Legislative Notice: H.R. 3979 – Fiscal Year 2015 Defense Authorization Act

Considerations on the Bill

The bill authorizes the following amounts:

• $91.4 billion in procurement funding, which is $1.9 billion more than the President’s budget request;
• $63.8 billion in funding for research, development, test, and evaluation, which is $292 million more than the requested level;
• $165.4 billion for operation and maintenance, which is $305 million less than the request;
• $134.7 billion for military personnel, which is $478 million less than the request;
• $6.6 billion for military construction, which is essentially the amount of the request.
• $17.5 billion for atomic energy defense activities, which is $349 million less than the request;
• $63.7 billion for Overseas Contingency Operations, which is essentially the amount of the request.

President Obama has notified Congress of his intention to use existing authorities to increase military pay this fiscal year by one percent. Due to the president’s decision to use his own authority on the military pay raise, this bill is silent on the matter. It goes on to authorize various other bonuses and special pay authorities aimed at encouraging enlistment, reenlistment, and continued service by active duty and reserve military personnel.

The bill contains no authorization for the use of force in counter-ISIL operations.

Notable Bill Provisions

Section 623 – COLA adjustments for retirees

This section makes the COLA adjustments for military retirees done by legislation over the past year inapplicable to anyone joining the service prior to January 1, 2016. Section 403 of the Bipartisan Budget Act of 2013 reduced annual COLA increases by one percent less than the Consumer Price Index for military retirees under the age of 62. Then, when these retirees reached age 62, their monthly retired pay would be readjusted as if this COLA reduction had not taken place, and they would receive the full COLA thereafter. Title X of Division C (Defense) of the fiscal year 2014 omnibus made this adjustment inapplicable to certain disabled military retirees and to those receiving annuity payments under the Survivor Benefits Program. Congress made these COLA adjustments inapplicable to any member who had joined the military prior to January 1, 2014. (Pub. L. No. 113-82). Section 623 of this bill amends this to make the COLA adjustments inapplicable to anyone joining prior to January 1, 2016. This provision does not score under CBO practice, although CBO does note it eventually will result in increased spending for military retirees. CBO has estimated in the past that this legislative action would require the department to increase its accrual payments to the Military Retirement Trust Fund by approximately $60 million annually beginning in fiscal year 2016. While these increased accrual payments count against the discretionary budget caps, they are intragovernmental transactions and do not score.

Section 702 – Tricare drug co-pays

Increases by three dollars certain pharmaceutical co-payments under the Tricare program. CBO estimates this provision saves $67 million in fiscal year 2015. The bill does not authorize the administration’s request for continual increases in Tricare pharmaceutical co-payments in subsequent fiscal years. Instead, as the Joint Explanatory Statement notes, it defers consideration of the matter until after the final report of the Military Compensation and Retirement Modernization Commission is received, which is expected February 2015.

Section 1032 – Facilities in the U.S. for Guantanamo detainees

Extends for one year the prohibition on the use of funds to construct or modify facilities in the United States for the purpose of housing Guantanamo detainees.

Section 1033 – Prohibiting Guantanamo detainee transfers to the U.S.

Extends for one year the prohibition on the use of funds to transfer to the United States Khalid Sheikh Mohammed or any other Guantanamo detainee.

Section 1052 – Compromises of classified information

Requires a report on actions taken by the secretary of defense in response to significant compromises of classified information.

Section 1209 – Train and equip Syrian opposition

This section authorizes through 2016 the secretary of defense to provide equipment, supplies, training, and defense services to assist appropriately vetted elements of the Syrian opposition for the purposes of defending the Syrian people from attacks by the Syrian regime; protecting the United States and the Syrian people from the threats posed by terrorists in Syria; and promoting the conditions for a negotiated settlement to end the conflict in Syria. It goes on to define appropriately vetted elements of the Syrian opposition as being assessed for associations with terrorist groups, militias supporting the government of Syria, and groups associated with the government of Iran; along with a commitment to promoting respect for human rights and the rule of law.

Section 1226 – Drawdown of forces in Afghanistan

Expresses the sense of Congress that, among other things, any drawdown of U.S. forces in Afghanistan should be considered in relation to security conditions on the ground at the time of the drawdown and recommendations of senior military commanders.

Section 1235 – Security cooperation with Pakistan

Requires a report on the nature and extent of bilateral security cooperation with Pakistan.

Section 1236 – ISIL

This section authorizes $1.6 billion in OCO funds to be used to provide assistance to Iraqi security forces, including Kurdish and tribal security forces, for the purposes of securing the territory of Iraq and defending it from the ISIL threat. It goes on to provide that no more than 25 percent of these funds may be used until 15 days after a report on the plan for such a program of assistance is submitted to Congress. It further provides that no more than 60 percent of these funds may be used until 15 days after the secretary certifies that foreign countries have contributed at least $640 million to this effort, at least $320 million of which must be contributed by Iraq. It also states the secretary should vet the recipients of such assistance.

Section 1241 ­ Cooperation with Russia

Prohibits the use of funds to be used for any bilateral military-to-military cooperation with Russia until the secretary certifies Russia has ceased its occupation of Ukraine, has ceased its aggressive activities that threaten the sovereignty and territorial integrity of Ukraine and NATO members, and is abiding by the Minsk Protocol regarding a ceasefire in eastern Ukraine.

