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108th Congress                                            Rept. 108-460
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2
======================================================================
 
      FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS ACT OF 2004

                                _______
                                

                 June 14, 2004.--Ordered to be printed

                                _______
                                

    Mr. Barton of Texas, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3266]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3266) to authorize the Secretary of Homeland 
Security to make grants to first responders, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    13
Background and Need for Legislation..............................    13
Hearings.........................................................    13
Committee Consideration..........................................    13
Committee Votes..................................................    14
Committee Oversight Findings.....................................    14
Statement of General Performance Goals and Objectives............    14
New Budget Authority, Entitlement Authority, and Tax Expenditures    14
Committee Cost Estimate..........................................    14
Congressional Budget Office Estimate.............................    14
Federal Mandates Statement.......................................    17
Advisory Committee Statement.....................................    17
Constitutional Authority Statement...............................    17
Applicability to Legislative Branch..............................    17
Section-by-Section Analysis of the Legislation...................    17
Changes in Existing Law Made by the Bill, as Reported............    24
Dissenting Views.................................................    39

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Faster and Smarter 
Funding for First Responders Act of 2004''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Faster and Smarter Funding for First Responders.

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

        ``1801. Faster and smarter funding for first responders.
        ``1802. Essential capabilities for first responders.
        ``1803. Covered grant eligibility and criteria.
        ``1804. Use of funds and accountability requirements.
        ``1805. National standards for first responder equipment and 
                        training.
        ``1806. Definitions.
Sec. 4. Modification of Homeland Security Advisory System.
        ``Sec. 203. Homeland Security Advisory System.
Sec. 5. Coordination of industry efforts.
Sec. 6. Superseded provision.
Sec. 7. Sense of Congress regarding interoperable communications.
Sec. 8. Sense of Congress regarding Citizen Corps councils.
Sec. 9. Study regarding nationwide emergency notification system.
Sec. 10. Authorization of appropriations.

SEC. 2. FINDINGS.

  The Congress finds the following:
          (1) In order to achieve its objective of minimizing the 
        damage, and assisting in the recovery, from terrorist attacks, 
        the Department of Homeland Security must play a leading role in 
        assisting communities to reach the level of preparedness they 
        need to respond to a terrorist attack.
          (2) First responder funding is not reaching the men and women 
        of our Nation's first response teams quickly enough, and 
        sometimes not at all.
          (3) To reform the current bureaucratic process so that 
        homeland security dollars reach the first responders who need 
        it most, it is necessary to clarify and consolidate the 
        authority and procedures of the Department of Homeland Security 
        to support first responders.
          (4) Ensuring adequate resources for the new national mission 
        of homeland security requires a discrete and separate grant 
        making process for homeland security funds for first response 
        to terrorist acts, on the one hand, and for first responder 
        programs designed to meet pre-9/11 priorities, on the other.
          (5) Homeland security grants to first responders must be 
        based on the best intelligence concerning the capabilities and 
        intentions of our terrorist enemies, and that intelligence must 
        be used to target resources to the Nation's greatest risks, 
        vulnerabilities, and consequences.
          (6) The Nation's first response capabilities will be improved 
        by sharing resources, training, planning, personnel, and 
        equipment among neighboring jurisdictions through mutual aid 
        agreements and regional cooperation. Such regional cooperation 
        should be supported, where appropriate, through direct grants 
        from the Department of Homeland Security.
          (7) An essential prerequisite to achieving the Nation's 
        homeland security objectives for first responders is the 
        establishment of well-defined national goals for terrorism 
        preparedness. These goals should delineate the essential 
        capabilities that every jurisdiction in the United States 
        should possess or to which it should have access.
          (8) A national determination of essential capabilities is 
        needed to identify levels of State and local government 
        terrorism preparedness, to determine the nature and extent of 
        State and local first responder needs, to identify the human 
        and financial resources required to fulfill them, and to direct 
        funding to meet those needs and to measure preparedness levels 
        on a national scale.
          (9) To facilitate progress in attaining essential 
        capabilities for State and local first responders, the 
        Department of Homeland Security should seek to allocate 
        homeland security funding for first responders to meet 
        nationwide needs.
          (10) Private sector resources and citizen volunteers can 
        perform critical functions in assisting in preventing and 
        responding to terrorist attacks, and should be integrated into 
        State and local planning efforts to ensure that their 
        capabilities and roles are understood, so as to provide 
        enhanced State and local operational capability and surge 
        capacity.
          (11) Public-private partnerships, such as the partnerships 
        between the Business Executives for National Security and the 
        States of New Jersey and Georgia, can be useful to identify and 
        coordinate private sector support for State and local first 
        responders. Such models should be expanded to cover all States 
        and territories.
          (12) An important component of national standards is 
        measurability, so that it is possible to determine how prepared 
        a State or local government is now, and what additional steps 
        it needs to take, in order to respond to acts of terrorism.
          (13) The Department of Homeland Security should establish, 
        publish, and regularly update national voluntary consensus 
        standards for both equipment and training, in cooperation with 
        both public and private sector standard setting organizations, 
        to assist State and local governments in obtaining the 
        equipment and training to attain the essential capabilities for 
        first response to acts of terrorism, and to ensure that first 
        responder funds are spent wisely.

SEC. 3. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

  (a) In General.--The Homeland Security Act of 2002 (Public Law 107-
296; 6 U.S.C. 361 et seq.) is amended--
          (1) in section 1(b) in the table of contents by adding at the 
        end the following:

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

``1801. Faster and smarter funding for first responders.
``1802. Essential capabilities for first responders.
``1803. Covered grant eligibility and criteria.
``1804. Use of funds and accountability requirements.
``1805. National standards for first responder equipment and training.
``1806. Definitions.''; and

          (2) by adding at the end the following:

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

``SEC. 1801. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

  ``(a) Covered Grants.--This title applies to any grant provided by 
the Department to States or regions to improve the ability of first 
responders to prevent, prepare for, respond to, or mitigate threatened 
or actual terrorist attacks, especially those involving weapons of mass 
destruction, and including any grant under the following:
          ``(1) State homeland security grant program.--The State 
        Homeland Security Grant Program of the Department, or any 
        successor to such grant program.
          ``(2) Urban area security initiative.--The Urban Area 
        Security Initiative of the Department, or any successor to such 
        grant program.
  ``(b) Excluded Programs.--This title does not apply to or otherwise 
affect the following Federal grant programs or any grant under such a 
program:
          ``(1) Nondepartment programs.--Any Federal grant program that 
        is not administered by the Department.
          ``(2) Fire grant programs.--The fire grant programs 
        authorized by sections 33 and 34 of the Federal Fire Prevention 
        and Control Act of 1974 (15 U.S.C. 2229, 2229a).
          ``(3) Emergency management planning and assistance account 
        grants.--The Emergency Management Performance Grant program and 
        the Urban Search and Rescue Grants program authorized by title 
        VI of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5195 et seq.); the Departments of 
        Veterans Affairs and Housing and Urban Development, and 
        Independent Agencies Appropriations Act, 2000 (113 Stat. 1047 
        et seq.); and the Earthquake Hazards Reduction Act of 1977 (42 
        U.S.C. 7701 et seq.).

``SEC. 1802. ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

  ``(a) Establishment of Essential Capabilities.--
          ``(1) In general.--For purposes of covered grants, the 
        Secretary shall establish clearly defined essential 
        capabilities for State and local government preparedness for 
        terrorism, in consultation with--
                  ``(A) the Under Secretaries for Emergency 
                Preparedness and Response, Border and Transportation 
                Security, Information Analysis and Infrastructure 
                Protection, and Science and Technology, and the 
                Director of the Office for Domestic Preparedness;
                  ``(B) other appropriate Federal agencies;
                  ``(C) State and local first responder agencies and 
                officials; and
                  ``(D) groups responsible for setting standards 
                relevant to the first responder community.
          ``(2) Deadlines.--The Secretary shall--
                  ``(A) establish essential capabilities under 
                paragraph (1) not later than 120 days after the date of 
                the enactment of this section; and
                  ``(B) regularly update such essential capabilities as 
                necessary, but not less than every 3 years.
          ``(3) Provision of essential capabilities.--The Secretary 
        shall ensure that essential capabilities established under 
        paragraph (1) are provided promptly to the States and to the 
        Congress. The States shall make the essential capabilities 
        available as necessary and appropriate to local governments 
        within their jurisdictions.
  ``(b) Objectives.--The Secretary shall ensure that essential 
capabilities established under subsection (a)(1) meet the following 
objectives:
          ``(1) Specificity.--The determination of essential 
        capabilities specifically shall describe the training, 
        planning, personnel, and equipment that different types of 
        communities in the Nation should possess, or to which they 
        should have access, in order to meet the Department's goals for 
        terrorism preparedness based upon--
                  ``(A) the most current risk assessment available by 
                the Directorate for Information Analysis and 
                Infrastructure Protection of the threats of terrorism 
                against the United States; and
                  ``(B) the types of threats, vulnerabilities, 
                geography, size, and other factors that the Secretary 
                has determined to be applicable to each different type 
                of community.
          ``(2) Flexibility.--The establishment of essential 
        capabilities shall be sufficiently flexible to allow State and 
        local government officials to set priorities based on 
        particular needs, while reaching nationally determined 
        terrorism preparedness levels within a specified time period.
          ``(3) Measurability.--The establishment of essential 
        capabilities shall be designed to enable measurement of 
        progress towards specific terrorism preparedness goals.
  ``(c) Threats To Be Considered.--
          ``(1) In general.--In establishing essential capabilities 
        under subsection (a)(1), the Secretary specifically shall 
        consider the variables of threat, vulnerability, and 
        consequences with respect to the Nation's population (including 
        transient commuting and tourist populations) and critical 
        infrastructure. Such consideration shall be based upon the most 
        current risk assessment available by the Directorate for 
        Information Analysis and Infrastructure Protection of the 
        threats of terrorism against the United States.
          ``(2) Critical infrastructure sectors.--The Secretary 
        specifically shall consider threats of terrorism against the 
        following critical infrastructure sectors in all areas of the 
        Nation, urban and rural:
                  ``(A) Agriculture.
                  ``(B) Banking and finance.
                  ``(C) Chemical industries.
                  ``(D) The defense industrial base.
                  ``(E) Emergency services.
                  ``(F) Energy.
                  ``(G) Food.
                  ``(H) Government.
                  ``(I) Postal and shipping.
                  ``(J) Public health.
                  ``(K) Information and telecommunications networks.
                  ``(L) Transportation.
                  ``(M) Water.
        The order in which the critical infrastructure sectors are 
        listed in this paragraph shall not be construed as an order of 
        priority for consideration of the importance of such sectors.
          ``(3) Consideration of additional threats.--In establishing 
        essential capabilities under subsection (a)(1), the Secretary 
        shall take into account any other specific threat to a 
        population (including a transient commuting or tourist 
        population) or critical infrastructure sector that the 
        Secretary has determined to exist.

``SEC. 1803. COVERED GRANT ELIGIBILITY AND CRITERIA.

