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 HOUSE OF REPRESENTATIVES 
 
 Rept. 100-735 
 Part 1 
 
 CLOSURE AND REALIGNMENT OF MILITARY 
 INSTALLATIONS 
 
 June 28, 1988.— Ordered to be printed 
 
 Mr. AspiN, from the Committee on Armed Services, 
 submitted the following 
 
 /' 
 
 REPORT 
 
 [To accompany H.R. 4481 which on April 28, 1988 was referred jointly to the Com- 
 mittee on Armed Services, the Committee on Government Operations, and the 
 Committee on Merchant Marine and Fisheries] 
 
 [Including cost estimate of the Congressional Office] 
 
 The Committee on Armed Services, to whom was referred the 
 bill (H.R. 4481) to provide for the closing and realigning of certain 
 military installations during a certain period, having considered the 
 same, report favorably thereon with an amendment and recom- 
 mend that the bill as amended do pass. 
 
 The amendment is as follows: 
 
 Strike out all after the enacting clause and insert in lieu thereof 
 the following: 
 
 SECTION 1. SHORT TITLE. 
 
 This Act may be cited as the "Defense Savings Act of 1988". 
 
 SEC. 2. CLOSURE AND REALIGNMENT OF MILITARY INSTALLATIONS. 
 
 The Secretary of Defense shall — 
 
 (1) close all the military installations that are recommended for closure by 
 the Commission on Base Realignment and Closure in the report transmitted to 
 the Secretary pursuant to the charter establishing such Commission; 
 
 (2) realign all the military installations that are recommended for realign- 
 ment by such Commission in such report; and 
 
 (3) initiate all such closures and realignments no later than September 30, 
 1991, and complete all of them no later than September 30, 1995, except that no 
 such closure or realignment may be initiated before January 1, 1990. 
 
 SEC. 3. CONDITIONS. 
 
 (a) In General. — The Secretary may not carry out any closure or realignment of 
 a military installation under this Act unless — 
 
 (1) no later than January 16, 1989, the Secretary transmits to the Committees 
 on Armed Services of the Senate and House of Representatives a report contain- 
 ing a statement that the Secretary has decided to accept and implement all of 
 
 19-006 
 
the closures and realignments of military installations that were recommended 
 by the Commission in the report described in section 2(1); and ^^^^|^^^^^^ 
 (2) the installation is recommended for closure or realignrnent^^n^case 
 may be, by the Commission in the report described in section 2(1). 
 (b) Joint Resolution. — (1) The Secretary may not carry out any closure or re- 
 alignment under this Act if, within the 45-day period beginning on March 1, 1989, a 
 joint resolution described in paragraph (2) is enacted disapproving the recommenda- 
 tions of the Commission. The days on which either House is not in session because 
 of an adjournment of more than 3 days to a day certain shall be excluded in the 
 computation of such 45-day period. 
 
 (2) For the purpose of paragraph (1), the term "joint resolution" means only a 
 joint resolution which is introduced after the date on which the report of the Secre- 
 tary referred to in subsection (a)(1) is received by Congress and — 
 (A) which does not have a preamble; 
 jy (B) the matter after the resolving clause of which is as follows: "That Con- 
 
 Q gress disapproves the recommendations of the Commission on Base Realign- 
 
 ment and Closure established by the Secretary of Defense as submitted to the 
 
 ___ Secretary of Defense on ", the blank space being appropriately filed 
 
 O <r 1^ in; and 
 
 . It $ (C) the title of which is as follows: "A joint resolution disapproving the recom- 
 
 ^ ^ ^ JO mendations of the Commission on Buse Realignment and Closure.". 
 
 ^ "* (3) A resolution described in paragraph (2) introduced in the House of Representa- 
 tives shall be referred to the Committee on Armed Services of the House of Repre- 
 sentatives. A resolution described in paragraph (2) introduced in the Senate shall be 
 
 
 
 ;>. O ^ C/> referred to the Committee on Armed Services of the Senate. 
 
 3-iiQn 
 
 (4) If the committee to which a resolution described in paragraph (2) is referred 
 has not reported such resolution (or an identical resolution) by March 15, 1989, or 
 within the 15-day period beginning on the date of its introduction, whichever, is 
 later, such committee shall be deemed to be discharged from further consideration 
 of such resolution and such resolution shall be placed on the appropriate calendar of 
 the House involved. 
 
 (5)(A) On or after the third day after the date on which the committee to which 
 such a resolution is referred has reported, or has been deemed to be discharged 
 (under paragraph (4)) from further consideration of, such a resolution, it is in order 
 (even though a previous motion to the same effect has been disagreed to) for any 
 Member of the respective House, on the next day after the day on which such 
 Member gives notice to the presiding office thereof, to move to proceed to the con- 
 sideration of the resolution, and all points or order against the resolution (and 
 against consideration of the resolution) are waived. The motion is highly privileged 
 in the House of Representatives and is privileged in the Senate and is not debatable. 
 The motion is not subject to amendment, or to a motion to postpone, or to a motion 
 to proceed to the consideration of other business. A motion to reconsider the vote by 
 which the motion is agreed to or disagreed to shall not be in order. If a motion to 
 proceed to the consideration of the resolution is agreed to, the resolution shall 
 remain the unfinished business of the respective House until disposed of. 
 
 (B) Debate on the resolution, and on all debatable motions and appeals in connec- 
 tion therewith, shall be limited to not more than 10 hours, which shall be divided 
 equally between those favoring and those opposing the resolution. An amendment to 
 the resolution is not in order. A motion further to limit debate is in order and not 
 debatable. A motion to postpone, or a motion to proceed to the consideration of 
 other business, or a motion to recommit the resolution is not in order. A motion to 
 reconsider the vote by which the resolution is agreed to or disagreed to is not in 
 order. 
 
 (C) Immediately following the conclusion of the debate on a resolution described 
 in paragraph (2), and a single quorum call at the conclusion of the debate if request- 
 ed in accordance with the rules of the appropriate House, the vote on final passage 
 of the resolution shall occur. 
 
 (D) Appeals from the decisions of the Chair relating to the application of the rules 
 of the Senate or the House of Representatives, as the case may be, to the procedure 
 relating to a resolution described in paragraph (2) shall be decided without debate. 
 
 (6) If, before the passage by one House of a resolution of that House described in 
 paragraph (2), that House receives from the other House a resolution described in 
 paragraph (2), then the following procedures shall apply: 
 
 (A) The resolution of the other House shall not be referred to a committee. 
 
 (B) With respect to a resolution described in paragraph (2) of the House re- 
 ceiving the resolution 
 

 (i) the procedure in that House shall be the same as if no resolution had 
 been received from the other House; but 
 
 (ii) the vote on final passage shall be on the resolution of the other 
 House. 
 (7) The procedures contained in paragraphs (3) through (6) are enacted by Con- 
 gress— 
 
 (A) as an exercise of the rulemaking power of the Senate and House of Repre- 
 sentatives, respectively, and as such it is deemed a part of the rules of each 
 House, respectively, but applicable only with respect to the procedure to be fol- 
 lowed in that House in the case of a resolution described in paragraph (2), and 
 it supersedes other rules only to the extent that it is inconsistent with such 
 rules; and 
 
 (B) with full recognition of the constitutional right of either House to change 
 the rules (so far as relating to the procedure of that House) at any time, in the 
 same manner, and to the same extent as in the case of any other rule of that 
 House. 
 
