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108th Congress                                            Rept. 108-460
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 3

======================================================================



 
      FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS ACT OF 2004

                                _______
                                

                 June 21, 2004.--Ordered to be printed

                                _______
                                

     Mr. Young of Alaska, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 3266]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, 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, report favorably 
thereon with amendments and recommend that the bill as amended 
do pass.
    The amendments are as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Faster and Smarter Funding for First 
Responders Act of 2004''.

SEC. 2. FINDINGS.

  Congress finds the following:
          (1) The first responsibility of governments at all levels is 
        to protect the lives and property of their citizens.
          (2) In order to achieve its objective of minimizing the 
        damage, and assisting in the recovery, from major disasters and 
        emergencies, including those caused by 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 major disaster or emergency.
          (3) An all-hazards preparedness program encourages 
        governments at all levels to develop flexible and consistent 
        plans to prevent, prepare for, mitigate against, respond to, 
        and recover from major disasters and emergencies, including 
        those caused by terrorist attacks.
          (4) Since 1979, the United States has developed a 
        preparedness system that has enabled the Nation to effectively 
        address all disasters it has thus far faced.
          (5) The United States must build upon this foundation to 
        better address acts of terrorism, particularly those involving 
        weapons of mass destruction, without degrading the ability to 
        face other types of disasters.
          (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.
          (7) Securing Indian reservations and tribal lands is an 
        important part of the overall goal of securing the American 
        homeland. Tribal governments should be encouraged to meet the 
        same national goals for preparedness as State and local 
        governments, and should be fully included in State and regional 
        preparedness plans. In order to achieve this goal, Indian 
        tribes should have an opportunity to work and coordinate with 
        States for the purposes of preparedness and funding.
          (8) An essential prerequisite to achieving the Nation's 
        homeland security objectives for first responders is the 
        establishment of a well-defined national preparedness goal. 
        This goal should delineate the essential capabilities that 
        every jurisdiction in the United States should possess or to 
        which it should have access.
          (9) A national determination of essential capabilities is 
        needed to identify levels of State and local government 
        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.
          (10) Terrorists by their nature are unpredictable, and 
        therefore the Federal Government should support a strategy that 
        provides a basic level of preparedness to all States.
          (11) Private sector resources and citizen volunteers can 
        perform critical functions in assisting in preventing and 
        responding to major disasters and emergencies, including those 
        caused by 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.
          (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 major disasters and 
        emergencies, including those caused by terrorist attacks.
          (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 needed to attain the essential 
        capabilities for first response to major disasters and 
        emergencies, including those caused by terrorist attacks, and 
        to ensure that first responder funds are spent wisely.

SEC. 3. DEFINITIONS.

  (a) Definition of Major Disaster.--Section 102(2) of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5122(2)) is amended to read as follows:
          ``(2) Major disaster.--The term `major disaster' means any 
        natural catastrophe (including any hurricane, tornado, storm, 
        high water, winddriven water, tidal wave, tsunami, earthquake, 
        volcanic eruption, landslide, mudslide, snowstorm, or drought), 
        or, regardless of cause, any fire, flood, explosion, act of 
        terrorism, or other catastrophic event in any part of the 
        United States, which in the determination of the President 
        causes damage of sufficient severity and magnitude to warrant 
        major disaster assistance under this Act to supplement the 
        efforts and available resources of States, local governments, 
        and disaster relief organizations in alleviating the damage, 
        loss, hardship, or suffering caused thereby.''.
  (b) Definition of Emergency Response Providers.--Section 2(6) of the 
Homeland Security Act of 2002 (Public Law 107-296; 6 U.S.C. 101(6)) is 
amended by inserting ``fire,'' after ``law enforcement,''.

SEC. 4. NATIONAL PREPAREDNESS AND FUNDING FOR FIRST RESPONDERS.

  (a) In General.--The Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.) is amended--
          (1) by redesignating title VII as title VIII;
          (2) by redesignating sections 701 through 705 as sections 801 
        through 805, respectively; and
          (3) by inserting after title VI the following:

  ``TITLE VII--NATIONAL PREPAREDNESS AND FUNDING FOR FIRST RESPONDERS

``SEC. 701. PURPOSES.

  ``The purposes of this title are--
          ``(1) to prepare the United States to prevent, mitigate, 
        respond to, and recover from major disasters and emergencies, 
        including those caused by terrorist attacks;
          ``(2) to ensure federally funded preparedness efforts are 
        consistent with an all-hazards preparedness strategy;
          ``(3) to ensure effective coordination of Federal 
        preparedness efforts; and
          ``(4) to provide preparedness assistance to State and local 
        authorities in a timely manner and provide for accountability 
        with respect to the use of such assistance.

``SEC. 702. DEFINITIONS.

  ``In this title, the following definitions apply:
          ``(1) Covered grant.--The term `covered grant' means a grant 
        referred to in section 731.
          ``(2) Department.--The term `Department' means the Department 
        of Homeland Security.
          ``(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) of the 
        Homeland Security Act of 2002 (6 U.S.C. 121(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 major disasters and 
        emergencies, including those caused by terrorist attacks, 
        consistent with established practices.
          ``(5) First responder.--The term `first responder' has the 
        meaning such term has under section 2(6) of the Homeland 
        Security Act of 2002 (Public Law 107-296; 6 U.S.C. 101(6)).
          ``(6) Hazard.--The term `hazard' means an emergency or 
        disaster resulting from--
                  ``(A) a natural disaster; or
                  ``(B) an accidental or man-caused event, including a 
                domestic terrorist attack.
          ``(7) National preparedness goal.--The term `national 
        preparedness goal' means the national domestic all-hazards 
        preparedness goal developed under section 711.
          ``(8) Prevention.--The term `prevention' means activities 
        undertaken by the first responder community during the early 
        stages of an incident to reduce the likelihood or consequences 
        of threatened or actual terrorist attacks. The term does not 
        include more general and broader efforts to deter, disrupt, or 
        thwart terrorism.
          ``(9) Secretary.--The term `Secretary' means the Secretary of 
        Homeland Security.
          ``(10) Statewide preparedness strategy.--The term `statewide 
        preparedness strategy' means a statewide comprehensive all-
        hazards preparedness strategy prepared under section 714.
          ``(11) Weapon of mass destruction.--The term `weapon of mass 
        destruction' has the meaning such term has under section 1403 
        of the Defense Against Weapons of Mass Destruction Act of 1996 
        (50 U.S.C. 2302).

 ``Subtitle A--Preparedness Goals, Essential Capabilities, Standards, 
                             and Strategies

``SEC. 711. NATIONAL PREPAREDNESS GOAL.

  ``(a) Development.--To help ensure the preparedness of the Nation to 
prevent, respond to, and recover from major disasters and emergencies, 
including those caused by terrorist attacks, the Secretary, in 
coordination with the heads of other appropriate Federal departments 
and agencies and in consultation with State and local governments, 
shall develop a national domestic all-hazards preparedness goal not 
later than February 28, 2005.
  ``(b) Elements.--
          ``(1) Readiness priorities and targets.--The national 
        preparedness goal shall establish measurable readiness 
        priorities and targets that appropriately balance the potential 
        threat and magnitude of major disasters and emergencies, 
        including those caused by terrorist attacks, with the resources 
        required to prevent, respond to, and recover from such 
        disasters and emergencies.
          ``(2) Readiness metrics and measures; assessment system.--The 
        national preparedness goal shall include--
                  ``(A) readiness metrics and measures, including 
                standards for preparedness assessments and strategies; 
                and
                  ``(B) a system for assessing the Nation's overall 
                preparedness to respond to major disasters and 
                emergencies, including those caused by terrorist 
                attacks.
          ``(3) National response plan and national incident management 
        system.--The national preparedness goal, to the greatest extent 
        practicable, shall be consistent with the National Response 
        Plan and National Incident Management System.
  ``(c) Activities of Federal Departments and Agencies.--Federal 
departments and agencies shall work to achieve the national 
preparedness goal by--
          ``(1) providing for effective, efficient, and timely delivery 
        of Federal preparedness assistance to State and local 
        governments; and
          ``(2) supporting efforts to ensure first responders are 
        prepared to respond to major disasters and emergencies, 
        including those caused by terrorist attacks.

``SEC. 712. ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

  ``(a) Establishment of Guidance on Essential Capabilities.--
          ``(1) In general.--Not later than February 28, 2005, the 
        Secretary shall establish guidance that clearly defines the 
        essential capabilities for State and local government 
        preparedness for major disasters and emergencies, including 
        those caused by terrorist attacks.
          ``(2) Provision of essential capabilities.--The Secretary 
        shall ensure that the guidance is provided promptly to the 
        States and to Congress. The States shall make the guidance 
        available as necessary and appropriate to local governments 
        within their jurisdictions.
  ``(b) Objectives.--The Secretary shall ensure that the guidance 
established under subsection (a)(1) meets the following objectives:
          ``(1) Specificity.--The guidance 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 
        national preparedness goals.
          ``(2) Flexibility.--The guidance shall be sufficiently 
        flexible to allow State and local government officials to set 
        priorities based on particular needs, while achieving 
        nationally determined preparedness levels within a specified 
        time period.
          ``(3) Measurability.--The guidance shall be designed to 
        enable measurement of progress towards specific preparedness 
        levels.
  ``(c) Threats To Be Considered.--
          ``(1) In general.--In establishing the guidance under 
        subsection (a)(1), the Secretary specifically shall consider 
        the variables of risk, threat, vulnerability, and consequences 
        with respect to the Nation's population (including transient 
        commuting and tourist populations) and critical infrastructure.
          ``(2) Critical infrastructure sectors.--In carrying out 
        paragraph (1), the Secretary specifically shall consider risks 
        to 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) Information and telecommunications networks.
                  ``(J) Postal and shipping.
                  ``(K) Public health.
                  ``(L) Transportation.
                  ``(M) Water.
          ``(3) Consideration of additional threats.--In carrying out 
        paragraph (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. 713. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
                    TRAINING.