  ``(a) Grant Eligibility.--Any State or region shall be eligible to 
apply for a covered grant.
  ``(b) Grant Criteria.--In awarding covered grants, the Secretary 
shall assist States and local governments in achieving the essential 
capabilities for first responders established by the Secretary under 
section 1802.
  ``(c) State Homeland Security Plans.--
          ``(1) Submission of plans.--The Secretary shall require that 
        any State applying to the Secretary for a covered grant must 
        submit to the Secretary a 3-year State homeland security plan 
        that--
                  ``(A) demonstrates the extent to which the State has 
                achieved the essential capabilities that apply to the 
                State;
                  ``(B) demonstrates the additional needs of the State 
                necessary to achieve the essential capabilities that 
                apply to the State;
                  ``(C) includes a prioritization of such additional 
                needs based on threat, vulnerability, and consequence 
                assessment factors applicable to the State;
                  ``(D) describes how the State intends--
                          ``(i) to address such additional needs at the 
                        city, county, regional, State, and interstate 
                        level;
                          ``(ii) to use all Federal, State, and local 
                        resources available for the purpose of 
                        addressing such additional needs; and
                          ``(iii) to give particular emphasis to 
                        regional planning and cooperation, both within 
                        its jurisdictional borders and with neighboring 
                        States; and
                  ``(E) is developed in consultation with and subject 
                to appropriate comment by local governments within the 
                State.
          ``(2) Approval by secretary.--The Secretary may not award any 
        covered grant to a State unless the Secretary has approved the 
        applicable State homeland security plan.
  ``(d) Consistency With State Plans.--The Secretary shall ensure that 
each covered grant is used to supplement and support, in a consistent 
and coordinated manner, the applicable State homeland security plan or 
plans.
  ``(e) Application for Grant.--
          ``(1) In general.--Any State or region may apply for a 
        covered grant by submitting to the Secretary an application at 
        such time, in such manner, and containing such information as 
        is required under this subsection, or as the Secretary may 
        reasonably require.
          ``(2) Deadlines for applications and awards.--All 
        applications for covered grants must be submitted to the 
        Secretary no later than February 15 of the fiscal year for 
        which they are submitted. The Secretary shall award covered 
        grants pursuant to all approved applications for such fiscal 
        year as soon as practicable, but not later than July 31 of such 
        year.
          ``(3) Availability of funds.--All funds awarded by the 
        Secretary under covered grants in a fiscal year shall be 
        available for obligation through the end of the subsequent 
        fiscal year.
          ``(4) Minimum contents of application.--The Secretary shall 
        require that each applicant include in its application, at a 
        minimum--
                  ``(A) the purpose for which the applicant seeks 
                covered grant funds and the reasons why the applicant 
                needs the covered grant to meet the essential 
                capabilities for terrorism preparedness within the 
                State or region to which the application pertains;
                  ``(B) a description of how, by reference to the 
                applicable State homeland security plan or plans under 
                subsection (c), the allocation of grant funding 
                proposed in the application, including, where 
                applicable, the amount not passed through under section 
                1804(e)(1), would assist in fulfilling the essential 
                capabilities specified in such plan or plans;
                  ``(C) a statement of whether a mutual aid agreement 
                applies to the use of all or any portion of the covered 
                grant funds;
                  ``(D) if the applicant is a region--
                          ``(i) a precise geographical description of 
                        the region and a specification of all 
                        participating and nonparticipating local 
                        governments within the geographical area 
                        comprising that region;
                          ``(ii) a specification of what governmental 
                        entity within the region will administer the 
                        expenditure of funds under the covered grant; 
                        and
                          ``(iii) a designation of a specific 
                        individual to serve as regional liaison;
                  ``(E) a capital budget showing how the applicant 
                intends to allocate and expend the covered grant funds; 
                and
                  ``(F) a statement of how the applicant intends to 
                meet the matching requirement, if any, that applies 
                under section 1804(e)(2).
          ``(5) Regional applications.--
                  ``(A) Submission to state or states.--To ensure the 
                consistency required under subsection (d), an applicant 
                that is a region must simultaneously submit its 
                application to the Department and to each State of 
                which any part is included in the region.
                  ``(B) Opportunity for state comment.--Before awarding 
                any covered grant to a region, the Secretary shall 
                provide an opportunity to each State of which any part 
                is included in a region, during the 30-day period 
                beginning on the date on which the region submits an 
                application for a covered grant, to comment to the 
                Secretary on the consistency of the region's plan with 
                the State's homeland security plan.
                  ``(C) Final authority.--The Secretary shall have 
                final authority to determine the consistency of any 
                regional application with the applicable State homeland 
                security plan or plans and approve any regional 
                application. The Secretary shall notify each State of 
                which any part is included in a region of the approval 
                of a regional application for that region.
                  ``(D) Regional liaisons.--A regional liaison 
                designated under paragraph (4)(D)(iii) shall--
                          ``(i) coordinate with Federal, State, local, 
                        regional, and private officials within the 
                        region concerning terrorism preparedness;
                          ``(ii) develop a process for receiving input 
                        from Federal, State, local, regional, and 
                        private sector officials within the region to 
                        assist in the development of the regional 
                        application and to improve the region's access 
                        to covered grants; and
                          ``(iii) administer, in consultation with 
                        State, local, regional, and private officials 
                        within the region, covered grants awarded to 
                        the region.
          ``(6) Equipment standards.--If an applicant for a covered 
        grant proposes to upgrade or purchase, with assistance provided 
        under the grant, new equipment or systems that do not meet or 
        exceed any applicable national voluntary consensus standards 
        established by the Secretary under section 1805(a), the 
        applicant shall include in the application an explanation of 
        why such equipment or systems will serve the needs of the 
        applicant better than equipment or systems that meet or exceed 
        such standards.
  ``(f) First Responder Grants Board.--
          ``(1) Establishment of board.--The Secretary shall establish 
        a First Responder Grants Board, consisting of--
                  ``(A) the Secretary;
                  ``(B) the Under Secretary for Emergency Preparedness 
                and Response;
                  ``(C) the Under Secretary for Border and 
                Transportation Security;
                  ``(D) the Under Secretary for Information Analysis 
                and Infrastructure Protection;
                  ``(E) the Under Secretary for Science and Technology; 
                and
                  ``(F) the Director of the Office for Domestic 
                Preparedness.
          ``(2) Chairman.--
                  ``(A) In general.--The Secretary shall be the 
                Chairman of the Board.
                  ``(B) Exercise of authorities by deputy secretary.--
                The Deputy Secretary of Homeland Security may exercise 
                the authorities of the Chairman, if the Secretary so 
                directs.
          ``(3) Ranking of grant applications.--
                  ``(A) Prioritization of grants.--The Board shall 
                evaluate and annually prioritize all pending 
                applications for covered grants based upon the degree 
                to which they would lessen the threat to, vulnerability 
                of, and consequences for persons and critical 
                infrastructure.
                  ``(B) Achieving nationwide capability.--In evaluating 
                and prioritizing grant applications under subparagraph 
                (A), the Board shall--
                          ``(i) seek to achieve and enhance essential 
                        capabilities throughout the Nation; and
                          ``(ii) seek to allocate a portion of the 
                        funds available for covered grants each fiscal 
                        year for the purpose of making covered grants 
                        to each approved applicant that the Board 
                        determines has demonstrated a valid need in its 
                        application.
          ``(4) Functions of under secretaries.--The Under Secretaries 
        referred to in paragraph (1) shall seek to ensure that the 
        relevant expertise and input of the staff of their directorates 
        are available to and considered by the Board.

``SEC. 1804. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

  ``(a) In General.--A covered grant may be used for--
          ``(1) purchasing or upgrading equipment, including computer 
        software, to enhance terrorism preparedness and response;
          ``(2) exercises to strengthen terrorism preparedness and 
        response;
          ``(3) training for prevention (including detection) of, 
        preparedness for, or response to attacks involving weapons of 
        mass destruction, including training in the use of equipment 
        and computer software;
          ``(4) developing or updating response plans;
          ``(5) establishing or enhancing mechanisms for sharing 
        terrorism threat information pursuant to this Act;
          ``(6) systems architecture and engineering, program planning 
        and management, strategy formulation and strategic planning, 
        life-cycle systems design, product and technology evaluation, 
        and prototype development for terrorism preparedness and 
        response purposes;
          ``(7) additional personnel costs resulting from--
                  ``(A) elevations in the threat alert level of the 
                Homeland Security Advisory System;
                  ``(B) travel to and participation in exercises and 
                training in the use of equipment and on prevention 
                activities; and
                  ``(C) the temporary replacement of personnel during 
                any period of travel to and participation in exercises 
                and training in the use of equipment and on prevention 
                activities;
          ``(8) the costs of equipment (including software) required to 
        receive, transmit, handle, and store classified information;
          ``(9) enhancing facilities to serve as operations centers, or 
        hardening critical infrastructure against potential attack by 
        the addition of barriers, fences, gates, and other such 
        devices;
          ``(10) the costs of commercially available interoperable 
        communications equipment (which, where applicable, is based on 
        national, voluntary consensus standards) that the Secretary, in 
        consultation with the Chairman of the Federal Communications 
        Commission, deems best suited to facilitate interoperability, 
        coordination, and integration between and among emergency 
        communications systems, and that complies with prevailing grant 
        guidance of the Department for interoperable communications;
          ``(11) educational curricula development for first responders 
        to ensure that they are prepared for terrorist attacks;
          ``(12) training and exercises to assist public elementary and 
        secondary schools in developing and implementing programs to 
        instruct students regarding age-appropriate skills to prepare 
        for and respond to an act of terrorism; and
          ``(13) other appropriate activities as determined by the 
        Secretary.
``The costs of training described in this subsection include such costs 
for full-time, part-time, and volunteer first responders.
  ``(b) Prohibited Uses.--Funds provided as a covered grant may not be 
used--
          ``(1) to supplant State or local funds for, or otherwise 
        support, traditional missions of State and local law 
        enforcement, firefighters, emergency medical services, or 
        public health agencies, unless such support serves a dual 
        purpose and the funds are primarily intended to enhance 
        terrorism preparedness;
          ``(2) to construct buildings or other physical facilities;
          ``(3) to acquire land; or
          ``(4) for any State or local government cost sharing 
        contribution.
  ``(c) Assistance Requirement.--The Secretary may not request that 
equipment paid for, wholly or in part, with funds provided as a covered 
grant be made available for responding to emergencies in surrounding 
States, regions, and localities, unless the Secretary undertakes to pay 
the costs directly attributable to transporting and operating such 
equipment during such response.
  ``(d) Flexibility in Unspent Homeland Security Grant Funds.--Upon 
request by the recipient of a covered grant, the Secretary may 
authorize the grantee to transfer all or part of funds provided as the 
covered grant from uses specified in the grant agreement to other uses 
authorized under this section, if the Secretary determines that such 
transfer is in the interests of homeland security.
  ``(e) State and Regional Responsibilities.--
          ``(1) Pass-through.--The Secretary shall require a recipient 
        of a covered grant that is a State to obligate or otherwise 
        make available to local governments, first responders, and 
        other local groups, to the extent required under the State 
        homeland security plan or plans specified in the application 
        for the grant, not less than 80 percent of the grant funds, 
        resources purchased with the grant funds having a value equal 
        to at least 80 percent of the amount of the grant, or a 
        combination thereof, by not later than the end of the 45-day 
        period beginning on the date the grant recipient receives the 
        grant funds.
          ``(2) Cost sharing.--
                  ``(A) In general.--The Federal share of the costs of 
                an activity carried out with a covered grant to a State 
                or region awarded after the 2-year period beginning on 
                the date of the enactment of this section shall not 
                exceed 75 percent.
                  ``(B) Interim rule.--The Federal share of the costs 
                of an activity carried out with a covered grant awarded 
                before the end of the 2-year period beginning on the 
                date of the enactment of this section shall be 100 
                percent.
                  ``(C) In-kind matching.--Each recipient of a covered 
                grant may meet the matching requirement under 
                subparagraph (A) by making in-kind contributions of 
                goods or services that are directly linked with the 
                purpose for which the grant is made, including, but not 
                limited to, any necessary personnel overtime, 
                contractor services, administrative costs, equipment 
                fuel and maintenance, and rental space.
          ``(3) Certifications regarding distribution of grant funds to 
        local governments.--Any State that receives a covered grant 
        shall certify to the Secretary, by not later than 30 days after 
        the expiration of the period described in paragraph (1) with 
        respect to the grant, that the State has made available for 
        expenditure by local governments, first responders, and other 
        local groups the required amount of grant funds pursuant to 
        paragraph (1).
          ``(4) Report on homeland security spending.--Each recipient 
        of a covered grant shall submit a report to the Secretary not 
        later than 60 days after the end of each fiscal year. Each 
        recipient of a covered grant that is a region must 
        simultaneously submit its report to each State of which any 
        part is included in the region. Each report must include the 
        following:
                  ``(A) The amount, ultimate recipients, and dates of 
                receipt of all funds received under the grant during 
                the previous fiscal year.
                  ``(B) The amount and the dates of disbursements of 
                all such funds expended in compliance with paragraph 
                (1) or pursuant to mutual aid agreements or other 
                sharing arrangements that apply within the State or 
                region, as applicable, during the previous fiscal year.
                  ``(C) How the funds were utilized by each ultimate 
                recipient or beneficiary during the preceding fiscal 
                year.
                  ``(D) The extent to which essential capabilities 
                identified in the applicable State homeland security 
                plan or plans were achieved or enhanced as the result 
                of the expenditure of grant funds during the preceding 
                fiscal year.
                  ``(E) The extent to which essential capabilities 
                identified in the applicable State homeland security 
                plan or plans remain unmet.
          ``(5) Inclusion of restricted annexes.--A recipient of a 
        covered grant may submit to the Secretary an annex to the 
        report under paragraph (4) that is subject to appropriate 
        handling restrictions, if the recipient believes that 
        discussion in the report of unmet needs would reveal sensitive 
        but unclassified information.
          ``(6) Provision of reports.--The Secretary shall ensure that 
        each report under paragraph (4) is provided to the Under 
        Secretary for Emergency Preparedness and Response and the 
        Director of the Office for Domestic Preparedness.
  ``(f) Incentives to Efficient Administration of Homeland Security 
Grants.--
          ``(1) Penalties for delay in passing through local share.--If 
        a recipient of a covered grant that is a State fails to pass 
        through to local governments, first responders, and other local 
        groups funds or resources required by subsection (e)(1) within 
        45 days after receiving funds under the grant, the Secretary 
        may--
                  ``(A) reduce grant payments to the grant recipient 
                from the portion of grant funds that is not required to 
                be passed through under subsection (e)(1);
                  ``(B) terminate payment of funds under the grant to 
                the recipient, and transfer the appropriate portion of 
                those funds directly to local first responders that 
                were intended to receive funding under that grant; or
                  ``(C) impose additional restrictions or burdens on 
                the recipient's use of funds under the grant, which may 
                include--
                          ``(i) prohibiting use of such funds to pay 
                        the grant recipient's grant-related overtime or 
                        other expenses;
                          ``(ii) requiring the grant recipient to 
                        distribute to local government beneficiaries 
                        all or a portion of grant funds that are not 
                        required to be passed through under subsection 
                        (e)(1); or
                          ``(iii) for each day that the grant recipient 
                        fails to pass through funds or resources in 
                        accordance with subsection (e)(1), reducing 
                        grant payments to the grant recipient from the 
                        portion of grant funds that is not required to 
                        be passed through under subsection (e)(1), 
                        except that the total amount of such reduction 
                        may not exceed 20 percent of the total amount 
                        of the grant.
          ``(2) Extension of period.--The Governor of a State may 
        request in writing that the Secretary extend the 45-day period 
        under paragraph (1) for an additional 15-day period. The 
        Secretary may approve such a request, and may extend such 
        period for additional 15-day periods, if the Secretary 
        determines that the resulting delay in providing grant funding 
        to the local government entities that will receive funding 
        under the grant will not have a significant detrimental impact 
        on such entities' terrorism preparedness efforts.
          ``(3) Provision of non-local share to local government.--
                  ``(A) In general.--The Secretary may upon request by 
                a local government pay to the local government a 
                portion of the amount of a covered grant awarded to a 
                State in which the local government is located, if--
                          ``(i) the local government will use the 
                        amount paid to expedite planned enhancements to 
                        its terrorism preparedness as described in any 
                        applicable State homeland security plan or 
                        plans;
                          ``(ii) the State has failed to pass through 
                        funds or resources in accordance with 
                        subsection (e)(1); and
                          ``(iii) the local government complies with 
                        subparagraphs (B) and (C).
                  ``(B) Showing required.--To receive a payment under 
                this paragraph, a local government must demonstrate 
                that--
                          ``(i) it is identified explicitly as an 
                        ultimate recipient or intended beneficiary in 
                        the approved grant application;
                          ``(ii) it was intended by the grantee to 
                        receive a severable portion of the overall 
                        grant for a specific purpose that is identified 
                        in the grant application;
                          ``(iii) it petitioned the grantee for the 
                        funds or resources after expiration of the 
                        period within which the funds or resources were 
                        required to be passed through under subsection 
                        (e)(1); and
                          ``(iv) it did not receive the portion of the 
                        overall grant that was earmarked or designated 
                        for its use or benefit.
                  ``(C) Effect of payment.--Payment of grant funds to a 
                local government under this paragraph--
                          ``(i) shall not affect any payment to another 
                        local government under this paragraph; and
                          ``(ii) shall not prejudice consideration of a 
                        request for payment under this paragraph that 
                        is submitted by another local government.
                  ``(D) Deadline for action by secretary.--The 
                Secretary shall approve or disapprove each request for 
                payment under this paragraph by not later than 15 days 
                after the date the request is received by the 
                Department.
  ``(g) Reports to Congress.--The Secretary shall submit an annual 
report to the Congress by December 31 of each year--
          ``(1) describing in detail the amount of Federal funds 
        provided as covered grants that were directed to each State and 
        region in the preceding fiscal year;
          ``(2) containing information on the use of such grant funds 
        by grantees; and
          ``(3) describing, on a nationwide and State-by-State basis--
                  ``(A) the extent to which essential capabilities 
                identified in applicable State homeland security plan 
                or plans were created or enhanced as the result of the 
                expenditure of covered grant funds during the preceding 
                fiscal year;
                  ``(B) the extent to which essential capabilities 
                identified in applicable State homeland security plan 
                or plans remain unmet; and
                  ``(C) an estimate of the amount of Federal, State, 
                and local expenditures required to attain across the 
                United States the essential capabilities established 
                under section 1802(a).

