National Cemetery Administration to correct gravesite deficiencies at VA's national cemeteries, including those identified in the 2002 Millennium Act report to Congress. These repairs include gravesite renovation projects to replace turf, repair sunken graves, and raise, realign and clean headstones.

   Departmental Administration

   GENERAL OPERATING EXPENSES

   The conference agreement appropriates $1,605,000,000 for General Operating Expenses, instead of $1,598,500,000 as proposed by the House and $1,612,031,000 as proposed by the Senate. The conference agreement provides not less than $1,327,001,000 for the Veterans Benefits Administration, instead of $1,324,957,000 as proposed by the House and $1,329,044,000 as proposed by the Senate. Of the amount provided, $75,000,000 is available for obligation until September 30, 2009, as proposed by both the House and the Senate.

   The agreement also provides for a limitation on the purchase of passenger motor vehicles for use in operation by the Veterans Benefits Administration in Manila, Philippines.

   The conference agreement does not include language as proposed by the House, which would have provided $2,000,000 for the Advisory Committee on Women Veterans. This issue is addressed in the Departmental overview section of this statement of the managers.

   Funding Increases.--The conferees agree to provide an increase of $133,163,000 for General Operating Expenses when compared to the President's budget request. The conferees agree to provide $124,219,000 for the hiring of additional claims processors. Based upon data provided by the Department to the Committees on Appropriations of both Houses of Congress in response to reporting requirements included in the report accompanying Public Law 110-28, the cost per new hire will enable the Department to hire more than 1,800 new claims processors with the funding provided. In addition, the conferees have provided $2,000,000 for the leasing of office space to house these new employees. As the Department experiences an increase in the number of claims being filed, as well as an increase in the number of appeals, both the Board of Veterans Appeals and the Office of General Counsel will require additional personnel to handle these appeals. Therefore, the conferees have provided an increase of $3,724,000 for the Board of Veterans Appeals and $3,220,000 for the Office of General Counsel.

   INFORMATION TECHNOLOGY SYSTEMS

   The conference agreement appropriates $1,966,465,000 for Information Technology Systems, instead of $1,859,217,000 as proposed by the House and $1,898,000,000 as proposed by the Senate. The conference agreement directs the Department to submit an expenditure plan to the Committees on Appropriations of both Houses of Congress within 30 days of enactment as proposed by the House, instead of 60 days of enactment as proposed by the Senate.

   The amount provided includes a reduction of $1,100,000 which has been transferred to the Office of Inspector General. The conferees have included an increase of $39,683,000 for computers and other information technology needs associated with the increase in claims processors for the Veterans Benefits Administration and for increased staff in other offices related to claims processing. Additionally, the conferees agree to provide $8,000,000 for an insurance card buffer system and $8,000,000 for the Veterans Health Administration Chief Logistics Office information technology support. Both of these program shortfalls were identified by the Department subsequent to completion of the House and Senate action on their respective appropriations bills. The conferees have also included $10,200,000 for the information technology costs associated with activation of new community based outpatient clinics, an expense that was underfunded in the budget submission.

   On September 6, 2007, the Secretary of Veterans Affairs informed the Committees on Appropriations of both Houses of Congress of his intention to reorganize the information technology development functions within the Department of Veterans Affairs. The budget request for Information Technology Systems included a consolidation of all payroll-associated costs for operations and maintenance under the Information Technology account. The conference agreement reflects this consolidation; however, the conferees direct the VA to track payroll and non-pay costs separately in future budget submissions. In addition, to further the Department's consolidation objective, the conferees have agreed to include an increase of $42,465,000 to preclude the need to transfer funds from the General Operating Expenses, Medical Services, Medical Facilities, and Medical and Prosthetic Research accounts.

   The conferees are in agreement that the Department should take all steps necessary to ensure that the entire information technology reorganization has no negative impact on providing vital services to veterans, nor should it impede the ability of health care providers and researchers in carrying out their duties.

