Congressional Record Weekly Update

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1A) Excerpted Language from H.R. 2800 Foreign Operations, Export Financing and Related Programs Appropriations

On Thursday, October 30, 2003, the Senate passed H.R. 2800, as follows:

   H.R. 2800

    Resolved, That the bill from the House of Representatives (H.R. 2800) entitled ``An Act making appropriations for foreign operations, export financing, and related programs for the fiscal year ending September 30, 2004, and for other purposes.'', do pass with the following amendment: Strike out all after the enacting clause and insert:

   That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2004, and for other purposes, namely:

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EXPORT-IMPORT BANK LOANS PROGRAM ACCOUNT

    The Export-Import Bank of the United States is authorized to make such expenditures within the limits of funds and borrowing authority available to such corporation, and in accordance with law, and to make such contracts and commitments without regard to fiscal year limitations, as provided by section 104 of the Government Corporation Control Act, as may be necessary in carrying out the program for the current fiscal year for such corporation: Provided, That none of the funds available during the current fiscal year may be used to make expenditures, contracts, or commitments for the export of nuclear equipment, fuel, or technology to any country, other than a nuclear-weapon state as defined in Article IX of the Treaty on the Non-Proliferation of Nuclear Weapons eligible to receive economic or military assistance under this Act, that has detonated a nuclear explosive after the date of the enactment of this Act: Provided further, That notwithstanding section 1(c) of Public Law 103-428, as amended, sections 1(a) and (b) of Public Law 103-428 shall remain in effect through October 1, 2004.

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   ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

    (a) For necessary expenses to carry out the provisions of the Foreign Assistance Act of 1961 and the Support for East European Democracy (SEED) Act of 1989, $445,000,000, to remain available until September 30, 2005, which shall be available, notwithstanding any other provision of law, for assistance and for related programs for Eastern Europe and the Baltic States: Provided, That of the funds appropriated under this heading that are made available for assistance for Bulgaria, $3,000,000 should be made available to enhance safety at nuclear power plants: Provided further, That of the funds appropriated under this heading, and under the headings ``Assistance for the Independent States of the Former Soviet Union'' and ``Economic Support Fund'', not less than $50,000,000 shall be made available for programs for the prevention, treatment, and control of, and research on, HIV/AIDS, tuberculosis, and malaria.

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ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET UNION

    (a) For necessary expenses to carry out the provisions of chapters 11 and 12 of part I of the Foreign Assistance Act of 1961 and the FREEDOM Support Act, for assistance for the Independent States of the former Soviet Union and for related programs, $596,000,000, to remain available until September 30, 2005: Provided, That the provisions of such chapters shall apply to funds appropriated by this paragraph: Provided further, That of the funds made available for the Southern Caucasus region, notwithstanding any other provision of law, funds may be used for confidence-building measures and other activities in furtherance of the peaceful resolution of the regional conflicts, especially those in the vicinity of Abkhazia and Nagorno-Karabagh: Provided further, That of the funds appropriated under this heading, $20,000,000 shall be made available solely for assistance for the Russian Far East: Provided further, That $5,000,000 shall be made available to promote freedom of the media and an independent media in Russia: Provided further, That not less than $3,000,000 shall be made available for programs and activities authorized under section 307 of the FREEDOM Support Act (Public Law 102-511): Provided further, That of the funds appropriated under this heading, $500,000 shall be made available to support democracy building programs in Russia through the Sakharov Archives: Provided further, That, notwithstanding

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any other provision of law, funds appropriated under this heading in this Act or prior Acts making appropriations for foreign operations, export financing, and related programs, that are made available pursuant to the provisions of section 807 of Public Law 102-511 shall be subject to a 6 percent ceiling on administrative expenses.

    (b) Of the funds appropriated under this heading that are made available for assistance for Ukraine, not less than $20,000,000 shall be made available for nuclear reactor safety initiatives, of which $14,000,000 should be for simulator-related projects; and not less than $2,000,000 shall be made available for coal mine safety programs.

    (c) Of the funds appropriated under this heading, $75,000,000 should be made available for assistance for Georgia.

    (d) Of the funds appropriated under this heading, not less than $75,000,000 shall be made available for assistance for Armenia.

    (e)(1) Of the funds appropriated under this heading that are allocated for assistance for the Government of the Russian Federation, 60 percent shall be withheld from obligation until the President determines and certifies in writing to the Committees on Appropriations that the Government of the Russian Federation:

    (A) has terminated implementation of arrangements to provide Iran with technical expertise, training, technology, or equipment necessary to develop a nuclear reactor, related nuclear research facilities or programs, or ballistic missile capability; and

    (B) is providing full access to international non-government organizations providing humanitarian relief to refugees and internally displaced persons in Chechnya.

    (2) Paragraph (1) shall not apply to--

    (A) assistance to combat infectious diseases, child survival activities, or assistance for victims of trafficking in persons; and

    (B) activities authorized under title V (Nonproliferation and Disarmament Programs and Activities) of the FREEDOM Support Act.

    (f) Section 907 of the FREEDOM Support Act shall not apply to--

    (1) activities to support democracy or assistance under title V of the FREEDOM Support Act and section 1424 of Public Law 104-201 or non-proliferation assistance;

    (2) any assistance provided by the Trade and Development Agency under section 661 of the Foreign Assistance Act of 1961 (22 U.S.C. 2421);

    (3) any activity carried out by a member of the United States and Foreign Commercial Service while acting within his or her official capacity;

    (4) any insurance, reinsurance, guarantee or other assistance provided by the Overseas Private Investment Corporation under title IV of chapter 2 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2191 et seq.);

    (5) any financing provided under the Export-Import Bank Act of 1945; or

    (6) humanitarian assistance.

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NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED PROGRAMS

    For necessary expenses for nonproliferation, anti-terrorism, demining and related programs and activities, $385,200,000, to carry out the provisions of chapter 8 of part II of the Foreign Assistance Act of 1961 for anti-terrorism assistance, chapter 9 of part II of the Foreign Assistance Act of 1961, section 504 of the FREEDOM Support Act, section 23 of the Arms Export Control Act or the Foreign Assistance Act of 1961 for demining activities, the clearance of unexploded ordnance, the destruction of small arms, and related activities, notwithstanding any other provision of law, including activities implemented through nongovernmental and international organizations, and section 301 of the Foreign Assistance Act of 1961 for a voluntary contribution to the International Atomic Energy Agency (IAEA), and for a United States contribution to the Comprehensive Nuclear Test Ban Treaty Preparatory Commission: Provided, That of this amount not to exceed $35,000,000, to remain available until expended, may be made available for the Nonproliferation and Disarmament Fund, notwithstanding any other provision of law, to promote bilateral and multilateral activities relating to nonproliferation and disarmament: Provided further, That such funds may also be used for such countries other than the Independent States of the former Soviet Union and international organizations when it is in the national security interest of the United States to do so: Provided further, That funds appropriated under this heading may be made available for the International Atomic Energy Agency only if the Secretary of State determines (and so reports to the Congress) that Israel is not being denied its right to participate in the activities of that Agency: Provided further, That of the funds appropriated under this heading, $19,300,000 shall be made available for a United States contribution to the Comprehensive Nuclear Test Ban Treaty Preparatory Commission: Provided further, That notwithstanding the previous proviso, funds earmarked in the previous proviso that are not made available during fiscal year 2004 for a contribution to the Comprehensive Nuclear Test Ban Treaty Preparatory Commission and that are not necessary to make the United States contribution to the Commission in the amount assessed for fiscal year 2004 shall be made available for a voluntary contribution to the International Atomic Energy Agency and shall remain available until September 30, 2005: Provided further, That of the funds made available for demining and related activities, not to exceed $690,000, in addition to funds otherwise available for such purposes, may be used for administrative expenses related to the operation and management of the demining program: Provided further, That the Secretary of State is authorized to provide not to exceed $250,000 for public-private partnerships for mine action by grant, cooperative agreement, or contract.

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FOREIGN MILITARY FINANCING PROGRAM

   (INCLUDING TRANSFER OF FUNDS)

    For expenses necessary for grants to enable the President to carry out the provisions of section 23 of the Arms Export Control Act, $4,384,000,000: Provided, That of the funds appropriated under this heading, not less than $2,160,000,000 shall be available for grants only for Israel, and not less than $1,300,000,000 shall be made available for grants only for Egypt: Provided further, That the funds appropriated by this paragraph for Israel shall be disbursed within 30 days of the enactment of this Act: Provided further, That to the extent that the Government of Israel requests that funds be used for such purposes, grants made available for Israel by this paragraph shall, as agreed by Israel and the United States, be available for advanced weapons systems, of which not less than $568,000,000 shall be available for the procurement in Israel of defense articles and defense services, including research and development: Provided further, That of the funds appropriated by this paragraph, $206,000,000 shall be made available for assistance for Jordan: Provided further, That of the funds appropriated by this paragraph, $27,000,000 shall be made available for assistance for Poland: Provided further, That of the funds appropriated by this paragraph, $2,500,000 shall be made available for assistance for Armenia: Provided further, That of the funds appropriated by this paragraph, $15,000,000 shall be transferred to and merged with funds appropriated under the heading ``Nonproliferation, Anti-Terrorism, Demining and Related Programs'', and made available, in addition to amounts otherwise available for such purposes, as follows: $10,000,000, to remain available until expended, shall be made available to carry out the provisions of section 504 of the FREEDOM Support

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Act for the Nonproliferation and Disarmament Fund, notwithstanding any other provision of law, to promote bilateral and multilateral activities relating to nonproliferation and disarmament; $2,000,000 shall be made available to carry out the provisions of chapter 8 of part II of the Foreign Assistance Act of 1961 for the Small Arms/Light Weapons Destruction program; and $3,000,000 shall be made available as an additional contribution to the International Atomic Energy Agency: Provided further, That of the funds appropriated by this paragraph, not less than $17,000,000 shall be transferred to and merged with funds appropriated under the heading ``Andean Counterdrug Initiative'' and made available for aircraft and related assistance for the Colombian National Police: Provided further, That funds appropriated by this paragraph shall be nonrepayable notwithstanding any requirement in section 23 of the Arms Export Control Act: Provided further, That funds made available under this paragraph shall be obligated upon apportionment in accordance with paragraph (5)(C) of title 31, United States Code, section 1501(a).