``SEC. 1805. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
                    TRAINING.

  ``(a) Equipment Standards.--
          ``(1) In general.--The Secretary, in consultation with the 
        Under Secretary for Science and Technology and the Director of 
        the Office for Domestic Preparedness, shall, not later than 6 
        months after the date of enactment of this section, support the 
        development of, promulgate, and update as necessary national 
        voluntary consensus standards for the performance, use, and 
        validation of first responder equipment for purposes of section 
        1803(e)(6). Such standards--
                  ``(A) shall be, to the maximum extent practicable, 
                consistent with any existing voluntary consensus 
                standards;
                  ``(B) shall take into account, as appropriate, new 
                types of terrorism threats that may not have been 
                contemplated when such existing standards were 
                developed; and
                  ``(C) shall be focused on maximizing 
                interoperability, interchangeability, durability, 
                flexibility, efficiency, efficacy, portability, 
                sustainability, and safety.
          ``(2) Required categories.--In carrying out paragraph (1), 
        the Secretary shall specifically consider the following 
        categories of first responder equipment:
                  ``(A) Thermal imaging equipment.
                  ``(B) Radiation detection and analysis equipment.
                  ``(C) Biological detection and analysis equipment.
                  ``(D) Chemical detection and analysis equipment.
                  ``(E) Decontamination and sterilization equipment.
                  ``(F) Personal protective equipment, including 
                garments, boots, gloves, and hoods and other protective 
                clothing.
                  ``(G) Respiratory protection equipment.
                  ``(H) Interoperable communications, including 
                wireless and wireline voice, video, and data networks.
                  ``(I) Explosive mitigation devices and explosive 
                detection and analysis equipment.
                  ``(J) Containment vessels.
                  ``(K) Contaminant-resistant vehicles.
                  ``(L) Such other equipment for which the Secretary 
                determines that national voluntary consensus standards 
                would be appropriate.
  ``(b) Training Standards.--
          ``(1) In general.--The Secretary, in consultation with the 
        Under Secretaries for Emergency Preparedness and Response and 
        Science and Technology and the Director of the Office for 
        Domestic Preparedness, shall support the development of, 
        promulgate, and regularly update as necessary national 
        voluntary consensus standards for first responder training 
        carried out with amounts provided under covered grant programs, 
        that will enable State and local government first responders to 
        achieve optimal levels of terrorism preparedness as quickly as 
        practicable. Such standards shall give priority to providing 
        training to--
                  ``(A) enable first responders to prevent, prepare 
                for, respond to, and mitigate terrorist threats, 
                including threats from chemical, biological, nuclear, 
                and radiological weapons and explosive devices capable 
                of inflicting significant human casualties; and
                  ``(B) familiarize first responders with the proper 
                use of equipment, including software, developed 
                pursuant to the standards established under subsection 
                (a).
          ``(2) Required categories.--In carrying out paragraph (1), 
        the Secretary specifically shall include the following 
        categories of first responder activities:
                  ``(A) Regional planning.
                  ``(B) Joint exercises.
                  ``(C) Intelligence collection, analysis, and sharing.
                  ``(D) Emergency notification of affected populations.
                  ``(E) Detection of biological, nuclear, radiological, 
                and chemical weapons of mass destruction.
                  ``(F) Such other activities for which the Secretary 
                determines that national voluntary consensus training 
                standards would be appropriate.
  ``(c) Consultation With Standards Organizations.--In establishing 
national voluntary consensus standards for first responder equipment 
and training under this section, the Secretary shall consult with 
relevant public and private sector groups, including--
          ``(1) the National Institute of Standards and Technology;
          ``(2) the National Fire Protection Association;
          ``(3) the National Association of County and City Health 
        Officials;
          ``(4) the Association of State and Territorial Health 
        Officials;
          ``(5) the American National Standards Institute;
          ``(6) the National Institute of Justice;
          ``(7) the Inter-Agency Board for Equipment Standardization 
        and Interoperability;
          ``(8) the National Public Health Performance Standards 
        Program;
          ``(9) the National Institute for Occupational Safety and 
        Health;
          ``(10) ASTM International;
          ``(11) the International Safety Equipment Association; and
          ``(12) to the extent the Secretary considers appropriate, 
        other national voluntary consensus standards development 
        organizations, other interested Federal, State, and local 
        agencies, and other interested persons.
  ``(d) Coordination With Secretary of HHS.--In establishing any 
national voluntary consensus standards under this section for first 
responder equipment or training that involve or relate to public health 
professionals, including emergency medical professionals, the Secretary 
shall coordinate activities under this section with the Secretary of 
Health and Human Services.

``SEC. 1806. DEFINITIONS.

  ``In this title:
          ``(1) Board.--The term `Board' means the First Responder 
        Grants Board established under section 1803(f).
          ``(2) Covered grant.--The term `covered grant' means any 
        grant to which this title applies under section 1801.
          ``(3) Elevations in the threat alert level.--The term 
        `elevations in the threat alert level' means any designation 
        (including those that are less than national in scope) that 
        raises the homeland security threat level to either the highest 
        or second highest threat level under the Homeland Security 
        Advisory System referred to in section 201(d)(7).
          ``(4) Essential capabilities.--The term `essential 
        capabilities' means the levels, availability, and competence of 
        emergency personnel, planning, training, and equipment across a 
        variety of disciplines needed to effectively and efficiently 
        prevent, prepare for, and respond to acts of terrorism 
        consistent with established practices.
          ``(5) Region.--The term `region' means--
                  ``(A) any geographic area consisting of all or parts 
                of 2 or more contiguous States, counties, 
                municipalities, or other local governments that have a 
                combined population of at least 1,650,000 or have an 
                area of not less than 20,000 square miles, and that, 
                for purposes of an application for a covered grant, is 
                represented by 1 or more governments or governmental 
                agencies within such geographic area, and that is 
                established by law or by agreement of 2 or more such 
                governments or governmental agencies in a mutual aid 
                agreement; or
                  ``(B) any other combination of contiguous local 
                government units (including such a combination 
                established by law or agreement of two or more 
                governments or governmental agencies in a mutual aid 
                agreement) that is formally certified by the Secretary 
                as a region for purposes of this Act with the consent 
                of--
                          ``(i) the State or States in which they are 
                        located, including a multi-State entity 
                        established by a compact between two or more 
                        States; and
                          ``(ii) the incorporated municipalities, 
                        counties, and parishes which they encompass.
          ``(6) First responder.--The term `first responder' shall have 
        the same meaning as the term `emergency response provider'.''.
  (b) Definition of Emergency Response Providers.--Paragraph (6) of 
section 2 of the Homeland Security Act of 2002 (Public Law 107-296; 6 
U.S.C. 101(6)) is amended by striking ``includes'' and all that follows 
and inserting ``includes Federal, State, and local governmental and 
nongovernmental emergency public safety, law enforcement, fire, 
emergency response, emergency medical (including hospital emergency 
facilities), and related personnel, organizations, agencies, and 
authorities.''.
  (c) Temporary Limitation on Application.--The following provisions of 
title XVIII of the Homeland Security Act of 2002, as amended by 
subsection (a), shall not apply during the 2-year period beginning on 
the date of the enactment of this Act:
          (1) Subsections (b), (c), (e) (except paragraph (5) of such 
        subsection), and (f)(3)(B) of section 1803.
          (2) Subparagraphs (D) and (E) of section 1804(e)(4).
          (3) Section 1804(g)(3).

SEC. 4. MODIFICATION OF HOMELAND SECURITY ADVISORY SYSTEM.

  (a) In General.--Subtitle A of title II of the Homeland Security Act 
of 2002 (Public Law 107-296; 6 U.S.C. 121 et seq.) is amended by adding 
at the end the following:

``SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

  ``(a) In General.--The Secretary shall revise the Homeland Security 
Advisory System referred to in section 201(d)(7) to require that any 
designation of a threat level or other warning shall be accompanied by 
a designation of the geographic regions or economic sectors to which 
the designation applies.
  ``(b) Reports.--The Secretary shall report to the Congress annually 
by not later than December 31 each year regarding the geographic 
region-specific warnings and economic sector-specific warnings issued 
during the preceding fiscal year under the Homeland Security Advisory 
System referred to in section 201(d)(7), and the bases for such 
warnings. The report shall be submitted in unclassified form and may, 
as necessary, include a classified annex.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by 
inserting after the item relating to section 202 the following:

``203. Homeland Security Advisory System.''.

