The Kaiser Papers A Public Service Web SiteIn Copyright Since September 11, 2000
This web site is in no manner affiliated with any Kaiser entity and the for profit Permanente
Link for Translation of the Kaiser Papers 
PATHFINDER(search)  |   ABOUT US  |  CONTACT  |  WHY THE KAISERPAPERS  |  
RESEARCH GUIDES BY SUBJECT  |    A READER'S GUIDE    |  
 AddThis Social Bookmark Button

downey.kaiserpapers.info

Mirrored for Historical Purposes from: http://bulk.resource.org/gpo.gov/reports/105/hr083.105.txt

National Aeronautics and Space Administration

The Committee is concerned that the conveyance of Parcels III, IV, V, and VI of the NASA Industrial Plant, Downey,
California, to the City of Downey, as called for in P.L. 104-204, enacted September 26, 1996, has not yet been completed.

This conveyance is to be accomplished by NASA, with the concurrence of the GSA Administrator. The Committee urges the
GSA, as the agent of the Government responsible for the conveyance, to accomplish it expeditiously, consistent with the
direction included in the Conference Agreement accompanying H.R. 3666, the FY 1997 VA-HUD-Independent Agencies
appropriations bill. Consistent with the instructions of the Conference Report, the Committee urges the GSA to continue
working with the City of Downey and to expedite an agreement with respect to its need to enter into ground leases for the
purpose of obtaining construction funding, and include language in the deed of conveyance which will specifically address this
concern.

The original page is as follows:

<PRE>[DOCID: f:hr083.105]
From the House Reports Online via GPO Access
[wais.access.gpo.gov]

105th Congress Report
HOUSE OF REPRESENTATIVES

1st Session 105-83
_______________________________________________________________________



MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR RECOVERY FROM NATURAL
DISASTERS, AND FOR OVERSEAS PEACEKEEPING EFFORTS, INCLUDING THOSE IN
BOSNIA, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1997, AND FOR OTHER
PURPOSES

_______


April 29, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______________________________________________________________________


Mr. Livingston, from the Committee on Appropriations, submitted the
following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 1469]

The Committee on Appropriations submits the following
report in explanation of the accompanying bill making emergency
supplemental appropriations for recovery from natural
disasters, and for overseas peacekeeping efforts, including
those in Bosnia, for the fiscal year ending September 30, 1997,
and for other purposes.

Bill Highlights

The bill recommended by the Committee includes
$8,419,452,000 of urgent supplemental appropriations to provide
for identified needs for fiscal year 1997. This includes
$5,508,872,000 of emergency supplemental appropriations for
recovery from natural disasters, $2,039,880,000 of emergency
supplemental appropriations for overseas peacekeeping efforts,
including those in Bosnia, $113,500,000 of non-emergency
supplemental appropriations for several miscellaneous accounts,
and $757,200,000 of mandatory supplemental appropriations
mostly for veterans compensation and pensions. All of these
discretionary supplemental appropriations are offset by
rescissions or other offsets contained in the bill with the
exception of the mandatory appropriations which do not score
against the Committee's discretionary spending allocation
pursuant to the Budget Act.

Bill Summary
------------------------------------------------------------------------
Activity Amount
------------------------------------------------------------------------
Disaster Recovery................................... $5,508,872,000
Miscellaneous Appropriations........................ 113,500,000
Domestic Offsets.................................... -5,394,109,000
-------------------
Subtotal, Domestic Discretionary.............. 0
===================
Peacekeeping (including Bosnia)..................... 2,039,880,000
Defense Offsets..................................... -2,040,347,000
-------------------
Subtotal, Defense Discretionary............... -467,000
Mandatory Appropriations............................ 757,200,000
------------------------------------------------------------------------

Many of the appropriations in the accounts providing
recovery from natural disasters are greater than the amounts
formally requested by the President. It is important to
recognize that as the Committee was developing this bill, major
new flooding was being experienced in several locations around
the country, and the estimates of needs from other past floods
have been revised since the time the President made his initial
request of March 19. He made a subsequent request on April 23
to address the flooding and related devistation in the Dakotas
and Minnesota to which the Committee increased amounts in the
bill. Also, the Administration has informally informed the
Committee of several revised estimates of needs above those
amounts officially requested. All of these factors plus a
continuous monitoring of the situation with affected agencies
have resulted in the funding recommendations contained in the
bill.
As conditions and needs continue to be better known, the
amounts in the bill may need to be revised further. This may
have to be done during the floor process, by the Senate, or
during conference. It is in this light that the Committee is
reporting this bill. Reporting the bill now and beginning the
process of getting aid to the victims of natural disasters with
the potential of revising estimates throughout the process is
more important than delaying the bill in anticipation of better
estimates.

TITLE I

EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR RECOVERY FROM NATURAL
DISASTERS

CHAPTER 1

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

Boll weevil eradication is one of the most important and
successful agricultural programs. Significant progress has
occurred across the South in controlling this pest. Recently
the State of New Mexico initiated a referendum to participate
in the program. The Committee believes APHIS should continue to
provide assistance for monitoring and tracking activities in
Roosevelt and Lea Counties, New Mexico and is encouraged to
facilitate implementation of a boll weevil eradication program
pending the referendum results from Dona Ana and Sierra
Counties, New Mexico.
The Committee remains concerned about the impact of the
Department's regulations regarding the wheat disease Karnal
Bunt. It is the Committee's belief that this minor wheat
disease has caused major problems in the international trade of
wheat, thus impacting the domestic wheat industry. It is the
intent of the Committee that the integrity of the U.S. wheat
industry is maintained and remains competitive in the
international market and that issues of grain quality and crop
health be defined by the scientific community. Accordingly, the
Committee directs the Department to be instrumental in
convening an international symposium to investigate the global
implementation of a new policy to manage Karnal Bunt as a grain
quality issue. It is the desire of the Committee that this
symposium be convened promptly in 1997 and its findings be
reported to the House and Senate Committees on Agriculture and
House and Senate Committees on Appropriations within 60 days of
the symposium's conclusion.

Farm Service Agency

emergency conservation program

The Committee provides $65,000,000 for the emergency
conservation program to provide cost-sharing assistance to
farmers and ranchers whose farmland was damaged as a result of
flooding and other natural disasters. This funding is available
nationwide for all qualified applicants. The Committee has
provided authority to use these funds for expenses related to
livestock carcass removal.

conservation reserve program

The Committee continues to support strongly the objectives
of the Conservation Reserve Program (CRP). The Committee
believes that the best way to maximize conservation benefits is
to assure competitive enrollments over time. By limiting the
extent of enrollments in the first year of the reauthorized
program, the Committee believes that targeting can be improved
to enhance the conservation benefits of the CRP.
The Committee is aware of and approves the recent
initiatives by the Department to target watershed objectives
through the continuous enrollment program and through State-
initiated enhancement proposals that would help target
resources, such as those submitted by Illinois, Minnesota, and
Maryland. More time and opportunity are needed to develop this
aspect of the program, and the Committee believes the
Department should reserve sufficient acreage to maximize the
potential of these initiatives.
The Committee is also concerned that proposed enrollments
in the current sign-up would provide little benefit to several
regions of the country, in part because of rental rate formulas
that do not take account of the different circumstances that
influence fair market value in all regions of the country.
Although the Committee expects that the great majority of CRP
enrollments will and should remain in regions of the country
that have traditionally participated heavily in the program, it
encourages the Department to use its full authority to assure
that CRP provides meaningful benefits nationwide for watershed-
based approaches that achieve environmental benefits such as
water quality, flood control, wetlands conservation, and
wildlife habitat.
The Committee has further clarified that the authority to
enroll marginal pasturelands under the criteria of the CRP
applies to lands used for grazing regardless of their degree of
manipulation. This clarification should assist in the
nationwide success of the continuous enrollment program and
does not affect the statutory criteria for enrolling marginal
pastureland. Rangeland and riparian areas are important to
protect for a variety of conservation and environmental
purposes.

tree assistance program

The Committee has provided funds for emergency assistance
to small orchardists. Similar assistance was authorized and
provided through the Tree Assistance Program in the Disaster
Assistance Act of 1988 (P.L. 100-387), the Disaster Assistance
Act of 1989 (P.L. 101-82), and by authorizations in the 101st
and 102nd Congresses.
The Committee directs the Department to administer the
program with provisions enacted in past disaster assistance
acts, including provisions that limit the assistance to
orchardists who own 500 or fewer acres, whose gross income does
not exceed $2,000,000, and who suffer losses in excess of 35
percent. In addition, reimbursement shall not exceed 65 percent
of the cost of replanting trees, assistance in a calendar year
may not exceed $25,000, and no duplicative payments may be
received under this authority and the forestry incentives
program, environmental quality incentives program, or other
Federal programs.

barley payment inequity

``The Committee is aware that a mistake was made in
interpreting data utilized in determining the payment formula
established under the Agriculture Market Transition Act (7
U.S.C. 7201 et seq.) for the 1996 AMTA payments to the
producers of barley. Due to this misinterpretation of data,
1996 payments to barley producers were approximately $35
million less than intended by Congress. Accordingly, it is the
intent of the Committee that the Secretary of Agriculture
shall, within 60 days of enactment of this legislation, submit
a report to the appropriate committees of Congress detailing
what specific authority would be required from Congress to
allow the Secretary to provide an additional $35 million to the
1997 barley payment adjustment.

Natural Resources Conservation Program

watershed and flood prevention operations

The Committee provides $150,700,000 for emergency watershed
and flood prevention operations to repair damages to waterways
and watersheds resulting from flooding and other natural
disasters. These funds would be used to provide disaster
assistance to communities to reduce hazards to life and
property in watersheds damaged by natural disasters. This
funding is available nationwide for all qualified applicants.
Of the total amount provided, not more than $10 million may be
used for floodplain easements. The Department is in the
rulemaking process of this new program. This funding will be
used as a pilot program until rules can be published. The
Committee also prohibits the use of these funds for the salmon
memorandum of understanding. The Committee believes the
Department's first priority should be to take care of damages
resulting from natural disasters.
The Committee is concerned about the current condition of
levees along the Cosumnes River, California. This flood control
system suffered catastrophic failure resulting from this past
winter's storms in the area. More than 30 levee failures
allowed river waters to flood homes and destroy fertile
farmlands along the Cosumnes. Local officials are to be
commended for their response to find immediate and long-term
solutions that will minimize future flooding. To assist their
efforts, the Committee encourages the Department to provide
assistance to qualified applicants for the repair, restoration,
reconstruction, and replacement of the levees along the
Cosumnes River, California.