  ``(a) Equipment Standards.--
          ``(1) In general.--The Secretary shall develop, promulgate, 
        and update as necessary national voluntary consensus standards 
        for first responder equipment intended for use in the field. 
        Such standards--
                  ``(A) shall support nationwide interoperability and 
                other capabilities consistent with the national 
                preparedness goal, including the safety and health of 
                first responders;
                  ``(B) shall be, to the maximum extent practicable, 
                consistent with any existing voluntary consensus 
                standards;
                  ``(C) shall, to the maximum extent practicable, 
                utilize technologies already certified by other 
                departments and agencies of the United States;
                  ``(D) shall take into account, as appropriate, 
                threats that may not have been contemplated when such 
                existing standards were developed; and
                  ``(E) 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.
          ``(3) Deadline.--The Secretary shall promulgate initial 
        standards under this subsection not later than September 30, 
        2005.
  ``(b) Training Standards.--
          ``(1) In general.--The Secretary 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 preparedness as quickly 
        as practicable. Such standards shall give priority to providing 
        training in those areas where the Secretary has identified 
        significant need, including training--
                  ``(A) to prevent, prepare for, respond to, and 
                mitigate threats from chemical, biological, and 
                radiological materials and explosive devices capable of 
                inflicting significant human casualties; and
                  ``(B) to 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.
          ``(3) Deadline.--The Secretary shall promulgate initial 
        standards under this subsection not later than September 30, 
        2005.
  ``(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.

``SEC. 714. STATEWIDE PREPAREDNESS STRATEGIES.

  ``As a condition for receipt of a covered grant under subtitle B 
after September 30, 2005, the Secretary shall require that a State 
develop a statewide comprehensive all-hazards preparedness strategy 
that--
          ``(1) is consistent with the national preparedness goal and, 
        as necessary, the State response plan;
          ``(2) demonstrates the extent to which the State has achieved 
        the essential capabilities that apply to the State;
          ``(3) demonstrates the additional needs of the State 
        necessary to achieve the essential capabilities that apply to 
        the State;
          ``(4) includes a prioritization of such additional needs 
        based on risk, threat, vulnerability, and consequence 
        assessment factors applicable to the State;
          ``(5) describes how the State intends--
                  ``(A) to address such additional needs at the city, 
                county, tribal, regional, State, and interstate level;
                  ``(B) to use all Federal, State, and local resources 
                available for the purpose of addressing such additional 
                needs; and
                  ``(C) to give particular emphasis to regional 
                planning and cooperation, including the activities of 
                multi-jurisdictional planning agencies governed by 
                local officials, both within its jurisdictional borders 
                and with neighboring States; and
          ``(6) is developed in consultation with and subject to 
        appropriate comment by local, regional, and tribal governments 
        within the State.

                      ``Subtitle B--Grant Programs

``SEC. 731. COVERED GRANTS.

  ``Under this subtitle, a covered grant is 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.

``SEC. 732. AWARD OF COVERED GRANTS.

  ``(a) Grant Eligibility.--Beginning in fiscal year 2006, any State 
shall be eligible to apply for a covered grant.
  ``(b) Grant Criteria.--In awarding covered grants, the Secretary 
shall carry out the national preparedness goal and assist State, 
tribal, and local governments in achieving essential capabilities for 
first responders in accordance with the guidance developed under 
section 712.
  ``(c) Application for Grant.--
          ``(1) In general.--A State 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) Minimum contents of application.--The Secretary shall 
        require that each State include in its application, at a 
        minimum--
                  ``(A) a statewide preparedness strategy that has been 
                approved by the Secretary;
                  ``(B) a description of the purpose for which the 
                State seeks covered grant funds and the reasons why the 
                State needs the covered grant to meet the essential 
                capabilities for preparedness within the State;
                  ``(C) a description of how, by reference to the 
                State's statewide preparedness strategy, the allocation 
                of grant funding proposed in the application, 
                including, where applicable, the amount not passed 
                through under section 733(e)(1), would assist in 
                fulfilling the essential capabilities specified in such 
                strategy;
                  ``(D) a statement of whether a mutual aid agreement 
                applies to the use of all or any portion of the covered 
                grant funds;
                  ``(E) a capital budget showing how the State intends 
                to allocate and expend the covered grant funds; and
                  ``(F) a statement of how the State intends to meet 
                the matching requirement, if any, that applies under 
                section 733(e)(2).
          ``(3) 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 
        statewide preparedness strategy.
          ``(4) Equipment standards.--If a State proposes to upgrade or 
        purchase, with assistance provided under a covered grant, new 
        equipment or systems that do not meet or exceed any applicable 
        national voluntary consensus standard established by the 
        Secretary under section 713(a), the State shall include in the 
        application an explanation of why such equipment or systems 
        will serve the needs of the State better than equipment or 
        systems that meet or exceed such standards.
  ``(d) Deadline for Award.--The Secretary shall make final 
determinations concerning the amount to be awarded to each State in 
covered grants for a fiscal year and award the grants as soon as 
practicable, but not later than June 30 of the fiscal year.
  ``(e) Allocation.--
          ``(1) Minimum amounts.--Of the total amount made available 
        for covered grants for a fiscal year, the Secretary shall 
        award--
                  ``(A) to each State (other than a State referred to 
                in subparagraph (B)) not less than 0.55 percent; and
                  ``(B) to each of the United States Virgin Islands, 
                Guam, American Samoa, and the Commonwealth of the 
                Northern Mariana Islands not less than 0.18 percent.
          ``(2) Allocation of remaining amounts.--In allocating amounts 
        that remain available for covered grants for a fiscal year 
        after setting aside amounts required under paragraph (1), the 
        Secretary shall prioritize applications based on the degree to 
        which a grant to a State will--
                  ``(A) lessen the risk, threat, vulnerability, and 
                consequences of a major disaster or emergency, 
                including those caused by terrorist attacks, to persons 
                and critical infrastructure; and
                  ``(B) enhance or achieve the essential capabilities 
                of first responders in the State in accordance with the 
                guidance developed under section 712.
          ``(3) Basis of allocations.--
                  ``(A) Publication.--The Secretary shall publish 
                annually the basis on which funds are awarded under 
                paragraph (2).
                  ``(B) Limitation on statutory construction.--Nothing 
                in this paragraph shall be construed as requiring the 
                Secretary to disclose any classified information or 
                other sensitive information.

``SEC. 733. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

  ``(a) In General.--A covered grant may be used for--
          ``(1) purchasing commercially available equipment that 
        complies with, where applicable, national voluntary consensus 
        standards, and that facilitates interoperability, coordination, 
        and integration between emergency communications systems, 
        including--
                  ``(A) mobile vehicles that contain equipment such as 
                commercial telephone trunk lines, VHF and UHF radios, 
                patch panels, and crosspatches, among other 
                technologies and equipment; and
                  ``(B) communications system overlay software and 
                hardware that allow multiple disparate communications 
                networks to act as one network;
          ``(2) purchasing or upgrading equipment, including computer 
        software, to enhance preparedness and response;
          ``(3) conducting exercises to strengthen preparedness and 
        response;
          ``(4) training, including training for prevention or 
        detection of, preparedness for, or response to attacks 
        involving weapons of mass destruction, including training in 
        the use of equipment and computer software;
          ``(5) developing or updating response plans;
          ``(6) establishing or enhancing mechanisms for sharing 
        terrorism threat information;
          ``(7) developing 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 
        preparedness and response purposes;
          ``(8) paying the 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;
          ``(9) paying the costs of equipment (including software) 
        required to receive, transmit, handle, and store classified 
        information;
          ``(10) constructing or enhancing facilities to serve as 
        emergency operations centers;
          ``(11) developing educational curricula for first responders 
        to ensure that they are prepared for all hazards;
          ``(12) implementing 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;
          ``(13) paying of administrative expenses directly related to 
        administration of the grant, but not to exceed 3 percent of the 
        amount of the grant; and
          ``(14) other appropriate activities as determined by the 
        Secretary.
  ``(b) Prohibited Uses.--Funds provided under covered grant may not be 
used--
          ``(1) to supplant State, tribal, or local funds;
          ``(2) to construct buildings or other physical facilities, 
        except as provided in subsection (a)(10);
          ``(3) to acquire land; or
          ``(4) for any State, tribal, 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 under 
covered grant be made available for responding to emergencies in 
surrounding States, reservations and tribal lands 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 Grant Funds.--Upon request of a State, 
the Secretary may authorize the State to transfer all or part of funds 
provided under a 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 furtherance of the statewide 
preparedness strategy.
  ``(e) State Responsibilities.--
          ``(1) Pass-through.--The Secretary shall require a State to 
        obligate or otherwise make available to tribal and local 
        governments, first responders, and other local groups, to the 
        extent required under the statewide preparedness strategy 
        specified in the application for the grant, not less than 80 
        percent of the grant funds or 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, as soon as 
        practicable but not later than 60 days after the date of 
        receipt of the grant funds by the State. A State shall provide 
        funds, or resources purchased with funds, made available under 
        section 732 directly to an Indian tribe.
          ``(2) Certifications regarding distribution of grant funds to 
        local governments.--Any State that receives a covered grant 
        shall certify to the Secretary that the State has made 
        available for expenditure by tribal and local governments, 
        first responders, and other local groups the required amount of 
        grant funds pursuant to paragraph (1).
          ``(3) Report on preparedness spending.--Each State shall 
        submit a report to the Secretary not later than 60 days after 
        the end of each fiscal year. Each report shall 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 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 State's statewide preparedness 
                strategy 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 State's statewide preparedness 
                strategy remain unmet.
          ``(4) Inclusion of restricted annexes.--A State may submit to 
        the Secretary an annex to the report under paragraph (3) that 
        is subject to appropriate handling restrictions, if the State 
        believes that discussion in the report of unmet needs would 
        reveal sensitive but unclassified information.
          ``(5) Provision of reports.--The Secretary shall ensure that 
        each report under paragraph (3) is provided to the Under 
        Secretary for Emergency Preparedness and Response and the 
        Director of the Office for Domestic Preparedness.
  ``(f) Cost Sharing.--
          ``(1) In general.--The Federal share of the costs of an 
        activity carried out with a covered grant to a State awarded 
        after the 2-year period beginning on the date of the enactment 
        of this section shall not exceed 75 percent.
          ``(2) Interim rule.--
                  ``(A) In general.--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.
                  ``(B) Limitation.--This paragraph shall not apply to 
                funds used for construction or enhancement of 
                facilities for emergency operations centers.
          ``(3) In-kind matching.--Each State 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 any 
        necessary personnel overtime, contractor services, 
        administrative costs, equipment fuel and maintenance, and 
        rental space.