SEC. 5. COORDINATION OF INDUSTRY EFFORTS.

  Section 102(f) of the Homeland Security Act of 2002 (Public Law 107-
296; 6 U.S.C. 112(f)) is amended by striking ``and'' after the 
semicolon at the end of paragraph (6), by striking the period at the 
end of paragraph (7) and inserting ``; and'', and by adding at the end 
the following:
          ``(8) coordinating industry efforts, with respect to 
        functions of the Department of Homeland Security, to identify 
        private sector resources and capabilities that could be 
        effective in supplementing Federal, State, and local government 
        agency efforts to prevent or respond to a terrorist attack.''.

SEC. 6. SUPERSEDED PROVISION.

  This Act supersedes section 1014 of Public Law 107-56.

SEC. 7. SENSE OF CONGRESS REGARDING INTEROPERABLE COMMUNICATIONS.

  (a) Finding.--The Congress finds that--
          (1) many first responders working in the same jurisdiction or 
        in different jurisdictions cannot effectively and efficiently 
        communicate with one another; and
          (2) their inability to do so threatens the public's safety 
        and may result in unnecessary loss of lives and property.
  (b) Sense of Congress.--It is the sense of the Congress that 
interoperable emergency communications systems and radios should 
continue to be deployed as soon as practicable for use by the first 
responder community, and that upgraded and new digital communications 
systems and new digital radios must meet prevailing national, voluntary 
consensus standards for interoperability.

SEC. 8. SENSE OF CONGRESS REGARDING CITIZEN CORPS COUNCILS.

  (a) Finding.--The Congress finds that Citizen Corps councils help to 
enhance local citizen participation in terrorism preparedness by 
coordinating multiple Citizen Corps programs, developing community 
action plans, assessing possible threats, and identifying local 
resources.
  (b) Sense of Congress.--It is the sense of the Congress that 
individual Citizen Corps councils should seek to enhance the 
preparedness and response capabilities of all organizations 
participating in the councils, including by providing funding to as 
many of their participating organizations as practicable to promote 
local terrorism preparedness programs.

SEC. 9. STUDY REGARDING NATIONWIDE EMERGENCY NOTIFICATION SYSTEM.

  (a) Study.--The Secretary of Homeland Security, in consultation with 
the heads of other appropriate Federal agencies and representatives of 
providers and participants in the telecommunications industry, shall 
conduct a study to determine whether it is cost-effective, efficient, 
or feasible to establish and implement an emergency telephonic alert 
notification system that will--
          (1) alert persons in the United States of imminent or current 
        hazardous events caused by acts of terrorism; and
          (2) provide information to individuals regarding appropriate 
        measures that may be undertaken to alleviate or minimize 
        threats to their safety and welfare posed by such events.
  (b) Technologies To Consider.--In conducting the study, the Secretary 
shall consider the use of the telephone, wireless communications, and 
other existing communications networks to provide such notification.
  (c) Report.--Not later than 9 months after the date of the enactment 
of this Act, the Secretary shall submit to the Congress a report 
regarding the conclusions of the study.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--For the purpose of making covered grants (as that 
term is defined in section 1806 of the Homeland Security Act of 2002, 
as amended by this Act), there is authorized to be appropriated to the 
Secretary of Homeland Security $3,400,000,000 for fiscal year 2006.
  (b) Metropolitan Medical Response System.--In addition to the purpose 
specified in subsection (a), the authorization of appropriations in 
subsection (a) may be used for the Metropolitan Medical Response 
System.

                          Purpose and Summary

    H.R. 3266, the Faster and Smarter Funding for First 
Responders Act of 2004, reforms the manner in which the 
Department of Homeland Security (DHS) issues grants to enhance 
the ability of states, local governments, and first responders 
to prevent, prepare for, mitigate, and respond to acts of 
terrorism. The bill does not create a new terrorism 
preparedness grant program. Rather, it directs the Secretary of 
DHS to establish `essential capabilities' that different types 
of communities should obtain in order to prepare for potential 
terrorist acts, improves the grant process by streamlining and 
speeding the delivery of Federal grant assistance for first 
responders to build these essential capabilities in a 
measurable fashion, and establishes a consolidated structure 
for evaluating and prioritizing grant applications based on the 
degree to which they would lessen the threat to, vulnerability 
of, and consequences for persons and critical infrastructure 
sectors in the event of a terrorist attack.

                  Background and Need for Legislation

    Since 2001, and including the President's budget request 
for fiscal year 2005, roughly $11 billion has been, or will be, 
appropriated to DHS for distribution to state and local 
governments for terrorism preparedness. Of this amount, almost 
$9 billion either remains in, or has yet to be put into, the 
terrorism preparedness grant program pipeline, and has not been 
expended yet at the state or local level. Setting out 
``essential capabilities'', measurable objectives, and 
standards will further assist in formulating procurement and 
resource allocation priorities, and provide for more timely and 
better uses of funds. DHS terrorism preparedness grant funds 
currently are allocated to each state based on formulas that 
were established immediately after September 11, 2001. 
Allocations to states and qualifying regions based on a 
comprehensive risk analysis will ensure a strong relationship 
between the risks first responders may address and the specific 
funding under these programs.

                                Hearings

    The Subcommittee on Health held a hearing on H.R. 3266, the 
Faster and Smarter Funding for First Responders Act of 2004, on 
Tuesday, May 11, 2004. The Subcommittee received testimony 
from: the Honorable Chris Cox, Chairman, Select Committee on 
Homeland Security, U.S. House of Representatives; Mr. Andrew T. 
Mitchell, Deputy Director, Office of Domestic Preparedness, 
U.S. Department of Homeland Security; and, Mr. William Raub, 
Acting Assistant Secretary for Planning and Evaluation, U.S. 
Department of Health and Human Services.

                        Committee Consideration

    On Thursday, June 3, 2004, the Full Committee met in open 
markup session and ordered H.R. 3266 reported to the House, as 
amended, by voice vote, a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 3266 reported. A motion by Mr. Barton to order H.R. 3266 
reported to the House, as amended was agreed to by a voice 
vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

         Statement of General Performance Goals and Objectives

    H.R. 3266 provides for essential capabilities for grant 
applicants, voluntary standards for equipment and training 
under such grants, and a more flexible set of criteria for 
prioritizing grant funding for Department of Homeland Security 
grant programs relating to first responders.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
3266, Faster and Smarter Funding for First Responders Act of 
2003, would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 8, 2004.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3266, the Faster 
and Smarter Funding for First Responders Act of 2004.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lanette J. 
Walker.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 3266--Faster and Smarter Funding for First Responders Act of 2004

    Summary: H.R. 3266 would authorize the Secretary of the 
Department of Homeland Security (DHS) to change the criteria 
used to distribute funding for two existing first responder 
grant programs established after September 11, 2001--the State 
Homeland Security and the Urban Area Security Initiative grant 
programs. In addition, this bill would authorize the 
appropriation of $3.4 billion in 2006 for first responder 
grants. Assuming appropriation of the authorized amount, CBO 
estimates that implementing H.R. 3266 would cost $3 billion 
over the 2005-2009 period and an additional $400 million after 
2009. Enacting H.R. 3266 would not affect direct spending or 
revenues.
    H.R. 3266 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Assuming the authorized amount is fully appropriated, the bill 
would increase funding for existing aid programs while changing 
conditions for receiving those funds; and costs incurred by 
state, local, or tribal governments would be involuntary.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3266 is shown in the following table. 
The costs of this legislation fall within budget function 450 
(community and regional development).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                               -------------------------------------------------
                                                                  2005      2006      2007      2008      2009
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPPRIATION
 Authorization Level \1\.......................................         *     3,400         0         0         0
Estimated Outlays.............................................         *       510     1,020       918       578
----------------------------------------------------------------------------------------------------------------
\1\ The specified authorization in H.R. 3266 would replace an existing (unspecified) authorization of the
  appropriation of ``such sums as necessary'' through 2007.
 Note.--*= Costs of less than $500,000 for administrative changes that would be made by the bill.

    Basis of estimate: Almost $10 billion has been appropriated 
for first responder grants since fiscal year 2003, including 
about $3 billion in fiscal year 2004. The Office of Domestic 
Preparedness (within DHS) derives its primary authority to 
distribute grants to states and localities to prepare and 
respond to terrorism from the USA Patriot Act (Public Law 107-
56). That law authorized the appropriation of such sums as 
necessary for first responder grants through fiscal year 2007. 
H.R. 3266 would replace this authorization of appropriations 
with a one-year authorization of appropriations of $3.4 billion 
in fiscal year 2006.
    For this estimate, CBO assumes that H.R. 3266 will be 
enacted before the end of fiscal year 2004 and that the 
authorized amounts will be appropriated in 2006. For this 
estimate, CBO assumes that states would need to update their 
State Homeland Security Plans for approval by DHS to reflect 
new grant requirements. After that update, we expect that 
spending would follow historical spending patterns for existing 
state and local grant programs for emergency management 
activities. CBO estimates that implementing this bill would 
cost about $3 billion over the 2006-2009 period and nearly $400 
million after 2009.
    Under the State Homeland Security grant program, DHS 
distributes three-quarters of one percent of the amount 
appropriated for the program to each state. The remaining funds 
are distributed to states based on population. The Urban Area 
Security Initiative grant program provides funding to high-
threat areas of the country. Under H.R. 3266, DHS would 
consolidate these two existing programs and distribute all of 
the funding based on threats, vulnerabilities, and risk 
assessments for each state and locality. H.R. 3266 also would 
require states to disburse grant money to local governments 
within 45 days of receiving funds from the federal government, 
or states would face penalties as well as pay 25 percent of the 
total cost of the grant activities.
    Intergovernmental and private-sector impact: H.R. 3266 
contains no intergovernmental or private-sector mandates as 
defined in UMRA but would make several changes to existing 
grant programs. First, it would consolidate at least two 
current programs--the State Homeland Security Grant and the 
Urban Area Security Initiative--and authorize the appropriation 
of $3.4 billion in fiscal year 2006. Second, it would change 
how those funds are allocated. While some states would receive 
less funding than in previous years and others would receive 
more, assuming authorized funds are fully appropriated, total 
funding would increase. This bill also would expand eligible 
activities to include covering the costs of additional 
personnel during heightened threat alerts and training 
activities.
    This bill also would authorize DHS to transfer funds 
directly to the local recipients, reduce the portion of the 
grant retained by the state, or impose additional restrictions 
if states fail to provide funds to local first responders in a 
timely manner. According to the grant requirements, states 
would be required to certify that they have provided 80 percent 
of the funds within 45 days of receipt. Funds that states may 
lose would be allocated to local jurisdictions. Any costs 
incurred by state, local, or tribal governments as a result of 
these changes to the grant programs would be voluntary.
    Other provisions of the bill would require DHS to create, 
with input from local first responders and trade 
representatives, voluntary standards for equipment and training 
for first responders. The bill would also require DHS to revise 
the Homeland Security Advisory System to include geographic and 
economic sector designations.
    Previous CBO estimates: On July 16, 2003, CBO transmitted a 
cost estimate for S. 1245, the Homeland Security Grant 
Enhancement Act of 2003, as ordered reported by the Senate 
Committee on Governmental Affairs on June 17, 2003. On 
September 9, 2003, CBO transmitted a cost estimate for S. 930, 
the Emergency Preparedness and Response Act of 2003, as ordered 
reported by the Senate Committee on Environment and Public 
Works on July 30, 2003. Both bills would authorize the 
appropriation of different grant amounts for first responders. 
S. 930 also would authorize grants for urban search and rescue 
task forces.
    On March 30, 2004, CBO transmitted a cost estimate for H.R. 
3266 as ordered reported by the House Select Committee on 
Homeland Security on March 18, 2004. The language approved by 
the fact that committee and the House Committee on Energy and 
Commerce are similar the cost estimates are identical.
    Estimate prepared by: Federal Costs: Lanette J. Walker; 
Impact on State, Local, and Tribal Governments: Melissa 
Merrell; and Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title and table of contents

    Section 1 cites the measure as ``Faster and Smarter Funding 
for First Responders Act of 2004.''

Section 2. Findings

    Section 2 contains the findings for the legislation.

Section 3. Faster and smarter funding for first responders

    Section 3 amends the Homeland Security Act of 2002 by 
adding at the end a new Title XVIII, including sections 1801-
1807 as follows:
            Section 1801--Faster and smarter funding for first 
                    responders
    Section 1801(a) states that the provisions of new Title 
XVIII apply only to those grants that the Department of 
Homeland Security (DHS) provides to states or regions to 
improve the ability of first responders to prevent, prepare 
for, respond to, or mitigate threatened or actual terrorist 
attacks, especially those involving weapons of mass 
destruction. Specifically, such terrorism preparedness grants 
include, but are not limited to, the DHS State Homeland 
Security Grant Program and the Urban Area Security Initiative.
    Section 1801(b) expressly excludes from coverage of this 
title all non-DHS Federal grants, as well as the DHS 
firefighter assistance grants and the emergency management 
planning and assistance grants.