    None of the funds made available under this heading shall be available to finance the procurement of defense articles, defense services, or design and construction services that are not sold by the United States Government under the Arms Export Control Act unless the foreign country proposing to make such procurements has first signed an agreement with the United States Government specifying the conditions under which such procurements may be financed with such funds: Provided, That all country and funding level increases in allocations shall be submitted through the regular notification procedures of section 615 of this Act: Provided further, That none of the funds appropriated under this heading shall be available for assistance for Sudan, Guatemala and Liberia: Provided further, That funds made available under this heading may be used, notwithstanding any other provision of law, for demining, the clearance of unexploded ordnance, and related activities, and may include activities implemented through nongovernmental and international organizations: Provided further, That the authority contained in the previous proviso or any other provision of law relating to the use of funds for programs under this heading, including provisions contained in previously enacted appropriations Acts, shall not apply to activities relating to the clearance of unexploded ordnance resulting from United States Armed Forces testing or training exercises: Provided further, That the previous proviso shall not apply to San Jose Island, Republic of Panama: Provided further, That only those countries for which assistance was justified for the ``Foreign Military Sales Financing Program'' in the fiscal year 1989 congressional presentation for security assistance programs may utilize funds made available under this heading for procurement of defense articles, defense services or design and construction services that are not sold by the United States Government under the Arms Export Control Act: Provided further, That funds appropriated under this heading shall be expended at the minimum rate necessary to make timely payment for defense articles and services: Provided further, That not more than $40,500,000 of the funds appropriated under this heading may be obligated for necessary expenses, including the purchase of passenger motor vehicles for replacement only for use outside of the United States, for the general costs of administering military assistance and sales: Provided further, That not more than $361,000,000 of funds realized pursuant to section 21(e)(1)(A) of the Arms Export Control Act may be obligated for expenses incurred by the Department of Defense during fiscal year 2004 pursuant to section 43(b) of the Arms Export Control Act, except that this limitation may be exceeded only through the regular notification procedures of the Committees on Appropriations: Provided further, That foreign military financing program funds estimated to be outlayed for Egypt during fiscal year 2004 shall be transferred to an interest bearing account for Egypt in the Federal Reserve Bank of New York within 30 days of enactment of this Act.

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 PROHIBITION ON FINANCING NUCLEAR GOODS

    SEC. 606. None of the funds appropriated or made available (other than funds for ``Nonproliferation, Anti-terrorism, Demining and Related Programs'') pursuant to this Act, for carrying out the Foreign Assistance Act of 1961, may be used, except for purposes of nuclear safety, to finance the export of nuclear equipment, fuel, or technology.

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INDEPENDENT STATES OF THE FORMER SOVIET UNION

    SEC. 617. (a) None of the funds appropriated under the heading ``Assistance for the Independent States of the Former Soviet Union'' shall be made available for assistance for a government of an Independent State of the former Soviet Union--

    (1) unless that government is making progress in implementing comprehensive economic reforms based on market principles, private ownership, respect for commercial contracts, and equitable treatment of foreign private investment; and

    (2) if that government applies or transfers United States assistance to any entity for the purpose of expropriating or seizing ownership or control of assets, investments, or ventures.

   Assistance may be furnished without regard to this subsection if the President determines that to do so is in the national interest.

    (b) None of the funds appropriated under the heading ``Assistance for the Independent States of the Former Soviet Union'' shall be made available for assistance for a government of an Independent State of the former Soviet Union if that government directs any action in violation of the territorial integrity or national sovereignty of any other Independent State of the former Soviet Union, such as those violations included in the Helsinki Final Act: Provided, That such funds may be made available without regard to the restriction in this subsection if the President determines that to do so is in the national security interest of the United States.

    (c) None of the funds appropriated under the heading ``Assistance for the Independent States of the Former Soviet Union'' shall be made available for any state to enhance its military capability: Provided, That this restriction does not apply to demilitarization, demining or nonproliferation programs.

    (d) Funds appropriated under the heading ``Assistance for the Independent States of the Former Soviet Union'' for the Russian Federation, Armenia, Georgia, and Ukraine shall be subject to the regular notification procedures of the Committees on Appropriations.

    (e) Funds made available in this Act for assistance for the Independent States of the former Soviet Union shall be subject to the provisions of section 117 (relating to environment and natural resources) of the Foreign Assistance Act of 1961.

    (f) Funds appropriated in this or prior appropriations Acts that are or have been made available for an Enterprise Fund in the Independent States of the Former Soviet Union may be deposited by such Fund in interest-bearing accounts prior to the disbursement of such funds by the Fund for program purposes. The Fund may retain for such program purposes any interest earned on such deposits without returning such interest to the Treasury of the United States and without further appropriation by the Congress. Funds made available for Enterprise Funds shall be expended at the minimum rate necessary to make timely payment for projects and activities.

    (g) In issuing new task orders, entering into contracts, or making grants, with funds appropriated in this Act or prior appropriations Acts under the heading ``Assistance for the Independent States of the Former Soviet Union'' and under comparable headings in prior appropriations Acts, for projects or activities that have as one of their primary purposes the fostering of private sector development, the Coordinator for United States Assistance to the New Independent States and the implementing agency shall encourage the participation of and give significant weight to contractors and grantees who propose investing a significant amount of their own resources (including volunteer services and in-kind contributions) in such projects and activities.

1B) Low-Yield Nukes - Excerpted Floor Debate on H.R. 1588 Conference Report

Mr. SPRATT. Mr. Speaker, with a defense budget of $400 billion and an enormous range of issues, it is not easy to bring a conference to closure, and I commend the gentleman from California (Mr. Hunter), as well as the gentleman from Missouri (Mr. Skelton), for what they have achieved.

   I rise in support of H.R. 1588, the conference report thereon, but I have some real concerns. First of all, I have already spoken to the failure of the underlying bill to accrue properly the budget authority that will be necessary to implement the compromise on concurrent receipt or the provisions for lease purchase of 100 tankers. I am concerned about the radical reform of civil service laws in the Department of Defense and the dispensation this bill gives to the Department of Defense from environmental laws that apply to everybody else. Also, I am concerned about the new and cumbersome strictures on cooperative threat reduction.

   I am particularly disappointed in the provisions of this report that deal with low-level nuclear weapons. I believe the conferees should have stuck with the bipartisan compromise reached by the Committee on Armed Services and set forth in the defense bill that we passed last May. That compromise was sound enough that in July of this year when I offered a motion to instruct, those provisions were accepted and upheld by the House without dissent.

   The administration began this year by stepping up its push for repeal on a ban of low-level nuclear weapons research and development, a ban which has been in the law for 10 years. There was little opposition here to broadening research into low-yield nuclear weapons, but there was bipartisan concern about going so far as engineering development. And so both the House and Senate authorization bills proposed changes to allow research into

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low-yield nuclear weapons, but restricted any move into engineering development.

   The Senate, on the other hand, repealed the so-called Spratt-Furse amendment entirely, but then backfilled the cavity with caveats barring testing or deployment of low-yield nuclear weapons. They also added language requiring specific congressional authorization to move into development of any advanced nuclear concept project. These are the provisions included in the conference report.

   By contrast, the House version amended existing law rather than repealing it. We explicitly authorized research, but we maintained a bar on development beyond detailed feasibility studies, the so-called 6.2a level of research and development.

   Our compromise may have similar in consequences to the Senate approach, but I think it was superior in form because it makes clear that it is the policy of the United States not to develop low-yield tactical nuclear weapons. The House compromise, thus, gives stronger assurance that Congress will be an equal partner if that policy is reversed, if that decision is taken, and if there is a move to go beyond research.

   When we adopted the Spratt-Furse amendment in the early 1990s, it came in the wake of an issue taken by the first President Bush whereby we withdrew a number of tactical nuclear weapons from Europe and the Soviets responded in kind. This was a step back and a step forward for nuclear security throughout the world. This initiative helped us later on to persuade Ukraine, Kazakhstan, and Belarus to forswear nuclear weapons.

   If today the United States should move toward renewed development of nuclear weapons, especially weapons designed to be more usable due to their low-yield warheads, it sends the wrong signal.

   Mr. Speaker, I support the conference report because it does many things I support, particularly for the quality of life for our troops, and also because I trust that the effect of the language in the report will be enough to forestall development of mini-nukes. I recommend support for the bill.

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Mr. MATHESON. Mr. Speaker, I have always been a strong supporter of the military and I'm well aware of the unconventional war we face against terrorists. However, I continue to oppose the nuclear weapons related provisions in this year's defense authorization bill.

   No one is arguing about the need to find new technologies with which our nation can combat deeply buried targets, particularly those held by terrorists. At issue is whether Congress needs to resort to repealing the Spratt-Furse prohibition on nuclear weapons development and encouraging the production of new weapons.

   There is a disconnect in the federal government between weapons development and the realistic application of nuclear weapons. Advocates of new nuclear weapons see them as just another tool in the War on Terror, without realizing nuclear weapons work best as a deterrent, not as first-use weapons.

   Supporters of the Robust Nuclear Earth Penetrator and new nuclear weapons, argue that the current authorization language is strictly limited to weapons research and development in Department of Energy labs. This claim ignores the obvious end result of weapons development--weapons design does not occur in a vacuum. In order for our soldiers to use nuclear weapons in combat, these weapons must first be physically tested, most likely at the Nevada Test Site. The federal government's poor record on weapons testing and containment of fallout is lengthy and disappointing, at best.

   Like many Utahns, I come from a family of downwinders. My father, as well as other loved ones, developed terminal cancer after he was exposed to radiation from Cold War nuclear weapons tests conducted by the federal government. I do not believe that we should even consider a resumption of nuclear weapons testing when rational alternatives have not been fully explored.

   I have already seen too many Americans succumb to then-unforeseen consequences of weapons testing. Advances in containment technology are certainly possible, however, the current circumstances do not lend themselves to a resumption of nuclear weapons testing and I will do everything in my power to avoid that end result.

1C) H.R. 2754 Energy and Water Development Appropriations Conference Report

ATOMIC ENERGY DEFENSE ACTIVITIES

   National Nuclear Security Administration

   Weapons Activities

    For Department of Energy expenses, including the purchase, construction, and acquisition of plant and capital equipment and other incidental expenses necessary for atomic energy defense weapons activities in carrying out the purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or condemnation of any real property or any facility or for plant or facility acquisition, construction, or expansion; one fixed wing aircraft for replacement only; and the purchase of not to exceed six passenger motor vehicles, of which four shall be for replacement only, including not to exceed two buses; $6,272,511,000, to remain available until expended: Provided, That $87,000,000 is authorized to be appropriated for Project 01-D-108, Microsystems and engineering sciences applications (MESA), Sandia National Laboratories, Albuquerque, New Mexico: Provided further, That $3,564,000 is authorized to be appropriated for Project 04-D-103, Project engineering and design (PED), various locations: Provided further, That a plant or construction project for which amounts are made available under this heading in this fiscal year with a current estimated cost of less than $10,000,000 is considered for purposes of section 3622 of Public Law 107-314 as a plant project for which the approved total estimated cost does not exceed the minor construction threshold and for purposes of section 3623 of Public Law 107-314 as a construction project with a current estimated cost of less than the minor construction threshold.