``SEC. 734. RESTRICTIONS ON EXISTING PROGRAMS.

  ``Determinations on the allocation, award, and use of grants made 
under the following programs shall be made in accordance with their 
authorizing statutes and without priority given to terrorism 
preparedness activities:
          ``(1) 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).
          ``(2) The Emergency Management Performance Grant program and 
        the Urban Search and Rescue Grants program authorized by title 
        VI of this Act.
          ``(3) The Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 
        7701 et seq.).

``SEC. 735. AUTHORIZATION OF APPROPRIATIONS.

  For making covered grants under this subtitle, there is authorized to 
be appropriated to the Secretary of Homeland Security $3,400,000,000 
for fiscal year 2006, and such sums as may be necessary for each of 
fiscal years 2007 through 2009.

             ``Subtitle C--Reporting and Other Requirements

``SEC. 751. REQUIRED COORDINATION.

  ``The Secretary shall ensure that there is effective and ongoing 
coordination of Federal preparedness and response efforts for major 
disasters and emergencies, including those caused by terrorist attacks, 
among the divisions of the Department, including the Emergency 
Preparedness and Response Directorate and the Office of State and Local 
Government Preparedness and Coordination.

``SEC. 752. ANNUAL REPORTS TO CONGRESS.

  ``(a) In General.--Not later than September 30, 2005, and annually 
thereafter, the Secretary shall transmit to Congress an annual report 
on the Nation's level of preparedness, including State capabilities, 
the readiness of Federal civil response assets, and the utilization of 
mutual-aid agreements.
  ``(b) Contents.--Each report shall include--
          ``(1) an assessment of how the Federal first responder 
        preparedness assistance programs support the national 
        preparedness goal;
          ``(2) an estimate of the amount of Federal, State, tribal, 
        and local expenditures required to attain the essential 
        capabilities established under section 712(a);
          ``(3) a detailed description of the amount of Federal funds 
        provided as covered grants that were directed to each State in 
        the preceding fiscal year;
          ``(4) information on the use of such grant funds by grantees; 
        and
          ``(5) a description on a nationwide and State-by-State 
        basis--
                  ``(A) the extent to which essential capabilities 
                identified in applicable statewide preparedness 
                strategy were created or enhanced as the result of the 
                expenditure of covered grant funds during the preceding 
                fiscal year; and
                  ``(B) the extent to which essential capabilities 
                identified in applicable statewide preparedness 
                strategy remain unmet.
          ``(6) Use of quantifiable performance measurement.--Each 
        report shall be based on quantifiable performance 
        measurements.''.

SEC. 5. 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. 6. 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 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. 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 it is of 
national importance that interoperable emergency communications systems 
that to the extent possible meet national voluntary consensus standards 
should be developed and promulgated as soon as practicable for use by 
the first responder community.

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. SENSE OF CONGRESS.

  It is the sense of Congress that for purposes of emergency planning--
          (1) lack of sufficient bandwidth can have detrimental 
        consequences for State and local governments during times of 
        crisis;
          (2) State and local governments should understand how 
        communication networks will perform in emergencies by analyzing 
        the experience of end users; and
          (3) State and local governments should look into expanding 
        bandwidth efficiency by using cost effective means such as 
        incorporating bandwidth allocation tools into their networks to 
        ensure proper communication is available during times of 
        crisis.

  Amend the title so as to read:

      A bill to amend the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act to prepare the United States to prevent, 
mitigate, respond to, and recover from major disasters and emergencies, 
including those caused by terrorist attacks, and for other purposes.

                       Purpose of the Legislation

    The purpose of this legislation is to better prepare the 
nation to respond to major disasters and other emergencies, 
including those caused by acts of terrorism by providing for 
the coordinated delivery of first responder funds to State, 
tribal, regional and local governments in order to achieve 
essential capabilities developed in the context of a national 
preparedness goal.

                Background and Need for the Legislation

    The concept of preparing for disasters and emergencies is 
not a new one in the United States. During the Cold War, the 
Emergency Alert System, air raid sirens, and other warning 
devices were created to alert communities to impending 
disaster. Americans were advised to store food and water, and 
there was a booming industry in emergency shelters. To support 
these efforts, communities created civil defense teams. These 
teams were never used because of attacks on the United States, 
but were instead used to deal with floods, earthquakes, fires, 
tornadoes, and other disasters. This was the birth of the 
``national preparedness'' effort in the United States.
    Over time, as the threat of the Cold War subsided and 
America began to face new challenges, the civil defense system 
changed, and began focusing its efforts to prepare American 
communities for natural disasters, accidents, and other man-
caused catastrophes. As these efforts changed on the local 
level, so did the efforts of the federal government. In 1979, 
President Jimmy Carter signed Executive Order 12148, which 
created the Federal Emergency Management Agency (FEMA). At its 
inception, FEMA was created to consolidate and coordinate the 
efforts of over 15 different agencies and departments that were 
responsible for responding to and preparing for disasters. FEMA 
was tasked with carrying out the authorities contained in the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. Sec. 5121 et. seq., as amended) (Stafford Act), 
which is an amalgamation of previous disaster acts.
    Along with the newly created Agency came a new and emerging 
concept, that communities did not need a separate preparedness 
and response system for each kind of threat. Governments 
recognized that core emergency management authorities and 
procedures must be clear, concise and established in advance of 
a disaster; improvisation during a disaster crisis does not 
work.
    Since 1976 there have been over 1,400 presidential disaster 
declarations in the United States and the Insular Territories. 
These disasters have been caused by every natural disaster, 
accident and other man-caused events imaginable, including 
terrorism. With each emergency, the emergency response 
community has drawn lessons learned, and adapted the 
preparedness and response system to incorporate these lessons. 
Over 25 years of experience has resulted in the establishment 
of a comprehensive, all-hazards emergency management system at 
the federal, state and local levels.
    An effective all-hazards approach means that a community or 
government will have an integrated and coordinated response 
system that is prepared to handle any disaster that may arise. 
While the manner in which a community responds may differ based 
on the disaster at hand, the management of these disasters is 
virtually the same. No matter what disaster was being faced, a 
community would still need to prepare its citizens for the 
possibility of a lack of municipal services such as water, 
sewer and electricity; someone would need to be in charge to 
coordinate efforts; as well as a myriad of other activities 
that must go on to support the disaster response.
    The principle of an all-hazards approach to emergency 
management is that, at its core, it is not scenario driven. It 
is based on core emergency support functions that are necessary 
to respond to any disaster, such as communications, 
transportation, and mass care. The all-hazards approach 
identifies the key resources needed in any disaster and clearly 
states who is responsible for which function.
    The federal government incorporated and adopted these 
lessons into the Federal Response Plan (FRP), which was issued 
in April 1992. The FRP addresses each aspect of how the federal 
government will respond to a disaster. By incorporating and 
consolidating various disaster response plans into one 
consolidated plan, the FRP adopts the principle of all-hazards 
emergency management. FEMA was designated as the lead federal 
agency on the development and implementation of the FRP.
    The Homeland Security Act of 2002 (P.L. 107-296) 
transferred the authorities contained in the Stafford Act, as 
well as the personnel and assets of FEMA to the newly created 
Department of Homeland Security (DHS). As a part of this 
reorganization, FEMA was merged with 21 other departments and 
agencies and the majority of FEMA's functions were placed in 
the Emergency Preparedness and Response Directorate (EP&R;).
    The all-hazards principle, which has been at the core of 
the federal preparedness and response effort led by FEMA for 
many years, has been adopted by the Administration for the new 
Department of Homeland Security, as evidenced by Homeland 
Security Presidential Directives 5 and 8, and the development 
of the National Response Plan, itself an all-hazards plan.
    Released by the White House on February 28, 2003, the 
primary purpose of Homeland Security Presidential Directive 5 
(HSPD-5) is to, ``* * * establish a single, comprehensive 
approach to domestic incident management.'' The National 
Incident Management System (NIMS) is intended to, ``provide a 
consistent nationwide approach for Federal, State, and local 
governments towork effectively and efficiently together to 
prepare for, respond to, and recover from domestic incidents, 
regardless of cause, size, or complexity.'' It is the expectation of 
DHS that the NIMS will eventually become the adopted standard for 
preparedness nationwide.
    The purpose of HSPD-8 is to establish, ``* * * policies to 
strengthen the preparedness of the United States to prevent and 
respond to threatened or actual domestic terrorist attacks, 
major disasters, and other emergencies by requiring a national 
domestic all-hazards preparedness goal, establishing mechanisms 
for improved delivery of Federal preparedness assistance to 
State and local governments, and outlining actions to 
strengthen preparedness capabilities of Federal, State, and 
local entities.''
    The all-hazards principle is also at the core of the 
National Response Plan (NRP). The NRP is in its final stages of 
drafting, and will be released sometime in the fall of 2004. 
HSPD-5 requires the National Response Plan to ``integrate 
Federal Government domestic prevention, preparedness, response, 
and recovery plans into one all-discipline, all-hazards plan.'' 
To that end, the NRP incorporates the Federal Response Plan, 
Domestic Terrorism Concept of Operations Plan, Interim National 
Response Plan, Federal Radiological Emergency Response Plan, 
the Spills Concept of Operations Plan, as well as several other 
plans.
    HSPD-5, HSPD-8, and the NRP each reinforce the notion of 
the all-hazards principle as the guiding principle for the 
federal preparedness and response effort. Adopting this 
principle in all areas of the federal effort is critical to 
ensuring the successful transition of this principle into 
policy. Enacting legislation that undermines the concept of 
all-hazards preparedness not only hampers the efforts of the 
experts to implement the best policy for the government, but 
will make it that much more difficult for the nation to prepare 
for the next disaster.
    During the 106th and 107th Congresses, the Committee on 
Transportation and Infrastructure held a number of hearings, 
received testimony, and introduced and moved legislation on the 
issue of federal preparedness programs. A key finding in each 
of these steps was the uncoordinated and duplicative manner in 
which terrorism preparedness programs were run. As a result, 
the Committee developed H.R. 4210, the Preparedness Against 
Terrorism Act of 1999, which was unanimously passed by the 
House on August 25, 2000, but never enacted. In the 107th 
Congress, the Subcommittee again reported the Preparedness 
Against Terrorism Act, re-designated as H.R. 525. This version 
was reported out of Subcommittee, but further action was 
stalled due to the terror attacks of September 11th and the 
development of the Department of Homeland Security.
    The amendment adopted by the Transportation and 
Infrastructure Committee reflected in this report, builds upon 
this history, and makes important changes to the way that first 
responder preparedness funds are delivered to State 
governments, and through them, to tribal, regional and local 
governments. It reinforces the notion that preparedness money 
should be spent on actually preparing communities for 
disasters. It requires that grant funds be spent according to a 
comprehensive all-hazards preparedness strategy that is based 
on adopted standards for training, equipment, and response; 
addresses the needs of all potentially affected communities; 
and is developed in coordination with government and non-
governmental entities responsible for response.
    Further, the Committee's amendment also requires that the 
Department of Homeland Security provide States with guidance on 
essential capabilities and develop voluntary consensus 
standards for first responder equipment and training. These 
provisions ensure that States' planning and preparation are 
done in accordance with measurable objectives that the 
Committee believes will further strengthen preparedness.
    The terrorists we face today are unpredictable. The 
government cannot predict with any certainty where, when or in 
which form the next terrorist attack will take place. The 
Committee believes that because of the inherent uncertainty 
surrounding a terrorist attack, each State must be able to 
adequately train and equip its emergency response providers and 
prepare its citizens for such an attack. Accordingly, the 
Committee's amendment provides a percentage of the overall 
funding for preparedness to each State.
    If Congress were to exclusively focus resources on select 
regions, it would leave the remaining areas vulnerable to 
attack. Yet, history has shown that terrorists strike in cities 
large and small, and use a variety of weapons and tactics. The 
amendment adopted by the Transportation and Infrastructure 
Committee prepares all of America for each of these scenarios. 
It promotes an all-hazards approach to first responder 
preparedness, which, according to the experts, is the best way 
to prepare for terrorism. It provides the necessary flexibility 
to deal with any hazard that may arise, while at the same time 
ensuring that there is sufficient planning and preparation.
    By adopting an allocation formula that allows for a minimum 
amount to be made available to each state, with the remainder 
allocated on a risk assessment basis as determined by the 
Secretary, the Committee's amendment addresses both the needs 
of all communities to attain a minimum level of preparedness 
while at the same time giving the Secretary sufficient 
flexibility to meet the needs of communities with unique needs. 
This is the appropriate way for the federal government to meet 
the nation's needs.