Section 1802--essential capabilities for first responders.

    Section 1802 requires the Secretary of the Department of 
Homeland Security (Secretary) to establish specific, flexible, 
and measurable ``essential capabilities'' for state and local 
government terrorism preparedness for purposes of covered 
grants within 120 days of enactment. Essential capabilities are 
``the levels, availability, and competence of emergency 
personnel, planning, training, and equipment across a variety 
of disciplines needed to effectively and efficiently prevent, 
prepare for, and respond to acts of terrorism consistent with 
established practices''. For example, the presence of a large 
chemical plant in a densely populated community may require 
specialized response planning and equipment and an appropriate 
level of training for first responders to respond effectively 
to a terrorist incident at the chemical plant and to minimize 
the harm such an incident could cause. The Committee intends 
that ``weapons'' and ``threats'' may include sabotage or 
explosive attack on a chemical facility intended to produce a 
chemical release.
    The establishment of essential capabilities for terrorism 
preparedness will assist communities in making the 
determination of what planning, training, equipment, and other 
capabilities they require to respond effectively to the 
specific risks they face.
    In order to address the wide variety of threats and 
vulnerabilities faced by communities throughout the nation, the 
Secretary is required to establish essential capabilities in a 
manner that will allow different types of communities to 
determine what they require, and how the attainment of these 
capabilities should be prioritized. The Committee expects that 
communities in all states need a baseline of capabilities. All 
states may also need to participate in responding to threats 
that arise in other states. Accordingly, all states will need 
to maintain certain essential capabilities--whether more urban 
than rural, whether they contain specific terrorist targets, 
and regardless of populations.
    Section 1802(a) requires the Secretary to consult with 
other appropriate Federal agencies, state and local first 
responder agencies and officials, and groups responsible for 
setting standards relevant to the first responder community. 
The Committee also expects the Secretary to provide outreach 
and obtain input from a wide variety of organizations 
representing first responders. The Committee notes that the 
bill reported out of the Select Committee on Homeland Security 
created a specific task force for this purpose. However, in 
testimony before the Subcommittee on Health, the Department of 
Homeland Security stated that this task force would duplicate 
efforts and responsibilities already existing under the 
Homeland Security Act's section 871 advisory committee. Under 
section 871, Secretary Ridge created the Homeland Security 
Advisory Council in 2003 as a means of providing the Department 
with acontinuing source of advice and comment. The Department 
believes that it would be more effective and efficient to incorporate 
additional roles and responsibilities into the Department's current 
system of task forces and advisory councils, rather than to create new 
advisory mechanisms.
    Similarly, the Department of Health and Human Services 
outlined numerous unnecessary duplications that would arise 
from the proposed task force and a current interagency Working 
Group on Bioterrorism and Other Public Health Emergencies (the 
``Working Group''), authorized by the Public Health Security 
and Bioterrorism Preparedness and Response Act. Among other 
items, the Working Group provides an ``assessment of the 
priorities for and enhancement of the preparedness of public 
health institutions, providers of medical care, and other 
emergency service personnel (including firefighters) to detect, 
diagnose, and respond (including mental health response) to a 
biological threat or attack'' (see section 319F(a)(1)(F), as 
added by section 108 of the Public Health Security and 
Bioterrorism Preparedness and Response Act). The Working Group, 
led by the Department of Health and Human Services, is also 
tasked with the ``development and enhancement of the quality of 
joint planning and training programs that address the public 
health and medical consequences of a biological threat or 
attack on the civilian population between (i) local 
firefighters, ambulance personnel, police and public security 
officers, or other emergency response personnel (including 
private response contractors); and (ii) hospitals, primary care 
facilities, and public health agencies.''
    The Committee expects the current Working Group to be the 
primary group to review these issues. The Committee neither 
intends to provide for duplication of these missions, nor to 
diminish the responsibilities of the Department of Health and 
Human Services in these areas. The Committee expects the 
Secretary of the Department of Homeland Security to consult 
with the current Working Group.
    Section 1802(c)(2) identifies critical infrastructure 
sectors the Secretary shall consider in establishing essential 
capabilities for first responders. The report of the Select 
Committee on Homeland Security noted that the purpose of this 
section is to ensure that the Secretary considers the different 
types of threats and vulnerabilities relating to all of the 
nation's critical infrastructure when determining the proper 
allocation of terrorism preparedness grants, and to avoid 
overlooking critical infrastructure components. In this regard, 
the Committee notes that the critical infrastructure sectors of 
government and defense industrial base include both military 
and nonmilitary defense infrastructure including research and 
development capabilities.
            Section 1803--Grant eligibility and criteria
    Section 1803 provides that both states and regions may 
apply for covered grants. The Committee notes that, although 
states will continue to play a central role in homeland 
security planning and coordinating grant fund distribution to 
first responders at the local level, H.R. 3266 ensures that the 
unique preparedness needs of regions can be addressed by the 
Secretary through direct grants. For purposes of the grant 
application process, only certain geographic areas will qualify 
as regions, as defined in H.R. 3266. The Committee expects that 
most regions will consist of either multi-state or metropolitan 
jurisdictions.
    H.R. 3266 recognizes the central role of states in the 
nation's terrorism preparedness efforts. Accordingly, to be 
eligible for a covered grant, a region must file an application 
that is consistent with the applicable state homeland security 
plan of each state of which any part is included in the region. 
Further, a regional applicant must submit simultaneously its 
application to both DHS and to each such state. The Secretary, 
prior to awarding a grant to a region, is required to give any 
relevant state thirty (30) days to comment on the application's 
consistency, or lack thereof, with its homeland security plan.
    To assist the Secretary in making awards of covered grants, 
this section also creates the First Responder Grant Board.
    Section 1803 also establishes that any state or region 
shall be eligible to apply for a covered grant. This section 
also requires that state Homeland Security Plans be developed 
in consultation with local governments. The Department 
testified before the Committee that the Homeland Security 
Funding Task Force created by the Secretary includes a 
representative of tribal governments as well as state, county, 
and municipal officials. The Committee also notes that critical 
infrastructures can and do lie on or adjacent to tribal lands, 
and that tribal governments may have first responder 
capabilities as understood in the bill that are routinely 
coordinated with other state and local capabilities. In that 
regard, the Committee notes the inclusion of tribal governments 
in the definition of ``local governments'' within the Homeland 
Security Act of 2002 applies to this bill. The Committee 
encourages states to include Federally recognized tribal 
governments in developing State Homeland Security Plans and 
further encourages tribal governments to participate as 
appropriate in State or regional applications for covered 
grants.
    Section 1803(f)(3)(B) states that the grant programs must 
seek to achieve and enhance essential capabilities throughout 
the nation and that a portion of funds must be available to 
each approved applicant that the Board determines has 
demonstrated a valid need. Although there are no fixed 
percentages, the Committee expects the Secretary to provide a 
significant baseline of funding for each state. Many threats, 
such as those involving response to communicable diseases, will 
know no boundary. Moreover, attacks in one state may require 
the assistance of first responders from other states. It is 
therefore important that there is a baseline capability for 
first responders in all states.
            Section 1804--Use of funds and accountability requirements
    Section 1804 sets out definitive uses of grant funds, and 
establishes specific timelines for the expenditure of grant 
funds, along with reporting requirements for DHS and both state 
and regional grant recipients.
    This section provides that a covered grant may be used for 
appropriate activities as determined by the Secretary of DHS, 
including specifically: (1) purchasing and upgrading of 
equipment (including computer software); (2) exercises and 
training; (3) developing or updating response plans; (4) 
establishing or enhancing mechanisms for information sharing; 
(5) systems architecture and engineering, programplanning and 
management, and product evaluation; (6) personnel costs directly 
attributable to elevations in the threat alert level of the Homeland 
Security Advisory System; (7) classified information receipt and 
storage costs; (8) upgrading operation centers and hardening critical 
infrastructures; (9) costs associated with the purchase of commercially 
available equipment that complies with national voluntary consensus 
standards and that facilitates interoperability of emergency 
communications; (10) developing educational curricula for first 
responders to ensure their preparedness for terrorist attacks; and, 
(11) training and exercises to assist public elementary and secondary 
schools to develop terrorism preparedness programs.
    A covered grant, however, may not be used to: (1) supplant 
state or local funds for, or otherwise support, traditional 
missions of state and local law enforcement, firefighters, 
emergency medical services, or public health agencies (unless 
such support serves a dual purpose and the funds are primarily 
intended to enhance terrorism preparedness); (2) construct 
buildings or other physical facilities or acquire land; or, (3) 
to alleviate any state or local government cost sharing 
contribution.
    Subsection (a) states that the costs of training include 
such costs for full-time, part-time, and voluntary first 
responders. The Committee expects the Secretary to ensure that 
states may include part-time and voluntary first responders in 
this program and that steps be taken to ensure there are no 
unnecessary Federal regulatory or other impediments to the 
participation of full-time, part-time, and voluntary first 
responders. The term ``part-time'' also includes part-paid 
employees.
            Section 1805--National standards for first responder 
                    equipment and training
    Section 1805 adds to the Homeland Security Act of 2002 
provisions requiring the Secretary to develop, promulgate, and 
update as necessary national voluntary consensus standards for 
first responder equipment and training. With regard to 
equipment, the standards for the performance, use, and 
validation should be focused on maximizing interoperability, 
interchangeability, durability, flexibility, efficiency, 
portability, and safety. Applicants who seek to purchase or 
upgrade equipment with covered grants must either buy items 
that meet these standards or explain why non-standard items 
will be superior.
    Section 1805(a)(10) clarifies the types of communications 
equipment for which funds will be available under this Act. The 
equipment must support interoperability among first responders' 
emergency communications systems. Such equipment must be based 
on national, voluntary, consensus standards, which will further 
facilitate interoperability by ensuring that the communications 
systems share a common technological language.
    The Committee intends that containment vessels include 
mortality containment vessels capable of dealing with 
casualties resulting from biological, radiological, or chemical 
contamination. The Committee also notes specifically that 
reliable electrical generating equipment will be important for 
first responders.
    The Committee stresses the importance of developing 
national voluntary consensus standards that are dynamic, and 
that will encourage a wide variety of creative, private sector-
generated solutions to homeland security challenges. 
Appropriate national voluntary consensus standards will help 
private sector entities identify potential markets and their 
characteristics. To the extent that they do, they can serve as 
an indirect stimulus to economic growth, while ensuring that 
first responders get the equipment and training most likely to 
help them prevent, prepare for, respond to, and mitigate the 
effects of a terrorist attack.
    The Committee intends that section 1805(b)'s training 
standards may include training on how to respond to mass 
casualty attacks by biological, chemical, or radiological 
contamination.
    In addition to the organizations identified in section 
1805(c), the Committee is aware of numerous private and non-
profit organizations working with state and local governments 
to implement first responder equipment and training standards. 
The DHS Secretary should consult with as many of these 
organizations as practicable in the development of the national 
voluntary consensus standards.
    Paragraph 1805(d) states that in establishing any national 
voluntary consensus standards under this section for first 
responder equipment or training that involve or relate to 
public health professionals, including emergency medical 
professionals, the Secretary shall coordinate activities under 
this section with the Secretary of Health and Human Services. 
This requires concurrence before publication of any such 
standards. Moreover, the Department of Health and Human 
Services has the primary expertise concerning such equipment 
standards and training. The Committee wants to avoid 
inconsistent standards between the Departments or among 
different grant programs.
            Section 1806--Definitions
    Section 1806 provides a number of definitions. H.R. 3266 
essentially adopts the definition of ``emergency response 
providers'' in section 2(6) of the Homeland Security Act as the 
definition of ``first responder.'' The Committee notes that the 
definition of ``emergency response providers'' in the Homeland 
Security Act includes a reference to ``related personnel, 
agencies, and authorities.'' That definition is not, therefore, 
limited to Federal, state, and local governmental entities. The 
Committee believes and, for purposes of this bill intends, that 
the ``related personnel'' language in the definition of 
``emergency response providers,'' incorporated into the 
definition of ``first responder'' in the bill, includes, among 
other persons and entities, non-governmental organizations with 
assigned responsibilities under domestic preparedness and 
response incident management plans. Nonetheless, the Committee 
has amended this definition to make clear the governmental and 
non-governmental organizations and personnel are included in 
the definition of ``emergency response providers.''