   Defense Nuclear Nonproliferation

    For Department of Energy expenses, including the purchase, construction and acquisition of plant and capital equipment and other incidental expenses necessary for atomic energy defense, defense nuclear nonproliferation activities, in carrying out the purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or condemnation of any real property or any facility or for plant or facility acquisition, construction, or expansion, $1,327,612,000, to remain available until expended.

   Naval Reactors

    For Department of Energy expenses necessary for naval reactors activities to carry out the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including the acquisition (by purchase, condemnation, construction, or otherwise) of real property, plant, and capital equipment, facilities, and facility expansion, and the purchase of not to exceed one bus; $766,400,000, to remain available until expended.

   Office of the Administrator

    For necessary expenses of the Office of the Administrator in the National Nuclear Security Administration, including official reception and representation expenses (not to exceed $12,000), $339,980,000, to remain available until expended.

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SEC. 313. No funds appropriated or otherwise made available under this title under the heading ``ATOMIC ENERGY DEFENSE ACTIVITIES'' may be obligated or expended for additional and exploratory studies under the Advanced Concepts Initiative until 30 days after the date on which the Administrator for Nuclear Security submits to Congress a detailed report on the planned activities for additional and exploratory studies under the initiative for fiscal year 2004. The report shall be submitted in unclassified form, but may include a classified annex..

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SAFETY AT DOE FACILITIES

   The conferees concur with the House language requiring an annual report on the backlog of safety deficiencies at National Nuclear Security Administration and defense cleanup sites and the estimated cost and schedule for corrective actions.

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Transfer from Other Defense Activities.--The conferees believe that defense-related programs should fund a proportional share of total Departmental Administration costs. By the conferees' calculation, the Department's defense-related activities account for 70.3 percent of the Department's total budget request for fiscal year 2004. Subtracting out the costs for the National Nuclear Security Administration (NNSA), which has largely established its own corporate functions analogous to Departmental Administration functions, the remaining defense-related costs account for 32.7 percent of the Department's total budget. For the gross Departmental Administration request of $351,306,000 in fiscal year 2004, the minimum defense contribution should have been $114,877,000. Using some other system of mathematics, the Department requested only $25,000,000 as the defense share of Departmental Administration. The conferees consider this an inadequate share of Departmental Administration costs, and provide instead $86,679,000, the same contribution from Other Defense Activities as provided in fiscal year 2003. The conferees direct the Department to submit a budget request for fiscal year 2005 that reflects a proportional contribution from Other Defense Activities for these Departmental Administration costs.

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National Nuclear Security Administration

   The National Nuclear Security Administration (NNSA), a semi-autonomous agency within the Department of Energy, manages the Nation's nuclear weapons, nuclear nonproliferation, and naval reactors activities.

   Availability of funds.--The conference agreement makes funds appropriated to the NNSA available until expended as proposed by the Senate.

   Stockpile Plan.--The conferees direct the Secretary of Energy in conjunction with the Secretary of Defense to provide a report to the Appropriations and Armed Services Committees of Congress providing a revised Nuclear Weapons Stockpile plan that supports the President's revised Nuclear Weapons Stockpile Memorandum. The revised Nuclear Weapons Stockpile plan should detail the Department of Defense and Department of Energy's program plan and detailed schedule to achieve the President's proposed inventory adjustments to the Total Strategic Stockpile, reducing the Operationally Deployed weapons to 1,700-2,200 by 2012, as well as the inventory adjustments to the other categories of the nuclear stockpile (i.e., Strategic Active and Inactive Stockpile) by weapon systems and warhead type. The conference agreement restricts a portion of the funds provided for Advanced Concepts research on nuclear weapons pending congressional review of the Nuclear Stockpile report. This report is due to the Appropriations and Armed Services Committees concurrent with the submission of the fiscal year 2005 budget request.

   Weapons Activities

   The conference agreement provides $6,272,511,000 for Weapons Activities instead of $6,117,609,000 as proposed by the House and $6,473,814,000 as proposed by the Senate.

   Reprogramming.--The conference agreement provides limited reprogramming authority within the Weapons Activities account without submission of a reprogramming to be approved in advance by the House and Senate Committees on Appropriations. The reprogramming thresholds will be as follows: directed stockpile work, science campaigns, engineering campaigns, inertial confinement fusion, advanced simulation and computing, pit manufacturing and certification, readiness campaigns, and operating expenses for readiness in technical base and facilities. This should provide the needed flexibility to manage these programs.

   In addition, funding of not more than $5,000,000 may be transferred between each of these categories and each construction project subject to the following limitations: only one transfer may be made to or from any program or project; the transfer must be necessary to address a risk to health, safety or the environment or to assure the most efficient use of weapons activities funds at a site; and funds may not be used for an item for which Congress has specifically denied funds or for a new program or project that has not been authorized by Congress.

   Congressional notification within 15 days of the use of this reprogramming authority is required. Transfers during the fiscal year which would result in increases or decreases in excess of $5,000,000 or which would be subject to the limitations outlined in the previous paragraph require prior notification and approval from the House and Senate Committees on Appropriations. Failure to notify the Committees within the 15-day period will result in denial of the reprogramming.

   W80 life extension project.--The conferees have had a special interest in the W80 warhead stockpile life extension project (W80 LEP) and have consistently asked for unambiguous answers from the NNSA and the Air Force justifying the significant budget increases and the aggressive schedule for the W80 LEP. In fiscal year 2000, the Nuclear Weapons Council agreed to a W80 LEP schedule assuming a W80 LEP First Production Unit (FPU) in fiscal year 2006. Based on information provided by the Department of Energy submitted subsequent to the fiscal year 2004 budget request, the conferees understand that both the NNSA and the Department of Defense have agreed to a revised W80 LEP baseline delaying the FPU requirement until 4th quarter fiscal year 2007. Because the fiscal year 2006 FPU baseline milestone resulted in a very aggressive W80 LEP program, the conferees reduced the significant budget request for the W80 LEP in fiscal year 2004.

   Directed stockpile work.--The conference agreement includes $1,340,286,000 for directed stockpile work instead of $1,343,786,000 as proposed by the House and $1,367,786,000 as proposed by the Senate.

   The conference agreement provides $412,650,000 for stockpile research and development, a reduction of $20,500,000 from the budget request. The budget adjustments in stockpile R&D include a reduction of $13,000,000 from the budget request consistent with the W80 rebaselining reductions and a $7,500,000 reduction in the robust nuclear earth penetrator study budget request.

   Advanced Concepts.--The conferees provide $6,000,000 for Advanced Concepts, as proposed by the Senate, of which $4,000,000 is available for obligation only after the official delivery of a revised Nuclear Weapons Stockpile plan to Congress and a 90-day review period by the House and Senate Committees on Appropriations and the Committees on Armed Services. The revised Nuclear Weapons Stockpile plan should detail the Department of Defense and Department of Energy's program plan and detailed schedule to achieve the President's proposed inventory adjustments to the Total Strategic Stockpile, including the Strategic Active Stockpile and Inactive Stockpile, by weapon systems and warhead type.

   Robust Nuclear Earth Penetrator.--The conferees provide $7,500,000 for the Robust Nuclear Earth Penetrator study, instead of $5,000,000 as proposed by the House and $15,000,000 as proposed by the Senate. The conferees remind the Administration that none of the funds provided may be made used for activities at the engineering development phases, phase 3 or 6.3, or beyond, in support of advanced nuclear weapons concepts, including the Robust Nuclear Earth Penetrator.

   The conference agreement provides $409,746,000 for stockpile maintenance, an increase of $4,000,000 from the budget request. Within the funds available for stockpile maintenance the conference agreement provides a $10,000,000 increase for activities at the Y-12 plant in Tennessee to complete closeout W87 LEP activities in fiscal year 2004. The conference agreement includes a $6,000,000 reduction in W80 stockpile maintenance activities consistent with the W80 rebaselining. The conference agreement provides $201,885,000 for stockpile evaluation, a reduction of $1,000,000 from the budget request consistent with the W80 rebaselining reductions. In the dismantlement/disposal program the conferees have provided $37,722,000, the same as the budget request. In the production support program, the conferees have provided $271,113,000, a reduction of $7,000,000 from the budget request. In field engineering, training and manuals program, the conferees have provided $7,170,000, the same as the budget request.

   Campaigns.--Funding for individual campaigns is shown on the accompanying table. The conferees agree with the House language requesting detailed project baseline data for each campaign showing the total, annual, and five-year costs, schedule, scope, and deliverables for individual project activities as part of the annual budget request.

   From within funds provided for the various campaigns, $4,300,000 is provided for the University Research Program in Robotics.

   For science campaigns, the conference agreement provides $250,548,000, a reduction of $19,000,000 from the budget request. The conference agreement provides $57,849,000 for primary certification, a reduction of $8,000,000 from the budget request. In the dynamic materials properties program, the conferees have provided $82,251,000 the same as the budget request. Using $5,000,000 within the funds provided for dynamic materials properties, the NNSA is directed to make full use of existing and developing capabilities for materials properties studies, including the subcritical experiments at the U1a facility, Joint Actinide Shock Physics Experimental Research facility and the Atlas facility at the Nevada Test Site. In the advanced radiography program, the conferees have provided $55,985,000, a reduction of $10,000,000 from the budget request. In the secondary certification and nuclear systems margins program, the conferees have provided $54,463,000, a reduction of $1,000,000 from the budget request.

   For engineering campaigns, the conference agreement provides $344,387,000, an increase of $13,200,000 over the budget request. Enhanced surety is funded at $32,974,000, a reduction of $5,000,000 from the request, consistent with the W80 rebaselining reductions. In the weapons system engineering certification program, the conferees have provided $27,238,000, a reduction of $1,000,000 from the budget request. In the nuclear survivability program, the conferees have provided $22,977,000, a reduction of $1,000,000 from the budget request. In the enhanced surveillance program, the conferees have provided $91,781,000, a reduction of $3,000,000 from the budget request. In the advanced design and production technologies program, the conferees have provided $77,917,000, a reduction of $2,000,000 from the budget request.

   Engineering campaign construction projects.--The conference agreement provides $87,000,000, an increase of $25,200,000 over the budget request, for Project 01-D-108, Microsystem and engineering science applications (MESA) at Sandia, in New Mexico.