                       Summary of the Legislation


Section 1. Short title

    Designates the bill as the Faster and Smarter Funding for 
First Responders Act of 2004.

Section 2. Findings

    Declares the findings by Congress that underlie the bill 
and provides guidance to the Administration and stakeholders 
about Congressional intent. These findings recognize the fact 
that an all-hazards preparedness strategy, which is the policy 
of the Administration and emergency managers nationwide, is the 
best way to prevent, prepare for, mitigate against, respond to, 
and recover from major disasters and emergencies, including 
those caused by terrorist attacks.

Section 3. Definitions

    This section amends the definitions of terms used in 
existing law to reflect the changing climate of first response. 
The definition for ``major disaster'' as used in the Stafford 
Act is amended to incorporate terrorism and the effects of 
terrorism. This change clarifies the authority of the President 
to declare a Stafford Act disaster in the case of a terrorist 
attack using a non-conventional weapon of mass destruction such 
as a chemical, biological, or radiological device. This section 
also amends the Homeland Security Act to include fire personnel 
in the definition of ``emergency response provider.'' This 
change reflects the current organization of the Department in 
which the Office for State and Local Government Coordination 
and Preparedness (OSLGCP) provides funds to fire personnel as 
well as police officers.

Section 4. National Preparedness and Funding for First Responders

    This section amends the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act to include a new Title VII 
entitled ``National Preparedness and Funding for First 
Responders.'' The Committee believes that it is appropriate to 
place these authorities within the Stafford Act, as that is the 
primary source of the Department's authority to provide 
assistance in the event of a major disaster or other emergency, 
including those caused by a terrorist attack.
    This new title provides for the revision of the manner in 
which the Department provides funding to first responders; 
clarifies the purpose of funding for first responders; defines 
key terms; establishes a national preparedness goal; requires 
the establishment of essential capabilities for first 
responders; requires the establishment of national standards 
for equipment and training; requires a statewide preparedness 
strategy; addresses what grants are covered by the legislation 
and how those funds are awarded; clarifies how those funds may 
be used; provides accountability for the department and grant 
recipients; restricts changes to certain existing programs; and 
requires reporting by the Department and grant recipients.

   TITLE VII--NATIONAL PREPAREDNESS AND FUNDING FOR FIRST RESPONDERS


Section 701. Purposes

    This section declares the purposes of the new title. In the 
wake of the September 11th attacks, billions of dollars in new 
federal funding was made available for first responder 
preparedness. In the haste to make this funding available, very 
little guidance was provided by the federal government as to 
how these funds should be spent; for there were no provisions 
to ensure that the funds would support well-developed 
preparedness strategies, and no provisions to ensure that they 
supported coordinated efforts. Additionally, there was no means 
of ensuring accountability or timely delivery of the funds. The 
purpose of this title is to provide for these provisions.

Section 702. Definitions

    This section provides definitions for key terms and phrases 
used throughout the legislation.
    ``Covered grant'' is defined to mean any grant to which 
subtitle (b) applies under section 731, which addresses the 
manner in which grant funds are provided. This term includes 
the State Homeland Security Grant Program, Urban Area Security 
Initiative, and Citizen Corps. This term does not include the 
fire grant or Emergency Management Preparedness Grant (EMPG) 
programs.
    ``Department'' refers to the Department of Homeland 
Security.
    ``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) of 
the Homeland Security Act of 2002 (6 U.S.C. 121(d)(7)).
    ``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 major 
disasters and emergencies, including those caused by terrorist 
attacks, consistent with established practices.
    ``First responder'' refers to the definition for 
``emergency response provider'' in the Homeland Security Act of 
2002 (6 U.S.C. 101(6)) as amended by this Act.
    ``Hazard'' means an emergency or disaster resulting from a 
natural disaster or an accidental or man-caused event, 
including a terrorist attack. The Committee intends these terms 
to refer to disasters or emergencies that are declared pursuant 
to the authorities of the Stafford Act.
    ``National preparedness goal'' means the national domestic 
all-hazards preparedness goal developed under section 711.
    ``Prevention'' means activities undertaken by the first 
responder community during the early stages of an incident to 
reduce the likelihood or consequences of threatened or actual 
terrorist attacks. The term does not include more general and 
broader efforts to deter, disrupt, or thwart terrorism. The 
Committee also does not intend this term to include efforts 
commonly thought of as natural disaster mitigation efforts.
    ``Secretary'' refers to the Secretary of Homeland Security.
    ``Statewide preparedness strategy'' means a statewide 
comprehensive all-hazards preparedness strategy prepared under 
section 714.
    ``Weapon of mass destruction'' has the meaning such term 
has under section 1403 of the Defense Against Weapons of Mass 
Destruction Act of 1996 (50 U.S.C. 2302).

Subtitle A--Preparedness Goals, Essential Capabilities, Standards, and 
                               Strategies


Section 711. National preparedness goal

    This section requires the development of a national 
domestic all-hazards preparedness goal by February 28, 2005. 
The goal must include readiness priorities and targets, metrics 
and measures and an assessment system; and be consistent with 
both the National Response Plan and the National Incident 
Management System. Federal departments and agencies are 
required to work to achieve the national preparedness goal by 
providing for effective, efficient, and timely delivery of 
Federal preparedness assistance to State, tribal and local 
governments and to support efforts to ensure first responder 
preparedness.

Section 712. Essential capabilities for first responders

    This section requires the Secretary to establish guidance 
on essential capabilities for State and local government 
preparedness for major disasters and emergencies including 
those caused by terrorism. This guidance is to be provided 
promptly to States and to Congress, and be available to local 
governments as necessary and appropriate. The guidance must 
meet three main objectives, specificity, flexibility, and 
measurability, which will ensure it is usable by its 
recipients. In establishing the guidance, the Secretary must 
consider risk, threat, vulnerability, and consequences with 
respect to the nation's population and critical infrastructure.

Section 713. National standards for first responder equipment and 
        training.