Rural Housing Service

rural housing insurance fund program

The Department has not identified any specific use for the
amount requested. Of the $59,000,000 appropriated in fiscal
year 1997 for loans for the rehabilitation of rural rental
housing, approximately $50,000,000 remains unobligated as of
February 1, 1997. USDA officials have indicated to the
Committee that applications for emergency assistance are given
priority consideration over routine applications for funding.
Therefore, the Committee believes that more than adequate
funding is available for emergency requests.

rural housing assistance

The Department has not identified any specific use for the
amount requested. Of the funds allocated by the Department from
fiscal year 1997 appropriations, more than half remains
unobligated for very low-income housing repair grants and more
than two thirds remains unobligated for farm labor housing
grants as of February 1, 1997. In addition, the Administration
has available from the Fund for Rural America $17.7 million for
construction or rehabilitation of single family rural housing
and $2.0 million for farm labor housing grants and loans. USDA
officials have indicated to the Committee that applications for
emergency assistance are given priority consideration over
routine applications for funding. Therefore, the Committee
believes that more than adequate funding is available for
emergency requests.
The Committee notes the damage to College Station,
Arkansas, resulting from Spring 1997 storm events and expects
the Rural Housing Service to provide assistance related to
these storms. The Committee has provided bill language making
the community eligible. In addition, the Committee notes the
availability of funds in the Community Facilities Grants
account and urges the Secretary to provide State directors
discretion to provide these and other funds to communities
otherwise eligible for Community Facilities Loans for response
to direct and indirect damage resulting from recent natural
disasters.

Rural Utilities Service

rural utilities assistance program

The Department has not identified any specific use for the
amount requested. More than half the $567,000,000 appropriated
for this account in fiscal year 1997 remains unobligated as of
February 1, 1997. The Administration also has allocated from
the Fund for Rural America $9.1million for water and waste
needs. USDA officials have indicated to the Committee that applications
for emergency assistance are given priority consideration over routine
applications for funding. Therefore, the Committee believes that more
than adequate funding is available for emergency requests.

Food and Consumer Service

child nutrition programs

The Committee does not concur with the budget request for
the nutrition education and training program. In a hearing
before the Committee, a Department witness testified that the
law did not prohibit reprogramming funds for this purpose, but
that the decision not to reprogram was an internal executive
branch decision. The Committee notes that since $3,750,000 has
already been reprogrammed within the child nutrition program
for nutrition education and training activities, it would not
oppose the reprogramming of the remaining $6,250,000 from
within the child nutrition program. This program was provided
$8.6 billion in the fiscal year 1997 appropriations bill.

special supplemental nutrition program for women, infants, and children
(WIC)

The Committee provides $38,000,000 for the special
supplemental nutrition program for women, infants, and children
(WIC). The fiscal year 1997 appropriations bill was signed into
law on August 6, 1996, almost two months before the start of
the fiscal year. During the last few months of fiscal year
1996, participation levels in the program were allowed to
exceed a level that could be maintained in fiscal year 1997
without additional funding. While the Committee is concerned
that the Department and states could not manage to operate the
program within the discretionary funds provided, it is also
concerned that program participants not suffer the
consequences.
The program is projecting a carryover balance of
$100,000,000 at the end of fiscal year 1997. Understanding that
the program needs some level of carryover funds for continued
operations, the Committee expects the Department to reduce the
carryover balance to a level that will maintain the current
participation level of 7.4 million for the remainder of the
fiscal year. The Committee also directs the Department to take
the necessary steps to manage participation within available
funds and not exceed this level at the end of fiscal year 1997.

Commodity Futures Trading Commission

The Committee recommends that no action be taken to
implement the Chicago Board of Trade proposal to amend delivery
specifications for corn and soybeans until the GAO conducts a
comprehensive review of the proposal. In conducting its review
of the Board of Trade recommendations, the GAO shall use the
following criteria: the need for diversity of delivery
locations and modes of transportation; whether price
differentials recognize obvious increases in the value of grain
and oilseeds at points further along in the flow to consumers;
the ability of the contracts to balance the needs of the
domestic market as well as the export market and to assure
market competitiveness; and that the recommendations satisfy
concerns about potential manipulation as addressed in the
Commodity Exchange Act, Section 5a(a)(10).

CHAPTER 2

DEPARTMENT OF JUSTICE

General Administration

Counterterrorism Fund

The Committee is aware of considerable efforts by the State
of New York and certain counties and local jurisdictions to
support the Federal Bureau of Investigation in its effort to
investigate the possibility that terrorism was responsible for
the explosion of Flight TWA 800 off the Long Island coast on
July 17, 1996.Extraordinary expenses have been incurred by
State and local agencies for evidence recovery operations, security,
forensic and medical examination of evidence, air support for the FBI,
and logistical support. The FBI could not have conducted this
investigation of a possible terrorist attack without the assistance
provided by these agencies. The Committee therefore directs the
Attorney General to provide $12,420,000 to the FBI from the
Counterterrorism Fund, so the FBI can reimburse these State and local
agencies for their assistance in this investigation, subject to
verification of appropriate costs.
The Committee is also aware of the security arrangements
required to protect against any potential threats of terrorism
during the Summit of Eight scheduled for June 20 through 22,
1997, in Denver, as well as from the continuing Oklahoma City
bombing trial. The Committee understands that city and county
law enforcement agencies in Denver will be providing the
majority of security and logistical support to the FBI in its
counterterrorism mission with regard to the Summit. The
Committee directs the Attorney General to provide $1,950,000 to
the FBI from the Counterterrorism Fund for reimbursement to
State and local agencies for this support, subject to
verification of appropriate costs.
The Committee also expects to be notified by the Department
of Justice within two days after passage of this bill in the
House of Representatives of any potential issues surrounding
the cost estimates or activities being provided by State and
local agencies on behalf of the FBI's counterterrorism efforts
for these events.

DEPARTMENT OF COMMERCE

Economic Development Administration

Economic Development Assistance Programs

The Committee has included $49,700,000 in contingent
emergency appropriations for economic development assistance
programs, of which $47,700,000 is for infrastructure expenses
and the capitalization of revolving loan funds to assist in the
recovery efforts of communities impacted by recent flooding,
and $2,000,000 is for administrative expenses related to these
activities. The Committee has provided this funding based on
recent information provided by the Administration on the need
for assistance. The Committee expects the EDA to submit a plan
on the proposed expenditure of these funds prior to releasing
these funds.
The Committee has not included the transfer of $1,200,000
from the Economic Development Revolving Fund to Economic
Development Assistance Programs for planning and technical
assistance, as requested by the Administration. It is the
Committee's understanding that most of these funds have been
requested to place flood disaster recovery coordinators in
impacted regions to coordinate disaster response efforts. The
Committee notes that the Federal Emergency Management Agency
(FEMA), not EDA, is responsible for coordinating federal
disaster response activities, and believes FEMA is best
qualified to carry out this function.

National Institute of Standards and Technology

Industrial Technology Services

The Committee has included language to clarify that a total
of $35,000,000 in fiscal year 1997 funds is available for new
awards under the Advanced Technology Program (ATP). When
combined with $27,000,000 in unobligated balances available
from prior year appropriations, a total of $62,000,000 is
available for new grant awards in fiscal year 1997, in addition
to $6,000,000 previously awarded with fiscal year 1996 funds.
In addition, $155,000,000 is available in fiscal year 1997 to
pay the continuation costs of grants made in prior fiscal
years, and $37,000,000 is available for administration, small
business innovative research, and lab support. Any additional
funds that become available through recoveries or any other
means may be spent only after notification to the Committee
under standard reprogramming procedures.

National Oceanic and Atmospheric Administration

Operations, Research, and Facilities

The Committee has not included $12,000,000 in emergency
appropriations requested by the Administration for the NOAA
Operations, Research, and Facilities account. The
Administration proposed a total of $14,000,000 to be used for
fishery habitat restoration, to be derived from $12,000,000 in
emergency appropriations and the redirection of an additional
$2,000,000 from within the National Marine Fisheries Service
(NMFS). Of this total amount, $11,000,000 was requested for a
new program to provide grants to local groups for land
acquisition along in-land waterways for long-term salmon
restoration activities, and $3,000,000 was requested for
Federal-State technical assistance and public education.
The request for $11,000,000 for land acquisition along in-
land waterways represents a new activity for NOAA related to
its on-going long-term salmon restoration activities, and is
not related to activities necessary to recover from damages
caused by recent flooding in the Pacific Northwest. The
Committee notes that the Corps of Engineers and the Federal
Emergency Management Agency, not NOAA, are responsible for
conducting emergency repair and restoration of these waterways.
The Committee believes that initiating a new program for land
acquisition, the purposes and structure of which have yet to be
defined, outside of the immediate requirements of disaster
response should be considered as part of the regular
appropriations process, and therefore has not recommended
funding.
In addition, the Committee has not included funds to
develop technical guidelines for Federal and State agencies
involved in disaster recovery activities, or for a public
education program on fish-friendly solutions to flooding
problems, because these are longer-term projects, not directly
connected to disaster assistance. The Committee would be
willing to consider a reprogramming request out of regular
fiscal year 1997 appropriations, in accordance with section 605
of the fiscal year 1997 Appropriations Act, for the highest
priority activities.

Construction

The Committee has included $10,800,000 in emergency funds
for the National Oceanic and Atmospheric Administration's
(NOAA) ``Construction'' account, as requested by the
Administration. These funds are to support theimmediate repair
of fish hatcheries along the Columbia River which experienced severe
damage from the recent flooding in the Northwest.

DEPARTMENT OF STATE

International Organizations and Conferences

Arrearage Payments

The Committee has not included $921,000,000 requested by
the Administration as an advance appropriation for fiscal year
1999 for payment of arrears on prior year assessments related
to the United Nations regular budget and peacekeeping
activities, and 46 other international organizations.
Discussions are currently ongoing between the Administration
and the Congress relating to the amount of arrears, the reforms
that need to be put into place prior to payment of the arrears,
the period of time over which arrears would be paid, the
mechanisms that would trigger release of funds, and
improvements in the consultative process between the
Administration and Congress. It would be premature to provide
funding for arrearage payments, which are not proposed to be
made until fiscal year 1999, prior to the conclusion of these
discussions.