 (c) Socio-EcoNOMic Impact Plan. — (1) The Secretary may not initiate a closure or 
 realignment of a military installation in the United States under this Act unless, 
 before the first budget is submitted to the Congress which contains a request for 
 funds which will be used to carry out the closure or realignment of such military 
 installation, the Secretary — 
 
 (A) has completed a study of the socio-economic impact of such closure or re- 
 alignment on the area in which the military installation is located; and 
 
 (B) has developed a plan to minimize such impact, including a statement of 
 the amounts the Secretary plans to request (and the fiscal years for which they 
 will be requested) to minimize such impact. 
 
 (2) A copy of each such plan shall be transmitted to the Committees on Armed 
 Services of the Senate and the House of Representatives as soon as practicable after 
 it is developed, subject to section 2(3). 
 
 (d) Environmental Restoration Plan. — (1) The Secretary may not initiate a clo- 
 sure or a realignment of a military installation in the United States under this Act 
 unless, before the first budget is submitted to the Congress which contains a request 
 for funds which will be used to carry out the closure or realignment of such military 
 installation, the Secretary — 
 
 (A) has completed a study of the environmental restoration needed before the 
 real property and facilities at such military installation can be disposed of by 
 the Federal Government in accordance with applicable law; and 
 
 (B) has developed a plan to accomplish such restoration within 5 years (or 
 within a longer period if the Secretary determines that such longer period is 
 necessary because of the extraordinary circumstances involved), including a 
 statement of the amounts the Secretary plans to request (and the fiscal years 
 for which they will be requested) to accomplish such restoration. 
 
 (2) A copy of each such plan shall be transmitted to the Committees on Armed 
 Services of the Senate and the House of Representatives as soon as practicable after 
 it is developed, subject to section 2(3). 
 
 (e) Termination. — The authority of the Secretary to carry out any closure or re- 
 alignment under this Act shall terminate on October 1, 1995. 
 
 SEC. 4. THE COMMISSION. 
 
 (a) In General.— The Commission— 
 
 (1) shall transmit the report described in section 2(1) to the Secretary no later 
 than January 6, 1989, including a description of the Commission's recommenda- 
 tions of the military installations to which functions will be transferred as a 
 result of the realignments and closures recommended by the Commission; and 
 
 (2) on the same date on which the Commission transmits such report to the 
 Secretary, shall transmit to the Committees on Armed Services of the Senate 
 and House of Representatives — 
 
 (A) a copy of such report; and 
 
 (B) a statement by which the Commission certifies that it has identified 
 the military installations to be closed or realigned by reviewing all military 
 installations inside and outside the United States, including those under 
 construction or planned. 
 
 (b) Public Hearings.— On December 1, 1988, the Commission shall publish in the 
 Federal Register a tentative list of the military installations it plans to recommend 
 for closure or realignment, and shall conduct, during December 1988, public hear- 
 ings for the purpose of obtaining comments on such list which the Commission shall 
 take into consideration in making its final recommendations to the Secretary. 
 
(c) Staff. — The professional staff of the Commission should be selected on the 
 basis of their training, experience, and attainments and in a manner that will 
 assure the impartiality and independence of the Commission to the maximum 
 extent feasible. Each such professional staff member should be nonpartisan and 
 should be appointed on the basis of the individual's ability to perform the profes- 
 sional duties required by the Commission. 
 
 (d) Determining Costs and Savings.— (1) In determining whether to recommend 
 the closure or realignment of any military installation, the Commission shall take 
 into consideration the estimated costs of, and the feasibility of accomplishing, envi- 
 ronmental restoration, removal of hazardous or toxic materials and ordnance, and 
 historic preservation necessary to be carried out with respect to such military in- 
 stallation. 
 
 (2) In carrying out paragraph (1) and in making estimates of expenditures to be 
 made and cost savings to be realized from closing or realigning a military install- 
 tion, the Commission shall take into consideration the estimated total costs to be 
 expended by all agencies and instrumentalities of the Federal Government as a 
 result of such closure or realignment. 
 
 (3) The Commission shall include in the report transmitted to the Secretary and 
 the Congress under subsection (a) an accounting of the estimated expenditures to be 
 made and savings to be realized by the Federal Government, as determined in the 
 manner described in paragraph (2), from each such closure or realignment recom- 
 mended by the Commission. 
 
 (e) Other Factors. — (1) In determining whether to recommend the closure or re- 
 alignment of any military installation, the Commission shall take into consideration 
 the potential to accommodate contingency, mobilization, and future force require- 
 ments at receiving locations. 
 
 (2) The Commission may not recommend the closure or realignment of any mili- 
 tary installation unless it makes a determination that the estimated total cost sav- 
 ings realized from the closure or realignment will, by the end of the 6-year period 
 beginning with the date of the completion of the closure or realignment of the mili- 
 tary installation, exceed the amount expended to close or realign the base, for pur- 
 poses of making this determination, estimated cost savings and estimated expendi- 
 tures shall be discounted to a present value, using an appropriate discount rate to 
 be selected by the Commission. 
 
 SEC. 5. IMPLEMENTATION. 
 
 (a) In General. — In closing or realigning a military installation under this Act, 
 the Secretary — 
 
 (1) subject to the availability of funds authorized and appropriated to the De- 
 partment of Defense for use in planning and design, minor construction, or op- 
 eration and maintenance, and the availability of funds in the Account estab- 
 lished under section 8(a)(1), may carry out actions necessary to implement such 
 closure or realignment, including acquiring land, constructing replacement fa- 
 cilities, relocating activities, and conducting advance planning and design as 
 may be required to tranfer functions from such military installation to another; 
 
 (2) subject to the availability of funds authorized and appropriated to the De- 
 partment of Defense for econmic adjustment assistance or community planning 
 assistance and the availability of funds in the Account, shall provide — 
 
 (A) economic adjustment assistance (including grants for job retraining 
 programs) to any community in the United States near an installation 
 being closed or realigned; and 
 
 (B) community planning assistance to any community in the United 
 States near an installation to which functions will be transferred as a 
 result of such closure or realignment, 
 
 if the Secretary determines that the financial resources available to the commu- 
 nity (by grant or otherwise) for such purposes are inadequate; and 
 
 (3) subject to the availability of funds authorized and appropriated to the De- 
 partment of Defense for environmental restoration and the availability of funds 
 in the Account, may carry out activities for the purpose of environmental resto- 
 ration, including reducing, removing, and recycling hazardous wastes and re- 
 moving unsafe buildings and debris. 
 
 (b) Management and Disposal of Property.— (1) Before any real property or fa- 
 cility under the control of the Department of Defense and located at a military in- 
 stallation to be closed or realigned under this Act is transferred to the General 
 Services Administration, the Secretary shall notify all military departments, agen- 
 cies, and other instrumentalities (including nonappropriated fund instrumentalities) 
 within the Department of Defense of the availability of such property or facility and 
 
may transfer, without reimbursement, such property or facility to any such depart- 
 ment, agency, or instrumentaUty, except that the Secretary shall give a priority to 
 any such department, agency, or other instrumentality that offers to pay fair 
 market value for the property or facility. For purposes of this paragraph, fair 
 market value shall be determined on the basis of the value of the propety as it is 
 being used at the time of such notification. 
 