    This section requires the Secretary to develop, promulgate 
and update as necessary national voluntary consensus standards 
for first responder equipment. These standards are critical to 
ensuring that the funds provided for equipment go towards the 
purchase of items that meet the needs of existing and emerging 
threats. They must be consistent, when practicable, with 
existing standards, be updated to meet new threats, utilize 
where possible existing federal certifications, and be 
developed to maximize usability and protect the safety and 
health of first responders. The Secretary is required to 
consider a variety of categories of equipment that meet 
specific needs of first responders.
    This section also requires the Secretary to support the 
development of, promulgate and regularly update national 
voluntary consensus standards for first responder training to 
achieve required levels of preparedness. The standards shall 
focus on those areas where the Secretary has identified 
significant need. As with the standards for equipment, the 
Secretary is required to consider a number of specific training 
programs focusing on skills necessary to meet the specific 
needs of first responders. In developing these standards, the 
Secretary is required to consult with relevant public and 
private sector groups.
    The Committee deleted those portions of H.R. 3266 as 
reported by the SCHS that created a Task Force on Essential 
Capabilities for First Responders. The Committee believed that 
this language was duplicative and burdensome on the Department 
considering the Department already has the authority to create 
such a task force, already has several formats for similar 
consultation, and has shown its willingness to include first 
responders in its decision making process on a variety of 
issues. Further, the Committee believes that imposing such a 
burdensome process would delay the development of these 
standards beyond the Committee's imposed deadline of September 
30, 2005.
    It is the Committee's expectation that in developing the 
standards under this Section, the Secretary will consult with 
the broadest representation of interested organizations 
possible that represent all necessary disciplines to building a 
comprehensive preparedness and response system.

Section 714. Statewide preparedness strategies

    This section identifies the requirements of preparedness 
strategies to be developed by the States as a precondition for 
receipt of federal preparednessdollars. These new requirements, 
though included in the new title, will not be implemented until the 
next round of planning required by the Department. These preparedness 
strategies must be consistent with State response plans; identify the 
extent to which the State has achieved the essential capabilities that 
apply to the State; demonstrate the additional needs of the State; 
include the prioritization of those needs; describe how the State 
intends to address those needs with funds provided; and be developed in 
consultation with regional, local and tribal governments.

                       Subtitle B--Grant Programs


Section 731. Covered grants

    This section addresses the question of which grants 
currently being issued by the Department are covered by this 
legislation. The requirements of the legislation only cover 
those grants issued by the Department to States under the State 
Homeland Security Grant Program and Urban Area Security 
Initiative. These requirements do not apply to the fire grants, 
Emergency Management Planning and Assistance Grants, and grants 
not issued by the Department.

Section 732. Award of covered grants

    This section details the manner in which grants are applied 
for and distributed. Only States may apply for the grants, 
which are distributed to carry out the national preparedness 
goal and assist States in achieving essential capabilities. 
This section also outlines key grant application criteria, 
including: a statewide preparedness strategy, what the grant is 
intended to achieve, whether the funds will be used in a mutual 
aid agreement, how the grants will be used, and how the State 
will meet any matching requirement. The grant must be used in a 
manner consistent with a State preparedness strategy. The grant 
application must include a description of how and to what 
extent the grant will be used in accordance with national 
standards for equipment and training, or if not, why not. This 
section becomes applicable with the FY 2006 grant cycle.
    The Secretary must make a final determination concerning 
the amount to be awarded as soon as practicable, but not later 
than June 30 of each fiscal year. Doing so will provide 
necessary advance notice to the States to achieve necessary 
planning.
    A key difference between this section and the similar 
section in the SCHS amendment to H.R. 3266 is the absence of a 
time limitation on the Department and on the State for how soon 
the grants must be awarded after an application is received. 
The Committee believes that these deadlines are not necessary 
to speed up the process, nor do they work to ensure that the 
funds are distributed in a manner that best suits the 
communities impacted, as they do not allow for careful 
consideration of a grant application and may hamper the States' 
ability to effectively plan. States are directed to deliver an 
appropriate amount of funding to tribal, regional and local 
governments in a timely manner by provisions in Section 733.
    Finally, this section addresses the issue of how the grants 
are to be allocated. In a significant departure from the SCHS 
amendment to HR 3266, this amendment would have the grant funds 
allocated, in part, according to a minimum to each State 
(including the District of Columbia and Puerto Rico) of 0.55% 
of the total amount each fiscal year and 0.18%, to Guam, the 
Virgin Islands, American Samoa, and the Commonwealth of the 
Northern Mariana Islands. These percentages reflect the average 
amount allocated to each recipient during fiscal years 2003 and 
2004 under the combined SHSGP and UASI programs. It is the 
Committee's intention to maintain the approximate levels of 
funding under the minimum percentage for each recipient.
    The remainder of the funds would be allocated based on risk 
of major disaster and emergencies, including those caused by 
terrorism, and the degree to which the grants would enhance or 
achieve essential capabilities. The discretion of which hazards 
are considered, how they are prioritized, and how these funds 
are allocated, remains with the Secretary. It is the 
Committee's expectation that the Secretary may prioritize these 
funds based on the risk of terrorism. If the Secretary 
prioritizes the allocation of the remainder of funds based on 
the risk of terrorism, it is the Committee's expectation that 
such allocation will be based on a comprehensive risk 
assessment that takes into consideration all relevant 
population and infrastructure factors, and is based on relevant 
intelligence and law enforcement information.

Section 733. Use of funds

    This section generally lists the eligible uses, and 
ineligible uses for funds received under this title. There are 
limited differences with the SCHS amendment, the most notable 
being that funds under this amendment are available for the 
construction or improvement of emergency operations centers, 
whereas under the SCHS amendment, no construction is allowed. 
Under this section, funds may be used to support first 
responder preparedness activities; additionally, funds may be 
used on a limited basis for personnel costs, including 
training, travel to and from training, and costs related to an 
elevation of the threat alert level.
    This section also retains many of the requirements imposed 
on States by the SCHS amendment; however, it extends the period 
in which a State is required to pass funds through to local 
governments from 45 to 60 days, and does away with penalties 
imposed on States for failing to meet that deadline. It also 
requires that States distribute funds and resources directly to 
Indian tribes. This amendment allows for a 100% cost-share 
during the first two years and 75%thereafter. With the above-
mentioned exception, a prohibition on construction is retained.
    It is the Committee's expectation that should an Indian 
tribe be unable or unwilling to administer directly the funds 
or resources allocated to it by the State, they would be 
allowed to subgrant such funds or resources to another eligible 
recipient, such as a local or regional governmental entity.

Section 734. Restrictions on existing programs

    This section restricts how the funds from existing programs 
may be used. Specifically, fire grant funds and EMPG funds must 
be used for their original purpose and may not be distributed 
with a prioritization for terrorism. These funds were created 
before the terrorist attacks of September 11th to meet the 
specific needs of State and local governments, and should be 
allowed to continue to meet those needs.

Section 735. Authorization of appropriations

    This section authorizes appropriations for this subtitle in 
the amount of $3.4 billion for FY 2006 and such sums as may be 
necessary for fiscal years 2007 through 2009.

              Subtitle C--Reporting and Other Requirements


Section 751. Required coordination

    This section requires that the Secretary ensure the ongoing 
and effective coordination of preparedness and response efforts 
within the Department, specifically between the Emergency 
Preparedness and Response Directorate (EP&R;) and OSLGCP. With 
the division of the preparedness dollars and response policy, 
the Committee is concerned that a schism may develop between 
the two groups that may lead to inefficiencies and lack of 
coordination.

Section 752. Annual report to Congress

    This section requires an annual, detailed report to 
Congress on the Nation's level of preparedness, including State 
capabilities, the readiness of Federal civil response assets, 
and the utilization of mutual aid. The report must also include 
an assessment of how the Federal first responder preparedness 
assistance programs support the national preparedness goal.

Section 5. Modification of Homeland Security Advisory System

    This section directs the Secretary to revise the Homeland 
Security Advisory System 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-specific warnings issued during the 
preceding fiscal year.

Section 6. Coordination of industry efforts

    This section adds to the duties of the Special Assistant to 
the Secretary for private sector liaison the responsibility to 
coordinate industry efforts to identify private sector 
resources that could effectively supplement Federal, State, and 
local government efforts to prevent or respond to terrorist 
attacks.

Section 7. Sense of Congress regarding interoperable communications

    This section states that it is the Sense of the Congress 
that interoperable emergency communications systems that meet 
national voluntary consensus standards should be developed and 
promulgated as soon as practicable for use by first responders.

Section 8. Sense of Congress regarding Citizen Corps Councils

    This section 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

    This section 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. Sense of Congress regarding bandwidth allocation

    This section states that it is the Sense of Congress that 
for the purposes of emergency planning, a lack of sufficient 
bandwidth can have detrimental consequences for State and local 
governments during time of crisis; that State and local 
governments should better understand how communication networks 
will perform in emergencies by analyzing the experience of end 
users; and, State and local governments should look into 
expanding bandwidth efficiency.