CHAPTER 3

DEPARTMENT OF DEFENSE--CIVIL

DEPARTMENT OF THE ARMY

Corps of Engineers--Civil

flood control, mississippi river and tributaries, arkansas, illinois,
kentucky, louisiana, mississippi, missouri, and tennessee

The Committee has recommended $20,000,000 for the Corps of
Engineers to perform protective and emergency measures to
ensure the operation and stability of the flood protection
system of the Mississippi River and Tributaries project. Work
would include repairs to levees, dikes, and revetments;
dredging to restore channel capacity; and repairs to diversion
structures damaged in the recent flooding in the lower
Mississippi River valley. The entire amount has been designated
by the Congress as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended. The Administration made no
request for funds for the Mississippi River and Tributaries
project.

operation and maintenance, general

The Committee has recommended $150,000,000 for the Corps of
Engineers to perform emergency maintenance of projects impacted
by flooding and other natural disasters, $111,000,000 more than
the amount requested by the Administration. The additional
funds will permit the Corps of Engineers to: correct unsafe
conditions and prevent navigation delays resulting from debris
accumulation, bank failures, and groin and jetty damages in
ports and navigable rivers in California; restore navigable
depths and widths to the Mississippi River--Baton Rouge to the
Gulf, Mississippi River Outlets at Venice, and Atchafalaya
River navigation projects; restore navigable depths and widths
in commercial navigation channels along the Gulf Coast of
Texas; repair damages to Corps of Engineers projects resulting
from flooding in the Ohio River valley; and repair damages to
Corps of Engineers projects resulting from ongoing flooding in
the upper Mississippi River and Missouri River valleys. The
entire amount has been designated by the Congress as an
emergency requirement pursuant to section 251(b)(2)(D)(i) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended.

flood control and coastal emergencies

The Committee has recommended $415,000,000, $122,800,000
more than the total amount requested by the Administration, for
the Corps of Engineers to repair eligible levees and other
flood control works in states affected by floods in the winter
and spring of 1997 and to perform other emergency operations
activities associated with those floods. The entire amount has
been designated by the Congress as an emergency requirement
pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended.
The Committee has not included language proposed by the
Administration authorizing the Secretary of the Army to
construct an outlet from Devils Lake in North Dakota to the
Sheyenne River and has also deleted the funds requested for
that work. The Committee recognizes the serious nature of the
problem at Devils Lake and will consider proposed solutions as
the appropriations process proceeds.
The Committee recognizes the catastrophic damages in
Falmouth, Kentucky, resulting from severe flooding which
occurred in March, 1997. This destruction, dislocation, and
loss of life compels the Committee to consider solutions as the
appropriations process continues for fiscal year 1998.

construction, general

San Timoteo Creek, California.--Pursuant to section 103(k)
of the Water Resources Development Act of 1986, the Secretary
of the Army may permit the non-Federal sponsor of a flood
control project to make its required contribution of project
costs over a period of not more than thirty years from the date
of completion of the project. The Committee directs the Corps
of Engineers to apply this provision of law to the San Timoteo
Creek feature of the Santa Ana River Mainstem project in
California.

DEPARTMENT OF THE INTERIOR

Bureau of Reclamation

operation and maintenance

The Committee has recommended $7,355,000, $2,855,000 above
the amount requested by the Administration, for the Bureau of
Reclamation to repair damage to projects that occurred during
winter flooding in the western states, particularly California
and Nevada. Work will include repairs to access roads, pumping
plants, electrical equipment, embankments, and spillways. The
entire amount has been designated by the Congress as an
emergency requirement pursuant to section 251(b)(2)(D)(i) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended.

General Provisions, Chapter 3

Sec. 301.--The Corps of Engineers of the Department of the
Army has been the lead Federal agency regarding water and
related resources of the Susquehanna River and Delaware River
basins since the basin compacts were established by law. The
Corps of Engineers continues to play a pivotal role in
representing the Federal interest in the development and
conservation of water and related resources in these basins, in
coordination with other Federal agencies and in cooperation
with state and local governments. This supplemental language
would redefine Federal Commission positions so that, beginning
in 1997 and thereafter, the United States members and alternate
members appointed under the Susquehanna River Basin Compact and
the Delaware River Basin Compact shall be military officers of
the Corps of Engineers who shall serve without additional
compensation.
Sec. 302.--The Susquehanna River Basin Commission was
established in 1970 by P.L. 91-575 and the Delaware River Basin
Commission in 1961 by P.L. 87-328. The Committee notes that
these laws differ slightly on the terms served by the United
States members. On the Susquehanna River Basin Commission, the
United States member serves at the pleasure of the President.
On the Delaware River Basin Commission, the member only serves
during the term of office of the President. The Committee has
included language which provides that officers of the Army
Corps of Engineers will serve as United States members of these
two commissions. However, it seems prudent and practical for
both members to serve at the pleasure of the President. The
Committee has included language whichamends the 1961 law to
make the membership provision consistent with that in the 1970 law.
Sec. 303.--The bill includes language which provides that
the policy issued on February 19, 1997, by the U.S. Fish and
Wildlife Service implementing emergency provisions of the
Endangered Species Act and applying to 46 California counties
that were declared Federal disaster areas shall apply to all
counties nationwide heretofore or hereafter declared Federal
disaster areas at any time during 1997 and shall apply to
repair activities on flood control facilities in response to an
imminent threat to human lives and property and shall remain in
effect until the Assistant Secretary of the Army for Civil
Works determines that 100 percent of emergency repairs have
been completed, but shall not remain in effect later than
December 31, 1998.

CHAPTER 4

DEPARTMENT OF THE INTERIOR

The funding provided in this supplemental budget for the
Department of the Interior for fiscal year 1997 is to repair
damages caused by floods and other natural disasters including
floods and ice storms in the West, snow and floods in the
Midwest and the East, and tornado and high winds in Arkansas
and Louisiana. The recommended funding levels are, in some
cases, based on preliminary estimates. As a result, the
Committee understands that the agencies will need to adjust
funding allocations as more definitive damage repair estimates
are established. To the extent these adjustments exceed the
thresholds in the established reprogramming guidelines, the
Committee will give expedited consideration to reprogramming
requests related to these disasters and encourages the
Department and the Office of Management and Budget to do
likewise.

Bureau of Land Management

Construction

The Committee recommends $4,796,000 for construction
instead of $3,003,000 as proposed by the Administration. Within
the total, $3,003,000 are to be derived by the transfer of
unobligated balances from supplemental appropriations made
available for the ``Oregon and California Grant Lands'' account
in fiscal year 1996. These funds are to be used for road
repairs, restoration of eroded recreation sites, bridge repair,
and other repairs associated with snow and flood damage.

Oregon and California Grant Lands

The Committee recommends $2,694,000 for Oregon and
California grant lands as proposed by the Administration for
road repair, bridge repair, damage due to mud slides, and other
repairs associated with snow and flood damage. These funds are
to be derived by the transfer of unobligated balances from
supplemental appropriations made available under this heading
in fiscal year 1996.

United States Fish and Wildlife Service

Resource Management

The Committee recommends $2,250,000 for resource management
instead of $2,000,000 as proposed by the Administration. Of
this amount, $2,000,000 is to provide technical assistance to
private landowners and to government agencies on fish and
wildlife habitat issues and $250,000 is to replace fish fry
killed in the April snow storm in the Northeast.

Construction

The Committee recommends $81,000,000 for construction
instead of $32,000,000 as proposed by the Administration. These
funds are to addressdamages caused by the floods in the West,
Midwest and Ohio River area; storms in the East; and tornadoes and high
winds in Arkansas and Louisiana.
The Committee agrees to the following distribution of
funds:

Region: States Amount
1: California, Idaho, Nevada, Oregon, Washington........ $45,546,000
2: Oklahoma, Texas...................................... 6,292,000
3: Illinois, Indiana, Iowa, Minnesota, Wisconsin........ 12,789,000
4: Alabama, Arkansas, Louisiana, Mississippi, Tennessee. 4,387,000
5: Maine, Massachusetts, West Virginia.................. 1,431,000
6: Montana, North Dakota, South Dakota, Utah............ 10,555,000
--------------------------------------------------------
____________________________________________________
Total............................................... 81,000,000

Land Acquisition

The Committee recommends $15,000,000 for land acquisition
as proposed by the Administration. This amount will enable the
Fish and Wildlife Service to acquire land and water rights, on
a willing seller basis, as a cost-effective alternative to
expensive floodplain levee and land repair necessitated by the
severe winter flooding in the western States. The Committee
encourages the agency to evaluate carefully each specific
situation and limit the acquisitions to those areas where the
cost of land acquisition is less that the cost of damage
repairs. Additional consideration should be given to those
areas where past flooding has resulted in repeated repairs and
replacement of levees.
The Committee encourages the Service to leverage these
limited land acquisition funds by working with the Wetlands
Reserve Program and with non-profit entities like the National
Fish and Wildlife Foundation.

National Park Service

Construction

The Committee recommends $196,912,000 for construction
instead of $187,779,000 as proposed by the Administration.
These funds include a total of $186,053,000 for repairs and
replacement of facilities damaged by winter storms at Yosemite
National Park including $30,000,000 in contingency funds as
well as $10,000,000 in non-emergency funds to implement the
Yosemite Valley Transportation Plan. The Committee agrees to
rescind $10 million in Clean Coal Technology funding in the
Department of Energy, as proposed by the Administration, to
offset the non-emergency request.
The Committee strongly encourages the National Park Service
to work closely with the local communities surrounding Yosemite
to ensure that the Service's transportation plan is consistent
and compatible with the Yosemite Area Regional Transportation
Strategy (YARTS) planning effort.
The Committee recommends the following distribution of
funds:

Park Unit Amount
Yosemite NP, CA (emergency) \1\......................... $176,053,000
Park Unit Amount
Transportation (non-emergency)...................... 10,000,000
Redwood NP, CA.......................................... 8,955,000
Sequoia/Kings Canyon NP, CA............................. 286,000
Whiskeytown NRA, CA..................................... 184,000
Devils Postpile NM, CA.................................. 73,000
Oregon Caves NM, OR..................................... 68,000
Lava Beds NM, CA........................................ 47,000
North Cascades NP, WA................................... 41,000
Mammuth Cave NP, KY..................................... 542,000
North Dakota (3 projects): Theodore Roosevelt NP, ND,
Knife River NHS, ND, Fort Union Trading Post NHS, ND 210,000
Cape Cod NS, MA......................................... 60,000
Fire Island NS, NY...................................... 125,000
Minute Man NHP, MA...................................... 79,000
Roosevelt/Vanderbilt Sites, NY.......................... 189,000
--------------------------------------------------------
____________________________________________________
Total........................................... 196,912,000

\1\ Includes $30 million in contingency emergency appropriations.
---------------------------------------------------------------------------

United States Geological Survey

Surveys, Investigations, and Research

The Committee recommends $4,290,000 for surveys,
investigations, and research instead of $1,300,000 as proposed
by the Administration. This funding is to be used to maintain
continuity of services for the national streamflow network, and
to improve risk assessment through post flood data collection.