 (2) All proceeds — 
 
 (A) from any transfer under paragraph (1); and 
 
 (B) from the disposal of any property or facility that was transferred to 
 the General Services Administration by the Secretary as a result of a clo- 
 sure or realignment under this Act, 
 
 shall be deposited into the Account established by section 8(a)(1), except that the 
 General Services Administration shall be reimbursed from such proceeds for any ex- 
 penses incurred in managing, maintaining, and disposing such property or facility. 
 
 (3) Real property that is under the control of the Department of Defense, located 
 at a military installation to be closed or realigned under this Act, and in need of 
 environmental restoration may not be transferred to the General Services Adminis- 
 tration until it has been restored by the Secretary to a condition which would 
 permit it to be disposed of by the Federal Government in accordance with applicable 
 law. 
 
 (4) After the General Services Administration has accepted any real property or 
 facility located at a military installation closed or realigned, or to be closed or re- 
 aligned, under this Act, the Secretary may not expend funds to maintain, secure, or 
 operate the property or facility unless such maintenance, security, or operation is 
 carried out pursuant to an agreement entered into between the Secretary and the 
 Administrator of the General Services Administration that provides for reimburse- 
 ment by such Administration to the Department of Defense of all expenses incurred 
 by the Department in providing such maintenance, security, or operation. 
 
 (c) Applicability of Other Law. — (1) The provisions of the National Environmen- 
 tal Policy Act of 1969 shall not apply to — 
 
 (A) the actions of the Commission, including selecting the military installa- 
 tions which it recommends for closure or realignment under this Act, selecting 
 any military installation to receive functions from a installation to be closed or 
 realigned, and making its report to the Secretary and the Congress under sec- 
 tion 4(a); and 
 
 (B) the actions of the Secretary in establishing the Commission, in determin- 
 ing whether to accept the recommendations of the Commission, in selecting any 
 military installation to receive functions from an installation to be closed or re- 
 aligned, and in transmitting the report to the Congress under section 2(1). 
 
 (2) The provisions of the National Environmental Policy Act of 1969 shall apply to 
 the actions of the Secretary (A) during the process of the closing or realigning of a 
 military installation after such military installation has been selected for closure or 
 realignment but before the installation is closed or realigned and the functions relo- 
 cated, and (B) during the process of the relocating of functions from a military in- 
 stallation being closed or realigned to another military installation after the receiv- 
 ing installation has been selected but before the functions are relocated. In applying 
 the provisions of such Act, the Secretary shall not have to consider — 
 
 (i) the need for closing or realigning a military installation which has been 
 selected for closure or realignment by the Commission; 
 
 (ii) the need for transferring functions to another military installation which 
 has been selected as the receiving installation; or 
 
 (iii) alternative military installations to those selected. 
 
 (3) A civil action for judicial review, with respect to any requirement of the Na- 
 tional Environmental Policy Act of 1969 to the extent such Act is applicable under 
 paragraph (2) or with respect to any requirement of the Commission made by this 
 Act, of any action or failure to act by the Secretary during the closing, realigning, 
 or relocating referred to in clauses (A) and (B) of paragraph (2) or of any action or 
 failure to act by the Commission under this Act may not be brought later than the 
 60th day after the date of such action or failure to act, except that, with respect to 
 any such action or failure to act by the Secretary, if a party shows that he did not 
 know of the act or failure to act by the Secretary and that a reasonable person 
 acting under the circumstances would not have known, such party may bring a civil 
 action not later than the 60th day after the date such party acquired actual or con- 
 structive knowledge of such action or failure to act. 
 
 SEC. 6. WAIVER. 
 
 The Secretary may carry out this Act without regard to — 
 
(1) section 1362 of the Department of Defense Authorization Act, 1987 (Public 
 Law 99-661; 100 Stat. 3816); 
 
 (2) section 709 of the Military Construction Authorization Act, 1972 (Public 
 Law 92-145; 85 Stat. 394); 
 
 (3) section 810 of the Military Construction Authorization Act, 1968 (Public 
 Law 90-110; 81 Stat. 279); and 
 
 (4) the procedures set forth in sections 2662 and 2687 of title 10, United States 
 Code. 
 
 SEC. 7. REPORTS. 
 
 As part of each annual request for authorization of appropriations, the Secretary 
 shall transmit to the Committees on Armed Services of the Senate and the House of 
 Representatives — 
 
 (Da schedule of the closure and realignment actions to be carried out under 
 this Act in the fiscal year for which the request is made and an estimate of the 
 total cost savings to be achieved by each such closure and realignment and of 
 the time period in which these savings are to be achieved in each case, together 
 with — 
 
 (A) an assessment of the environmental effects of such actions; and 
 
 (B) an accounting of the amounts requested for economic adjustment as- 
 sistance, community planning assistance, and environmental restoration to 
 carry out the plans described in subsections (c) and (d) of section 3 during 
 such fiscal year; and 
 
 (2) a description of the military installations, including those under construc- 
 tion or planned, to which functions will be transferred as a result of such clo- 
 sures and realignments, together with the Secretary's assessment of the envi- 
 ronmental effects of such transfers. 
 
 SEC. 8. FUNDING. 
 
 (A) Account. — (1) There is hereby established on the books of the Treasury the 
 Department of Defense Base Closure Account which shall be administered by the 
 Secretary and the Secretary of the Treasury as a single account. 
 
 (2) There shall be deposited into the Account — 
 
 (A) funds appropriated to the Account; 
 
 (B) any funds that the Secretary may, subject to approval in an appropriation 
 Act, transfer to the Account from funds appropriated to the Department of De- 
 fense for any purpose, except that such funds may be transferred only after the 
 date on which the Secretary transmits written notice of, and justification for, 
 such transfer to the appropriate committees of Congress; and 
 
 (C) proceeds described in section 5(b)(2). 
 
 (3) Not more than $300,000,000 is authorized to be transferred pursuant to para- 
 graph (2)(B) to the Account in fiscal year 1989. No funds are authorized to be appro- 
 priated to the Account in such fiscal year. With respect to fiscal years beginning 
 after fiscal year 1989, the amounts authorized to be appropriated or transferred to 
 the Account shall be determined in annual authorization Acts. 
 
 (4) The Secretary may use the funds in the Account only for the purposes de- 
 scribed in section 5(a). When a decision is made to use funds in the Account to carry 
 out a construction project under section 5(a)(1) and the cost of the project will be 
 greater than the maximum amount for a minor construction project, the Secretary 
 shall notify in writing the appropriate committees of Congress of the nature of and 
 justification for the project and the amount of expenditures for it. 
 
 (5) No later than 60 days after the end of each fiscal year in which the Secretary 
 carries out activities under this Act, the Secretary shall transmit a report to the 
 appropriate committees of Congress of the amount and nature of the deposits into, 
 and the expenditures from, the Account during such fiscal year and of the amount 
 of other expenditures made pursuant to section 5(a) during such fiscal year. 
 