            Legislative History and Committee Consideration

    On October 8, 2003, Representative Chris Cox introduced 
H.R. 3266, the ``Faster and Smarter Funding for First 
Responders Act of 2003.'' The legislationwas referred to the 
Select Committee on Homeland Security. The legislation was also 
referred to the Committees on Transportation and Infrastructure, 
Science, Judiciary, and Energy and Commerce for a period to be 
subsequently determined by the Speaker. On March 17, 2004, the Select 
Committee on Homeland Security (SCHS) ordered H.R. 3266, as amended, 
reported to the House. On April 2, 2004, the referral to the Committee 
on Transportation and Infrastructure was time limited until June 7, 
2004. On June 3, 2004, the Committee on Transportation and 
Infrastructure was granted an extension until June 14, 2004. On June 
14, 2004, the Committee on Transportation and Infrastructure was 
granted an extension until June 21, 2004.
    On March 18, 2004 the Subcommittee on Economic Development, 
Public Buildings and Emergency Management (the Subcommittee) 
held a hearing on the FY 2005 Budget Request for the Department 
of Homeland Security's Emergency Preparedness and Response 
Directorate (EP&R;), the Office of Domestic Preparedness (ODP), 
and First Responder Funding. The hearing also explored how the 
Administration's budget request interacts with its policy 
directives as well as how these policy directives serve to 
prepare the Nation for all the hazards that it faces. The 
Subcommittee heard from Michael Brown, Undersecretary for 
Emergency Preparedness and Response at the Department of 
Homeland Security. This hearing explored how the budget request 
by the Administration reflects its policy to pursue an all-
hazards preparedness plan at the federal level. Mr. Brown 
assured the Subcommittee that the Department is pursuing an 
all-hazards strategy, and explained how the budget request 
furthers that policy by providing funding to terrorism 
preparedness in a manner that supports the all-hazards 
principle.
    On May 14, 2004, the Subcommittee held a hearing entitled, 
``How to Best Prepare for Acts of Terror: National Preparedness 
and Funding for First Responders.'' At this hearing, the 
Subcommittee heard from William Jenkins, Director of the 
Homeland Security and Justice Division at the General 
Accounting Office; Andrew Mitchell, Deputy Director of the 
Office of Domestic Preparedness at the Department of Homeland 
Security; and George Foresman, Assistant to the Governor for 
Commonwealth Preparedness for the Commonwealth of Virginia. At 
this hearing, the Subcommittee discussed the delay in funding 
for first responders and further information on the choice 
between an all-hazard or terrorism specific preparedness and 
response system. Andrew Mitchell and George Foresman both 
supported the implementation of an all-hazards system as being 
the preferred means of protecting America.
    On June 1, 2004, the Subcommittee met in open session to 
consider H.R. 3266. An amendment in the nature of a substitute 
offered by Mr. LaTourette was adopted by voice vote, with a 
quorum present. A motion by Ms. Norton to order H.R. 3266, as 
amended, favorably reported to the Full Committee was agreed to 
unanimously, by voice vote with a quorum present. There were no 
recorded votes taken during Subcommittee consideration of H.R. 
3266.
    On June 2, 2004, the Full Committee met in open session to 
consider H.R. 3266, as amended by the Subcommittee. Two 
amendments offered by Mr. Nadler of New York were offered, 
discussed, and withdrawn. An amendment by Mr. Weiner of New 
York was offered and withdrawn. An amendment authored by Mr. 
Baird of Washington and offered by Mr. DeFazio of Oregon, which 
adds a Sense of Congress on the importance of expanding 
bandwidth efficiency to emergency planning was adopted by 
unanimous consent. A motion by Mr. LaTourette to order H.R. 
3266, as amended, favorably reported to the House was agreed to 
unanimously, by voice vote with a quorum present. There were no 
recorded votes taken during Committee consideration of H.R. 
3266.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each rollcall vote on a motion to 
report and on any amendment offered to the measure or matter, 
and the names of those members voting for and against. There 
were no recorded votes taken in conjunction with ordering H.R. 
3266, as amended, favorably reported to the House.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          Cost of Legislation

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Compliance with House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
performance goals and objective of this legislation are to 
improve the manner in which first responder preparedness 
funding is delivered to States, and through States to tribal, 
regional, and local governments; to improve oversight by 
requiring reporting by grant recipients to the Department on 
the use of funds and by the Department to Congress on the 
overall preparedness of the Nation.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
3266 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 14, 2004.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
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 Julie 
Middleton.
            Sincerely,
                                         Elizabeth Robinson
                               (For 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 grant programs for 
first responders established after September 11, 2001--the 
grant programs for State Homeland Security and the Urban Area 
Security Initiative.
    The bill also would make the grant funds available to 
states to plan for natural disasters as well as terrorism 
events. H.R. 3266 would authorize the appropriation of $3.4 
billion in 2006 for first responder grants, and such sums as is 
necessary over the 2007-2009 period. Assuming appropriation of 
the authorized amount, in 2006 and adjusting that amount for 
anticipated inflation over the 2007-2009 period, CBO estimates 
that implementing H.R. 3266 would cost $8.4 billion over the 
2005-2009 period and over $5.5 billion 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 for 2006 and similar amounts for 
2007 through 2009 are appropriated, implementing the bill would 
increase funding for existing aid programs while changing 
conditions for receiving those funds; any costs incurred by 
state, local, or tribal governments would be voluntary.
    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 APPROPRIATION

Estimated Authorization Level a..........................          *      3,400      3,481      3,571      3,663
Estimated Outlays........................................          *        680      1,716      2,677      3,322
----------------------------------------------------------------------------------------------------------------
a The 2007-2009 levels assume the grant program continues at the 2006 level, adjusted for anticipated inflation.
  If grants after 2006 were not increased for inflation, the four-year total would be $13.6 billion instead of
  $14.1 billion. Without inflation adjustments, outlays would be $200 million lower than the amounts shown in
  the table for the 2006-2009 period.

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 authorize the appropriation of $3.4 billion in 
fiscal year 2006 and such sums as necessary over the 2007-2009 
period. The bill also would make the grant funds available to 
states to plan for natural disasters as well as terrorism 
events.
    For this estimate, CBO assumes that H.R. 3266 will be 
enacted near the start of fiscal year 2005 and that the 
authorized amount will be appropriated for 2006 and that the 
2007-2009 funding levels will be appropriated for 2006 level, 
adjusted for anticipated inflation. For this estimate, CBO 
assumes that each state would need to update its homeland 
security plan to reflect the state's preparedness for natural 
hazards and terrorism incidents. 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 $8.4 billion over the 2006-2009 period and 
about $5.5 billion after 2009.
    Under the State Homeland Security program, DHS distributes 
three-quarters of one percent of the amount appropriated for 
the program to each state and one-quarter of one percent to the 
territories. The remaining funds are distributed to states 
based on population. The Urban Area Security Initiative program 
provides funding to high-threat areas of the country. Under 
H.R. 3266, DHS would consolidate these two existing programs 
and distribute 0.55 percent of the grants to each state and 
0.18 percent to U.S. territories. The rest of the funding would 
be distributed based on threats, vulnerabilities, and risk 
assessments for each state and locality.
    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 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 these 
funds are allocated by decreasing the base allocation to each 
state and awarding the remaining funds according to potential 
disaster risks. 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 by $0.3 billion over appropriations for 2004. Finally, 
this bill would expand eligible activities to include preparing 
for natural disasters, adding personnel during heightened 
threat alerts, and training first responders. Any costs 
incurred by state, local, or tribal governments as a result of 
these changes to the grant programs would be incurred 
voluntarily.
    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 also would 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 of those bills would authorize the 
appropriation of different grant amounts for fist 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. On June 8, 2004, CBO 
transmitted a cost estimate for H.R. 3266 as ordered reported 
by the House Committee on Energy and Commerce on June 3, 2004. 
The versions of the legislation approved by those two 
committees are similar, and the cost estimates are identical. 
The version approved by the House Committee on Transportation 
and Infrastructure is similar but would authorize the 
appropriation of funds over the 2006-2009 period, while the 
other versions of H.R. 3266 would authorize funding only for 
2006.
    Estimate prepared by: Federal Costs: Julie Middleton; 
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.

                   Constitutional Authority Statement

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       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. (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local or 
tribal law. The Committee states that H.R. 3266 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

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

                Applicability to the 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. (Public Law 
104-1).

         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):

ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT

           *       *       *       *       *       *       *



TITLE I--FINDINGS, DECLARATIONS, AND DEFINITIONS

           *       *       *       *       *       *       *



                              DEFINITIONS

  Sec. 102. As used in this Act--
          (1) * * *
          [(2) Major disaster.--``Major disaster'' means any 
        natural catastrophe (including any hurricane, tornado, 
        storm, high water, winddriven water, tidal wave, 
        tsunami, earthquake, volcanic eruption, landslide, 
        mudslide, snowstorm, or drought), or, regardless of 
        cause, any fire, flood, or explosion, in any part of 
        the United States, which in the determination of the 
        President causes damage of sufficient severity and 
        magnitude to warrant major disaster assistance under 
        this Act to supplement the efforts and available 
        resources of States, local governments, and disaster 
        relief organizations in alleviating the damage, loss, 
        hardship, or suffering caused thereby.]
          (2) Major disaster.--The term ``major disaster'' 
        means any natural catastrophe (including any hurricane, 
        tornado, storm, high water, winddriven water, tidal 
        wave, tsunami, earthquake, volcanic eruption, 
        landslide, mudslide, snowstorm, or drought), or, 
        regardless of cause, any fire, flood, explosion, act of 
        terrorism, or other catastrophic event in any part of 
        the United States, which in the determination of the 
        President causes damage of sufficient severity and 
        magnitude to warrant major disaster assistance under 
        this Act to supplement the efforts and available 
        resources of States, local governments, and disaster 
        relief organizations in alleviating the damage, loss, 
        hardship, or suffering caused thereby.

           *       *       *       *       *       *       *


   TITLE VII--NATIONAL PREPAREDNESS AND FUNDING FOR FIRST RESPONDERS

SEC. 701. PURPOSES.

  The purposes of this title are--
          (1) to prepare the United States to prevent, 
        mitigate, respond to, and recover from major disasters 
        and emergencies, including those caused by terrorist 
        attacks;
          (2) to ensure federally funded preparedness efforts 
        are consistent with an all-hazards preparedness 
        strategy;
          (3) to ensure effective coordination of Federal 
        preparedness efforts; and
          (4) to provide preparedness assistance to State and 
        local authorities in a timely manner and provide for 
        accountability with respect to the use of such 
        assistance.

SEC. 702. DEFINITIONS.