   Inertial Confinement Fusion (ICF) Ignition and High Yield.--The conferees include $517,269,000 for the inertial confinement fusion ignition and high yield program, an increase of $50,500,000 over the budget request.

   National Ignition Facility.--Within the funds provided, $150,000,000 is for National Ignition Facility (NIF) construction, Project 96-D-111, and $367,269,000 is for the ICF ignition and high yield program. Within the funds provided for the NIF program, the conferees direct the Department to fund a public-private research and development activity focused on damage resistant gratings at not less than $1,000,000.

   The conferees note that NIF construction funds and NIF program funds have been provided consistent with the Administration's request, but are concerned that these budget figures are not consistent with the revised NIF baseline due to the Department's decision to fund a variety of NIF-related projects and programs within the overall NIF program. While the conferees are supportive of these activities and believe them necessary to achieve the goal of ignition, they strongly recommend that the Department submit future budgets that fund these activities as one or more separate line items.

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   Inertial Fusion Technology.--The conferees also include $25,000,000 to continue development of high average power lasers and supporting science and technology, the budget request of $10,467,000 for the Naval Research Laboratory, and $63,132,000 for the University of Rochester, an increase of $20,000,000 over the budget request. The additional funding is provided to the University of Rochester's Laboratory for Laser Energetics for the OMEGA Extended Performance (EP) Facility in support of the Nation's stockpile stewardship program. The conferees expect additional funding requirements to complete Omega EP construction will be included by the Department in future budget requests. Additionally, the conferees provide funding of $4,000,000 to initiate assessments and initial development and testing of Z-Pinch inertial fusion energy.

   Petawatt Lasers.--The conferees also include an additional $4,500,000 for university grants and other support. Within this amount, $2,500,000 is provided for the continued development of an ultra short-pulse petawatt laser at the University of Texas; and $2,000,000 is provided to continue short-pulse laser development and research at the University of Nevada-Reno.

   The conferees agree with the Senate position that high intensity laser physics enables major new areas of science and engineering endeavor in the United States and that advances in this field will enable important progress in critical aspects of basic science, fusion energy, and national security. A robust, coordinated program in high intensity lasers will affordably maintain U.S. leadership in this critically important area. Accordingly, the conferees direct the Department to pursue a joint high intensity laser program with the National Science Foundation. The conferees further direct the NNSA and the Department's Office of Science to develop, in collaboration with the NSF, a report that identifies the benefits and disadvantages of multi-agency coordinated research in high intensity laser science and delineates how a joint program in this area will be structured. This report shall be delivered to the House and Senate Committees on Appropriations no later than April 15, 2004.

   For advanced simulation and computing, the conference agreement provides $725,626,000, as proposed by the Senate. From within available funds for advanced simulation and computing, $6,000,000 is provided for the development of a data-intensive computing center to be operated by the Ohio Supercomputing Center at its Springfield, Ohio site; $3,000,000 is provided to demonstrate three-dimensional chip scale packaging integrated with spray cooling. The conferees direct the University Partnerships program be funded at the budget request.

   For the pit manufacturing and certification campaign, the conference agreement provides $298,528,000 a reduction of $21,700,000 from the budget request. The conference agreement provides $126,773,000 for W88 pit manufacturing and $108,592,000 for W88 pit certification, the same as the budget request. Providing the requested level of funding will ensure that the NNSA maintains its commitment to produce a certified W88 pit by 2007. The conference agreement provides $10,000,000 for Pit Manufacturing Capability instead of $4,700,000 as proposed by the House and $19,700,000 as proposed by the Senate. The conference agreement provides $10,810,000 for the Modern Pit Facility, a reduction of $12,000,000 from the request. The conferees agree with the House Report that until the Congress reviews the revised future Stockpile plan it is premature to pursue further decisions regarding the Modern Pit Facility.

   For readiness campaigns, the conference agreement provides $247,097,000, a reduction of $10,000,000 from the budget request. Funding for the Stockpile readiness campaign includes $55,158,000, the same as the budget request. High explosives manufacturing and weapons assembly/disassembly readiness is funded at $23,649,000, instead of $19,649,000 as proposed by the House and $27,649,000 as proposed by the Senate. The $6,000,000 reduction to the budget request for this program slows the significant program growth from the previous year. The conference agreement provides $33,397,000 for Non-nuclear readiness, a reduction of $4,000,000 as proposed by the House, consistent with the W80 rebaselining reductions. Funding for the tritium readiness campaign includes $134,893,000, the same as the budget request.

   Readiness in technical base and facilities.--For readiness in technical base and facilities, the conference agreement provides $1,027,773,000 for operations of facilities, an increase of $55,000,000 over the budget request, and includes several funding adjustments.

   Within funds provided for operations of facilities, the conferees direct that, at a minimum, an additional $5,000,000 be provided for the Pantex Plant in Texas and an additional $5,000,000 be provided for the Y-12 Plant in Oak Ridge, Tennessee; an additional $5,000,000 for the Kansas City Plant to address pension liability issues; and an additional $10,000,000 for Los Alamos National Laboratory. The conference agreement provides an additional $5,000,000 to support operation of facilities at the Nevada Test Site, (NTS) including the Device Assembly Facility, the Joint Actinide Shock Physics Experimental Research facility, operations associated with the Atlas relocation project, U1a operations, general plant projects and other NTS support facilities. An additional $25,000,000 is provided for continued facility upgrades, refurbishments, operations and maintenance costs associated with and for the National Center for Combating Terrorism (NCCT). Within the funds available for the NCCT, not less than $5,000,000 is provided jointly to the Institute for Security Studies at UNLV and the Consortium of Terrorism Studies and Fire Science at the University of Nevada, Reno. The conference agreement includes an additional $5,000,000 for modifications of the Z-beamlet laser to the Z machine operations at Sandia. Within available funds, the conference agreement includes $3,000,000 for technology transfer activities as proposed by the Senate. The conference agreement provides $500,000 within available funds for the NNSA to utilize the capabilities of its national laboratories for a joint effort with the U.S. Consumer Product Safety Commission on sensor technologies and applications as proposed by the Senate.

   For program readiness, the conference agreement provides $131,093,000 the same as the budget request.

   Test Readiness.--Within funds provided for program readiness activities the conference agreement provides $24,891,000 for test readiness in Nevada, the same as the budget request. The conferees recognize that test readiness activities in Nevada were allowed to atrophy during the last decade under the current nuclear test moratorium as documented by the DOE Inspector General and the NNSA's internal assessments. However, the conferees expect the NNSA to focus on restoring a rigorous test readiness program that is capable of meeting the current 24-month requirement before requesting significant additional funds to pursue a more aggressive goal of an 18-month readiness posture. The conferees expect the House and Senate Appropriations Committees be kept informed on the progress of restoring the current test readiness program. The conferees remind the Administration that Congressional authorization must be obtained before proceeding with specific activities that support the resumption of testing.

   For special projects, the conference agreement provides $51,675,000, an increase of $8,700,000 over the budget request. Within funds provided for special projects, the conference agreement includes $6,900,000 for the New Mexico Education Enrichment Foundation; $1,000,000 for the preservation of Manhattan Project historical sites; $500,000 for the Atomic Testing History Institute; $1,000,000 for the UNLV Research Foundation; $2,000,000 for stockpile stewardship research at the Nevada terarwatt facility at the University of Nevada-Reno; $3,000,000 is provided for Total Asset Management Suite (TAMS) technology to be applied to a defense lab or site; $3,000,000 is provided for a defense and security research center; and the budget request for the Los Alamos County Schools.

   The conference agreement includes $76,189,000 for materials recycle and recovery, the same as the budget request.

   The conference agreement includes the budget request of $16,006,000 for containers, $11,365,000 for storage, and $89,694,000 for nuclear weapons incident response.

   Construction projects.--For construction projects in RTBF, the conference agreement includes $260,440,000, a $12,936,000 reduction from the budget request. The conferees included the following adjustments to reflect the latest program planning assumption. The conference agreement provides $10,000,000 for Project 04-D-125, Chemistry and Metallurgy Facility Replacement (CMR-R) at Los Alamos in New Mexico, a reduction of $10,500,000 from the budget request; $11,300,000 for Project 03-D-121, Gas Transfer Capacity Expansion, at Kansas City Plant, Kansas City, a reduction of $4,000,000 from the budget request; $3,564,000 for Project 04-D-103, Project Engineering and Design (PED), various locations, an increase of $1,564,000 from the budget request.

   Facilities and infrastructure recapitalization.--The conference agreement includes $240,123,000 for the facilities and infrastructure (F&I) recapitalization program, a reduction of $25,000,000 from the budget request due to funding constraints. The conferees agree with the House direction to procure decontamination, decommissioning and demolition services through an open competitive process to the greatest extent practicable. At least $45,000,000 is to be used to dispose of excess facilities.

   Secure Transportation Asset.--The conference agreement provides $162,400,000 for secure transportation asset, as proposed by the Senate. The fiscal year 2003 supplemental included an additional $20,000,000 for the secure transportation asset and the conferees direct the use of the carryover balances for fiscal year 2004. The secure transportation asset program provides for the safe, secure movement of nuclear weapons, special nuclear material, and weapon components between military locations and nuclear complex facilities within the United States.

   Safeguards and security.--The conference agreement includes $585,750,000, the same as the budget request, for safeguards and security activities at laboratories and facilities managed by the National Nuclear Security Administration. The conferees are aware that there are unique security requirements at the Y-12 plant in Tennessee and that additional resources are needed to address the current deficiencies. The conferees direct the NNSA to address those security needs within available funds or propose a reprogramming action to provide the necessary resources.

   Funding adjustments.--The conference agreement includes an adjustment of $28,985,000 for a security charge for reimbursable work, as proposed in the budget, and the

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use of $74,753,000 in prior year balances. In addition, the conferees direct the Department to use $23,000,000 of prior year funds to meet a portion of the Department's liability stemming from the termination of the contract with the Ohio Valley Electric Corporation for power to supply the Portsmouth Gaseous Diffusion Plant.

   Defense Nuclear Nonproliferation

   The conference agreement provides $1,327,612,000 for Defense Nuclear Nonproliferation instead of $1,280,195,000 as proposed by the House and $1,340,195,000 as proposed by the Senate.

   Availability of funds.--The conference agreement makes the funds available until expended as proposed by the Senate.