   Electronic Medical Record.--The conferees direct the Departments of Defense and Veterans Affairs to issue a joint report to the Committees on Appropriations of both Houses of Congress (subcommittees on Defense and Military Construction/Veterans Affairs) by April 1, 2008, detailing the actions being taken by each Department to achieve an interoperable electronic medical record (EMR) system. The report should include, but not be limited to, a detailed spending plan for the use of funding provided in the Joint Incentive Fund as well as identify all other ongoing and planned projects and programs within each Department addressing interoperability, including funding provided. The report should clearly identify the Departments' goals for interoperability and how these projects and programs will address those goals.

   OFFICE OF INSPECTOR GENERAL

   The conference agreement appropriates $80,500,000 for the Office of Inspector General, instead of $76,500,000 as proposed by the House and $88,700,000 as proposed by the Senate. Of the amount provided, $5,000,000 is available for obligation until September 30, 2009, instead of $3,630,000 as proposed by both the House and the Senate.

   The conference agreement includes an additional $7,901,000 above the budget request for the Office of Inspector General. The additional funding includes $1,100,000 for information technology systems unique to the Office of Inspector General, as well as additional funding for new positions so that the Inspector General can expand and improve its independent oversight in critical areas, including transitional health care for veterans returning from the wars in Iraq and Afghanistan and Department of Veterans Affairs information technology programs.

   CONSTRUCTION, MAJOR PROJECTS

   The conference agreement appropriates $1,069,100,000 for Construction, Major Projects, instead of $1,410,800,000 as proposed by the House and $727,400,000 as proposed by the Senate. The conference agreement includes a provision proposed by the House which places a limitation on the use of funds related to 18 facilities on the Capital Asset Realignment for Enhanced Services list requiring further study. The Senate bill contained no similar provision.

   The conferees are aware that the Department's budget request of $40,285,000 for the Advanced Planning Fund will not be sufficient to address projects on the Department's 5-Year Capital Plan for fiscal years 2009 through 2012. Therefore, the conferees have included an additional $9,200,000 in funding to begin the preliminary planning

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   Additionally, the conferees agree to provide $322,500,000 for allocation to previously appropriated major construction projects, including necessary cost adjustments. The Department is directed to provide the Committees on Appropriations of both Houses of Congress with a detailed list of how these funds will be allocated, within 60 days of enactment of this Act.

   New Orleans Veterans Medical Center.--The conferees direct the Secretary of Veterans Affairs to report to the Committees on Appropriations of both Houses of Congress not later than October 1 and April 1 of each year, on the current status of the reconstruction of the Department of Veterans Affairs Medical Center in New Orleans, Louisiana. Each report shall include the status of any ongoing environmental assessments, the status of any current construction, and an assessment of the adequacy of funding necessary to complete the reconstruction. If reconstruction of the Medical Center is subject to any major delay, the report shall include a description of each such delay, an explanation for each such delay, and a description of actions being taken or planned to address the delay. Additionally, within 60 days of enactment of this Act, the Department shall report to the Committees on Appropriations of both Houses of Congress as to whether the New Orleans Medical Center should be designated as a Level I polytrauma rehabilitation center or a polytrauma network site.

   The conference agreement includes the following items ($000):

   Veterans Health Administration:

   $40,000

   61,300

   35,000

   341,400

   23,800

   9,890

   49,485

   3,000

   5,000

   2,000

   21,325

   2,000

   30,000

   322,500

   -45,000
Total Veterans Health Admin.

   901,700

   National Cemetery Administration:

   19,200

   27,800

   22,400

   29,600

   18,500

   19,500

   29,400

   1,000
Total, National Cemetery Admin.

   167,400

   Total, Major Construction

   1,069,100

   CONSTRUCTION, MINOR PROJECTS

   The conference agreement appropriates $630,535,000 for Construction, Minor Projects, instead of $615,000,000 as proposed by the House and $751,398,000 as proposed by the Senate. The conference agreement does not include a provision as proposed by the House, which would have established reprogramming procedures for this account. Of the amount provided, the conferees agree that not less than $75,000,000 shall be used for gravesite expansion and infrastructure improvements for the National Cemetery Administration and not less than $8,000,000 shall be for minor construction for the Veterans Benefits Administration. In addition, the conferees agree that the Department should begin an effort to modernize and upgrade research facilities. The conferees are in agreement that the Department shall submit an expenditure plan to the Committees on Appropriations of both Houses of Congress which specifies how the Department intends to execute the funding provided by this agreement.

   GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

   The conference agreement appropriates $165,000,000 for Grants for Construction of State Extended Care Facilities as proposed by the House, instead of $250,000,000 as proposed by the Senate.

   GRANTS FOR CONSTRUCTION OF STATE VETERANS CEMETERIES

   The conference agreement appropriates $39,500,000 for Grants for Construction of State Veterans Cemeteries, instead of $37,000,000 as proposed by the House and $100,000,000 as proposed by the Senate.

   Administrative Provisions

   (INCLUDING TRANSFERS OF FUNDS)

   The conference agreement includes section 201 as proposed by both the House and the Senate allowing for transfers among various mandatory accounts. This provision is not extended beyond this Act as proposed by the Senate.

   The conference agreement includes section 202 as proposed by the Senate allowing for the transfer of funds among the three medical accounts for the purpose of perfecting the restructuring of the Veterans Health Administration accounts. The House bill contained no similar provision.

   The conference agreement includes section 203 as proposed by both the House and the Senate allowing for the use of salaries and expenses funds to be used for other authorized purposes.

   The conference agreement includes section 204 as proposed by both the House and the Senate restricting the use of funds for the acquisition of land.

   The conference agreement includes section 205 as proposed by both the House and the Senate limiting the use of funds in the Medical Services account to only entitled beneficiaries or unless reimbursement is made to the Department.

   The conference agreement includes section 206 as proposed by both the House and the Senate allowing for the use of certain mandatory appropriations accounts for payment of prior year accrued obligations for those accounts.

   The conference agreement includes section 207 as proposed by both the House and the Senate allowing for the use of appropriations available in this title to pay prior year obligations.

   The conference agreement includes section 208 as proposed by both the House and the Senate allowing funds for the administration of the National Service Life Insurance Fund, the Veterans' Special Life Insurance Fund, and the United States Government Life Insurance Fund.

   The conference agreement includes section 209 as proposed by both the House and the Senate allowing for the proceeds from enhanced-use leases to be obligated in the year in which the proceeds are received.

   The conference agreement includes section 210 as proposed by both the House and the Senate allowing for the use of funds in this title for salaries and other administrative expenses to be used to reimburse the Office of Resolution Management and the Office of Employment Discrimination Complaint Adjudication.

   The conference agreement includes section 211 as proposed by both the House and the Senate limiting the use of funds for any lease with an estimated annual rental of more than $300,000 unless approved by the Committees on Appropriations of both Houses of Congress.

   The conference agreement includes section 212 as proposed by both the House and the Senate requiring the Secretary of the Department of Veterans Affairs to collect third-party payer information for persons treated for non-service connected disability.

   The conference agreement includes section 213 as proposed by both the House and the Senate allowing for the use of enhanced-use leasing revenues for Construction, Major Projects and Construction, Minor Projects.

   The conference agreement includes section 214 as proposed by both the House and the Senate allowing for the use of Medical Services funds to be used for recreational facilities and funeral expenses.

   The conference agreement includes section 215 as proposed by both the House and the Senate allowing for funds deposited into the Medical Care Collections Fund to be transferred to the Medical Services account.

   The conference agreement includes section 216 as proposed by both the House and the Senate which allows Alaskan veterans to use medical facilities of the Indian Health Service or tribal organizations at no additional cost to the Department of Veterans Affairs or the Indian Health Service.

   The conference agreement includes section 217 as proposed by both the House and the Senate providing for the transfer of funds from the Department of Veterans Affairs Capital Asset Fund to the Construction, Major Projects and Construction, Minor Projects accounts and makes those funds available until expended.

   The conference agreement includes section 218 as proposed by both the House and the Senate prohibiting the expenditure of funds to replace the current system by which VISNs select and contract for diabetes monitoring supplies and equipment.