  In this title, the following definitions apply:
          (1) Covered grant.--The term ``covered grant'' means 
        a grant referred to in section 731.
          (2) Department.--The term ``Department'' means the 
        Department of Homeland Security.
          (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) of the Homeland 
        Security Act of 2002 (6 U.S.C. 121(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 major disasters and emergencies, including 
        those caused by terrorist attacks, consistent with 
        established practices.
          (5) First responder.--The term ``first responder'' 
        has the meaning such term has under section 2(6) of the 
        Homeland Security Act of 2002 (Public Law 107-296; 6 
        U.S.C. 101(6)).
          (6) Hazard.--The term ``hazard'' means an emergency 
        or disaster resulting from--
                  (A) a natural disaster; or
                  (B) an accidental or man-caused event, 
                including a domestic terrorist attack.
          (7) National preparedness goal.--The term ``national 
        preparedness goal'' means the national domestic all-
        hazards preparedness goal developed under section 711.
          (8) Prevention.--The term ``prevention'' means 
        activities undertaken by the first responder community 
        during the early stages of an incident to reduce the 
        likelihood or consequences of threatened or actual 
        terrorist attacks. The term does not include more 
        general and broader efforts to deter, disrupt, or 
        thwart terrorism.
          (9) Secretary.--The term ``Secretary'' means the 
        Secretary of Homeland Security.
          (10) Statewide preparedness strategy.--The term 
        ``statewide preparedness strategy'' means a statewide 
        comprehensive all-hazards preparedness strategy 
        prepared under section 714.
          (11) Weapon of mass destruction.--The term ``weapon 
        of mass destruction'' has the meaning such term has 
        under section 1403 of the Defense Against Weapons of 
        Mass Destruction Act of 1996 (50 U.S.C. 2302).

Subtitle A--Preparedness Goals, Essential Capabilities, Standards, and 
                               Strategies

SEC. 711. NATIONAL PREPAREDNESS GOAL.

  (a) Development.--To help ensure the preparedness of the 
Nation to prevent, respond to, and recover from major disasters 
and emergencies, including those caused by terrorist attacks, 
the Secretary, in coordination with the heads of other 
appropriate Federal departments and agencies and in 
consultation with State and local governments, shall develop a 
national domestic all-hazards preparedness goal not later than 
February 28, 2005.
  (b) Elements.--
          (1) Readiness priorities and targets.--The national 
        preparedness goal shall establish measurable readiness 
        priorities and targets that appropriately balance the 
        potential threat and magnitude of major disasters and 
        emergencies, including those caused by terrorist 
        attacks, with the resources required to prevent, 
        respond to, and recover from such disasters and 
        emergencies.
          (2) Readiness metrics and measures; assessment 
        system.--The national preparedness goal shall include--
                  (A) readiness metrics and measures, including 
                standards for preparedness assessments and 
                strategies; and
                  (B) a system for assessing the Nation's 
                overall preparedness to respond to major 
                disasters and emergencies, including those 
                caused by terrorist attacks.
          (3) National response plan and national incident 
        management system.--The national preparedness goal, to 
        the greatest extent practicable, shall be consistent 
        with the National Response Plan and National Incident 
        Management System.
  (c) Activities of Federal Departments and Agencies.--Federal 
departments and agencies shall work to achieve the national 
preparedness goal by--
          (1) providing for effective, efficient, and timely 
        delivery of Federal preparedness assistance to State 
        and local governments; and
          (2) supporting efforts to ensure first responders are 
        prepared to respond to major disasters and emergencies, 
        including those caused by terrorist attacks.

SEC. 712. ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

  (a) Establishment of Guidance on Essential Capabilities.--
          (1) In general.--Not later than February 28, 2005, 
        the Secretary shall establish guidance that clearly 
        defines the essential capabilities for State and local 
        government preparedness for major disasters and 
        emergencies, including those caused by terrorist 
        attacks.
          (2) Provision of essential capabilities.--The 
        Secretary shall ensure that the guidance is provided 
        promptly to the States and to Congress. The States 
        shall make the guidance available as necessary and 
        appropriate to local governments within their 
        jurisdictions.
  (b) Objectives.--The Secretary shall ensure that the guidance 
established under subsection (a)(1) meets the following 
objectives:
          (1) Specificity.--The guidance 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 national 
        preparedness goals.
          (2) Flexibility.--The guidance shall be sufficiently 
        flexible to allow State and local government officials 
        to set priorities based on particular needs, while 
        achieving nationally determined preparedness levels 
        within a specified time period.
          (3) Measurability.--The guidance shall be designed to 
        enable measurement of progress towards specific 
        preparedness levels.
  (c) Threats To Be Considered.--
          (1) In general.--In establishing the guidance under 
        subsection (a)(1), the Secretary specifically shall 
        consider the variables of risk, threat, vulnerability, 
        and consequences with respect to the Nation's 
        population (including transient commuting and tourist 
        populations) and critical infrastructure.
          (2) Critical infrastructure sectors.--In carrying out 
        paragraph (1), the Secretary specifically shall 
        consider risks to 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) Information and telecommunications 
                networks.
                  (J) Postal and shipping.
                  (K) Public health.
                  (L) Transportation.
                  (M) Water.
          (3) Consideration of additional threats.--In carrying 
        out paragraph (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. 713. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
                    TRAINING.

  (a) Equipment Standards.--
          (1) In general.--The Secretary shall develop, 
        promulgate, and update as necessary national voluntary 
        consensus standards for first responder equipment 
        intended for use in the field. Such standards--
                  (A) shall support nationwide interoperability 
                and other capabilities consistent with the 
                national preparedness goal, including the 
                safety and health of first responders;
                  (B) shall be, to the maximum extent 
                practicable, consistent with any existing 
                voluntary consensus standards;
                  (C) shall, to the maximum extent practicable, 
                utilize technologies already certified by other 
                departments and agencies of the United States;
                  (D) shall take into account, as appropriate, 
                threats that may not have been contemplated 
                when such existing standards were developed; 
                and
                  (E) 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.
          (3) Deadline.--The Secretary shall promulgate initial 
        standards under this subsection not later than 
        September 30, 2005.
  (b) Training Standards.--
          (1) In general.--The Secretary 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 preparedness as quickly as 
        practicable. Such standards shall give priority to 
        providing training in those areas where the Secretary 
        has identified significant need, including training--
                  (A) to prevent, prepare for, respond to, and 
                mitigate threats from chemical, biological, and 
                radiological materials and explosive devices 
                capable of inflicting significant human 
                casualties; and
                  (B) to 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.
          (3) Deadline.--The Secretary shall promulgate initial 
        standards under this subsection not later than 
        September 30, 2005.
  (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.

SEC. 714. STATEWIDE PREPAREDNESS STRATEGIES.

  As a condition for receipt of a covered grant under subtitle 
B after September 30, 2005, the Secretary shall require that a 
State develop a statewide comprehensive all-hazards 
preparedness strategy that--
          (1) is consistent with the national preparedness goal 
        and, as necessary, the State response plan;
          (2) demonstrates the extent to which the State has 
        achieved the essential capabilities that apply to the 
        State;
          (3) demonstrates the additional needs of the State 
        necessary to achieve the essential capabilities that 
        apply to the State;
          (4) includes a prioritization of such additional 
        needs based on risk, threat, vulnerability, and 
        consequence assessment factors applicable to the State;
          (5) describes how the State intends--
                  (A) to address such additional needs at the 
                city, county, tribal, regional, State, and 
                interstate level;
                  (B) to use all Federal, State, and local 
                resources available for the purpose of 
                addressing such additional needs; and
                  (C) to give particular emphasis to regional 
                planning and cooperation, including the 
                activities of multi-jurisdictional planning 
                agencies governed by local officials, both 
                within its jurisdictional borders and with 
                neighboring States; and
          (6) is developed in consultation with and subject to 
        appropriate comment by local, regional, and tribal 
        governments within the State.

                       Subtitle B--Grant Programs

SEC. 731. COVERED GRANTS.

  Under this subtitle, a covered grant is 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.

SEC. 732. AWARD OF COVERED GRANTS.

  (a) Grant Eligibility.--Beginning in fiscal year 2006, any 
State shall be eligible to apply for a covered grant.
  (b) Grant Criteria.--In awarding covered grants, the 
Secretary shall carry out the national preparedness goal and 
assist State, tribal, and local governments in achieving 
essential capabilities for first responders in accordance with 
the guidance developed under section 712.
  (c) Application for Grant.--
          (1) In general.--A State 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) Minimum contents of application.--The Secretary 
        shall require that each State include in its 
        application, at a minimum--
                  (A) a statewide preparedness strategy that 
                has been approved by the Secretary;
                  (B) a description of the purpose for which 
                the State seeks covered grant funds and the 
                reasons why the State needs the covered grant 
                to meet the essential capabilities for 
                preparedness within the State;
                  (C) a description of how, by reference to the 
                State's statewide preparedness strategy, the 
                allocation of grant funding proposed in the 
                application, including, where applicable, the 
                amount not passed through under section 
                733(e)(1), would assist in fulfilling the 
                essential capabilities specified in such 
                strategy;
                  (D) a statement of whether a mutual aid 
                agreement applies to the use of all or any 
                portion of the covered grant funds;
                  (E) a capital budget showing how the State 
                intends to allocate and expend the covered 
                grant funds; and
                  (F) a statement of how the State intends to 
                meet the matching requirement, if any, that 
                applies under section 733(e)(2).
          (3) 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 statewide preparedness strategy.
          (4) Equipment standards.--If a State proposes to 
        upgrade or purchase, with assistance provided under a 
        covered grant, new equipment or systems that do not 
        meet or exceed any applicable national voluntary 
        consensus standard established by the Secretary under 
        section 713(a), the State shall include in the 
        application an explanation of why such equipment or 
        systems will serve the needs of the State better than 
        equipment or systems that meet or exceed such 
        standards.
  (d) Deadline for Award.--The Secretary shall make final 
determinations concerning the amount to be awarded to each 
State in covered grants for a fiscal year and award the grants 
as soon as practicable, but not later than June 30 of the 
fiscal year.
  (e) Allocation.--
          (1) Minimum amounts.--Of the total amount made 
        available for covered grants for a fiscal year, the 
        Secretary shall award--
                  (A) to each State (other than a State 
                referred to in subparagraph (B)) not less than 
                0.55 percent; and
                  (B) to each of the United States Virgin 
                Islands, Guam, American Samoa, and the 
                Commonwealth of the Northern Mariana Islands 
                not less than 0.18 percent.
          (2) Allocation of remaining amounts.--In allocating 
        amounts that remain available for covered grants for a 
        fiscal year after setting aside amounts required under 
        paragraph (1), the Secretary shall prioritize 
        applications based on the degree to which a grant to a 
        State will--
                  (A) lessen the risk, threat, vulnerability, 
                and consequences of a major disaster or 
                emergency, including those caused by terrorist 
                attacks, to persons and critical 
                infrastructure; and
                  (B) enhance or achieve the essential 
                capabilities of first responders in the State 
                in accordance with the guidance developed under 
                section 712.
          (3) Basis of allocations.--
                  (A) Publication.--The Secretary shall publish 
                annually the basis on which funds are awarded 
                under paragraph (2).
                  (B) Limitation on statutory construction.--
                Nothing in this paragraph shall be construed as 
                requiring the Secretary to disclose any 
                classified information or other sensitive 
                information.