 (6) Unobligated funds which remain in the Account after the termination of the 
 authority of the Secretary to carry out a closure or realignment under this Act shall 
 be held in the Account until transferred by law after the appropriate committees of 
 Congress received the report transmitted under paragraph (7). 
 
 (7) No later than 60 days after the termination of the authority of the Secretary 
 to carry out a closure or realignment under this Act, the Secretary shall transmit to 
 the appropriate committees of Congress a report containing an accounting of — 
 
 (A) all the funds deposited into and expended from the Account or otherwise 
 expended under this Act; and 
 
 (B) any amount remaining in the Account. 
 
 (b) Use of Funds. — Funds which are appropriated or transferred to the Account 
 or otherwise appropriated specifically for purposes of carrying out this Act or which 
 
may otherwise be used to carry out the closure or realignment of any military in- 
 stallation under this Act shall be available to the Secretary for the purpose of carry- 
 ing out the closure or realignment under this Act of all military installations to be 
 closed or realigned of this Act, subject only to the requirements of this Act. This 
 subsection shall apply to all funds appropriated after the date of the enactment of 
 this Act, and another provision of law does not supersede this subsection unless it 
 does so by specifically referring to this subsection and stating that it supersedes this 
 subsection. 
 
 SEC. 9. DEFINITIONS. 
 
 In this Act: 
 
 (1) The term "Account" means the Department of Defense Base Closure Ac- 
 count established by section 8(a)(1). 
 
 (2) The term "appropriate committees of Congress" means the Committees on 
 Armed Services and the Committees on Appropriations of the Senate and the 
 House of Representatives. 
 
 (3) The terms "Commission on Base Realignment and Closure" and "Commis- 
 sion" mean the commission established by the Secretary of Defense in the char- 
 ter signed by the Secretary on May 3, 1988. 
 
 (4) The term "charter establishing such Commission" means the charter re- 
 ferred to in paragraph (3). 
 
 (5) The term "initiate" includes any action reducing functions or civilian per- 
 sonnel positions but does not include studies, planning, or similar activities car- 
 ried out before there is a reduction of such functions or positions. 
 
 (6) The term "military installation" means a base, camp, post, station, yard, 
 center, or other activity under the jurisdiction of the Secretary of a military de- 
 partment. 
 
 (7) The term "realignment" means any action which both reduces and relo- 
 cates functions and civilian personnel positions. 
 
 (8) The term "Secretary" means the Secretary of Defense. 
 
 (9) The term "United States" means the 50 States, the District of Columbia, 
 the Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, 
 and any other Commonwealth, territory, or possession of the United States. 
 
 Explanation of Amendment 
 
 The committee adopted an amendment in the nature of a substi- 
 tute during its consideration of H.R. 4481. The amendment would 
 require the Secretary of Defense to close or realign all of the mili- 
 tary installations, both domestic and overseas, recommended by a 
 commission on base realignment and closure appointed by the Sec- 
 retary on May 3, 1988. If the Secretary decides to accept the com- 
 mission's recommendations, he would be required to report his de- 
 cision, along with a list of the bases to be closed or realigned, to 
 Congress by January 15, 1989. All actions would have to be initiat- 
 ed no later than September 30, 1991, and completed no later than 
 September 30, 1995. To preserve Congressional oversight preroga- 
 tives, the amendment contains a provision that would provide for a 
 resolution of disapproval process with expedited procedures. 
 
 For the purpose of implementing the closures or realignments, a 
 defense base closure account would be established by the commit- 
 tee amendment. Funding would be obtained by direct appropria- 
 tions, transfers, and proceeds from the sale of property at the 
 closed bases. 
 
 To expedite the closures and realignments, the Federal Property 
 and Administrative Services Act of 1949 and the National Environ- 
 mental Policy Act of 1969 would be modified on a one-time basis. 
 
 To mitigate any adverse impact on the local community, the 
 committee amendment would provide for economic adjustment as- 
 sistance (including job retraining grants) and community planning 
 assistance to communities located near installations impacted by 
 
8 
 
 such closures or realignments, if the Secretary determines such as- 
 sistance is not available from other sources. 
 
 Under the committee amendment, the following issues would 
 have to be considered before a base could be closed or realigned: (1) 
 socio-economic impact; (2) future contingency, mobilization, and 
 force requirements; (3) environmental impact; (4) all costs associat- 
 ed with the closure, including costs to be borne by other agencies of 
 the federal government; and, (5) the extent and timing of potential 
 cost savings including whether the total cost savings realized from 
 the closure or realignment of the base would, by the end of the 6- 
 year period beginning with the date of the completion of the clo- 
 sure or realignment, exceed the amount expended to close or re- 
 laign the base. 
 
 In addition, the committee amendment would require the Secre- 
 tary to submit a plan, including an estimate of the associated cost, 
 for accomplishing environmental restoration at the closed base. 
 Such restoration would have to be completed in compliance with 
 all applicable laws within five years after completion of the closure 
 or realignment. 
 
 The committee amendment would require the Secretary to pro- 
 vide periodic reports to the appropriate committees of Congress on 
 the deposits and disbursements from the base closures account. 
 
 Purpose 
 
 The purpose of H.R. 4481, as amended, would be to streamline 
 procedures on a one-time basis to expedite the realignment and clo- 
 sure of unneeded military installations. 
 
 Background and Discussion 
 
 In testimony before the committee. Honorable Frank C. Carlucci, 
 Secretary of Defense, stated that the Department of Defense is 
 uanble to close or realign unneeded military installations because 
 of impediments, restrictions, and delays imposed by provisions of 
 current law. The Secretary further stated that savings from closing 
 a base are significant and perpetual. Examples of cost savings cal- 
 culated from a prior notional list of base closures were provided to 
 the committee as follows: 
 
 Military mission disestablished 
 
 Net one-time costs: $12 Million. ^ 
 
 Annual recurring savings upon implementation: $6 Million. 
 
 One-time costs would be repaid in 2 years. 
 
 Military mission relocated 
 
 Net one-time costs: $240 Million. ^ 
 
 Annual recurring savings upon implementation: $40 Million. 
 
 One-time costs would be repaid in 6 years. 
 
 H.R. 4481, to provide for the closing and realigning of certain 
 military installations during a certin period, was introduced by 
 Congressman Richard K. Armey, for himself. Chairman Les Aspin, 
 
 ' According to the Secretary's testimony, these costs do not include economic adjustment as- 
 sistance grants or environmental clean-up costs. 
 
and Congressman William L. Dickinson, Ranking Republican of the 
 Committee on Armed Services, on April 28, 1988, and was jointly 
 referred to the Committees on Armed Services, Government Oper- 
 ations, and Merchant Marine and Fisheries. 
 