Section 1244 – Russia’s violation of the INF treaty

Expresses the sense of Congress that Russia’s violation of the INF treaty adversely affects U.S. and NATO national security and that it is in the national security interest of the United States that the treaty remain in effect with Russian compliance. It then requires a report on Russia’s noncompliance, including a description of the president’s plan to resolve noncompliance issues.

Section 1275 – Assistance to Ukraine

Expresses the sense of Congress that the United States should provide lethal and non-lethal military assistance to Ukraine to defend its sovereignty and territory from further aggression to the extent such assistance is defensive and non-provocative in nature.

Section 1279 – Use of force against Iran

Provides a rule of construction that nothing in this act shall be construed as authorizing the use of force against Iran.

Section 1510 and section 1534 – Counterterrorism Partnership Fund

These sections, which are in the OCO Title of the bill, together authorize $1.3 billion for the Counterterrorism Partnership Fund. Of the $4 billion requested for the Department of Defense, $2.7 billion was not provided, as it was found to be “funding ahead of need.” This fund is directed at providing support to foreign security forces to facilitate counterterrorism and crisis response activities.

Section 1511 and section 1535 – European Reassurance Initiative

These sections, which are in the OCO Title of the bill, together authorize $1 billion to be appropriated for the European Reassurance Initiative. Funds are authorized to be used for, among other things, activities to increase the presence of the U.S. armed forces in Europe or to build the defense capability of partners in Europe. This includes authorizing at least $75 million for programs, activities, and assistance to support the government of Ukraine.

Section 1639 – ICAAN

Expresses the sense of Congress that the secretary of defense should support, within the interagency process, the transfer of the remaining role of the United States in the functions of ICAAN to a global multi-stakeholder community only if mechanisms are institutionalized to protect consensus-based decision-making within that community and assurances are provided for the protection of the current status of legacy top-level domain names and IP address numbers, particularly those used by the U.S. government for national security purposes.

Section 1651 – Russian violation of the INF treaty

Requires a report on any steps taken or planned by the secretary in response to the Russian violation of the INF treaty in order to reduce the negative impact on U.S. national security.

Section 2711 – BRAC

This section declines to provide the president’s request of authority to conduct another BRAC round, and further provides nothing in this bill should be construed to provide such authority.

Title XXX – Natural Resources and Public Lands Matters

The title includes 96 provisions regarding public lands and natural resources.

Subtitle A – Federal land conveyances

Provides for conveyance of more than 100,000 acres of land out of federal ownership to be used for economic development – including mineral production, coal production, timber production, and infrastructure projects – and community development – including a local cemetery and a shooting range. 

Subtitle A, Section 3003 – Mineral production

Provides access for development of the third-largest undeveloped copper resource in the world, capable of meeting 25 percent of U.S. copper demand.

Subtitle B, Section 3021 – Oil and natural gas permits

Facilitates oil and natural gas production on federal lands by reducing permit delays and extending a pilot program that helps the Bureau of Land Management deal with a backlog of drilling permit applications. 

Subtitle B, Section 3023 – Grazing permits

Facilitates grazing on federal lands by modifying authorities to help the BLM and the Forest Service deal with a backlog of grazing permit applications.  

Subtitle B, Section 3024 – Recreation Cabins

Sets a new fee schedule for recreational cabins on National Forest System land.

Subtitles C, D, E, and F – Conservation

Adds approximately 250,000 acres to the National Wilderness System, nearly half of which is currently roadless or wilderness study area. Includes approximately 100 miles of new wild and scenic river designations. Withdraws approximately 372,000 acres of federal land in two states from public land laws, mining laws, and mineral leasing laws. Creates five new national historical parks, transfers management of two existing federal areas to the National Park Service, and authorizes the NPS to conduct studies for potential additions to the park system and to the wild and scenic river system. Extends authorizations of some existing heritage areas and expands some battlefields and historic sites.

Subtitles C, E, F, and J – Private property protections

Ensures no private property can be condemned in any land conservation designations.

Subtitle D, Sections 3054 and 3055 – Private funding

Provides new means of increasing private funding for parks through donor recognition and the issuance of a commemorative coin to recognize the 100^th anniversary of the NPS in 2016.

Subtitle D, Section 3056 – Museums

Authorizes a privately funded commission to study the potential creation of a National Women’s History Museum

Subtitle E, Section 3065 – Multiple use lands

Releases 26,000 acres of current wilderness study area to multiple use.

Subtitle I, Section 3087 – Hydropower

Authorizes the secretary of interior to enter into leases with non-federal entities to produce hydroelectric power at 11 Bureau of Reclamation projects.

Subtitle J, Section 3096 – Payment in lieu of taxes

Dedicates $70 million in savings from this title to the payment in lieu of taxes program as a down payment for fiscal year 2015 funding.

Administration Position

The administration has not published a Statement of Administration Policy regarding the bill at this time.

Cost

CBO has estimated the direct spending effects of the bill, finding that the defense portion of this bill – all except Title XXX – saves $47 million in outlays in fiscal year 2015, and $452 million over the next five years. Title XXX costs $47 million in outlays next fiscal year and $82 million over the next five years.

Amendments

There is no indication any amendments will be in order during the consideration of this bill.