Section 4. Modification of Homeland Security Advisory System

    Section 4 directs the Secretary to revise the Homeland 
Security Advisory System (HSAS) to require that the designation 
of a threat level or any other warning be issued to specific 
geographical regions and economic sectors. The Secretary must 
report annually to the Congress regarding the geographic 
region-specific or economic sector-specific warnings issued 
during the preceding fiscal year.
    The Committee observes that, aside from revising the HSAS, 
attention should be given to emerging technologies that will 
prove critical to enhancing our notification and alert systems 
to both the general public and first responders. New digital 
broadcasting technology, for example, has the potential to 
provide a secure, time-sensitive communication system for 
Federal, state and local governments. Specifically, digital 
broadcast signals may be used to transmit encrypted data to 
government offices, law enforcement agencies, hospitals, 
schools, businesses, and private residences. Since such signals 
are transmitted wirelessly and in unique bands of spectrum, 
downed telephone lines, clogged cellular services, and even 
Internet hackers pose less of a risk of disruption to such 
services during emergencies. Digital broadcasting also is 
becoming ubiquitous. Public television stations nationwide are 
in the process of converting to digital broadcast signals that, 
when fully implemented, could reach ninety-nine (99) percent of 
American households, according to some estimates. Thus, the 
Committee encourages DHS to consider whether this technology 
may be helpful in providing training and alerts for citizens 
and first responders at the state and local levels, and in 
supplementing emergency alert systems.

Section 5. Coordination of industry efforts

    Section 5 adds to the duties of the Special Assistant to 
the Secretary for Private Sector Liaison the responsibility to 
coordinate industry efforts, with respect to functions of the 
Department of Homeland Security, to identify private sector 
resources that could effectively supplement Federal, state, and 
local government efforts to prevent or respond to terrorist 
attacks. Nothing in this section is intended to expand the 
authorities of the Department of Homeland Security into areas 
addressed by other Federal Departments or agencies or to 
suggest that any agency lacks the authority to work with the 
private sector in a similar manner. Nor does the provision 
provide for any regulatory or other authority.

Section 6. Superseded provision

    Section 6 provides that this Act supersedes section 1014 of 
the USA PATRIOT Act (Public Law 107-56) (dealing with 
allocation of terrorism grant funds).

Section 7. Sense of Congress regarding interoperable communications

    Section 7 clarifies that the focus of efforts by DHS and 
first responders to achieve interoperability among emergency 
communications systems should be on deploying digital systems 
and radios.

Section 8. Sense of Congress regarding Citizen Corps Councils

    Section 8 states that it is the Sense of the Congress that 
individual Citizen Corps Councils should seek to enhance and 
promote local terrorism preparedness programs by providing 
funding to as many of their participating local organizations 
as practicable.

Section 9. Study regarding nationwide emergency notification system

    Section 9 directs the Secretary, in consultation with other 
appropriate Federal agencies, to conduct a study to determine 
whether it would be cost-effective, efficient, or feasible to 
establish and implement an emergency telephonic alert 
notification system.

Section 10. Authorization of appropriations

    Section 10 authorizes the Secretary to make covered grants 
in the amount of $3.4 billion for fiscal year 2006. In addition 
to covered grants, the authorization of appropriations may be 
used for the Metropolitan Medical Response System.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                     HOMELAND SECURITY ACT OF 2002


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.
     * * * * * * *

      TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

  Subtitle A--Directorate for Information Analysis and Infrastructure 
                    Protection; Access to Information

     * * * * * * *
203. Homeland Security Advisory System.
     * * * * * * *

                TITLE XVIII--FUNDING FOR FIRST RESPONDERS

1801. Faster and smarter funding for first responders.
1802. Essential capabilities for first responders.
1803. Covered grant eligibility and criteria.
1804. Use of funds and accountability requirements.
1805. National standards for first responder equipment and training.
1806. Definitions.

SEC. 2. DEFINITIONS.

  In this Act, the following definitions apply:
          (1) * * *

           *       *       *       *       *       *       *

          (6) The term ``emergency response providers'' 
        [includes Federal, State, and local emergency public 
        safety, law enforcement, emergency response, emergency 
        medical (including hospital emergency facilities), and 
        related personnel, agencies, and authorities.] includes 
        Federal, State, and local governmental and 
        nongovernmental emergency public safety, law 
        enforcement, fire, emergency response, emergency 
        medical (including hospital emergency facilities), and 
        related personnel, organizations, agencies, and 
        authorities.

           *       *       *       *       *       *       *


TITLE I--DEPARTMENT OF HOMELAND SECURITY

           *       *       *       *       *       *       *


SEC. 102. SECRETARY; FUNCTIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Special Assistant to the Secretary.--The Secretary shall 
appoint a Special Assistant to the Secretary who shall be 
responsible for--
          (1) * * *

           *       *       *       *       *       *       *

          (6) promoting existing public-private partnerships 
        and developing new public-private partnerships to 
        provide for collaboration and mutual support to address 
        homeland security challenges; [and]
          (7) assisting in the development and promotion of 
        private sector best practices to secure critical 
        infrastructure[.]; and
          (8) coordinating industry efforts, with respect to 
        functions of the Department of Homeland Security, to 
        identify private sector resources and capabilities that 
        could be effective in supplementing Federal, State, and 
        local government agency efforts to prevent or respond 
        to a terrorist attack.

           *       *       *       *       *       *       *


      TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

  Subtitle A--Directorate for Information Analysis and Infrastructure 
Protection; Access to Information

           *       *       *       *       *       *       *


SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

  (a) In General.--The Secretary shall revise the Homeland 
Security Advisory System referred to in section 201(d)(7) to 
require that any designation of a threat level or other warning 
shall be accompanied by a designation of the geographic regions 
or economic sectors to which the designation applies.
  (b) Reports.--The Secretary shall report to the Congress 
annually by not later than December 31 each year regarding the 
geographic region-specific warnings and economic sector-
specific warnings issued during the preceding fiscal year under 
the Homeland Security Advisory System referred to in section 
201(d)(7), and the bases for such warnings. The report shall be 
submitted in unclassified form and may, as necessary, include a 
classified annex.

           *       *       *       *       *       *       *


               TITLE XVIII--FUNDING FOR FIRST RESPONDERS

SEC. 1801. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

  (a) Covered Grants.--This title applies to any grant provided 
by the Department to States or regions to improve the ability 
of first responders to prevent, prepare for, respond to, or 
mitigate threatened or actual terrorist attacks, especially 
those involving weapons of mass destruction, and including any 
grant under the following:
          (1) State homeland security grant program.--The State 
        Homeland Security Grant Program of the Department, or 
        any successor to such grant program.
          (2) Urban area security initiative.--The Urban Area 
        Security Initiative of the Department, or any successor 
        to such grant program.
  (b) Excluded Programs.--This title does not apply to or 
otherwise affect the following Federal grant programs or any 
grant under such a program:
          (1) Nondepartment programs.--Any Federal grant 
        program that is not administered by the Department.
          (2) Fire grant programs.--The fire grant programs 
        authorized by sections 33 and 34 of the Federal Fire 
        Prevention and Control Act of 1974 (15 U.S.C. 2229, 
        2229a).
          (3) Emergency management planning and assistance 
        account grants.--The Emergency Management Performance 
        Grant program and the Urban Search and Rescue Grants 
        program authorized by title VI of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5195 et seq.); the Departments of Veterans 
        Affairs and Housing and Urban Development, and 
        Independent Agencies Appropriations Act, 2000 (113 
        Stat. 1047 et seq.); and the Earthquake Hazards 
        Reduction Act of 1977 (42 U.S.C. 7701 et seq.).

SEC. 1802. ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

  (a) Establishment of Essential Capabilities.--
          (1) In general.--For purposes of covered grants, the 
        Secretary shall establish clearly defined essential 
        capabilities for State and local government 
        preparedness for terrorism, in consultation with--
                  (A) the Under Secretaries for Emergency 
                Preparedness and Response, Border and 
                Transportation Security, Information Analysis 
                and Infrastructure Protection, and Science and 
                Technology, and the Director of the Office for 
                Domestic Preparedness;
                  (B) other appropriate Federal agencies;
                  (C) State and local first responder agencies 
                and officials; and
                  (D) groups responsible for setting standards 
                relevant to the first responder community.
          (2) Deadlines.--The Secretary shall--
                  (A) establish essential capabilities under 
                paragraph (1) not later than 120 days after the 
                date of the enactment of this section; and
                  (B) regularly update such essential 
                capabilities as necessary, but not less than 
                every 3 years.
          (3) Provision of essential capabilities.--The 
        Secretary shall ensure that essential capabilities 
        established under paragraph (1) are provided promptly 
        to the States and to the Congress. The States shall 
        make the essential capabilities available as necessary 
        and appropriate to local governments within their 
        jurisdictions.
  (b) Objectives.--The Secretary shall ensure that essential 
capabilities established under subsection (a)(1) meet the 
following objectives:
          (1) Specificity.--The determination of essential 
        capabilities specifically shall describe the training, 
        planning, personnel, and equipment that different types 
        of communities in the Nation should possess, or to 
        which they should have access, in order to meet the 
        Department's goals for terrorism preparedness based 
        upon--
                  (A) the most current risk assessment 
                available by the Directorate for Information 
                Analysis and Infrastructure Protection of the 
                threats of terrorism against the United States; 
                and
                  (B) the types of threats, vulnerabilities, 
                geography, size, and other factors that the 
                Secretary has determined to be applicable to 
                each different type of community.
          (2) Flexibility.--The establishment of essential 
        capabilities shall be sufficiently flexible to allow 
        State and local government officials to set priorities 
        based on particular needs, while reaching nationally 
        determined terrorism preparedness levels within a 
        specified time period.
          (3) Measurability.--The establishment of essential 
        capabilities shall be designed to enable measurement of 
        progress towards specific terrorism preparedness goals.
  (c) Threats To Be Considered.--
          (1) In general.--In establishing essential 
        capabilities under subsection (a)(1), the Secretary 
        specifically shall consider the variables of threat, 
        vulnerability, and consequences with respect to the 
        Nation's population (including transient commuting and 
        tourist populations) and critical infrastructure. Such 
        consideration shall be based upon the most current risk 
        assessment available by the Directorate for Information 
        Analysis and Infrastructure Protection of the threats 
        of terrorism against the United States.
          (2) Critical infrastructure sectors.--The Secretary 
        specifically shall consider threats of terrorism 
        against the following critical infrastructure sectors 
        in all areas of the Nation, urban and rural:
                  (A) Agriculture.
                  (B) Banking and finance.
                  (C) Chemical industries.
                  (D) The defense industrial base.
                  (E) Emergency services.
                  (F) Energy.
                  (G) Food.
                  (H) Government.
                  (I) Postal and shipping.
                  (J) Public health.
                  (K) Information and telecommunications 
                networks.
                  (L) Transportation.
                  (M) Water.
        The order in which the critical infrastructure sectors 
        are listed in this paragraph shall not be construed as 
        an order of priority for consideration of the 
        importance of such sectors.
          (3) Consideration of additional threats.--In 
        establishing essential capabilities under subsection 
        (a)(1), the Secretary shall take into account any other 
        specific threat to a population (including a transient 
        commuting or tourist population) or critical 
        infrastructure sector that the Secretary has determined 
        to exist.

SEC. 1803. COVERED GRANT ELIGIBILITY AND CRITERIA.