   The conference agreement includes section 219 as proposed by both the House and the Senate prohibiting the use of funds on any policy prohibiting the use of outreach or marketing to enroll new veterans.

   The conference agreement includes section 220 as proposed by both the House and the Senate requiring the Secretary to submit quarterly reports on the financial status and service level status of the Veterans Health Administration. The conference agreement does not include additional reporting requirements as proposed by the House.

   The conference agreement includes section 221 as proposed by the Senate allowing for the transfer of funds from various accounts to the Information Technology Systems account to complete the restructuring of this appropriations account. The House bill contained no similar provision.

   The conference agreement includes section 222 as proposed by both the House and the Senate providing for transfer of funds among projects within the Information Technology Systems account.

   The conference agreement includes section 223 as proposed by the House allowing for the transfer of any prior year balances and/or credits in the Reinstated Entitlement Program for Survivors account to the Compensation and Pensions account.

   The conference agreement includes section 224 as proposed by the Senate prohibiting the

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   The conference agreement includes section 225 as proposed by the Senate maintaining funding for Gulf War Illness Research at levels not less than those made available in fiscal year 2007. The House bill contained no similar provision.

   The conference agreement includes section 226 as proposed by the Senate directing the Office of Inspector General (OIG) to establish and maintain on the OIG Internet homepage a mechanism to allow for the anonymous reporting of fraud, waste and abuse. The House bill contained no similar provision.

   The conference agreement includes a modified section 227 as proposed by the Senate authorizing the transfer of not more than $5,000,000 to the Secretary of Health and Human Services for a Graduate Psychology Education Program which directly benefits veterans. The House bill contained no similar provision.

   The conference agreement includes section 228 as proposed by the Senate prohibiting any funds to be used to contract out any function performed by more than ten employees without a fair competition process. The House bill contained no similar provision.

   The conference agreement includes section 229 as proposed by the Senate authorizing the lease of a major medical facility. The House bill contained no similar provision.

   The conference agreement includes section 230 rescinding funding from the Medical Services account in Public Law 110-28 and re-appropriating the funding to Construction, Major Projects to enable the Department to move forward with direction included in the emergency supplemental conference report.

   The conference agreement does not include a provision proposed by the Senate (section 221) which would have allowed for the transfer of funds from the General Operating Expenses, National Cemetery Administration, and Office of Inspector General accounts to the Medical Services account.

   The conference agreement does not include a provision proposed by the House (section 222) which would have required the Department to notify and receive Congressional approval prior to transferring funds in excess of $1,000,000 between minor construction projects.

   The conference agreement does not include a provision proposed by the Senate (section 224) which would have provided additional direction on the obligation of non-recurring maintenance. This issue is instead addressed under the Medical Facilities section of this statement of the managers.

   The conference agreement does not include a provision proposed by the Senate (section 229) which would have required a report on the Department of Veterans Affairs Medical Center in New Orleans, Louisiana. This issue is instead addressed elsewhere in this statement of the managers.

   The conference agreement does not include a provision proposed by the Senate (section 230) which would have increased the Medical Services account by $125,000,000 and reduced the Medical Administration account by $125,000,000 for the Veterans Beneficiary Travel program. This issue is addressed under the Medical Services section of this statement of the managers.

   The conference agreement does not include a provision proposed by the Senate (section 231) which would have required a report on access to medical services for veterans in rural areas. The issue is instead addressed elsewhere in this statement of the managers.

   The conference agreement does not include a provision proposed by the Senate (section 232) which would have prohibited rounding down the dollar amounts to the next whole dollar for benefit payments.

   The conference agreement does not include a provision proposed by the Senate (section 234) which would have named a clinic in Alpena, Michigan.

   TITLE III--RELATED AGENCIES

   American Battle Monuments Commission

   SALARIES AND EXPENSES

   The conference agreement appropriates $44,600,000 for Salaries and Expenses, instead of $43,470,000 as proposed by the House and $45,600,000 as proposed by the Senate.