Bureau of Indian Affairs

Operation of Indian Programs

The Committee recommends $11,100,000 for operation of
Indian programs instead of $5,800,000 as proposed by the
Administration. These funds are to be used for emergency
welfare assistance, emergency school operations, heating costs,
snow removal, and other activities related to flood and snow
damages.
The Committee directs the Bureau of Indian Affairs to
prepare a report to Congress, within 30 days, on the estimated
additional caseload and potential costs resulting from welfare
reform in States where there are Indian reservations. The BIA
should also report on the consequences if the Bureau does not
have sufficient funds to meet the additional caseload.

Construction

The Committee recommends $5,554,000 for construction
instead of $5,000,000 as proposed by the Administration. These
funds are to be used for emergency repairs related to flood and
snow damages.

DEPARTMENT OF AGRICULTURE

Forest Service

The Committee recommends that supplemental funds be
provided for repairs and restoration caused by a series of
floods, landslides and ice storms in the Pacific Northwest,
California and Nevada mountains, the northern Rockies and the
Ohio River area. The Committee recognizes that there may be a
need to adjust funding allocations as more definitive damage
repair estimates are established. To the extent these
adjustments exceed the thresholds in the established
reprogramming guidelines, the Committee will give expedited
consideration to reprogramming requests related to these
disasters and encourages the Department and the Office of
Management and Budget to do likewise.

National Forest System

The Committee recommends $37,107,000 for the National
forest system instead of $25,000,000 as proposed by the
Administration. Funds provide for road and trail maintenance
and relocation, soil stabilization, recreational and
administrative facility repair and maintenance, fish and
wildlife habitat restoration, and required studies, design, and
National Environmental Policy Act work. Region 5 funding
includes $800,000 for Shasta-Trinity Lakes debris clean-up.
The Committee recommends the following distribution of
funds:

----------------------------------------------------------------------------------------------------------------
Region 1 Region 4 Region 5 Region 6 Region 9 State total
----------------------------------------------------------------------------------------------------------------
Idaho............................. 950,000 2,100,000 ........... 10,000 ........... 3,060,000
Montana........................... 50,000 ........... ........... ........... ........... 50,000
Nevada............................ ........... 2,500,000 ........... ........... ........... 2,500,000
California........................ ........... 1,600,000 15,000,000 190,000 ........... 16,790,000
Oregon............................ ........... ........... ........... 10,000,000 ........... 10,000,000
Washington........................ ........... ........... ........... 1,800,000 ........... 1,800,000
Illinois.......................... ........... ........... ........... ........... 7,000 7,000
Indiana........................... ........... ........... ........... ........... 2,000,000 2,000,000
Ohio.............................. ........... ........... ........... ........... 900,000 900,000
-----------------------------------------------------------------------------
Region total................ 1,000,000 6,200,000 15,000,000 12,000,000 2,907,000 37,107,000
----------------------------------------------------------------------------------------------------------------

Reconstruction and Construction

The Committee recommends $32,334,000 for reconstruction and
construction instead of $13,000,000 as proposed by the
Administration. Funds provide for road and trail
reconstruction, construction and relocation, recreational and
administration facility construction, reconstruction and
relocation, and associated planning, design work and technical
support.
The Committee recommends the following distribution of
funds:

----------------------------------------------------------------------------------------------------------------
Region 1 Region 4 Region 5 Region 6 Region 9 State total
----------------------------------------------------------------------------------------------------------------
Idaho............................. 150,000 938,000 ........... 40,000 ........... 1,128,000
Montana........................... 93,000 ........... ........... ........... ........... 93,000
Nevada............................ ........... 250,000 ........... ........... ........... 250,000
California........................ ........... 3,079,000 9,200,000 150,000 ........... 12,429,000
Oregon............................ ........... ........... ........... 13,300,000 ........... 13,300,000
Washington........................ ........... ........... ........... 3,700,000 ........... 3,700,000
Illinois.......................... ........... ........... ........... ........... 34,000 34,000
Indiana........................... ........... ........... ........... ........... 0 0
Ohio.............................. ........... ........... ........... ........... 1,400,000 1,400,000
-----------------------------------------------------------------------------
Region total................ 243,000 4,267,000 9,200,000 17,190,000 1,434,000 32,334,000
----------------------------------------------------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Indian Health Service

indian health services

The Committee recommends $1,000,000 for Indian health
services. The Administration proposed no funding for this
account. These funds are to be used for emergency contract
health services, medications and pharmaceuticals, and other
emergency services associated with snow and flood damage.

indian health facilities

The Committee recommends $2,000,000 for Indian health
facilities. The Administration proposed no funding for this
account. These funds are to be used for repair of fire
sprinkler systems, building foundations, sewer systems, and
other facilities repairs associated with snow and flood damage.

General Provision, Chapter 4

Sec. 401.--The Committee recommends amending the recreation
fee demonstration pilot program which was enacted in fiscal
year 1996. The amendment would remove the inflation ``penalty''
in the current legislation which reduces the amount of fees
which are kept by the individual fee collecting units each
year. The amendment also changes the base year for calculating
fee increases from fiscal year 1995 to fiscal year 1994. These
changes will result in additional fees being retained by
individual collecting units beginning in fiscal year 1997 and
continuing through the end of the pilot program. The decrease
in revenues to the Treasury in fiscal year 1997 resulting from
this amendment are offset by a rescission in the Clean Coal
Technology program in the Department of Energy.

CHAPTER 5

DEPARTMENT OF TRANSPORTATION

Coast Guard

retired pay

The Committee has provided $4,200,000 to cover the
increased cost of the Coast Guard's military retired pay. This
amount is the same as requested by the President and is a
mandatory requirement.

Federal Aviation Administration

facilities and equipment

(airport and airway trust fund)

The Committee has provided an additional $40,000,000 for
explosive detection systems to supplement funding provided in
earlier appropriations Acts to improve security at the nation's
airports. The Committee believes itis imperative that FAA field
additional systems to reduce the threat of terrorist action as soon as
possible. According to the FAA, without these additional funds, the
production line for the only certified system will be interrupted,
resulting in an unacceptable delay in security improvements and higher
costs for future systems.

Federal Highway Administration

Federal-Aid Highways

Emergency Relief Program

(Highway Trust Fund)

The Committee has provided a total of $650,000,000 for
emergency relief activities of the Federal Highway
Administration, an increase of $359,000,000 over the
President's request. The Committee is concerned that the level
requested by the administration is insufficient to meet
existing identified needs and that the funds would be fully
obligated by the end of July 1997, possibly requiring another
supplemental before the end of the summer.
Emergency relief funds will provide additional resources to
repair highway damage resulting from the floods in the western,
midwest and mid-Atlantic regions, and the northern plains
states of the nation between December 1996 and April 1997. The
Committee has included bill language that lifts the
$100,000,000 limit on obligations per state for the December
1996 and January 1997 floods in the West.
The bill also includes language that make emergency relif
funding available for the repair or reconstruction of CA
Highway 1 at Devil's Slide in San Mateo County
Of the funds provided, $374,000,000 shall be available only
to the extent an official budget request for a specific dollar
amount, that includes the designation of the entire amount of
the request as an emergency requirement, is transmitted by the
President to the Congress.

Federal-Aid Highways

(Highway Trust Fund)

The bill includes $318,077,043 in additional federal-aid
highway obligational authority for fiscal year 1997 and makes
the additional limitation available to those states that had
their 1997 limitation reduced as a result of a recent
correction of a clerical error made by the Department of the
Treasury in recording the Highway Trust Fund receipts in 1994.
This error resulted in the overstatement of Highway Trust Fund
contributions by $1.5 billion in 1995. These funds should have
been credited to the 1994 Highway Trust Fund contributions.
The following table portrays estimated obligations by state
of the additional 1997 obligational authority contained in the
bill:
State Amount
Alabama................................................. $9,192,589
Alaska..................................................................
Arizona................................................. 8,882,817
Arkansas................................................ 6,506,921
California.............................................. 50,711,555
Colorado................................................................
Connecticut.............................................................
Delaware................................................................
District of Columbia....................................................
Florida................................................. 25,954,346
Georgia................................................. 19,382,218
Hawaii..................................................................
Idaho...................................................................
Illinois................................................................
Indiana................................................. 11,574,082
Iowa....................................................................
Kansas..................................................................
Kentucky................................................ 8,355,700
Louisiana............................................... 7,240,399
Maine...................................................................
Maryland................................................ 9,754,587
Massachusetts...........................................................
Michigan................................................ 14,747,139
Minnesota...............................................................
Mississippi............................................. 5,314,543
Missouri................................................ 9,678,737
Montana.................................................................
Nebraska................................................................
Nevada..................................................................
New Hampshire...........................................................
New Jersey..............................................................
New Mexico..............................................................
New York................................................................
North Carolina.......................................... 15,054,880
North Dakota............................................................
Ohio.................................................... 5,189,010
Oklahoma................................................ 7,096,552
Oregon.................................................. 5,895,465
Pennsylvania............................................ 16,916,047
Rhode Island............................................................
South Carolina.......................................... 9,006,026
South Dakota............................................................
Tennessee............................................... 9,427,283
Texas................................................... 38,545,766
Utah.................................................... 2,222,803
Vermont.................................................................
Virginia................................................ 13,986,103
Washington..............................................................
West Virginia...........................................................
Wisconsin............................................... 7,441,475
Wyoming.................................................................
Puerto Rico.............................................................
--------------------------------------------------------
____________________________________________________
Total............................................. 318,077,043

Federal Railroad Administration

emergency railroad rehabilitation and repair

The bill provides $10,000,000 for emergency expenses to
repair and rebuild rail lines damaged as a result of the floods
in the northern plains states in the spring of 1997. These
funds shall be awarded on a case-by-case basis at the
discretion of the Secretary. The Committee believes, however,
that to the extent practicable, the Secretary should give
priority consideration to publicly-owned trackage and rights-
of-way.