   Liability Protection for U.S. interests in Russia.--The conferees are greatly concerned with the continued impasse between the United States and Russia on negotiations over liability protections for U.S. companies and personnel conducting nonproliferation work in Russia. The conferees place great importance on the continued successful implementation of the Department's nuclear nonproliferation activities and are concerned that in allowing the government-to-government implementing agreements to lapse for the Nuclear Cities Initiative and Plutonium Disposition activities, the Administration is creating unnecessary impediments to the effective implementation of nuclear nonproliferation programs. Additional delays in program implementation not only carry the risk of disrupting important nuclear nonproliferation activities but also exacerbate the problem of ever-increasing prior year balances carried by the Nuclear Nonproliferation program each year. The conferees urge a speedy resolution to the liability negotiations.

   Nonproliferation and verification research and development.--The conference agreement provides $233,373,000 for nonproliferation and verification research and development, an increase of $29,500,000 from the request. The conference agreement includes $20,000,000, the same as the budget request, for ground-based systems for treaty monitoring.

   The conference agreement does not adopt the House language requiring all nonproliferation and verification research and development funds be competed using the Technical Support Working Group (TSWG) Broad Area Announcement process.

   From within available funds for research and development activities, $7,000,000 is provided to support ongoing activities at the Remote Sensing Test and Evaluation Center (RSL) at the Nevada Test Site to recover eroding emergency response infrastructure, replace aging equipment, and upgrade current technology. From within the funds provided to RSL, the recommendation includes $2,000,000 for the University of Nevada-Reno for the development of chemical, biological, and nuclear detection sensors.

   The conference agreement provides $3,000,000 for the Incorporated Research Institutions for Seismology PASSCAL Instrument Center. The conferees intend fiscal year 2004 to be the last year of funding for the PASSCAL Instrument Center provided for within this account. Within available funds, the NNSA is directed to provide $15,000,000 in support of the nuclear and radiological national security program. The conference agreement provides $2,500,000 for the University of South Florida Center for Biological Defense; $1,000,000 for the George Mason University Center for Biodefense; and $1,000,000 for SUNY-Binghamton Advanced Sensor Design and Threat Detection.

   The conferees continue to support more opportunity for open competition in appropriate areas of the nonproliferation and verification research and development program. The conferees expect the Department to continue to implement recommendations provided by the external review group in support of open competition and direct the Department to continue a free and open competitive process for at least 25 percent of its research and development activities during fiscal year 2004 for ground-based systems treaty monitoring. The competitive process should be open to all Federal and non-Federal entities. From within funds provided for ground-based systems treaty monitoring, the conferees include $2,500,000 in support of the Caucasus Seismic Information Network. These funds are provided outside the 25 percent of ground-based systems treaty monitoring funds to be awarded by the Department through a free and open competitive process.

   Nonproliferation and international security.--The conference agreement provides $110,734,000 for nonproliferation and international security, an increase of $9,000,000 over the budget request. Within the additional funds, the conferees provide the budget request of $3,000,000 for accelerated Reduced Enrichment for Research and Test Reactors (RERTR) and $1,000,000 for the HEU Research Reactor Fuel Purchase initiative as proposed under the Accelerated Materials Disposition proposal. The conferees provide $5,000,000 for initiatives focused on removing nuclear weapons-usable materials from vulnerable sites around the world as proposed by Senate.

   Nonproliferation programs with Russia.--The conferees continue to be concerned that too much of the money for Russian programs is being spent in the United States at the Department of Energy's own facilities rather than going to the facilities in Russia. The Department is directed to submit a plan to the Committees on Appropriations that shows how the ratio of the funding within each program that is spent in Russia versus the funding that remains in the United States for the Department's contractors will be increased significantly in each subsequent fiscal year.

   International materials protection, control and cooperation (MPC&A).--The conference agreement includes $260,000,000 for the MPC&A program, an increase of $34,000,000 over the budget request. Within funds provided for MPC&A, the conferees provide $28,000,000 for accelerating the Second Line of Defense MegaPorts Initiative and other critical border activities and $5,000,000 for other high priority MPC&A activities, to include countries outside the Former Soviet Union (FSU) such as Pakistan, India, and China.

   Accelerated Materials Disposition.--The conferees provide no funding for the Accelerated Materials Disposition (AMD) initiative. The conferees continue to be highly supportive of the successful U.S./Russian HEU Purchase Agreement to blend down 500 metric tons of highly enriched uranium over twenty years. The conferees are supportive of the House language on the AMD proposal and direct the Department to develop a rigorous risk-based priority setting process for allocating budget resources to the activity with the highest nonproliferation benefit. The conferees provide the funding request for accelerated Reduced Enrichment for Research and Test Reactors (RERTR) and the HEU Research Reactor Fuel Purchase under Nonproliferation and International Security account and the accelerated Material Consolidation and Conversion (MCC) program in the International materials protection, control and cooperation (MPC&A) account.

   Russian Transition Initiatives.--The conference agreement provides $40,000,000, the same as the budget request, for the Initiatives for Proliferation Prevention (IPP) program and the Nuclear Cities Initiative (NCI). The conferees are troubled by the continuing liability provision impasse that caused the lapsing of the NCI implementing agreement. The conferees urge the Department to work aggressively with the State Department and their Russian counterparts to conclude the liability provision negotiations expeditiously prior to significant delays to nonproliferation work in Russia.

   HEU transparency implementation.--The conference agreement provides $18,000,000, the same as the budget request.

   International nuclear safety.--The conference agreement provides $4,000,000, a reduction of $10,083,000 from the budget request, for the international nuclear safety program. The conferees note the successful conclusion of the Soviet-designed reactor safety program in fiscal year 2003 and expect the Department to close out all remaining International Nuclear Safety activities in fiscal year 2004 with the funds provided.

   Elimination of weapons-grade plutonium production.--The conference agreement includes the budget request of $50,000,000 for the elimination of weapons-grade plutonium production program.

   Fissile materials disposition.--The conference agreement provides $656,505,000 for fissile materials disposition, the same as the budget request. The conferees direct the Department to continue the thorium-based fuel cycle program currently being conducted by the Russian Research Centre Kurchatov Institute in conjunction with their U.S. industrial partners. Within available funds the conference agreement provides $4,000,000 to be used in Russia for testing and evaluation of those test results to confirm this thorium-based fuel's plutonium disposition qualities in Russian VVER-1000 reactors and other non-proliferation and environmental benefits. The testing will include irradiation experiments at the IR-8 reactor at Kurchatov Institute. The objective of this testing and evaluation is to assess the timeframe, cost, and technical feasibility of this thorium-based fuel cycle for plutonium disposition in Russia, with a goal of lead test assemblies in 2006 in a Russian VVER-1000 nuclear power plant.

   Funding adjustments.--The conference agreement includes the use of $45,000,000 of prior year balances.

   Naval Reactors

   The conference agreement provides $766,400,000 for Naval Reactors.

   Funding adjustments.--The conference agreement includes the use of $2,000,000 of prior year balances. In addition, the conferees direct the Department to use $2,000,000 of prior year balances to meet a portion of the Department's liability stemming from the termination of the contract with the Ohio Valley Electric Corporation for power to supply the Portsmouth Gaseous Diffusion Plant.

   Office of the Administrator

   The conference agreement provides $339,980,000 for the Office of the Administrator instead of $341,980,000 as proposed by the House and $337,980,000 as proposed by the Senate. These funds are available until expended as proposed by the Senate. Statutory language providing $12,000 for official reception and representation expenses has also been included.

   The conferees direct the Administrator of NNSA to provide at least $2,500,000 for the NNSA Office of Project Management and Engineering Support to continue its project oversight work and to provide training and mentoring programs to improve the skills of NNSA program and project managers.

   Defense Nuclear Nonproliferation.--The conference agreement provides $58,000,000 for the

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Federal employees in the Office of Defense Nuclear Nonproliferation. None of these funds may be taxed by the NNSA for any purpose without prior notification and approval by the House and Senate Committees on Appropriations.

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Sec. 308. The conference agreement includes a provision proposed by the House and Senate allowing the Administrator of the National Nuclear Security Administration to authorize certain nuclear weapons production plants, including the Nevada Test Site, to use not more than 2 percent of available funds for research, development and demonstration activities. This provision has been carried in previous Energy and Water Development Appropriations Acts.

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Provisions not adopted by the conference.--The conference agreement deletes language proposed by the Senate that: changes the arrangement for funding from the power marketing administrations for Corps of Engineers hydropower operation and maintenance activities; the limitation on funds available for engineering development of the robust nuclear earth penetrator; transfer responsibility for Subtitle D of the Energy Employees Occupational Illness Compensation Program Act (EEOICPA) from the Department of Energy to the Department of Labor; and that requires a report on administrative expenditures by DOE for EEOICPA activities.

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Charts of Funding Recommendations for NNSA Activities (re Weapons, Defense Nuclear Nonproliferation and Naval Reactors):

H11110           H11111           H11112           H11113           H11114

1D) Nuclear Weapons and Nonproliferation - Excerpts from H.R. 1588 National Defense Authorization Conference Report

TITLE III--OPERATION AND MAINTENANCE

Legislative Provisions Adopted

Comptroller General review of Arctic Military Environmental Cooperation Program (sec. 324)

The Senate amendment contained a provision (sec. 323) that would authorize the Secretary of Defense to expand a cooperative environmental technology program to countries in the Western Pacific regions. The Secretary, with the concurrence of the Secretary of State, would provide cooperative assistance on activities that contribute to the demonstration of environmental technology in the Arctic and Pacific regions, with certain limitations and exceptions. The primary focus of the program would be technology projects and activities related to radiological contamination.

The House bill contained no similar provision.

The House recedes with an amendment that would require the Comptroller General to conduct a review of the Arctic Military Environmental Cooperation (AMEC) Program, the existing and proposed technology demonstration role of the program in U.S. nonproliferation efforts, and the relationship to the Cooperative Threat Reduction (CTR) Program. Based on this review, the Comptroller General would submit a report to Congress that assesses the Western Pacific conditions that may require an expansion of AMEC technology development and demonstration, the foreign funding contributions for AMEC activities, the use of AMEC by CTR and G-8 Global Partnership Against the Spread of Weapons and Materials of Mass Destruction Initiative, the importance of AMEC to the disarmament and nonproliferation functions of CTR, and the program's future year funding and program plans.

   The conferees note that no funds were included in the budget request for fiscal year 2004 or the Future Years Defense Program (FYDP) for the AMEC program. In the event the Secretary of Defense intends to continue the AMEC program and seek authorization to expand the program to the Western Pacific regions, the conferees expect the development of a comprehensive funding and program plan, and the identification of funding and projects in the FYDP. Otherwise, the Secretary should terminate the program. The conferees are aware that there is growing international interest in the activities of the AMEC program. The conferees encourage and support broad-based international programs that involve contributions by all participants.  