   The conferees agree that the increase above the budget request shall be used for capital improvements and infrastructure modernization. The conferees agree with the direction of the Senate that the Commission submit a report to the Committees on Appropriations of both Houses of Congress by February 29, 2008, detailing funding required to correct maintenance and infrastructure deficiencies at all cemeteries and memorials for which the Commission is responsible.

   In fiscal year 2006, the Commission contracted for a study on ground erosion surrounding the World War II Pointe du Hoc Ranger Monument in France. The conferees direct the Commission to submit a report to the Committees on Appropriations of both Houses of Congress outlining the conclusions of the ground erosion study and the steps the Commission will take to implement any study recommendations.

   FOREIGN CURRENCY FLUCTUATIONS ACCOUNT

   The conference agreement appropriates $11,000,000 for the Foreign Currency Fluctuations Account as proposed by both the House and the Senate.

   United States Court of Appeals for Veterans Claims

   SALARIES AND EXPENSES

   The conference agreement appropriates $22,717,000 for the Salaries and Expenses account, instead of $21,397,000 as proposed by the House and $24,217,000 as proposed by the Senate. The amount provided includes $1,210,000 for the pro bono program, instead of $1,300,000 as proposed by the House and $1,120,000 as proposed by the Senate.

   The conferees have agreed to provide additional resources for the Court in recognition of the probability that the Court's workload will increase as the Department of Veterans Affairs experiences a significant increase in disability claims being processed. The increase in funding will provide the Court with sufficient resources to hire two additional magistrate judges, three staff attorneys and clerical staff.

   Department of Defense--Civil Cemeterial Expenses, Army

   SALARIES AND EXPENSES

   The conference agreement appropriates $31,230,000 for Salaries and Expenses, instead of $30,592,000 as proposed by the House and $31,865,000 as proposed by the Senate. The conference agreement includes a provision as proposed by the Senate which will allow funds to be provided to Arlington County, Virginia for expenses related to the relocation of the federally owned water main at Arlington National Cemetery. The House bill contained no similar provision.

   The conferees agree that the increase of $4,338,000 above the budget request shall be used for the realignment of government-issued headstones, the construction of a heavy equipment storage facility, and costs not included in the budget request associated with the relocation of utilities at Arlington National Cemetery.

   Armed Forces Retirement Home

   TRUST FUNDS

   The conference agreement appropriates $55,724,000 for the Armed Forces Retirement Home (AFRH) as proposed by both the House and the Senate.

   The conferees maintain an interest in how the principles of the Green House approach can be incorporated into the new AFRH Gulfport campus while meeting construction milestones, fully restoring services and providing pre-Katrina number of resident spaces. The conferees direct the AFRH to submit a report to the Committees on Appropriations of both Houses of Congress no later than March 1, 2008, detailing the planned on-site services and how the agency could implement the principles of the Green House approach on the Gulfport campus.

   GENERAL FUND PAYMENT

   The conference agreement appropriates $800,000 as a General Fund Payment to the Armed Forces Retirement Home as proposed by the House, instead of $5,900,000 as proposed by the Senate. The funding is to be used for a study of funding sources for the Trust Fund to determine the long-term viability of the Trust Fund and the potential need for a recurring General Fund Payment to the Trust Fund.

   Administrative Provision

   The conference agreement does not include an administrative provision as proposed by the Senate (Sec. 301) which would have prohibited the American Battle Monuments Commission from making a payment to the Capital Security Cost Sharing program.

   TITLE IV--GENERAL PROVISIONS

   The conference agreement includes section 401 as proposed by both the House and the Senate prohibiting the obligation of funds in the Act beyond the current fiscal year unless expressly so provided.

   The conference agreement includes section 402 as proposed by both the House and the Senate requiring pay raises to be absorbed within the levels appropriated in the Act.

   The conference agreement includes section 403 as proposed by both the House and the Senate prohibiting the use of the funds in this Act for programs, projects or activities not in compliance with Federal law relating to risk assessment, the protection of private property rights, or unfunded mandates.