RELATED AGENCY

National Transportation Safety Board

Salaries and Expenses

The bill provides $23,300,000, of which $20,200,000 is made
available for TWA Flight 800 accident investigation costs,
including wreckage location and recovery, facility rental,
fuselage mock-up, fire and explosion testing as well as NTSB
travel, overtime, and command center costs. In addition, funds
are provided for assistance to families of aviation accident
victims, as authorized by the Federal Aviation Reauthorization
Act of 1996. The bill also includes $3,100,000 to reimburse
Metropolitan Dade County, Florida for costs it incurred as a
result of the crash of ValuJet 592. Of the total, $4,877,000
shall remain available until expended.
Language is included in the bill that requires the NTSB to
reimburse the Navy up to $10,330,000, from the total
appropriation for the costs it incurred in connection with the
investigation of TWA Flight 800.

General Provisions, Chapter 5

The bill includes two corrections of enrolling errors
within the Department of Transportation and Related Agencies
Appropriations Act, 1997, the first relating to the DeKalb
County, Georgia light rail project (section 501) and the second
to the Bureau of Transportation Statistics (section 502).
Section 503 includes a provision that makes available
$500,000 in additional contract authority for Section 410
alcohol-impaired driving prevention incentive grants.
Section 504 includes a provision that makes available
contract authority for the National Driver Register in fiscal
year 1997.

CHAPTER 6

TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT

United States Postal Service

Payments to the Postal Service Fund

The Committee has provided $5,300,000 for revenue foregone
on free and reduced rate mail, compared to $5,363,000 requested
by the Administration. This amount, combined with the fiscal
year 1997 appropriation, fully funds the Postal Service for
revenue foregone reform reimbursement in the amount of
$29,000,000, as authorized by law.

Independent Agencies

Federal Election Commission

The Committee has provided $1,700,000 for additional costs
of the Federal Election Commission associated with
investigations and audits of the 1996 election cycle, compared
to $1,709,000 requested by the Administration. The Committee
denies FEC's request to hire an additional 7.8 full time
employee equivalents and instead earmarks these funds for FEC's
current automated data processing efforts.
The Committee notes that, of the $1,700,000 request, FEC
intends to spend $686,375 for automated data processing needs.
The Committee is pleased to learn that this money will not only
be used to assist FEC's investigations of potential election
law violations but also will provide a critical ``test bed''
for the development and refinement of effective casemanagement
systems prior to planned system-wide deployment. The Committee supports
this purpose.
In addition to approving the $686,375 for automated data
processing needs in the current fiscal year, the Committee has
included $312,500 for second year funding of the development of
``Groupware'' and $470,000 for the first phase of FEC's
development of the ADP ``Imaging Strategy'' and has made these
funds available until September 30, 1998. The Committee
believes that these two components of FEC's long term ADP
strategy are critical to FEC meeting its workload demands in an
effective and efficient manner. The balance of the funds
appropriated, $231,125, are available to supplement staff, for
the sole purpose of providing support to the various case
management and support systems funded through this supplemental
appropriation.

general services administration

toledo, ohio, federal office building

The committee understands that the General Services
Administration is considering the relocation of Federal space
in Toledo, Ohio. The committee wishes to acknowledge and
encourage the cooperative effort being made by the City of
Toledo, the Toledo-Lucas County Port Authority, in consultation
with the GSA and consistent with the current GAO review, to
locate suitable space on a consolidated site for all Federal
entities in the Toledo central business district. Additionally,
the committee recommends that if alternative commercial space
is secured, that the building be designated a federal service
center (or some other similar designation) to assure that
Toledo continues to have a visible Federal presence.
The committee further recommends that as the GSA considers
the future accommodation of all federal entities in Toledo, it
give every consideration to consolidating all entities, both
administrative and judicial, in a single, federally owned
location.

Counter-Terrorism and Drug Law Enforcement

Department of the Treasury

United States Customs Service

The Committee has been made aware that, owing to the
requirement to obtain voluntary participation from the airline
industry in submitting manifest and commodity data, the Customs
Service has had to extend its schedule for planning and
implementing the Automated Targeting System. The Committee has
included a provision to make these funds available for two
years.

General Provision, Chapter 6

The Committee has recently been made aware of concerns that
fiscal year 1996 report language does not supersede fiscal year
1988 bill language addressing the issue of American ownership
of corporations or entities that supply distinctive currency
paper. The Committee has included a provision to clarify the
Committee's intent regarding the procurement of distinctive
currency paper and, specifically, that the corporation or
entity which is awarded the contract for currency paper must be
50 percent or more American- owned.
The current supplier of currency paper has had a virtual
117 year sole source contract with the Federal Government. The
Committee stresses that it is not unsatisfied with the
performance of the current provider of distinctive currency
paper; rather, the Committee simply supports the
Administration's desires to increase competition for the supply
of paper so that other American-owned companies can have the
opportunity to be considered in the bidding process.
The Committee also notes that the provision does not change
the requirement that distinctive currency paper purchased by
BEP to print United States currency must be produced by an
American-owned company and must be manufactured in the United
States. The Committee also takes this opportunity to restate
its insistence that production locations for currency paper
remain under the jurisdiction of U.S. law enforcement
officials.

CHAPTER 7

DEPARTMENT OF VETERANS AFFAIRS

Veterans Benefits Administration

Compensation and Pensions

An appropriation of $18,671,259,000 was provided for the
compensation and pensions account in fiscal year 1997. A fiscal
year 1997 supplemental appropriation of $753,000,000 is
requested for the compensation and pensions account. Of this
amount, $340,400,000 is due to the 2.9 percent cost-of-living
adjustment effective December 1, 1996 as authorized in the
Veterans' Compensation Cost-of-Living Adjustment Act. The
remaining $412,600,000 is required because of increases in the
number of beneficiaries as well as the average cost per claim.
Pension costs are also more than originally estimated due to an
increase in the caseload. The Committee has included the
supplemental budget request to provide the balance of funds
required in fiscal year 1997 for the compensation and pensions
appropriation.

Administrative Provision

The fiscal year 1997 VA, HUD, and Independent Agencies
Appropriations Act provided $12,300,000 for the parking
structure component of the ambulatory care addition project at
the Cleveland VA Medical Center. Language is included in the
bill to permit construction on this project to proceed.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Housing Programs

Preserving Existing Housing Investment

The Committee has included $3,500,000 and language to
correct a technical error which resulted in excluding
inadvertently the Valley Vista property in Syracuse, New York,
from inclusion in the statutory standard for preservation
carveout properties. During deliberations on the fiscal year
1996 appropriations legislation, this property was listed in
HUD's listings of carveout properties but there was
insufficient funding for the project. However, during
deliberations on the fiscal year 1997 appropriations
legislation, the Committee accepted HUD's view that Valley
Vista would be funded as a carveout property. After enactment,
HUD reported that, in fact, the statutory language included in
the 1997 appropriations measure excluded Valley Vista. This
language reinstates the property for funding.

Drug Elimination Grants for Low-Income Housing

The Committee is recommending a transfer of $30,200,000 of
unobligated balances from the Homeownership and Opportunity for
People Everywhere (HOPE) Grants program to the Drug Elimination
Grants program to provide necessary funds to augment HUD's
crime prevention efforts in federally assisted low-income
housing. The HOPE program originally provided for the sale to
low-income families of acquired and rehabilitated HUD-owned
properties as well as properties with HUD-held mortgages. The
number of the properties eligible to participate in this
program have been reduced and, therefore, these funds are no
longer needed to fund the HOPE program.

INDEPENDENT AGENCIES

Federal Emergency Management Agency

Disaster Relief

The Committee is recommending an emergency supplemental
appropriation of $3,567,677,000 for disaster relief. This
recommended funding is necessary to meet all current emergency
disaster needs, including those resulting from recent floods
and tornadoes throughout the nation, and is expected to be
sufficient to meet anticipated disaster needs for the remainder
of fiscal year 1997 and a majority of 1998. Bill language is
included which makes $2,387,677,000 of the appropriated amount
available on the last day of the fiscal year. The Committee's
recommendation makes it possible for the Federal Emergency
Management Agency to enter fiscal year 1998 with approximately
90 percent of its projected disaster relief needs already in
hand, thus assuring smooth and timely response to emergency
requirements during the height of the ``hurricane'' season.

salaries and expenses

The workload requirements resulting from an extraordinarily
active ``disaster season'' have exceeded available financial
and personnel resources. The Committee recommends an additional
$5,000,000 for fiscal year 1997 salaries and expenses to meet
this need.

Emergency Management Planning and Assistance

The recent floods in Northern California have highlighted
the lack of critical information relating to the levees and
topography of the Sacramento and San Joaquin Valleys. To help
remedy this situation, the Committee expects FEMA to partner
with the California Department of Conservation and the Defense
Advanced Research Projects Agency (DARPA) to fund the IFSAR-E
digital mapping service in coordination with the State's GeoSar
program for creation of a geographical information system for
the collection, maintenance and analysis of data relevant to
flood threats in the Sacramento and San Joaquin Valleys. The
Committee expects FEMA to fund this collaborative effort at an
amount not to exceed $2,500,000 through existing balances in
the Emergency Management Planning and Assistance account.

national flood insurance fund

The Committee has recommended bill language which amends
the National Flood Insurance Act of 1968 by reducing the
waiting period before which a flood insurance policy takes
effect. Since 1993, the statute has stipulated that a flood
insurance policy will not go into effect for 30 days following
purchase of such a policy. Upon learning of the potential flood
disaster waiting to happen in North Dakota, South Dakota and
Minnesota, thousands of individuals purchased flood insurance.
Unfortunately, snows melted and the flooding occurred sooner
and much heavier than expected, thus leaving many such
policyholders just a few days short of having their insurance
take effect.
Prior to 1993, this waiting period fluctuated between 5 and
15 days. The language recommended by the Committee will remedy
the unintended effect of those individuals caught in this 30-
day waiting period by once again requiring just a 15 day
waiting period for those policies purchased between January 1
and June 30, 1997.

National Aeronautics and Space Administration

The Committee is concerned that the conveyance of Parcels
III, IV, V, and VI of the NASA Industrial Plant, Downey,
California, to the City of Downey, as called for in P.L. 104-
204, enacted September 26, 1996, has not yet been completed.
This conveyance is to be accomplished by NASA, with the
concurrence of the GSA Administrator. The Committee urges the
GSA, as the agent of the Government responsible for the
conveyance, to accomplish it expeditiously, consistent with the
direction included in the Conference Agreement accompanying
H.R. 3666, the FY 1997 VA-HUD-Independent Agencies
appropriations bill. Consistent with the instructions of the
Conference Report, the Committee urges the GSA to continue
working with the City of Downey and to expedite an agreement
with respect to its need to enter into ground leases for the
purpose of obtaining construction funding, and include language
in the deed of conveyance which will specifically address this
concern.