TITLE X – GENERAL PROVISIONS

Legislative Provisions Adopted

Annual report concerning dismantlement of strategic nuclear warheads (sec. 1033)

   The House bill included a provision (sec. 1056) that would require the President to submit an annual report to Congress on warheads dismantled in the preceding year within the boundaries of the Treaty Between the United States of America and the Russian Federation on Strategic Offensive Reductions (known as the Moscow Treaty), and dismantlements pursuant to the Treaty planned for the current calendar year.

   The Senate amendment contained no similar provision.

   The Senate recedes with an amendment that would require the Director of Central Intelligence to provide an annual report, while the Moscow Treaty is in force, on dismantlement of warheads by the Russian Federation. The report would be submitted to the Committees on Armed Services and Foreign Relations, and the Select Committee on Intelligence of the Senate, and to the Committees on Armed Services and International Relations, and the Permanent Select Committee on Intelligence of the House of Representatives.

   The conferees note that Congress receives information on U.S. warhead dismantlement in the Weapon System Classified Annex to the annual budget justification material provided by the Department of Energy. The conferees direct that this material be annotated to indicate which of the dismantlements described in the annex are a result of Moscow Treaty compliance activities. The conferees further direct that, to the extent possible, this information be included in the unclassified annual Department of Energy budget justification material.

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Legislative Provisions Not Adopted

Commission on Nuclear Strategy of the United States

   The House bill contained a provision (sec. 1053) that would establish a Commission on Nuclear Strategy of the United States to assess and make recommendations about current U.S. strategy, as described by the Nuclear Posture Review and other planning documents, as well as possible alternative strategies that could be pursued over the next 20 years. The Commission would have broad purview to consider matters of policy, force structure, stockpile stewardship, and estimates of threats and force requirements, and would have the authority to hold hearings and take testimony.

   The Senate amendment contained no similar provision.

   The House recedes.  

 TITLE XII – MATTERS RELATING TO OTHER NATIONS

Legislative Provisions Not Adopted

Clarification and extension of authority to provide assistance for international nonproliferation activities

   The Senate amendment contained a provision (sec. 1204) that would authorize the Department of Defense to continue to support activities of the United Nations Monitoring, Verification and Inspection Commission and limit the amount of funding for such activities pursuant to section 1505 of the Weapons of Mass Destruction Control Act of 1992 (22 U.S.C. 5859a) to $15.0 million.

   The House bill contained no similar provision.

   The Senate recedes.

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

Legislative Provisions Adopted

Specification of Cooperative Threat Reduction programs and funds (sec. 1301)

   The House bill contained a provision (sec. 1301) that would define the programs and funds that are Cooperative Threat Reduction (CTR) programs and funds, define the funds as those authorized to be appropriated in section 301 of this Act, and specify that CTR funds shall remain available for obligation for three fiscal years.

   The Senate amendment contained an identical provision (sec. 1301).

   The conferees agree to include the provision.

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   Funding allocations (sec. 1302)

   The House bill contained a provision (sec. 1302) that would authorize $450.8 million for the Cooperative Threat Reduction (CTR) Program. The provision would also authorize specific amounts for each CTR program element, require notification to Congress 30 days before the Secretary of Defense obligates and expends fiscal year 2004 funds for purposes other than those specifically authorized, and provide limited authority to obligate amounts for a CTR program element in excess of the amount specifically authorized for that purpose. Regarding specific program elements, the House provision would authorize $86.4 million for strategic offensive arms elimination in Russia, $171.5 million for chemical weapons destruction in Russia, and $11.1 million for defense and military contacts.

   The Senate amendment contained a similar provision (sec. 1302) that, consistent with the budget request for the specific program elements, would authorize $57.6 million for strategic offensive arms elimination in Russia, $200.3 million for chemical weapons destruction in Russia, and $11.0 million for defense and military contacts.

   The conferees agree to a provision that would authorize $450.8 million for the CTR Program and, with respect to the specific program elements, $57.6 million for strategic offensive arms elimination in Russia, $200.3 million for chemical weapons destruction in Russia, and $11.1 million for defense and military contacts.

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Limitation on use of funds until certain permits obtained (sec. 1303)

   The House bill contained a provision (sec. 1303) that would require the Secretary of Defense to determine for new or incomplete Cooperative Threat Reduction (CTR) projects what permits will be needed and obtain copies of those permits before obligating more than 35 per cent of a CTR project's total cost.

   The Senate amendment contained no similar provision.

   The Senate recedes with an amendment that would require the Secretary to determine for new or incomplete CTR construction projects what permits will be needed and, for new construction projects, to obtain copies of those permits required to begin construction, before obligating more than 40 percent of a CTR construction project's total cost. The amendment provides authority for the Secretary to waive this limitation on funds if it is in the national interest.

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 Annual certifications on use of facilities being constructed for Cooperative Threat Reduction projects or activities (sec. 1307)

   The Senate amendment contained a provision (sec. 1303) that would require the Secretary of Defense to provide the congressional defense committees with an annual certification that would indicate whether each facility constructed for a Cooperative Threat Reduction (CTR) project or activity will be used for its intended purpose by the host country, and whether the host country remains committed to using the facility for its intended purpose.

   The House bill contained no similar provision.

   The House recedes with an amendment that would require the Secretary of Defense to certify also that actions have been taken to ensure security at each facility, including secure transportation of any materials, substances or weapons to, from, or within the facility.

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Authority to use Cooperative Threat Reduction funds outside the former Soviet Union (sec. 1308)

   The Senate amendment contained a provision (sec. 1304) that would authorize the President to obligate and expend Cooperative Threat Reduction (CTR) funds for a fiscal year, and any CTR funds that remain available for obligation from any previous fiscal year, for proliferation threat reduction projects or activities in countries outside the states of the former Soviet Union. The amount that may be obligated in a fiscal year for this purpose would not exceed $50.0 million.

   The House bill contained no similar provision.

   The House recedes with an amendment that would require the President to make certain determinations and to notify Congress in writing within 10 days after obligating funds under this authority of those determinations as follows: (1) that the project or activity will assist the United States in the resolution of a critical emerging proliferation threat; or permit the United States to take advantage of opportunities to achieve long-standing nonproliferation goals; (2) that the Department of Defense is the entity of government most capable of carrying out the project or activity; and (3) that the project or activity will be completed in a short period of time. The written notification is to include a justification for the determinations and a description of the scope and duration of the project or activity.

   The conferees expect that the President would assign such projects or activities to the agency whose mission is most appropriate to the project or activity. The conferees further expect that this authority will be used only for projects or activities that are expected to be completed within a short period of time.

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Legislative Provisions Not Adopted

   Authority and funds for nonproliferation and disarmament

   The House bill contained a provision (sec. 1305) that would authorize the Secretary of Defense to transfer $78.0 million in prior year Cooperative Threat Reduction funds from the Department of Defense to the Department of State for disarmament and nonproliferation purposes outside the territory of the former Soviet Union.

   The Senate amendment contained no similar provision.

   The House recedes.  

TITLE XXXI - DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Legislative Provisions Adopted

National Nuclear Security Administration (sec. 3101)

   The House bill contained a provision (sec. 3101) that would authorize $8.8 billion for the National Nuclear Security Administration (NNSA), including funds for weapons activities, defense nuclear nonproliferation programs, naval reactor programs, and the Office of the Administrator.

   The Senate amendment contained a similar provision (sec. 3101).

   The conferees agree to include a provision that would authorize $8.9 billion for NNSA.

   The budget request included $405.7 million in stockpile maintenance for directed stockpile work. The conferees agree to authorize $415.7 million for directed stockpile work, an increase of $10.0 million, to support activities at the Y-12 Plant in Oak Ridge, Tennessee, to replace aging manufacturing process equipment and support systems at Y-12.

   The budget request included $65.8 million for the primary certification campaign. The conferees agree to $64.8 million, a decrease of $1.0 million.

   The budget request included $66.0 million in operations and maintenance for the advanced radiography campaign. The conferees agree to authorize $61.0 million for the advanced radiography campaign, a decrease of $5.0 million. The conferees urge NNSA to focus on delivering the radiographic tools essential to its nearer term production requirements.

   The budget request included $38.0 million for the enhanced surety campaign. The conferees agree to authorize $37.0 million for the enhanced surety campaign, a decrease of $1.0 million.

   The budget request included $94.8 million for the enhanced surveillance campaign. The conferees agree to authorize $92.8 million for the enhanced surveillance campaign, a decrease of $2.0 million.

   The budget request included $316.8 million in operations and maintenance for the inertial confinement fusion (ICF) and high yield campaign. The conferees agree to authorize $311.8 million for the ICF and high yield campaign, a decrease of $5.0 million. While the conferees believe diagnostics and target fabrication capabilities have been under emphasized in the past, the conferees question whether such a large budget increase could be executed effectively.

   The budget request included $713.3 million in operations and maintenance for the advanced simulation and computing campaign. The conferees agree to authorize $688.3 million for the advanced simulation and computing campaign, a decrease of $25.0 million.

   The budget request included $29.6 million for the high explosives manufacturing and weapons assembly and disassembly readiness campaign. The conferees agree to authorize $27.6 million for the high explosives manufacturing and weapons assembly and disassembly readiness campaign, a decrease of $2.0 million.

   The budget request included $37.4 million for the non-nuclear readiness campaign. The conferees agree to authorize $34.4 million for the non-nuclear readiness campaign, a decrease of $3.0 million.

   The budget request included $1.3 billion for Readiness in Technical Base and Facilities (RTBF). The conferees agree to authorize $1.4 billion, an increase of $106.3 million for the operations of facilities program to include a $7 million increase for facilities maintenance and legacy material stewardship at Y-12, and a $20.0 million increase for plant maintenance, plant projects and capital equipment at Pantex.

   The budget request included $50.0 million for RTBF to begin construction of a national security sciences building (project 04-D-104) at Los Alamos National Laboratory (LANL). The conferees agree to authorize $38.0 million for project 03-D-102, a decrease of $12.0 million. The national security sciences building at LANL, listed as 03-D-102, received an advanced appropriation in fiscal year 2003 of $12.0 million. The conferees note that construction projects should be authorized prior to obligation of funds.

   The budget request included $585.8 million for safeguards and security. The conferees agree to authorize $582.3 million for safeguards and security, a decrease of $3.5 million in physical and cyber security research and development. The conferees note that the proposed activities would be largely duplicative of research the Department of Energy requested in other defense activities. Of the amounts authorized for safeguards and security, the conferees agree to authorize the Department to expend appropriated funds available, not to exceed $8.0 million, for the planning, engineering, and design of a proposed Security Improvements project at the Y-12 National Security Complex.