  (a) Grant Eligibility.--Any State or region shall be eligible 
to apply for a covered grant.
  (b) Grant Criteria.--In awarding covered grants, the 
Secretary shall assist States and local governments in 
achieving the essential capabilities for first responders 
established by the Secretary under section 1802.
  (c) State Homeland Security Plans.--
          (1) Submission of plans.--The Secretary shall require 
        that any State applying to the Secretary for a covered 
        grant must submit to the Secretary a 3-year State 
        homeland security plan that--
                  (A) demonstrates the extent to which the 
                State has achieved the essential capabilities 
                that apply to the State;
                  (B) demonstrates the additional needs of the 
                State necessary to achieve the essential 
                capabilities that apply to the State;
                  (C) includes a prioritization of such 
                additional needs based on threat, 
                vulnerability, and consequence assessment 
                factors applicable to the State;
                  (D) describes how the State intends--
                          (i) to address such additional needs 
                        at the city, county, regional, State, 
                        and interstate level;
                          (ii) to use all Federal, State, and 
                        local resources available for the 
                        purpose of addressing such additional 
                        needs; and
                          (iii) to give particular emphasis to 
                        regional planning and cooperation, both 
                        within its jurisdictional borders and 
                        with neighboring States; and
                  (E) is developed in consultation with and 
                subject to appropriate comment by local 
                governments within the State.
          (2) Approval by secretary.--The Secretary may not 
        award any covered grant to a State unless the Secretary 
        has approved the applicable State homeland security 
        plan.
  (d) Consistency With State Plans.--The Secretary shall ensure 
that each covered grant is used to supplement and support, in a 
consistent and coordinated manner, the applicable State 
homeland security plan or plans.
  (e) Application for Grant.--
          (1) In general.--Any State or region may apply for a 
        covered grant by submitting to the Secretary an 
        application at such time, in such manner, and 
        containing such information as is required under this 
        subsection, or as the Secretary may reasonably require.
          (2) Deadlines for applications and awards.--All 
        applications for covered grants must be submitted to 
        the Secretary no later than February 15 of the fiscal 
        year for which they are submitted. The Secretary shall 
        award covered grants pursuant to all approved 
        applications for such fiscal year as soon as 
        practicable, but not later than July 31 of such year.
          (3) Availability of funds.--All funds awarded by the 
        Secretary under covered grants in a fiscal year shall 
        be available for obligation through the end of the 
        subsequent fiscal year.
          (4) Minimum contents of application.--The Secretary 
        shall require that each applicant include in its 
        application, at a minimum--
                  (A) the purpose for which the applicant seeks 
                covered grant funds and the reasons why the 
                applicant needs the covered grant to meet the 
                essential capabilities for terrorism 
                preparedness within the State or region to 
                which the application pertains;
                  (B) a description of how, by reference to the 
                applicable State homeland security plan or 
                plans under subsection (c), the allocation of 
                grant funding proposed in the application, 
                including, where applicable, the amount not 
                passed through under section 1804(e)(1), would 
                assist in fulfilling the essential capabilities 
                specified in such plan or plans;
                  (C) a statement of whether a mutual aid 
                agreement applies to the use of all or any 
                portion of the covered grant funds;
                  (D) if the applicant is a region--
                          (i) a precise geographical 
                        description of the region and a 
                        specification of all participating and 
                        nonparticipating local governments 
                        within the geographical area comprising 
                        that region;
                          (ii) a specification of what 
                        governmental entity within the region 
                        will administer the expenditure of 
                        funds under the covered grant; and
                          (iii) a designation of a specific 
                        individual to serve as regional 
                        liaison;
                  (E) a capital budget showing how the 
                applicant intends to allocate and expend the 
                covered grant funds; and
                  (F) a statement of how the applicant intends 
                to meet the matching requirement, if any, that 
                applies under section 1804(e)(2).
          (5) Regional applications.--
                  (A) Submission to state or states.--To ensure 
                the consistency required under subsection (d), 
                an applicant that is a region must 
                simultaneously submit its application to the 
                Department and to each State of which any part 
                is included in the region.
                  (B) Opportunity for state comment.--Before 
                awarding any covered grant to a region, the 
                Secretary shall provide an opportunity to each 
                State of which any part is included in a 
                region, during the 30-day period beginning on 
                the date on which the region submits an 
                application for a covered grant, to comment to 
                the Secretary on the consistency of the 
                region's plan with the State's homeland 
                security plan.
                  (C) Final authority.--The Secretary shall 
                have final authority to determine the 
                consistency of any regional application with 
                the applicable State homeland security plan or 
                plans and approve any regional application. The 
                Secretary shall notify each State of which any 
                part is included in a region of the approval of 
                a regional application for that region.
                  (D) Regional liaisons.--A regional liaison 
                designated under paragraph (4)(D)(iii) shall--
                          (i) coordinate with Federal, State, 
                        local, regional, and private officials 
                        within the region concerning terrorism 
                        preparedness;
                          (ii) develop a process for receiving 
                        input from Federal, State, local, 
                        regional, and private sector officials 
                        within the region to assist in the 
                        development of the regional application 
                        and to improve the region's access to 
                        covered grants; and
                          (iii) administer, in consultation 
                        with State, local, regional, and 
                        private officials within the region, 
                        covered grants awarded to the region.
          (6) Equipment standards.--If an applicant for a 
        covered grant proposes to upgrade or purchase, with 
        assistance provided under the grant, new equipment or 
        systems that do not meet or exceed any applicable 
        national voluntary consensus standards established by 
        the Secretary under section 1805(a), the applicant 
        shall include in the application an explanation of why 
        such equipment or systems will serve the needs of the 
        applicant better than equipment or systems that meet or 
        exceed such standards.
  (f) First Responder Grants Board.--
          (1) Establishment of board.--The Secretary shall 
        establish a First Responder Grants Board, consisting 
        of--
                  (A) the Secretary;
                  (B) the Under Secretary for Emergency 
                Preparedness and Response;
                  (C) the Under Secretary for Border and 
                Transportation Security;
                  (D) the Under Secretary for Information 
                Analysis and Infrastructure Protection;
                  (E) the Under Secretary for Science and 
                Technology; and
                  (F) the Director of the Office for Domestic 
                Preparedness.
          (2) Chairman.--
                  (A) In general.--The Secretary shall be the 
                Chairman of the Board.
                  (B) Exercise of authorities by deputy 
                secretary.--The Deputy Secretary of Homeland 
                Security may exercise the authorities of the 
                Chairman, if the Secretary so directs.
          (3) Ranking of grant applications.--
                  (A) Prioritization of grants.--The Board 
                shall evaluate and annually prioritize all 
                pending applications for covered grants based 
                upon the degree to which they would lessen the 
                threat to, vulnerability of, and consequences 
                for persons and critical infrastructure.
                  (B) Achieving nationwide capability.--In 
                evaluating and prioritizing grant applications 
                under subparagraph (A), the Board shall--
                          (i) seek to achieve and enhance 
                        essential capabilities throughout the 
                        Nation; and
                          (ii) seek to allocate a portion of 
                        the funds available for covered grants 
                        each fiscal year for the purpose of 
                        making covered grants to each approved 
                        applicant that the Board determines has 
                        demonstrated a valid need in its 
                        application.
          (4) Functions of under secretaries.--The Under 
        Secretaries referred to in paragraph (1) shall seek to 
        ensure that the relevant expertise and input of the 
        staff of their directorates are available to and 
        considered by the Board.

SEC. 1804. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

  (a) In General.--A covered grant may be used for--
          (1) purchasing or upgrading equipment, including 
        computer software, to enhance terrorism preparedness 
        and response;
          (2) exercises to strengthen terrorism preparedness 
        and response;
          (3) training for prevention (including detection) of, 
        preparedness for, or response to attacks involving 
        weapons of mass destruction, including training in the 
        use of equipment and computer software;
          (4) developing or updating response plans;
          (5) establishing or enhancing mechanisms for sharing 
        terrorism threat information pursuant to this Act;
          (6) systems architecture and engineering, program 
        planning and management, strategy formulation and 
        strategic planning, life-cycle systems design, product 
        and technology evaluation, and prototype development 
        for terrorism preparedness and response purposes;
          (7) additional personnel costs resulting from--
                  (A) elevations in the threat alert level of 
                the Homeland Security Advisory System;
                  (B) travel to and participation in exercises 
                and training in the use of equipment and on 
                prevention activities; and
                  (C) the temporary replacement of personnel 
                during any period of travel to and 
                participation in exercises and training in the 
                use of equipment and on prevention activities;
          (8) the costs of equipment (including software) 
        required to receive, transmit, handle, and store 
        classified information;
          (9) enhancing facilities to serve as operations 
        centers, or hardening critical infrastructure against 
        potential attack by the addition of barriers, fences, 
        gates, and other such devices;
          (10) the costs of commercially available 
        interoperable communications equipment (which, where 
        applicable, is based on national, voluntary consensus 
        standards) that the Secretary, in consultation with the 
        Chairman of the Federal Communications Commission, 
        deems best suited to facilitate interoperability, 
        coordination, and integration between and among 
        emergency communications systems, and that complies 
        with prevailing grant guidance of the Department for 
        interoperable communications;
          (11) educational curricula development for first 
        responders to ensure that they are prepared for 
        terrorist attacks;
          (12) training and exercises to assist public 
        elementary and secondary schools in developing and 
        implementing programs to instruct students regarding 
        age-appropriate skills to prepare for and respond to an 
        act of terrorism; and
          (13) other appropriate activities as determined by 
        the Secretary.
The costs of training described in this subsection include such 
costs for full-time, part-time, and volunteer first responders.
  (b) Prohibited Uses.--Funds provided as a covered grant may 
not be used--
          (1) to supplant State or local funds for, or 
        otherwise support, traditional missions of State and 
        local law enforcement, firefighters, emergency medical 
        services, or public health agencies, unless such 
        support serves a dual purpose and the funds are 
        primarily intended to enhance terrorism preparedness;
          (2) to construct buildings or other physical 
        facilities;
          (3) to acquire land; or
          (4) for any State or local government cost sharing 
        contribution.
  (c) Assistance Requirement.--The Secretary may not request 
that equipment paid for, wholly or in part, with funds provided 
as a covered grant be made available for responding to 
emergencies in surrounding States, regions, and localities, 
unless the Secretary undertakes to pay the costs directly 
attributable to transporting and operating such equipment 
during such response.
  (d) Flexibility in Unspent Homeland Security Grant Funds.--
Upon request by the recipient of a covered grant, the Secretary 
may authorize the grantee to transfer all or part of funds 
provided as the covered grant from uses specified in the grant 
agreement to other uses authorized under this section, if the 
Secretary determines that such transfer is in the interests of 
homeland security.
  (e) State and Regional Responsibilities.--
          (1) Pass-through.--The Secretary shall require a 
        recipient of a covered grant that is a State to 
        obligate or otherwise make available to local 
        governments, first responders, and other local groups, 
        to the extent required under the State homeland 
        security plan or plans specified in the application for 
        the grant, not less than 80 percent of the grant funds, 
        resources purchased with the grant funds having a value 
        equal to at least 80 percent of the amount of the 
        grant, or a combination thereof, by not later than the 
        end of the 45-day period beginning on the date the 
        grant recipient receives the grant funds.
          (2) Cost sharing.--
                  (A) In general.--The Federal share of the 
                costs of an activity carried out with a covered 
                grant to a State or region awarded after the 2-
                year period beginning on the date of the 
                enactment of this section shall not exceed 75 
                percent.
                  (B) Interim rule.--The Federal share of the 
                costs of an activity carried out with a covered 
                grant awarded before the end of the 2-year 
                period beginning on the date of the enactment 
                of this section shall be 100 percent.
                  (C) In-kind matching.--Each recipient of a 
                covered grant may meet the matching requirement 
                under subparagraph (A) by making in-kind 
                contributions of goods or services that are 
                directly linked with the purpose for which the 
                grant is made, including, but not limited to, 
                any necessary personnel overtime, contractor 
                services, administrative costs, equipment fuel 
                and maintenance, and rental space.
          (3) Certifications regarding distribution of grant 
        funds to local governments.--Any State that receives a 
        covered grant shall certify to the Secretary, by not 
        later than 30 days after the expiration of the period 
        described in paragraph (1) with respect to the grant, 
        that the State has made available for expenditure by 
        local governments, first responders, and other local 
        groups the required amount of grant funds pursuant to 
        paragraph (1).
          (4) Report on homeland security spending.--Each 
        recipient of a covered grant shall submit a report to 
        the Secretary not later than 60 days after the end of 
        each fiscal year. Each recipient of a covered grant 
        that is a region must simultaneously submit its report 
        to each State of which any part is included in the 
        region. Each report must include the following:
                  (A) The amount, ultimate recipients, and 
                dates of receipt of all funds received under 
                the grant during the previous fiscal year.
                  (B) The amount and the dates of disbursements 
                of all such funds expended in compliance with 
                paragraph (1) or pursuant to mutual aid 
                agreements or other sharing arrangements that 
                apply within the State or region, as 
                applicable, during the previous fiscal year.
                  (C) How the funds were utilized by each 
                ultimate recipient or beneficiary during the 
                preceding fiscal year.
                  (D) The extent to which essential 
                capabilities identified in the applicable State 
                homeland security plan or plans were achieved 
                or enhanced as the result of the expenditure of 
                grant funds during the preceding fiscal year.
                  (E) The extent to which essential 
                capabilities identified in the applicable State 
                homeland security plan or plans remain unmet.
          (5) Inclusion of restricted annexes.--A recipient of 
        a covered grant may submit to the Secretary an annex to 
        the report under paragraph (4) that is subject to 
        appropriate handling restrictions, if the recipient 
        believes that discussion in the report of unmet needs 
        would reveal sensitive but unclassified information.
          (6) Provision of reports.--The Secretary shall ensure 
        that each report under paragraph (4) is provided to the 
        Under Secretary for Emergency Preparedness and Response 
        and the Director of the Office for Domestic 
        Preparedness.
  (f) Incentives To Efficient Administration of Homeland 
Security Grants.--
          (1) Penalties for delay in passing through local 
        share.--If a recipient of a covered grant that is a 
        State fails to pass through to local governments, first 
        responders, and other local groups funds or resources 
        required by subsection (e)(1) within 45 days after 
        receiving funds under the grant, the Secretary may--
                  (A) reduce grant payments to the grant 
                recipient from the portion of grant funds that 
                is not required to be passed through under 
                subsection (e)(1);
                  (B) terminate payment of funds under the 
                grant to the recipient, and transfer the 
                appropriate portion of those funds directly to 
                local first responders that were intended to 
                receive funding under that grant; or
                  (C) impose additional restrictions or burdens 
                on the recipient's use of funds under the 
                grant, which may include--
                          (i) prohibiting use of such funds to 
                        pay the grant recipient's grant-related 
                        overtime or other expenses;
                          (ii) requiring the grant recipient to 
                        distribute to local government 
                        beneficiaries all or a portion of grant 
                        funds that are not required to be 
                        passed through under subsection (e)(1); 
                        or
                          (iii) for each day that the grant 
                        recipient fails to pass through funds 
                        or resources in accordance with 
                        subsection (e)(1), reducing grant 
                        payments to the grant recipient from 
                        the portion of grant funds that is not 
                        required to be passed through under 
                        subsection (e)(1), except that the 
                        total amount of such reduction may not 
                        exceed 20 percent of the total amount 
                        of the grant.
          (2) Extension of period.--The Governor of a State may 
        request in writing that the Secretary extend the 45-day 
        period under paragraph (1) for an additional 15-day 
        period. The Secretary may approve such a request, and 
        may extend such period for additional 15-day periods, 
        if the Secretary determines that the resulting delay in 
        providing grant funding to the local government 
        entities that will receive funding under the grant will 
        not have a significant detrimental impact on such 
        entities' terrorism preparedness efforts.
          (3) Provision of non-local share to local 
        government.--
                  (A) In general.--The Secretary may upon 
                request by a local government pay to the local 
                government a portion of the amount of a covered 
                grant awarded to a State in which the local 
                government is located, if--
                          (i) the local government will use the 
                        amount paid to expedite planned 
                        enhancements to its terrorism 
                        preparedness as described in any 
                        applicable State homeland security plan 
                        or plans;
                          (ii) the State has failed to pass 
                        through funds or resources in 
                        accordance with subsection (e)(1); and
                          (iii) the local government complies 
                        with subparagraphs (B) and (C).
                  (B) Showing required.--To receive a payment 
                under this paragraph, a local government must 
                demonstrate that--
                          (i) it is identified explicitly as an 
                        ultimate recipient or intended 
                        beneficiary in the approved grant 
                        application;
                          (ii) it was intended by the grantee 
                        to receive a severable portion of the 
                        overall grant for a specific purpose 
                        that is identified in the grant 
                        application;
                          (iii) it petitioned the grantee for 
                        the funds or resources after expiration 
                        of the period within which the funds or 
                        resources were required to be passed 
                        through under subsection (e)(1); and
                          (iv) it did not receive the portion 
                        of the overall grant that was earmarked 
                        or designated for its use or benefit.
                  (C) Effect of payment.--Payment of grant 
                funds to a local government under this 
                paragraph--
                          (i) shall not affect any payment to 
                        another local government under this 
                        paragraph; and
                          (ii) shall not prejudice 
                        consideration of a request for payment 
                        under this paragraph that is submitted 
                        by another local government.
                  (D) Deadline for action by secretary.--The 
                Secretary shall approve or disapprove each 
                request for payment under this paragraph by not 
                later than 15 days after the date the request 
                is received by the Department.
  (g) Reports to Congress.--The Secretary shall submit an 
annual report to the Congress by December 31 of each year--
          (1) describing in detail the amount of Federal funds 
        provided as covered grants that were directed to each 
        State and region in the preceding fiscal year;
          (2) containing information on the use of such grant 
        funds by grantees; and
          (3) describing, on a nationwide and State-by-State 
        basis--
                  (A) the extent to which essential 
                capabilities identified in applicable State 
                homeland security plan or plans were created or 
                enhanced as the result of the expenditure of 
                covered grant funds during the preceding fiscal 
                year;
                  (B) the extent to which essential 
                capabilities identified in applicable State 
                homeland security plan or plans remain unmet; 
                and
                  (C) an estimate of the amount of Federal, 
                State, and local expenditures required to 
                attain across the United States the essential 
                capabilities established under section 1802(a).