CHAPTER 8

OFFSETS AND RESCISSIONS

DEPARTMENT OF AGRICULTURE

Office of the Secretary

fund for rural america

The Committee reduces the amount available to the Secretary
for the Fund for Rural America to $80 million and uses the
savings provided as a partial offset for emergency disaster and
WIC supplemental funding. The Committee also provides the
Secretary with the authority to use the Fund for Rural America,
at his discretion, for the WIC program.

Natural Resources Conservation Service

wetlands reserve program

There is a $31 million unobligated balance remaining from
the fiscal year 1996 wetlands reserve program. The Committee
proposes to use $19 million of these funds as a partial offset
for emergency disaster and WIC supplemental funding.

Food and Consumer Agency

the emergency food assistance program

The Personal Responsibility and Work Opportunity
Reconciliation Act provided for $100 million in food stamp
funding to be used for TEFAP commodity purchases in fiscal year
1997. This funding is in addition to the funding provided in
the fiscal year 1997 appropriations bill. The Committee
proposes to reduce the amount available through the food stamp
program to $80 million and use the savings as a partial offset
for emergency disaster and WIC supplemental funding.

Foreign Agricultural Service

export credit

The fiscal year 1997 appropriations bill included $5.5
billion for the export credit guarantee program. The Committee
reduces the total amount available to $3.5 billion and uses the
savings as a partial offset for emergency disaster and WIC
supplemental funding.

export enhancement program

The fiscal year 1997 appropriations bill included $100
million for the export enhancement program (EEP). The Committee
reduces the amount available for EEP to $10 million and uses
the savings provided as a partial offset for emergency disaster
and WIC supplemental funding.

public law 480 program and grant account

The Committee does not concur with the Administration
request to rescind $50,000,000 from Title I of Public Law 480
international food aid. Congress has given the Administration
authority to transfer funds among the three food aid programs,
including Title I. Therefore, a shortage in Title II
humanitarian funds could be provided through Title I. With food
aid program resources at historic lows and the potential for
new requirements for Zaire and North Korea, the Committee
believes that it is not prudent at this time to make a large
reduction in a major food aid program.

DEPARTMENT OF JUSTICE

General Administration

working capital fund

(rescission)

The Committee recommends a rescission of $6,400,000 of
unobligated balances available in the Working Capital Fund
because they are not required to support activities of the
Department of Justice. The Administration proposed this
rescission in its transmittal of rescissions and deferrals on
February 10, 1997.

Legal Activities

assets forfeiture fund

(rescission)

The Committee recommends a rescission of $3,000,000 of
unobligated balances available in the Assets Forfeiture Fund
Super Surplus. This funding is available as a result of Section
108 of Title I of Public Law 104-208, which allows balances
remaining in the Assets Forfeiture Fund after September 30,
1996 to be available to the Attorney General for authorized
purposes of the Department of Justice.

Immigration and Naturalization Service

construction

(rescission)

The Committee recommends a rescission of $1,000,000 from
amounts provided for fiscal year 1995 for construction projects
of the Immigration and Naturalization Service (INS). The
Committee has previously objected to the use of funds for
construction of a permanent traffic checkpoint on Interstate 19
(I-19) in Arizona. As a result, this funding remains
unobligated and unexpended. The Committee does not intend to
support the establishment of a permanent checkpoint on I-19 and
therefore recommends a rescission of $1,000,000 in this
account.
The Committee has also been informed that the INS recently
moved the temporary checkpoint on I-19 to a point further north
on this interstate. The Committee recognizes the value a
temporary checkpoint can provide and expects that the Border
Patrol will continue to operate a temporary checkpoint in
Arizona. However, the Committee is concerned that the operation
of this temporary checkpoint is currently limited only to I-19
and directs the Border Patrol to change its existing strategy
for this checkpoint operation to a ``roving'' checkpoint
operation which does not stay in one location for an extended
period of time and is moved on a periodic basis to other major
roads extending from the border into Arizona, and not solely I-
19.

DEPARTMENT OF COMMERCE

National Institute of Standards and Technology

industrial technology services

(rescission)

The Committee recommends a rescission of $7,000,000 from
the unobligated balances available under the Advanced
Technology Program. This amount has been identified as in
excess of requirements for existing award commitments due to
award changes and cancellations during the first quarter of
fiscal year 1997 and is therefore available for rescission.

National Oceanic and Atmospheric Administration

fleet modernization, shipbuilding and conversion

(rescission)

The Committee recommends a rescission of $2,000,000 from
the unobligated balances available in this account. It is the
Committee's understanding that unobligated balances totaling
$7,586,000 carried forward into fiscal year 1997, resulting in
a total availability of $15,586,000, which is $3,586,000 above
the requested level for fiscal year 1997. Thus, at least $2,000,000 is
available for rescission.

RELATED AGENCIES

Federal Communications Commission

Salaries and Expenses

(Rescission)

The Committee recommends a rescission of $1,000,000 from
the unobligated balances available under the Salaries and
Expenses account of the Federal Communications Commission
(FCC). Due to lower-than-anticipated staffing levels and
higher-than-anticipated fee recoveries, the FCC carried forward
$8,239,000 into fiscal year 1997. As of February 1, 1997, FCC
staffing remained 195 workyears below the level provided for in
fiscal years 1996 and 1997. Therefore, it is unlikely that the
FCC will be able to spend the funds recommended for rescission
by the end of fiscal year 1997.

Ounce of Prevention Council

(Rescission)

The Committee recommends a rescission of $1,000,000 of
funds appropriated under Public Law 104-208 for the Ounce of
Prevention Council. The Committee is aware that the Council is
behind in its announcement and award of grants under this
program. The solicitation for grants to award the $1,000,000
provided in fiscal year 1996 just appeared in the Federal
Register on January 17, 1997. It is further noted that
$1,500,000 was carried forward in both fiscal years 1995 and
1996 and therefore it is unlikely that this program will spend
all of the funds appropriated in fiscal year 1997.

DEPARTMENT OF ENERGY

Energy Programs

energy supply, research and development activities

(Rescission)

The recommendation rescinds $22,532,000 from the Energy
Supply, Research and Development Activities appropriation
account. This rescission reflects the level of unobligated
balances available for programs on October 1, 1996. The
reduction represents funds made available by the Department to
supplement FY 1997 spending which were not anticipated to be
available by the Committee. Accordingly, the Department is
directed to reduce programs in accordance with each program's
share of the $22,532,000 as detailed on the final Status of
Appropriations Report for FY 1996.

DEPARTMENT OF ENERGY

Clean Coal Technology

(Rescission)

The Committee recommends a rescission of $17,000,000 for
clean coal technology. This rescission includes $10,000,000, as
proposed by the Administration to offset the appropriation for
implementing the transportation plan for Yosemite National Park
and $7,000,000 to offset the fiscal year 1997 impact of the
amendment to the recreation fee demonstration pilot program
addressed in Section 401 of chapter 4 in this title. These
funds are available for rescission due to projects that have
been terminated prior to completion. The rescission is not
specific to any particular round of clean coal projects.

Strategic Petroleum Reserve

(Rescission)

The Committee recommends a rescission of $11,000,000 for
the strategic petroleum reserve as proposed by the
Administration. These funds are available for rescission
because of cost savings in the SPR life extension program.

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Grants-in-Aid to Airports

(Rescission of Contract Authorization)

The bill rescinds $750,000,000 in contract authority that
is not available due to annual limits on obligations.

National Highway Traffic Safety Administration

Highway Traffic Safety Grants

(Highway Trust Fund)

(Rescission of Contract Authorization)

The bill rescinds $13,000,000 in contract authority that is
not available for obligation due to annual limits on
obligations.

Federal Transit Administration

Trust Fund Share of Expenses

(Highway Trust Fund)

(Rescission of Contract Authorization)

The bill rescinds $271,000,000 in contract authority that
is not available for obligation due to annual limits on
obligations.

Discretionary Grants

(Highway Trust Fund)

(Rescission of Contract Authorization)

The bill rescinds $588,000,000 in contract authority that
is not available for obligation due to annual limits on
obligations.

GENERAL SERVICES ADMINISTRATION

Agricultural Research Service Laboratory

In fiscal year 1997, Congress provided $8,000,000 for the
renovation of the Agricultural Research Service Laboratory in
Ames, Iowa. This federally-owned laboratory houses the Animal
and Plant Health Inspection Service (APHIS). The Congress
directed that the funds be used only for biomedical safety and
operational improvements for APHIS operations.
The Committee now understands that APHIS, as well as local
officials, have indicated a desire to transfer this $8,000,000
to the construction of a larger facility at an estimated cost
of $73,000,000. The Committee believes that transferring the
$8,000,000 from renovation to new construction is not in
keeping with the fiscal year 1997 Congressional direction.
Since the funds will not be used for the purposes for which
appropriated, the Committee rescinds $1,400,000 from the
Agriculture Research Service Laboratory funding. Should APHIS
reassess its position and determine that it wishes to follow
the 1997 Congressional direction, the Committee will review the
renovation requirements in fiscal year 1998.

Expenses, Presidential Transition

The Committee has rescinded $5,600,000 in funds available
for the costs associated with the Presidential Transition, as
requested by the Administration.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Housing Programs

Annual Contributions for Assisted Housing

(Rescission)

The Committee recommends a rescission of $3,823,440,000
from funds recaptured during fiscal year 1997 and prior years.
Of this amount, $250,000,000 results from the elimination
of excess funds available on some long-term section 8
contracts, the cancellation of reservations for public housing
development projects unable to proceed to construction and the
recapture of funds from inactive programs. This amount was
included in the President's rescission package.
The additional $3,573,440,000 is excess section 8 reserve
funds. Using improved accounting and tracking systems, HUD has
been reconciling PHAs' section 8 contract accounts to determine
the level of unspent budget authority. This amount represents
additional reserves identified by HUD as a result of a budget
analysis requested by the Committee. It is in addition to
approximately $1,600,000,000 in unspent budget authority--or
excess contract reserves--which HUD identified at the end of
1996 and used to reduce the level of funding required to fund
section 8 contracts in fiscal year 1998.