   The budget request included $226.0 million for international nuclear materials protection and cooperation. The conferees agree to authorize $231.0 million, an increase of $5.0 million for the second line of defense program which helps to prevent nuclear materials from being smuggled across Russian and other international borders. The budget request included $30.0 million for accelerated materials disposition. The conferees agree to authorize $25.0 million for accelerated materials disposition, a decrease of $5.0 million. The conferees note their concern with the cost-effectiveness of this program.

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Defense environmental management (sec. 3102)

   The House bill contained a provision (sec. 3102) that would authorize $6.8 billion for the Department of Energy for defense environmental management (EM) activities for fiscal year 2004, including funds for defense site acceleration completion and defense environmental services.

   The Senate amendment contained a similar provision (sec. 3102) that would authorize $6.8 billion for defense environmental activities.

   The conferees agree to authorize $6.8 billion for defense environmental management, the amounts of the budget request, including $5.8 billion for defense site acceleration completion and $995.2 million for defense environmental services.

   The conferees support the continuing efforts of the Department of Energy to accelerate cleanup at all of the environmental management (EM) sites, which will result in reducing risk to the environment, workers, and the community, shortening cleanup schedules, and saving tens of billions of dollars across the EM complex. The conferees also support a policy that would take funds made available due to the cleanup completion of Fernald, Mound, Rocky Flats and other sites, and roll them into the remaining EM sites to help accelerate their completion even sooner, if possible.

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Other defense activities (sec. 3103)

   The House bill contained a provision (sec. 3103) that would authorize $497.3 million for the Department of Energy (DOE) for other defense activities for fiscal year 2004.

   The Senate amendment contained a similar provision (sec. 3103) that would authorize $465.1 million for DOE other defense activities.

   The conferees agreed to authorize $489.1 million, a reduction of $5.3 million below the budget request.

   The budget request included $4.3 million for program direction for energy security and assurance. The conferees agree to authorize no funds for these activities. These funds are requested for program direction costs for an operational component of this office that was transferred to the Department of Homeland Security (DHS) in fiscal year 2003. The conferees note that funding for this component should be included in the DHS budget.

   The budget request included $15.0 million for worker and community transition (WCT), including $2.7 million for program direction. The conferees agree to include $14.0 million for WCT, a reduction of $1.0 million to be taken out of the program direction activities. The conferees note that the request for programmatic funds drops 46 percent from fiscal year 2003, while program direction remains level. The conferees have included a proportional decrease to program direction.

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Defense nuclear waste disposal (sec. 3104)

   The House bill contained a provision (sec. 3104) that would authorize $430.0 million for defense nuclear waste disposal for fiscal year 2004.

   The Senate amendment contained a similar provision (sec. 3104) that would authorize $360.0 million for defense nuclear waste disposal.

   The conferees agree to authorize $392.5 million for defense nuclear waste disposal, a decrease of $37.5 million to the budget request. The conferrees note that the authorized amount for defense nuclear waste disposal reflects a $79.5 million increase to the fiscal year 2003 appropriated level.

   Energy supply (sec. 3105)

   The House bill contained a provision (sec. 3105) that would authorize $110.5 million for defense energy supply programs for fiscal year 2004

   The Senate amendment contained a similar provision (sec. 3105) that would authorize $110.5 million.

   The conferees agree to authorize $110.5 million for defense energy supply programs for fiscal year 2004, the amount of the budget request.

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Termination of requirement for annual updates of long-term plan for nuclear weapons stockpile life extension program (sec. 3111)

   The House bill contained a provision (sec. 3112) that would terminate certain annual reporting requirements related to stockpile life extension programs, effective December 31, 2004.

   The Senate amendment contained no similar provision.

   The Senate recedes with a technical amendment.

   The conferees note that this material should be included in the annual report submitted by the National Nuclear Security Administration on the overall stockpile stewardship program, as well as other required reports. The annual report just received by Congress was extremely late. The conferees expect subsequent reports to be submitted on time.

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Department of Energy project review groups not subject to Federal Advisory Committee Act by reason of inclusion of employees of Department of Energy management and operating contractors (sec. 3112)

   The House bill contained a provision (sec. 3114) that would allow an officer or employee of a management and operating (M&O) contractor of the Department of Energy, when serving on an advisory committee or review group for the Department on matters related to the Department's M&O contracts, to be treated as an officer or employee of the Department for the purposes of determining whether the group is an advisory committee

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within the meaning of section 3 of the Federal Advisory Committee Act (5 United States Code App.).

   The Senate amendment contained no similar provision.

   The Senate recedes.

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Readiness posture for resumption by the United States of underground nuclear weapons tests (sec. 3113)

   The Senate amendment contained a provision (sec. 3132) that would require the Secretary of Energy to achieve, and thereafter maintain, a posture of 18 months for resumption by the United States of underground nuclear tests. The Secretary of Energy would achieve this readiness posture by October 1, 2006. However, if, through the review conducted to comply with section 3142(c) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003, the Secretary determined that a different readiness posture was feasible and advisable, then the provision would require the Secretary to achieve, and thereafter maintain, that optimal test readiness posture.

   The House bill contained no similar provision.

   The House recedes with an amendment that would eliminate the requirement for the Secretary to identify an optimal test readiness posture in lieu of 18 months. Consistent with subsection 3142(c) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314), the Secretary determined that 18 months is the optimal test readiness posture. Furthermore, the amendment clarified that the readiness posture should be ``not more'' than 18 months for resumption by the United States of underground nuclear tests.

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Technical base and facilities maintenance and recapitalization activities (sec. 3114)

   The Senate amendment contained a provision (sec. 3133) that would require the Administrator for Nuclear Security to add discipline, criteria, and new requirements and limitations to the Operations of Facilities Program within the Readiness in Technical Base and Facilities (RTBF) Program.

   The House bill contained no similar provision.

   The House recedes with an amendment that would require the Administrator to submit a report to the congressional defense committees setting forth guidelines on how NNSA's current and future maintenance needs shall be met, including the types of criteria to be used. The goal of the guidelines included in the report should be to avoid NNSA maintenance backlogs. The Administrator of NNSA would be required to complete the selection of the Facilities and Infrastructure Recapitalization Program (FIRP) projects by December 31, 2004. The Operations of Facilities Program would remain a subprogram within the RTBF Program. Within the RTBF Program, the Deputy Administrator for Defense Programs would be required to appoint an individual manager to ensure the Operations of Facilities Program receives the focus and priority it requires. Finally, the amendment would require the Secretary of Energy to submit a detailed budget justification for the Operations of Facilities Program broken down into individual budget elements.

   The conferees note that FIRP was originally envisioned and introduced to Congress as a ten-year program with a narrow and specific goal of eliminating the enormous maintenance backlog, which had accumulated over many years. Accordingly, FIRP would terminate on September 30, 2011, at the end of the program's tenth year.

   The conferees are concerned that the NNSA has not placed enough priority on future maintenance and repair needs across the nuclear weapons complex. While FIRP seems to be making significant progress in addressing maintenance backlogs, the NNSA needs to make much more progress in addressing current and future maintenance and repair needs within the RTBF program.

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Continuation of processing, treatment, and disposition of legacy nuclear materials (sec. 3115)

   The Senate amendment contained a provision (sec. 3134) that would amend section 3137 of the National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398) that prohibited the Department of Energy (DOE) from decommissioning the F Canyon facility at the Savannah River Site until the Secretary of Energy and the Defense Nuclear Facilities Safety Board (DNFSB) jointly submits a report to the Committees on Armed Services of the Senate and the House of Representatives. The report would set forth an assessment of whether or not all materials present in the F Canyon are safely stabilized and future needs for fissile materials disposition can be met through H Canyon. The Senate provision would amend section 3137 of the National Defense Authorization Act for Fiscal Year 2001 by deleting the requirement that F Canyon be maintained in a high state of readiness and eliminating the DNFSB certification requirement. In addition, the provision would require the DOE to submit a report to the congressional defense committees and the DNFSB before commencing the decommissioning of F Canyon. The provision would retain the requirement that H Canyon be maintained in a high state of readiness to ensure the availability of H Canyon for any future canyon processing needs.

   The House bill contained no similar provision.

   The House recedes with a technical amendment.

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Repeal of prohibition on research and development of low-yield nuclear weapons (sec. 3116)

   The House bill contained a provision (sec. 3111) that would amend section 3136 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160). The provision would maintain the prohibition on development of new nuclear weapons with yields less than five kilotons, but would allow research on such weapons, including concept definition studies, feasibility studies, and detailed engineering design.

   The Senate amendment contained a similar provision (sec. 3131) that: (1) would repeal section 3136 of the National Defense Authorization Act for Fiscal Year 1994 and thereby end the prohibition on research and development of low-yield nuclear weapons; (2) would state that nothing in the provision should be construed as authorizing the testing, acquisition, or deployment of a low-yield nuclear weapon; (3) would require the Secretary of Energy to obtain specific congressional authorization before commencing the engineering development phase, or any subsequent phase, of a low-yield nuclear weapon; and (4) would require the Secretary of State, the Secretary of Defense and the Secretary of Energy to jointly submit to Congress, no later than March 1, 2004, a report assessing whether or not the repeal of section 3136 of the National Authorization Act for Fiscal Year 1994 would effect the ability of the United States to achieve its nonproliferation objectives and whether or not any changes in programs and activities would be required to achieve those objectives.

   The House recedes.

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Requirement for specific authorization of Congress for commencement of engineering development phase or subsequent phase of robust nuclear earth penetrator (sec. 3117)

   The Senate amendment contained a provision (sec. 3135) that would require the Secretary of Energy to obtain specific authorization from Congress to commence development engineering (phase 6.3) of the nuclear weapons development process, or any subsequent phase, of a robust nuclear earth penetrator weapon.

   The House bill contained no similar provision.

   The House recedes.

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Semi-annual financial reports on Defense Nuclear Nonproliferation Programs (sec. 3121)

   The Senate bill contained a provision (sec. 3142) that would require the Administrator for Nuclear Security to submit to the Committees on Armed Services of the Senate and House of Representatives a report every six months on the financial status of Defense Nuclear Nonproliferation Programs. Each semi-annual report would describe the amount of funds authorized to be appropriated for the fiscal year in which the report would be submitted, and include the aggregate amount appropriated for that fiscal year, the amounts obligated, committed, and disbursed as of the end of the reporting period, and the amounts that remain available for obligation. The first report would be required in fiscal year 2004.

   The House bill contained no similar provision.