 H.R. 4481, as introduced, would expedite procedures under which 
 the Secretary of Defense could close or realign all military installa- 
 tions recommended by a commission on base realignment and clo- 
 sure appointed by the Secretary on May 3, 1988. If the Secretary 
 decides to accept the commission's recommendations, he would be 
 required to report his decision, along with a list of the bases to be 
 closed or realigned, to Congress by January 15, 1989. Under H.R. 
 4481, as introduced, the following laws would be waived on a one- 
 time basis: 
 
 (1) Any provision of the Federal Property and Administra- 
 tive Services Act of 1949 that restricts the Secretary of Defense 
 from disposing of real property; 
 
 (2) Any provision of law included in appropriations or au- 
 thorization acts that restricts the use of appropriated funds for 
 closing or realigning military installations; 
 
 (3) Section 2687 of title 10, United States Code, the Base Clo- 
 sures and Realignment Act, which establishes certain criteria 
 and procedures for base closures and realignments; 
 
 (4) Section 2662 of title 10, United States Code, which pro- 
 vides for Congressional notification relating to the acquisition 
 or disposal of real property by the Secretary of Defense; and 
 
 (5) The National Environmental Policy Act of 1969. 
 Finally, H.R. 4481, as introduced, would establish a Defense Base 
 
 Closure Account for the purpose of implementing the Act that 
 would be funded with direct appropriations, transfers, and proceeds 
 from the sale of real property at the closed bases. Economic adjust- 
 ment assistance and community planning assistance would be pro- 
 vided to communities located near installations being impacted by 
 closures and realignments if the Secretary determines such assist- 
 ance is required and is not available from other sources. 
 
 Committee Hearings 
 
 The Defense Policy Panel and the Subcommittee on Military In- 
 stallations and Facilities, met jointly on May 18 and 19, 1988, to 
 conduct hearings on H.R. 4481, as introduced. Testimony was re- 
 ceived from the Honorable Frank C. Carlucci, Secretary of Defense; 
 Lawrence J. Korb, former Assistant Secretary of Defense for Man- 
 power, Installations and Logistics; Mr. Robert Pirie, former Assist- 
 ant Secretary of Defense for Manpower, Reserve Affairs and Logis- 
 tics; Dr. Robert M. Rauner, Director of the Office of Economic Ad- 
 justment, Department of Defense; Representative Richard K. 
 Armey of Texas; and Representative Patricia Schroeder of Colora- 
 do. 
 
 Full committee markup of H.R. 4481 was held on June 8, 1988. In 
 order to simplify the action of the committee, an amendment in 
 the nature of a substitute was offered incorporating several amend- 
 ments that had previously been offered informally by Members of 
 the committee. The amendment in the nature of a substitute to 
 H.R. 4481 was favorably reported, by voice vote. 
 
10 
 
 With the exception of the following changes, the committee 
 amendment includes the basic provisions of H.R. 4481, as intro- 
 duced: 
 
 PROPERTY DISPOSAL 
 
 Real property disposal would be accomplished under the provi- 
 sions of the Federal Property and Administrative Services Act of 
 1949 with the following exceptions: (1) after land is declared excess 
 by the Secretary of Defense, the Administrator of the General 
 Services Administration (GSA) would assume all costs for security 
 and maintenance until the property is sold, at which time the Sec- 
 retary would reimburse GSA for any expenses incurred in the sale 
 of the property; and (2) all proceeds from the sale of the property 
 would be deposited into the Defense base closures account. 
 
 NATIONAL ENVIRONMENTAL POLICY ACT OF 1969 (NEPA) 
 
 The provisions of the National Environmental Policy Act of 1969 
 (NEPA) would apply with the following exception: (1) neither the 
 commission nor the Secretary of Defense would have to comply 
 with NEPA prior to recommending and selecting bases for closure 
 or realignment; (2) the Secretary would not have to justify the need 
 to close or realign particular installations and would not have to 
 examine alternative bases for closure; and (3) to expedite the proc- 
 ess, complaints would have to be filed in court within sixty days of 
 the Secretary's final decision under NEPA. 
 
 OVERSEAS BASES 
 
 The commission would have to study overseas as well as domestic 
 bases for closure or realignment; however, overseas bases recom- 
 mended for closure would be exempt from certain provisions of the 
 Act relating to domestic bases. 
 
 CONGRESSIONAL OVERSIGHT 
 
 The committee amendment would provide for a resolution of dis- 
 approval process with expedited procedures. 
 
 COMMISSION STAFFING 
 
 The committee amendment includes a provision stating that the 
 staff of the commission should be non-partisan and selected on the 
 basis of ability. 
 
 ECONOMIC ADJUSTMENT ASSISTANCE 
 
 Action could not be initiated before January 1, 1990, on any base 
 recommended by the Secretary for closure or realignment on Janu- 
 ary 15, 1989. Grants for job retraining programs would be provided 
 under economic adjustment assistance under provisions of the com- 
 mittee amendment. 
 
 ENVIRONMENTAL RESTORATION 
 
 The committee amendment requires that, prior to initiating the 
 closure or realignment of a military installation, the Secretary of 
 Defense would be required to complete a study of environmental 
 
11 
 
 restoration requirements at such installation, and develop a plan to 
 accomplish such restoration within 5 years (unless he determines 
 that extraordinary circumstances require a longer restoration). In 
 addition, the plan would include a statement of the amounts the 
 Secretary plans to request during each fiscal year to accomplish 
 the environmental restoration. 
 
 In determining whether to recommend the closure or realign- 
 ment of any military installation, the Commission on Base Realign- 
 ment and Closure would be required to take into consideration the 
 estimated costs of, and the feasibility of accomplishing, environ- 
 mental restoration, and removal of hazardous or toxic materials 
 and ordnance. 
 
 The committee amendment would further restrict the transfer of 
 real property at a military base to be closed or realigned under this 
 Act to the General Services Administration until environmental 
 restoration has been completed and the property is in a condition 
 that would permit its disposal by the Federal government in ac- 
 cordance with applicable law. 
 
 SOCIO-ECONOMIC IMPACT PLAN 
 
 Before any closure or realignment could occur under this Act, 
 the Secretary would be required to complete a study of the socio- 
 economic impact on the area, and develop a plan to minimize such 
 impact. 
 
 COST-SAVINGS ANALYSIS 
 
 Under the committee amendment, the commission would be re- 
 quired to take into consideration the estimated total costs to be ex- 
 pended by all agencies and instrumentalities of the Federal govern- 
 ment before recommending whether to close or realign a base. In 
 addition, a report by the commission would be required to be sub- 
 mitted to the Secretary and to the Congress on the estimated ex- 
 penditures and savings to be realized by such closure or realign- 
 ment. 
 
 Section-by-Section Analysis 
 
 SECTION 1 — short TITLE 
 
 Section 1 of the committee amendment would provide for the Act 
 to be cited as the ''Defense Savings Act of 1988". 
 
 SECTION 2— CLOSURE AND REALIGNMENT OF MILITARY INSTALLATIONS 
 
 Section 2 would require that the Secretary of Defense close or re- 
 align all military installations recommended by the Commission on 
 Base Realignment and Closure. All such actions would be initiated 
 no later than September 30, 1991, and completed no later than Sep- 
 tember 30, 1995, However, no closure or realignment could be initi- 
 ated before January 1, 1990. 
 
 SECTION 3 — CONDITIONS 
 
 Section 3(a) would require that in order to close any base under 
 this Act, the Secretary must report to Congress no later than Janu- 
 
12 
 
 ary 16, 1989, that he has decided to accept and implement all of the 
 closures and realignments recommended by the Commission. 
 