TITLE II

EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR PEACEKEEPING

CHAPTER 1

DEPARTMENT OF DEFENSE--MILITARY

Supplemental Requests

The President has requested supplemental fiscal year 1997
appropriations for the Department of Defense totaling
$2,098,214,000. These include:
(a) $2,006,214,000 in emergency supplemental appropriations
to finance unbudgeted personnel, operations, and equipment
drawdown costs associated with contingency operations, most
notably those in Bosnia and Southwest Asia;
(b) $72,000,000 in emergency supplemental appropriations
for the Reserve Mobilization Income Insurance Fund; and
(c) $20,000,000 in supplemental appropriations to carry out
the provisions of the National Defense Authorization Act for
Fiscal Year 1997 regarding payments to eligible South
Vietnamese individuals or their survivors who were captured or
incarcerated in the Vietnam conflict (referred to as OPLAN 34A/
35 P.O.W. payments).
The supplemental request also includes two proposed
rescissions, totaling $72,000,000, to offset the additional
funding for the Reserve Mobilization Income Insurance Fund
mentioned above. Finally, the President proposed a general
provision canceling $4,800,000,000 of unidentified
appropriations from the fiscal year 1997 Defense Appropriations
and Military Construction Acts, and granting the Secretary of
Defense authority to determine which programs, projects and
activities shall be canceled within this amount. This general
provision was proposed as an offset for the requested emergency
supplemental appropriations for contingency operations and also
to reduce fiscal year 1998 defense outlays.

Committee Observations

For the third consecutive year, the Committee finds itself
confronted with a sizable request for supplemental
appropriations to reimburse the unbudgeted costs of military
contingency operations. The requirement for supplemental funds
this year stems from the President's decision to extend U.S.
participation in the NATO-led peacekeeping effort in Bosnia by
eighteen months (from the original target withdrawal date of
December 1996 to June 1998), as well as increased requirements
associated with operations in Southwest Asia.
The Committee lauds the professionalism and courage of the
men and women of our armed forces who are skillfully carrying
out these challenging and complicated operations. Both the
Bosnia and Southwest Asia deployments have been carried out
while the overall size and resources of the U.S. military
continue to decline. These operations have contributed in no
small degree to the continued high pace of U.S. military
operational and personnel tempo which are at the highest
peacetime levels in recent history. These operations, and the
performance of American forces, are a stark reminder that the
post-Cold War era remains a volatile and dangerous period in
which a well trained and equipped U.S. military is essential.
In order to finance these deployments, the Department of
Defense has been forced to use fiscal year 1997 funds
originally intended for readiness training, facilities and
equipment maintenance and day-to-day base operations. If these
funds are not replenished, as proposed in the supplemental
request, there would inevitably be an enormously negative
impact on U.S. forces due to the absence of funds for training
and other readiness related activities in the remaining months
of this fiscal year. The Committee believes it imperative that
this be avoided, and therefore finds it necessary to approve
the majority of the supplemental request.
The Committee reaches this conclusion despite considerable
concern and, indeed, dismay over a number of issues associated
with these ongoing operations. First and foremost among these
is the President's decision to extend the Bosnia mission by
eighteen months without any effort to consult with and seek
approval from Congress. At its inception, U.S. military
participation on the ground in Bosnia as part of an
international peacekeeping force was justified to Congress and
the American public as a one-year operation. Beginning in 1995
and throughout most of last year, in the face of questions
raised by Congress and others regarding the potential for an
extended deployment of American forces and the lack of an
``exit strategy'', the President and senior Administration
officials insisted the Bosniadeployment would be limited in
duration and cost and cited the commitment to withdraw American forces
by December 1996 as evidence of these limits.
With the President's change in policy, however, the Bosnia
operation now will last two and one-half years and the cost of
the operation will more than double, with Department of Defense
costs alone increasing from $3.1 to $6.5 billion. The Committee
believes strongly that in light of its previous commitments,
and the considerable costs associated with a mission extension,
the Administration had an obligation to seek the approval of
Congress in advance of extending the mission in Bosnia. The
Committee also remains concerned that, other than establishing
a new ``date certain'' for withdrawal, little has been
communicated to describe the Administration's exit strategy for
Bosnia, nor is much known about plans to maintain stability
once NATO forces are withdrawn.
The Committee must also call attention to the considerable
impact this operation is having throughout the U.S. defense
program. The sheer cost of the Bosnia deployment and the
repeated need to seek supplemental appropriations or
reprogrammings paid for from other defense programs have
disrupted defense planning and detracted from other critical
needs facing the military services. While troops deployed to
Bosnia have performed admirably, the significant number of
recent peacekeeping and contingency operations are having a
detrimental effect on overall military readiness and the status
of the force. Units deployed in support of the Bosnia operation
and other peacekeeping and humanitarian assistance operations
have of necessity had to forego normal missions, training
routines, and scheduled rotations. This means lost training
opportunities and an increase in the frequency and duration of
deployments away from home stations and families. Following
several years of record peacetime operations and personnel
tempo, such deployments invariably contribute to morale
problems and a disruption in the ability of U.S. forces to
remain prepared for their primary warfighting missions. For
these reasons, the Committee remains deeply concerned that the
deployment of U.S. forces in Bosnia not turn into an open ended
commitment.
With the President's extension of the U.S. deployment to
Bosnia through June 1998, U.S. troops will have had a major
presence in Bosnia for two and one-half years. The Committee
observes the Secretary of Defense has clearly stated his intent
that U.S. forces be withdrawn after this point. In testimony
before the Committee this year, General Joulwan, the Commander-
in-Chief, United States European Command, stated ``If you can't
get the act together in two and one-half years * * * then I'm
not sure the act can be gotten together in ten years.''
Accordingly, the Committee expects the Administration to live
up to its current plan and withdraw American forces not later
than June of next year. The Committee believes that should
events require any change involving a further extension of the
U.S. deployment, the Administration should and must seek the
approval of the Congress. The Committee expresses its intent to
revisit this issue during its consideration of fiscal year 1998
appropriations measures in the months ahead.
In the interim, the Committee directs the President to
provide reports on Bosnia to the Congress every three months
following enactment of this bill. The reports should include,
but not be limited to: current and projected U.S. and allied
force deployments (both in-country and in support of the
operation outside of Bosnia), and the costs associated with
U.S. operations; status reports on efforts being made within
NATO to achieve consensus on a June 1998 withdrawal date; an
assessment of what, if any, follow-on international force will
be required after U.S. withdrawal and the degree to which U.S.
support is envisioned for such an effort (in both military and
financial terms); and the progress being made toward total
withdrawal. An assessment of the achievements being made in the
implementation of the provisions of the Dayton accords should
also be included in the reports.

Summary of Committee Recommendations

In title II, chapter 1, the Committee recommends a total of
$2,033,400,000 in new budget authority, a reduction of
$64,814,000 from the supplemental request.
The Committee recommendation includes $1,910,400,000 for
contingency operations, a net reduction of $95,814,000 from the
request reflecting fact-of-life changes in funding requirements
which have occurred subsequent to transmittal of the
supplemental proposal. Taking into account these changes, the
Committee recommendation fully funds all contingency operation
requirements identified by the Department of Defense. The
Committee does not agree with the supplemental proposal to fund
both military personnel and operation and maintenance
requirements through the ``Overseas Contingency Operations
Transfer Fund,'' but instead provides for military personnel
costs through the Military Personnel appropriations accounts as
was done in the fiscal year 1997 Defense Appropriations Act.
The Committee recommendation also fully funds the requested
amounts for the Reserve Mobilization Income Insurance Fund and
OPLAN 34A/35 P.O.W. payments. Finally, in title II, chapter 1
of the Committee bill there are three general provisions
intended to redress current funding shortfalls: Section 2102
provides $23,000,000 in transfers to cover the costs incurred
at certain Marine Corps facilities due to recent natural
disasters; Section 2103 provides $21,000,000 for direct patient
care at military treatment facilities; and Section 2104
provides $10,000,000 for additional force protection and
counter-terrorism initiatives.
The new budget authority made available in this title for
the Department of Defense is fully offset by rescissions
totaling $2,033,867,000 from funds made available in previously
enacted Defense Appropriations and Military Construction Acts.
These rescissions are in title II, chapter 2 of the Committee
bill and are described in a subsequent section of this report.
A more detailed description of the Committee's adjustments
to the President's supplemental requests follows:

Contingency Operations

The following describes the Committee's recommendations by
operation, and also by the relevant appropriations title or
account.
Bosnia.--The total amount requested for operations
supporting the Bosnia operation was $1,496,000,000. The
Committee recommends $1,336,200,000, a reduction of
$159,800,000. This reduction is made due to overestimates in
the request for the amount of contractor logistics support
(LOGCAP) provided to troops deployed in-country, overstated
operating tempo requirements, and reduced military personnel
requirements involving the Reserve components.
Southwest Asia.--The request for operations in Southwest
Asia (including enforcing the no-fly zones in northern and
southern Iraq and the redeployment of U.S. forces following the
Khobar Towers bombing) totals $498,200,000. The Committee
recommends $562,200,000, an increase of $64,000,000. Although
funds were provided for operations in Southwest Asia in the
fiscal year 1997 Defense Appropriations Act, a significant
portion of those funds were transferred to fund the Bosnian
deployment after its extension beyond December 1996. Thus funds
are now required to fund ongoing operations in the Persian Gulf
region. Funds provided above the request include $28,000,000
for higher than projected Enhanced Southern Watch costs and
$36,000,000 for enhanced force protection.

Military Personnel

The supplemental request included $360,100,000 for pay and
allowances for active and reserve personnel in support of the
Bosnia and Southwest Asia operations. The Committee recommends
$344,100,000, a reduction of $16,000,000 from the request as
noted above, because of reduced participation by the Reserve
Components. These funds provide for payment of Imminent Danger
Pay, Family Separation Allowance, Foreign Duty Pay, and Basic
Allowance for Subsistence.

Operation and Maintenance

The Committee recommends an appropriation of $1,566,300,000
for operation and maintenance expenses, including costs of the
Defense Health Program and for drawdown recovery, to be
included in the ``Overseas Contingency Operations Transfer
Fund''. The recommendation is a decrease of $79,800,000 below
the amount requested and represents fact-of-life changes in
requirements as described above.