SEC. 733. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

  (a) In General.--A covered grant may be used for--
          (1) purchasing commercially available equipment that 
        complies with, where applicable, national voluntary 
        consensus standards, and that facilitates 
        interoperability, coordination, and integration between 
        emergency communications systems, including--
                  (A) mobile vehicles that contain equipment 
                such as commercial telephone trunk lines, VHF 
                and UHF radios, patch panels, and crosspatches, 
                among other technologies and equipment; and
                  (B) communications system overlay software 
                and hardware that allow multiple disparate 
                communications networks to act as one network;
          (2) purchasing or upgrading equipment, including 
        computer software, to enhance preparedness and 
        response;
          (3) conducting exercises to strengthen preparedness 
        and response;
          (4) training, including training for prevention or 
        detection of, preparedness for, or response to attacks 
        involving weapons of mass destruction, including 
        training in the use of equipment and computer software;
          (5) developing or updating response plans;
          (6) establishing or enhancing mechanisms for sharing 
        terrorism threat information;
          (7) developing 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 preparedness and response purposes;
          (8) paying the 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;
          (9) paying the costs of equipment (including 
        software) required to receive, transmit, handle, and 
        store classified information;
          (10) constructing or enhancing facilities to serve as 
        emergency operations centers;
          (11) developing educational curricula for first 
        responders to ensure that they are prepared for all 
        hazards;
          (12) implementing 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;
          (13) paying of administrative expenses directly 
        related to administration of the grant, but not to 
        exceed 3 percent of the amount of the grant; and
          (14) other appropriate activities as determined by 
        the Secretary.
  (b) Prohibited Uses.--Funds provided under covered grant may 
not be used--
          (1) to supplant State, tribal, or local funds;
          (2) to construct buildings or other physical 
        facilities, except as provided in subsection (a)(10);
          (3) to acquire land; or
          (4) for any State, tribal, 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 
under covered grant be made available for responding to 
emergencies in surrounding States, reservations and tribal 
lands 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 Grant Funds.--Upon request of a 
State, the Secretary may authorize the State to transfer all or 
part of funds provided under a 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 furtherance of the statewide preparedness strategy.
  (e) State Responsibilities.--
          (1) Pass-through.--The Secretary shall require a 
        State to obligate or otherwise make available to tribal 
        and local governments, first responders, and other 
        local groups, to the extent required under the 
        statewide preparedness strategy specified in the 
        application for the grant, not less than 80 percent of 
        the grant funds or 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, as 
        soon as practicable but not later than 60 days after 
        the date of receipt of the grant funds by the State. A 
        State shall provide funds, or resources purchased with 
        funds, made available under section 732 directly to an 
        Indian tribe.
          (2) Certifications regarding distribution of grant 
        funds to local governments.--Any State that receives a 
        covered grant shall certify to the Secretary that the 
        State has made available for expenditure by tribal and 
        local governments, first responders, and other local 
        groups the required amount of grant funds pursuant to 
        paragraph (1).
          (3) Report on preparedness spending.--Each State 
        shall submit a report to the Secretary not later than 
        60 days after the end of each fiscal year. Each report 
        shall 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 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 State's 
                statewide preparedness strategy 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 State's 
                statewide preparedness strategy remain unmet.
          (4) Inclusion of restricted annexes.--A State may 
        submit to the Secretary an annex to the report under 
        paragraph (3) that is subject to appropriate handling 
        restrictions, if the State believes that discussion in 
        the report of unmet needs would reveal sensitive but 
        unclassified information.
          (5) Provision of reports.--The Secretary shall ensure 
        that each report under paragraph (3) is provided to the 
        Under Secretary for Emergency Preparedness and Response 
        and the Director of the Office for Domestic 
        Preparedness.
  (f) Cost Sharing.--
          (1) In general.--The Federal share of the costs of an 
        activity carried out with a covered grant to a State 
        awarded after the 2-year period beginning on the date 
        of the enactment of this section shall not exceed 75 
        percent.
          (2) Interim rule.--
                  (A) In general.--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.
                  (B) Limitation.--This paragraph shall not 
                apply to funds used for construction or 
                enhancement of facilities for emergency 
                operations centers.
          (3) In-kind matching.--Each State 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 any necessary personnel overtime, 
        contractor services, administrative costs, equipment 
        fuel and maintenance, and rental space.

SEC. 734. RESTRICTIONS ON EXISTING PROGRAMS.

  Determinations on the allocation, award, and use of grants 
made under the following programs shall be made in accordance 
with their authorizing statutes and without priority given to 
terrorism preparedness activities:
          (1) 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).
          (2) The Emergency Management Performance Grant 
        program and the Urban Search and Rescue Grants program 
        authorized by title VI of this Act.
          (3) The Earthquake Hazards Reduction Act of 1977 (42 
        U.S.C. 7701 et seq.).

SEC. 735. AUTHORIZATION OF APPROPRIATIONS.

  For making covered grants under this subtitle, there is 
authorized to be appropriated to the Secretary of Homeland 
Security $3,400,000,000 for fiscal year 2006, and such sums as 
may be necessary for each of fiscal years 2007 through 2009.

              Subtitle C--Reporting and Other Requirements

SEC. 751. REQUIRED COORDINATION.

  The Secretary shall ensure that there is effective and 
ongoing coordination of Federal preparedness and response 
efforts for major disasters and emergencies, including those 
caused by terrorist attacks, among the divisions of the 
Department, including the Emergency Preparedness and Response 
Directorate and the Office of State and Local Government 
Preparedness and Coordination.

SEC. 752. ANNUAL REPORTS TO CONGRESS.

  (a) In General.--Not later than September 30, 2005, and 
annually thereafter, the Secretary shall transmit to Congress 
an annual report on the Nation's level of preparedness, 
including State capabilities, the readiness of Federal civil 
response assets, and the utilization of mutual-aid agreements.
  (b) Contents.--Each report shall include--
          (1) an assessment of how the Federal first responder 
        preparedness assistance programs support the national 
        preparedness goal;
          (2) an estimate of the amount of Federal, State, 
        tribal, and local expenditures required to attain the 
        essential capabilities established under section 
        712(a);
          (3) a detailed description of the amount of Federal 
        funds provided as covered grants that were directed to 
        each State in the preceding fiscal year;
          (4) information on the use of such grant funds by 
        grantees; and
          (5) a description on a nationwide and State-by-State 
        basis--
                  (A) the extent to which essential 
                capabilities identified in applicable statewide 
                preparedness strategy were created or enhanced 
                as the result of the expenditure of covered 
                grant funds during the preceding fiscal year; 
                and
                  (B) the extent to which essential 
                capabilities identified in applicable statewide 
                preparedness strategy remain unmet.
          (6) Use of quantifiable performance measurement.--
        Each report shall be based on quantifiable performance 
        measurements.

                    TITLE [VII] VIII--MISCELLANEOUS

             AUTHORITY TO PRESCRIBE RULES AND ACCEPT GIFTS

  Sec. [701] 801. (a) * * *

           *       *       *       *       *       *       *


                          TECHNICAL AMENDMENTS

  Sec. [702] 802. (a) * * *

           *       *       *       *       *       *       *


                         REPEAL OF EXISTING LAW

  Sec. [703] 803. The Disaster Relief Act of 1970, as amended 
(84 Stat. 1744), is hereby repealed, except sections 231, 233, 
234, 235, 236, 237, 301, 302, 303, and 304. Notwithstanding 
such repeal the provisions of the Disaster Relief Act of 1970 
shall continue in effect with respect to any major disaster 
declared prior to the enactment of this Act.

                       PRIOR ALLOCATION OF FUNDS

  Sec. [704] 804. Funds heretofore appropriated and available 
under Public Laws 91-606, as amended, and 92-385 shall continue 
to be available for the purpose of providing assistance under 
those Acts as well as for the purposes of this Act.

SEC. [705] 805. DISASTER GRANT CLOSEOUT PROCEDURES.

  (a) * * *

           *       *       *       *       *       *       *

                              ----------                              


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.

           *       *       *       *       *       *       *


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, fire, emergency response, 
        emergency medical (including hospital emergency 
        facilities), and related personnel, 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 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.

           *       *       *       *       *       *       *