New Year, Big Changes for U.S. Troops in Iraq

BAGHDAD Jan. 1, 2009— -- The New Year will bring change to Iraq. It is the year of the planned handover of control to Iraqi forces and the year of elections.

The coming year will bring restrictive new rules for American troops, and plenty of white-knuckle uncertainties as Shiites, Sunnis and Kurds, and factions within each of those groups, jockey for power.

Nevertheless, senior U.S. commanders have told ABC News there are promising signs almost six years after the U.S.-led invasion of the country. Despite the challenges, this is a positive move and a transition they welcome, U.S. officials say.

Coalition forces, now almost a hollow pseudonym for U.S. Forces, are around 144,000 and the burn rate is about $12 billion a month, depending on how and what you count.

The Status of Force Agreement (SOFA) goes into effect today, Jan. 1, and this will bring significant changes to how coalition forces operate in Iraq.

All combat missions must have the approval or "acknowledgement" of the Iraqi government. Warrants must be issued in advance of any raids. And American civilians and off-duty service members will now be subject to Iraqi law and can be arrested.

There are committees being set up to determine the rules and set up guidelines for soldiers. Senior leaders admit that there's some uncertainty and they will have to work through questions after the rules go into effect.

Soldiers on the streets of Baghdad may have to deal with tough legal questions. They often escort civilians, U.S. citizens who are helping rebuild Iraq. If Iraqi police, some of who may be militia, try to arrest the civilian then what do American soldiers do?

One of the options being considered is to not escort civilians off U.S. bases.

By the end of June all U.S. Forces will withdraw to "major bases."

The "International Zone" or Green Zone will officially be under Iraqi control on Jan. 1, but the Iraqi government has effective control now. Checkpoint procedures have changed. The Combined Press Center is moving next month, and sometime early next year the Republican Palace, which once housed the U.S. Embassy, will be turned over to the Iraqi Government. Several roads will be reopened and another "green zone" will collapse around the new U.S. Embassy.

Several major U.S. bases have been turned over to Iraqi soldiers including Forward Operating base Callahan in Sadr City, Combat Outpost Dragon in Yusafiyah (in the area south of Baghdad once so lethal it was known as "The Triangle of Death"), and soon Camp Fallujah in al Anbar.