 Section 3(b) would provide that no action could be taken to close 
 or realign any base if a joint resolution of disapproval is enacted 
 within 45 legislative days beginning on March 1, 1989. This section 
 also describes the nature of the resolution and the expedited proce- 
 dures by which it would be considered. 
 
 Section 3(c) would require the Secretary of Defense to complete a 
 study of the socio-economic impact of the closure or realignment on 
 the area in which the installation is located and to develop a plan 
 to minimize the impact. 
 
 Section 3(d) would require the Secretary of Defense to complete a 
 study of the environmental restoration needed before the real prop- 
 erty and facilities at such an installation could be disposed of by 
 the Federal Government in accordance with applicable law and de- 
 velop a plan to accomplish the restoration within 5 years. 
 
 The socio-economic impact plan and the environmental plan for 
 an installation would be developed before the first budget submis- 
 sion request for funds for closure or realignment of the installation 
 is made. All of these plans are to be submitted in time to meet the 
 requirement that all closures and realignments are to be initiated 
 under this Act by September 30, 1991. 
 
 Section 3(e) would provide that the authority of the Secretary to 
 carry out this Act would terminate on October 1, 1995. 
 
 SECTION 4 — THE COMMISSION 
 
 Section 4(a) would require the Commission on Base Realignment 
 and Closure to transmit their report on closures and realignments 
 to the Secretary of Defense no later than January 6, 1989. Along 
 with the list of facilities to be closed or realigned, the report would 
 contain a description of the installations that would receive func- 
 tions as a result of the recommended closure or realignment. On 
 the same date that the Secretary receives the report, he would 
 transmit a copy to the Committees on Armed Services of the 
 Senate and House of Representatives along with the statement 
 from the commission certifying that it has identified the military 
 installations to be closed or realigned by reviewing all military in- 
 stallations inside and outside the United States, including those 
 under construction or planned. 
 
 Section 4(b) would provide for public hearings during December 
 1988, after a tentative list of bases recommended by the Commis- 
 sion to be closed or realigned is published in the Federal Register 
 on December 1, 1988. 
 
 Section 4(c) states that the professional staff of the Commission 
 should be selected on the basis of their training, experience, attain- 
 ments, and in a manner that would assure the impartiality and in- 
 dependence of the Commssion. Each professional staff member 
 should be nonpartisan. 
 
 Section 4(d) would require that the Commission take into consid- 
 eration the following in determining whether to recommend a par- 
 ticular base for closure or realignment: 1) the estimated costs of, 
 and the feasibility of accomplished, environmental restoration, re- 
 moval of hazardous or toxic materials and ordnance, and historic 
 
18 
 
 preservation; and 2) the estimated total costs to be expended by all 
 agencies and instrumentalities of the Federal Government as a 
 result of the closure or realignment. The Commission would in- 
 clude in the report provided to the Secretary and the Congress an 
 accounting of the estimated expenditures to be made and savings 
 to be realized by the Federal Government for each closure or re- 
 alignment recommended by the Commission. 
 
 Section 4(e) would require that the Commission take into consid- 
 eration the potential to accommodate contingency, mobilization, 
 and future force requirements at receiving locations. Furthermore, 
 the Commission could not recommend the closure or realignment 
 of an installation unless it makes a determination that the total 
 cost savings realized from the closure or realignment will, by the 
 end of the six-year period beginning with the date of the comple- 
 tion of the closure or realignment, exceed the amount expended to 
 close or realign the base. The Commission would select a discount 
 rate to be used in making the determination. 
 
 SECTION 5 — IMPLEMENTATION 
 
 Section 5(a) would authorize the Secretary, subject to the avail- 
 ability of appropriations and to the availability of funds in the 
 Base Closure Account, to carry our actions necessary to implement 
 closures and realignments and provide economic adjustment assist- 
 ance, community planning assistance, and environmental restora- 
 tion. 
 
 Section 5(b) would require the Secretary to notify all military de- 
 partments, agencies and other instrumentalities within the Depart- 
 ment of Defense of the availability of property or facilities located 
 at a military installation to be closed or realigned. Such property 
 or facility could be transferred without cost to the department, 
 agency or instrumentality, without reimbursement, except that pri- 
 ority would be given to any department, agency, or instrumentality 
 that offers to pay fair market value. 
 
 All proceeds from any transfer or other disposal of such property 
 would be deposited into the Base Closure Account, except for the 
 reimbursement to the General Services Administration (G.S.A.) for 
 any expense incurred in managing, maintaining, and disposing of 
 the property. Any property in need of environmental restoration 
 would not be transferred to the G.S.A. until it had been restored by 
 the Secretary to a condition that would permit disposal of it by the 
 Federal Government in accordance with applicable law. Once the 
 property is transaferred to G.S.A., the Secretary would not be per- 
 mitted to expend funds to maintain, secure or operate the facility 
 unless an agreement had been reached with the Administrator of 
 G.S.A. that would provide for reimbursement to the Department 
 for any expenses incurred by the Department. 
 
 Section 5(c) would provide that the provisions of the National En- 
 vironmental Policy Act (NEPA) would not apply to the following 
 actions of the Commission: (1) selecting certain military installa- 
 tions for closure or realignment; (2) selecting an installation to re- 
 ceive functions from an installation to be closed or realigned; or (3) 
 making the report to the Secretary and to the Congress. This sec- 
 tion would further provide that the provisions of NEPA would not 
 
14 
 
 apply to the following actions of the Secretary: (1) establishing the 
 Commission; (2) determining whether to accept the recommenda- 
 tions of the Commission; (3) selecting any military installation to 
 receive functions; or (4) transmitting the report to Congress. 
 
 The section would provide for the provisions of NEPA to apply to 
 the actions of the Secretary during the process of closing or re- 
 aligning a military installation after it has been selected for clo- 
 sure or realignment, but before it has been closed or realigned and 
 the functions relocated and to installations selected to receive func- 
 tions prior to those functions being relocated. 
 
 In applying the provision of the Act, the Secretary would not 
 have to consider the need for closing for realigning the installation, 
 the need to transfer functions to another location, or alternative 
 military installations to those selected. 
 
 This section would require a party filing a civil action for judicial 
 review, with respect to any requirement of NEPA or any require- 
 ment of the Commission, to do so within 60 days of the contested 
 action or failure to act. 
 
 SECTION 6 — W^AIVER 
 
 Section 6 would waive provisions of three previous authorization 
 acts that restrict the closure or realignment of certain bases. It 
 would also waive current base closure legislation and legislation re- 
 quiring Congressional notification before disposal or acquisition of 
 federal property. Provisions of title 10 of the United States Code, of 
 military authorization Acts, and of other laws not waived in this 
 section or section 5(c) would apply to actions carried out under this 
 Act. 
 
