| This Statement of Administration Policy provides the
				  Administration's views on the Military Construction Appropriations Bill, FY
				  2001, as reported by the House Appropriations Committee. Your consideration of
				  the Administration's views would be appreciated.  Overall Funding Level and Unrequested Projects  The Administration commends the Committee for reporting a bill
				  that funds almost all of the construction projects requested in the President's
				  FY 2001 Budget. Especially noteworthy is the full funding of the requests for
				  Chemical Demilitarization and Base Realignment and Closure. However, the
				  Administration is concerned that the overall funding level of the Committee
				  bill would drain critical resources from other programs. The Administration
				  believes that the President's budget request correctly addresses our most
				  important FY 2001 military construction and housing needs and that additional
				  funding is not required.  The Administration questions the Committee's increase of $600
				  million to the funding level requested in the President's budget. Within this
				  overall net increase, the Committee has funded 130 projects costing about $836
				  million that were not requested in the President's budget. A majority of these
				  projects, 75 costing about $403 million, are not funded in DoD's Future Years
				  Defense Program (FYDP). The Department of Defense has a rigorous process for
				  selecting projects to be included in the FYDP and the budget. This process
				  takes into account safety, health, environmental, and military utility issues
				  to determine the highest priority projects. Substituting projects not in the
				  FYDP for those included in the FYDP undermines the careful prioritization
				  approved by the military services. The Administration urges the Committee to
				  delete funding added for unrequested projects, especially those not in the
				  FYDP.  Ballistic Missile Defense Organization Construction
				  Program  The Committee has reduced the construction request for the
				  Ballistic Missile Defense Organization (BMDO) by $20 million. The
				  Administration urges the Committee to fully fund the President's request for
				  this program, $103.5 million. These funds are essential to preserving the
				  President's options for deploying a national missile defense system. If any of
				  these funds are not used for deployment, we will work with Congress using
				  established procedures to ensure that these funds are used for other high
				  priority Department of Defense construction projects. The Department of Defense
				  is providing the Military Construction Appropriations Subcommittee additional
				  justification materials for the BMDO construction request.  NATO Security Investment Program  The Committee bill reduces the request for the NATO Security
				  Investment Program (NSIP) by $12.5 million. The Administration urges the
				  Committee to provide the $190 million requested in the President's budget to
				  support critical NATO operations fully. Moreover, the Administration objects to
				  section 124 of the Committee bill, which would prohibit the use of NSIP funds
				  or other funds provided in the bill for use in Partnership for Peace programs
				  in the New Independent States of the former Soviet Union. While we believe this
				  provision would have no practical effect in the short term, if this provision
				  became a permanent fixture in future Military Construction Appropriations Acts,
				  it could adversely affect future U.S. foreign policy initiatives as well as
				  future NATO-led operations. The Administration urges the Committee to delete
				  this restriction from the bill.  Energy Conservation Investment Program  The Committee has reduced the Energy Conservation Investment
				  Program (ECIP) request in its entirety ($33.6 million), citing large
				  unobligated balances in this program. This program has proven its worth by
				  financing capital improvements that yield significant energy savings to the
				  Department and help in the elimination of inefficient and high-maintenance
				  energy systems. Moreover, actual ECIP unobligated balances are much lower than
				  those portrayed by the Subcommittee and are likely to be exhausted by the end
				  of the fiscal year. This is due to the Congress' elimination of the FY 2000
				  ECIP budget request and proactive efforts by DoD to reduce unobligated balances
				  by aggressively pursuing the execution of ECIP projects. Thus, the proposed
				  reduction would effectively result in a pause of the ECIP program. The
				  Administration urges that funding be restored to this program to ensure its
				  continuity and benefit to DoD.  |