110 STAT. 408 PUBLIC LAW 104-106—FEB. 10, 1996 ings, are excess to the requirements for support of installations and facilities. Regulations. "(C) Any transfer under subparagraph (A) shall be made under regulations prescribed by the Secretary of Defense. "(2) Funds referred to in paragraph (1) may not be transferred to the Defense Modernization Account if— "(A) theXfunds are necessary for programs, projects, and activities thaty as determined by the Secretary, have a higher priority than tneL^purposes for which the funds would be available if transferred to that account; or "(B) the balance of funds in the account, after transfer of funds to the account, would exceed $1,000,000,000. "(3) Amounts credited to the Defense Modernization Account shall remain available for transfer until the end of the third fiscal year that follows the fiscal year in which the amounts are credited to the account. "(4) The period of availability of funds for expenditure provided for in sections 1551 and 1552 of title 31 may not be extended by transfer into the Defense Modernization Account. "(c) SCOPE OF USE OF FUNDS. — Funds transferred to the Defense Modernization Account from funds appropriated for a military department, Defense Agency, or other element of the Department of Defense shall be available in accordance with subsections (f) and (g) only for transfer to funds available for that military department. Defense Agency, or other element. "(d) AUTHORIZED USE OF FUNDS.— Funds available from the Defense Modernization Account pursuant to subsection (f) or (g) may be used for the following purposes: "(1) For increasing, subject to subsection (e), the quantity of items and services procured under a procurement program in order to achieve a more efficient production or delivery rate. "(2) For research, development, test, and evaluation and for procurement necessary for modernization of an existing system or of a system being procured under an ongoing procurement program. "(e) LIMITATIONS. — (1) Funds in the Defense Modernization Account may not be used to increase the quantity of an item or services procured under a particular procurement program to the extent that doing so would— "(A) result in procurement of a total quantity of items or services in excess of— "(i) a specific limitation provided by law on the quantity of the items or services that may be procured; or "(ii) the requirement for the items or services as approved by the Joint Requirements Oversight Council and reported to Congress by the Secretary of Defense; or "(B) result in an obligation or expenditure of funds in excess of a specific limitation provided by law on the amount that may be obligated or expended, respectively, for that procurement program. "(2) Funds in the Defense Modernization Account may not be used for a purpose or program for which Congress has not authorized appropriations. "(3) Funds may not be transferred from the Defense Modernization Account in any year for the purpose of—
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