 SECTION 7 — REPORTS 
 
 Section 7 would require certain reports to be included as part of 
 each annual budget request. Such reports would include the follow- 
 ing: (1) a schedule of the closure or realignment actions to be car- 
 ried out under this Act in the fiscal year for which the request is 
 made; (2) an estimate of the total cost savings to be achieved and 
 the time period in which these savings are to be realzed; (3) an as- 
 sessment of the environmental effects of the action; and (4) an ac- 
 counting of the amounts requested for economic adjustment assist- 
 ance, community planning asssitance, and environmental restora- 
 tion to carry out the plans. A report would also be required that 
 would identify the military installations, including those under 
 construction or planned, to which functions would be transferred 
 as a result of the closure or realignment, together with an assess- 
 ment of the environmental effects of such transfer. 
 
 SECTION 8 — FUNDING 
 
 Section 8(a) would authorize the establishment of the Depart- 
 ment of Defense Base Closure Account. Funds would be deposited 
 into the Account through direct appropriations, transfer of funds 
 from other accounts approved in appropriation Acts, and proceeds 
 from the sale of property at the bases to be closed or realigned. 
 
 Not more than $300 million would be authorized for transfer into 
 the Account in fiscal year 1989. Any amounts authorized for appro- 
 
priations or transfers into the Account after fiscal year 1989 would 
 be determined by annual authorization acts. 
 
 Any expenditure from the Account for a construction project 
 over $1 million would require the Secretary to notify the appropri- 
 ate committees of Congress of the nature of and justification for 
 the project and the amount of expenditure. 
 
 No later than 60 days after the end of each fiscal year, the Secre- 
 tary would be required to transmit a report to Congress on the 
 amount and nature of deposits into and the expenditures from the 
 Account during that fiscal year. Any unobligated funds remaining 
 in the Account after the termination of the authority under this 
 Act would be held in the Account until transferred by law. No 
 later than 60 days after the termination of the authority of the 
 Secretary to carry out a closure or realignment, the Secretary 
 would be required to submit a report to the appropriate committees 
 of Congress accounting for all funds deposited into and expended 
 from the Account, or otherwise expended under the Act, and any 
 amounts remaining in the Account. 
 
 Section 8(b) would provide that funds available to carry out this 
 Act are available for the closure or realignment of all installations 
 to be closed or realigned under this Act. 
 
 SECTION 9— DEFINITIONS 
 
 Section 9 would define the terms used throughout the Act. 
 Departmental Position 
 
 The Department of Defense opposes H.R. 4481, as reported, and 
 as indicated in the following letter. The committee has no informa- 
 tion regarding the Department of Defense position on H.R. 4481, as 
 introduced, although such a report was formally requested on May 
 4, 1988. 
 
 General Counsel of the Department of Defense, 
 
 Washington, DC, June 22, 1988. 
 Hon. Les Aspin, 
 Chairman, Committee on Armed Services, Washington, DC 
 
 Dear Mr. Chairman: This is in response to the telephonic re- 
 quest made by your staff yesterday for the Department's position 
 on the Committee-reported version of H.R. 4481. 
 
 The Department supports passage of legislation to expedite ac- 
 complishment of the recommendations of the Secretary's Commis- 
 sion on Base Realignment and Closure. The Department prefers 
 the legislation as introduced by Congressman Armey, you and Con- 
 gressman Dickinson to the version reported by the Committee. 
 While the Department is willing to work with the Congress to 
 ensure that legitimate environmental and economic concerns are 
 addressed, the net effect of the Committee's amendments to H.R. 
 4481 is to make realignments and closures more difficult under the 
 "expedited" procedures than under current law. In addition, the 
 Department vigorously opposes the inclusion of overseas bases 
 within the mandate of the Commission. That provision could seri- 
 ously hinder sensitive ongoing base rights negotiations being con- 
 ducted in various parts of the world. 
 
16 
 
 The Department of Justice may provide the Committee with ad- 
 ditional views on H.R. 4481. 
 
 The Office of Management and Budget advises that, from the 
 standpoint of the Administration's program, it has no objection to 
 the presentation of this report. 
 Sincerely, 
 
 Kathleen A. Buck. 
 
 Committee Position 
 
 The Committee on Armed Services, on June 8, 1988, a quorum 
 being present, agreed by voice vote to report an amendment in the 
 nature of a substitute to H.R. 4481. 
 
 Fiscal Data 
 
 Pursuant to clause 7 of rule XIII of the Rules of the House of 
 Representatives, the committee attempted to ascertain annual out- 
 lays resulting from the bill as amended during fiscal year 1989 and 
 the four following fiscal years. 
 
 No official cost estimate was received from the Department of 
 Defense. 
 
 Congressional Budget Office Estimate 
 
 In compliance with clause 2(1)(3)(C) of rule XI of the Rules of the 
 House of Representatives, the estimates prepared by the Congres- 
 sional Budget Office and submitted pursuant to section 403 of the 
 Congressional Budget Act of 1974 are included hereafter on the 
 bill, H.R. 4481, as introduced and as amended: 
 
 U.S. Congress, 
 Congressional Budget Office, 
 
 Washington, DQ June 2, 1988. 
 Hon. Les Aspin, 
 
 Chairman, Committee on Armed Services, 
 Washington, DC 
 
 Dear Mr. Chairman: The Congressional Budget Office has exam- 
 ined H.R. 4481, as introduced on April 28, 1988. This bill provides 
 for the closing and realigning of certain military bases following 
 recommendations of the Commission on Base Realignment and Clo- 
 sure. The Commission is currently chartered within the Depart- 
 ment of Defense (DoD) to identify military bases to be closed or re- 
 aligned and report its recommendations to the Secretary of Defense 
 by December 31, 1988. 
 
 Since the Commission has already been established by the Secre- 
 tary of Defense, its costs would be unaffected by this bill. However, 
 the bill authorizes up to $300 million per fiscal year to be appropri- 
 ated or transferred to an account set up to defray one-time costs of 
 base closures. 
 
 CBO has not estimated the budgetary impact of the base closures 
 and realignments that might occur following enactment of H.R. 
 4481. It is impossible to predict which or how many such actions 
 will be recommended by the Commission and whether or not the 
 Secretary will implement them. DoD has estimated that a typical 
 closure might result in one-time costs of $12 to $240 million, with 
 
17 
 
 recurring annual savings of $6 million to $40 million. These 
 amounts could vary widely depending on the size of the base affect- 
 ed and whether its operations were combined with those of an ex- 
 isting base or discontinued altogether. 
 
 H.R. 4481 requires the Secretary to implement all of the recom- 
 mendations of the Commission, if he chooses to implement any of 
 them. It also permits the Secretary to carry out the base closures 
 without regard to various provisions of the Federal Property and 
 Administrative Services Act and the National Environmental 
 Policy Act. In addition, the bill establishes a Defense Base Closure 
 Account to be administered by the Secretary of Defense for the 
 purpose of paying those costs associated with closing or realigning 
 bases as recommended by the Commission. 
 