   The conference agreement includes section 404 as proposed by both the House and the Senate prohibiting the use of funds in the Act to support or defeat legislation pending before Congress.

   The conference agreement includes section 405 as proposed by the Senate encouraging all Departments to expand their use of ``E-Commerce''. The House bill contained a similar provision, but was more directive.

   The conference agreement includes section 406 as proposed by both the House and the Senate prohibiting the transfer of funds to any instrumentality of the United States Government without authority from an appropriations Act.

   The conference agreement includes section 407 as proposed by both the House and the Senate specifying the congressional committees that are to receive all reports and notifications.

   The conference agreement includes section 408 as proposed by the House directing the Congressional Budget Office to submit a report that projects the annual appropriations necessary for the Department of Veterans Affairs to continue providing health care to veterans. The Senate bill contained no similar provision.

   The conference agreement includes section 409 as proposed by both the House and the Senate prohibiting the use of funds in the Act for any action that is related to or promotes the expansion of the boundaries or size of the Pinon Canyon Maneuver Site, Colorado.

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   The conference agreement includes section 410 as proposed by the Senate allowing the City of Aurora, Colorado to convey land to the United States to be used by the Department of Veterans Affairs for construction of a veterans' medical facility. The House bill contained no similar provision.

   The conference agreement does not include a provision as proposed by the House (section 409) which would have prohibited the use of funds in this Act to purchase light bulbs unless they have the ``ENERGY STAR'' designation. The Senate bill contained no similar provision.

   The conference agreement does not include a provision as proposed by the Senate (section 408) which would have required the Government Accountability Office to assess mental health care services for female servicemembers and veterans. This issue is addressed elsewhere in this statement of the managers. The House bill contained no similar provision.

   The conference agreement does not include a provision, as proposed by the Senate (section 409) which would have prohibited the use of funds in the Act to enter into a contract or award a grant in an amount greater than $5,000,000 unless the contractor or grantee certifies in writing that certain Federal requirements have been met. The House bill contained no similar provision.

   The conference agreement does not include a provision as proposed by the Senate (section 411) which would have appropriated $100,000,000, designated as an emergency requirement, for security and related costs associated with the Democratic National Convention and the Republican National Convention. The House bill contained no similar provision.

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   COMPLIANCE WITH RULE XXI, CL. 9 (HOUSE) AND WITH RULE XLIV (SENATE)

   The following list is submitted in compliance with clause 9 of rule XXI of the Rules of the House of Representatives and rule XLIV of the Standing Rules of the Senate, which require publication of a list of congressionally directed spending items (Senate), congressional earmarks (House), limited tax benefits, and limited tariff benefits included in the conference report, or in the joint statement of the managers accompanying the conference report, including the name of each Senator, House Member, Delegate, or Resident Commissioner who submitted a request to the Committee of jurisdiction for each item so identified. Congressionally directed spending items (as defined in the Senate rule) and congressional earmarks (as defined in the House rule) in this division of the conference report or joint statement of the managers are listed below. Neither the conference report nor the statement of the managers contains any limited tax benefits or limited tariff benefits as defined in the applicable House and Senate rules.

   The following list is also submitted in compliance with House Resolution 491, which requires a listing of congressional earmarks in the conference report or joint statement of the managers that were not committed to the committee of conference by either House, not in a report on a bill committed to conference, and not in a Senate committee report on a companion measure. All items on the following list technically meet that definition, because this division deals with legislation that was not committed to this committee of conference. Items on the following list have been marked with an asterisk if they were not in either the House or Senate version of the fiscal year 2008 Military Construction and Veterans Affairs and Related Agencies Appropriations bill or the accompanying Committee reports.

   Conference Total--With Comparisons

   The total new budget (obligational) authority for the fiscal year 2008 recommended by the Committee of Conference, with comparisons to the fiscal year 2007 amount, the 2008 budget estimates, and the House and Senate bills for 2008 follow:

   $97,630,909

   105,231,766

   109,231,766

   109,332,250

   109,232,250

   Conference agreement compared with:

   +11,601,341

   +4,000,484

   +484

   -100,000