It looks the obama team is saying this council was mandated by the National Defense Authorization Act, FY 2008 - which was VETOED by President Bush.
Yeah, it appears the National Defence Authorization Act for Fiscal Year 2008 never became a bill.
http://www.govtrack.us/congress/bill.xpd?bill=h110-1585
Vetoed by Bush: http://www.govtrack.us/congress/bill.xpd?bill=h110-1585