To indemnify States, political subdivisions of States, and certain other entities from liability relating to the release of hazardous substances at military installations that are closed pursuant to a base closure law.

Directs the Secretary of Defense to hold harmless, defend, and indemnify any State, political subdivision, or person or entity that acquires ownership or control of a military installation that is closed pursuant to a base closure law from all liability arising out of the release or threatened release of any hazardous substance, pollutant, or contaminant as a result of Department of Defense activities at such installation. Excepts from such indemnification those entities that cause or contribute to such release or threatened release.