Reserve Mobilization Income Insurance Fund

The supplemental request included $72,000,000 for the
Reserve Mobilization Income Insurance Fund. The National
Defense Authorization Act for Fiscal Year 1996 established the
fund and designed this insurance program to help mitigate
economic losses for Reservists when they are involuntarily
called to active duty. The Committee was never informed by the
Department or asked to participate in any discussions on the
merits of this program, even though the law specifies a
``special'' appropriation to cover any unfunded liability.
The Committee is distressed to learn that from the
beginning, numerous problems arose which risked the solvency of
the fund. The General Accounting Office and the Office of the
Inspector General are currently investigating to see if this
program has been properly administered and implemented.
The fund is not actuarially sound, and, as noted, the law
requires a ``special'' appropriation to cover any unfunded
liability. Therefore, the Committee recommends $72,000,000, the
budget request, to make this insurance fund solvent. After
receiving the reports of the General Accounting Office and
DOD's Inspector General, Congress will address the future of
the Reserve Mobilization Income Insurance Fund.

OPLAN 34A/35 P.O.W. Payments

The supplemental request included $20,000,000 and a new
appropriations paragraph in the Operation and Maintenance title
for payments to certain South Vietnamese commandos (or their
survivors) who, while conducting operations for the United
States, were captured and incarcerated by the Democratic
Republic of Vietnam and have not received payment for their
time spent in captivity. The Committee recommends the requested
amount.

General Provisions, Chapter 1

Section 2101 of the General Provisions has been included
which limits the availability of funds provided in this title
to the current fiscal year unless otherwise specified.
Section 2102 has been included which provides a transfer of
$23,000,000 of available Marine Corps funding (from revised
inflation estimates and foreign currency rates, as well as
unobligated balances expected to expire at the end of this
fiscal year) to Operation and Maintenance, Marine Corps, to pay
for repairs to real property and facilities damaged by
Hurricanes Fran and Bertha last year, and from flooding in
January 1997.
Section 2103 has been included which provides an additional
$21,000,000 for the Defense Health Program, only for direct
care of military service members and dependents at military
treatment facilities.
Section 2104 has been included which provides an additional
$10,000,000 for Operation and Maintenance, Defense-Wide, only
for force protection and counter-terrorism initiatives. These
funds are required to meet requirements at a number of
worldwide locations identified in vulnerability assessments
conducted by the Joint Staff. The Committee directs these funds
be used for physical security equipment such as surveillance
and intrusion detection systems, personnel and vehicle armor,
and x-ray, metal, explosive, and chem-bio detectors. Funds may
also be used for physical security site improvements including
perimeter and entrance barriers, gates, fencing and lighting,
and other items identified in vulnerability assessments which
in the view of the Chairman of the Joint Chiefs of Staff
require immediate attention.
Section 2105 has been included which places limitations on
certain Department of the Navy personnel and budget practices.
The Committee is disturbed to find that the Navy's Financial
Management/Comptroller organization has ignored reprogramming
procedures defined in the Department of Defense Financial
Management Regulation, has become a major impediment to timely
obligation of funds for many high priority programs which the
Navy had requested be included in Appropriations acts, and has
ignored clear Congressional direction and intent concerning a
number of programs of great importance to the nation. The
Committee believes a major reason for this is that the Navy
Financial Management/Comptroller organization has become too
large and bureaucratic, making it unresponsive to the Congress,
the Office of the Secretary of Defense, and the Navy itself.
For these reasons, the Committee designates all funds
appropriated for staffing of the Navy Financial Management/
Comptroller organization to be of special interest under
procedures set forth in the DoD Financial Management
Regulation. Section 2105 of this bill is intended to facilitate
enhanced Congressional oversight of the large annual
expenditure of funds by this organization. The provision also
suspends the authority to reprogram Navy funds on other than a
prior approval basis due to the Navy's apparent
misunderstanding of Defense regulations and Congressional
policy and intent.
The following table provides details of the supplemental
appropriations in title II, chapter 1 of the bill:

Fiscal Year 1997 DOD Supplemental
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Committee
Request recommendation Change
----------------------------------------------------------------------------------------------------------------
Contingency Operations

Bosnia:
Military Personnel:
Army.................................................... $318.0 $302.0 -$16.0
Navy.................................................... 4.9 4.9 ..............
Marine Corps............................................ 0.3 0.3 ..............
Air Force............................................... 22.5 22.5 ..............
-----------------------------------------------
Total Military Personnel.............................. 345.7 329.7 -16.0
===============================================
Operation and maintenance:
Army.................................................... 629.3 504.5 -124.8
Navy.................................................... 92.7 82.7 -10.0
Marine Corps............................................ 1.5 1.5 ..............
Air Force............................................... 247.8 247.8 ..............
Defense-Wide............................................ 157.2 148.2 -9.0
-----------------------------------------------
Total Operation and maintenance....................... 1,128.5 984.7 -143.8
===============================================
Defense Health Program...................................... 21.8 21.8 ..............
===============================================
Total Bosnia--All Appropriations.......................... 1,496.0 1,336.2 -159.8
===============================================
Southwest Asia:
Military Personnel:
Army.................................................... 4.8 4.8 ..............
Navy.................................................... 3.0 3.0 ..............
Air Force............................................... 6.6 6.6 ..............
-----------------------------------------------
Total Military Personnel.............................. 14.4 14.4 ..............
===============================================
Operation and maintenance:
Navy.................................................... 83.1 103.1 +20.0
Air Force............................................... 389.6 434.6 +45.0
Defense-Wide............................................ 9.2 8.2 -1.0
Navy Reserve............................................ 0.5 0.5 ..............
-----------------------------------------------
Total Operation and maintenance....................... 482.4 546.4 +64.0
===============================================
Defense Health Program...................................... 1.4 1.4 ..............
===============================================
Total Southwest Asia--All Appropriations.................. 498.2 562.2 +64.0
===============================================
Drawdown Recovery:
Operation and maintenance, Air Force........................ 12.0 12.0 ..............
===============================================
Total--Contingency Operations......................... 2,006.2 1,910.4 -95.8
OPLAN 34A/35 P.O.W. Payments.................................... 20.0 20.0 ..............
Reserve Mobilization Income Insurance Fund...................... 72.0 72.0 ..............
Defense Health Program.......................................... .............. 21.0 +21.0
Operation and Maintenance, Defense-Wide (Force Protection)...... .............. 10.0 +10.0
-----------------------------------------------
Grand total............................................... 2,098.2 2,033.4 -64.8
----------------------------------------------------------------------------------------------------------------

south korean air defense

The Committee voices its deep concern over the possibility
that South Korea may procure Russian S300 systems for air
defense as opposed to the U.S. Patriot system. The Patriot
possesses superior radar and engagement capabilities and
requires less manpower to operate and maintain. Most
importantly, acquisition of the Patriot ensures
interoperability with other assets assigned to U.S. Forces,
Korea enhancing the overall safety and combat effectiveness of
U.S. and allied forces. Considering the almost half century
relationship between our two countries, and the closeness with
which our troops train together, it would be most unfortunate
for our South Korean allies to procure a non-U.S. air defense
system.

airborne mine countermeasures

The National Defense Authorization Act for fiscal year 1997
directed the Navy to conduct a competitive evaluation of
candidate technologies (Magic Lantern and ATD-111) for an
active Navy airborne laser mine detection system. The Act
further directed that the competitive evaluation be conducted
no later than July 1, 1997 and that a procurement plan be
established for the winning system. In August, 1996 the Under
Secretary of the Navy informed the Committee that the Navy's
intended approach is consistent with the Authorization
Conference Report. Subsequently, anadditional $12,000,000 was
provided in the fiscal year 1997 Department of Defense Appropriations
Act to conduct the competitive flyoff.
The Committee believes it is critically important to
provide the active Naval forces with an airborne laser mine
detection and classification system as soon as possible to
effectively counter floating and shallow-moored mines, a
capability which the active Navy does not now possess. The
Committee also believes that the competitive flyoff must be
conducted on time, as the Under Secretary committed to last
year, in order to allow the congressional defense committees to
consider the result during deliberations on the fiscal year
1998 Department of Defense budget. The Committee directs that
the competitive flyoff be conducted and concluded by July 1,
1997 and that the Secretary of the Navy report the results and
his recommended procurement plan to the congressional defense
committees by July 21, 1997.

CHAPTER 2

Rescissions

Committee Recommendations

The supplemental request for the Department of Defense
included one proposed general provision and two proposed
rescissions.
The general provision requested by the President would
cancel $4,800,000,000 of unidentified appropriations from the
fiscal year 1997 Defense Appropriations and Military
Construction Acts, and grant the Secretary of Defense authority
to determine which programs shall be canceled within this
amount. The Committee does not recommend adoption of this
provision, but instead proposes rescissions totaling
$2,033,867,000 contained in five general provisions in title
II, chapter 2 of the Committee bill. This amount completely
offsets the funding provided for the Department of Defense in
chapter 1 of this title.
These rescissions include savings resulting from updated
fiscal year 1997 inflation estimates and foreign currency
exchange rates, unexpired balances of budget authority which
are expected to lapse at the end of the current fiscal year,
and program-specific rescissions targeted at nearly 60 defense
programs or activities reflecting changes in program status,
contract or cost savings, and instances where available funding
is excessive.
The supplemental request also included two proposed
rescissions, totaling $72,000,000, as an offset for the Reserve
Mobilization Income Insurance Fund mentioned above. The
Committee does not recommend a rescission of $62,000,000 of
fiscal year 1997 funds made available for ``National Guard and
Reserve Equipment,'' as proposed by the President. However, the
Committee does agree with the rescission of $10,000,000 from
fiscal year 1997 ``Operation and Maintenance, Defense-Wide''
funds as proposed by the President and has included this
rescission in Section 2204.

General Provisions, Chapter 2

Section 2201 has been included which rescinds $307,000,000
of fiscal year 1997 defense appropriations which are available
as a result of updated inflation estimates. The provision
requires that reductions within appropriation accounts must be
applied in equal proportion to each budget activity, activity
group, and subactivity group. The Committee directs that such
reductions be made to total funding available in all specified
fiscal year 1997 budget activities, activity groups, and
subactivity groups as of the date of enactment of this Act.
This requirement may not be interpreted to apply only to
unobligated balances in those activities, activity groups, and
subactivity groups. In no case may a budget activity, activity
group, or subactivity group for which additional funds were
appropriated in fiscal year 1997 above what was originally
requested by the President be decreased by a higher proportion
than items which were in the original budget request. The
Department of Defense shall propose a formal reprogramming
request to the congressional defense committees should a
situation arise where