   The House recedes with a clarifying amendment that would require the Administrator for Nuclear Security to submit to the Committees on Armed Services of the Senate and House of Representatives a report every six months on the financial status of the Defense Nuclear Nonproliferation Programs by program. Each semi-annual report would set forth the amount of funds available for the fiscal year in which the report would be submitted, the carry over or uncommitted balances, the unobligated and unexpended balances as of the beginning of the reporting period, the aggregate of any new funds available during the reporting period, and the uncommitted or unobligated and unexpended balances as of the end of the reporting period. The reports are due to the committees 30 calendar days after the end of each fiscal half of the fiscal year. The first report would be due April 30, 2004, and would cover the first six months of fiscal year 2004.

   Because the conferees are concerned with the high level of unexpended and unobligated balances in the Defense Nuclear Nonproliferation Programs, the conferees believe it is necessary that the program improve its budget management to expend funds in a timely and efficient manner without sacrificing oversight. The conferees believe that semi-annual financial reporting will assist the committees with tracking program expenditures to ensure that the national security benefit proposed by the Defense Nuclear Nonproliferation Programs can be realized.

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Report on reduction of excessive unobligated or unexpended balances for defense nuclear nonproliferation activities (sec. 3122)

   The Senate bill contained a provision (sec. 3143) that would require the Administrator for Nuclear Security to provide the Committees on Armed Services of the Senate and the House of Representatives with an aggressive plan to reduce the amount of funds obligated but not expended for the Defense Nuclear Nonproliferation Program if, at the end of fiscal year 2004, the program's obligated but not expended balances exceed 20 percent of the amount appropriated for the program in fiscal year 2004. This plan would be due not later than November 30, 2004. The purpose of the plan would be to provide the committees with the Department of Energy's strategic approach to addressing the low expenditures of defense nuclear nonproliferation appropriated funds from current and previous fiscal years.

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   The House bill contained no similar provision.

   The House recedes with technical amendments.

   The conferees believe the Defense Nuclear Nonproliferation Program should strive to attain the department-wide average of 15 percent obligated but not expended level per fiscal year. Currently, the funds available for the program include almost 50 percent uncosted and unexpended balances. The conferees believe the program must address these expenditure rates immediately by taking a more focused and aggressive approach to expending these funds without sacrificing accountability, management, and oversight. The conferees urge the program to consider innovative methods in developing and implementing such an approach, such as utilizing more robust information technology systems to better track project expenditure rates and contracting activities.

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Study and report relating to weapons-grade uranium and plutonium of the independent states of the former Soviet Union (sec. 3123)

   The House bill contained a provision (sec. 1308) that would require the Secretary of Defense to conduct a study and submit a report to Congress not later than one year after the date of enactment of this Act. The study would examine the costs and benefits of purchasing all former Soviet Union weapons-grade uranium and plutonium in fiscal year 2005 and safeguarding it from smuggling or theft until it could be rendered unusable for nuclear weapons.

   The Senate amendment contained no similar provision.

   The Senate recedes with an amendment that would require the Secretary of Energy to conduct a study and submit a report to Congress not later than one year after the date of enactment that would examine the feasibility, costs, and benefits of purchasing former Soviet Union weapons-grade uranium and plutonium excess to defense needs, and the feasibility and costs of safeguarding this material from theft until it can be rendered unusable for nuclear weapons. The conferees encourage the Secretary to include in the study an analysis of the feasibility of purchasing this material in one year, as well as other options in quantity and timing as the Secretary considers appropriate, and to consider several possible locations for safeguarding this material using risk of theft, cost, and practicality as metrics.

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Authority to Use International Nuclear Materials Protection and Cooperation program funds outside the former Soviet Union (sec. 3124)

   The Senate amendment contained a provision (sec. 3141) that would authorize the Secretary of Energy to conduct nuclear nonproliferation threat reduction activities and projects outside the states of the former Soviet Union for the International Nuclear Materials Protection and Cooperation program.

   The House bill contained no similar provision.

   The House recedes with an amendment that would require the President to make certain determinations and to notify the Congress in writing within 10 days after obligating funds under this authority of those determinations as follows: (1) that the project or activity will assist the United States in the resolution of a critical emerging proliferation threat; or permit the United States to take advantage of opportunities to achieve long-standing nonproliferation goals; (2) that the Department of Energy is the entity of government most capable of carrying out the project or activity; and (3) that the project or activity will be completed in a short period of time. The written notification is to include a justification for the determinations and a description of the scope and duration of the project or activity.

   The conferees expect that the President would assign such projects or activities to the agency whose mission is most appropriate to the project or activity. The conferees further expect that this authority will be used only for projects or activities that are expected to be completed within a short period of time.

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Requirement for on-site managers (sec. 3125)

   The House bill contained a provision (sec. 3117) that would require the Secretary of Energy to appoint a federal employee as an on-site manager before obligation of funds for any defense nuclear nonproliferation program that involves dismantlement, destruction, or storage facilities, or construction of a facility, and that is executed in a state of the former Soviet Union, if the total contribution by the Department of Energy is expected to exceed $25.0 million.

   The Senate amendment contained no similar provision.

   The Senate recedes with an amendment that would require the Secretary to appoint an employee of the Federal Government as an on-site manager to oversee any defense nuclear nonproliferation program that involves dismantlement, destruction, or storage facilities, or construction of a facility, and that is executed in a state of the former Soviet Union, if the total contribution by the Department is expected to exceed $50.0 million. The amendment would allow one individual to serve as the site manager for more than one project so long as the total cost of the projects does not exceed $150.0 million for that fiscal year.

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Performance of personnel security investigations of certain Department of Energy and Nuclear Regulatory Commission Employees in Sensitive Programs (sec. 3131)

   The Senate amendment contained a provision (sec. 3151) that would amend section 145 of the Atomic Energy Act of 1954 (Public Law 83-703) to provide the Secretary of Energy the authority to refer security investigations to either the Federal Bureau of Investigations (FBI) or the Office of Personnel Management (OPM). Current law requires the FBI to investigate all initial personnel security investigations and all reinvestigations for DOE federal and contractor employees assigned to a Department of Energy Special Access Program (SAP) or a Personnel Security and Assurance Program.

   The House bill contained no similar provision.

   The House recedes with an amendment that would amend section 145(e)(2) of the Atomic Energy Act of 1954 to repeal the requirement that the Secretary or the Commissioner of the Nuclear Regulatory Commission (NRC), as successors to the Atomic Energy Commission, must refer security investigations concerning DOE federal and contractor employees assigned to a Personnel Security and Assurance Program to the FBI. Under this provision, the Secretary or Commissioner would have the authority to refer such personnel security investigations to either the FBI or OPM, as successor to the Civil Service Commission. Nothing in this provision would change the requirement that the Secretary or Commissioner must refer security investigations to the FBI for DOE federal and contractor employees assigned to a DOE Special Access Program, or the authority to refer security investigations to the FBI for personnel that the Secretary or the Commissioner certifies, due to their specific position, to be of a high degree of importance or sensitivity.

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Policy of Department of Energy regarding future defense environmental management matters (sec. 3132)

   The Senate amendment contained a provision (sec. 3152) that would require the Secretary of Energy to establish a policy to clarify the shared or overlapping responsibilities between the Environmental Management (EM) program and the National Nuclear Security Administration (NNSA). This provision would require the Secretary to include a report declaring DOE's policy on these matters to be submitted with the administration's budget request for fiscal year 2005.

   The provision would also require the Secretary of Energy to prepare a plan to implement the new policy to be presented with the administration's budget request for fiscal year 2006.

   The House bill contained no similar provision.

   The House recedes with an amendment that would require the Secretary of Energy to put in place, not later than October 1, 2005, a policy for carrying out future defense environmental management matters that have not already been included or considered in the Defense Site Acceleration Completion plan. The Secretary of Energy shall include in the budget submission for fiscal year 2005 a report on the policy the Secretary plans to have in effect as of October 1, 2005. The Secretary of Energy must have the policy in effect no later than October 1, 2005, and reflect the policy in the budget submission for fiscal year 2006 and each fiscal year thereafter.

   The conferees support EM's initiative to accelerate cleanup across the entire NNSA and former nuclear weapons facilities complex. However, as the Secretary seeks to define and designate the complete scope of cleanup and waste management within the accelerated cleanup initiative, the conferees want to ensure that it is clear which program will be responsible for future defense EM matters. The Secretary of Energy can clarify this matter by establishing a clear policy that would help both EM and NNSA plan for future cleanup activities and the associated costs.

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Inclusion in 2005 stockpile stewardship plan of certain information relating to stockpile stewardship criteria (sec. 3133)

   The Senate amendment contained a provision (sec. 3153) that would require the Secretary of Energy to submit a report to the congressional defense committees, by March 1, 2005, on clear and specific criteria for judging whether the science-based tools being used by the Department of Energy for determining the safety and reliability of the nuclear weapons stockpile are performing in a manner that will provide an adequate degree of certainty regarding the safety and reliability of the stockpile. This would be an update of the report required in section 3158 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999.

   The House bill contained no similar provision.

   The House recedes with an amendment that would include this report as part of the Fiscal Year 2005 Stockpile Stewardship Plan. The conferees note that this annual report has been consistently late and urge the Department to submit this important report on time.

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Progress reports on energy employees occupational illness compensation program (sec. 3134)

   The Senate amendment contained a provision (sec. 3154) that would require the National Institute for Occupational Safety and Health (NIOSH) to submit a report to Congress on the ability of NIOSH to obtain, in a

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timely, accurate, and complete manner, information necessary to carry out radiation dose reconstructions under the Energy Employees Occupational Illness Compensation Program Act of 2000 (EEOICPA). The report should be submitted within 90 days of enactment of this Act.

   The House bill contained no similar provision.

   The House recedes.

   The conferees direct NIOSH to send the report to the congressional defense committees, the Committees on Government Affairs and Health Education, Labor and Pensions of the Senate, and the Committees on Government Reform and Education and the Workforce of the House of Representatives.

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Report on integration activities of Department of Defense and Department of Energy with respect to robust nuclear earth penetrator (sec. 3135)

   The Senate amendment contained a provision (sec. 3155) that would require the Secretary of Energy and Secretary of Defense to develop, submit to Congress three months after the date of the enactment of this Act, and implement, a plan to coordinate the robust nuclear earth penetrator (RNEP) feasibility study at the Department of Energy (DOE) with the ongoing conventional hard and deeply buried weapons development programs at the Department of Defense.

   The House bill contained no similar provision.

   The House recedes with an amendment that would modify the reporting requirement of section 1032 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) to include analysis of the integration and interoperability of the robust nuclear earth penetrator with regard to research and development, procurement, and other activities by the Departments of Defense and Energy during fiscal year 2003. This information would be included