 The waiver of the Federal Property and Administrative Services 
 Act would exempt DoD from the normal procedures for disposition 
 of excess property resulting from a closure or realignment. Under 
 current law, the General Services Administration (GSA) seeks al- 
 ternative public uses for excess property, first at the Federal level 
 and then through state and local governments. If no alternative 
 public use is found, the property is offered for sale to the public 
 and any proceeds are placed in the Treasury. H.R. 4481 would 
 allow DoD, rather than GSA, to oversee the disposition of excess 
 property resulting from base closures or realignments, though simi- 
 lar requirements for giving priority to alternative public uses 
 would apply. Any proceeds from property sales to the public would 
 be deposited to the Defense Base Closure Account and used to 
 defray the near-term costs of base closures. This provision would 
 allow direct spending of money that would otherwise require 
 annual appropriations. Therefore, it would result in increased costs 
 to the federal government when funds are used for base closure ex- 
 penses instead of being deposited in the Treasury. In the absence of 
 any information about specific closures and realignments, there is 
 no way of estimating the size of the increase. 
 
 The waiver of the National Environmental Policy Act would 
 exempt the Secretary of Defense from having to perform certain 
 environmental assessments and public impact analyses before de- 
 ciding whether or not to accept the Commission's recommenda- 
 tions. Typically, these requirements have resulted in lengthy 
 delays in the closure process. Thus, the effect of the waiver might 
 be to increase the likelihood of implementation. 
 
 We would be pleased to provide further details on this cost esti- 
 mate if you so desire. 
 Sincerely, 
 
 James L. Blum, 
 Acting Director. 
 
18 
 
 U.S. Congress, 
 Congressional Budget Office, 
 
 Washington, DC, June 15, 1988. 
 Hon. Les Aspin, 
 
 Chairman, Committee on Armed Services, 
 Washington, DC 
 
 Dear Mr. Chairman: The Congressional Budget Office has exam- 
 ined an amendment in the nature of a substitute for H.R. 4481, as 
 ordered reported by the Committee on Armed Services on June 8, 
 1988. This amendment provides for the closing and realigning of 
 certain military bases following recommendations of the Commis- 
 sion on Base Realignment and Closure. The Commission is current- 
 ly chartered within the Department of Defense (DoD) to identify 
 military bases to be closed or realigned and report its recommenda- 
 tions to the Secretary of Defense by December 31, 1988. 
 
 Since the Commission has already been established by the Secre- 
 tary of Defense, its costs would be unaffected by this amendment. 
 The legislation authorizes up to $300 million to be transferred by 
 the Secretary of Defense to an account set up to defray one-time 
 costs of base closures. However, the amendment states that no 
 funds are authorized to be appropriated to the account in fiscal 
 year 1989. 
 
 CBO has not estimated the budgetary impact of the base closures 
 and realignments that might occur following enactment of this leg- 
 islation. It is impossible to predict which or how many such actions 
 will be recommended by the Commission and whether or not Con- 
 gress will approve them. DoD has estimated that a typical closure 
 might result in one-time costs of $12 million to $240 million, with 
 recurring annual savings of $6 million to $40 million. These 
 amounts could vary widely depending on the size of the base affect- 
 ed and whether its operations were combined with those of an ex- 
 isting base or discontinued altogether. 
 
 This legislation stipulates that the Secretary of Defense may not 
 carry out any closure or realignment if Congress enacts a joint res- 
 olution disapproving the recommendations of the Commission. It 
 also specifies conditions under which the National Environmental 
 Policy Act shall apply during the closure and realignment process. 
 In addition, the amendment imposes various reporting require- 
 ments on the Secretary and the Commission in the areas of envi- 
 ronmental and economic effects. There is no cost to these reporting 
 requirements because the Commission as currently chartered al- 
 ready intends to conduct such studies. This legislation also requires 
 the Commission to hold public hearings regarding its tentative rec- 
 ommendations one month before making final recommendations to 
 the Secretary. Another provision of the amendment establishes a 
 Defense Base Closure Account to be administered by the Secretary 
 of Defense for the purpose of paying those costs associated with 
 closing or realigning bases as recommended by the Commission. 
 
 This legislation also stipulates that the Commission may only 
 recommend closures or realignments in which the estimated dis- 
 counted total savings will exceed the initial closure or realignment 
 costs within 6 years. Because this provision reduces the total uni- 
 verse of bases from which the Commission may select its candi- 
 
19 
 
 dates, it may ultimately reduce the savings brought about by the 
 closure and realignment process. However, there is no way to esti- 
 mate the amount by which savings would be reduced. 
 
 The amendment would allow the Secretary to transfer or sell 
 any excess property resulting from closures or realignments to 
 other instrumentalities within the Department of Defense. Any 
 property not disposed of in this manner would then be subject to 
 existing laws which authorize the Administrator of the General 
 Services Administration to dispose of it through sale or transfer. 
 However, this legislation specifies that any proceeds of excess prop- 
 erty sales, net of distribution expenses incurred by the Administra- 
 tor, shall be deposited into the Defense Base Closure Account and 
 used to defray the near-term costs of base closures. This provision 
 would allow direct spending of money that would otherwise require 
 annual appropriations. Therefore, it would result in increased costs 
 to the federal government when funds are used for base closure ex- 
 penses instead of being deposited in the Treasury. In the absence of 
 any information about specific closures and realignments, there is 
 no way of estimating the size of the increase. 
 
 We would be pleased to provide further details on this cost esti- 
 mate if you so desire. 
 Sincerely, 
 
 C.G. NUCKOLS 
 
 (For James L. Blum, Acting Director). 
 Committee Cost Estimate 
 
 The committee concurs with the estimate of the Congressional 
 Budget Office. 
 
 Inflation Impact Statement 
 
 Pursuant to clause 2(1)(4) of rule XI of the Rules of the House of 
 Representatives, the committee examined the possible inflationary 
 aspects of the bill, and believes that enactment of this legislation 
 will have no inflationary impact on the national economy. 
 
 Oversight Findings 
 
 With reference to clause 2(1)(3)(D) of rule XI of the Rules of the 
 House of Representatives, the committee has not received a report 
 from the Committee on Government Operations pertaining to this 
 committee's action. However, the Government Operations Commit- 
 tee has reported on H.R. 4481, to which it was jointly referred. 
 
 With reference to clause 2(b)(1) of rule X of the Rules of the 
 House of Representatives, the committee finds and recommends 
 that the legislation be enacted pursuant to its oversight responsibil- 
 ities. 
 
 Summary 
 
 PURPOSE 
 
 The purpose of H.R. 4481, as amended, is to streamline proce- 
 dures on a one-time basis to expedite the realignment and closure 
 of unneeded military bases. 
 
20 
 
 FISCAL DATA 
 
 The Congressional Budget Office has not estimated the budget- 
 ary impact of the base closures and realignments that might occur 
 following enactment of this legislation because it is impossible to 
 predict which or how many such actions will be recommended by 
 the Commission and whether or not Congress will approve them. 
 
 No official estimate has been received from the Department of 
 Defense on the costs and savings that might occur following enact- 
 ment of H.R. 4481, as amended. 
 
 DEPARTMENTAL POSITION 
 
 The Department of Defense is opposed to H.R. 4481, as amended. 
 The committee has received no report on the Department of De- 
 fense position on H.R. 4481, as introduced. 
 
 COMMITTEE POSITION 
 
 The Committee on Armed Services, on June 8, 1988, a quorum 
 being present, agreed by voice vote to favorably report an amend- 
 ment in the nature of a substitute to H.R. 4481. 
 
 O