SEC. 1805. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
                    TRAINING.

  (a) Equipment Standards.--
          (1) In general.--The Secretary, in consultation with 
        the Under Secretary for Science and Technology and the 
        Director of the Office for Domestic Preparedness, 
        shall, not later than 6 months after the date of 
        enactment of this section, support the development of, 
        promulgate, and update as necessary national voluntary 
        consensus standards for the performance, use, and 
        validation of first responder equipment for purposes of 
        section 1803(e)(6). Such standards--
                  (A) shall be, to the maximum extent 
                practicable, consistent with any existing 
                voluntary consensus standards;
                  (B) shall take into account, as appropriate, 
                new types of terrorism threats that may not 
                have been contemplated when such existing 
                standards were developed; and
                  (C) shall be focused on maximizing 
                interoperability, interchangeability, 
                durability, flexibility, efficiency, efficacy, 
                portability, sustainability, and safety.
          (2) Required categories.--In carrying out paragraph 
        (1), the Secretary shall specifically consider the 
        following categories of first responder equipment:
                  (A) Thermal imaging equipment.
                  (B) Radiation detection and analysis 
                equipment.
                  (C) Biological detection and analysis 
                equipment.
                  (D) Chemical detection and analysis 
                equipment.
                  (E) Decontamination and sterilization 
                equipment.
                  (F) Personal protective equipment, including 
                garments, boots, gloves, and hoods and other 
                protective clothing.
                  (G) Respiratory protection equipment.
                  (H) Interoperable communications, including 
                wireless and wireline voice, video, and data 
                networks.
                  (I) Explosive mitigation devices and 
                explosive detection and analysis equipment.
                  (J) Containment vessels.
                  (K) Contaminant-resistant vehicles.
                  (L) Such other equipment for which the 
                Secretary determines that national voluntary 
                consensus standards would be appropriate.
  (b) Training Standards.--
          (1) In general.--The Secretary, in consultation with 
        the Under Secretaries for Emergency Preparedness and 
        Response and Science and Technology and the Director of 
        the Office for Domestic Preparedness, shall support the 
        development of, promulgate, and regularly update as 
        necessary national voluntary consensus standards for 
        first responder training carried out with amounts 
        provided under covered grant programs, that will enable 
        State and local government first responders to achieve 
        optimal levels of terrorism preparedness as quickly as 
        practicable. Such standards shall give priority to 
        providing training to--
                  (A) enable first responders to prevent, 
                prepare for, respond to, and mitigate terrorist 
                threats, including threats from chemical, 
                biological, nuclear, and radiological weapons 
                and explosive devices capable of inflicting 
                significant human casualties; and
                  (B) familiarize first responders with the 
                proper use of equipment, including software, 
                developed pursuant to the standards established 
                under subsection (a).
          (2) Required categories.--In carrying out paragraph 
        (1), the Secretary specifically shall include the 
        following categories of first responder activities:
                  (A) Regional planning.
                  (B) Joint exercises.
                  (C) Intelligence collection, analysis, and 
                sharing.
                  (D) Emergency notification of affected 
                populations.
                  (E) Detection of biological, nuclear, 
                radiological, and chemical weapons of mass 
                destruction.
                  (F) Such other activities for which the 
                Secretary determines that national voluntary 
                consensus training standards would be 
                appropriate.
  (c) Consultation With Standards Organizations.--In 
establishing national voluntary consensus standards for first 
responder equipment and training under this section, the 
Secretary shall consult with relevant public and private sector 
groups, including--
          (1) the National Institute of Standards and 
        Technology;
          (2) the National Fire Protection Association;
          (3) the National Association of County and City 
        Health Officials;
          (4) the Association of State and Territorial Health 
        Officials;
          (5) the American National Standards Institute;
          (6) the National Institute of Justice;
          (7) the Inter-Agency Board for Equipment 
        Standardization and Interoperability;
          (8) the National Public Health Performance Standards 
        Program;
          (9) the National Institute for Occupational Safety 
        and Health;
          (10) ASTM International;
          (11) the International Safety Equipment Association; 
        and
          (12) to the extent the Secretary considers 
        appropriate, other national voluntary consensus 
        standards development organizations, other interested 
        Federal, State, and local agencies, and other 
        interested persons.
  (d) Coordination With Secretary of HHS.--In establishing any 
national voluntary consensus standards under this section for 
first responder equipment or training that involve or relate to 
public health professionals, including emergency medical 
professionals, the Secretary shall coordinate activities under 
this section with the Secretary of Health and Human Services.

SEC. 1806. DEFINITIONS.

  In this title:
          (1) Board.--The term ``Board'' means the First 
        Responder Grants Board established under section 
        1803(f).
          (2) Covered grant.--The term ``covered grant'' means 
        any grant to which this title applies under section 
        1801.
          (3) Elevations in the threat alert level.--The term 
        ``elevations in the threat alert level'' means any 
        designation (including those that are less than 
        national in scope) that raises the homeland security 
        threat level to either the highest or second highest 
        threat level under the Homeland Security Advisory 
        System referred to in section 201(d)(7).
          (4) Essential capabilities.--The term ``essential 
        capabilities'' means the levels, availability, and 
        competence of emergency personnel, planning, training, 
        and equipment across a variety of disciplines needed to 
        effectively and efficiently prevent, prepare for, and 
        respond to acts of terrorism consistent with 
        established practices.
          (5) Region.--The term ``region'' means--
                  (A) any geographic area consisting of all or 
                parts of 2 or more contiguous States, counties, 
                municipalities, or other local governments that 
                have a combined population of at least 
                1,650,000 or have an area of not less than 
                20,000 square miles, and that, for purposes of 
                an application for a covered grant, is 
                represented by 1 or more governments or 
                governmental agencies within such geographic 
                area, and that is established by law or by 
                agreement of 2 or more such governments or 
                governmental agencies in a mutual aid 
                agreement; or
                  (B) any other combination of contiguous local 
                government units (including such a combination 
                established by law or agreement of two or more 
                governments or governmental agencies in a 
                mutual aid agreement) that is formally 
                certified by the Secretary as a region for 
                purposes of this Act with the consent of--
                          (i) the State or States in which they 
                        are located, including a multi-State 
                        entity established by a compact between 
                        two or more States; and
                          (ii) the incorporated municipalities, 
                        counties, and parishes which they 
                        encompass.
          (6) First responder.--The term ``first responder'' 
        shall have the same meaning as the term ``emergency 
        response provider''.

                            DISSENTING VIEWS

    This legislation raises serious concerns on my part because 
it puts small, rural states at a disadvantage when vying for 
State Homeland Security grant money. Specifically, this bill 
does away with a minimum funding level that assures each state 
of receiving adequate dollars for first responders in each 
state to maintain essential capabilities for protection from 
and response to terrorist acts. Instead, the bill allocates 
money using strictly a set of ``risk-based'' criteria. A Board 
at the Department of Homeland Security would determine the 
final amount for each state. Such a board has little 
understanding of the risks and first responder capabilities in 
rural states.
    Funding first responders on a nationwide basis is 
critically important because these people are our first line of 
defense in the event of any terrorist attack on American soil. 
A risk-based approach to allocating funding has its place in 
Homeland Security and I do not dispute that. However, to base 
funding solely on risk while at the same time eliminating 
minimum funding levels will rob small communities and states, 
like Wyoming, of their vital State Homeland Security Grant 
Program dollars.
    How can we possibly know, with any degree of certainty, 
where a terrorist attack will take place? Any area of the 
country can be the subject of a terrorist attack. Biological 
attacks of communicable diseases may rapidly spread across the 
Nation and will not observe geographic boundaries. Does rural 
America not supply this country with the bulk of its food, 
agriculture and energy supply? Are power plants and nuclear 
weapons not located throughout rural America? Are the most 
beautiful and grandiose national parks not located in rural 
America, where countless numbers of tourists visit at any given 
time? Perhaps such points will be adequately weighed by the 
Board and perhaps not. Congress, in previously authorizing the 
State Homeland Security Grant Program wisely chose to avoid 
such bureaucratic uncertainty for at least a base level of 
support to each State.
    Isn't it common sense to think that if we harness all of 
our resources into few geographic areas that the terrorists 
will simply look to attack what is left vulnerable? We must 
equip ALL first responders in both urban and rural America with 
the funding and resources they need to do the job. This 
legislation falls short of that.
                                                     Barbara Cubin.